Board Busyness Research Articles

Choice of financial audit firm and ESG assurance firm: The role of board of director characteristics

Corporations increasingly seek assurance on their published environmental, social, and governance (ESG) reports. Some companies use their audit firm to assure ESG reports, while others seek assurance services from a different firm. This paper investigates the influence of boardroom-based factors – female directors and multiple directorships – on companies' choice of ESG assurance provider. Using a sample of 438 Australian company-year observations from 2010 to 2020 we find that companies with more female directors and busy boards (i.e., boards with directors having at least three concurrent directorships) are more likely to choose a Big-4 audit firm different from their incumbent financial auditor to assure their ESG reports. Based on agency, social capital and resource dependence theories, we explain this ESG assurance procurement strategy as deliberate to address the potential ethical dilemma of engaging the same audit firm for assurance of financial and non-financial information. Our findings suggest that companies with more female directors and busy boards are likelier than their counterparts to apply this ethical stance in choosing their financial auditors and ESG assurers. Implications for policymakers and regulators in designing board diversity guidelines or rules and companies in setting board diversity criteria and policies are discussed.

Offsetting the void of overboarding risk: The role of financial expertise in an emerging market

To contribute to the growing literature on the implications of board busyness for firm outcomes, this study investigates the relationship between overboarding risk (OBRisk) and firm value (FV) in an emerging market setting and whether financial expertise matters for this relationship. We apply the least square dummy variable (LSDV) two-way fixed effect estimator to panel data of non-financial publicly-listed South African firms from 2014–2020. We provide empirical evidence that OBRisk negatively affects FV. We further find substantial evidence that the benefits of independent directors’ financial expertise outweigh the agency costs of weak monitoring orchestrated by their overboardedness. Specifically, the marginal effect of independent directors’ financial expertise at the maximum level attenuates the effect of OBRisk on FV, indicating that high-level financial expertise is value-relevant. This study comes at an appropriate time when directorship regulation is a topical issue among sub-Saharan African regulators.

Busy board media as an effort to increase knowledge caries prevention of early childhood

Background: Oral and dental health is an important component of Health. Dental caries is common especially in children caused by sweet foods, such as chocolate, candy, and cakes, easily sticking to the teeth. To maintain the health of the teeth and mouth by providing counseling in the form of educational games (APE) such as busy board which provides a variety of activities arranged in one board, aims to keep children engaged and busy in the learning process. Objective: To describe the analysis of busy board media as an effort to increase knowledge of early childhood. Method : is descriptive with a total of 50 respondents using a total sampling. Type of data used is primary data obtained directly by observation using evaluation media busy board pre-test and post-test. The instrument used is busy board and check sheet. Results: The results of the study before the counseling with the evaluation of the busy board is good category as many as 41 ( 82%) respondents, knowledge with sufficient category as many as 8 (16%) respondents, and less knowledge as many as 1 (2%) respondents. After the extension of good category 50 (100%) there is no sufficient category and less (0%). Conclusion: There was an increase in knowledge after being given counseling on food to prevent caries and evaluation with a busy board by 18% and none of the respondents had less knowledge category

Impacts of corporate governance attributes on audit quality in emerging economies: The case of India

Purpose The present study examines the impact of corporate governance attributes on audit quality in the context of an emerging market, India. The study is based on data from 100 non-financial firms listed on the Bombay Stock Exchange randomly selected from the list of BSE 500 firms on 31 March 2021 for 2017–2021. Aim To measure audit quality using two input-based measures – audit fee and audit firm size (Big-4 or non-Big-4). Design/Methodology/Approach This study uses logistic regression and panel data regression models to investigate the impact of corporate governance variables on audit quality after controlling for some firm-specific variables. Furthermore, a generalised estimating equation model is used to check the robustness of the logistic regression model results. Main findings The results indicate that board independence, board gender diversity, multiple directorships, and audit committee independence positively correlate with audit quality. However, the board size, role duality, and promoter shareholding are negatively associated with the audit quality. Further, the quantile regression results indicate heterogeneous impacts of role duality and promoters’ shareholding on audit quality. Practical implications First, firms with the concentration of power in the hands of promoters directly or indirectly may engage Big-4 auditors to enhance AQ. Second, policymakers should take appropriate steps to enhance the gender quota as per international norms to improve the quality of financial reporting. Third, firms' should capitalise on the enhanced advisory capability of the directors having exposure and association with other companies. Novelty/Contribution The study enriches the existing literature by providing empirical evidence from an emerging nation characterised by the dominance of promoters’ shareholding, busy boards, and role duality.

