ABSTRACT

In the debate about effective boards, the size and composition of boards and the statutory independence of board members have attracted most attention. A considerable amount of studies have empirically addressed the relationship between board attributes and corporate performance. The results from this research have been far from conclusive (see, for example, Hermalin and Weisbach, 2001). This ambiguity has been used to underscore the relevance of research on actual board behaviour (for example, Dalton et al., 1999; Daily et al., 2003; Forbes and Milliken, 1999; Hillman and Dalziel, 2003). Although formal board attributes may create the conditions for effectiveness, the underlying complexity of the decision-making process and the behaviour within the board may likewise affect board and corporate performance. Therefore, a new research agenda on actual board behaviour may offer new research opportunities by addressing, for example, knowledge sharing within boards and trust building, cohesion and the (ab)use of power in the boardroom.