Speaker:Renee Adams, UQ Business School, University of Queensland

Title : "Asking Directors about their Dual Roles"

Place: 1073 FMAN Meeting Room,Faculty of Management, Sabancı University
Date: Tuesday, June 15, 2010
Time: 10:30-12:00

Abstract

This paper uses a large survey of directors to investigate their dual roles as advisors and monitors of management. I examine whether the advisory role encourages information exchange between the CEO and directors. I also examine factors influencing directors' perceptions of their roles. The data suggests that directors who primarily monitor are less engaged than directors who advise, "friendly" directors are more likely to advise, and directors on powerful boards deemphasize their monitoring role. The results are robust to using Heckman selection techniques to address nonresponse bias. The data suggests that monitoring alone may not be sufficient for good governance.