Researching Boards of Directors

Stiles, Philip; Taylor, Bernard

doi:10.1093/acprof:oso/9780199258161.003.0003

Cited by 33 publications

(61 citation statements)

References 0 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…4 Mace (1971) is based on interviews with executives and directors of American companies. Lorsch and MacIver (1989), basing themselves on interviews held with directors of American companies in the second half of the 1980s, and Stiles and Taylor (2001), using interviews with directors of British companies conducted in the late 1990s, report findings that are by and large consistent with those of Mace (1971). 5 Directors refers to outside directors.…”

Section: Mace (1971) Provides a Classic Account Of What The Relationsmentioning

confidence: 72%

Disciplining and Screening Top Executives

2006

View full text Add to dashboard Cite

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in

show abstract

Section: Mace (1971) Provides a Classic Account Of What The Relationsmentioning

confidence: 72%

Disciplining and Screening Top Executives

2006

View full text Add to dashboard Cite

show abstract

“…The board of directors is one of the mechanisms for controlling and advising management and ensuring that decisions are made in accordance with shareholders' interests. (Stiles and Taylor, 2001) The separation of ownership and control, the documentation of which is attributed to Adolf Berle and Gardiner Means (Berle andMeans 1930 and1933;Means 1931), represents the cornerstone of modern inquiry into the governance of corporations. Berle and Means highlighted both the concentration of wealth within corporations and the dispersal of ownership among a multitude of small investors, each of whom had little power to compel a board of directors to control the corporation's officers.…”

Section: The Literaturementioning

confidence: 99%

“…Boards of directors constitute a resource on which managers may call for advice (Huse, 2005). Boards participate in the strategic decision-making process, support executive management in defining the strategic context of the firm, and provide external legitimacy and networking (Stiles and Taylor, 2001). At the strategic level, non-executive directors may be called on to participate in activities such as evaluating and selecting strategic alternatives that have been developed by senior managers, and providing advice to improve the quality of strategic decisions (Huse, 2005;Styles and Taylor, 2001).…”

Section: The Literaturementioning

confidence: 99%

The technostructure gap the educational qualifications of executive and non-executive directors

Phillips¹,

Cotter²

2010

COC

View full text Add to dashboard Cite

The purpose of this paper is to investigate the educational qualifications and experience of executive and non-executive members of directorial boards in Australia. Inspired by Galbraith's (1967) analysis of the ‗technostructure', we examine the educational qualifications of managerial (executive) directors and non-executive directors to assess the extent of divergences in the relevance (to the company's operations) of executives' and non-executives' educational qualifications. In addition, we measure the ‗relatedness' of executives' and non-executives' educational qualifications to determine the extent to which the set of educational qualifications of executive directors diverges from that of non-executive directors. We find significant differences in the relevance of the educational qualifications possessed by executives and non-executives. We also find very low relatedness between the two sets of educational qualifications. The advantages of board diversity on the one hand and the disadvantages that may attend potentially sub-optimal technical information flow on the other are discussed. 3The purpose of this paper is to present the results of an investigation into the educational qualifications (and experience) of Australian managers and the educational qualifications of Australian non-executive directors (members of boards). In particular, the investigation is focussed on the possession of educational qualifications and experience that are relevant to the technical information generated by particular types of business enterprise and the differences in such qualifications and experience that characterise managers, especially chief executive officers and managing directors, from those that characterise non-executive members of the board. The differences in qualifications are assessed and the ‗relatedness' of the set of executive qualifications and the set of non-executive qualifications is measured. Any differences between managers and non-executives in this regard is potentially important since the ability to seek and interpret appropriate information is essential for the efficient operation of the modern corporation and the effective control or guidance of CEOs by boards of directors. Prior literature indicates that one of the key antecedents of nonexecutive directors' effectiveness is their level of knowledge and skills (Carter and Lorsch, 2004;Charan, 1998, Hendry, 2005. Indeed the management literature indicates that to be effective, nonexecutive directors should have both functional and firm-specific knowledge and skills (Carter and Lorsch, 2004, Charan, 1998). The optimality of the interaction between CEO and board may be subject to some diminution if the board of directors does not seek or is unable to effectively interpret and utilise the technical information provided to them by the CEO (even if the information is full and complete). Our results are relevant both to those studies that highlight the importance of board diversity and those that are concerned with the optimal flow of informati...

show abstract

“…From conversations and public statements of individual directors we've seen emerge several theories that describe how boards operate and seek to prescribe the basis on which directors should make decisions. Stiles and Taylor (2001) outline six theories of corporate governance, though perhaps only three have a useful normative character. First, the legal view is a narrow one, which re¯ects what some directors might see as their role ± ful®lling the obligations of company law ± but which provides little worthwhile guidance for their actions.…”

Section: Theories Of Corporate Governancementioning

confidence: 99%

“…Agency theory helps the director in ®nding solutions to the narrow problems of corporate governance: how to keep managers from diverting corporate funds for private purposes. Quali®ed by reference to transaction-cost economics, as in the organisational economics theory as outlined by Stiles and Taylor (2001), it can even help directors decide when its no longer worth trying to prevent managers from stealing shareholder funds, indeed why it might help shareholders to encourage what the British media like to call fat-cat pay. It was, after all, all those very fat-American-cat CEOs who delivered the disproportionately large gains in pro®ts, share price appreciation and productivity while taking home large sums of cash pay and huge, unrealised gains on stock options.…”

Section: Toward a New Ethical Stance In Governancementioning

confidence: 99%

Ethics of Corporate Governance

Nordberg

2007

SSRN Journal

View full text Add to dashboard Cite

Researching Boards of Directors

Cited by 33 publications

References 0 publications

Disciplining and Screening Top Executives

Disciplining and Screening Top Executives

The technostructure gap the educational qualifications of executive and non-executive directors

Ethics of Corporate Governance

Contact Info

Product

Resources

About