Derivatives and the Non-executive Director
Do non-executive directors have the wherewithal to overview a corporation's integrity, quality of performance and management in the area of derivatives policy? In a survey of the understanding and monitoring of derivatives in a small sample of quoted companies, we found disturbing levels of ignorance among independent directors. Whilst three quarters of non-executive directors surveyed favoured the use of derivatives in appropriate circumstances, namely hedging, over two-thirds confessed to an inadequate knowledge on the topic of derivatives. Also, we found a series of naïve and dangerous views expressed by many participants in our survey of derivatives and the non-executive director.
Volume (Year): 21 (2003)
Issue (Month): 3 (June)
|Contact details of provider:|| Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/115/description#description|
|Order Information:|| Postal: http://www.elsevier.com/wps/find/journaldescription.cws_home/115/bibliographic|
When requesting a correction, please mention this item's handle: RePEc:eee:eurman:v:21:y:2003:i:3:p:389-397. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamier, Wendy)
If references are entirely missing, you can add them using this form.