Management Seminars: Nikolas Feistkorn (University of Leeds)

7 May 2019, 12.00 PM - 7 May 2019, 1.30 PM

Nikolas Feistkorn (University of Leeds)

1.01 Howard House

Title: Are Quad-Qualified Directors Effective Board Monitors? An Analysis of CEO Turnover 

Abstract:

The extant board governance literature has mostly examined the relationship between directors' characteristics and their monitoring performance in isolation. Hambrick, Misangyi and Park's (2015, AMR) quad-model combines the four board attributes of independence, expertise, bandwidth and motivation into one model and prompts researchers to test its relevance. Accordingly, we investigate its validity in the context of CEO turnover decisions. To define whether individual directors are quad-qualified, we create composite measures of each attribute based on director-level employment, stock ownership & social network data and construct an encompassing quad-qualification score. We find that a greater presence of quad-qualified directors leads to a greater CEO turnover sensitivity to stock performance. Further, we show that the sensitivity particularly increases for boards with three or more quad-qualified members.

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