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

Ralph de Haas, Daniel Ferreira, Tom Kirchmaier

Research output: Working paperDiscussion paperOther research output

306 Downloads (Pure)

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 about the local legal environment. Further analysis indicates that directors who feel adequately empowered by local legislation are less likely to actively vote against board
proposals. They also form boards that play a stronger role in the company’s strategic decision-making. This suggests that a supportive legal environment allows directors to focus more on their advisory, as opposed to their monitoring, role.
Original languageEnglish
Place of PublicationTilburg
PublisherCentER, Center for Economic Research
Number of pages30
Volume2017-016
Publication statusPublished - 17 Mar 2017

Publication series

NameCentER Discussion Paper
Volume2017-016

Fingerprint

Legal environment
Emerging markets
Corporate boards
Monitoring
Non-executive directors
Strategic decision making
Vote
Legislation

Keywords

  • boards of directors
  • corporate governance
  • emerging markets

Cite this

de Haas, R., Ferreira, D., & Kirchmaier, T. (2017). The Inner Working of the Board: Evidence from the Emerging Markets. (CentER Discussion Paper; Vol. 2017-016). Tilburg: CentER, Center for Economic Research.
de Haas, Ralph ; Ferreira, Daniel ; Kirchmaier, Tom. / The Inner Working of the Board : Evidence from the Emerging Markets. Tilburg : CentER, Center for Economic Research, 2017. (CentER Discussion Paper).
@techreport{1c9e446cddc14efe96acea534be61baf,
title = "The Inner Working of the Board: Evidence from the Emerging Markets",
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 about the local legal environment. Further analysis indicates that directors who feel adequately empowered by local legislation are less likely to actively vote against boardproposals. They also form boards that play a stronger role in the company’s strategic decision-making. This suggests that a supportive legal environment allows directors to focus more on their advisory, as opposed to their monitoring, role.",
keywords = "boards of directors, corporate governance, emerging markets",
author = "{de Haas}, Ralph and Daniel Ferreira and Tom Kirchmaier",
year = "2017",
month = "3",
day = "17",
language = "English",
volume = "2017-016",
series = "CentER Discussion Paper",
publisher = "CentER, Center for Economic Research",
type = "WorkingPaper",
institution = "CentER, Center for Economic Research",

}

de Haas, R, Ferreira, D & Kirchmaier, T 2017 'The Inner Working of the Board: Evidence from the Emerging Markets' CentER Discussion Paper, vol. 2017-016, CentER, Center for Economic Research, Tilburg.

The Inner Working of the Board : Evidence from the Emerging Markets. / de Haas, Ralph; Ferreira, Daniel; Kirchmaier, Tom.

Tilburg : CentER, Center for Economic Research, 2017. (CentER Discussion Paper; Vol. 2017-016).

Research output: Working paperDiscussion paperOther research output

TY - UNPB

T1 - The Inner Working of the Board

T2 - Evidence from the Emerging Markets

AU - de Haas, Ralph

AU - Ferreira, Daniel

AU - Kirchmaier, Tom

PY - 2017/3/17

Y1 - 2017/3/17

N2 - 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 about the local legal environment. Further analysis indicates that directors who feel adequately empowered by local legislation are less likely to actively vote against boardproposals. They also form boards that play a stronger role in the company’s strategic decision-making. This suggests that a supportive legal environment allows directors to focus more on their advisory, as opposed to their monitoring, role.

AB - 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 about the local legal environment. Further analysis indicates that directors who feel adequately empowered by local legislation are less likely to actively vote against boardproposals. They also form boards that play a stronger role in the company’s strategic decision-making. This suggests that a supportive legal environment allows directors to focus more on their advisory, as opposed to their monitoring, role.

KW - boards of directors

KW - corporate governance

KW - emerging markets

M3 - Discussion paper

VL - 2017-016

T3 - CentER Discussion Paper

BT - The Inner Working of the Board

PB - CentER, Center for Economic Research

CY - Tilburg

ER -

de Haas R, Ferreira D, Kirchmaier T. The Inner Working of the Board: Evidence from the Emerging Markets. Tilburg: CentER, Center for Economic Research. 2017 Mar 17. (CentER Discussion Paper).