The relative power of CEOs and boards of directors: associations with corporate performance

Article Abstract:

Powerful corporate boards are assumed to increase organizational effectiveness by providing business contacts, contributing to the development of goals and evaluating management, providing checks and balances, and creating a corporate identity. A review of business literature reveals four types of corporate boards. Caretaker boards are characterized by low power of both the board and the CEO. Statutory boards are characterized by a powerful CEO and a corporate board that acts as a 'rubber stamp'. Proactive boards are characterized by board powers greater than that of the CEO and typically are composed of outside directors. Participative boards are characterized by debate and discussion and policies being set by majority votes. A survey of executives in 15 Fortune 500 companies and interviews with CEOs and board members of 72 manufacturing firms reveals that participative boards are linked to the best corporate financial performance.

Corporate directors

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Corporate strategy and capital structure

Article Abstract:

Research shows that the traditional financial paradigm is complemented by a corporate strategy perspective in explaining capital structure in large corporations. The hypothesis was derived from a combination of previous research, Rumelt's diversification categories and validated financial contextual variables. The capital structure choice may be explained by a managerial choice perspective.

Management science, Strategic planning (Business)

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Towards a contingency theory of corporate planning: findings in 48 U.K. companies

Article Abstract:

Corporate planning is examined, and its roles are categorized as rapidly reactive, reducing uncertainty, integrative device per se, and basis for control. Surveys from 48 companies in the United Kingdom were used to evaluate the planners' roles. Vulnerable core technologies caused planners to be specialized and to use forecasting techniques.

Management, Surveys, Corporations, Economic forecasting, Great Britain

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