Power Dimensions in the Board and outside Director Independence: Evidence from large Industrial UK Firms
AbstractThis paper examines the independence of outside directors in large UK corporations. It also establishes firms (1750 directors) from 28 sectors. The findings have strong implications for the operationalisation and measurement of board composition and structure in empirical work. The study (by incorporating CEO influence on director’s appointment process) offers wide ranging opportunities for examining if board composition and outside director independence matters. Hypothesis that tests if the CEO influence of the nomination process affect board independence could be examined. Our reliable and valid objective estimates of power in the board will facilitate the consideration of power dynamics (presently largely ignored) in empirical works investigating the performance effect of the board. Finally, our power dimension factors discovered serves as useful solution to the problem of multicollinearity in regression methods employing several governance mechanisms as explanatory variables.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University of Nottingham, School of Management & Finance in its series SMF Discussion Paper Series with number 9805.
Date of creation:
Date of revision:
Contact details of provider:
Postal: The School of Management & Finance. University of Nottingham. University Park, Nottingham NG7 2RD United Kingdom
Phone: +44-115-846 66 02
Fax: +44-115-846 66 67
Web page: http://www.nottingham.ac.uk/business/
More information through EDIRC
board composition; outside; director; independence; power dimension;
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (WoPEc Project).
If references are entirely missing, you can add them using this form.