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The busyness of directors is reflective of their higher reputation acquired through education, expertise, experience, and business networks.

“A busy director is expected to serve the company meticulously and with the best of ones calibre in order to enhance their reputation”, states Shabnamjit Hundal from Ģ��ֱ�� School of Business and Economics in his doctoral dissertation.

”Busy directors may, however, lack the time and focus needed to perform their core responsibilities”, Hundal continues.

In his research, Hundal explored the busyness of corporate directors in the Indian corporate sector. The results show both good and bad effects of busyness.

“When looking at foreign and government firms, the results show that as the directors of a firm get busier the firm value experiences an increase throughout. However, when looking at the complete sample of firms examined, the positive effects of busyness of directors were not as noticeable. One might say that one size doesn’t fit them all, as there are multiple ways to approach the situation”, says Hundal.

The research suggests that the busyness of corporate directors can affect their independent functioning as well as their objectivity and loyalty to the companies they serve. The additional directorships can be beneficial to the recruiting firms if the selection is purely based on merit i.e. education, expertise, experience, and business networks. However, if the additional directorships are offered in order to recruit new directors, whose main job is to increase the influence of existing firm management and in turn seek financial, and other benefits, then such moves can be harmful to the appointing companies.

Furthermore, the regulators, when planning to impose any limit to the busyness, must consider ownership structure and other institutional characteristics of companies.  “The characteristics of the company should be taken into notice before suggesting limits to the busyness. If this is not done, corporate directors may end up being over/under utilized”, Hundal tells.

M.Sc. Shabnamjit Hundal defends his doctoral dissertation in Accounting "Corporate boards and audit committees in India - The impact of independence and busyness of corporate boards and audit committees on firm performance and financial reporting quality". 6.9.2019 at 12:00 in C-building in Seminaarinmäki. The Opponent is Professor (Emeritus) Pontus Troberg (Hanken Svenska Handelshögskolan) and Custos is Professor Jukka Pellinen (Ģ��ֱ��).

Born in Amritsar (Punjab), India, Shabnamjit Hundal is having two master’s degrees M.Sc. Financial Management, Aberdeen Business School, Robert Gordon University, Aberdeen, U.K, and M.Sc. (Honours School) Economics, Punjab School of Economics, Guru Nanak Dev University, Amritsar, India. He also holds Bachelor of Education (B.Ed.) at the secondary and higher-level education. He also had full registration as secondary school teacher with the General Teaching Council of Scotland.

Currently, Shabnamjit Hundal is working as a Senior Lecturer, Strategic Management, JAMK University of Applied Sciences, Jyväskylä, Finland. He also teaches some courses at the JSBE, KdG University, Antwerp and ICD International Business School, Paris. Before moving to Finland in 2010, he had worked for the Ministry of Education, Singapore; Aberdeen city Council and Aberdeenshire Council (UK), Marks & Spencer (UK) and British Telecom (UK).

You can read the dissertation in JYX: