Evidence on the Value of Director Monitoring: A Natural Experiment
| Abstract | I examine the determinants and implications of the level of director monitoring. I use the distance between directors' domiciles and firm headquarters as a proxy for the level of monitoring and the introduction of a new airline route between director domicile and firm HQ as an exogenous shock to the level of monitoring. I find a strong relation between distance and both board meeting attendance and director membership on strategic versus monitoring committees. Increased monitoring, as measured by a reduction in effective distance, by way of addition of a direct flight, is associated with a 3% reduction in firm value. A reduction in effective distance is also associated with less risk-taking, lower stock return volatility, lower accounti... (more) |
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| Created Date | 2014 |
| Contributor | Bennett, Benjamin Frank (Author) / Coles, Jeffrey (Advisor) / Hertzel, Michael (Committee member) / Babenka, Ilona (Committee member) / Custodio, Claudia (Committee member) / Arizona State University (Publisher) |
| Subject | Finance / Board Structure / Corporate Governance / Director Duties |
| Type | Doctoral Dissertation |
| Extent | 53 pages |
| Language | English |
| Copyright |
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| Reuse Permissions | All Rights Reserved |
| Note | Ph.D. Business Administration 2014 |
| Collaborating Institutions | Graduate College / ASU Library |
| Additional Formats | MODS / OAI Dublin Core / RIS |
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