{"title":"Are Prestigious Directors Mere Attractive Ornaments on the Corporate Christmas Tree?","authors":"Harsh Khedar, Vineet Agarwal, Sunil Poshakwale","doi":"10.1111/1467-8551.12863","DOIUrl":null,"url":null,"abstract":"Using the United Kingdom's unique institutional setting of Queen's [now King's] honours, we examine the influence of director prestige on both short‐term and long‐term firm performance. We find that the market reacts positively to the appointments of Prestigious Award‐Winning Directors (PAWDs). Firms appointing PAWDs also show significantly improved long‐term performance, and this performance change is higher when firms appoint PAWDs according to their needs. The evidence suggests that PAWDs make important contributions to the firm by providing effective monitoring, facilitating preferential access to resources and offering legitimacy. We conclude that director prestige not only signals higher human and social capital but also incentivizes effective monitoring of managerial decisions.","PeriodicalId":48342,"journal":{"name":"British Journal of Management","volume":"33 1","pages":""},"PeriodicalIF":4.5000,"publicationDate":"2024-08-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"British Journal of Management","FirstCategoryId":"91","ListUrlMain":"https://doi.org/10.1111/1467-8551.12863","RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"BUSINESS","Score":null,"Total":0}
引用次数: 0
Abstract
Using the United Kingdom's unique institutional setting of Queen's [now King's] honours, we examine the influence of director prestige on both short‐term and long‐term firm performance. We find that the market reacts positively to the appointments of Prestigious Award‐Winning Directors (PAWDs). Firms appointing PAWDs also show significantly improved long‐term performance, and this performance change is higher when firms appoint PAWDs according to their needs. The evidence suggests that PAWDs make important contributions to the firm by providing effective monitoring, facilitating preferential access to resources and offering legitimacy. We conclude that director prestige not only signals higher human and social capital but also incentivizes effective monitoring of managerial decisions.
期刊介绍：
The British Journal of Management provides a valuable outlet for research and scholarship on management-orientated themes and topics. It publishes articles of a multi-disciplinary and interdisciplinary nature as well as empirical research from within traditional disciplines and managerial functions. With contributions from around the globe, the journal includes articles across the full range of business and management disciplines. A subscription to British Journal of Management includes International Journal of Management Reviews, also published on behalf of the British Academy of Management.
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