Research into boards of directors has provided mixed support for the view that outside directors' independence or leadership by an independent chair improves monitoring. In this study, we use a micro-level approach to provide better understanding why have difficulty in monitoring CEO. We highlight important reason lies boardroom dynamics associated with (a) cognitive conflict CEO and (b) chair's board. Our inductive analyses video observations board meetings five Australian corporations...

Abstract Manuscript Type Empirical Research Question/Issue The authors posit that to understand the effects of board demographic diversity on performance, it is critical recognize members often do not come a as independent entities but rather delegates specific interest groups so has factions. propose differences between these factions are likely negatively affect performance through social categorization processes. Findings/Insight A study 318 D utch pension fund boards shows factional...

Drawing from corporate governance research and social identity theory, the authors argue that relationship between outside directors’ time in office director task involvement is more complex than generally anticipated. By using a unique multisource data set composed of peer ratings provided by fellow directors rating focal director’s involvement, this study analyzes at individual level analysis. The propose empirically demonstrate tenure has an inverted U-shaped with moderated identification...

Female representation on boards is perhaps one of the most studied topics in board-governance research. At same time, much unknown about female directors' task engagement within boards. Drawing from psychological theory societal gender beliefs, our study tests whether impact director supervisory hinges status dynamics two relational interfaces: director–board interface and director–CEO interface. According to this perspective, directors show less because a diffuse cue that creates...

ABSTRACT Research Question/Issue We recognize the collaborative nature of board advice giving and investigate (1) how level cognitive conflict between boards top management teams (TMTs) is associated with (2) this relation shaped by TMT tenure tenure. Findings/Insights Using insights from a unique multi‐source dataset 285 members 102 Dutch financial firms, we find that both moderate board‐TMT giving. In addition, when considering combined moderating effect tenure, most positively...

Practitioners and researchers often look toward the bold moves of CEOs who have successfully led their firms to strategy uniqueness — leapfrogging over competitors by deviating from industry norms. Yet, such tend be met with organizational resistance precisely because unprecedented nature. Drawing on regulatory focus theory behavioral firm, we theorize that while a promotion is key aspirational driver for pursue uniqueness, must also an in-depth understanding translate strategically unique...

Abstract In this paper we address how director expertise impacts a director's social status and conformity within the board. Our results, derived from two unique multi‐source datasets of peer ratings on non‐executive directors Dutch organizations, indicate that industry‐specific financial differently impact directors’ influence We find individual performance orientation – motivation to demonstrate acts as an important contingency for increase Additional analyses using archival data...

Abstract Drawing from research on strategic management and environmental psychology, this study investigates the role of independent directors' CEOs' values in promoting sustainable development. We propose that their may interactively shape focus sustainability. test our propositions with survey data 176 directors matching CEOs. Our results confirm there is a significant positive relationship between biospheric sustainability focus, which further amplified by CEO egoistic values. In contrast...

Regulatory capture is generally considered to be a principal cause for shortcomings in financial sector regulation and supervision. Little known, however, about the mechanisms driving public officials' by industry. We argue that social identification with an important psychological mechanism regulatory of supervisors this likely reduce supervisory effectiveness. Using survey data gathered from working at two Dutch institutions, our results demonstrate that, first, previous tenure are more...

The ability of Top Management Teams (TMTs) to reflect critically on their own actions represents an important element effective TMT decision making and governance effectiveness. This paper therefore examines how the TMT-board interface internal organization, as well with external supervisory authority, shape reflexivity. Drawing from psychological theories, we posit that cognitive conflict at can escalate by increasing levels affective conflict, hereby, harm reflexivity if not managed well....

Regulatory capture is generally considered to be a principal cause for shortcomings in financial sector regulation and supervision. Little known, however, about the mechanisms driving public officials’ by industry. We argue that social identification with an important psychological mechanism regulatory of supervisors this likely reduce supervisory effectiveness. Using survey data gathered from working at two Dutch institutions, our results demonstrate that, first, previous tenure are more...

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SUMMARY Audit firms rely on audit teams where memberships are frequently shared, shifted, and dissolved. In practice, this means that many auditors part of multiple engagement for a given period time. This paper examines why when such team (MTMs) may lead to engage in quality-threatening behaviors. We analyze data from survey 202 auditors—ranging assistants partners—working at Dutch firms. Our findings demonstrate serving MTMs can undermine auditor learning so doing leads Analyses show less...

Auditing involves a process in which an engagement team, consisting of assistants, seniors, managers, and one or more audit partners, applies series sequentially performed procedures decisions with the aim to collect sufficient competent evidence regarding client's financial reporting statement assertions (e.g., Trotman, Bauer & Humphreys, 2015; Knechel, Vanstraelen Zerni, Francis, 2011; Bik, 2010; Pierce Sweeney, 2005). Teamwork, how individuals within teams carry out their work, is...

We examine the relationship between demographic factional faultlines two naturally occurring stakeholder factions within Dutch pension fund boards and conflict management of directors. Data on 313 confirm that are positively related to competitive negatively cooperative management. These relationships mediated by subgroup formation. A noteworthy finding with clear managerial implications is adverse effects from attenuated board reflexivity. Moderated mediation analyses corroborate these findings.

Scholars and practitioners alike are interested in understanding what distinguishes well-functioning boards of directors from malfunctioning ones. One way to further this is through the study social-psychological processes inside boardroom. These board assumed translate influence characteristics into effectiveness may provide an often-referenced missing link inconsistent findings characteristic-effectiveness relationship. Our meta-analysis 84 process studies first explicit examination...

In this paper we examine how executives’ tenure impacts board monitoring and advice provision investigate vigilance shield a from the negative impact of tenure. We find that moderating effect is different for provision; diminishes effects on monitoring, while it exacerbates provision. Furthermore, our results show these interactive are contingent Building unique multi-source dataset comprised data executive non-executive members Dutch financial firms, underscore complexities functioning...

In this paper we address how director expertise impacts a director’s social status within the board. Our results, derived from unique multi-source datasets of peer ratings on non-executive directors Dutch organizations, indicate that industry-specific and financial differently impact directors’ We find performance orientation - motivation to demonstrate may act as an important contingency for increase Contrary our expectations, however, does not necessarily director's findings extend...

We propose and empirically demonstrate that outside director tenure has an inverted U-shape relationship with task performance (hereafter director). Whereas contributes to in the early years office, directors are likely become ‘stale saddle’ as go by. Specifically, our results is be optimal at intermediate levels of tenure. Moreover, extent which identify organization plays a crucial moderating role this respect. organizational identification moderates curvilinear between performance, such...