Publication Type

Journal Article

Version

publishedVersion

Publication Date

2-2019

Abstract

This article examines the impact of a one-size-fits-all corporate governance code on smaller listed firms, which should have fewer resources to hire more qualified independent directors for their boards and board committees. After examining data from a sample of companies listed in Hong Kong and Singapore, we find some limited support for these resources-based arguments. While smaller firms do not necessarily have a lower proportion of board members who are independent directors, some evidence suggests that smaller firms do pay less to independent directors and that these directors have to serve on multiple board committees. Although many larger firms also share the problem of overloading their independent directors, the ability to find and attract good candidates certainly differs with the availability of resources. Therefore, this article suggests that policymakers rethink the merit of raising board independence standards and increasing board committee requirements, and find ways to assist smaller firms to hire good (and less expensive) independent directors.

Keywords

corporate governance, Singapore, Hong Kong, small companies

Discipline

Asian Studies | Business Organizations Law | Corporate Finance

Research Areas

Asian and Comparative Legal Systems

Publication

Berkeley Business Law Journal

Volume

15

Issue

2

First Page

337

Last Page

364

ISSN

1548-7067

Publisher

University of California, Berkeley School of Law

Copyright Owner and License

Authors

Additional URL

https://lawcat.berkeley.edu/record/1128870

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