Exploring the causes and consequences of director overboardedness in an emerging market

Nadia Mans-Kemp (), Suzette Viviers and Sian Collins
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Nadia Mans-Kemp: Stellenbosch University
Suzette Viviers: Stellenbosch University
Sian Collins: Stellenbosch University

International Journal of Disclosure and Governance, 2018, vol. 15, issue 4, No 2, 210-220

Abstract: Abstract Scholars and shareholder activists have raised concerns about directors serving on multiple boards simultaneously. Semi-structured interviews were conducted with 10 experienced diverse South African directors to investigate the causes and consequences of overboardedness. Interviewees identified the limited talent pool and board diversity targets as the main causes of overboardedness (or interlocking as it is also called). In line with the busyness hypothesis, poor meeting attendance by overboarded directors was highlighted by some participants. However, others claimed that director interlocking could offer invaluable access to social networks and resources, lending support to the experience hypothesis. Director busyness should hence be considered on a case-by-case basis.

Keywords: Agency theory; Busyness hypothesis; Director interlocking; Director overboardedness; Experience hypothesis; Resource dependence (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (4)

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DOI: 10.1057/s41310-018-0048-9

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