June 11, 2002
Professor expert on corporate boardsJohn J. McConnell, a distinguished professor of finance at Purdue University's Krannert School of Management, has done research that indicates corporate board independence is good business and good management.
McConnell's work, published in finance journals, examined corporate board makeup and the effects of outside directors on corporations since the 1992 Cadbury Commission report. The commission recommended that boards of British corporations have at least three outside directors and different individuals in CEO and chairman positions.
He and co-researcher Jay Dahya found that boards dominated by outside directors were "more likely to fire their CEOs when performance is poor and more likely to hire outside CEOs when the current CEO is dismissed." And when outside directors were appointed, companies' stock prices went up. McConnell's current research explores whether the decisions of outside directors are better than those of companies with internal directors.
McConnell was recently featured on The NewsHour with Jim Lehrer and Lou Dobbs' Moneyline after his Wall Street Journal op-ed on New York Attorney General Eliot Spitzer's settlement with Merrill Lynch & Co.
CONTACT: John J. McConnell, (765) 494-5910, firstname.lastname@example.org.
A news release with abstracts on McConnell's Cadbury research is available.
Purdue News Service: (765) 494-2096; email@example.com