Felix von Meyerinck

Former Member
Thumbnail Image
Title
Prof. Dr.
Last Name
von Meyerinck
First name
Felix
Phone
+41 71 224 7029

Settings

Now showing 1 - 1 of 1
  • Thumbnail Image
    Some of the metrics are blocked by your 
    consent settings
    Item type:Publication,
    Industry Expert Directors
    (SoF-HSG)
    Drobetz, Wolfgang
    ;
    von Meyerinck, Felix  
    ;
    Oesch, David
    ;
    Schmid, Markus  
    We analyze the valuation effect of board industry experience and channels through which in- dustry experience of outside directors affects firm value. Our analysis shows that firms with more experienced outside directors are valued at a premium compared to firms with less expe- rienced outside directors. Additional analyses, including a quasi-experimental setting based on director deaths, mitigate endogeneity concerns. Further tests show that the board industry ex- perience-firm value relation is more pronounced for firms with larger investment programs, larger cash reserves, and during crises. In contrast, it is weaker in more dynamic industries where the value of previously acquired experience is likely to be diminished. We also provide some evidence that corporate governance problems in firms, in particular entrenched CEOs, and a limited supply of industry experts prevent firms from appointing more industry experts to their boards, even though this would be value-increasing. Overall, our findings are consistent with board industry experience being a valuable corporate governance mechanism.
    Type:working paper
    Volume:2014/01
    Issue:01
    URI:https://www.alexandria.unisg.ch/handle/20.500.14171/116457