Document Type

Article

Publication Date

2004

Publication Title

Academy of Accounting and Financial Studies Journal

First Page

73

Last Page

91

Additional Publication URL

http://www.alliedacademies.org/Publications/Download.aspx?fid=217

Abstract

Recent corporate bankruptcies have placed renewed focus on the role of a firm's board of directors; therefore, I study rankings of the best and worst boards of directors as published by Business Week. Similar to prior studies examining survey data, I find that the portion of the rankings determined via investment manager survey is biased by the "halo effect." However, I also find that the rankings as a whole, and particularly the portion calculated via quantitative analysis, do provide information that can be used in a trading strategy capable of generating positive abnormal returns, thereby implying that board strength does matter.

Rights

This article was archived with permission from Academy of Accounting and Financial Studies, all rights reserved. Document also available from Academy of Accounting and Financial Studies Journal.

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