Remote Board Meetings and Board Monitoring Effectiveness: Evidence from China

Xinni Cai, Fuxiu Jiang, Jun-Koo Kang and Wei Jiang

The Review of Financial Studies, 2023, vol. 36, issue 11, 4318-4372

Abstract: Using Chinese data, we examine whether synchronous remote board meetings, which facilitate status equalization among directors and alleviate their pressure for conformity, affect board monitoring effectiveness. We find that compared to face-to-face meetings, synchronous remote meetings are associated with directors’ better meeting attendance behavior, a higher likelihood of director dissent on monitoring-related proposals, higher forced CEO turnover-performance sensitivity, and more effective investments. These results hold when we use remote meetings that include both synchronous and asynchronous remote meetings. Proposal-director level analysis further shows that remote meetings reduce the pressure to conform faced by young first-term directors and socially connected directors.Authors have furnished an Internet Appendix, which is available on the Oxford University Press Web site next to the link to the final published paper online.

JEL-codes: G14 G30 G32 G34 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (3)

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