Director Busyness, Director Tenure and the Likelihood of Encountering Corporate Governance Problems

23 Pages Posted: 18 Jan 2011

See all articles by Greg Berberich

Greg Berberich

Wilfrid Laurier University

Flora Niu

Wilfrid Laurier University - School of Business & Economics

Date Written: January 17, 2011

Abstract

This paper examines the influence of two key director attributes on governance failures. More specifically, it examines the association between director tenure, director busyness and the likelihood of encountering governance problems. Results based on a logistic regression analysis of a sample of S&P 1500 directors indicate that long-serving directors and directors holding many board appointments are more likely to be associated with governance problems at the firms they oversee. These results reduce some of the inconclusiveness of prior research on the governance impacts of director busyness and tenure, and suggest the need to limit terms of service and cap the number of board appointments that can be held simultaneously.

Keywords: board of directors, director tenure, director busyness, multiple board appointments, corporate governance, governance failures

Suggested Citation

Berberich, Greg and Niu, Flora, Director Busyness, Director Tenure and the Likelihood of Encountering Corporate Governance Problems (January 17, 2011). CAAA Annual Conference 2011. Available at SSRN: https://ssrn.com/abstract=1742483 or http://dx.doi.org/10.2139/ssrn.1742483

Greg Berberich

Wilfrid Laurier University ( email )

75 University Ave W
Waterloo, Ontario N2L 3C5
Canada

Flora Niu (Contact Author)

Wilfrid Laurier University - School of Business & Economics ( email )

Waterloo, Ontario N2L 3C5
Canada
519-884-0710 x 3293 (Phone)
519-884-0201 (Fax)

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