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Directors’ Decision-Making Involvement on Corporate Boards

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  • Seoyoung Kim

Abstract

Using the full set of committee memberships for the directors of Fortune 100 firms (which I collect from annual proxy statements), I introduce a measure to capture the extent of a director’s involvement in discussion and decisions that affect corporate strategy. I document substantial variation in directors’ decision-making involvement both within and across boards, and I provide evidence that this more nuanced yet systematically available measure yields more powerful and better specified tests in examining the link between board composition, accounting performance metrics, and shareholder value. Overall, I argue that incorporating these differences in decision-making power has important implications for studies in corporate governance.

Suggested Citation

  • Seoyoung Kim, 2020. "Directors’ Decision-Making Involvement on Corporate Boards," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 12(7), pages 1-72, July.
    • Handle: RePEc:ibn:ijefaa:v:12:y:2020:i:7:p:72
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    References listed on IDEAS

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    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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