Shoot for the stars? Predicting the recruitment of prestigious directors at newly public firms

Abhijith G. Acharya, Timothy G. Pollock

Research output: Contribution to journalArticlepeer-review

42 Scopus citations

Abstract

This study explores how CEOs' and outside directors' desires for the benefits of signaling and "homophily" intertwine with their concerns over maintaining power and preserving local status hierarchies to affect the likelihood a firm recruits prestigious outside directors to its board. Using pooled cross-sectional data on the five years following the initial public offerings (IPOs) of 210 firms that went public between 2001 and 2004, we found that prestigious CEOs and directors viewed the recruitment of prestigious new directors differently and that these perceptions were moderated by factors that increase the salience of risk of potential losses to CEOs and existing board members.

Original languageEnglish (US)
Pages (from-to)1396-1419
Number of pages24
JournalAcademy of Management Journal
Volume56
Issue number5
DOIs
StatePublished - Oct 1 2013

All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Business, Management and Accounting(all)
  • Strategy and Management
  • Management of Technology and Innovation

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