Board meeting frequency and firm performance

• 成果类型: Article
• 署名作者: Vafeas, N
• 署名单位: University of Cyprus
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/S0304-405X(99)00018-5
• 发表日期: 1999
• 页码: 113-142
• 关键词: CORPORATE GOVERNANCE; Board of directors; board meeting frequency

摘要

For 307 firms over the 1990-1994 period, I find that board meeting frequency is related to corporate governance and ownership characteristics in a manner that is consistent with contracting and agency theory. The annual number of board meetings is inversely related to firm value. This result is driven by increases in board activity following share price declines. I further find that operating performance improves following years of abnormal board activity. These improvements are most pronounced for firms with poor prior performance and firms not engaged in corporate control transactions. Overall, my results suggest that board activity, measured by board meeting frequency, is an important dimension of board operations. (C) 1999 Elsevier Science S.A. All rights reserved.