Does directors’ experience positively moderate the impact of board busyness on firm efficiency? evidence from Asia-Pacific

Purpose: The purpose of this paper is to examine the impact of board busyness on firm efficiency in the context of directors’ experience, specifically on directors’ experience that moderates the impact of board busyness on firm efficiency. Directors’ experience is examined by exploring both depth (b...

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Main Authors: Tan, Khar Mang, Amin Noordin, Bany Ariffin, Kamarudin, Fakarudin, Abdul Rahim, Norhuda
Format: Article
Language:English
Published: Emerald 2019
Online Access:http://psasir.upm.edu.my/id/eprint/79431/
http://psasir.upm.edu.my/id/eprint/79431/1/Does%20directors%E2%80%99%20experience%20positively%20moderate%20.pdf
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author Tan, Khar Mang
Amin Noordin, Bany Ariffin
Kamarudin, Fakarudin
Abdul Rahim, Norhuda
author_facet Tan, Khar Mang
Amin Noordin, Bany Ariffin
Kamarudin, Fakarudin
Abdul Rahim, Norhuda
author_sort Tan, Khar Mang
building UPM Institutional Repository
collection Online Access
description Purpose: The purpose of this paper is to examine the impact of board busyness on firm efficiency in the context of directors’ experience, specifically on directors’ experience that moderates the impact of board busyness on firm efficiency. Directors’ experience is examined by exploring both depth (board tenure) and breadth (number of former listed directorship) of experience. Design/methodology/approach: This paper employs data envelopment analysis (DEA) to examine firm efficiency. Then, fixed effect panel regression analysis is applied to test the direct and moderating effect based on a sample of firms in the selected Asia-Pacific countries. Findings: Significant positive evidence for the moderating effect of directors’ experience on the impact of board busyness on firm efficiency is documented. Practical implications: Findings are essential for managers, country policymakers and potential investors as inputs to improve the current company practices, laws and policies through the notion that directors’ experience does enable the busy board to contribute to improved firm efficiency. Originality/value: This paper contributes to the debated perspectives on board busyness by providing initial evidence that directors’ experience positively moderates the impact of board busyness on firm efficiency.
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institution Universiti Putra Malaysia
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spelling upm-794312021-04-06T10:52:02Z http://psasir.upm.edu.my/id/eprint/79431/ Does directors’ experience positively moderate the impact of board busyness on firm efficiency? evidence from Asia-Pacific Tan, Khar Mang Amin Noordin, Bany Ariffin Kamarudin, Fakarudin Abdul Rahim, Norhuda Purpose: The purpose of this paper is to examine the impact of board busyness on firm efficiency in the context of directors’ experience, specifically on directors’ experience that moderates the impact of board busyness on firm efficiency. Directors’ experience is examined by exploring both depth (board tenure) and breadth (number of former listed directorship) of experience. Design/methodology/approach: This paper employs data envelopment analysis (DEA) to examine firm efficiency. Then, fixed effect panel regression analysis is applied to test the direct and moderating effect based on a sample of firms in the selected Asia-Pacific countries. Findings: Significant positive evidence for the moderating effect of directors’ experience on the impact of board busyness on firm efficiency is documented. Practical implications: Findings are essential for managers, country policymakers and potential investors as inputs to improve the current company practices, laws and policies through the notion that directors’ experience does enable the busy board to contribute to improved firm efficiency. Originality/value: This paper contributes to the debated perspectives on board busyness by providing initial evidence that directors’ experience positively moderates the impact of board busyness on firm efficiency. Emerald 2019 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/79431/1/Does%20directors%E2%80%99%20experience%20positively%20moderate%20.pdf Tan, Khar Mang and Amin Noordin, Bany Ariffin and Kamarudin, Fakarudin and Abdul Rahim, Norhuda (2019) Does directors’ experience positively moderate the impact of board busyness on firm efficiency? evidence from Asia-Pacific. Asia-Pacific Journal of Business Administration, 11 (3). pp. 232-250. ISSN 1757-4323 https://www.emerald.com/insight/content/doi/10.1108/APJBA-01-2019-0008/full/html 10.1108/APJBA-01-2019-0008
spellingShingle Tan, Khar Mang
Amin Noordin, Bany Ariffin
Kamarudin, Fakarudin
Abdul Rahim, Norhuda
Does directors’ experience positively moderate the impact of board busyness on firm efficiency? evidence from Asia-Pacific
title Does directors’ experience positively moderate the impact of board busyness on firm efficiency? evidence from Asia-Pacific
title_full Does directors’ experience positively moderate the impact of board busyness on firm efficiency? evidence from Asia-Pacific
title_fullStr Does directors’ experience positively moderate the impact of board busyness on firm efficiency? evidence from Asia-Pacific
title_full_unstemmed Does directors’ experience positively moderate the impact of board busyness on firm efficiency? evidence from Asia-Pacific
title_short Does directors’ experience positively moderate the impact of board busyness on firm efficiency? evidence from Asia-Pacific
title_sort does directors’ experience positively moderate the impact of board busyness on firm efficiency? evidence from asia-pacific
url http://psasir.upm.edu.my/id/eprint/79431/
http://psasir.upm.edu.my/id/eprint/79431/
http://psasir.upm.edu.my/id/eprint/79431/
http://psasir.upm.edu.my/id/eprint/79431/1/Does%20directors%E2%80%99%20experience%20positively%20moderate%20.pdf