Corporate boards and incentives: empirical evidence from the UK in 1935


We investigate boardroom governance using UK historical data for 1935. We demonstrate that there is a negative relationship between risk and incentives in this year. Prior research has produced anomalous results (Prendergast, 2002). Second, we show that average (median) board ownership of ordinary shares is about 7.95% (2.88%). Heuristically this figure is less than previously reported estimates for the US also using 1935 data. Finally, we show the phenomenon of multiple board membership. UK directors in 1935 hold many directorships – sometimes exceeding 10 concurrent memberships.

Divisions: College of Business and Social Sciences > Aston Business School > Accounting
Additional Information: Creative Commons Attribution Non-Commercial License 4.0 International
Uncontrolled Keywords: board membership,board ownership,board incentives
Publication ISSN: 1810-3057
Last Modified: 11 Mar 2024 08:09
Date Deposited: 09 Oct 2009 14:08
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Related URLs: http://www.virt ... g/journals.html (Publisher URL)
PURE Output Type: Article
Published Date: 2003
Authors: Pitts, Marianne
Sadler, Graham
Conyon, Martin J.


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