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Corporate Boards, Investors and Their Relationships: accounts of accountability and corporate governing in action
Author(s) -
Pye Annie
Publication year - 2001
Publication title -
corporate governance: an international review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.866
H-Index - 85
eISSN - 1467-8683
pISSN - 0964-8410
DOI - 10.1111/1467-8683.00246
Subject(s) - shareholder , covert , accountability , constructive , accounting , business , action (physics) , corporate governance , institutional investor , shareholder value , value (mathematics) , public relations , political science , finance , law , process (computing) , linguistics , philosophy , physics , quantum mechanics , machine learning , computer science , operating system
This paper argues that constructive relationships between investors and boards have become crucial to running large organisations. Comparing interview data from Chairmen, Chief Executives and board members in 1987–89 and 1998–2000, this paper also considers the changing role of NEDs and influence of board culture which may constrain NEDs’ ability to perform effectively. While the board’s influence on shareholder value may be significant, the inability to account for its effectiveness or contribution appears surprising. The paper concludes that as shareholders exercise their “absolute rights” to question management, this may encourage more covert rather than overt behaviour, raising questions of accountability.