Presented by

Harley E. Ryan Jr.
SunTrust Professor of Capital Markets and Associate Professor of Finance
J. Mack Robinson College of Business
Georgia State University

Abstract
We use data on over 4,000 residential addresses to study how outside directors’ geographic distance from headquarters relates to information acquisition and decisions by the board.

We find that director location reflects both the importance of acquiring soft information and the depth of local labor markets. Boards tend to have proximate directors when the firm has more intangible assets or when headquarters is located close to a major metropolitan area. When directors are more remote, non-routine CEO turnover is more sensitive to stock performance, and the CEO is compensated more heavily with equity-based pay. Thus, distance from headquarters is related to the extent to which directors use the hard information in stock prices.
 

When

20 March 2012
12:30pm – 1:30pm

Where

Boardroom, Faculty of Business (BLD02_3_03)
Bond University

Contact Information

Catherine Smith
Database and Research Support
Faculty of Business
Telephone: +61 7 5595 55721
Bond University | Gold Coast, Queensland, 4229, Australia