Competition, Outside Directors and Executive Turnover: Implications for Corporate Governance in the EU

Buchwald, Achim

doi:10.1002/mde.2781

Cited by 12 publications

(4 citation statements)

References 114 publications

(165 reference statements)

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“…The effectiveness of busy directors has long been controversial and received considerable attention (Buchwald, 2017). Substantial research has investigated both the potential benefits and negative consequences derived from having busy directors on corporate boards.…”

Section: Introductionmentioning

confidence: 99%

Busy boards and accounting conservatism – an Australian perspective

Vafaei

Ahmed

et al. 2022

MEDAR

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Purpose This paper aims to examine the association between busy directors on corporate boards and accounting conservatism. Design/methodology/approach The authors use a sample of 500 firms listed on the Australian Security Exchange from 2004 to 2019. The busyness of non-executive directors is proxied by three indicators. For accounting conservatism, the authors use both conditional and unconditional accounting conservatism via asymmetric timeliness of earnings, accrual-based loss recognition, cumulative total accruals and book-to-market ratio. The authors cluster the standard errors at the firm level to compensate for potential residuals’ dependency and heteroscedasticity, in addition to analysing the main models using year and industry fixed effects (Petersen, 2009). Separately, the authors look at the impact of female busy directors on firms’ adoption of conservative accounting methods. Both propensity score matching analyses and Heckman (1979) two-stage approach systematically address endogeneity issues. Findings The presence of busy directors on boards leads to greater unconditional conservatism and less conditional conservatism. The relationships between busy female directors with both conditional and unconditional conservatism remain consistent with the main findings. Practical implications This paper provides useful insights for shareholders, regulators and accounting standards setters to better evaluate busy directors’ effectiveness in monitoring firms’ financial reporting quality. Directors and the companies themselves can refer to the authors’ findings to decide the best structure for their boards and committees, considering their specific monitoring requirements. Given that no mandatory restriction has been legislated, improved policies or new ones will ensure that busy directors can effectively fulfil their duties. Originality/value This research contributes to the broader research theme by examining the influence of directors’ quality on financial reporting conservatism. It also contributes to the ongoing debate in the corporate finance literature regarding the experience and busyness hypotheses of directors with multiple directorships. Additionally, this research adds value to gender diversity research by finding evidence that female busy directors follow the same pattern of reporting conservatism as male busy directors.

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Section: Introductionmentioning

confidence: 99%

Busy boards and accounting conservatism – an Australian perspective

Vafaei

Ahmed

et al. 2022

MEDAR

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“…Hence, the separation of ownership and management may provide some problems for companies, including conflict of interest and information asymmetry between manager and shareholder (Teixeira, 2012;Jiraporn et al 2012). These problems are due to showing opportunistic behavior by managers, including their concentration on self-interests, excessive use of capital, and inappropriate investment decisions (Buchwald, 2016). The opportunistic behaviors of management depend on the amount of management power and its credit in companies (Stagliano and Racca and Recca, 2014).…”

Section: Introductionmentioning

confidence: 99%

The impact of the characteristics and behaviors of the board of directors on agency costs in Iran

Salehi

Sadatifar

Adibian

2019

CyA

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“…Empirical research has provided some evidence that monitoring can have a strong impact on managerial and organizational performance. For instance, studies show that independent supervisory boards increase management turnover (Buchwald, 2017), reduce risk-taking (Eling and Marek, 2014) and exercise better capital control in the company (Balsmeier et al, 2015). However, research has also shown that the extent of monitoring varies greatly across companies (Van den Berghe and Baelden, 2005).…”

Section: Conceptual Frameworkmentioning

confidence: 99%

Toward an alternative measure of board diversity: an exploratory study on board polarization in German stock exchange-listed companies

Valentowitsch,

Kindig,

Burr

2024

BJM

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PurposeThe effects of board composition on performance have long been discussed in management research using fractionalization measures. In this study, we propose an alternative measurement approach based on board polarization.Design/methodology/approachUsing an exploratory analysis and applying the polarization measure to German Deutscher Aktienindex (DAX)-, Midcap-DAX (MDAX)- and Small Cap-Index (SDAX)-listed companies, this paper applies the polarization index to examine the relationship between board diversity and performance.FindingsThe results show that the polarization concept is well suited to measure principal-agent problems between the members of the management and supervisory boards. We reveal that board polarization is negatively associated with firm performance, as measured by return on investment (ROI).Originality/valueThis exploratory study shows that the measurement of board polarization can be linked to performance differences between companies, which offers promising starting points for further research.

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Competition, Outside Directors and Executive Turnover: Implications for Corporate Governance in the EU

Cited by 12 publications

References 114 publications

Busy boards and accounting conservatism – an Australian perspective

Busy boards and accounting conservatism – an Australian perspective

The impact of the characteristics and behaviors of the board of directors on agency costs in Iran

Toward an alternative measure of board diversity: an exploratory study on board polarization in German stock exchange-listed companies

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