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

Marianne Pitts; Graham Sadler; Martin J. Conyon

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

Marianne Pitts, Graham Sadler, Martin J. Conyon

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Abstract

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.

Original language	English
Pages (from-to)	136-146
Number of pages	11
Journal	Corporate Ownership and Control
Volume	1
Issue number	1
Publication status	Published - 2003

Bibliographical note

Creative Commons Attribution Non-Commercial License 4.0 International

Keywords

board membership
board ownership
board incentives

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CORPORATE BOARDS AND INCENTIVES: EMPIRICAL EVIDENCE FROM THE UK IN 1935
Creative Commons Attribution Non-Commercial License 4.0 International
Final published version, 78.1 KBLicence: CC BY-NC 3.0

Cite this

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

Abstract

Bibliographical note

Keywords

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