Board tenure: A review

Sun, Xuan Sean; Bhuiyan, Md. Borhan Uddin

doi:10.1002/jcaf.22464

Cited by 23 publications

(16 citation statements)

References 54 publications

(200 reference statements)

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“…The increase in organizational psychological capital in family firms with strong board tenure highlights the need to maintain and develop internal social network ties. With this, we also contribute to recent research on board tenure (Sun and Bhuiyan 2020 ) and board compositions in family firms (Le Breton-Miller and Miller 2013 ; Wilson et al. 2013 ).…”

Section: Discussionmentioning

confidence: 78%

“… 2013 ). Longer board tenure fosters board stability, which, in turn, increases familiarity and decreases conflicts in family firms (Sun and Bhuiyan 2020 ). Moreover, board tenure promotes smooth information flows and knowledge diffusion and transformation across the organization (Nahapiet and Ghoshal 1998 ).…”

Section: Conceptual Background and Hypothesesmentioning

confidence: 99%

“…For instance, board members with longer tenure strengthen social ties among employees, foster employees’ emotional attachment to the family firm, and increase levels of familiarity (Bendig et al. 2020 ; Le Breton-Miller and Miller 2013 ; Sun and Bhuiyan 2020 ; Wilson et al. 2013 ).…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Organizational Psychological Capital in Family Firms: the Role of Family Firm Heterogeneity

Fischer‐Kreer

Greven

Eichwald

et al. 2021

Schmalenbach J Bus Res

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Organizational psychological capital—comprising hope, confidence, resilience, and optimism—is a vital resource for family firms in times of stress. Surprisingly, whether and how family firm idiosyncrasies impact organizational psychological capital remains unclear. Considering the theoretical paradigm of socio-emotional wealth, we investigate two important family firm characteristics as antecedents of organizational psychological capital: the family involvement in the top management team and the generation of the family firm. We further propose that these relationships are moderated by a board of directors’ tenure. Based on an empirical analysis of listed U.S. family firms, our results confirm a negative relationship between family membership in the top management team and organizational psychological capital. In addition, we find that descendant family firms exhibit higher levels of organizational psychological capital than founder family firms. The results also confirm the moderating role of board tenure. This study works toward a more holistic view of family firm heterogeneity and specifically how different types of family involvement shape a firm’s positive strategic resources.

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Section: Discussionmentioning

confidence: 78%

Section: Conceptual Background and Hypothesesmentioning

confidence: 99%

See 1 more Smart Citation

Organizational Psychological Capital in Family Firms: the Role of Family Firm Heterogeneity

Fischer‐Kreer

Greven

Eichwald

et al. 2021

Schmalenbach J Bus Res

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“…The BoD is essential to the internal corporate governance structure, and its effectiveness is fundamental to corporate decision-making, e.g., [9]. A BoD is in charge of giving managers guidance on operational and financial issues and overseeing their actions to prevent bad or incorrect executive decisions [5]. In financial reporting, managers make the decisions, but the BoD has the authority to oversee and approve these decisions.…”

Section: Literature Reviewmentioning

confidence: 99%

“…[4] proved that BoD's turnover is not an effective strategy to weaken the relationship between restatements and audit fees. These studies indicate that the compositional, independent, and demographical characteristics of board members, as well as the availability of financial expertise, can reduce the incidence of agency problems within corporations [5].…”

mentioning

confidence: 92%

Board Characteristics and Company Performance: A Case Study for the U.S.

Riele¹,

Γεωργακόπουλος²,

Toudas³

et al. 2022

JEFMS

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This research aims to investigate corporate board structures and compositions, as well as their interrelationships. An empirical analysis on a sample consisting of 6,962 public traded U.S. corporations was conducted and the "isolation" consequences of board characteristics such as independence, financial expertise, and tenure on a company's earnings quality were examined. Furthermore, it was investigated whether and to what extent the tenure of outside directors influences the "isolation" effects of financial expertise and independence on earnings quality. The Modified Jones model was used to generate discretionary accruals, which were subsequently used to generate accrual-based earnings management. Firms with a more independent board and a higher proportion of outside directors with financial experience are found to have no effect on the degree of accrual-based earnings management. Outside directors' average tenure, on the other hand, has a negative and significant impact on earnings management. The study demonstrates that the average tenure of outside directors affects their independence as well as their financial expertise. Both have a statistically significant positive influence on accrual-based earnings management. This indicates that, even if outside directors are independent and there is at least one outside member with financial expertise on the board, the effectiveness of their monitoring decreases over time. In this study, the quality of earnings is examined using accrual-based earnings management models. The influence of these board qualities on real earnings management, however, has not been studied. As the usage of real earnings management has expanded in the post-SOX era, the utilization of these models is intriguing for future study pertaining to the effect of these characteristics. Furthermore, this study utilized and analyzed only a sample of large public U.S. enterprises, which are larger companies. Due to the SOX requirements to which these larger organizations are subject, this might contribute to a lack of diversity in the board makeup of these companies. This may have an effect on the regression findings by displaying low or non-significant effects. Future research may find it interesting to determine if there are differences between the effects of these governance qualities on earnings management for smaller and larger companies. Based on the findings, it is possible to conclude that when evaluating a firm's profits quality, it is critical to evaluate both the structure and makeup of the board, as well as the individual features of the outside members, such as their tenure. This study adds to the expanding corpus of research on the impact of board characteristics on corporate performance. It focuses on corporations situated in the United States, where corporate governance is a hotly debated topic, particularly after the enactment of SOX. It not only looks at the effect of these characteristics on earnings quality in "isolation", but it also responds to recent calls for researchers to look at the interaction of various board traits. It examines whether and to what extent outside directors' tenure influences the "isolation" consequences of financial expertise and independence on earnings management.

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The impact of longer audit committee chair tenure and board tenure on the level of sustainability disclosure: The moderating role of firm size

Alodat,

Nobanee,

Salleh

et al. 2023

Bus Strat Dev

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The present research endeavors to examine the moderating effect of firm size on the relationship between the tenure of the audit committee chair and the board of directors with sustainability disclosure. Data from 592 non‐financial firms listed on the ASE from 2014 to 2021 were analyzed. The findings indicated that a longer tenure of a board of directors leads to increased sustainability disclosure, and firm size positively moderates this relationship. Moreover, the research outcomes indicated that the audit committee chair tenure had a positive yet non‐significant correlation with sustainability disclosure, with no moderating effect of firm size on this relationship. This study provides valuable insights for stakeholders, including investors, managers, and regulators, particularly in developing economies, by demonstrating the influence of corporate governance (CG) on sustainable development. The examination of firm size as a moderating factor offers a unique contribution to the existing literature, thus providing a deeper understanding of the indirect impact of CG on sustainability reporting.

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Board tenure: A review

Cited by 23 publications

References 54 publications

Organizational Psychological Capital in Family Firms: the Role of Family Firm Heterogeneity

Organizational Psychological Capital in Family Firms: the Role of Family Firm Heterogeneity

Board Characteristics and Company Performance: A Case Study for the U.S.

The impact of longer audit committee chair tenure and board tenure on the level of sustainability disclosure: The moderating role of firm size

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