IDEAS home Printed from https://ideas.repec.org/a/bla/corgov/v15y2007i4p636-643.html
   My bibliography  Save this article

Where is Independent Director Efficacy?

Author

Listed:
  • Chin-Jung Luan
  • Ming-Je Tang

    (Sloan School of Management)

Abstract

Theoretically and empirically, the linkage between outside directors and firm performance is not conclusive in previous studies. We suspect that the mixed results are due to the failure to meet the requirements of the independence of outside directors. As the Taiwanese government has a rigorous definition of outside director independence, we employ a data set from Taiwan to test the impact of independent outside director assignment on a firm's performance. Our findings suggest that after controlling for a firm's past performance, independent outside director appointments do have a significantly positive impact on a firm's performance, and outperforming firms may have better performance but not significantly when assigning outside directors due to their absorptive capacity. Copyright (c) 2007 The Authors; Journal compilation (c) 2007 Blackwell Publishing Ltd.

Suggested Citation

  • Chin-Jung Luan & Ming-Je Tang, 2007. "Where is Independent Director Efficacy?," Corporate Governance: An International Review, Wiley Blackwell, vol. 15(4), pages 636-643, July.
  • Handle: RePEc:bla:corgov:v:15:y:2007:i:4:p:636-643
    as

    Download full text from publisher

    File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1467-8683.2007.00593.x
    File Function: link to full text
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ferdinand T. Siagian & Elok Tresnaningsih, 2011. "The impact of independent directors and independent audit committees on earnings quality reported by Indonesian firms," Asian Review of Accounting, Emerald Group Publishing, vol. 19(3), pages 192-207, September.
    2. Jesús Mauricio Flórez Parra, 2016. "El gobierno corporativo en el ámbito del sector público: un estudio bibliométrico en las revistas ubicadas en el área de Administración Pública," REVISTA FACULTAD DE CIENCIAS ECONÓMICAS, UNIVERSIDAD MILITAR NUEVA GRANADA, vol. 25(1), pages 161-175, December.
    3. Siri Terjesen & Eduardo Barbosa Couto & Paulo Morais Francisco, 2016. "Does the presence of independent and female directors impact firm performance? A multi-country study of board diversity," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 20(3), pages 447-483, September.
    4. Huang, Paoyu & Ni, Yensen, 2017. "Board structure and stock price informativeness in terms of moving average rules," The Quarterly Review of Economics and Finance, Elsevier, vol. 63(C), pages 161-169.
    5. Andrea Melis & Silvia Carta & Silvia Gaia, 2012. "Executive remuneration in blockholder-dominated firms. How do Italian firms use stock options?," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 16(3), pages 511-541, August.
    6. Pattarin Adithipyangkul & Tak Yan Leung, 2016. "Large Shareholders and Independent Director Equity Compensation," Australian Accounting Review, CPA Australia, vol. 26(2), pages 208-221, June.
    7. Isabel-María García-Sánchez, 2010. "The effectiveness of corporate governance: board structure and business technical efficiency in Spain," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 18(3), pages 311-339, September.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:corgov:v:15:y:2007:i:4:p:636-643. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0964-8410&site=1 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.