Too busy to show up? An analysis of directors' absences

Pornsit Jiraporn, Wallace N. Davidson, Peter DaDalt, Yixi Ning

Research output: Contribution to journalArticlepeer-review

88 Scopus citations

Abstract

This study contributes to the debate on the benefits and costs of multiple directorships by investigating the impact of multiple directorships on board meeting attendance. Individuals with multiple board seats (or "busy" directors) exhibit a higher tendency to be absent from board meetings. The results are robust even after controlling for firm-specific characteristics, board of directors structure and endogeneity. Furthermore, our results do not support the hypothesis that directors with higher ownership stakes are more motivated to attend board meetings. Monetary inducements such as board meeting fees and annual director retainers do not appear to enhance attendance. Finally, the enactment of the Sarbanes-Oxley Act (SOX) appears to have a material impact on board attendance.

Original languageEnglish (US)
Pages (from-to)1159-1171
Number of pages13
JournalQuarterly Review of Economics and Finance
Volume49
Issue number3
DOIs
StatePublished - Aug 1 2009

All Science Journal Classification (ASJC) codes

  • Finance
  • Economics and Econometrics

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