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The Role of Outside Directors in Bank Aquisitions

Author

Listed:
  • Vijaya Subrahmanyam
  • Nanda Rangan
  • Stuart Rosenstein

Abstract

Banking law appears to limit the available pool of qualified directors. This study finds - in contrast to nonfinancial firms - a negative relation between abnormal returns and the proportion of independent outside directors on the board of directors of bidding banks.

Suggested Citation

  • Vijaya Subrahmanyam & Nanda Rangan & Stuart Rosenstein, 1997. "The Role of Outside Directors in Bank Aquisitions," Financial Management, Financial Management Association, vol. 26(3), Fall.
    • Handle: RePEc:fma:fmanag:subrahmanyam97
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