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Does the board’s on-site decision inhibit over-investment

It is an effective expansion of the research on the Board of Directors to do the research based on different board meeting forms and their effects sampling A-share companies listed in 2007–2017, the article empirically tests the impact of the times of board meetings, the proportion of on-site board...

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Autores principales: Shi, Xiaofei, Zhao, Fei, Xu, Long, Bian, Na, Wang, Fengfei
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Public Library of Science 2021
Materias:
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8341494/
https://www.ncbi.nlm.nih.gov/pubmed/34351945
http://dx.doi.org/10.1371/journal.pone.0255453
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author Shi, Xiaofei
Zhao, Fei
Xu, Long
Bian, Na
Wang, Fengfei
author_facet Shi, Xiaofei
Zhao, Fei
Xu, Long
Bian, Na
Wang, Fengfei
author_sort Shi, Xiaofei
collection PubMed
description It is an effective expansion of the research on the Board of Directors to do the research based on different board meeting forms and their effects sampling A-share companies listed in 2007–2017, the article empirically tests the impact of the times of board meetings, the proportion of on-site board meetings on listed companies’ over-investment. Consequently and significantly, the times of board meetings is positively correlated with over-investment, while the proportion of on-site board meetings is negatively correlated with over-investment. That is, the on-site meeting for the Board decision-making will better inhibit the enterprises’ over-investment behaviors. Further research shows that when there is a controlling shareholder in the company or in a dual position, the on-site board meeting no longer has a significant inhibitory effect on over-investment. By research on the independence of the Board of Directors, it is found that when selecting on-site board decision-making, the existence of independent directors has an over-investment suppression effect, and the higher the proportion of independent directors, the more obvious the inhibitory effect is. The samples are divided into state-owned enterprises and private enterprises, the study found that when choosing on-site board meetings, state-owned enterprises have a greater inhibitory effect on over-investment than private enterprises. The findings of this study will enrich the research of the board meeting and provide a new testing method for the relevant research of the Board of Directors.
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spelling pubmed-83414942021-08-06 Does the board’s on-site decision inhibit over-investment Shi, Xiaofei Zhao, Fei Xu, Long Bian, Na Wang, Fengfei PLoS One Research Article It is an effective expansion of the research on the Board of Directors to do the research based on different board meeting forms and their effects sampling A-share companies listed in 2007–2017, the article empirically tests the impact of the times of board meetings, the proportion of on-site board meetings on listed companies’ over-investment. Consequently and significantly, the times of board meetings is positively correlated with over-investment, while the proportion of on-site board meetings is negatively correlated with over-investment. That is, the on-site meeting for the Board decision-making will better inhibit the enterprises’ over-investment behaviors. Further research shows that when there is a controlling shareholder in the company or in a dual position, the on-site board meeting no longer has a significant inhibitory effect on over-investment. By research on the independence of the Board of Directors, it is found that when selecting on-site board decision-making, the existence of independent directors has an over-investment suppression effect, and the higher the proportion of independent directors, the more obvious the inhibitory effect is. The samples are divided into state-owned enterprises and private enterprises, the study found that when choosing on-site board meetings, state-owned enterprises have a greater inhibitory effect on over-investment than private enterprises. The findings of this study will enrich the research of the board meeting and provide a new testing method for the relevant research of the Board of Directors. Public Library of Science 2021-08-05 /pmc/articles/PMC8341494/ /pubmed/34351945 http://dx.doi.org/10.1371/journal.pone.0255453 Text en © 2021 Shi et al https://creativecommons.org/licenses/by/4.0/This is an open access article distributed under the terms of the Creative Commons Attribution License (https://creativecommons.org/licenses/by/4.0/) , which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
spellingShingle Research Article
Shi, Xiaofei
Zhao, Fei
Xu, Long
Bian, Na
Wang, Fengfei
Does the board’s on-site decision inhibit over-investment
title Does the board’s on-site decision inhibit over-investment
title_full Does the board’s on-site decision inhibit over-investment
title_fullStr Does the board’s on-site decision inhibit over-investment
title_full_unstemmed Does the board’s on-site decision inhibit over-investment
title_short Does the board’s on-site decision inhibit over-investment
title_sort does the board’s on-site decision inhibit over-investment
topic Research Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8341494/
https://www.ncbi.nlm.nih.gov/pubmed/34351945
http://dx.doi.org/10.1371/journal.pone.0255453
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