2017
DOI: 10.1093/ajcl/avx023
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Independent Directors in Singapore: Puzzling Compliance Requiring Explanation†

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Cited by 49 publications
(8 citation statements)
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“…Several studies on Asian and western firms show that family firms are associated with higher earnings quality, disclosure and performance (Ali et al , 2007; Anderson and Reeb, 2004; Corbetta and Salvato, 2004; Hashim, 2009; Wan-Hussin, 2009; Wang, 2006; Yeh et al , 2001). Evidence found by Puchniak and Lan (2015) on firms in Singapore and Siregar and Utama (2008) on firms in Indonesia supports the notion that family firms are focused on gaining market recognition of the business operations of a firm and avoiding being categorized as firms that practice earnings management.…”
Section: Introductionmentioning
confidence: 76%
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“…Several studies on Asian and western firms show that family firms are associated with higher earnings quality, disclosure and performance (Ali et al , 2007; Anderson and Reeb, 2004; Corbetta and Salvato, 2004; Hashim, 2009; Wan-Hussin, 2009; Wang, 2006; Yeh et al , 2001). Evidence found by Puchniak and Lan (2015) on firms in Singapore and Siregar and Utama (2008) on firms in Indonesia supports the notion that family firms are focused on gaining market recognition of the business operations of a firm and avoiding being categorized as firms that practice earnings management.…”
Section: Introductionmentioning
confidence: 76%
“…Independent directors in family firms form a close relationship with family owners to serve as effective mediators who resolve disputes between family members and minority shareholders. In addition, they act as trusted advisors to the firm while engaging in activities to attract foreign capital and to signal their compliance with international corporate governance standards (Puchniak and Lan, 2015). Accordingly, Jaggi et al (2009) found that, after controlling for family ownership, independent directors are more effective in controlling earnings management.…”
Section: Managerial Hegemony Alignment and Entrenchment Effect Theorymentioning
confidence: 99%
“…Hence, several countries (including the UK) modified the American definition of independent directors to require independence from controlling shareholders (in addition to management) so as to reflect the underlying realities in controlled companies that takes account of the agency problems between the controlling shareholders and the minority. Puchniak and Lan (2017) find in their study that a majority of the companies that have adopted codes (55.2%) define independent directors with reference to controlling shareholders as well. They then go on to discuss the curious case of Singapore where the American definition held sway until 2015 even though Singapore in a jurisdiction that is populated by companies with concentrated shareholding, which they argue 'was the product of strategic regulatory design (not ignorance) and was surprisingly effective'.…”
Section: Board Independence: a Key Thrust Of Corporate Governance Codesmentioning
confidence: 97%
“…What is interesting is that all codes of corporate governance deal with principles of board composition and independence (Zattoni and Cuomo, 2008). In their survey through hand-collected data of 245 codes, Puchniak and Lan (2017) find that all of the codes had some provisions relating to independent directors, thereby demonstrating the ubiquity of the concept and its popularization through corporate governance codes. Even an economy like Japan that has hitherto demonstrated resistance to the concept of board independence incorporated the roles and responsibilities of independent directors in its round of significant corporate governance reforms in 2015 (Curtiss, 2017; Tokyo Stock Exchange, 2015).…”
Section: Shareholder Empowerment and The Monitoring Boardmentioning
confidence: 99%
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