A global review of the literature on and proxies of busy boards and audit committees
Abstract
Purpose
This study comprehensively reviews the global literature on busy boards and audit committees.
Design/methodology/approach
Six eight articles on busy boards and audit committees from prominent accounting journals are reviewed and analyzed under the “reputation” and “busyness” premise.
Findings
Most studies advocating the “reputation” hypothesis have the consensus that busy directors have their benefits (knowledge spillovers), particularly regarding sharing their in-depth knowledge, experiences and expertise. This phenomenon is pronounced for younger and IPO firms, which have high advising and financing needs. From the “busyness” perspective, busy directors are too overboard in carrying out their duty effectively and responsibly.
Practical implications
This study identifies future research avenues on busy boards/audit committees and suggests that policymakers and regulators should limit the number of board appointments.
Originality/value
This is the first study to extensively amalgamate research on busy directors and audit committees. It reveals the various proxies used to measure the busyness of board and audit committee members and the consequences of busyness.
Keywords
Acknowledgements
The author gratefully acknowledged the contributions from the anonymous referees and the editor, Professor Nan Zhou for their insightful comments and suggestions.
Citation
Tham, Y.H. (2023), "A global review of the literature on and proxies of busy boards and audit committees", Asian Review of Accounting, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/ARA-12-2022-0301
Publisher
:Emerald Publishing Limited
Copyright © 2023, Emerald Publishing Limited