AMERICAN JOURNAL OF MANAGEMENT
Does the Number of Interlocking Directors Influence a Firm’s Financial Performance?
An Exploratory Meta-Analysis
Author(s): Nai H. Lamb
Citation: Nai H. Lamb, (2017)"Does the Number of Interlocking Directors Influence a Firm’s Financial Performance? An Exploratory Meta-Analysis," American Journal of Management, Vol. 17, Iss. 2, pp. 47-57
Article Type: Research paper
Publisher: North American Business Press
Abstract:
Many scholars suggest when a firm is connected to other firms by interlocking directors, its financial performance should improve. However, some scholars suggest that when directors have other commitments, this could reduce their abilities to monitor or help their companies. As expected, extant empirical studies have produced mixed results of the relationship. An exploratory meta-analysis of 10 samples (n = 12,519) provided little evidence of a systematic estimate of interlocking directors/ financial performance relationship. Thus, this initial meta-analysis suggests that a mere count of interlocking directors may not have an influence on a firm’s financial performance.