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Outside directors, board independence, and shareholder wealth☆

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TLDR
In this article, the authors examine the wealth effects surrounding outside director appointments and find no clear evidence that outside directors of any particular occupation are more or less valuable than others, consistent with the hypothesis that outside board members are chosen in the interest of shareholders.
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This article is published in Journal of Financial Economics.The article was published on 1990-08-01. It has received 2031 citations till now. The article focuses on the topics: Shareholder & Independence.

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The Evolution of Corporate Governance and Firm Performance in Emerging Markets: The Case of Sellier and Bellot

TL;DR: In this paper, the authors investigate the evolution of corporate governance and firm performance in emerging markets, focusing on Czech ammunition manufacturer Sellier and Bellot (S&B) following voucher privatization in 1993.
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Does Better Corporate Governance Encourage Higher Payout? : Risk, Agency Cost, and Dividend Policy

TL;DR: In this paper, the authors investigate whether corporate governance complements or substitutes for pay-out policy as an effective method of reducing agency cost through its interplay with the idiosyncratic risk of the firm.
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The Effect of Director Monitoring on Bid and Ask Spreads

TL;DR: In this paper, the authors examined whether the market assesses a lower level of information asymmetry to firms that are perceived to be monitored more intensely by members of the board of directors.
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Board attributes and foreign shareholdings in Malaysian listed firms

TL;DR: In this paper, the authors examined the association between foreign shareholdings and several characteristics of board of directors in the context of a developing capital market and found a strong positive relationship between multiple directorships and foreign shareholding.
References
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Journal ArticleDOI

Separation of ownership and control

TL;DR: The authors argue that the separation of decision and risk-bearing functions observed in large corporations is common to other organizations such as large professional partnerships, financial mutuals, and nonprofits. But they do not consider the role of decision agents in these organizations.
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Agency Problems and the Theory of the Firm

TL;DR: In this article, the authors explain how the separation of security ownership and control, typical of large corporations, can be an efficient form of economic organization, and set aside the presumption that a corporation has owners in any meaningful sense.
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Using daily stock returns: The case of event studies

TL;DR: In this paper, the authors examine properties of daily stock returns and how the particular characteristics of these data affect event study methodologies and show that recognition of autocorrelation in daily excess returns and changes in their variance conditional on an event can sometimes be advantageous.
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Outside directors and CEO turnover

TL;DR: This article examined the relation between the monitoring of CEOs by inside and outside directors and CEO resignations using stock returns and earnings changes as measures of prior performance, and found that there is a stronger association between prior performance and the probability of a resignation.
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Two Agency-Cost Explanations of Dividends

TL;DR: In this article, the authors consider the problem of aligning managers' interests with those of investors and offer agency-cost explanations of dividends, and conclude that "these two lines of inquiry rarely meet." Yet logically any dividend policy should be designed to minimize the sum of capital, agency and taxation costs.
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