abstract: I examine the determinants and implications of the level of director monitoring. I use the distance between directors' domiciles and firm headquarters as a proxy for the level of monitoring and the introduction of a new airline route between director domicile and firm HQ as an exogenous shock to the level of monitoring. I find a strong relation between distance and both board meeting attendance and director membership on strategic versus monitoring committees. Increased monitoring, as measured by a reduction in effective distance, by way of addition of a direct flight, is associated with a 3% reduction in firm value. A reduction in effective distance is also associated with less risk-taking, lower stock return volatility, lower accounting return volatility, lower R&D; spending, fewer acquisitions, and fewer patents. / Dissertation/Thesis / Ph.D. Business Administration 2014
| Identifer | oai:union.ndltd.org:asu.edu/item:25011 |
| Date | January 2014 |
| Contributors | Bennett, Benjamin Frank (Author), Coles, Jeffrey (Advisor), Hertzel, Michael (Committee member), Babenka, Ilona (Committee member), Custodio, Claudia (Committee member), Arizona State University (Publisher) |
| Source Sets | Arizona State University |
| Language | English |
| Detected Language | English |
| Type | Doctoral Dissertation |
| Format | 53 pages |
| Rights | http://rightsstatements.org/vocab/InC/1.0/, All Rights Reserved |
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