Board Connectedness and Board Effectiveness

摘要: We examine the effect of social connectedness independent, non-co-opted directors on their ability to monitor and advise firm. begin by providing evidence that well-connected have greater protection from career concerns. next channels which director may improve monitoring find audit committee has a positive quality financial reporting. Further, better connected compensation committees are less likely overpay CEO. Finally, we firm’s information environment. show firms with highly boards lower financing costs higher payout ratios. also able shield firm negative impact competition shock. Our results robust multiple approaches mitigate endogeneity. Overall, appear be effective in promoting shareholders’ interests.