Publications
Publications
- 2016
What Factors Drive Director Perceptions of Their Board's Effectiveness?
By: Boris Groysberg, Paul M. Healy and Richard Ellis Crum
Abstract
We use a survey of directors to collect data on their ratings of board effectiveness as well as board internal dynamics and key processes. Controlling for many of the governance metrics examined by prior research, we find that directors’ ratings of their boards’ effectiveness are positively related to measures of board internal dynamics (such as relations with the CEO and senior management, and its ability to perform well as a team), director engagement (reflected in meeting preparedness), and the breadth of the board’s experiences. Tests for a subset of firms that are identified in the survey show that boards rated as ineffective have a higher likelihood of losses one year after the survey, consistent with effective governance enhancing the management of risk.
Keywords
Competency and Skills; Management Analysis, Tools, and Techniques; Relationships; Measurement and Metrics; Risk Management; Governance
Citation
Groysberg, Boris, Paul M. Healy, and Richard Ellis Crum. "What Factors Drive Director Perceptions of Their Board's Effectiveness?" Working Paper, February 2016.
About The Authors
