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Description
Entering the Boardroom: A Glance at Director Selection Decisions of FirmsPast scandals like Enron and Worldcom as well as discussions on the reasons for the worldwide financial crisis have caused many debates on the effectiveness of corporate governance and increased public awareness of boards relevance as monitors of opportunistic and overly risky managers. However, evaluating boards of directors and the effectiveness of their role and task fulfillment requires an understanding of the process majorly impacting and
Past scandals like Enron and Worldcom as well as discussions on the reasons for the worldwide financial crisis have caused many debates on the effectiveness of corporate governance and increased public awareness of boardsÕ relevance as monitors of opportunistic and overly-risky managers. However, evaluating boards of directors and the effectiveness of their role and task fulfillment requires an understanding of the process majorly impacting and preceding board composition Ð the entering of the boardroom.
The author aims at adding to corporate governance research by studying director selection decisions of firms, which is highly relevant both for research and practice. We will only be able to contribute to an improvement of the crucial monitoring, advice and resource providing role of boards and finally of corporate governance in general, if we get a more fine-grained understanding of the decisions, actors, and factors relevant for and impacting board member selection.
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