The Active Board Of Directors And Its Effect On The Performance Of The Large Publicly Traded Corporation
AbstractIn recent years, boards of directors have become more active and independent of management in pursuing shareholder interests. But, up to this point, there has been little empirical evidence that active boards help companies produce higher rates of return for their shareholders. In this article, after describing the new board activism, the authors argue that past failures to document an association between independent boards and superior corporate performance can be explained by two features of the research: its concentration on periods prior to the 1990s (when most boards were largely irrelevant) and its use of unreliable proxies (such as a minimum percentage of outside directors) for a well-functioning board. 1999 Morgan Stanley.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Morgan Stanley in its journal Journal of Applied Corporate Finance.
Volume (Year): 11 (1999)
Issue (Month): 4 ()
Contact details of provider:
Web page: http://www.blackwellpublishing.com/journal.asp?ref=1078-1196
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Ravina, Enrichetta & Sapienza, Paola, 2007.
"What Do Independent Directors Know? Evidence from Their Trading,"
CEPR Discussion Papers
6046, C.E.P.R. Discussion Papers.
- Enrichetta Ravina & Paola Sapienza, 2010. "What Do Independent Directors Know? Evidence from Their Trading," NBER Chapters, in: Corporate Governance National Bureau of Economic Research, Inc.
- Enrichetta Ravina & Paola Sapienza, 2006. "What Do Independent Directors Know? Evidence from Their Trading," NBER Working Papers 12765, National Bureau of Economic Research, Inc.
- Adams, Renee & Hermalin, Benjamin E. & Weisbach, Michael S., 2009.
"The Role of Boards of Directors in Corporate Governance: A Conceptual Framework and Survey,"
Working Paper Series
2008-21, Ohio State University, Charles A. Dice Center for Research in Financial Economics.
- Renee B. Adams & Benjamin E. Hermalin & Michael S. Weisbach, 2010. "The Role of Boards of Directors in Corporate Governance: A Conceptual Framework and Survey," Journal of Economic Literature, American Economic Association, vol. 48(1), pages 58-107, March.
- Renée Adams & Benjamin E. Hermalin & Michael S. Weisbach, 2008. "The Role of Boards of Directors in Corporate Governance: A Conceptual Framework and Survey," NBER Working Papers 14486, National Bureau of Economic Research, Inc.
- Paolo Santella & Giulia Paone & Carlo Drago, 2005.
"How Independent are Independent Directors? The Case of Italy,"
- Paolo Santella & Giulia Paone & Carlo Drago, . "How Independent Are Independent Directors? The Case Of Italy," German Working Papers in Law and Economics 2006-1-1148, Berkeley Electronic Press.
- Georges Dionne & Thouraya Triki, 2005. "Risk Management and Corporate Governance: the Importance of Independence and Financial Knowledge for the Board and the Audit Committee," Cahiers de recherche 0515, CIRPEE.
- Pollio, Gerald & Uchida, Koichi, 1999. "Management background, corporate governance and industrial restructuring: the Japanese upstream petroleum industry," Energy Policy, Elsevier, vol. 27(14), pages 813-832, December.
- Hunton, James E. & Rose, Jacob M., 2008. "Can directors' self-interests influence accounting choices?," Accounting, Organizations and Society, Elsevier, vol. 33(7-8), pages 783-800.
- Constantinos Chalevas & Christos Tzovas, 2010. "The effect of the mandatory adoption of corporate governance mechanisms on earnings manipulation, management effectiveness and firm financing: Evidence from Greece," Managerial Finance, Emerald Group Publishing, vol. 36(3), pages 257-277, March.
- Gleason, Kimberly C. & Madura, Jeff & Subrahmanyam, Vijaya, 2007. "Stock exchange governance initiatives: Evidence from the Italian STARs," Journal of Banking & Finance, Elsevier, vol. 31(1), pages 141-159, January.
- Damon Fleming & Chee Chow & Wenbing Su, 2010. "An Exploratory Study of Chinese Accounting Students’ and Auditors’ Audit-specific Ethical Reasoning," Journal of Business Ethics, Springer, vol. 94(3), pages 353-369, July.
- Paolo, Santella & Carlo, Drago & Giulia, Paone, 2007. "Who cares about Director Independence?," MPRA Paper 2288, University Library of Munich, Germany.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.