BUSY DIRECTORS' AND THEIR IMPACT ON FIRM PERFORMANCE

Abstract

Many studies evaluating the impact of director busyness on firm performance have been conducted. In this paper, I investigate the same relation in Singapore context, as well as other unique aspects of Singapore's business environment. I find that 'busy directors' do not have a significant impact on a firm's price-to-book ratio, but have a strong negative correlation (p-value < 0.1) with its return-on-assets ratio. A firm with a 'busy director' as its CEO does not fare any worse than other firms. I also document that 'busy directors' on the boards of Temasek-linked companies do not perform better than their counterparts in other firms.