This paper address the question of what makes boards effective by exploring governance attributes that go beyond board independence. Academic literature has predominantly focused on the independence of non-executive directors in board effectiveness and performance. However, there has been insufficient literature on the capability of non-executive directors in performing their roles and improving board effectiveness. Having considered evidence from agency and upper echelons theories, we propose that non-executive directorsā€™ experience and diversity of age are more suitable proxies of board effectiveness. This theoretical paper contributes to the growing body of corporate governance research on board effectiveness by integrating the two theories with the purpose of creating a more holistic theoretical perspective.
Princess Bwanya, Northumbria University, United Kingdom
Philip Shrives, Northumbria University, United Kingdom
Roman Stepanov, Northumbria University, United Kingdom