Outside Directors and Firm Performance During Institutional Transitions  

Oleh:

Peng, Mike W.

Jenis: Article from Journal - ilmiah internasional
Dalam koleksi: Strategic Management Journal vol. 25 no. 5 (May 2004), page 453-472.
Topik: firm performance; outside directors; firm performance; institutional transitions; china

Ketersediaan

Perpustakaan Pusat (Semanggi) Nomor Panggil: SS30.15 Non-tandon: 1 (dapat dipinjam: 0) Tandon: tidak ada

Lihat Detail Induk

Isi artikel

Do outside directors on corporate boards make a difference in firm performance during institutional transitions ? What leads to the practice of appointing outside directors in the absence of legal mandate ? This article addresses these two important questions by drawing not only on agency theory, but also resource dependence and isntitutional theories. Taking advantage of china's institutional transitions, our findings, based on an archival database covering 405 publicly listed firms and 1211 company years, sugegst that outsider directors do make a difference in firm performance, if such performance is measured by sales growth and that they have little impact on financial performance such as return on equity (ROE). The results also document a bandwagon effect behind the diffusion of the practice of appointing outsiders to corporate boards. The article not only highlights the need to incorporate multiple theories beyond agency theory in corporate governance research, but also generates policy implications in light of the recent trend toward having more outside directors on corporate boards in emerging economies.

Opini Anda

Klik untuk menuliskan opini Anda tentang koleksi ini!

Kembali