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image/svg+xml Jakob Voss, based on art designer at PLoS, modified by Wikipedia users Nina and Beao Closed Access logo, derived from PLoS Open Access logo. This version with transparent background. http://commons.wikimedia.org/wiki/File:Closed_Access_logo_transparent.svg Jakob Voss, based on art designer at PLoS, modified by Wikipedia users Nina and Beao Corporate Governance...arrow_drop_down
image/svg+xml Jakob Voss, based on art designer at PLoS, modified by Wikipedia users Nina and Beao Closed Access logo, derived from PLoS Open Access logo. This version with transparent background. http://commons.wikimedia.org/wiki/File:Closed_Access_logo_transparent.svg Jakob Voss, based on art designer at PLoS, modified by Wikipedia users Nina and Beao
Corporate Governance An International Review
Article . 2022 . Peer-reviewed
License: Wiley Online Library User Agreement
Data sources: Crossref
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Social hierarchy effect of political strategy: Exploring chairman's political position influence on independent directors' dissent

Authors: Shihua Chen; Yan Ye; Khalil Jebran; David H. Zhu;

Social hierarchy effect of political strategy: Exploring chairman's political position influence on independent directors' dissent

Abstract

AbstractResearch question/issueAlthough the dark side of corporate political connections has been highlighted in recent studies, their adverse consequences on board decision making have received limited research attention. In this study, we posit that the political position of a chairman leads to greater power and a higher ranking on the board, which adversely influences the dissenting behavior of independent directors.Research findings/insightsIn line with our predictions, we show that the presence of a chairman with political position will reduce the likelihood that independent directors will dissent on board proposals. Such influence is particularly weaker in firms that have higher status independent directors on boards and are state owned but stronger among firms in regulated industries and those strongly influenced by Confucian beliefs. These predictions are supported using a sample of Chinese firms from 2004 to 2016.Theoretical/academic implicationsOur findings contribute to the board dynamics and decision‐making literature by highlighting how the political position of a board chairman can adversely affect the decision‐making quality of the whole board by reducing the propensity for independent directors to dissent.Practitioner/policy implicationsThe findings of this work also provide important insights to policymakers who are keen to improve corporate governance mechanisms by designing political strategies for firms.

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
19
Top 10%
Average
Top 10%
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