The effect of an ending time on the board of directors on their temporal depth A study in the Dutch water authority sector

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2023-06-26
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en
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Abstract
While it is known that a nearing end-term affects CEO decisions, the influence of working in terms on director behaviour has not been studied. Therefore, this research examines the relationship between the time until the end-term on the board and director temporal depth (time horizons that directors consider when acting and making decisions) by means of testing two hypotheses derived from literature on CEO career horizon. The sample used in this research consists of 62.229 statements recorded in board meetings in the Dutch water authority sector. A novel dictionary was developed that measures the temporal depth of directors. By using regression analysis, statistical evidence was provided that time until end-term is negatively related to short future temporal depth, as well as long past temporal depth, which means that the closer a director gets to their end-term, the more they consider the near future and the distant past when making decisions. Overall, this study contributes to existing literature on the board of directors by improving the understanding of the influence of working in terms.
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Faculteit der Managementwetenschappen
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