Peer-Reviewed Journal Details
Mandatory Fields
Gogolin F.;Cummins M.;Dowling M.
2018
January
Finance Research Letters
The value of director reputation: Evidence from outside director appointments
Published
0 ()
Optional Fields
Announcement returns Director appointment Director reputation
27
266
272
© 2018 Elsevier Inc. This study examines the role of director reputation using a sample of outside director appointments. Relative to existing literature, we focus on outside director appointments involving CEO award winners. Exploiting the award-induced change in a director's reputation, we are able to show that investors react more positively to the appointment of outside directors they perceive as more reputable. We find that this 'reputation premium’ is approximately 2%, and robust across a range of subtests that control for a wide range of possibly confounding influences.
1544-6123
10.1016/j.frl.2018.03.012
Grant Details