Abstract
The financial crisis that originated in the collapse of the US subprime loan market had a serious impact on the global economy; various companies in all industries experienced serious performance declines. For example, Toyota Motor Corp., a Japanese representative automobile manufacturer, fell into a negative operating income situation for the accounting year ended March 2009, reporting red ink for the first time since the end of World War II. Such serious performance decline engenders severe conflicts among corporate stakeholders. This chapter investigates whether outside directors effectively monitor management in the interest of shareholders. Specifically, the chapter examines the relationship between board independence, management turnover and dividend policy in Japan during the financial crisis. Corporate board structures recently have received much research attention. This increased attention is largely attributable to the Sarbanes-Oxley Act (SOX), which mandates that the audit committees of listed companies comprise a majority of independent members.
| Original language | English |
|---|---|
| Title of host publication | Corporate Governance and the Global Financial Crisis |
| Publisher | Cambridge University Press |
| Pages | 188-214 |
| Number of pages | 27 |
| ISBN (Electronic) | 9780511736599 |
| ISBN (Print) | 9781107001879 |
| DOIs | |
| Publication status | Published - Jan 1 2011 |
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All Science Journal Classification (ASJC) codes
- Business, Management and Accounting(all)
Cite this
Do independent boards effectively monitor management? Evidence from Japan during the financial crisis. / Liu, Chunyan; Liu, Jianlei; Uchida, Konari.
Corporate Governance and the Global Financial Crisis. Cambridge University Press, 2011. p. 188-214.Research output: Chapter in Book/Report/Conference proceeding › Chapter
}
TY - CHAP
T1 - Do independent boards effectively monitor management? Evidence from Japan during the financial crisis
AU - Liu, Chunyan
AU - Liu, Jianlei
AU - Uchida, Konari
PY - 2011/1/1
Y1 - 2011/1/1
N2 - The financial crisis that originated in the collapse of the US subprime loan market had a serious impact on the global economy; various companies in all industries experienced serious performance declines. For example, Toyota Motor Corp., a Japanese representative automobile manufacturer, fell into a negative operating income situation for the accounting year ended March 2009, reporting red ink for the first time since the end of World War II. Such serious performance decline engenders severe conflicts among corporate stakeholders. This chapter investigates whether outside directors effectively monitor management in the interest of shareholders. Specifically, the chapter examines the relationship between board independence, management turnover and dividend policy in Japan during the financial crisis. Corporate board structures recently have received much research attention. This increased attention is largely attributable to the Sarbanes-Oxley Act (SOX), which mandates that the audit committees of listed companies comprise a majority of independent members.
AB - The financial crisis that originated in the collapse of the US subprime loan market had a serious impact on the global economy; various companies in all industries experienced serious performance declines. For example, Toyota Motor Corp., a Japanese representative automobile manufacturer, fell into a negative operating income situation for the accounting year ended March 2009, reporting red ink for the first time since the end of World War II. Such serious performance decline engenders severe conflicts among corporate stakeholders. This chapter investigates whether outside directors effectively monitor management in the interest of shareholders. Specifically, the chapter examines the relationship between board independence, management turnover and dividend policy in Japan during the financial crisis. Corporate board structures recently have received much research attention. This increased attention is largely attributable to the Sarbanes-Oxley Act (SOX), which mandates that the audit committees of listed companies comprise a majority of independent members.
UR - http://www.scopus.com/inward/record.url?scp=84862798341&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=84862798341&partnerID=8YFLogxK
U2 - 10.1017/CBO9780511736599.010
DO - 10.1017/CBO9780511736599.010
M3 - Chapter
AN - SCOPUS:84862798341
SN - 9781107001879
SP - 188
EP - 214
BT - Corporate Governance and the Global Financial Crisis
PB - Cambridge University Press
ER -