The Role of Board Characteristics in Effective Corporate Governance: The Case of Airbus Group
20 Pages Posted: 24 Jan 2017
Date Written: January 20, 2017
Recent financial crises, economic collapses, and the fall of giant corporations due to accounting fraud and governance irregularities has brought corporate governance to the limelight especially with regard to the role of the board of directors. The board of directors is charged with monitoring and advising management and likewise providing strategic direction for the corporation. Board characteristics are instrumental towards the effective implementation of corporate governance principles in firms. This study evaluates the influence of board characteristics of; board composition and independence, board size, board diversity, board meetings and committee structure on effective corporate governance practices in Airbus group. This paper adopts a qualitative approach through which secondary data obtained from the corporate governance report of the board of directors for 2015 is analyzed. The findings of the study highlight the significance of key board characteristics features in ensuring effective corporate governance practices. Therefore the implication of this study is for corporations to apply recommended board characteristic features which serve as a catalyst towards effective corporate governance in corporations.
Keywords: Board characteristics, Board of directors, Effectiveness, Corporate governance, Airbus group
JEL Classification: G30, G34, M41, M49
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