TY - JOUR
T1 - Effective corporate monitoring
T2 - Independence, motivation and means
AU - Drennan, Lyndal
AU - Kelly, Simone
AU - McNamara, Ray
AU - Martin, Michelle
PY - 2012
Y1 - 2012
N2 - A feature of the literature on the role of Boards of Directors is the mixed and contradictory findings. This research used continuous listing compliance as a measure of Board performance. A matched pairs design was employed, using governance data on 30 board attributes for firms listed on the Australian Stock Exchange from 1992 to 2000. Factor analysis was used to identify constructs associated with Board composition and firm performance. Discriminant analysis confirmed that the resultant model of performance was a significant predictor of firms’ ability to maintain continuous listing compliance. Neither the independence nor assembled knowledge variables were separately significant. Variables capturing directors’ motivation to monitor, and board cohesiveness were significant.
AB - A feature of the literature on the role of Boards of Directors is the mixed and contradictory findings. This research used continuous listing compliance as a measure of Board performance. A matched pairs design was employed, using governance data on 30 board attributes for firms listed on the Australian Stock Exchange from 1992 to 2000. Factor analysis was used to identify constructs associated with Board composition and firm performance. Discriminant analysis confirmed that the resultant model of performance was a significant predictor of firms’ ability to maintain continuous listing compliance. Neither the independence nor assembled knowledge variables were separately significant. Variables capturing directors’ motivation to monitor, and board cohesiveness were significant.
UR - http://www.irbrp.com/previous_issue/July/2012
M3 - Article
SN - 1832-9543
VL - 8
SP - 65
EP - 84
JO - International Review of Business Research Papers (Online)
JF - International Review of Business Research Papers (Online)
IS - 5
ER -