What might explain given finding

Reference no: EM131220843

Some U.S. companies have 1-year terms for directors. The entire corporate board must run for election at each annual meeting. Other companies have 3-year terms; only a third of directors face votes at each meeting.

A 2004 study found that the companies with 3-year terms have lower stock prices, controlling for other factors. What might explain this finding?

Reference no: EM131220843

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