This paper studies performance effects of appointing other firms' executive directors to corporate boards in the UK. Consistent with the explicit advantages associated with non-executive directors, as set out in the various UK corporate governance codes, our basic hypothesis maintains that, in the presence of director fixed effects, the appointment of an executive director as non-executive director will have a positive impact on the appointing company‟s performance. Our empirical analysis is based on a new rich panel dataset that is obtained by merging financial data from Extel Financial and director information from the.
