A Temporal Analysis of Non-Executive Director Appointments to FTSE 350 Firms: 1990-2000

Abstract

A priori, we argue that the period under study is characterised by two distinct regimes. Initially, Non-executive director appointments take place within a regulationist context. In the latter period such board changes occur in a Laissez-faire environment. The empirical analysis suggests that the market responds positively to appointments in the initial period and vice versa in the latter period. Temporal analysis indicates a regime switch around March 1998. These findings are consistent with our prior theoretical arguments.