The Impact Of The Sarbanes-Oxley Act In The Structure Of REITs' Board Of Directors
The author analyzes the changes in the board structure for Real Estate Investment Trusts (REITs) for the period 1999-2004. The author finds that post Sarbanes-OXley Act (SOX) boards have changed in terms of size and structure. REIT boards have become larger and much more independent. That is, the number of outside directors has increased and fewer Chief Executive Officers (CEOs) chair their boards. In addition, after SOX, more boards of directors are elected in full annually. However, in the relation between board structure and performance, the author does not find a consistent improvement in performance for Post-SOX boards with a majority of preferred features.