Using Geographic Density of Firms to Identify the Effect of Board Size on Firm Value and Corporate Policies

Pandej Chintrakarn, Shenghui Tong, Pornsit Jiraporn, Young Sang Kim

Research output: Contribution to journalArticlepeer-review

Abstract

Prior research shows that firms tend to recruit directors from the geographically proximate area. Due to a limited supply of qualified individuals in a given area, firms located in close proximity have to share a limited pool of talented individuals. As a result, the more firms there are in the same area, the fewer directors each firm in the area is able to obtain on average. We exploit the variation in the numbers of firms across zip codes and estimate the effects of board size on various corporate outcomes: accounting profitability, leverage, dividend payouts, and merger and acquisitions.

Original languageEnglish (US)
Pages (from-to)36-66
Number of pages31
JournalAsia-Pacific Journal of Financial Studies
Volume49
Issue number1
DOIs
StatePublished - Feb 1 2020

All Science Journal Classification (ASJC) codes

  • Finance

Fingerprint Dive into the research topics of 'Using Geographic Density of Firms to Identify the Effect of Board Size on Firm Value and Corporate Policies'. Together they form a unique fingerprint.

Cite this