Which of the Following Statements Is False

question 11

Multiple Choice

Which of the following statements is false?

• A) In addition to the evidence that board independence matters for major activities such as firing CEOs and making corporate acquisitions, researchers have found a strong connection between board structure and firm performance.
• B) Theoretical and empirical research support the notion that the longer a CEO has served, especially when that person is also chairman of the board, the more likely the board is to become captured.
• C) Most firms that have just gone public either as young companies or as older firms returning to public status after a leveraged buyout (LBO) choose to start with smaller boards.
• D) Boards tend to grow over time as members are added for various reasons. For example, boards are often expanded by one or two seats after an acquisition to accommodate the target CEO and perhaps one other target director.

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Definitions:

T-statistic

A type of statistic used in hypothesis testing, calculated by dividing the difference between the sample mean and the hypothesized population mean by the standard error of the mean.

Alpha

A statistical significance level often set at 0.05 or 5%, indicating the probability threshold below which the observed data are considered statistically significant.

Null Hypotheses

The null hypothesis is a statement in statistical hypothesis testing that assumes no effect or no difference in the case of the study, serving as the default or initial assumption.

T-test

A statistical method employed to assess if there's a notable difference in the averages of two distinct groups.