Board Interlocks and Firm Performance: Toward a Combined Agency–Resource Dependence Perspective
Zona, Fabio
Board Interlocks and Firm Performance: Toward a Combined Agency–Resource Dependence Perspective - 589–618 P.
This study develops a combined agency–resource dependence perspective and applies it to the study of interlocking directorates. It suggests that interlocking directorates may exert either a positive or a negative effect on subsequent firm performance, depending on the firm’s relative resources, power imbalance, ownership concentration, and CEO ownership. A test on a sample of 145 Italian companies provides support for hypothesized effects. This study suggests that integrating agency and resource dependence theories provides a higher-order explanation of firm performance and helps advance both agency and resource dependence theories.
resource dependence agency theory, boards of directors
Board Interlocks and Firm Performance: Toward a Combined Agency–Resource Dependence Perspective - 589–618 P.
This study develops a combined agency–resource dependence perspective and applies it to the study of interlocking directorates. It suggests that interlocking directorates may exert either a positive or a negative effect on subsequent firm performance, depending on the firm’s relative resources, power imbalance, ownership concentration, and CEO ownership. A test on a sample of 145 Italian companies provides support for hypothesized effects. This study suggests that integrating agency and resource dependence theories provides a higher-order explanation of firm performance and helps advance both agency and resource dependence theories.
resource dependence agency theory, boards of directors