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, and 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.
Copyright held by David F. Larcker and Brian Tayan. Further inquiries about reproduction and use should be directed to the Corporate Governance Research Initiative.
