Board composition and the commission of illegal acts: an investigation of Fortune 500 companies

Article Abstract:

Advocates of corporate reform have long argued that the increased presence of 'outsiders' on corporate boards would result in better company performance with fewer unethical or illegal actions taken by the boards, and many corporations and regulatory bodies have adopted the practice of requiring at least two non-management members on boards of directors. However, the truth of the theory of outside directors has never been adequately tested. Using data from Fortune 500 companies that have committed illegal acts, it was found that there is no support for the hypothesis that adding outsiders to a company's board of directors will lessen the extent or degree of the firm's illegal activities, and no support for outside directors' contributing to the well-being of the company's shareholders was also not found.

Usage, Laws, regulations and rules, Corporations, Executives, Corporation law, Powers and duties, Business ethics, Leadership, Corporate officers, Illegality

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Diversifying entry: some ex ante explanations for postentry survival and growth

Article Abstract:

Links between theoretically determined preentry conditions and the postentry performance of diversifying entries made by large industrial firms are examined. Industry, firm, and relatedness variables explained up to 26 percent of the variance in performance, which was measured as the survival, sales growth, and market share growth of entrant businesses. Selling and advertising intensity in an entered industry, scale of entry, and the interaction of scale and seller concentration have strong influences on postentry performance. Other variables show moderate associations. Overall, industry factors appear to have stronger effects than firm-level or relatedness variables. (Reprinted by permission of the publisher.)

Diversification in industry, Industrial diversification, Corporate growth

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Directors' characteristics and committee membership: an investigation of type, occupation, tenure, and gender

Article Abstract:

This study examined the composition of corporate board committees. The characteristics of occupation, type, tenure, and gender are examined in relationship to directors' membership on the four board committees that are typically the most influential and powerful - the audit, nominating, compensation, and executive committees. The results show strong evidence to suggest the composition of these committees does differ in rather significant ways from that of corporate boards in general. There is also evidence that certain directorial characteristics take on more or less importance within particular groups. (Reprinted by permission of the publisher.)

Demographic aspects, Management research, Management committees

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