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Does prestigious board membership matter? Evidence from New Zealand

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  • Mosammet Asma Jahan
  • Martien Lubberink
  • Karen Van Peursem

Abstract

This study investigates whether ‘prestigious’ multiple board membership is positively associated with firm performance. We employ Resource Dependency theory to explain why performance outcomes may be improved by the presence of ‘prestigious’ multiple directorships. Our analysis relies on extensive hand‐collected data on New Zealand company directorships. The results support the contention that ‘prestigious’ multiple directorships are related to better accounting and market performance. Conclusions reflect upon how Resource Dependency theory informs this phenomenon and how ‘prestigious’ board members may be a valuable resource for firms. We also reveal how these findings expose a new avenue for board governance research.

Suggested Citation

  • Mosammet Asma Jahan & Martien Lubberink & Karen Van Peursem, 2021. "Does prestigious board membership matter? Evidence from New Zealand," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 61(1), pages 977-1015, March.
    • Handle: RePEc:bla:acctfi:v:61:y:2021:i:1:p:977-1015
    DOI: 10.1111/acfi.12601
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