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Sugar and Spice and Everything Nice: What Are Good Directors Made of?

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Listed:
  • Quoc-Anh Do

    (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique)

  • Bang Dang Nguyen

    (CAM - University of Cambridge [UK])

  • Raghavendra- University of Cambridge, Cambridge Judge Business School) Rau

    (Judge Business School - CAM - University of Cambridge [UK])

Abstract

This paper analyzes the career paths followed by non-executive directors in a large sample of 40,585 unique directors associated with 5,246 unique US listed firms between 1999 and 2011. We document four types of characteristics that significantly influence the probability that a director will be successful in obtaining a second concurrent directorship. These include personal characteristics (belonging to large social networks, holding an MBA degree, having experience as a top executive in a large firm), macro economic indicators (obtaining the first directorship in a recession, or after the passing of the Sarbanes-Oxley act of 2002), firm characteristics and firm performance (holding a directorship in large firms, firms with better valuations, or firms with higher return volatility) and firm reputation (announcing accounting restatements or being hit by class-action suits). Our paper documents characteristics of successful non-executive directors and sheds light on the determinants of their career paths.

Suggested Citation

  • Quoc-Anh Do & Bang Dang Nguyen & Raghavendra- University of Cambridge, Cambridge Judge Business School) Rau, 2013. "Sugar and Spice and Everything Nice: What Are Good Directors Made of?," Working Papers hal-03460924, HAL.
    • Handle: RePEc:hal:wpaper:hal-03460924
    Note: View the original document on HAL open archive server: https://sciencespo.hal.science/hal-03460924
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    More about this item

    Keywords

    Board of Directors; Corporate Governance; Career Concerns; Board Composition;
    All these keywords.

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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