Corporate boards and incentives: Empirical evidence from the UK in 1935

Marianne Pitts; Graham V. Sadler; Martin J. Conyon

doi:10.22495/cocv1i1p5

Corporate boards and incentives: Empirical evidence from the UK in 1935

Marianne Pitts, Graham V. Sadler, Martin J. Conyon

School of Economics, Finance and Accounting

Research output: Contribution to journal › Article › peer-review

Abstract

We investigate boardroom governance using UK historical data for 1935. We demonstrate that there is a negative relationship between risk and incentives in this year. Prior research has produced anomalous results (Prendergast, 2002). Second, we show that average (median) board ownership of ordinary shares is about 7.95% (2.88%). Heuristically this figure is less than previously reported estimates for the US also using 1935 data. Finally, we show the phenomenon of multiple board membership. UK directors in 1935 hold many directorships - sometimes exceeding 10 concurrent memberships.

Original language	English
Pages (from-to)	129-138
Number of pages	10
Journal	Corporate Ownership and Control
Volume	1
Issue number	1
DOIs	https://doi.org/10.22495/cocv1i1p5
Publication status	Published - 1 Jan 2003

Keywords

Board incentives
Board membership
Board ownership

ASJC Scopus subject areas

Business, Management and Accounting(all)

Access to Document

10.22495/cocv1i1p5

Cite this

@article{0c1c5e88ef9a46f496e32cc1fbf59868,

title = "Corporate boards and incentives: Empirical evidence from the UK in 1935",

abstract = "We investigate boardroom governance using UK historical data for 1935. We demonstrate that there is a negative relationship between risk and incentives in this year. Prior research has produced anomalous results (Prendergast, 2002). Second, we show that average (median) board ownership of ordinary shares is about 7.95% (2.88%). Heuristically this figure is less than previously reported estimates for the US also using 1935 data. Finally, we show the phenomenon of multiple board membership. UK directors in 1935 hold many directorships - sometimes exceeding 10 concurrent memberships.",

keywords = "Board incentives, Board membership, Board ownership",

author = "Marianne Pitts and Sadler, {Graham V.} and Conyon, {Martin J.}",

year = "2003",

month = jan,

day = "1",

doi = "10.22495/cocv1i1p5",

language = "English",

volume = "1",

pages = "129--138",

journal = "Corporate Ownership and Control",

issn = "1727-9232",

publisher = "Virtus Interpress",

number = "1",

}

TY - JOUR

T1 - Corporate boards and incentives

T2 - Empirical evidence from the UK in 1935

AU - Pitts, Marianne

AU - Sadler, Graham V.

AU - Conyon, Martin J.

PY - 2003/1/1

Y1 - 2003/1/1

N2 - We investigate boardroom governance using UK historical data for 1935. We demonstrate that there is a negative relationship between risk and incentives in this year. Prior research has produced anomalous results (Prendergast, 2002). Second, we show that average (median) board ownership of ordinary shares is about 7.95% (2.88%). Heuristically this figure is less than previously reported estimates for the US also using 1935 data. Finally, we show the phenomenon of multiple board membership. UK directors in 1935 hold many directorships - sometimes exceeding 10 concurrent memberships.

AB - We investigate boardroom governance using UK historical data for 1935. We demonstrate that there is a negative relationship between risk and incentives in this year. Prior research has produced anomalous results (Prendergast, 2002). Second, we show that average (median) board ownership of ordinary shares is about 7.95% (2.88%). Heuristically this figure is less than previously reported estimates for the US also using 1935 data. Finally, we show the phenomenon of multiple board membership. UK directors in 1935 hold many directorships - sometimes exceeding 10 concurrent memberships.

KW - Board incentives

KW - Board membership

KW - Board ownership

UR - http://www.scopus.com/inward/record.url?scp=84888408820&partnerID=8YFLogxK

U2 - 10.22495/cocv1i1p5

DO - 10.22495/cocv1i1p5

M3 - Article

AN - SCOPUS:84888408820

VL - 1

SP - 129

EP - 138

JO - Corporate Ownership and Control

JF - Corporate Ownership and Control

SN - 1727-9232

IS - 1

ER -

Corporate boards and incentives: Empirical evidence from the UK in 1935

Abstract

Keywords

ASJC Scopus subject areas

Access to Document

Other files and links

Fingerprint

Cite this