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The involvement of board of directors and institutional investors in investing in transition economies: An agency theory approach

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  • Tihanyi, Laszlo
  • Ellstrand, Alan E.

Abstract

We investigate the influence of the composition of the board of directors and stock ownership patterns on the decision to enter markets in Central and Eastern Europe. Our findings suggest that board composition alone does not influence the entry decision while firms with less concentrated stock ownership were more likely to enter these developing markets. We also found that while better performing firms were attracted to opportunities in Central and Eastern Europe, firms with poor prior performance and outside dominated boards were also more likely to enter these markets.

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  • Tihanyi, Laszlo & Ellstrand, Alan E., 1998. "The involvement of board of directors and institutional investors in investing in transition economies: An agency theory approach," Journal of International Management, Elsevier, vol. 4(4), pages 337-351, December.
    • Handle: RePEc:eee:intman:v:4:y:1998:i:4:p:337-351
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