Director Attendance Around the World

• In Event: International Accounting

Abstract

This study examines the variation in attendance practices of corporate directors around the world, specifically investigating the relationships between country-level shareholder rights, director liability, transport and communications infrastructure, and director attendance. Using a sample of 4,344 directorships from 33 countries, the results indicate that director attendance is significantly lower in emerging markets. Analysis of country-level factors indicates that director attendance around the world is positively related to the extent of shareholder rights and the quality of telecommunications infrastructure. However, higher director liability in the form of ease of lawsuits against directors is associated with lower director attendance. For policymakers and shareholders, the findings of this study suggest that improvements in shareholder rights and telecommunications infrastructure are associated with better director attendance practices. However, regulators need to be wary of increasing director liability, as greater ease of lawsuits against directors is associated with lower director attendance. At the firm level, smaller boards, boards that hold fewer meetings and higher director compensation are all associated with better director attendance around the world.

Author

• John Nowland, Illinois State University