Abstract

http://ssrn.com/abstract=397401
 
 

References (21)



 
 

Citations (31)



 


 



What do Boards do? Evidence from Board Committee and Director Compensation Data


Renee B. Adams


University of New South Wales, Department of Banking and Finance; ECGI; FIRN; ABFER

March 13, 2003

EFA 2005 Moscow Meetings Paper

Abstract:     
This paper uses data on 1542 board committees and director compensation in a sample of 352 Fortune 500 companies in 1998 to analyze variation in board behavior. I use this data to quantify the amount of effort boards devote to their three different functions: monitoring, dealing with strategic issues and considering the interests of stakeholders. I show that boards appear to take their traditional oversight role seriously, since on average boards devote effort primarily to monitoring. However, there is a fair amount of variation across firms in the amount of effort boards devote to their different functions. In particular boards of larger firms and firms that face more uncertainty devote relatively less effort to monitoring, while boards of diversified firms devote relatively more effort to monitoring. Boards of larger, growing and older firms devote more effort to stakeholder interests on both an absolute and a relative basis. Finally, boards of growing firms devote relatively more effort to strategic issues.

Number of Pages in PDF File: 38

Keywords: Board of Directors; Committee, Compensation, Effort, Monitoring, Strategy, Stakeholder

JEL Classification: G30, G34, J31, J33, J44


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Date posted: September 2, 2005  

Suggested Citation

Adams, Renee B., What do Boards do? Evidence from Board Committee and Director Compensation Data (March 13, 2003). EFA 2005 Moscow Meetings Paper. Available at SSRN: http://ssrn.com/abstract=397401 or http://dx.doi.org/10.2139/ssrn.397401

Contact Information

Renée B. Adams (Contact Author)
University of New South Wales, Department of Banking and Finance ( email )
Sydney, NSW 2052
Australia
+61(2)93854280 (Phone)

ECGI
c/o ECARES ULB CP 114
B-1050 Brussels
Belgium
HOME PAGE: http://www.ecgi.org
FIRN
C/- University of Queensland Business School
St Lucia, 4071 Brisbane
Queensland
Australia
HOME PAGE: http://www.firn.org.au

ABFER
BIZ 2 Storey 4, 04-05
1 Business Link
Singapore, 117592
Singapore
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