Board Composition and Relationship‐Specific Investments by Customers and Suppliers

Abstract

Firms are more likely to include a supplier‐customer on the board if the supplier‐customer invests more in relationship‐specific assets. The results are stronger when the firm has poorer financial reporting quality or is financially distressed, as well as post‐SOX. Suppliers‐customers also increase their relationship‐specific investment following their appointment to the board. Directorships help avoid underinvestment and mitigate contracting frictions by reducing information risks and strengthening informal contracts with the firm.

Cite this work

No public copy is stored for this record, so only the metadata is cited.

Stored only when both papers are in the corpus — 27 citations exist upstream.

Papers that cite the same references — the relational fallback while embeddings are still backfilling.