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
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: Suggested Citation