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

Authors

  • 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

Issue

Vol. 21 No. 1 (2010)

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Articles

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How to Cite

What Attracts Directors to Boards of Small-and Mid-Sized Companies. (2010). Journal of Small Business Strategy (archive Only), 21(1), 65-82. https://libjournals.mtsu.edu/index.php/jsbs/article/view/139