Corporate Governance and the Effectiveness of Boards

Overview

Key facts

Research on boards focuses on examining how they influence firm strategic decisions and outcomes. Traditionally, this research focuses on linking board and/or individual characteristics to measures of firm decision-making and performance. 

More recently, researchers have begun to focus on contextualizing the role of boards in determining firm decisions and outcomes. Various contextual variables such as formal (law, regulations, quality of government) and informal institutions (culture, values, trust) have been considered as determinants of the way boards are characterized and formed, what their roles are, and how their members act and decide.

At the same time, part of the research on boards has been directed toward researching cognitive and behavioral aspects of teams’ and boards’ decision-making processes. 

Studies in this field aim at opening the so-called “black box” to find out how interactions between the individual team and board members affect decision making, team, and board effectiveness and, ultimately, also organizational performance. 

Among other things, this research focuses on analyzing the importance of behavioral and cognitive aspects such as trust, conflict and conflict management, commitment, information sharing, reflexivity, etc. on the team and organizational performance.

Education

The Corporate Governance and the Effectiveness of Boards programme at the University of Groningen aims to determine to what extent their questions, methods, data, and outcomes are complementary or substitutes. Our approach is multi-disciplinary, meaning that we discuss research from economics, finance, management and sociology, and psychology. 

The programme also deals with measurement issues and discuss datasets and methodologies to use these datasets in research. Participants are invited to present their own research (ideas) in the field of board effectiveness.