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The Impact of Changes in the Corporate Governance System on the Boards of Directors: Experiences from listed Swedish Companies

Jonnergård, Karin LU ; Kärreman, Matts LU and Svensson, Claes LU (2004) In International Studies of Management and Organization 34(2). p.113-153
Abstract
The core objective of this article is to develop and apply a framework based on institutional theory for investigating and exploring how boards of directors respond to changes in the national pattern of corporate governance. In contrast to most models of institutional changes that are based on the structure of the change process, our framework focuses on the content of institutional changes in terms of changing actions, values and cognitions. By studying and comparing changes in action, values and cognition we are able to comprehend the content and degree of institutionalization of new patterns of behavior. The framework is applied to the behavior of boards in Swedish publicly-listed companies in 1994 and 1999. The results reveal... (More)
The core objective of this article is to develop and apply a framework based on institutional theory for investigating and exploring how boards of directors respond to changes in the national pattern of corporate governance. In contrast to most models of institutional changes that are based on the structure of the change process, our framework focuses on the content of institutional changes in terms of changing actions, values and cognitions. By studying and comparing changes in action, values and cognition we are able to comprehend the content and degree of institutionalization of new patterns of behavior. The framework is applied to the behavior of boards in Swedish publicly-listed companies in 1994 and 1999. The results reveal significant changes in both the decision criteria applied by the boards as well as their activities. At the same time, we find no significant changes concerning directors’ attitudes towards the role of the stock market or other governance mechanisms between 1994 and 1999. Our interpretation is that there is a tendency for actors to change their behavior in accordance with their anticipations about change, while changes in value systems are more inert. The process of institutionalization is thereby, in part, given space for a certain indefinitability regarding the outcome of the institutionalization of a new pattern of board behavior. (Less)
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author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
corporate governance, board of directors, Sweden, Institutional Teory, PLC
in
International Studies of Management and Organization
volume
34
issue
2
pages
113 - 153
publisher
M. E. Sharpe
ISSN
0020-8825
language
English
LU publication?
yes
id
4dfd9d73-9803-4a77-8381-969724efa399 (old id 1386339)
date added to LUP
2009-04-20 12:27:21
date last changed
2016-11-14 15:20:53
@misc{4dfd9d73-9803-4a77-8381-969724efa399,
  abstract     = {The core objective of this article is to develop and apply a framework based on institutional theory for investigating and exploring how boards of directors respond to changes in the national pattern of corporate governance. In contrast to most models of institutional changes that are based on the structure of the change process, our framework focuses on the content of institutional changes in terms of changing actions, values and cognitions. By studying and comparing changes in action, values and cognition we are able to comprehend the content and degree of institutionalization of new patterns of behavior. The framework is applied to the behavior of boards in Swedish publicly-listed companies in 1994 and 1999. The results reveal significant changes in both the decision criteria applied by the boards as well as their activities. At the same time, we find no significant changes concerning directors’ attitudes towards the role of the stock market or other governance mechanisms between 1994 and 1999. Our interpretation is that there is a tendency for actors to change their behavior in accordance with their anticipations about change, while changes in value systems are more inert. The process of institutionalization is thereby, in part, given space for a certain indefinitability regarding the outcome of the institutionalization of a new pattern of board behavior.},
  author       = {Jonnergård, Karin and Kärreman, Matts and Svensson, Claes},
  issn         = {0020-8825},
  keyword      = {corporate governance,board of directors,Sweden,Institutional Teory,PLC},
  language     = {eng},
  number       = {2},
  pages        = {113--153},
  publisher    = {ARRAY(0x7f6d3f0)},
  series       = {International Studies of Management and Organization},
  title        = {The Impact of Changes in the Corporate Governance System on the Boards of Directors: Experiences from listed Swedish Companies},
  volume       = {34},
  year         = {2004},
}