Hwang, Byoung-Hyoun; Kim, Seoyoung - In: Journal of Financial Economics 93 (2009) 1, pp. 138-158
Currently, a director is classified as independent if he or she has neither financial nor familial ties to the CEO or to the firm. We add another dimension: social ties. Using a unique data set, we find that 87% of boards are conventionally independent but that only 62% are conventionally and...