Board Faultlines And Directors Dissent

Although there have been many studies on faultlines,they mainly focus on organizational performance,enterprise value and other strategic issues,and few literatures involve group decision-making behavior.In the aspect of corporate governance,the researches on the faultlines mainly focus on the board fauitlines.However,the existing literatures about the relationship between board faultlines and group decision making are very few.They are only carried out from a relatively macro level,without going deep into the more microscopic and direct level of board group decision results,opinions expressed,and whether or not board faultlines will affect board decision results,and what kind of impact it may have.Therefore,based on the existing researches,this paper further starts from the board faultlines to study the influence of the board faultlines on the director dissent in the board of directors.Based on the data of A-share listed companies in Shanghai and Shenzhen from 2004 to 2016,this paper uses Logit model to study the correlation between the faultlines of the board of directors and the director dissent,and at the same time investigates the moderating effect of the faultlines distance and Confucianism.This paper finds that:(1)there is a positive correlation between board faultlines and directors dissent;(2)the distance of the board faultlines regulates the correlation between the board faultlines and directors dissent.That is,the greater the distance of the board faultlines,the stronger the positive influence of the strength of the board faultlines on directors dissent;(3)Confucianism also plays a moderating role in the relationship between board faultlines and directors dissent.In other words,the stronger the company is influenced by Confucianism,the weaker the positive influence of the strength of board faultlines on director dissent.The main innovation of this paper lies in analyzing the influence of the existence of the faultlines and the strength on director dissent.A more detailed level of influence on decision-making behavior is explored,and a new aspect and a new direction are found in studying the influence of board faultlines on decision-making behavior.Secondly,this paper interprets the behavior decision results of directors in the board of directors from the perspective of group faultlines,focuses on the research direction of directors' voting decision,and indirectly reflects the influence of board faultlines on board decision by means of director dissent.Finally,this article regards Confucianism as a moderator variable,research the influence of Confucianism on the correlation between the board faultlines and directors dissent,further interpret the internal decision-making mechanism of the board of directors from a unique perspective of Confucianism,and further enrich the related research of board faultlines.The main shortage of this study is that a moderator variable is the Confucianism,the measurement of Confucianism using the distance between companies' location and Confucianism center is not enough precise,and the regions influenced by Confucianism are mainly composed of east of Asia,so the applicable scope of the study of Confucianism is relatively limited,but can be as a reference,when researching companies in other parts of the world,explore the moderating effect of a general local culture.