Conference Proceedings

Similarity-Attraction or Similarity-Competition: Director Selection based on Background Similarity

Renfei Gao, Wei Hu, Toru Yoshikawa

Academy of Management Proceedings | Academy of Management | Published : 2018

Abstract

Director selection is an important topic of corporate governance. Based on the similarity-attraction logic, extant research in the socialized tradition typically suggests that board chairs prefer to select similar directors with themselves. This logic mainly focuses on the collaborative side of chair-director relations, yet the potential competitive side is largely overlooked. Highlighting the dual roles of directors as both collaborators and competitors perceived by chairs, we incorporate both similarity-attraction and similarity-competition logics in the context of director selection, and propose a substitutive-complementary framework to reconcile their tension. Using longitudinal data on ..

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University of Melbourne Researchers