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Toward a Behavioral Theory of Boards and Corporate Governance

van Ees, Hans; Gabrielsson, Jonas LU and Huse, Morten (2009) In Corporate Governance 17(3). p.307-319
Abstract
Review A coherent alternative to an economic approach of corporate governance is missing. In this paper we take steps towards developing a behavioral theory of boards and corporate governance. Building upon concepts such as political bargaining, routinization of decision making, satisficing, and problemistic search, a behavioral theory of boards and corporate governance will focus more on (1) interactions and processes inside and outside the boardroom; (2) the fact that decision making is made by coalitions of actors and objectives are results of political bargaining; and (3) the notion that not only conflicting, but also cooperating, interests are parts of the boards' decision making and control over firm resources. The consequences are a... (More)
Review A coherent alternative to an economic approach of corporate governance is missing. In this paper we take steps towards developing a behavioral theory of boards and corporate governance. Building upon concepts such as political bargaining, routinization of decision making, satisficing, and problemistic search, a behavioral theory of boards and corporate governance will focus more on (1) interactions and processes inside and outside the boardroom; (2) the fact that decision making is made by coalitions of actors and objectives are results of political bargaining; and (3) the notion that not only conflicting, but also cooperating, interests are parts of the boards' decision making and control over firm resources. The consequences are a new research agenda for boards and corporate governance. The agenda will focus on actual instead of stylized descriptions of board behavior. In a behavioral perspective the emphasis on problems of coordination, exploration, and knowledge creation may dominate over problems of conflict of interest, exploitation, and the distribution of value. A future research agenda based on a behavioral framework calls for novel and adventurous research designs. A behavioral theory of boards and corporate governance will be closer to actual board behavior than the traditional economic approach and research about boards and corporate governance may thus become more actionable for practitioners. (Less)
Please use this url to cite or link to this publication:
author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
Board Processes, Corporate Governance, Board Composition, Board, Leadership, Board of Director Issues
in
Corporate Governance
volume
17
issue
3
pages
307 - 319
publisher
Wiley-Blackwell
external identifiers
  • wos:000266814100004
  • scopus:67049100297
ISSN
1467-8683
DOI
10.1111/j.1467-8683.2009.00741.x
language
English
LU publication?
yes
id
e15cc9a8-4f61-42d3-849b-12218b2bff54 (old id 1442306)
date added to LUP
2009-07-27 11:03:23
date last changed
2017-11-26 03:37:08
@article{e15cc9a8-4f61-42d3-849b-12218b2bff54,
  abstract     = {Review A coherent alternative to an economic approach of corporate governance is missing. In this paper we take steps towards developing a behavioral theory of boards and corporate governance. Building upon concepts such as political bargaining, routinization of decision making, satisficing, and problemistic search, a behavioral theory of boards and corporate governance will focus more on (1) interactions and processes inside and outside the boardroom; (2) the fact that decision making is made by coalitions of actors and objectives are results of political bargaining; and (3) the notion that not only conflicting, but also cooperating, interests are parts of the boards' decision making and control over firm resources. The consequences are a new research agenda for boards and corporate governance. The agenda will focus on actual instead of stylized descriptions of board behavior. In a behavioral perspective the emphasis on problems of coordination, exploration, and knowledge creation may dominate over problems of conflict of interest, exploitation, and the distribution of value. A future research agenda based on a behavioral framework calls for novel and adventurous research designs. A behavioral theory of boards and corporate governance will be closer to actual board behavior than the traditional economic approach and research about boards and corporate governance may thus become more actionable for practitioners.},
  author       = {van Ees, Hans and Gabrielsson, Jonas and Huse, Morten},
  issn         = {1467-8683},
  keyword      = {Board Processes,Corporate Governance,Board Composition,Board,Leadership,Board of Director Issues},
  language     = {eng},
  number       = {3},
  pages        = {307--319},
  publisher    = {Wiley-Blackwell},
  series       = {Corporate Governance},
  title        = {Toward a Behavioral Theory of Boards and Corporate Governance},
  url          = {http://dx.doi.org/10.1111/j.1467-8683.2009.00741.x},
  volume       = {17},
  year         = {2009},
}