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Perceptions of shareholders and directors on corporate governance: what we learn about director primacy
Author(s) -
Adrian Christofer,
Wright Sue
Publication year - 2020
Publication title -
accounting and finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.645
H-Index - 49
eISSN - 1467-629X
pISSN - 0810-5391
DOI - 10.1111/acfi.12418
Subject(s) - corporate governance , shareholder , accounting , business , perception , audit , power (physics) , shareholder primacy , corporate law , public relations , finance , political science , psychology , physics , quantum mechanics , neuroscience
This paper compares shareholder and director perceptions since the financial crisis on what constitutes effective corporate governance. We find three issues on which they have differing perceptions of good corporate governance: multiple directorships, provision of non‐audit services and CEO duality, and one issue on which shareholders express concern: directors' tenure. Our results highlight the need for regulations and recommendations to more subtly define good corporate governance practices in these areas. Our results also support the theory of director primacy, providing empirical evidence that this description of corporate power is accurate even for issues on which shareholders and directors differ.