Arbeitspapier

The Impact of Foreign Board Membership on Firm Value

This study examines the effect of foreign (Anglo-American) board membership on corporate performance measured in terms of firm value (Tobin’s Q). On a basis 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.

Language
Englisch

Bibliographic citation
Series: IUI Working Paper ; No. 567

Classification
Wirtschaft
Financial Aspects of Economic Integration
Corporate Finance and Governance: General
Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
Subject
Foreign Board Membership
Corporate Governance
Board Monitoring
Cross-Listing
Corporate Governance
Vorstand
Ausländer
Tobins Q
Schätzung
Schweden
Norwegen
Unternehmenswert

Event
Geistige Schöpfung
(who)
Oxelheim, Lars
Randøy, Trond
Event
Veröffentlichung
(who)
The Research Institute of Industrial Economics (IUI)
(where)
Stockholm
(when)
2001

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Oxelheim, Lars
  • Randøy, Trond
  • The Research Institute of Industrial Economics (IUI)

Time of origin

  • 2001

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