So claims the opening sentence of a CLS blog post by a trio of University of Florida economists, albeit with subsequent qualifications: A large body of academic literature has also highlighted the importance of board independence and has explored its effects on various measures of firm performance.Despite the strong push for greater director independence, the observed links between board independence and firm performance are often quite weak. Moreover, corporate fraud and misconduct still remain a significant problem in Corporate America even after a decade of significant regulatory efforts that were designed to promote a board's oversight function through director independence.
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