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Too Busy To Serve? An Examination of the Influence of Overboarded Directors

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  • Ira C. Harris
  • Katsuhiko Shimizu

Abstract

ABSTRACT Overboarded directors (i.e., those serving on too many boards) have come under recent attack. The accusation is that such directors are ‘stretched’ by several directorships and therefore cannot fulfil their governance responsibility. This study investigates the impact of overboarded directors upon key strategic decisions such as corporate acquisitions. Based on our examination of acquisition outcomes, we found that such directors are important sources of knowledge and enhance acquisition performance. Moreover, they represent an important complement to inside and non‐overboarded outside directors.

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  • Ira C. Harris & Katsuhiko Shimizu, 2004. "Too Busy To Serve? An Examination of the Influence of Overboarded Directors," Journal of Management Studies, Wiley Blackwell, vol. 41(5), pages 775-798, July.
  • Handle: RePEc:bla:jomstd:v:41:y:2004:i:5:p:775-798
    DOI: 10.1111/j.1467-6486.2004.00453.x
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