Interlocking Directorship in New Zealand
The aim of this research is to identify the determinants and consequences of interlocking board membership in New Zealand and whether this interlocking affects the firm performance. This research used a sample of 276 firm years and 1,783 directors from New Zealand listed companies. A two-fold app...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
University of Wollongong
2015-09-01
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| Series: | Australasian Accounting, Business and Finance Journal |
| Subjects: | |
| Online Access: | http://ro.uow.edu.au/aabfj/vol9/iss3/4 |
| _version_ | 1811334904664817664 |
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| author | Jamal Roudaki Md. Borhan Uddin Bhuiyan |
| author_facet | Jamal Roudaki Md. Borhan Uddin Bhuiyan |
| author_sort | Jamal Roudaki |
| collection | DOAJ |
| description | The aim of this research is to identify the determinants and consequences of interlocking board
membership in New Zealand and whether this interlocking affects the firm performance. This research
used a sample of 276 firm years and 1,783 directors from New Zealand listed companies. A two-fold
approach analysing the overlap of directors’ names, boards, and company levels was used.
This research finds that New Zealand firms are highly interlocked. While concentrated ownership firms
react negatively to interlocking, this research finds that interlocking is negatively impacting firm
performance in New Zealand. This research also finds that New Zealand firms were significantly
interlocked under both approaches, which resulted in negative firm performance.
This study has wide application to the New Zealand Financial Market Authority and Institute of Directors
New Zealand to evidence the possible effects of directors of being involved (“busy”) in more than one
company at the same time.
This is the first paper on firm and board interlocking based on New Zealand stock exchange data
following the corporate governance best practice code 2004 regime which identified both the
determinants and consequences of interlocking. |
| first_indexed | 2024-04-13T17:16:09Z |
| format | Article |
| id | doaj.art-e9358db0a66e484181f1141c38fef028 |
| institution | Directory Open Access Journal |
| issn | 1834-2000 1834-2019 |
| language | English |
| last_indexed | 2024-04-13T17:16:09Z |
| publishDate | 2015-09-01 |
| publisher | University of Wollongong |
| record_format | Article |
| series | Australasian Accounting, Business and Finance Journal |
| spelling | doaj.art-e9358db0a66e484181f1141c38fef0282022-12-22T02:38:08ZengUniversity of WollongongAustralasian Accounting, Business and Finance Journal1834-20001834-20192015-09-0193455810.14453/aabfj.v9i3.4Interlocking Directorship in New ZealandJamal Roudaki0Md. Borhan Uddin Bhuiyan1Lincoln University, New ZealandMassey University, New ZealandThe aim of this research is to identify the determinants and consequences of interlocking board membership in New Zealand and whether this interlocking affects the firm performance. This research used a sample of 276 firm years and 1,783 directors from New Zealand listed companies. A two-fold approach analysing the overlap of directors’ names, boards, and company levels was used. This research finds that New Zealand firms are highly interlocked. While concentrated ownership firms react negatively to interlocking, this research finds that interlocking is negatively impacting firm performance in New Zealand. This research also finds that New Zealand firms were significantly interlocked under both approaches, which resulted in negative firm performance. This study has wide application to the New Zealand Financial Market Authority and Institute of Directors New Zealand to evidence the possible effects of directors of being involved (“busy”) in more than one company at the same time. This is the first paper on firm and board interlocking based on New Zealand stock exchange data following the corporate governance best practice code 2004 regime which identified both the determinants and consequences of interlocking.http://ro.uow.edu.au/aabfj/vol9/iss3/4board independenceCEO interlockinterlocking directorinterlocked companyFirm performanceNew Zealand |
| spellingShingle | Jamal Roudaki Md. Borhan Uddin Bhuiyan Interlocking Directorship in New Zealand Australasian Accounting, Business and Finance Journal board independence CEO interlock interlocking director interlocked company Firm performance New Zealand |
| title | Interlocking Directorship in New Zealand |
| title_full | Interlocking Directorship in New Zealand |
| title_fullStr | Interlocking Directorship in New Zealand |
| title_full_unstemmed | Interlocking Directorship in New Zealand |
| title_short | Interlocking Directorship in New Zealand |
| title_sort | interlocking directorship in new zealand |
| topic | board independence CEO interlock interlocking director interlocked company Firm performance New Zealand |
| url | http://ro.uow.edu.au/aabfj/vol9/iss3/4 |
| work_keys_str_mv | AT jamalroudaki interlockingdirectorshipinnewzealand AT mdborhanuddinbhuiyan interlockingdirectorshipinnewzealand |