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Friends in the Boardroom: Attendance, voting, and turnover

Author

Listed:
  • Kim, Jaehoon
  • Lee, Hwa Ryung

Abstract

We analyze a unique data set on board activities of individual outside directors contingent on social ties to the CEO. We find that outside directors’ dissents are rare and this is even more so from those with social connections with the CEO. Dissenting outside directors, especially those without connections to the CEO face a significantly higher chance of being replaced. Besides, outside directors with social ties to the CEO tend to participate in board decision less often than independent ones.

Suggested Citation

  • Kim, Jaehoon & Lee, Hwa Ryung, 2018. "Friends in the Boardroom: Attendance, voting, and turnover," Economics Letters, Elsevier, vol. 169(C), pages 11-14.
    • Handle: RePEc:eee:ecolet:v:169:y:2018:i:c:p:11-14
    DOI: 10.1016/j.econlet.2018.04.032
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    Citations

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    Cited by:

    1. Ann L. Owen & Judit Temesvary & Andrew Wei, 2021. "Gender and Professional Networks on Bank Boards," Finance and Economics Discussion Series 2021-021r1, Board of Governors of the Federal Reserve System (U.S.), revised 23 Aug 2021.
    2. Jackowicz, Krzysztof & Kozłowski, Łukasz, 2019. "Social ties between SME managers and bank employees: Financial consequences vs. SME managers' perceptions," Emerging Markets Review, Elsevier, vol. 40(C), pages 1-1.
    3. Philip L. Hersch & Jodi E. Pelkowski, 2020. "Being present: Determinants of trustee attendance at public university board meetings," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(7), pages 1251-1261, October.

    More about this item

    Keywords

    Board independence; Outside director; Social ties; Attendance; Voting; Turnover;
    All these keywords.

    JEL classification:

    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • K22 - Law and Economics - - Regulation and Business Law - - - Business and Securities Law
    • M59 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Other

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