Director workloads, attendance and firm performance
Abstract
Purpose
This paper examines whether increased director workloads are benefiting firms or are causing directors to become too busy, resulting in lower director attendance and weaker firm performance.
Design/methodology/approach
This paper conducts empirical analysis of the relationships between meeting frequency, director attendance rates and firm performance using archival data from Australia.
Findings
Attendance rates for both outside and inside directors decrease as they are required to attend more meetings. The benefits firms obtain from holding additional meetings are significantly eroded by lower director attendance.
Originality/value
This study brings together the literatures on meeting frequency, director busyness and firm performance to show that increased director workloads are only beneficial to firms if directors do not become too busy to fulfill their obligations to shareholders.
Keywords
Citation
Gray, S. and Nowland, J. (2018), "Director workloads, attendance and firm performance", Accounting Research Journal, Vol. 31 No. 2, pp. 214-231. https://doi.org/10.1108/ARJ-02-2016-0023
Publisher
:Emerald Publishing Limited
Copyright © 2018, Emerald Publishing Limited