lead Independent Directors: Good governance or window dressing?

IF 1.1 Q3 BUSINESS, FINANCE Journal of Accounting Literature Pub Date : 2019-12-01 DOI:10.1016/j.acclit.2019.06.001

Phillip T. Lamoreaux , Lubomir P. Litov , Landon M. Mauler

引用次数: 0

Abstract

We document the emergence of the Lead Independent Director (LID) board role in a sample of U.S. firms from 1999–2015. We find that firms that adopt an LID board role are larger and have more independent boards, higher institutional investor holdings, and an NYSE listing. Firms with greater anticipated benefits from monitoring also adopt an LID role, e.g., firms with dual CEO-Chairman, with more takeover defense mechanisms, and with higher cash holdings. Using an event study methodology, we find that investors respond positively to the adoption of an LID board role. Lastly, using instrumental variables to address endogeneity in the LID board role, we find that firms with an LID are more likely to terminate poorly performing CEOs. Taken as a whole, these results suggest that the LID board role enhances firm value and improves the quality of corporate governance.

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领导独立董事:良好治理还是粉饰门面?

我们以1999-2015年的美国公司为样本，记录了首席独立董事(LID)董事会角色的出现。我们发现，采用LID董事会角色的公司规模更大，拥有更多的独立董事会，更高的机构投资者持股，并在纽约证券交易所上市。从监督中获得更大预期利益的公司也采用LID角色，例如，具有双重首席执行官和董事长的公司，具有更多的收购防御机制，并且拥有更高的现金持有量。使用事件研究方法，我们发现投资者对采用LID董事会角色的反应积极。最后，使用工具变量来解决LID董事会角色的内生性问题，我们发现拥有LID的公司更有可能解雇表现不佳的首席执行官。从整体上看，这些结果表明，董事会角色提升了公司价值，提高了公司治理质量。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Journal of Accounting Literature BUSINESS, FINANCE-

CiteScore

6.50

自引率

0.00%

发文量

期刊介绍： The objective of the Journal is to publish papers that make a fundamental and substantial contribution to the understanding of accounting phenomena. To this end, the Journal intends to publish papers that (1) synthesize an area of research in a concise and rigorous manner to assist academics and others to gain knowledge and appreciation of diverse research areas or (2) present high quality, multi-method, original research on a broad range of topics relevant to accounting, auditing and taxation. Topical coverage is broad and inclusive covering virtually all aspects of accounting. Consistent with the historical mission of the Journal, it is expected that the lead article of each issue will be a synthesis article on an important research topic. Other manuscripts to be included in a given issue will be a mix of synthesis and original research papers. In addition to traditional research topics and methods, we actively solicit manuscripts of the including, but not limited to, the following: • meta-analyses • field studies • critiques of papers published in other journals • emerging developments in accounting theory • commentaries on current issues • innovative experimental research with strong grounding in cognitive, social or anthropological sciences • creative archival analyses using non-standard methodologies or data sources with strong grounding in various social sciences • book reviews • "idea" papers that don''t fit into other established categories.