Remote board meetings and board monitoring effectiveness: evidence from China
Using Chinese data, we examine whether synchronous remote board meetings, which facilitate status equalization among directors and alleviate their pressure for conformity, affect board monitoring effectiveness. We find that compared to face-to-face meetings, synchronous remote meetings are associate...
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| Format: | Journal Article |
| Sprog: | English |
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2024
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| Online adgang: | https://hdl.handle.net/10356/173447 |
| _version_ | 1826124393066004480 |
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| author | Cai, Xinni Jiang, Fuxiu Kang, Jun-Koo |
| author2 | Nanyang Business School |
| author_facet | Nanyang Business School Cai, Xinni Jiang, Fuxiu Kang, Jun-Koo |
| author_sort | Cai, Xinni |
| collection | NTU |
| description | Using Chinese data, we examine whether synchronous remote board meetings, which facilitate status equalization among directors and alleviate their pressure for conformity, affect board monitoring effectiveness. We find that compared to face-to-face meetings, synchronous remote meetings are associated with directors' better meeting attendance behavior, a higher likelihood of director dissent on monitoring-related proposals, higher forced CEO turnover-performance sensitivity, and more effective investments. These results hold when we use remote meetings that include both synchronous and asynchronous remote meetings. Proposal-director level analysis further shows that remote meetings reduce the pressure to conform faced by young first-term directors and socially connected directors. Authors have furnished an Internet Appendix, which is available on the Oxford University Press Web site next to the link to the final published paper online. |
| first_indexed | 2024-10-01T06:19:54Z |
| format | Journal Article |
| id | ntu-10356/173447 |
| institution | Nanyang Technological University |
| language | English |
| last_indexed | 2024-10-01T06:19:54Z |
| publishDate | 2024 |
| record_format | dspace |
| spelling | ntu-10356/1734472024-02-06T07:08:39Z Remote board meetings and board monitoring effectiveness: evidence from China Cai, Xinni Jiang, Fuxiu Kang, Jun-Koo Nanyang Business School Business and Management Remote Board Meetings Board Monitoring Effectiveness Using Chinese data, we examine whether synchronous remote board meetings, which facilitate status equalization among directors and alleviate their pressure for conformity, affect board monitoring effectiveness. We find that compared to face-to-face meetings, synchronous remote meetings are associated with directors' better meeting attendance behavior, a higher likelihood of director dissent on monitoring-related proposals, higher forced CEO turnover-performance sensitivity, and more effective investments. These results hold when we use remote meetings that include both synchronous and asynchronous remote meetings. Proposal-director level analysis further shows that remote meetings reduce the pressure to conform faced by young first-term directors and socially connected directors. Authors have furnished an Internet Appendix, which is available on the Oxford University Press Web site next to the link to the final published paper online. This work was supported by the National Natural Science Foundation of China [grant #72102041 and grant #72272144] and the Fundamental Research Funds for the Central Universities in UIBE [grant #CXTD12-03 and grant #CXTD14-01]. 2024-02-05T02:51:52Z 2024-02-05T02:51:52Z 2023 Journal Article Cai, X., Jiang, F. & Kang, J. (2023). Remote board meetings and board monitoring effectiveness: evidence from China. Review of Financial Studies, 36(11), 4318-4372. https://dx.doi.org/10.1093/rfs/hhad026 0893-9454 https://hdl.handle.net/10356/173447 10.1093/rfs/hhad026 2-s2.0-85172223244 11 36 4318 4372 en Review of Financial Studies © The Author(s) 2023. Published by Oxford University Press on behalf of The Society for Financial Studies. All rights reserved. |
| spellingShingle | Business and Management Remote Board Meetings Board Monitoring Effectiveness Cai, Xinni Jiang, Fuxiu Kang, Jun-Koo Remote board meetings and board monitoring effectiveness: evidence from China |
| title | Remote board meetings and board monitoring effectiveness: evidence from China |
| title_full | Remote board meetings and board monitoring effectiveness: evidence from China |
| title_fullStr | Remote board meetings and board monitoring effectiveness: evidence from China |
| title_full_unstemmed | Remote board meetings and board monitoring effectiveness: evidence from China |
| title_short | Remote board meetings and board monitoring effectiveness: evidence from China |
| title_sort | remote board meetings and board monitoring effectiveness evidence from china |
| topic | Business and Management Remote Board Meetings Board Monitoring Effectiveness |
| url | https://hdl.handle.net/10356/173447 |
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