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Roie Hauser

Roie Hauser

Ph.D. Candidate in Finance



I will be available at the AFA/ASSA meetings in Philadelphia (Jan 2-5, 2014).


Job Market Paper

Busy Directors and Firm Performance: Evidence from Mergers


This paper studies whether director appointments to multiple boards impact firm outcomes. To overcome the endogeneity of the number of board appointments, I exploit variation generated by mergers that terminate entire boards. These mergers reduce board appointments of the dismissed directors and are thus used as a negative shock to their workload. I find that a reduction in director workload is associated with higher earnings, higher market to book ratios, and higher pay-performance sensitivity in CEO compensation contracts. Consistent with the hypothesis that director workload matters, the performance gains are particularly stark when directors are geographically far from firm headquarters, and when marginal value of directors’ time and effort is high. In addition, directors are more likely to join board committees after losing seats on other boards, suggesting that they are able to devote more time to remaining boards. Finally, I find a similar effect on incumbent CEOs who hold additional board appointments.


Last Updated 7/10/09