The value of director reputation : evidence from outside director appointments

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Gogolin, Fabian and Cummins, Mark and Dowling, Michael (2018) The value of director reputation : evidence from outside director appointments. Finance Research Letters, 27. pp. 266-272. ISSN 1544-6123 (https://doi.org/10.1016/j.frl.2018.03.012)

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Abstract

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.

ORCID iDs

Gogolin, Fabian, Cummins, Mark ORCID logoORCID: https://orcid.org/0000-0002-3539-8843 and Dowling, Michael;
CORE (COnnecting REpositories)