Board Meeting Attendance by Outside Directors
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Outside directors’ regular board meeting attendance is important in improving the effectiveness of a governance system. Such attendance is evidence of their commitment to the firm as key other players in monitoring and decision making. Using a unique dataset for Korean firms, and three-level random coefficients models, we find that, foreign outside directors, an independent appointment process, professional knowledge of business operations and accumulated firm-specific knowledge are important factors that affect outside directors’ attendance of board meetings. The results also confirm that both outside directors’ personal characteristics and the social context are crucial in understanding their board meeting attendance. Further analysis shows that a positive corporate environment that supports the outside director system encourages outside directors’ attendance at board meetings.
Journal of Business Ethics
Copyright 2015 Springer Netherlands. This is an electronic version of an article published in Journal of Business Ethics, First Online: 14 December 2015, DOI: 10.1007/s10551-015-2990-9. Journal of Business Ethics is available online at: http://link.springer.com/ with the open URL of your article.
This publication has been entered into Griffith Research Online as an Advanced Online Version.
Business and Management not elsewhere classified