The Impact of Foreign Board Membership on Firm Value

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IUI Working Paper ; No. 567

Classification and Topics

• 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

Contributors, Places and Time

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

Further information

• Handle: http://hdl.handle.net/10419/94928
• Last update: 10.03.2025, 11:42 AM CET