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| Author: | Fischer, P.E. (et al.) |
| Title: | Investor perceptions of board performance: Evidence from uncontested director elections |
| Journal: | Journal of Accounting & Economics
2009 : DEC, VOL. 48:2-3, p. 172-189 |
| Index terms: | performance measurement corporate governance democracy directors elections |
| Language: | eng |
| Abstract: | This study presents that uncontested director elections provide informative polls of investor perceptions regarding board performance. It is found that higher vote approval is associated with lower stock price reactions to subsequent announcements of management turnovers and vice versa. Additionally, firms with low vote approval are more likely to experience CEO turnover, greater board turnover, lower CEO compensation, fewer and better-received acquisitions, and more and better-received divestitures in the future. The findings remain the same after controlling for other variables reflecting or determining investor perceptions, which suggests that elections incrementally inform besides informing summary statistics. |
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