Investigating the Development of the Internal and External Service Tasks of Non-Executive Directors: The Case of the Netherlands (1997-2005)
Queensland University of Technology - School of Management
Gregory F. Maassen
affiliation not provided to SSRN
Frans A. J. Van Den Bosch
Erasmus University Rotterdam (EUR) - Department of Strategic Management and Entrepreneurship; Erasmus Research Institute of Management (ERIM)
H. W. Volberda
Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM); Erasmus Research Institute of Management (ERIM)
Corporate Governance: An International Review, Vol. 15, Issue 6, pp. 1119-1129, November 2007
During the last decade, globalization and liberalization 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 emphasized 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 counseling 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.
Number of Pages in PDF File: 11Accepted Paper Series
Date posted: December 13, 2007
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