IDEAS home Printed from https://ideas.repec.org/h/elg/eechap/20264_14.html
   My bibliography  Save this book chapter

Nonexecutive director influence on informational asymmetries in offshore financial centres

In: Research Handbook on Corporate Board Decision-Making

Author

Listed:
  • Bruce Hearn
  • Alexander Mohr
  • Muhammad Khawar
  • Jaskaran Kaur

Abstract

This is a study of the relationship between non-executive director personal ownership and firm's bid ask spreads in listed firms from 179 firms listed on eight Caribbean offshore securities exchanges. We report that bid ask spreads increase with non-executive director ownership. However, this result is reduced (negatively moderated) in the context of higher formal institutional quality and also if the territory has a fixed exchange rate regime, but exacerbated (positively moderated) if firm is located within an offshore jurisdiction. The effectiveness of non-executive directors is highly contingent upon the specific institutional context. Higher formal institutional quality and the presence of a strong macroeconomic tie between territory and OECD country leads to a reduction in these costs, while offshore financial centres lead to their increase. The results support regulator's focus on board of director composition and in particular nonexecutive remuneration in the form of ownership.

Suggested Citation

  • Bruce Hearn & Alexander Mohr & Muhammad Khawar & Jaskaran Kaur, 2022. "Nonexecutive director influence on informational asymmetries in offshore financial centres," Chapters, in: Oliver Marnet (ed.), Research Handbook on Corporate Board Decision-Making, chapter 14, pages 306-334, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:20264_14
    as

    Download full text from publisher

    File URL: https://www.elgaronline.com/view/edcoll/9781800377189/9781800377189.00025.xml
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hearn, Bruce & Oxelheim, Lars & Randøy, Trond, 2023. "The influence of business groups on board composition in offshore financial multinational enterprises," International Business Review, Elsevier, vol. 32(3).
    2. Wright, Calvin & Swidler, Steve, 2023. "Abnormal trading volume, news and market efficiency: Evidence from the Jamaica Stock Exchange," Research in International Business and Finance, Elsevier, vol. 64(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:elg:eechap:20264_14. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Darrel McCalla (email available below). General contact details of provider: http://www.e-elgar.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.