The impact of foreign board membership on firm value
(2003) In Journal of Banking & Finance 27(12). p.2369-2392- Abstract
- This study examines the effect of foreign (Anglo-American) board membership on corporate performance measured in terms of firm value (Tobin's Q). Using a sample of firms with headquarters in Norway or Sweden the study indicates a significantly higher value for firms that have outsider Anglo-American board member(s), after a variety of firm-specific and corporate governance related factors have been controlled for. We argue that this superior performance reflects the fact that these companies have successfully broken away from a partly segmented domestic capital market by "importing" an Anglo-American corporate governance system. Such an "import" signals a willingness on the part of the firm to expose itself to improved corporate governance... (More)
- This study examines the effect of foreign (Anglo-American) board membership on corporate performance measured in terms of firm value (Tobin's Q). Using a sample of firms with headquarters in Norway or Sweden the study indicates a significantly higher value for firms that have outsider Anglo-American board member(s), after a variety of firm-specific and corporate governance related factors have been controlled for. We argue that this superior performance reflects the fact that these companies have successfully broken away from a partly segmented domestic capital market by "importing" an Anglo-American corporate governance system. Such an "import" signals a willingness on the part of the firm to expose itself to improved corporate governance and enhances its reputation in the financial market. (Less)
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/record/899791
- author
- Oxelheim, Lars LU and Randoy, T
- organization
- publishing date
- 2003
- type
- Contribution to journal
- publication status
- published
- subject
- keywords
- foreign board membership, cross-listing, board monitoring, corporate governance
- in
- Journal of Banking & Finance
- volume
- 27
- issue
- 12
- pages
- 2369 - 2392
- publisher
- Elsevier
- external identifiers
-
- wos:000186487400007
- scopus:0142118652
- ISSN
- 1872-6372
- DOI
- 10.1016/S0378-4266(02)00395-3
- language
- English
- LU publication?
- yes
- id
- 3c87b897-ea9e-42eb-a462-0301f7c4eff9 (old id 899791)
- date added to LUP
- 2016-04-01 12:25:19
- date last changed
- 2022-04-21 07:05:12
@article{3c87b897-ea9e-42eb-a462-0301f7c4eff9,
abstract = {{This study examines the effect of foreign (Anglo-American) board membership on corporate performance measured in terms of firm value (Tobin's Q). Using a sample of firms with headquarters in Norway or Sweden the study indicates a significantly higher value for firms that have outsider Anglo-American board member(s), after a variety of firm-specific and corporate governance related factors have been controlled for. We argue that this superior performance reflects the fact that these companies have successfully broken away from a partly segmented domestic capital market by "importing" an Anglo-American corporate governance system. Such an "import" signals a willingness on the part of the firm to expose itself to improved corporate governance and enhances its reputation in the financial market.}},
author = {{Oxelheim, Lars and Randoy, T}},
issn = {{1872-6372}},
keywords = {{foreign board membership; cross-listing; board monitoring; corporate governance}},
language = {{eng}},
number = {{12}},
pages = {{2369--2392}},
publisher = {{Elsevier}},
series = {{Journal of Banking & Finance}},
title = {{The impact of foreign board membership on firm value}},
url = {{http://dx.doi.org/10.1016/S0378-4266(02)00395-3}},
doi = {{10.1016/S0378-4266(02)00395-3}},
volume = {{27}},
year = {{2003}},
}