Purpose

This study aims to investigate whether higher earnings quality is related to the existence of multiple directorships among corporate boards and whether this relationship varies with the quality of investor protection.

Design/methodology/approach

This paper used a dynamic panel data modelling on the sample of 2,090 firm-year observations over the period from 2007 to 2016 in Malaysia. The generalized method of moments estimators were used to deal with endogeneity and other econometric problems.

Findings

This study finds that the accumulation of several outside directorships is negatively associated with the firm's earnings quality, as measured by the magnitude of discretionary accruals. More importantly, the findings provide evidence that multiple directors are more efficient in improving earnings quality in healthy investor protection environment.

Practical implications

The appointment of directors should be based on market-based and not on a relationship (i.e. financial and industry professionals).

Originality/value

The results highlight the importance of interaction between internal and external governance mechanisms to improve the firm's financial performance, investment and market efficiency. High-quality investor protection and law enforcement are significant for enhancing the monitoring role of multiple directorships in improving earnings quality.

中文翻译：

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多重董事职位和盈利质量：投资者保护重要吗？

目的

本研究旨在调查较高的盈利质量是否与公司董事会中存在多个董事职位有关，以及这种关系是否随投资者保护的质量而变化。

设计/方法/方法

本文对马来西亚 2007 年至 2016 年期间 2,090 个公司年度观察样本使用动态面板数据建模。矩估计量的广义方法用于处理内生性和其他计量经济学问题。

发现

本研究发现，多个外部董事职位的积累与公司的盈利质量呈负相关，以可自由支配的应计金额来衡量。更重要的是，研究结果提供的证据表明，在健康的投资者保护环境中，多名董事在提高盈利质量方面更有效。

实际影响

董事的任命应基于市场而非关系（即金融和行业专业人士）。

原创性/价值

结果强调了内部和外部治理机制之间相互作用对提高公司财务绩效、投资和市场效率的重要性。高质量的投资者保护和执法对于加强多个董事在提高盈利质量方面的监督作用具有重要意义。