The board of directors’ role is evolving and becoming more important in the wake of corporate scandals resulting in the collapse of large corporations and losses to shareholders. Poor governance can lead to wrong decision-making, which might destroy organizations, particularly during times of environmental turbulence. The 2008 Global Financial Crises followed by the 2011 Arab Spring throughout the MENA region and then the 2019 pandemic situation are few of many factors that created a turbulent economic and political environment for organizations, highlighting the importance of excellent decision-making skills. However, there is limited research on boards’ decision-making during difficult times in the MENA region. The authors interviewed 26 board members of 21 companies operated under duress to examine the effects on boardroom level decision making of the magnified levels of duress and stress experienced during turbulent times. Key findings from the research include trends in emotional responses in relation to decision-making, changes in the decision-making process after crises, leadership positions, and board behavior. The authors recommend that boards incorporate diversity training and awareness into all levels of their decision-making process and to the board members’ selection process. Future research should expand to different regions and industries and examine the effects of board members’ personal traits and backgrounds on their quality of choices and decision-making
The 2008 global financial crisis showed that despite the corporate governance scholars and regulatory efforts of the past 30 years, shareholders’ investments remain at risk due to poor or dishonest decisions made by some distinct groups of corporate stockholders. Using structural equation modeling (SEM), this study investigated the influence of ownership control on 222 public US companies’ performance after the 2008 financial crisis. The authors identify a new construct representing a third dimension (control intensity) of ownership structure, whereas previous literature has identified only two dimensions: identity and concentration. The control intensity construct of managerial ownership was measured using the number of manager-owners among individual shareholders instead of using the traditional ownership concentration measurement method. The study indicates that the higher the individual ownership stake and the lower managerial ownership control intensity are in an organization, the stronger the negative influence of individual ownership on corporate performance and growth
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