Dual-board governance and board independence: Conglomerate affiliate versus standalone firms

IF 4.6 Q2 MATERIALS SCIENCE, BIOMATERIALS
Md Hamid Uddin, Khakan Najaf, M. Kabir Hassan, Nor Shaipah Abdul Wahab
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引用次数: 0

Abstract

We argue that the corporate board of an exchange-listed firm cannot make an independent business decision if it has an affiliation with a conglomerate group. This is because the corporate board of a conglomerate-affiliated firm (CAF) has high moral hazard exposure due to its accountability to the superior parent board at the apex of the conglomerate structure. Based on a sample of 304 listed firms from 18 countries, we find a CAF board is less independent than a standalone board with no superior reporting body. A firm's affiliation with the conglomerate per se affects its board independence, regardless of the parent shareholding level. The additional analysis finds that the lack of board independence significantly impacts a CAF's financial performance, although the market impact is insignificant.

双董事会治理与董事会独立性:企业集团关联公司与独立公司的比较
我们认为,如果一家在交易所上市的公司与企业集团有关联,那么该公司的董事会就无法做出独立的商业决策。这是因为与企业集团有关联的公司(CAF)的公司董事会由于要对位于企业集团结构顶端的上级母公司董事会负责,因此道德风险很高。基于 18 个国家 304 家上市公司的样本,我们发现,与没有上级报告机构的独立董事会相比,CAF 董事会的独立性较低。无论母公司的持股水平如何,公司与企业集团的隶属关系本身都会影响其董事会的独立性。补充分析发现,缺乏董事会独立性会严重影响 CAF 的财务业绩,尽管对市场的影响并不显著。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
ACS Applied Bio Materials
ACS Applied Bio Materials Chemistry-Chemistry (all)
CiteScore
9.40
自引率
2.10%
发文量
464
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