Independent Director - Abolish The Institution
12 Pages Posted: 21 Sep 2022
Date Written: August 17, 2022
We presented a very brief history of the emergence of the monitoring board to understand the situations that led to the reconceptualization of the board structure. We have surveyed the literature on the effectiveness of independent directors. The literature provides sufficient evidence that suggests the monitoring board model is ineffective in achieving the goal of creating internal constraints on managerial discretions. We propose that the regulators adopt the advisory board model and empower the shareholders.
Keywords: Corporate governance, monitoring board, supervisory board,independent directors,
JEL Classification: M00, M40, M48
Suggested Citation: Suggested Citation