Direct effects of independent supervision are ambiguous
Corporate governance regulations across the globe increasingly push for a model in which top management is supervised by an independent, vigilant and skilled board of directors. Academic research, however, produces ambiguous results as to the direct effects of such board characteristics on firm performance.
Hans van Ees, Gerwin van der Laan and Theo Postma therefore analyzed the relationships between board attributes, board working processes and board role performance through intermediate relationships. Several hypotheses are derived and tested by analyzing data obtained from a survey at the board level in The Netherlands. The results partly confirm the relevance of the model of board processes related to board role performance, as suggested by [Forbes, D.P., and Milliken, F.J. (1999) Cognition and corporate governance: Understanding boards of directors as strategic decision-making groups. Academy of Management Review, 24, 489–505]. Particularly, this study exemplifies the relevance of different board processes for explaining board role performance.
See also:
Corporate Governance Insights Centre, Faculty of Economics and Business
Last modified: | 31 January 2018 11.52 a.m. |
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