Research On The Governance Effect Of Internationalized Board Of Directors

As the “central” institution connecting shareholders and managers,the board of directors is the ultimate controller and ultimate decision maker of the company,so the governance of the board becomes the core of corporate governance.With the deepening of the global economic integration and the internationalization of the human capital market,the rapid international movement of multinational talents with global vision has become the new normal of economic development.The state and local governments have successively introduced a number of talent-inviting policies to attract overseas.Talents come to China to work,overseas background talents gradually spread to various industries and enterprises,and also appear in the list of board of directors of listed companies in China.The board of directors began to show international characteristics.So,how does the international board of directors affect the governance of listed companies? This paper analyzes and tests the governance effect of the international board of directors on listed companies from the perspective of executive self-interested behavior and corporate decision-making for directors' and officers'(hereinafter referred to as D&O)liability insurance.Specifically,the main content of this article is reflected in the following aspects:The introduction part mainly introduces the paper from the research background,research significance,research content and research methods,and introduces the innovation of this paper at the end of this chapter.The literature review section mainly sorts and classifies the existing literature from the perspectives of the relevant research of the international board of directors,the influencing factors of the self-interested behavior of the executives and the demand drivers of the company's purchase of the D&O liability insurance.Through combing the existing relevant literatures,this chapter finds that the research on the self-interested behavior of executives and the research on the governance effect of internationalized board of directors on listed companies from the perspective of corporate purchase of the D&O liability insurance needs to be improved,which leads to the research theme of this paper.Then,the paper analyzes the influence path and mechanism of the international board of directors on the governance of listed companies from the perspective of self-interested behavior of executives and the perspective of corporate purchase of the D&O liability insurance,and conducts empirical tests.Through relevant empirical tests,the following important conclusions are obtained: First,based on the perspective of executive self-interested behavior,the international board of directors effectively suppresses the implicit self-interest behavior of executives while “conniving” the explicit self-interest behavior of executives.Further research shows that with the improvement of the legal environment,the binding role of the international board of directors on the explicit and implicit self-interest behavior of executives will be correspondingly enhanced,and the fierce market competition will significantly weaken the supervision effect of the international board of directors,while the internationalization board of state-owned enterprise has a more prominent effect on the governance of the implicit self-interest behavior of the executives.Secondly,from the perspective of the decision of the company to purchase the D&O liability insurance,it is found that The introduction of D&O liability insurance has significantly increased the explicit self-interest behavior of executives while effectively restraining the implicit self-interest behavior of executives.The international board of directors can not only effectively promote the purchase of D&O liability insurance,but also strengthen the relationship between the purchase of D&O liability insurance and the self-interest of executives.Further research shows that the boosting effect of the international board of directors on the decision-making of D&O liability insurance is not only more prominent in state-owned enterprises,but also enhanced with the improvement of the legal environment and the increase of market competition.The article concludes with research conclusions and policy recommendations.This part first summarizes the research conclusions of this paper,then lists relevant policy recommendations,and finally puts forward the future research prospects of related fields.