Session 214

Director Attributes, Director Actions and Director Effectiveness

Track O

Date: Tuesday, October 6, 2015

 

Time: 11:00 – 12:15

Paper

Room: Director's Row J


Session Chair:

  • Weiwen Li, Sun Yat-sen University

Title: Broken Promises? Reconsidering Director Effectiveness from a Psychological Contract Perspective

Authors

  • Francois Neville, Georgia State University
  • Ryan Currie, Georgia State University

Abstract: Although strategic leadership and governance scholars have long focused on understanding director effectiveness, it remains a complex and nuanced undertaking. In this regard, recent work increasingly suggests potential negative consequences of deficient and/or excessive director monitoring and/or resource provisioning in terms of how it may influence CEO behavior and actions, as well as organizational performance. We build on these suggestions and articulate psychological contract framework of director effectiveness. Concretely, adopting the CEO’s point-of-view, we regard director monitoring and resource provision functions as promised and delivered inducements that influence how a CEO may perform his or her tasks and job. This novel theoretical stance allows us to articulate how misalignment (i.e. deficiencies or excesses) between promised and delivered director monitoring and/or resource provisioning may influence CEO behavior and actions in unsuspecting ways. We build on these developments to outline an agenda for future research and suggest noteworthy implications for practice.

Title: Exploring the Impact of Directors’ Functional Backgrounds on Board Discussion of Financial Versus Strategic Controls

Authors

  • Skylar Rolf, University of Nebraska-Lincoln
  • Chris Tuggle, University of Nebraska-Lincoln

Abstract: Investigating the influence that a board of directors has on firm performance remains a central area of interest in the governance literature. However, little is known about the relationship between the functional backgrounds of board members and the attention the board gives to financial versus strategic controls during board meetings. In this proposed study, we will examine this relationship by analyzing hundreds of transcripts from board meetings for 230 firms over a 20 year time period. In addition, we will test the effects of deviation from prior firm performance as a moderator of this relationship. Finally, our study will shed further light on the relationship between the type of controls attended to by the board of directors and firm performance.

Title: How Routine and Adaptive Expertise Helps Outside Directors Shape Strategy

Authors

  • Razvan Lungeanu, Pennsylvania State University
  • Edward Zajac, Northwestern University

Abstract: This study provides a theoretical and empirical analysis of how, why, and when outside directors shape firm strategy. We blend insights from research on corporate governance and human cognition to propose that director influence is a function of their combined routine and adaptive expertise, which we define and measure in terms of the complementary aspects of an individual director’s experiences. We use this notion of blended expertise to identify a priori the individual directors whose optimal level of expertise makes them the most likely ‘movers and shakers’ of firm strategy, and we specify the moderating role played by the source and timing of expertise acquisition, and by the context of expertise transfer. We discuss implications to research on director selection, director expertise, and firm strategy.

Title: Non-CEO Inside Directors and the CEO’s Personal Use of Corporate Aircraft in Poorly Performing Firms

Authors

  • Orhun Guldiken, Manhattan College
  • Mirko Benischke, Erasmus University Rotterdam

Abstract: Corporate governance researchers have long assumed that inside directors are unlikely to detect managerial opportunism. In contrast, we relax this assumption by suggesting that certain inside directors can in fact be effective monitors and help lower agency costs. By using social exchange theory and relying on the literature on corporate elites, we identify factors that make non-CEO inside directors likely to alleviate one common type of agency problem – the CEO’s personal use of corporate aircraft. In a sample of 131 low-performing Fortune 1000 firms, our results show that the CEO’s personal use of corporate aircraft is lower when (1) a greater proportion of non-CEO inside directors are appointed to the board before the incumbent CEO took office and (2) when non-CEO inside directors are younger.

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


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