Consensus in Diverse Corporate Boards

Consensus, Control and Corporate Boards∗

We investigate properties of shareholder-value maximizing corporate boards in situations where both the management and the board have expertise (or private information) relevant for the decision facing the corporation. We suppose that the board cannot directly monitor management in a way that eliminates distortions arising out of managerial agency. This creates a trade-off between improving inf...

Communication and Decision-Making in Corporate Boards

This paper develops a model of communication and decision-making in corporate boards. The key element of the paper is that the quality of board communication is endogenous, because it depends on the e¤ort directors put into trying to communicate their information to others. In the model, directors may have biases regarding board decisions and may also be reluctant to disagree with other directo...

Decision making dynamics in corporate boards

Members of boards of directors of large corporations who also serve together on an outside board, form the so called interlock graph of the board and are assumed to have a strong influence on each others’ opinion. We here study how the size and the topology of the interlock graph affect the probability that the board approves a strategy proposed by the Chief Executive Officer. We propose a meas...

Medical research oversight from the corporate governance perspective: comparing institutional review boards and corporate boards.

Stalled: Gender Diversity on Corporate Boards

I. THE PRESENT ...................................................................................... 8 A. The Numbers ................................................................................. 8 B. Private Initiatives .......................................................................... 9 C. Government Initiatives (or Lack Thereof) .................................. 11 1. Congress....