The Determinants of the Frequency of Board Meetings: Evidence from Categorical Analysis

Journal of Applied Accounting Research, Forthcoming

25 Pages Posted: 1 Jan 2011 Last revised: 4 Jan 2011

See all articles by Basil Al‐Najjar

Basil Al‐Najjar

University of London - School of Business, Economics and Informatics

Date Written: 2010

Abstract

This paper aims at investigating the determinants of the frequency of board meetings as an index for board activity including their monitoring role. 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. I find that board size and structure are positively related to the frequency of board meetings. In addition, I detect a negative impact of audit committee diligence on the frequency board meetings. The study finds no evidence that the frequency 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.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 UK reinforces the empirical importance of the results for researchers, managers, and UK policy makers.

Keywords: board meetings, board structure, internal governance

Suggested Citation

Al-Najjar, Basil, The Determinants of the Frequency of Board Meetings: Evidence from Categorical Analysis (2010). Journal of Applied Accounting Research, Forthcoming , Available at SSRN: https://ssrn.com/abstract=1733224 or http://dx.doi.org/10.2139/ssrn.1733224

Basil Al-Najjar (Contact Author)

University of London - School of Business, Economics and Informatics ( email )

Malet Street
Bloomsbury
London, WC1E 7HX
United Kingdom

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