Board Responsibility for Irresponsibility: The Link Between Board Structure and Corporate Scandals

Based on an international data set that comprises over 6,100 companies located in 44 countries in the years 2002–2018, this paper analyzes the relation between corporate scandals and board structures besides further firm-related, political, nation-level economic, and cultural variables. We identify board structure variables that are positively associated with a firm’s corporate scandals, namely high CSR efforts and busy board members. There are also variables that are negatively associated with this kind of behavior, namely qualified and skilled boards. No clear evidence can be determined from a board’s gender diversity, independent board members, and board size.

The timing of stock repurchases: Do well-connected CEOs help or harm?

Using a sample of daily repurchase transactions, we find that CEOs with extensive professional networks execute buybacks at higher prices relative to their less-connected peers. This finding survives a large battery of robustness tests and is unlikely to be the product of endogeneity biases. Monitoring by institutional investors, blockholders, and independent directors, as well as low levels of board busyness mitigate the detrimental effect of a well-connected CEO on repurchase timing. Moreover, better-connected CEOs are more associated with insider net sales around repurchase transactions. Overall, our evidence is consistent with CEO-shareholder agency conflict explanations and CEO power mechanisms.

Board Busyness and Firm Performance: An Emerging Market Perspective

Board Busyness and Firm Performance: An Emerging Market Perspective

Pengaruh Media Busy Board terhadap Perkembangan Motorik Halus Anak di TK Iqra’ Tunggul Hitam Padang

Fine motor skills are acquired through practice and education. Defined as precision movements that use small muscles or specific body parts. From observations made at Iqra' Kindergarten, it can be seen that children's fine motor development is still lacking. The aim of this research is to evaluate the extent to which busy board media can help kindergarten students at TK Iqra' ANGKAL Hitam Padang in developing their fine motor skills. This research stands out for its emphasis on quantitative elements and using an experimental research approach. The researchers used word and action assessments to collect data. To test the data, homogeneity and normality checks were carried out. The average score of the experimental class was 14.17, while the control group's score was 12.75, based on research findings before and after the test. The significance level of 0.05 is somewhat exceeded by the two-sided p value of 0.009. As a result, we can say that the difference between the experimental group and the control group is statistically significant. As a result, there were striking differences between the experimental group and the control group. Thus, it can be concluded that the null hypothesis (Ho) is refuted and the alternative hypothesis (Ha) is validated. The results showed that there were significant differences in the fine motor skills of experimental and control group children aged 5-6 years. This shows that the Media Busy Board is an effective way to help teenagers in this age range improve their fine motor skills.

Women on Family Business Boards Shun Layoffs

Women on Family Business Boards Shun Layoffs

Efisiensi Perusahaan: Apakah Busyness Dewan Komisaris Berkontribusi?

The busyness of the board members has become a hot topic since this can positively and negatively impact corporate governance outcomes, such as company efficiency. However, a limited study investigates the role of supervisory board busyness and company efficiency using Indonesian data. Therefore, this study aims to determine the relationship between supervisory board busyness and company efficiency. In addition, this study also analyzes the effect of the supervisory board experience and size on firm efficiency. Forty-two publicly listed transportation companies are employed as research samples. Secondary data from the annual and financial reports are used, and multivariate regression analysis is applied. This study found that supervisory board experience is positively related to company efficiency (α=5%). Hence, the company's efficiency is achieved if the supervisory board has more experience. Besides, this study also found that company profitability, leverage, and size significantly related to company efficiency.

How Much Does Nonprofit Board Governance Matter? Role of Interlocking Directorates, Executive Power, and Women on Boards in Executive Compensation

This article develops an executive compensation model focusing on board governance structure in nonprofit organizations. Drawn from a panel of nonprofits in three Upstate New York cities from 1998 to 2014, the analysis shows that chief executive officers (CEOs) compensation is positively associated with interlocking directorships of CEOs and boards of directors. The results reveal that the executives enjoy more compensation when they serve on the boards of other nonprofit organizations, hold more power in a leadership position with CEO duality and longer tenure, and when the organizations are led by busy boards where a majority of members in the boardroom sit on the boards of multiple other nonprofits. The analysis further shows that financial rewards offered to the executives are contingent upon women’s representation in the boardroom. These findings suggest board governance composition plays a critical role in executive compensation. Implications for practice and future research are discussed.

Corporate Board Characteristics and Performance of Non-Financial Firms in Nigeria

This study investigates if there is any relationship between certain corporate board characteristics and financial performance of non-financial listed firms in Nigeria. It uses secondarily sourced panel data over the period from 2005 to 2020 of 76 such firms listed on the floor of the Nigerian Exchange Group (NXG). The generalized method of moments (GMM) results reveal that while board size(BS), board compensation(BC), board meetings(BM) and board members with military experience(BME) are positively significant with performance; board independence(BI), board gender diversity(BGD), board national diversity(BND), board tribal diversity(BTD), board busyness(BB), board members’ education level(BE) and board foreign directors(BFD) are negatively significant with performance but board shareholding or ownership(BSH) is insignificant. All the control variables (leverage, market–to-book ratio, firm size, year fixed effect dummy as well as the industry sector fixed effect dummy) are statistically significant. This study concludes with some recommendations.

