Board Composition, Quality, & Turnover

Board Composition, Quality, & Turnover

By
David F. Larcker, Brian Tayan
CGRI Research Spotlight Series. Corporate Governance Research Initiative (CGRI), April
2020

This Research Spotlight provides a summary of the academic literature on board composition, quality, and turnover. It reviews the evidence of:

  • The appointment of outside CEOs as directors
  • The importance of industry expertise to performance
  • The relation between director skills and performance
  • The stock market reaction to director resignations
  • Whether directors are penalized for poor oversight

This Research Spotlight expands upon issues introduced in the Quick Guide Board of Directors: Selection, Compensation, and Removal.