The Effect of Multiple Directorships on Investment Efficiency
1
조회
0
다운로드
4
인용
0
참고문헌
키워드
초록
In this article, I investigate the effect of multiple directorships on investment efficiency. Through the study of Korean firms, this article confirms that the existence and proportion of multiple directorships were negatively related to investment efficiency. The study also found that multiple directorships were strongly related to underinvestment. Accordingly, it concludes that multiple directorships are an obstacle to directors' fulfillment as it impedes effective investment opportunities and prevents them from playing leading roles in managerial decision-making. This, in turn, affects investment efficiency negatively
Abstract
In this article, I investigate the effect of multiple directorships on investment efficiency. Through the study of Korean firms, this article confirms that the existence and proportion of multiple directorships were negatively related to investment efficiency. The study also found that multiple directorships were strongly related to underinvestment. Accordingly, it concludes that multiple directorships are an obstacle to directors' fulfillment as it impedes effective investment opportunities and prevents them from playing leading roles in managerial decision-making. This, in turn, affects investment efficiency negatively
참고문헌 (52)
- Biddle, G. C., "Accounting quality and firm-level capital investment", The Accounting Review, 81(5), pp.963~982 (2006)
- Biddle, G. C., "How does financial reporting quality relate to investment efficiency?", Journal of Accounting and Economics, 48(2), pp.112~131 (2009)
- Blanchard, O. J., "What do firms do with cash windfalls?", Journal of Financial Economics, 36(3), pp.337~360 (1994)
- Boeker, W., "Organizational performance and adaptation : Effects of environment and performance on changes in board composition", Academy of Management journal, 34(4), pp.805~826 (1991)
- Carpenter, M. A., "The strategic context of external network ties : Examining the impact of director appointments on board involvement in strategic decision making", Academy of Management Journal, 44(4), pp.639~660 (2001)
- Charron, S., "Divided representation of concurrent goals in the human frontal lobes", Science, 328(5976), pp.360~363 (2010)
- Chen, F., "Financial reporting quality and investment efficiency of private firms in emerging markets", The Accounting Review, 86(4), pp.1255~1288 (2011)
- Cheng, M., "Does investment efficiency improve after the disclosure of material weaknesses in internal control over financial reporting?", Journal of Accounting and Economics, 56(1), pp.1~18 (2013)
- 최정호, "이사회 특성과 투자효율성", 국제회계연구, (50), pp.369~398 (2013), 한국국제회계학회[DOI]
- Conyon, M. J., "A model of the supply of executives for outside directorships", Journal of Corporate Finance, 12(3), pp.645~659 (2006)
- Daily, C. M., "Chief executive officers, top management teams, and boards of directors : Congruent or countervailing forces?", Journal of Management, 22(2), pp.185~208 (1996)
- Dass, N., "Board expertise : Do directors from related industries help bridge the information gap?", The Review of Financial Studies, 27(5), pp.1533~1592 (2013)
- Dechow, P. M., "Causes and consequences of earnings manipulation : An analysis of firms subject to enforcement actions by the SEC", Contemporary Accounting Research, 13(1), pp.1~36 (1996)
- Eisenberg, M. A., "The structure of the corporation:A legal analysis" (1976), Beard Books
- Fahlenbrach, R., "Why do firms appoint CEOs as outside directors?", Journal of Financial Economics, 97(1), pp.12~32 (2010)
- Fazzari, S. M., "Financing constraints and corporate investment", Brookings Papers on Economic Activity, 1988(1), pp.141~206 (1988)
- Ferris, S. P., "Too busy to mind the business? Monitoring by directors with multiple board appointments", The Journal of finance, 58(3), pp.1087~1111 (2003)
- Fich, E. M., "Are busy boards effective monitors?", The Journal of Finance, 61(2), pp.689~724 (2006)
- Field, L., "Are busy boards detrimental?", Journal of Financial Economics, 109(1), pp.63~82 (2013)
