IDEAS home Printed from https://ideas.repec.org/a/taf/apfiec/v24y2014i1p19-29.html
   My bibliography  Save this article

Board response to majority outsider regulation

Author

Listed:
  • Steven Schmeiser

Abstract

I compile a balanced panel of 2174 publicly traded firms and track their board structure from 1999 to 2006. I detail how boards responded to new regulation (introduced in 2002 and enacted in 2003) that required boards of firms traded on the NYSE and NASDAQ exchanges to have a strict majority of outside directors. I examine how noncompliant boards moved into compliance and compare their behaviour to compliant firms. Noncompliant firms increased independence, but did not increase board size during the regulatory adjustment period. In addition to offering a detailed look at the data, I create a stylized model of board composition and size and suggest how the responses of noncompliant firms to the exogenous regulatory shock can be used to estimate the curvature of a board 'production function'.

Suggested Citation

  • Steven Schmeiser, 2014. "Board response to majority outsider regulation," Applied Financial Economics, Taylor & Francis Journals, vol. 24(1), pages 19-29, January.
    • Handle: RePEc:taf:apfiec:v:24:y:2014:i:1:p:19-29
    DOI: 10.1080/09603107.2013.859373
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/09603107.2013.859373
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/09603107.2013.859373?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:apfiec:v:24:y:2014:i:1:p:19-29. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAFE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.