Is Director Industry Experience Valuable?
研究了投资者对新任外部董事任命公告的反应是否显著取决于该董事在任命公司所在行业的经验，发现任命有经验董事的公告回报显著更高，但无法完全排除内生匹配问题。
We investigate whether investor reactions to the announcement of a new outside director appointment significantly depend upon the director's experience in the appointing firm's industry. Our sample includes 688 outside director appointments to boards of S&P 500 companies from 2005 to 2010. We find significantly higher announcement returns upon appointments of experienced versus inexperienced directors. To alleviate endogeneity concerns, we use the deaths of 200 directors holding 280 outside directorships as an identification strategy and find significantly more negative announcement returns associated with the deaths of experienced versus inexperienced directors. However, while our results are robust to accounting for time‐fixed unobservable director and firm characteristics, we still cannot completely rule out endogenous firm‐director matching driving our results.