Evaluating the Effectiveness of Corporate Boards

Corporate Governance: The International Journal of Business in Society, Emerald Publishing Ltd. doi: 10.1108/CG-08-2018-0275

18 Pages Posted: 7 Dec 2018

Date Written: November 19, 2018

Abstract

Purpose – This paper examines how board evaluations have emerged as an important tool in public policy and corporate practice for enhancing board effectiveness.

Design/methodology/approach – We review the extensive literature on effectiveness and the emerging literature on board evaluation to identify ways to assess the current policy direction for external evaluation of corporate boards.

Findings – The paper develops an integrated framework of effectiveness that can be used as a tool for board evaluation, in particular for externally facilitated exercises.

Research limitations/implications – Through its integration of prior conceptual work this paper advances our theoretical understanding of this emerging part of policy and practice, with to-date lack much empirical basis.

Practical implications – The framework we develop shows ways to focus how the practice is conducted by boards and external evaluators alike.

Social implications – It can also help policy formation by pointing out the limitations as well as benefits of various policy options.

Originality/value – In pointing to ways to develop study of the field through empirical research it provides direction for future academic research. It also identifies a need for and direction toward the professionalization of practice.

Keywords: Board evaluation, board effectiveness, corporate governance, directors

JEL Classification: M1, M48, G30, G34

Suggested Citation

Nordberg, Donald and Booth, Rebecca, Evaluating the Effectiveness of Corporate Boards (November 19, 2018). Corporate Governance: The International Journal of Business in Society, Emerald Publishing Ltd. doi: 10.1108/CG-08-2018-0275, Available at SSRN: https://ssrn.com/abstract=3287462

Donald Nordberg (Contact Author)

Bournemouth University ( email )

Executive Business Centre, 89 Holdenhurst Road,
Bournemouth, BH8 8EB
United Kingdom

HOME PAGE: http://staffprofiles.bournemouth.ac.uk/display/dnordberg

Rebecca Booth

Independent ( email )

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