Board Meeting Attendance by Outside Directors

Journal of Business Ethics 147 (4):901-917 (2018)

Outside directors’ regular board meeting attendance is important in improving the effectiveness of a governance system. Such attendance is evidence of their commitment to the firm as key other players in monitoring and decision making. Using a unique dataset for Korean firms, and three-level random coefficients models, we find that, foreign outside directors, an independent appointment process, professional knowledge of business operations and accumulated firm-specific knowledge are important factors that affect outside directors’ attendance of board meetings. The results also confirm that both outside directors’ personal characteristics and the social context are crucial in understanding their board meeting attendance. Further analysis shows that a positive corporate environment that supports the outside director system encourages outside directors’ attendance at board meetings.
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DOI 10.1007/s10551-015-2990-9
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Corporate Governance Reforms in Developing Countries.Darryl Reed - 2002 - Journal of Business Ethics 37 (3):223 - 247.

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