Board Sub-Committee Effectiveness, Director Attraction and Director Attrition: Do nomination and remuneration committees’ matter? : WestminsterResearch

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Title	Board Sub-Committee Effectiveness, Director Attraction and Director Attrition: Do nomination and remuneration committees’ matter?
Type	Journal article
Authors	Sutharson Kanapathippillai, Premkanth Puwanenthiren, Dessalegn Mihret and Man Dang
Abstract	This study examines whether the effectiveness of board subcommittees is associated with director attrition and the attraction of new directors to boards. Using a sample of firms listed on the Australian Securities Exchange, we find that nomination and remuneration committee effectiveness is inversely associated with director attrition and positively related to new external directors joining boards. The results suggest the contribution of these subcommittees to improve corporate governance by strengthening the board’s human capital through recruitment and retention of suitable talent. Furthermore, the findings show the subcommittees affect director attraction (attrition) by improving the information environment, corporate governance and performance of firms. The results are robust to tests with alternative variables, entropy balanced matching, and additional controls. Overall, our findings show that improved governance through effective subcommittees helps maintain and enhance the human capital of boards.
Keywords	Director Attraction
	Director Attrition
	Board Subcommittees
	Nomination Committee
	Remuneration Committee
Article number	102441
Journal	Pacific-Basin Finance Journal
Journal citation	86
ISSN	0927-538X
Year	2024
Publisher	Elsevier
Publisher's version	1-s2.0-S0927538X24001926-main.pdf License CC BY 4.0 File Access Level Open (open metadata and files)
Digital Object Identifier (DOI)	https://doi.org/10.1016/j.pacfin.2024.102441
Published online	26 Jun 2024
Published in print	Sep 2024

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Board Sub-Committee Effectiveness, Director Attraction and Director Attrition: Do nomination and remuneration committees’ matter?

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