Globalizing the boardroom-The effects of foreign directors on corporate governance and firm performance

• 成果类型: Article
• 署名作者: Masulis, Ronald W.; Wang, Cong; Xie, Fei
• 署名单位: George Mason University; Chinese University of Hong Kong; University of New South Wales Sydney
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/j.jacceco.2011.12.003
• 发表日期: 2012
• 关键词: individual investors; market valuation; Audit committee; determinants; geography; size; COMPENSATION; OWNERSHIP; US; diversification

摘要

We examine the benefits and costs associated with foreign independent directors (FIDs) at U.S. corporations. We find that firms with FIDs make better cross-border acquisitions when the targets are from the home regions of FIDs. However, FIDs also display poor board meeting attendance records and are associated with a greater likelihood of intentional financial misreporting, higher CEO compensation, and a lower sensitivity of CEO turnover to performance. Finally, firms with FIDs exhibit significantly poorer performance, especially as their business presence in the FID's home region becomes less important. (c) 2011 Elsevier B.V. All rights reserved.