DOIONLINE 
DOIONLINE Publish In |
International Journal of Advances in Science, Engineering and Technology(IJASEAT)-IJASEAT |
 Journal Home Volume Issue |
||||||||
Issue |
Volume-5, Issue-3, Spl. Iss-2 ( Sep, 2017 ) | |||||||||
Paper Title |
Impact of over Boarded Directors on the Firm Performance: Evidence from Pakistan | |||||||||
Author Name |
Syed Muhammad Taqi Zaidi, Fatima Nadeem | |||||||||
Affilition |
Lecturer in Accounting and Finance, Staffordshire University, Stoke on Trent, ST4 2DE Management School, COMSATS Institute of Information Technology, Lahore, Pakistan arch Methods and Research Practice: History, Themes and Topics Bill Lee and Catherine Cassell 1Management School, University of Sheffield, Sheffield S1 4DT, UK, and 1Manchester Business School, The university of Manchester, Manchester M15 6BP, UK | |||||||||
Pages |
23-31 | |||||||||
Abstract |
This study adds to the debate on the costs and benefits of overboarded directors by examining the effect of overboarded directors on firm performance. Individuals sitting on several boards (or “busy” directors) demonstrate a greater inclination to be absent from board meetings and detrimental for firm performance. This study examines whether holding multiple outside board seats reduces a director’s capability to efficiently perform monitoring obligations by using a panel data set covering KSE index 100 firms listed from 2011 to 2014, after regression analysis study find a negative relation between the number of multiple appointments of independent directors and firm value, consistent with the busyness hypothesis. Past researchers argue that overboarded directors shirk their responsibility at the parent firm and are more likely to miss meetings due to extra workload and are less efficient fort the firm. The studies also report that such directors are less loyal to the firms and tend to resign in the bad times of the companies. The results are strong even after controlling for firm-related characteristics. Further study finding supports agency theory, which suggests that outside directors are the better monitors, and advocates that the increased number of outside directors on the board is beneficial for the firm. Keywords- Firm Performance, Director Busyness, Board Size, CEO Duality, Board Composition, Corporate Governance | |||||||||
| View Paper | ||||||||||
