Scandinavian Working Papers in Economics
Working Paper Series,
Research Institute of Industrial Economics
No 567: The Impact of Foreign Board Membership on Firm Value
Lars Oxelheim () and Trond Randøy ()
Additional contact information
Lars Oxelheim: The Research Institute of Industrial Economics, Postal: P.O. Box 55665, SE-102 15 Stockholm, Sweden
Trond Randøy: Agder University College, Postal: School of Business and Economics, Serviceboks 422, Bygg H, N-4604 Kristiansand, Norway
Abstract: 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.
Keywords: Foreign Board Membership; Corporate Governance; Board Monitoring; Cross-Listing
37 pages, December 10, 2001
Full text files
WP567.pdf
Questions (including download problems) about the papers in this series should be directed to Elisabeth Gustafsson ()
Report other problems with accessing this service to Sune Karlsson ().
This page generated on 2024-02-05 17:12:18.