Governmental and scientific news and insights on investor oriented environmental, social, and governance (ESG) data.

Zombie Board: Board Tenure and Firm Performance

We show that board tenure exhibits an inverted U‐shaped relation with firm value and accounting performance. The quality of corporate decisions, such as M&A, financial reporting quality, and CEO compensation, also has a quadratic relation with board tenure. Our results are consistent with the interpretation that directors’ on‐the‐job learning improves firm value up to a [...]

By |2018-11-06T14:19:40+00:00November 6th, 2018|Firm Value, Governance, Indicators|0 Comments

CEO Tenure and Stock Returns Performance

This study shows that CEO tenure has positive and robust predictive power on cross-sectional stock returns. We show that a hedge portfolio constructed based on CEO tenure yields an annualised alpha of 1.32% and attribute this to seasoned CEOs having greater firm-specific knowledge and experience.  Consistent with this explanation, we find that CEO tenure has [...]

By |2018-03-02T11:24:36+00:00March 2nd, 2018|ESG, Firm Value, Governance, Indicators|0 Comments

Board Refreshment Trends at S&P 1500 firms

A growing number of investors have begun to take refreshment matters into their own hands. Some shareholders routinely oppose the reelection of long-tenured directors to encourage turnover and fresh blood. Importing a practice from the U.K. and other global markets, other investors threaten to slap “affiliated” (non-independent) labels on long-tenured board members in hopes of [...]

By |2017-03-13T14:57:00+00:00March 13th, 2017|ESG, Governance, Investors, Risk|0 Comments