For a sample of over 700 celebrity appointments to corporate boards of directors over the period 1985-2006, we find positive excess market returns at the time of their announcement. The 1-, 2-, and 3-year long-run performance of the appointing firms provide corroborating evidence of the value of these appointments. We conclude that the appointment of celebrities as directors increase a firm's visibility in a fashion consistent with Merton's (J Finance 42:483-510, 1987) investor recognition hypothesis. © 2011 Springer-Verlag.
CITATION STYLE
Ferris, S. P., Kim, K. A., Nishikawa, T., & Unlu, E. (2011). Reaching for the stars: The appointment of celebrities to corporate boards. International Review of Economics, 58(4), 337–358. https://doi.org/10.1007/s12232-011-0139-4
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