An Analysis of Changes in Board Structure During Corporate Governance Reforms

33 Pages Posted: 11 Aug 2006

See all articles by Patrick McColgan

Patrick McColgan

University of Strathclyde

David Hillier

University of Strathclyde - Department of Accounting and Finance

Abstract

This study examines the evolution of company board structure during a period of corporate governance reform. Using data over a time period following the publication of the Cadbury Report (1992) we present evidence of an increase in the independence of UK boards, as measured by an increased willingness to employ independent non-executive directors, and to separate the positions of the CEO and the Chairman of the Board. In examining the determinants of these changes, we find that boards change more readily in response to changes in managerial control, equity issuance and corporate performance than changes in the firm-specific operating environment of companies.

Suggested Citation

McColgan, Patrick and Hillier, David, An Analysis of Changes in Board Structure During Corporate Governance Reforms. European Financial Management, Vol. 12, No. 4, pp. 575-607, September 2006. Available at SSRN: https://ssrn.com/abstract=923685 or http://dx.doi.org/10.1111/j.1468-036X.2006.00332.x

Patrick McColgan

University of Strathclyde ( email )

Curran Building
100 Cathedral Street
Glasgow, G4 0LN
United Kingdom
+44 1415483690 (Phone)

David Hillier (Contact Author)

University of Strathclyde - Department of Accounting and Finance ( email )

Curran Building
100 Cathedral Street
Glasgow G4 0LN
United Kingdom
44 0141 330 4809 (Phone)
44 0141 330 4442 (Fax)

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