The Composition of Boards of Directors and Strategic Control: Effects on Corporate Strategy
- 1 January 1990
- journal article
- Published by Academy of Management in Academy of Management Review
- Vol. 15 (1) , 72-87
- https://doi.org/10.5465/amr.1990.4308231
Abstract
Boards of directors of large corporations provide a governance safeguard to both equity capital and managerial employment contracts. Thus, the board is a potentially important instrument of internal control. This article develops theory and propositions concerning (a) the relation among ownership, managerial control, and the composition of the boards of directors; (b) the relation between the composition of the boards and control strategies (strategic versus financial controls); and (c) the relation among choice of control, corporate strategy, and strategic choice.Keywords
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