Session 144

Board Structure: What Works Best?

Track O

Date: Tuesday, October 6, 2015

Track X

Time: 17:30 – 18:45

Common Ground

Room: Plaza Court 3


Facilitator:

  • Ryan Krause, Texas Christian University

Title: Board Directors and Firm Reputation: The Effect of Who They Are, What They Know, and Who They Know

Authors

  • Susana Velez-Castrillon, University of West Georgia

Abstract: We use upper echelons theory to derive hypotheses about the individual and joint effects of the board’s human capital, social capital, and demographic diversity on firm reputation. Our results show that the board’s social connections enhance the benefits on the firm’s reputation of having strong board human capital. We also detected a tradeoff in the case of diversity, with board social connections augmenting the impact of board gender diversity but weakening that of board age diversity on organizational reputation. Our results provide a more nuanced picture of how boards of directors serve firms and have important implications for director selection.

Title: Friend or Asset: Does the Selection of Former Government Officials to the Board Assist in Political Strategy?

Authors

  • Scott Kuban, Texas A&M University
  • Michael Nalick, Texas A&M University

Abstract: It has been noted that the number of public officials serving on boards of directors have increased dramatically, and that when these individuals join a board, the company has an intended purpose of using their background to minimize hazards and gain benefits from government interaction and assist in a firm’s corporate political activities. However, it has also been shown that organizational elites tend to demonstrate a homogeneous set of political beliefs. Therefore, we investigate 1) the influence of the similarity of the political beliefs of the other board members (in aggregate) and the selected former government official and 2) the influence of the board appointment of a former government official on a strategic outcome, specifically corporate political activity.

Title: Lead Directors: A Natural Experiment of Coercive versus Voluntary Adoption

Authors

  • Wei Shi, Indiana University
  • Brian Connelly, Auburn University

Abstract: Lead directors preside over independent directors, occupying an influential position in organizations. This phenomenon has diffused rapidly among publicly-traded firms over the past fifteen years. Academics, however, have yet to weigh in on the consequences. In this study, we suggest that outcomes may be vastly different depending on why the firm adopted the position. We take advantage of a natural experiment wherein NYSE firms were mandated in 2003 to take a lead director whereas NASDAQ firms received no mandate. We find that NYSE adopters, who are complying with an institutional mandate, are less likely than NASDAQ adopters, who volitionally take on lead directors, to introduce good governance and, consequently, NYSE adopters have lower firm performance than NASDAQ adopters in the post-adoption period.

Title: Nexus of Committees Boards of Directors and Intra-firm Social Networks

Authors

  • Hansin Bilgili, University of Arkansas
  • Jonathan Johnson, University of Arkansas
  • Joanna Tochman Campbell, University of Cincinnati
  • Alan Ellstrand, University of Arkansas
  • Tsvetomira Bilgili, University of Memphis

Abstract: Building on resource dependence and social network theory, we outline the antecedents and consequences of centralization and density in the social networks of boards of directors. We use directors' joint committee membership and demographics to infer social relationships embedded in intra-board networks. We contribute to the corporate governance literature by empirically testing the following research questions: a) How do external environmental and internal organizational demands influence board network structures?, and b) Are some structures more conducive to generating greater organizational returns than others?

Title: Which Board Leadership Structure Works Best?: A Fuzzy Set Analysis of Corporate Governance Bundles

Authors

  • William Judge, Old Dominion University
  • Orhun Guldiken, Manhattan College
  • Stav Fainshmidt, Florida International University

Abstract: For several decades, previous studies have reported inconsistent findings regarding the association between board leadership structure and firm performance. Furthermore, previous research has ignored the relatively new development of having an independent lead director appointed within the board. In this study, we conduct a fuzzy set analysis of six causal conditions prevalent in the literature to determine whether there are one or several optimal board leadership structures. Our empirical results reveal that there are five different high-performing board leadership configurations, and four different low-performing configurations. These results suggest that future research needs to consider the nonlinear configurational context in order to best determine how board leadership influences firm performance, and that there are multiple ways to achieve high levels of firm performance.

Title: Who Can Stand Up For Good Governance? Evidence from Board Committees

Authors

  • Laura Jacobey, University of Goettingen
  • Michael Wolff, University of Goettingen

Abstract: This proposal addresses the distinction between symbolic or substantial roles of board committees as well as possible outcomes of tendencies towards such substance and symbolism. Drawing on institutions theory, we assume that committees can be considered as firm-level institutions which can established and maintained isomorphically, the consequence being that the rules and routines formally tied to committees are not substantially applied, but only ceremonially imitated in order to gain legitimacy. In this context, using the example of audit committees, we contend that companies with a ceremonial audit committee do not take their purpose of seriously, which we expect to become visible in a lower decision making quality. Furthermore, we address the interdependency of the institutional role of audit committees and national institutions, specifically shareholder protection.

All Sessions in Track O...

