The Signal Outside Directors Send to Foreign Investors

This paper explores how the composition of a firm's outside directors influences the growth of foreign investment in the firm. In this paper, we explore a signaling role of the composition of a firm's outside directors by examining how the composition influences the growth of foreigners' investment in the firm. Our analysis of large Korean firms shows that the growth of foreign ownership is positively affected if a higher proportion of outside directors hold advanced foreign degrees, if a higher proportion of outside directors work in the governmental organizations, or if a higher proportion of outside directors have job experience in the same industry.
Publisher
The Social Science Research Network(SSRN)
Issue Date
2007-04
Keywords

outside directors; foreigners’ investment; signaling; Korean firms

Citation

KAIST Business School Working Paper Series KBS-WP-2007-002

URI
http://hdl.handle.net/10203/4917
Link
http://ssrn.com/abstract=981348
Appears in Collection
KGSM-Journal Papers(저널논문)
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