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Board Effectiveness

Since the Enron scandal in 2001 and the financial crisis in 2008, the apparent lack of effectiveness of boards has been the core of heated debates. As a consequence many new regulatory systems have been put into place to control decision making by corporate boards to avoid more corporate problems. However, ongoing corporate scandals and public discussions about board remuneration decisions illustrate that, despite increased regulation, boards are still not always effective in managing their organizations.

Therefore, identifying the conditions under which boards thrive remains an important question. The central aim of this signature area is to examine the conditions that will make boards effective. We will generate valuable knowledge on why boards are not always effective in meeting shareholder demands, and which conditions will help them to improve their functioning.

In Focus

PhD Scholarships
Published on:29 January 2018

The Signature Area Board Effectiveness invites talented students to apply for a PhD Scholarship at the Faculty of Economics and Business.

Female directors, board committees and firm performance
Published on:29 November 2017

What effect, if any, does female representation have on board performance? Previous research says none. Research by Colin P. Green (Lancaster University) and Swarnodeep Homroy says otherwise.

Interview: Dennis Veltrop, researcher of behavioural governance
Published on:26 July 2017

Conducting research at the interface of governance and behaviour; this is what drives Dennis Veltrop. He specializes in the combination of social psychological research and economic issues. How does diversity affect the way an organization performs? How do people at the top of an organization treat each other? Who has the most influence? Which factors determine the effectiveness of a supervisory board? What is the effect of an external regulator, such as De Nederlandsche Bank?

Financial experts run the show on a board of directors
Published on:13 July 2017

A board of directors typically includes a mix of financial experts and experts whose main knowledge is of the sector. The status and influence of the two groups differs greatly. In practice, the financial experts run the show, conclude Board Effectiveness researchers Dennis Veltrop, Eric Molleman, Reggy Hooghiemstra and Hans van Ees.