Are board meetings proactive or reactive to performance?

The purpose of this paper is to investigate the relationship between the intensity of board activity, as represented by board meeting frequency, and firm financial performance, using data from the top 500 Australian companies. Firm performance measures include return on assets, return on equity and shareholder return; several control variables are introduced in the analysis. The results indicate that board meeting frequency has a positive impact on subsequent shareholder return. Regarding the explanatory factors for the level of board activity, it is reported that firms with more board committees tend to have relatively more board and committee meetings; firms with larger boards have less board meetings. In addition, lower managerial ownership leads to more committee meetings