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The Inner Working of the Board : Evidence from the Emerging Markets

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  • de Haas, Ralph

    (Tilburg University, School of Economics and Management)

  • Ferreira, Daniel
  • Kirchmaier, Tom

Abstract

We survey non-executive directors in emerging markets to obtain detailed information about the inner workings of corporate boards across a variety of institutional settings. We document substantial variation in the structure and conduct of boards as well as in directors' perceptions of the local legal environment. Our analysis indicates that directors who feel adequately empowered by local legislation are less likely to vote against board proposals. They also form boards that play a stronger role in the company's strategic decision-making. The evidence suggests that a supportive legal environment allows directors to focus more on their advisory role rather than on their monitoring role.
(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • de Haas, Ralph & Ferreira, Daniel & Kirchmaier, Tom, 2017. "The Inner Working of the Board : Evidence from the Emerging Markets," Other publications TiSEM b07d618f-60e7-454c-9cbe-6, Tilburg University, School of Economics and Management.
    • Handle: RePEc:tiu:tiutis:b07d618f-60e7-454c-9cbe-62a2e11334c5
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    File URL: https://repository.tilburguniversity.edu/bitstreams/84264ba0-6234-4507-8a47-d0e08597ac7b/download
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    References listed on IDEAS

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    Cited by:

    1. Anton, Sorin Gabriel & Nucu, Anca Elena Afloarei, 2022. "On the role of institutional factors in shaping working capital management policies: Empirical evidence from European listed firms," Economic Systems, Elsevier, vol. 46(2).

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    More about this item

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • K22 - Law and Economics - - Regulation and Business Law - - - Business and Securities Law

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