Outside Directorships, Firm Life Cycle, Corporate Financial Decisions and Firm Performance

We investigate whether directors with multiple outside board directorships are related to corporate financial strategy across firm life cycle stages. Using a large sample of firms from the Gulf Cooperation Council (GCC) countries, we find that when the number of directors with multiple board seats i...

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Main Authors: Alqahtani, Jubran, Duong, Lien, Taylor, Grantley, Eulaiwi, Baban
Other Authors: Batten, Jonathan
Format: Journal Article
Published: Elsevier 2021
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/85094
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author Alqahtani, Jubran
Duong, Lien
Taylor, Grantley
Eulaiwi, Baban
author2 Batten, Jonathan
author_facet Batten, Jonathan
Alqahtani, Jubran
Duong, Lien
Taylor, Grantley
Eulaiwi, Baban
author_sort Alqahtani, Jubran
building Curtin Institutional Repository
collection Online Access
description We investigate whether directors with multiple outside board directorships are related to corporate financial strategy across firm life cycle stages. Using a large sample of firms from the Gulf Cooperation Council (GCC) countries, we find that when the number of directors with multiple board seats increases, firms' level of cash holdings rises, capital expenditure declines, selling, general and administrative (SG&A) expenses increase, and firm performance decreases. We further demonstrate how the relationship varies across different stages of their life cycle. Our findings have significant implications for policy makers, regulators and stockholders in GCC countries and in other emerging markets.
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institution Curtin University Malaysia
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publishDate 2021
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spelling curtin-20.500.11937-850942023-05-03T04:04:38Z Outside Directorships, Firm Life Cycle, Corporate Financial Decisions and Firm Performance Alqahtani, Jubran Duong, Lien Taylor, Grantley Eulaiwi, Baban Batten, Jonathan 1501 - Accounting, Auditing and Accountability We investigate whether directors with multiple outside board directorships are related to corporate financial strategy across firm life cycle stages. Using a large sample of firms from the Gulf Cooperation Council (GCC) countries, we find that when the number of directors with multiple board seats increases, firms' level of cash holdings rises, capital expenditure declines, selling, general and administrative (SG&A) expenses increase, and firm performance decreases. We further demonstrate how the relationship varies across different stages of their life cycle. Our findings have significant implications for policy makers, regulators and stockholders in GCC countries and in other emerging markets. 2021 Journal Article http://hdl.handle.net/20.500.11937/85094 10.1016/j.ememar.2021.100820 http://creativecommons.org/licenses/by-nc-nd/4.0/ Elsevier fulltext
spellingShingle 1501 - Accounting, Auditing and Accountability
Alqahtani, Jubran
Duong, Lien
Taylor, Grantley
Eulaiwi, Baban
Outside Directorships, Firm Life Cycle, Corporate Financial Decisions and Firm Performance
title Outside Directorships, Firm Life Cycle, Corporate Financial Decisions and Firm Performance
title_full Outside Directorships, Firm Life Cycle, Corporate Financial Decisions and Firm Performance
title_fullStr Outside Directorships, Firm Life Cycle, Corporate Financial Decisions and Firm Performance
title_full_unstemmed Outside Directorships, Firm Life Cycle, Corporate Financial Decisions and Firm Performance
title_short Outside Directorships, Firm Life Cycle, Corporate Financial Decisions and Firm Performance
title_sort outside directorships, firm life cycle, corporate financial decisions and firm performance
topic 1501 - Accounting, Auditing and Accountability
url http://hdl.handle.net/20.500.11937/85094