Board Independence and Product Market Competition in Swedish Firms

• DOI: 10.1111/j.1467-8683.2004.00369.x
• Publication Date: 2004-06-15T20:02:34Z
• Authors: Trond Randøy; Jan Inge Jenssen
• Keywords: Independence

This study suggests that firms in highly competitive industries should have fewer outside board members, whereas companies operating less more directors. Specifically, we argue independence is relevant or even redundant industries, where the firm already “monitored” by a product market. Using publicly traded Swedish for empirical testing, this finds reduces performance with markets. On other hand, enhances among facing