Open Access. Powered by Scholars. Published by Universities.®

Business Commons

Open Access. Powered by Scholars. Published by Universities.®

Social and Behavioral Sciences

PDF

Research outputs 2014 to 2021

2021

Agency theory

Articles 1 - 1 of 1

Full-Text Articles in Business

Too Unsafe To Monitor? How Board-Ceo Cognitive Conflict And Chair Leadership Shape Outside Director Monitoring, Dennis B. Veltrop, Pieter-Jan Bezemer, Gavin Nicholson, Amedeo Pugliese Feb 2021

Too Unsafe To Monitor? How Board-Ceo Cognitive Conflict And Chair Leadership Shape Outside Director Monitoring, Dennis B. Veltrop, Pieter-Jan Bezemer, Gavin Nicholson, Amedeo Pugliese

Research outputs 2014 to 2021

Research into boards of directors has provided mixed support for the view that outside directors' independence or leadership by an independent chair improves monitoring. In this study, we use a micro-level approach to provide a better understanding of why outside directors have difficulty in monitoring the CEO. We highlight that an important reason for this lies in the boardroom dynamics associated with (a) outside directors' cognitive conflict with the CEO and (b) the chair's leadership of the board. Our inductive analyses of video observations of board meetings in five Australian corporations revealed the importance of chair participative leadership during disagreement …