Ajou University repository

Co-Opted Boards and Cost Stickiness
Citations

SCOPUS

0

Citation Export

DC Field Value Language
dc.contributor.author김채현-
dc.contributor.author이은서-
dc.contributor.author이준엽-
dc.date.issued2020-09-
dc.identifier.issn1225-0759-
dc.identifier.urihttps://aurora.ajou.ac.kr/handle/2018.oak/35268-
dc.description.abstractIn this study, we examine the effect of co-opted boards on cost stickiness. Co-opted directors are defined as those who are hired after a CEO takes office. We measure board co-option in two ways: the number of co-opted board members divided by the size of the board, and the sum of the co-opted directors’ tenure divided by the sum of all directors’ tenure. Cost stickiness occurs when a firm’s costs increase with an increase in activity level to a greater degree than they decrease with a decrease in activity level. We measure cost stickiness using an operating cost stickiness model. Based on a sample of 18,237 firm-year observations in the United States for the period 1995 to 2015, we show that cost stickiness increases with the proportion of co-opted board members. In addition, we show that board co-option increases cost stickiness by undermining independent directors’ monitoring effectiveness. Finally, strong governance mitigates the positive association between co-opted boards and cost stickiness. Overall, our findings are consistent with evidence from prior studies that co-opted boards represent weak board monitoring effectiveness.-
dc.language.isoEng-
dc.publisher한국재무관리학회-
dc.titleCo-Opted Boards and Cost Stickiness-
dc.title.alternative코옵티드(Co-Opted)이사와 원가의 하방경직성-
dc.typeArticle-
dc.citation.endPage108-
dc.citation.number3-
dc.citation.startPage89-
dc.citation.title재무관리연구-
dc.citation.volume37-
dc.identifier.bibliographicCitation재무관리연구, Vol.37 No.3, pp.89-108-
dc.identifier.doi10.22510/kjofm.2020.37.3.003-
dc.subject.keywordCo-Opted Boards-
dc.subject.keywordCost Stickiness-
dc.subject.keywordAgency Problems-
dc.subject.keyword코옵티드 이사회-
dc.subject.keyword원가의 하방경직성-
dc.subject.keyword대리인 문제-
dc.type.otherArticle-
Show simple item record

Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.

Related Researcher

Lee, Junyoup  Image
Lee, Junyoup 이준엽
Department of Business Administration
Read More

Total Views & Downloads

File Download

  • There are no files associated with this item.