Outside Directors Say No: Determinants and After-Effects

摘要: Using a novel dataset of outside directors’ opinions from 2005 to 2009, we explore the determinants saying ‘no’ and what happens after they say at board meetings in listed Chinese firms. We find that firms with more severe agency problems between controlling shareholders minority are prone experiencing directors ‘no’. Outside likely when have financial expertise, multiple directorships, relatively low remuneration, long tenure, or live places other than where serve located. The stock market reacts negatively announcements Furthermore, report poor operating performance, receive modified audit opinion, obtain “special treatment” be subject regulatory enforcement actions year following