Sun: 08:00 – 09:15
Session 40: Strategic Leadership and Governance Expanding: Shifts and New Directions in Research
Sun: 09:45 – 11:00
Session 283: Editor Panel: Publishing Strategic Leadership and Governance Research
Sun: 11:15 – 12:30
Session 38: Big Game Hunting: Accessing and Interacting with Senior Executives for Empirical Research
Sun: 16:15 – 17:30
Session 139: Do Top Managers Matter? Expanding the Focus and Knowledge
Session 147: What Could Strategic IT Governance look like in Smart Cities?
Sun: 17:45 – 00:00
Session 324: Strategic Leadership and Governance Business Meeting
Mon: 08:00 – 09:15
Session 140: New Perspectives on the Outside Director Selection Process
Mon: 11:15 – 12:30
Session 141: Politics as Usual? Political Ideology in the Excutive Suite and Boardroom
Session 220: Perspectives on CEO Compensation
Mon: 13:45 – 15:00
Session 142: Top Management Teams, Senior Executives and Corporate outcomes
Session 215: Personality and Values in Strategic Leadership
Mon: 16:45 – 18:00
Session 216: Blame and Stigma in Response to Poor Orgnizational Outcomes
Session 218: Consequences of Top Management Attitudes and Orientations for the Firm
Tue: 08:00 – 09:15
Session 217: Leadership and Governance in Family Firms
Session 309: Looking Good and Sounding Better: Impression Management by CEOs
Tue: 11:00 – 12:15
Session 145: Strategic Leadership and Corporate Strategy
Session 214: Director Attributes, Director Actions and Director Effectiveness
Tue: 14:15 – 15:30
Session 146: Gender and Diversity in Strategic Leadership and Governance
Tue: 15:45 – 17:00
Session 219: A Tough Crowd: Critical Examinations by Owners and Stakeholders
Tue: 17:30 – 18:45
Session 144: Board Structure: What Works Best?
Session 189: Antecedents and Consequences of CEO Incentives

All Sessions in Track X...

Sun: 08:00 – 09:15
Session 74: Open Strategy Workshops: Lessons Learned from Practising Strategizing
Sun: 09:45 – 11:00
Session 29: The Elephant in the Room: How public policy and institutions help drive innovation, entrepreneurship, and firm performance
Session 76: The evolution of the strategy as a profession and the field of strategy
Sun: 11:15 – 12:30
Session 12: Environmental Entrepreneurship: How and When do Entrepreneurs address Environmental Degradation?
Session 38: Big Game Hunting: Accessing and Interacting with Senior Executives for Empirical Research
Sun: 13:45 – 14:30
Session 307: Lifetime Achievement Award Recipient
Sun: 14:45 – 15:45
Session 7: New Frontiers in Technologies, Fields, and Business Models: Implications for Academic and Practice Knowledge Creation
Sun: 16:15 – 17:30
Session 61: The Institutional Level of Strategizing Activities
Session 261: Knowledge Creation and Sharing in Virtual Communities
Mon: 08:00 – 09:15
Session 72: External Influences: Audiences and Media
Session 126: Entry Mode & Cross-Border Acquisitions
Session 140: New Perspectives on the Outside Director Selection Process
Mon: 09:45 – 11:00
Session 8: Elevating our Understanding of Organizational Performance: Bridging the Frontiers of Business and Corporate Strategies
Mon: 11:15 – 12:30
Session 149: Management and Coordination of Multinationals
Session 220: Perspectives on CEO Compensation
Mon: 13:45 – 15:00
Session 16: Human Capital and Innovation
Session 37: Political Ties: Knots or Bows?
Session 63: Political and Material Aspects of Strategy Making
Session 97: Accelerators, corporate VCs and new venture creation
Session 258: Explainng CSR: External Factors
Mon: 15:15 – 16:15
Session 227: Mergers, Acquisitions and Divestitures: Reconfiguring Resource Bases for Value Creation and Growth
Session 308: Strategy Beyond the Firm: Creating and Capturing Value from External Resources
Session 310: When the Smoke Clears: The Emergence of the Cannabis Industry
Session 311: Theory Fragmentation in Strategic Management?
Session 312: Climate Change: Why and How Should Strategic Management Care?
Mon: 16:45 – 18:00
Session 42: The Word is Out! Stakeholder Responses to Public Signals of Firms' Behaviors
Session 112: Acquisitions - Before the Deal
Tue: 08:00 – 09:15
Session 309: Looking Good and Sounding Better: Impression Management by CEOs
Tue: 09:45 – 10:45
Session 9: Whatever Happened to Theory in Strategic Management?
Tue: 11:00 – 12:15
Session 70: CEO Characteristics: Microfoundations of Behavioral Strategy
Tue: 14:15 – 15:30
Session 116: Acquisitions - After the Deal
Tue: 15:45 – 17:00
Session 52: Entrepreneurial business models
Session 219: A Tough Crowd: Critical Examinations by Owners and Stakeholders
Session 262: Pioneering Knowledge
Tue: 17:30 – 18:45
Session 144: Board Structure: What Works Best?
Session 208: Internationalization Strategies and Performance


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