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Investigating the Development of the Internal and External Service Tasks of Non-executive Directors: the case of the Netherlands (1997-2005)

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Author Info
Pieter-Jan Bezemer
Gregory F. Maassen (RSM Erasmus University)
Frans A. J. Van den Bosch (Rotterdam School of Management, Erasmus University Rotterdam in the Netherlands)
Henk W. Volberda (RSM Erasmus University)

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Abstract

During the last decade, globalisation and liberalisation of financial markets, changing societal expectations and corporate governance scandals have increased the attention for the fiduciary duties of non-executive directors. In this context, recent corporate governance reform initiatives have emphasised the control task and independence of non-executive directors. However, little attention has been paid to their impact on the external and internal service tasks of non-executive directors. Therefore, this paper investigates how the service tasks of non-executive directors have evolved in the Netherlands. Data on corporate governance at the top-100 listed companies in the Netherlands between 1997 and 2005 show that the emphasis on non-executive directors' external service task has shifted to their internal service task, i.e. from non-executive directors acting as boundary spanners to non-executive directors providing advice and counselling to executive directors. This shift in board responsibilities affects non-executive directors' ability to generate network benefits through board relationships and has implications for non-executive directors' functional requirements. Copyright (c) 2007 The Authors; Journal compilation (c) 2007 Blackwell Publishing Ltd.

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1467-8683.2007.00635.x
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Article provided by Blackwell Publishing in its journal Corporate Governance: An International Review.

Volume (Year): 15 (2007)
Issue (Month): 6 (November)
Pages: 1119-1129
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Handle: RePEc:bla:corgov:v:15:y:2007:i:6:p:1119-1129

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  1. Laura F. Spira & Ruth Bender, 2004. "Compare and Contrast: perspectives on board committees," Corporate Governance: An International Review, Blackwell Publishing, vol. 12(4), pages 489-499, October. [Downloadable!] (restricted)
  2. Philip Stiles, 2001. "The Impact of the Board on Strategy: An Empirical Examination," Journal of Management Studies, Blackwell Publishing, vol. 38(5), pages 627-650, 07. [Downloadable!] (restricted)
  3. Geoffrey C. Kiel & Gavin J. Nicholson, 2003. "Board Composition and Corporate Performance: how the Australian experience informs contrasting theories of corporate governance," Corporate Governance: An International Review, Blackwell Publishing, vol. 11(3), pages 189-205, 07. [Downloadable!] (restricted)
  4. Gregory Maassen & Frans van den Bosch, 1999. "On the Supposed Independence of Two-tier Boards: formal structure and reality in the Netherlands," Corporate Governance: An International Review, Blackwell Publishing, vol. 7(1), pages 31-37, 01. [Downloadable!] (restricted)
  5. Lynsey Sheridan & Edward Jones & Claire Marston, 2006. "Corporate Governance Codes and the Supply of Corporate Information in the UK," Corporate Governance: An International Review, Blackwell Publishing, vol. 14(5), pages 497-503, 09. [Downloadable!] (restricted)
  6. Violina P. Rindova, 1999. "What Corporate Boards have to do with Strategy: A Cognitive Perspective," Journal of Management Studies, Blackwell Publishing, vol. 36(7), pages 953-975, December. [Downloadable!] (restricted)
  7. Paul Collier & Mahbub Zaman, 2005. "Convergence in European Corporate Governance: the audit committee concept," Corporate Governance: An International Review, Blackwell Publishing, vol. 13(6), pages 753-768, November. [Downloadable!] (restricted)
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