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

Author

Listed:
  • Quoc-Anh Do

    (Département d'économie)

  • Bang Dang Nguyen

    (University of Cambridge)

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

    (Cambridge Judge Business School)

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?," Sciences Po publications info:hdl:2441/69eil0vrec8, Sciences Po.
  • Handle: RePEc:spo:wpmain:info:hdl:2441/69eil0vrec871ooabetqvq0okj
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Board of Directors; Corporate Governance; Career Concerns; Board Composition;

    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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