Publication Type
Journal Article
Version
publishedVersion
Publication Date
10-2013
Abstract
This study explores how CEOs' and outside directors' desires for the benefits of signaling and homophily intertwine with their concerns over maintaining power and preserving local status hierarchies to affect the likelihood a firm recruits prestigious outside directors to its board. Using pooled cross-sectional data on the five years following the IPOs of 210 firms that went public between 2001 and 2004, we found that prestigious CEOs and directors viewed the recruitment of prestigious new directors differently, and that these perceptions were moderated by factors that increase the salience of risk of the potential losses to the CEO and existing board members.
Keywords
board of directors, homophily, IPO, power, signaling, status
Discipline
Business | Strategic Management Policy
Research Areas
Strategy and Organisation
Publication
Academy of Management Journal
Volume
56
Issue
5
First Page
1396
Last Page
1419
ISSN
0001-4273
Identifier
10.5465/amj.2011.0639
Publisher
Academy of Management
Citation
ACHARYA, Abhijith G. and POLLOCK, Timothy G..
Shoot for the stars? Predicting the recruitment of prestigious directors at newly public firms. (2013). Academy of Management Journal. 56, (5), 1396-1419.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/3542
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.5465/amj.2011.0639