A global review of the literature on and proxies of busy boards and audit committees

PurposeThis study comprehensively reviews the global literature on busy boards and audit committees.Design/methodology/approachSix eight articles on busy boards and audit committees from prominent accounting journals are reviewed and analyzed under the “reputation” and “busyness” premise.FindingsMost studies advocating the “reputation” hypothesis have the consensus that busy directors have their benefits (knowledge spillovers), particularly regarding sharing their in-depth knowledge, experiences and expertise. This phenomenon is pronounced for younger and IPO firms, which have high advising and financing needs. From the “busyness” perspective, busy directors are too overboard in carrying out their duty effectively and responsibly.Practical implicationsThis study identifies future research avenues on busy boards/audit committees and suggests that policymakers and regulators should limit the number of board appointments.Originality/valueThis is the first study to extensively amalgamate research on busy directors and audit committees. It reveals the various proxies used to measure the busyness of board and audit committee members and the consequences of busyness.

Board Attributes and Firm Performance of Non-Financial Listed Firms in Pakistan: Role of Ownership Structure

Purpose: This research intends to explore the impact of board attributes on the performance of non-financial listed firms in Pakistan and how ownership structure plays a moderating role in shaping this link. This research posits that institutional shareholders possess motivations to enhance board governance due to their advanced financial knowledge and managerial expertise.
 Methodology: Four attributes of the board (board size, women on board, board independence, and board busyness) were studied to see the impact. The firm performance was measured using Tobin Q. The present study employs 80 non-financial listed firms in its sample, and the multiple regression approach was used to inspect a 12-year panel dataset.
 Findings: The results discovered that board size has a positive and significant influence on the performance of companies. However, board independence and women on board have a significant negative effect on firm performance. Moreover, the outcomes of this study indicate that the ownership structure acts as a moderator, influencing the correlation between board attributes (board size and board busyness) with non-financial listed firms’ performance in Pakistan.
 Implications: The current study provides useful insight into this relationship to the policymakers, government, researchers, and other stakeholders. Therefore, based on this study's findings, non-financial firms listed in Pakistan should consider adopting institutional shareholding as a strategy to strengthen their capacity to secure long-term financing to support their growth initiatives.

Busy board and corporate debt maturity structure

Prior literature has examined the effectiveness of the busy board by evaluating two competing hypotheses: quality point of view and busyness point of view. In response to these views, we argue and validate social identity theory, in the sense that, to maintain their entrenchment, managers of firms with busy boards tend to avoid monitoring from short-term debtholders by reducing short-term debt financing. The magnitude of the negative effects increases when busy board members are independent directors compared to non-independent directors. The negative effect of a busy board is more pronounced in firms with lower CEOs' firm-related wealth, less experienced directors, and more foreign directors on the board. Further analysis shows that managers of firms with busy boards also increase cash holdings, decrease capital investment, and increase their entrenchment. Results are robust to alternative (information asymmetry) hypotheses, propensity score matching, entropy-balanced approach, and instrumental variable approach. We interpret our results as managers' ex-ante preclusion of external monitoring from short-term debtholders.

Enhancing Critical Thinking in Early Childhood through STEAM-Oriented Busy Board Media: A Development Study

This study explores the development and effectiveness of STEAM-based busy board media in enhancing critical thinking skills among children aged 5-6 years. Using the ADDIE model, we created a dual-sided active board integrating science, technology, engineering, arts, and mathematics elements. This research examines the effectiveness of STEAM-based busy board media in improving critical thinking skills in 5-6-year-old children. The study utilized the ADDIE model to create a dual-sided board incorporating science, technology, engineering, arts, and mathematics elements. Conducted in Sidodadi Village kindergartens, the methodology included expert validations, trials, and pretest-posttest evaluations. The initial analysis highlighted the absence of specific media to foster critical thinking in this age group. The busy board was deemed feasible, appropriate, and safe by experts. Significant enhancements in children's critical thinking were observed, with post-test results indicating considerable progress. Statistical analysis using SPSS 22 confirmed the busy board's positive impact, emphasizing STEAM's role in early childhood education. The box panel received high effectiveness ratings in expert assessments (85.3%, 76.1%, 87.1%, and 67.7%). The hypothesis test significantly affected critical call thinking development (0.000 < 0.05). Both expert and user evaluations attested to its effectiveness, with trials showing notable improvements in early childhood critical thinking. However, the study was limited by its geographical focus and lacked long-term impact assessments. These results support the inclusion of sensory tools in early education and call for further investigation into their more comprehensive and action-oriented long-term benefits.

