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An investigation of the relationship between board composition and stockholder suits
Author(s) -
Kesner Idalene F.,
Johnson Roy B.
Publication year - 1990
Publication title -
strategic management journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 11.035
H-Index - 286
eISSN - 1097-0266
pISSN - 0143-2095
DOI - 10.1002/smj.4250110408
Subject(s) - fiduciary , shareholder , composition (language) , insider , accounting , business , representation (politics) , corporate governance , control (management) , law and economics , law , management , economics , finance , political science , politics , linguistics , philosophy , duty
Abstract In recent years lawsuits against corporate directors have increased dramatically. Moreover, many critics feel that with current shifts toward greater insider representation, the number will rise still more. This study examines the relationship between board composition and shareholder suits. The results indicate that, when compared to a control group, boards sued for failing to maintain their fiduciary responsibilities tended to have a greater proportion of inside directors. There was, however, no significant relationship between composition and suit outcomes.