Globalizing the boardroom-The effects of foreign directors on corporate governance and firm performance

► About 13% of large U.S. public corporations have foreign independent directors (FIDs). ► FIDs help firms make better cross-border acquisitions. ► FIDs reduce board effectiveness in monitoring, incentivizing, and disciplining CEOs. ► The average effect of FIDs on firm performance is negative. ► FIDs contribute more to a firm's performance as its operation in the FID's home region grows.