Investigating the Nexus between Corporate Governance and Firm Performance in India: Evidence from COVID-19

The COVID-19 pandemic has had a dreadful influence on both economic activities and human life, in view of which management has to play a strategic role to focus on effective board leadership in order to optimize firm performance. The present study analyses the role of corporate governance practices in determining firm performance during the pandemic. A total of 151 non-financial companies from 11 diversified industries representing the NIFTY200 index for two years, 2019–2020 (pre-COVID-19) and 2020–2021 (duringCOVID-19), were selected. Paired sample t-tests, panel data regression, and one-way ANOVA were used for the analysis. The findings confirm that there is a significant difference between some corporate governance practices (board size, board independence, board’s female proportion, board attendance, and audit committee size) as well as financial performance (Tobin’s Q) before and during the COVID-19 period. The regression results of the full sample show that only board busyness has a positive and significant impact on ROA and Tobin’s Q. However, after splitting the sample year-wise, board size and audit committee meetings positively affected ROA during COVID-19. On the other hand, board independence had a negative influence. Female directors and audit committee meetings positively affected ROA in the pre-COVID-19 period, while board busyness had a negative influence. The results of one-way ANOVA show a substantial difference in the financial performance among industries.

Design concept analysis of educational toys to stimulate early childhood fine motor development

The early years of a child's life are widely acknowledged as a critical period for growth and development, encompassing significant advancements in their physical, cognitive, and emotional aspects. While development encompasses many different areas, fine motor skills are the cornerstone of a child's capacity to interact with their environment and attain significant achievements. This research discusses educational toys to stimulate fine motor development in early childhood. This research uses the theory of Palgunadi about design aspects, which are functional, aesthetic, and security of the product. This research aims to produce several alternative component designs that can be placed on a busy board to stimulate children's fine motor development. This research uses qualitative methods with data collection techniques through observation, interviews, and literature studies. The design method used in this research is SCAMPER. The results of this research are several alternative components of educational toy design that can be implemented on busy boards in order to optimize early childhood fine motor development. This research presents a comprehensive analysis of the design concept that underlies an educational toy to stimulate fine motor development in early children. The proposed toy provides a distinctive and captivating learning experience that effectively targets multiple aspects of fine motor skill development. This pioneering design contributes to the burgeoning collection of educational toys that are intentionally fashioned to foster skill-building in early children.

Financial statement fraud litigation, material weaknesses, and board characteristics

PurposeThe purpose of this study is to investigate whether the likelihood that a firm will face financial statement fraud litigation is affected by the disclosure of internal control material weaknesses (MW) and the “busyness” of a firm’s board of directors.Design/methodology/approachThe results are derived from logistic regression models and data are collected from the Audit Analytics database augmented by data from CompuStat, the Stanford Law School website and the SEC Accounting and Auditing Enforcement Releases. The authors also test for endogeneity with a propensity score matching procedure.FindingsThe authors find that an MW report is strongly associated with the likelihood of subsequent financial statement fraud litigation, and that the influence of entity-level MW on litigation likelihood is stronger than that of account-level MW. Moreover, the number of outside board directorships significantly increases the influence of entity-level MW on the likelihood of litigation, indicating that board of directors’ busyness significantly increases the risk of litigation.Originality/valuePrevious research notes that board members holding multiple directorships cannot effectively oversee the financial reporting process and, thus, are associated with poorer governance. The authors extend this implication of board busyness to the association between disclosure of MW type and the filing of subsequent litigation alleging financial statement fraud. To the best of the authors’ knowledge, no other research has done so.

Effects of board characteristics on information asymmetry: Evidence from the alternative investment market

This study aimed to investigate the effect of board characteristics on information asymmetry as well as examining whether the disclosure environment moderates the association between board structure and the information asymmetry of listed firms in the UK. We primarily focus on six characteristics of board composition (board size, board independence, board financial expertise, board busyness, CEO duality, and board gender diversity) and their impact on the bid–ask spread (employed as a proxy of information asymmetry). This study used the ordinary least squares (OLS) model to examine these associations. Moreover, we used system GMM and lag estimation models to test for endogeneity problems. Using a sample of 5950 observations representing the non-financial firms listed on the Alternative Investment Market (AIM) for 10 years from 2010 to 2019, we found a negative and significant relationship between board size; board independence; and female directors and information asymmetry. However, board busyness and CEO duality are positively related to information asymmetry. Furthermore, we demonstrate that information disclosure moderates the relationship between board characteristics and information asymmetry; that is, board size, independent directors, and female directors mitigate information asymmetry by improving the level of information disclosure. By contrast, busy directors and CEO duality increase the problem of information asymmetry by reducing firms’ information disclosure. The results of this study have implications for UK regulators, firm boards of directors, and firm stakeholders.