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The Independence Paradox: (im)possibilities facing non‐executive directors in The Netherlands

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  • Reggy Hooghiemstra
  • Jaap Van Manen

Abstract

The paper adds to our knowledge of what non‐executive directors do, knowledge which is still in its infancy. More specifically, it reports the findings of a survey among more than 250 Dutch non‐executive directors regarding their roles and limitations. Although the majority agreed that monitoring is their main duty, they also expressed doubts whether they are really able to carry out this “watchdog role” effectively. The primary limitation is sought in the asymmetry of information which gives rise to the so‐called “independence paradox”: in obtaining adequate information non‐executives are dependent on the executives they are expected to supervise and to be independent from.

Suggested Citation

  • Reggy Hooghiemstra & Jaap Van Manen, 2004. "The Independence Paradox: (im)possibilities facing non‐executive directors in The Netherlands," Corporate Governance: An International Review, Wiley Blackwell, vol. 12(3), pages 314-324, July.
    • Handle: RePEc:bla:corgov:v:12:y:2004:i:3:p:314-324
    DOI: 10.1111/j.1467-8683.2004.00372.x
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    References listed on IDEAS

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    1. Stiles, Philip & Taylor, Bernard, 2001. "Boards at Work: How Directors View their Roles and Responsibilities," OUP Catalogue, Oxford University Press, number 9780198288763.
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    1. Pieter‐Jan Bezemer & Gregory F. Maassen & Frans A. J. Van den Bosch & Henk W. Volberda, 2007. "Investigating the Development of the Internal and External Service Tasks of Non‐executive Directors: the case of the Netherlands (1997–2005)," Corporate Governance: An International Review, Wiley Blackwell, vol. 15(6), pages 1119-1129, November.
    2. Leung, Sidney & Richardson, Grant & Jaggi, Bikki, 2014. "Corporate board and board committee independence, firm performance, and family ownership concentration: An analysis based on Hong Kong firms," Journal of Contemporary Accounting and Economics, Elsevier, vol. 10(1), pages 16-31.

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