A temporal analysis of non‐executive director appointments to UK firms: 1990‐2000

Philip A. Hamill (School of Management and Economics, Queen's University, Belfast, UK)
Pat McGregor (School of Economics and Politics, University of Ulster, Jordanstown, UK)
Symaralah Rasaratnam (School of Business, Retail and Financial Services, University of Ulster, Coleraine, UK)

Managerial Finance

ISSN: 0307-4358

Publication date: 1 June 2006



While existing UK studies conduct a cross‐sectional analysis, this paper seeks to argue that the ratio of Executive Directors to non‐executive director (NED) on the boards of UK firms, coupled with a gradual appointment process, motivated by firms’ desire to comply with the recommendations of the Cadbury report, has the potential to produce a temporal effect.


Data for this study were collected from January 1990 to May 2000.


The empirical analysis suggests that a temporal pattern does exist. Two distinct periods were identified. In the initial period, prior to March 1998 the market viewed NED appointments favourably. After March 1998 NED appointments were no longer significant economic events. Overall, it appears that the market viewed the appointment of NEDs to the boards of FTSE 350 firms favourably; suggesting that such appointees were viewed as a significant input by firms as they attempted to achieve an optimal corporate governance mix.


This paper contributes to the small body of literature on the market's perception of the value of non‐executive, outside, director appointments to FTSE‐350 firms from 1990 to 2000.



Hamill, P., McGregor, P. and Rasaratnam, S. (2006), "A temporal analysis of non‐executive director appointments to UK firms: 1990‐2000", Managerial Finance, Vol. 32 No. 6, pp. 537-552. https://doi.org/10.1108/03074350610666256

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