The determinants of board meetings: evidence from categorical analysis
Al-Najjar, Basil (2012) The determinants of board meetings: evidence from categorical analysis. Journal of Applied Accounting Research 13 (2), pp. 178-190. ISSN 0967-5426.
Purpose The purpose of this paper is to investigate the determinants of the frequency of board meetings as an index for board activity including their monitoring role. Design/Methodology/Approach The research sample is composed of 120 UK firms based on their market capitalization for the period from 2003 to 2008. The study applies multinomial logistic modelling and conditional logistic modelling to investigate the frequency of board meetings. Findings The study finds that board size and structure are positively related to the frequency of board meetings. In addition, a negative impact of audit committee diligence on the frequency board meetings is reported. The study finds no evidence that the frequency of board meetings are reduced when there is a CEO duality. Finally, the results show that firm size, leverage, free cash flows, and Tobin's Q have an impact on the frequency of board meetings. Practical Implications This study shows the factors that affect the board effectiveness in the UK, namely that board meetings, board composition, and board size, are key indicators for good internal governance practices and, in turn, enhance board monitoring activities. Originality/Value The research offers the first major study to examine the determinants of the frequency of board meetings in UK non-financial firms. The paucity of the UK literature regarding board effectiveness in the UK reinforces the empirical importance of the results for researchers, managers, and UK policy makers.
|Keyword(s) / Subject(s):||board meetings, board structure, corporate governance, internal governance, United Kingdom|
|School:||Birkbeck Schools and Departments > School of Business, Economics & Informatics > Management|
|Depositing User:||Basil Al-Najjar|
|Date Deposited:||26 Oct 2012 08:55|
|Last Modified:||17 Apr 2013 12:25|
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