Keep close to home or venture out: The influence of status and connections for outside directorships

Richard H. Lester, Albert A. Cannella, Samuel Certo

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

Research in corporate governance has long considered the interlocking nature of corporate directorships. We model the characteristics of executives who secure outside directorships at other firms as well as characteristics of their home firms and those of the firms they join. We view the securing of outside directorships as a sequential process, one in which the first outside directorship is an influential predictor of both the likelihood of joining another board as well as the characteristics of subsequent boards for those who join them. Moreover, we model the interconnectedness between the executive's home firm and any boards they join. In general, our evidence suggests that aspects of first outside directorships are important in understanding characteristics of subsequent outside directorships. In addition, our evidence suggests that interpersonal networks may not be as influential in the director selection process as previously thought.

Original languageEnglish (US)
Title of host publicationAcademy of Management 2008 Annual Meeting: The Questions We Ask, AOM 2008
StatePublished - 2008
Externally publishedYes
Event68th Annual Meeting of the Academy of Management, AOM 2008 - Anaheim, CA, United States
Duration: Aug 8 2008Aug 13 2008

Other

Other68th Annual Meeting of the Academy of Management, AOM 2008
CountryUnited States
CityAnaheim, CA
Period8/8/088/13/08

Keywords

  • Boards of directors
  • Governance
  • Networks

ASJC Scopus subject areas

  • Management Information Systems
  • Management of Technology and Innovation

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    Lester, R. H., Cannella, A. A., & Certo, S. (2008). Keep close to home or venture out: The influence of status and connections for outside directorships. In Academy of Management 2008 Annual Meeting: The Questions We Ask, AOM 2008