The relative power of ceos and boards of directors: Associations with corporate performance
Strategic Management JournalPublished 1 February 1991
John A. Pearce, Shaker A. Zahra
Citations639
SJR quartileQ1
SJR score10.18
SNIP3.84
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TL;DR
The results showed significant differences among the four board types in their characteristics, internal process, decision-making styles, board effectiveness, and contribution to company performance.
Abstract
Abstract A typology of the relative powers of the chief executive officer and the board of directors was derived based on the literature, highlighting four situations: Caretaker, Statutory, Proactive and Participative boards. Data collected from Fortune 500 Industrial and Fortune 500 Service corporations supported the typology. The results showed significant differences among the four board types in their characteristics, internal process, decision‐making styles, board effectiveness, and contribution to company performance. Powerful boards were associated with superior corporate financial performance.
Keywords
Business, Management and Accounting
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