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2022 | Book

Fundamentals of Board Busyness and Corporate Governance

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About this book

This book delivers the essential concepts and theoretical perspectives of corporate governance and board busyness. It uses the unique context of a dual banking system to capture the potential effects of such aspects on corporate outcomes. Board busyness refers to a board with a substantial proportion of “busy” members who hold multiple directorships. In most cases, directors are “over-boarded,” which means that they hold an excessive number of seats across different boards. The busyness of individuals is gauged to infer their monitoring and recommending abilities through their involvement, efforts, knowledge, skills, and experience, and hence, their behaviour in financial contexts. Yet an assessment of board busyness and its effects is challenging and inconclusive concerning the two opposing arguments surrounding this board attribute: reputation and busyness. The book is the first to thoroughly discuss this up-to-date concept within the dual banking system, and it is designed to help new researchers in this field and students boost their research and academic careers.

Table of Contents

Frontmatter
Chapter 1. Theories in Corporate Governance
Abstract
This chapter provides readers an overview of crucial theories in corporate governance including agency theory, resource dependence theory, stakeholder theory, legitimacy theory, information signalling theory, good management and slack resource theory, and behavioural theories. From this comprehensive foundation, researchers and students can easily build up and develop their theoretical framework depending on their specific research objectives.
Vu Quang Trinh
Chapter 2. Corporate Governance in Banking
Abstract
This chapter provides readers an understanding of corporate governance in banking. Specifically, researchers and students can understand why governance in banking is important and is a worthy research aspect, the differences between the banking sector and non-financial sector that make governance in the former unique, and some practices of modern board management.
Vu Quang Trinh
Chapter 3. Setting the Stage: Board Busyness as a Matter of Modern Banking Context
Abstract
This chapter provides readers some fundamental knowledge about the multiple directorships of boards and directors related theories which include the reputation and busyness hypotheses. Multiple directorships are not only observed as a positive indicator for the benefits of directors but also as a negative sign for the risks of directors being stretched thin. The reputation and busyness hypotheses explain such positive and negative signs of board busyness, respectively. In addition, researchers and students can understand why board busyness could be a matter of modern banking context and update some empirical evidence on the effects of multiple board appointments of directors in the banking sector.
Vu Quang Trinh
Chapter 4. Dual Banking System: Conventional and Islamic Banks
Abstract
This chapter provides readers some fundamental knowledge about the Islamic banking model compared to their conventional peers. Initially, fundamentals of the Islamic banking system will be provided to build up and increase the awareness and understanding of researchers and students regarding this unique banking type. This will be followed by a practice of the Shari’ah governance framework which makes Islamic banks different from other traditional business models. Most importantly, the researchers and students can benefit from this chapter by understanding the main differences between the two banking sectors. They are different from each other in terms of business model and investment modes, constraints on finance model and prohibition activities, agency conflicts, governance mechanisms and profit distribution models.
Vu Quang Trinh
Chapter 5. Board Busyness Hypotheses for Banks
Abstract
This chapter provides readers some theoretical connections between board busyness and stability of banks. As such, some knowledge about the busyness of the board of directors in the dual banking system (i.e., Islamic versus Conventional banks) will be discussed. This will be followed by the theoretical linkage between Shari’ah governance busyness and banking outcomes. Next, researchers and students will be introduced to some empirical evidence in this field, so that they can better visualise how the theoretical link between board busyness and bank outcomes was empirically examined in academics. Interestingly, this chapter provides researchers and students some good directions for endogeneity problems existing in corporate governance and board busyness research and some suggested methodology that could address such issues.
Vu Quang Trinh
Chapter 6. Conclusions and New Direction on Board Busyness Research
Abstract
This chapter summaries the book and provides researchers and students with new directions on board busyness research. From these suggestions, they can create their ideas around the issues of corporate governance and the busyness of directors in the banking sector.
Vu Quang Trinh
Metadata
Title
Fundamentals of Board Busyness and Corporate Governance
Author
Vu Quang Trinh
Copyright Year
2022
Electronic ISBN
978-3-030-89228-9
Print ISBN
978-3-030-89227-2
DOI
https://doi.org/10.1007/978-3-030-89228-9

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