Herding of Corporate Directors in Taiwan

John S. Liu and Chyan Yang

Emerging Markets Finance and Trade, 2008, vol. 44, issue 4, 109-123

Abstract: Corporate directors can be said to herd when they sit together on not only one, but several company boards. Such herding is commonly called "multiple interlock" in the literature. This study analyzes the factors involved in director herding using a binary logistics regression model. Statistical analysis indicates that directors who control a large amount of effective assets in the corporate world, own a high percentage of equity in a company, or hold an inside management position are more likely to be involved in multiple firm interlocks. In other words, controlling shareholders and their associates are the main individuals involved in such interlocks. Finally, company financial performance is negatively related to multiple interlocks.

Keywords: corporate governance; herding of directors; interlocking directorates; multiple interlocks; Taiwan (search for similar items in EconPapers)
Date: 2008
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://mesharpe.metapress.com/link.asp?target=contribution&id=PW7U56464P74L2J1 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mes:emfitr:v:44:y:2008:i:4:p:109-123

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/MREE20

Access Statistics for this article

More articles in Emerging Markets Finance and Trade from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().