CEO networks and the labor market for directors
Directors at firms with well-connected CEOs are more likely to obtain directorships at firms that are connected to the CEOs. Recommended directors do not become beholden to the CEO. Reciprocity is an important determinant of recommendations because CEOs are more likely to recommend their directors i...
| Main Authors: | , , |
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| Other Authors: | |
| Format: | Journal Article |
| Language: | English |
| Published: |
2023
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| Subjects: | |
| Online Access: | https://hdl.handle.net/10356/165635 |
| _version_ | 1811679848064614400 |
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| author | Kim, Hyemin Fahlenbrach, Rüdiger Low, Angie |
| author2 | Nanyang Business School |
| author_facet | Nanyang Business School Kim, Hyemin Fahlenbrach, Rüdiger Low, Angie |
| author_sort | Kim, Hyemin |
| collection | NTU |
| description | Directors at firms with well-connected CEOs are more likely to obtain directorships at firms that are connected to the CEOs. Recommended directors do not become beholden to the CEO. Reciprocity is an important determinant of recommendations because CEOs are more likely to recommend their directors if they received help from their network filling vacant board positions. CEOs also benefit strategically from the additional appointments of their directors. Analyses of appointment announcement returns and director election results show that shareholders are not concerned by such recommendations. The results highlight the importance of CEOs as intermediaries in the director labor market. |
| first_indexed | 2024-10-01T03:15:40Z |
| format | Journal Article |
| id | ntu-10356/165635 |
| institution | Nanyang Technological University |
| language | English |
| last_indexed | 2024-10-01T03:15:40Z |
| publishDate | 2023 |
| record_format | dspace |
| spelling | ntu-10356/1656352023-05-19T07:31:17Z CEO networks and the labor market for directors Kim, Hyemin Fahlenbrach, Rüdiger Low, Angie Nanyang Business School Business::Finance Network Connections Director Labor Market Directors at firms with well-connected CEOs are more likely to obtain directorships at firms that are connected to the CEOs. Recommended directors do not become beholden to the CEO. Reciprocity is an important determinant of recommendations because CEOs are more likely to recommend their directors if they received help from their network filling vacant board positions. CEOs also benefit strategically from the additional appointments of their directors. Analyses of appointment announcement returns and director election results show that shareholders are not concerned by such recommendations. The results highlight the importance of CEOs as intermediaries in the director labor market. Published version Fahlenbrach gratefully acknowledges financial support from the Swiss Finance Institute. 2023-04-05T02:40:30Z 2023-04-05T02:40:30Z 2023 Journal Article Kim, H., Fahlenbrach, R. & Low, A. (2023). CEO networks and the labor market for directors. Journal of Empirical Finance, 70, 1-21. https://dx.doi.org/10.1016/j.jempfin.2022.11.001 0927-5398 https://hdl.handle.net/10356/165635 10.1016/j.jempfin.2022.11.001 2-s2.0-85144039799 70 1 21 en Journal of Empirical Finance © 2022 The Authors. Published by Elsevier B.V. This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/). application/pdf |
| spellingShingle | Business::Finance Network Connections Director Labor Market Kim, Hyemin Fahlenbrach, Rüdiger Low, Angie CEO networks and the labor market for directors |
| title | CEO networks and the labor market for directors |
| title_full | CEO networks and the labor market for directors |
| title_fullStr | CEO networks and the labor market for directors |
| title_full_unstemmed | CEO networks and the labor market for directors |
| title_short | CEO networks and the labor market for directors |
| title_sort | ceo networks and the labor market for directors |
| topic | Business::Finance Network Connections Director Labor Market |
| url | https://hdl.handle.net/10356/165635 |
| work_keys_str_mv | AT kimhyemin ceonetworksandthelabormarketfordirectors AT fahlenbrachrudiger ceonetworksandthelabormarketfordirectors AT lowangie ceonetworksandthelabormarketfordirectors |