Board independence and operating performance: Analysis on (French) company and individual data
Sandra Cavaco
(1)
,
Edouard Challe
(2)
,
Patricia Crifo
(3)
,
Antoine Rebérioux
(4)
,
Gwenael Roudaut
(5)
Sandra Cavaco
- Fonction : Auteur
- PersonId : 1198611
- IdHAL : sandra-cavaco
- ORCID : 0000-0001-6365-0885
- IdRef : 075439247
Patricia Crifo
- Fonction : Auteur
- PersonId : 737316
- IdHAL : patricia-crifo
- ORCID : 0000-0001-6907-7856
- IdRef : 059378611
Antoine Rebérioux
- Fonction : Auteur
- PersonId : 176659
- IdHAL : antoine-reberioux
- ORCID : 0000-0003-1246-0605
- IdRef : 074763466
Résumé
This article studies the relationship between board independence and firm operating performance in French listed companies. We take advantage of an original database, with a time-series dimension that can be used to mitigate heterogeneity and dynamic endogeneity issues. In addition, this database can be disaggregated at the individual (director) level. This design enables us to introduce firm fixed effects and individual fixed effects in firm performance equations, thereby controlling for heterogeneity at the firm and individual levels. Our main result is to document a significant negative relationship between independence and accounting performance. This result suggests that, in the French context, the costs of independence (i.e. the informational gap supported by independent directors compared to insiders and affiliated directors) outweigh the benefits of independence (i.e. the reduction in agency costs).
Format du dépôt | Notice |
---|---|
Type de dépôt | Article dans une revue |
Titre |
en
Board independence and operating performance: Analysis on (French) company and individual data
|
Résumé |
en
This article studies the relationship between board independence and firm operating performance in French listed companies. We take advantage of an original database, with a time-series dimension that can be used to mitigate heterogeneity and dynamic endogeneity issues. In addition, this database can be disaggregated at the individual (director) level. This design enables us to introduce firm fixed effects and individual fixed effects in firm performance equations, thereby controlling for heterogeneity at the firm and individual levels. Our main result is to document a significant negative relationship between independence and accounting performance. This result suggests that, in the French context, the costs of independence (i.e. the informational gap supported by independent directors compared to insiders and affiliated directors) outweigh the benefits of independence (i.e. the reduction in agency costs).
|
Auteur(s) |
Sandra Cavaco
1
, Edouard Challe
2
, Patricia Crifo
3
, Antoine Rebérioux
4
, Gwenael Roudaut
5
1
LEMMA -
Laboratoire d'économie mathématique et de microéconomie appliquée
( 219652 )
- Université Paris 2, LEMMA 4 rue Blaise Desgoffe 75006 Paris
- France
2
CREST -
Centre de Recherche en Économie et Statistique
( 2579 )
- 5, Avenue Henry Le Chatelier
91120 Palaiseau
- France
3
EconomiX -
EconomiX
( 2564 )
- Bâtiment G
200 Avenue de la République
92001 NANTERRE CEDEX
- France
4
LADYSS -
Laboratoire Dynamiques Sociales et Recomposition des Espaces
( 1096 )
- Université Paris Ouest Nanterre La Défense Bâtiment T 200 avenue de la République 92001 Nanterre cedex
- France
5
X -
École polytechnique
( 300340 )
- École polytechnique, 91128 Palaiseau Cedex
- France
|
Langue du document |
Anglais
|
Nom de la revue |
|
Vulgarisation |
Non
|
Comité de lecture |
Oui
|
Audience |
Non spécifiée
|
Date de publication |
2016
|
Volume |
48
|
Numéro |
52
|
Page/Identifiant |
5093 - 5105
|
Domaine(s) |
|
Voir aussi |
|
Mots-clés (JEL) |
|
Mots-clés |
en
independent directors, firm performance, Board structure, GMM estimator, individual heterogeneity
|
DOI | 10.1080/00036846.2016.1170936 |
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