The Moderating Effect of Audit Fees on Managerial Interests in Outside Director Compensation Decision

2020 ◽  
Vol 33 (2) ◽  
pp. 355-377
Author(s):  
Bum-Jin Park
Keyword(s):  
Audit Fees ◽  
Moderating Effect ◽  
Director Compensation ◽  
Outside Director

Outside director compensation and firm performance

1994 ◽  
Vol 33 (1) ◽  
pp. 111-133 ◽  
Author(s):  
Paul Hempel ◽  
Charles Fay
Keyword(s):  
Firm Performance ◽  
Director Compensation ◽  
Outside Director

scholarly journals Family business, director compensation and board efficacy: the case of Taiwan

2013 ◽  
Vol 11 (1) ◽  
pp. 81-91
Author(s):  
Tsun-Jui Hsieh ◽  
Yu-Ju Chen
Keyword(s):  
Firm Performance ◽  
Family Business ◽  
Positive Impact ◽  
Specific Pattern ◽  
Chinese Family ◽  
Outside Directors ◽  
Director Compensation ◽  
Outside Director ◽  
The Impact

This paper investigates the impact of outside directors on firm performance during legal transitions and examines how the roles of family business and director compensation influence board efficacy. By using Taiwanese listed companies as our sample, the empirical results show that outside directors who are appointed by legal mandate have less positive impacts on firm performance than outside directors appointed voluntarily. Family business weakens the positive impact of outside director on firm performance. The evidence further suggests that director compensation contributes to firm performance, particularly when outside directors are voluntarily appointed. The findings provide western managers with an understanding of how the typical Chinese family business affects board independence. We also demonstrate and incorporate the cultural and the ownership characteristics into the analysis to present a country-specific pattern that should be informative for foreign investors who are concerned about the quality of corporate governance in East Asia.

The moderating effect of international trade on outside director system in Korean firms

2019 ◽  
Vol 23 (1) ◽  
pp. 19-34
Author(s):  
Yoonsung Nam ◽  
Tae-Joong Kim ◽  
Wonyong Choi
Keyword(s):  
International Trade ◽  
Resource Dependence ◽  
Control Function ◽  
Resource Dependence Theory ◽  
Moderating Effect ◽  
Main Role ◽  
Global Business ◽  
Content Type ◽  
Dependence Theory ◽  
Outside Director

Purpose The purpose of this paper is to investigate the moderating effect of international trade on outside director system in Korean firms. The authors expected that Korean firms highly depending on international trade would mitigate the resource provision function of outside director system in order to reduce information asymmetry among global business partners. In addition, the authors tried to find out the functions of outside director system: the control function based on agency theory and resource provision function based on resource dependence theory. Design/methodology/approach The authors tested the hypotheses by Poisson regression with 2011 and 2002 Korean-listed manufacturing firms. The dependent variable is the number of excessively appointed outside directors and independent variable is CEO type: family CEO or professional CEO. The moderating variable is the dependency on international trade measured by export proportion out of total sales. Findings The authors found that not control but resource provision function was a main role of outside director system in Korean firms. The authors also found negative moderating effect of dependency on international trade, which means that firms highly depending on global market tended to consider outside director system as control function, namely “global standard.” Originality/value This paper is the leading study that tries to analyze empirically the relationship between international trade and the function of governance mechanism; outside director system in Korean firms. It also confirms that Korean firms adopted outside director system on the basis of the resource dependence theory.

Regulatory changes and audit fees: the moderating effect of overlapping directorship and financial reporting quality

2020 ◽  
Author(s):  
Salau Olarinoye Abdulmalik ◽  
Ayoib Che-Ahmad
Keyword(s):  
Financial Reporting ◽  
Perceived Risk ◽  
Reporting Quality ◽  
Regulatory Reform ◽  
Audit Fees ◽  
Moderating Effect ◽  
Financial Reporting Quality ◽  
Content Type ◽  
Regulatory Changes ◽  
The Relationship

PurposeThis study examines the contemporaneous changes in the reporting regime in Nigeria by investigating the effect of regulatory changes on audit fees as well as the moderating effect of overlapping directorship and financial reporting quality.Design/methodology/approachThis study utilises a longitudinal sample of 409 firm-year observations, from 2008 to 2013, of nonfinancial companies listed on the Nigerian stock exchange. The study uses the general method of moments (GMM) to control for endogeneity concerns.FindingsThe results reveal that, without the moderating effect of overlapping directorship and financial reporting quality, the relationship between regulatory changes and audit fees is positive but weak, which suggests that regulatory changes drive cost. Similarly, the interaction of overlapping directorship did not reverse the positive relationship, which suggests the perceived risk associated with overlapping directorship. However, the improvement in financial reporting quality reverses the relationship, as evidenced by the negative and significant coefficient on the interacted terms.Practical implicationsThis study provides useful insights about committee membership overlap to regulatory authorities concerning the weakness of the monitoring ability of such committees.Originality/valueThe results of this study contribute to the growing literature on regulatory reform, audit fees and corporate governance. Specifically, the study provides empirical evidence on the effect of committee overlap on audit fees, which, to the best of the researchers' knowledge, has received no empirical attention in the Nigerian context.

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