THE TWO DIMENSIONS OF CORPORATE GOVERNANCE INDEPENDENCE

Abstract

The efforts to improve on the stewardship role of corporate governance have mainly emanated from external forces, such as pressure from shareholder groups, regulators, organized exchanges and courthouses. However, past research and field evidence, not the least being the Enron's scandal, have demonstrated that the independent structure of the board is far from being a guarantee to its optimum performance. Building on survey results administered to individuals with significant boardroom experience, it is argued in this paper that the quest for complete autonomy in the boardroom should be extended beyond the structural configuration to also include the psychological independence dimension.

Citation

Rebeiz, K.S. (2005), "THE TWO DIMENSIONS OF CORPORATE GOVERNANCE INDEPENDENCE", Hirschey, M., John, K. and Makhija, A.K. (Ed.) Corporate Governance (Advances in Financial Economics, Vol. 11), Emerald Group Publishing Limited, Leeds, pp. 209-230. https://doi.org/10.1016/S1569-3732(04)11009-8