Busy Boards, Firm Performance and Operating Risk

IF 0.7 Q4 BUSINESS, FINANCE

Asian Academy of Management Journal of Accounting and Finance Pub Date : 2020-12-23 DOI:10.21315/aamjaf2020.16.2.1

K. Lee, C. Lok

引用次数: 4

Abstract

Using a sample of listed firms in Malaysia, Philippines, Singapore and Thailand, this article examines the association between busy board of directors and firm performance. We offer three results. First, we find that firm performance (measured by operating profitability and market-to-book equity) is negatively associated with busy boards. Second, we find that firms with busy boards have higher operating risk (measured by volatility of return on assets, volatility of stock returns and volatility of operating cash flow). Third, we find that the association between firm performance and busy boards is conditional on the firm’s life cycle stage. For firms in the growth stage, busy boards are beneficial to firm performance suggesting that the experience knowledge and reputation accumulated with multiple directorships help busy directors to more effectively advise these firms. In contrast, for firms in the maturity stage of their life cycle, busy boards are detrimental to firm performance suggesting the monitoring role of board is weakened by multiple directorships.

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繁忙的董事会、公司绩效和经营风险

本文以马来西亚、菲律宾、新加坡和泰国的上市公司为样本，考察了董事会忙碌与公司绩效之间的关系。我们提供三种结果。首先，我们发现公司业绩(以营业盈利能力和市净率衡量)与董事会的繁忙程度呈负相关。其次，我们发现董事会忙碌的公司经营风险更高(以资产收益率波动率、股票收益率波动率和经营性现金流波动率衡量)。第三，我们发现公司绩效与董事会忙碌之间的关联取决于公司的生命周期阶段。对于处于成长期的公司来说，忙碌的董事会有利于公司绩效，这表明在多个董事职位上积累的经验、知识和声誉有助于忙碌的董事更有效地为公司提供建议。相反，对于处于生命周期成熟期的公司来说，忙碌的董事会不利于公司绩效，这表明董事会的监督作用被多个董事削弱了。

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

Asian Academy of Management Journal of Accounting and Finance BUSINESS, FINANCE-

CiteScore

1.50

自引率

0.00%

发文量

审稿时长

20 weeks

期刊介绍： To provide a forum for the exchange of ideas and dissemination of empirical findings and analytical research in the specialized areas of accounting and finance with special emphasis on scholarly works with policy implications for countries in the Asia Pacific. The following are some of the topical subject areas relevant to the journal (but are not limited to): Accounting • Financial reporting and accounting standards • Auditing issues • Value based accounting and its relevance • Theory of accounting firm • Environmental auditing • Corporate governance issues • Public sector accounting Finance • Valuation of financial assets • International capital flows • Ownership and agency theory • Stock market behavior • Investment and portfolio management • Islamic banking and finance • Microstructures of financial markets