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.
|Number of pages||11|
|Journal||Corporate Ownership and Control|
|Publication status||Published - 2003|
Bibliographical noteCreative Commons Attribution Non-Commercial License 4.0 International
- board membership
- board ownership
- board incentives