The link between performance and changes in the size and stability of a firm's officers and directors

Heaney, R, Naughton, T, Fry, T, Davidson, S, McKenzie, M and Truong, T 2007, 'The link between performance and changes in the size and stability of a firm's officers and directors', Journal of Multinational Financial Management, vol. 17, pp. 16-29.


Document type: Journal Article
Collection: Journal Articles

Title The link between performance and changes in the size and stability of a firm's officers and directors
Author(s) Heaney, R
Naughton, T
Fry, T
Davidson, S
McKenzie, M
Truong, T
Year 2007
Journal name Journal of Multinational Financial Management
Volume number 17
Start page 16
End page 29
Total pages 13
Publisher Elsevier
Abstract If corporate governance works effectively, size and stability of the firm's officer/director group will be sensitive to firm performance. This should be most evident during periods of unusual firm performance and so we focus on a sample of 9817 firms drawn from 52 countries with 2001 performance measures and officer/director effects in the following 12-month period. Cross-sectional analysis indicates a positive relationship between prior period performance and changes in size and stability of the officer/director group. While the change in size relationship appears to be explained by the USA firms in the sample, the stability relationship is more broadly based. We also find that these results are sensitive to legal system with a firm's officer/director group showing greater sensitivity to past performance in common law countries.
Subject Financial Economics
DOI - identifier 10.1016/j.mulfin.2006.03.001
Copyright notice Copyright © 2006 Elsevier B.V. All rights reserved.
ISSN 1042-444X
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