Loading...
Does board independence influence financial performance in IPO firms? The moderating role of the national business system
Zattoni, Alessandro Witt, Michael A. Judge, William Q. Talaulicar, Till Chen, Jean Jinghan Lewellyn, Krista Hu, Helen Wei Gabrielsson, Jonas Rivas, Jose Luis Puffer, Sheila
Zattoni, Alessandro
Witt, Michael A.
Judge, William Q.
Talaulicar, Till
Chen, Jean Jinghan
Lewellyn, Krista
Hu, Helen Wei
Gabrielsson, Jonas
Rivas, Jose Luis
Puffer, Sheila
Editors
Other contributors
Affiliation
Epub Date
Issue Date
2017-08-31
Submitted date
Alternative
Abstract
Prior evidence suggests that board independence may enhance financial performance, but this relationship has been tested almost exclusively for Anglo-American countries. To explore the boundary conditions of this prominent governance mechanism, we examine the impact of the formal and information institutions of 18 national business systems on the board independence-financial performance relationship. Our results show that while the direct effect of independence is weak, national-level institutions significantly moderate the independence-performance relationship. Our findings suggest that the efficacy of board structures is likely to be contingent on the specific national context, but the type of legal system is insignificant.
Citation
Zattoni, A., Witt, M.A., Judge, W.Q., Talaulicar, T., Chen, J.J., Lewellyn, K., Hu, H., Gabrielsson, J., Luis Rivas, J., Puffer, S., Shukla, D., Lopez, F., Adegbite, E., Fassin, Y., Yamak, S., Fainshmidt, S., and Van Ees, H. (2017) 'Does board independence influence financial performance in IPO firms? The moderating role of the national business system', Journal of World Business, 52 (5), pp. 628-639.
Publisher
Journal
Research Unit
PubMed ID
PubMed Central ID
Embedded videos
Additional Links
Type
Journal article
Language
en
Description
Series/Report no.
ISSN
1090-9516