Too Busy to Show Up? An Analysis of Directors' Absences

34 Pages Posted: 25 Aug 2008 Last revised: 7 Sep 2008

See all articles by Pornsit Jiraporn

Pornsit Jiraporn

Pennsylvania State University - School of Graduate Professional Studies (SGPS)

Wallace N. Davidson

Southern Illinois University at Carbondale - Department of Finance

Yixi Ning

University of Houston - Victoria - School of Business Administration

Peter J. DaDalt

Susquehanna University

Date Written: January 21, 2008

Abstract

This study contributes to the debate on the benefits and costs of multiple directorships by investigating the impact of multiple directorships on board meeting attendance. Individuals with multiple board seats (or "busy" directors) exhibit a higher tendency to be absent from board meetings. The results are robust even after controlling for firm-specific characteristics, board-of-directors structure and endogeneity. Furthermore, our results do not support the hypothesis that directors with higher ownership stakes are more motivated to attend board meetings. Monetary inducements such as board meeting fees and annual director retainers do not appear to enhance attendance. Finally, the enactment of the Sarbanes-Oxley Act appears to have a material impact on board attendance.

Keywords: multiple directorships, meeting attendance, corporate governance, busy directors

JEL Classification: G32, G34, G38

Suggested Citation

Jiraporn, Pornsit and Davidson, Wallace N. and Ning, Yixi and DaDalt, Peter J., Too Busy to Show Up? An Analysis of Directors' Absences (January 21, 2008). Available at SSRN: https://ssrn.com/abstract=1254642 or http://dx.doi.org/10.2139/ssrn.1254642

Pornsit Jiraporn (Contact Author)

Pennsylvania State University - School of Graduate Professional Studies (SGPS) ( email )

30 E. Swedesford Road
Malvern, PA 19355
United States
(484) 753-3655 (Phone)

HOME PAGE: http://www.personal.psu.edu/pxj11/index1.html

Wallace N. Davidson

Southern Illinois University at Carbondale - Department of Finance ( email )

Mail Code 4626
Carbondale, IL 62901-4626
United States
618-453-1429 (Phone)
618-453-5626 (Fax)

Yixi Ning

University of Houston - Victoria - School of Business Administration ( email )

2002 W Grand Pkwy
Katy, TX 77449
United States

Peter J. DaDalt

Susquehanna University ( email )

Selinsgrove, PA 17870
United States
5703724524 (Phone)

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