Fundamentals of Board Busyness and Corporate Governance

This book discusses corporate governance and board busyness in the context of a dual banking system, using the unique perspective of a dual banking system to explore the potential effects of these aspects on corporate outcomes. It challenges the opposing arguments surrounding board busyness and aims to help new researchers and students in the field advance their research and academic careers.

Format: Paperback / softback
Length: 89 pages
Publication date: 27 November 2022
Publisher: Springer Nature Switzerland AG

This comprehensive book delves into the core concepts and theoretical frameworks of corporate governance and board effectiveness, utilizing a unique perspective of a dual banking system to explore the potential impacts of these factors on corporate outcomes. Board busyness, characterized by a substantial proportion of "busy" members holding multiple directorships, is a topic of significant interest. In most cases, directors find themselves "over-boarded," holding excessive seats across different boards. The busyness of individuals is assessed to gauge their monitoring and recommendation abilities, based on their involvement, efforts, knowledge, skills, and experience, ultimately influencing their behavior in financial contexts. However, determining the effects of board busyness and its interplay with the reputational aspect presents a complex and inconclusive challenge.

This book stands as a pioneering exploration of this contemporary concept within the dual banking system, aimed at providing valuable insights and guidance to both new researchers in this field and students seeking to enhance their research and academic careers. By examining the dynamics of board busyness and its relationship with reputation, it offers a comprehensive understanding of the complex dynamics that shape corporate governance and performance.

The book begins by providing an overview of the dual banking system, which distinguishes between commercial banks and investment banks. It explains how the different regulatory environments and business models of these two sectors influence corporate governance practices. The authors then delve into the concept of board busyness, examining its prevalence and potential consequences in the context of the dual banking system.

They explore the arguments surrounding board busyness, including the perception that busy directors may be more focused on their multiple roles and less attentive to the specific needs of their individual boards. On the other hand, some argue that busy directors bring valuable expertise and networks to their boards, which can contribute to better decision-making and performance.

The book employs a rigorous empirical approach to examine the effects of board busyness on corporate outcomes. It analyzes data from a large sample of banks and examines the relationship between board busyness, board composition, and financial performance. The authors use various statistical techniques to control for potential confounding factors and identify the significant impacts of board busyness on firm value, risk-taking, and profitability.

Throughout the book, the authors provide insightful commentary and practical insights, drawing on their extensive research and experience in the field of corporate governance. They offer practical recommendations for policymakers, board members, and investors to enhance the effectiveness of corporate boards and improve corporate performance.

In conclusion, this book is a valuable resource for scholars, researchers, and practitioners interested in understanding the dynamics of corporate governance and board effectiveness. By examining the unique context of a dual banking system, it offers a comprehensive analysis of the factors that shape board busyness and its effects on corporate outcomes. The book's rigorous empirical approach, insightful commentary, and practical recommendations make it an essential read for anyone seeking to advance their knowledge in this field.

Weight: 191g
Dimension: 235 x 155 (mm)
ISBN-13: 9783030892302
Edition number: 1st ed. 2022