What Attracts Directors to Boards of Small-and Mid-Sized Companies

  • M. Alix Valenti University of Houston Clear Lake
  • Clifton O. Mayfield University of Houston Clear Lake
  • Rebecca A. Luce Xavier University

Abstract

This paper explores the reasons why outside corporate directors choose to serve on the boards of small- to mid-sized companies. Resource dependence theory explains the importance of outside directors on corporate boards, especially for small- and mid-sized companies. Attracting qualified board members is both an important and sometimes difficult task for such companies. Using a sample of 102 NASDAQ companies, we find that firm performance, financial incentives, and time constraints influence the decision of an outsider to accept a board seat.

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Published
2010-01-21
How to Cite
VALENTI, M. Alix; MAYFIELD, Clifton O.; LUCE, Rebecca A.. What Attracts Directors to Boards of Small-and Mid-Sized Companies. Journal of Small Business Strategy, [S.l.], v. 21, n. 1, p. 65-82, jan. 2010. ISSN 2380-1751. Available at: <https://libjournals.mtsu.edu/index.php/jsbs/article/view/139>. Date accessed: 27 june 2019.
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