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Muravyev, Alexander
Talavera, Oleksandr
Weir, Charlie
Year of Publication: 
Series/Report no.: 
IZA Discussion Paper 7962
This paper studies the effect on company performance of appointing non-executive directors that are also executive directors in other firms. The analysis is based on a new panel dataset of UK companies over 2002-2008. Our findings suggest a positive relationship between the presence of these non-executive directors and the accounting performance of the appointing companies. The effect is stronger if these directors are executive directors in firms that are performing well. We also find a positive effect when these non-executive directors are members of the audit committee. Overall, our results are broadly consistent with the view that non-executive directors that are executives in other firms contribute to both the monitoring and advisory functions of corporate boards.
executive directors
non-executive directors
company performance
Document Type: 
Working Paper

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