Impacts of the structure of capital on board members reputation – EURAM 2008

Our study builds upon and extends Zajac and Westphal (1996) findings by suggesting that the relationship between director’s reputation, built on the basis of prior mandates, and the number and types of subsequent new mandates, is moderated by the ownership structure of firms in which the director served. We test this perspective using a sample of 2730 directors sitting on the board of 200 firms belonging to the SBF 250, for the period 2000-2005. We show how board members influence the selection of new members, by choosing them according to their reputation and in a way to maintain their own power. We also show that the market of labour of directors take into account the ownership context in which they have served to judge their willingness to control management.