Directors with Multiple Board Appointments, Risk Taking and Cost of Debt

• Main Author: 葉清雄
• Other Authors: 張元
• Format: Others
• Language: zh-TW
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/7cd78f

碩士 === 國立彰化師範大學 === 財務金融技術學系 === 102 === This study examines the relationship between director’s multiple board appointments (busyness) and cost of debt capital of listed companies on Taiwan Stock Exchange from 2008 to 2012. Theoretically, if a director with multiple board appointments, his/her efforts and commitment on managerial monitoring toward each company is decreased, thus the firm value is deteriorated and risk of company light up. On the other hand, thier reputation, professional skills, experience and interpersonal relationship have positive influence on company by reducing risk and enhence the value of company. This study collects the number of directors of each listed company board that also serves as the director in other listed companies and relates this degree of director’s busyness to the firm’s cost of debt capital. Empirical findings show that there is negative correlation between director’s busyness and cost of debt capital in terms of lower interest expense to total interest-bearing debt and favorable credit ratings.