Boardroom Theater: Actors, Actions and Their Consequences

27 Pages Posted: 18 Jun 2012 Last revised: 9 Oct 2013

Solange Charas

Case Western Reserve University

Date Written: January 1, 2012

Abstract

Seventy seven percent of low corporate governance ratings for U.S. publicly-traded companies are attributable to poorly-performing boards. Responding to calls for more research on interpersonal dimensions of directors’ behaviors and their relationship to board performance, we conducted inductive research based on semi-structured interviews with directors of high and low governance-rated small and medium sized US firms. Illumination of their “lived experiences” on public company boards revealed the criticality of cultural intelligence (CQ) to govern distinct front- and back-stage board performance. Although seldom used to screen board candidates, behavioral sensitivity of directors may be higher in high governance-rated boards where less institutional control over non-conformance also occurs. The role and effect of CQ in the context of boards has not previously been discussed. Implications for practice and for future research are noted.

Keywords: Board governance, agency theory, resource dependence theory, behavioral models, director characteristics, team dynamics, information asymmetry, cultural intelligence, professional capital

Suggested Citation

Charas, Solange, Boardroom Theater: Actors, Actions and Their Consequences (January 1, 2012). The Second International Conference on Engaged Management Scholarship. Available at SSRN: https://ssrn.com/abstract=2084811

Solange Charas (Contact Author)

Case Western Reserve University ( email )

10900 Euclid Ave.
Cleveland, OH 44106
United States

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