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Does prestigious board membership matter? Evidence from New Zealand
Author(s) -
Jahan Mosammet Asma,
Lubberink Martien,
Van Peursem Karen
Publication year - 2021
Publication title -
accounting and finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.645
H-Index - 49
eISSN - 1467-629X
pISSN - 0810-5391
DOI - 10.1111/acfi.12601
Subject(s) - resource dependence theory , corporate governance , dependency (uml) , resource (disambiguation) , accounting , phenomenon , business , management , economics , finance , computer science , computer network , physics , software engineering , quantum mechanics
This study investigates whether ‘prestigious’ multiple board membership is positively associated with firm performance. We employ Resource Dependency theory to explain why performance outcomes may be improved by the presence of ‘prestigious’ multiple directorships. Our analysis relies on extensive hand‐collected data on New Zealand company directorships. The results support the contention that ‘prestigious’ multiple directorships are related to better accounting and market performance. Conclusions reflect upon how Resource Dependency theory informs this phenomenon and how ‘prestigious’ board members may be a valuable resource for firms. We also reveal how these findings expose a new avenue for board governance research.