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Performance effects of appointing other firms' executive directors to corporate boards: an analysis of UK firms

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This paper has explored the impact of appointing executive directors as non- executive directors on the appointing firm‟s performance. We find that relatively few executive directors are appointed as non-executive directors in UK quoted firms, which is consistent with the Higgs Report (2003). This is despite the long-standing conjecture that such appointments may positively affect firm performance. Consistent with this view, our results suggest a positive link between the presence of an IED and the appointing firm‟s performance. Our data reveal that the better the relative performance of the firm where the director is an...
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Performance effects of appointing other firms' executive directors to corporate boards: an analysis of UK firms

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