Estimating the effect of entrenched boards on firm value using geographic identification

Estimating the effect of entrenched boards on firm value using geographic identification

© 2014 Elsevier Inc. We show that firms located geographically close to one another share a similar probability of having staggered boards (or classified boards), an effect probably due to investor clientele, local competition, and social interactions. We then exploit the variation across the zip co...

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Main Authors: Pandej Chintrakarn, Pornsit Jiraporn, Shenghui Tong, Pattanaporn Chatjuthamard
Other Authors: Mahidol University
Format: Article
Published: 2018
Subjects:
Economics, Econometrics and Finance
Online Access:https://repository.li.mahidol.ac.th/handle/123456789/35897
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spelling th-mahidol.358972018-11-23T17:04:44Z Estimating the effect of entrenched boards on firm value using geographic identification Pandej Chintrakarn Pornsit Jiraporn Shenghui Tong Pattanaporn Chatjuthamard Mahidol University Pennsylvania State University Central University of Finance and Economics Chulalongkorn University Economics, Econometrics and Finance © 2014 Elsevier Inc. We show that firms located geographically close to one another share a similar probability of having staggered boards (or classified boards), an effect probably due to investor clientele, local competition, and social interactions. We then exploit the variation across the zip codes in the incidence of staggered boards and estimate the effect of staggered boards on firm value (measured by Tobin's Q). We use as our instrumental variable the proportion of firms located in the same zip code that have staggered boards, excluding firm i. The evidence shows that staggered boards reduce firm value significantly. 2018-11-23T10:04:44Z 2018-11-23T10:04:44Z 2015-01-01 Article Finance Research Letters. Vol.12, (2015), 109-116 10.1016/j.frl.2014.11.002 15446123 2-s2.0-84922845830 https://repository.li.mahidol.ac.th/handle/123456789/35897 Mahidol University SCOPUS https://www.scopus.com/inward/record.uri?partnerID=HzOxMe3b&scp=84922845830&origin=inward
institution Mahidol University
building Mahidol University Library
continent Asia
country Thailand
Thailand
content_provider Mahidol University Library
collection Mahidol University Institutional Repository
topic Economics, Econometrics and Finance
spellingShingle Economics, Econometrics and Finance
Pandej Chintrakarn
Pornsit Jiraporn
Shenghui Tong
Pattanaporn Chatjuthamard
Estimating the effect of entrenched boards on firm value using geographic identification
description © 2014 Elsevier Inc. We show that firms located geographically close to one another share a similar probability of having staggered boards (or classified boards), an effect probably due to investor clientele, local competition, and social interactions. We then exploit the variation across the zip codes in the incidence of staggered boards and estimate the effect of staggered boards on firm value (measured by Tobin's Q). We use as our instrumental variable the proportion of firms located in the same zip code that have staggered boards, excluding firm i. The evidence shows that staggered boards reduce firm value significantly.
author2 Mahidol University
author_facet Mahidol University
Pandej Chintrakarn
Pornsit Jiraporn
Shenghui Tong
Pattanaporn Chatjuthamard
format Article
author Pandej Chintrakarn
Pornsit Jiraporn
Shenghui Tong
Pattanaporn Chatjuthamard
author_sort Pandej Chintrakarn
title Estimating the effect of entrenched boards on firm value using geographic identification
title_short Estimating the effect of entrenched boards on firm value using geographic identification
title_full Estimating the effect of entrenched boards on firm value using geographic identification
title_fullStr Estimating the effect of entrenched boards on firm value using geographic identification
title_full_unstemmed Estimating the effect of entrenched boards on firm value using geographic identification
title_sort estimating the effect of entrenched boards on firm value using geographic identification
publishDate 2018
url https://repository.li.mahidol.ac.th/handle/123456789/35897
_version_ 1763490332467527680

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