- Hambrick, D. C., "Top management groups: A conceptual integration and reconsideration of the "team" label", Research in organizational behavior, 16, pp.171~171 (1994)
- Hayashi, F., "Tobin's marginal q and average q : A neoclassical interpretation", Econometrica : Journal of the Econometric Society, 50(1), pp.213~224 (1982)
- Jensen, M. C., "Agency costs of free cash flow, corporate finance, and takeovers", The American Economic Review, 76(2), pp.323~329 (1986)
- Jensen, M. C., "The modern industrial revolution, exit, and the failure of internal control systems", The Journal of Finance, 48(3), pp.831~880 (1993)
- 전경민, "외국인 임원과 기업의 투자효율성", 회계학연구, 43(1), pp.119~165 (2018), 한국회계학회[DOI]
- Jiraporn, P., "Multiple directorships and corporate diversification", Journal of Empirical Finance, 15(3), pp.418~435 (2008)
- Jiraporn, P., "Ineffective corporate governance : Director busyness and board committee memberships", Journal of Banking & Finance, 33(5), pp.819~828 (2009)
- Johnson, J. L., "Boards of directors : A review and research agenda", Journal of management, 22(3), pp.409~438 (1996)
- Kaplan, S. N., "Do investment-cash flow sensitivities provide useful measures of financing constraints?", The Quarterly Journal of Economics, 112(1), pp.169~215 (1997)
- 김현아, "이사회의 독립성 및 전문성과 투자효율성", 경영학연구, 43(4), pp.1343~1378 (2014), 한국경영학회
- Klein, A., "Firm performance and board committee structure", The Journal of Law and Economics, 41(1), pp.275~304 (1998)
- Lei, A. C., "Do multiple directorships increase firm value? Evidence from independent directors in Hong Kong", Journal of International Financial Management & Accounting, 25(2), pp.121~181 (2014)
- Loderer, C., "Board overlap, seat accumulation and share prices", European Financial Management, 8(2), pp.165~192 (2002)
- Mace, M. L., "Directors : Myth and reality" (1971), Harvard Business Review Press
- McNichols, M. F., "Does earnings management affect firms’ investment decisions?", The Accounting Review, 83(6), pp.1571~1603 (2008)
- Min, I. S., "STATA Statistics and Regression Analysis" (2015), Jiphil
- Myers, S. C., "Determinants of corporate borrowing", Journal of Financial Economics, 5(2), pp.147~175 (1977)
- Nader, R., "Taming the giant corporation" (1976), Norton
- Opler, T., "The determinants and implications of corporate cash holdings", Journal of Financial Economics, 52(1), pp.3~46 (1999)
- 박정환, "The Impact of Climate Change Risks on Firm Value: Evidence from the Korea", Global Business and Finance Review, 22(3), pp.110~127 (2017), 사람과세계경영학회[DOI]
- 박진하, "외국인주주의 지분율이 기업의 투자효율성에 미치는 영향", 회계학연구, 37(3), pp.277~307 (2012), 한국회계학회
- 박선영, "재무보고의 질과 기업지배구조가 기업의 투자효율성에 미치는 영향", 회계정보연구, 29(4), pp.363~391 (2011), 한국회계정보학회
- Trend estimators and serial correlation, "Prais, S. J.", Cowles Commission, 1~26, pp.discussion paper, 383 (1954)
- Richardson, S., "Over-investment of free cash flow", Review of Accounting Studies, 11(2-3), pp.159~189 (2006)
- Rosenstein, S., "Shareholder wealth effects when an officer of one corporation joins the board of directors of another", Managerial and Decision Economics, 15(4), pp.317~327 (1994)
- Singh, J. V., "Organizational change and organizational mortality", Administrative science quarterly, 31(4), pp.587~611 (1986)
- Tobin, J., "A general equilibrium approach to monetary theory", Journal of Money, Credit and Banking, 1(1), pp.15~29 (1969)
- Vafeas, N., "Board meeting frequency and firm performance", Journal of Financial Economics, 53(1), pp.113~142 (1999)
- "Financial reporting quality and investment efficiency" (2006)[URL]
- Williamson, O., "Corporate governance", Yale Law Journal, 93(2), pp.197~229 (1984)
- 임상균, "대규모기업집단 소속기업의 투자효율성", 회계학연구, 39(3), pp.91~134 (2014), 한국회계학회
- Sojin Yu, "Managerial incentives and investment efficiency in high technology firms", Global Business and Finance Review, 23(4), pp.75~93 (2018), 사람과세계경영학회[DOI]
- Zahra, S. A., "Boards of directors and corporate financial performance : A review and integrative model", Journal of management, 15(2), pp.291~334 (1989)
