Working Paper No. 567

The Impact of Foreign Board Membership on Firm Value

Publicerad: December 10, 2001 Antal sidor: 37Nyckelord: Foreign Board Membership; Corporate Governance; Board Monitoring; Cross-ListingJEL-koder: F36; G30; G32

The Impact of Foreign Board Membership on Firm Value Lars Oxelheim and Trond Randøy


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.

 

Lars Oxelheim

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Shon Ferguson, IFN, och Rikard Forslid, Stockholms universitet, har forskar om flygets betydelse för näringslivet.

Forskarna visar att inrikes direktlinjer till Stockholm är viktiga för tillverkningsindustrin i kommunerna utanför de tre storstadsregionerna och att internationella direktlinjer är särskilt betydelsefulla för tjänstesektorn.

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