TY - JOUR
T1 - The relative power of ceos and boards of directors
T2 - Associations with corporate performance
AU - Pearce, John A.
AU - Zahra, Shaker A.
PY - 1991/2
Y1 - 1991/2
N2 - A typology of the relative powers of the chief executive officer and the board of directors was derived based on the literature, highlighting four situations: Caretaker, Statutory, Proactive and Participative boards. Data collected from Fortune 500 Industrial and Fortune 500 Service corporations supported the typology. The results showed significant differences among the four board types in their characteristics, internal process, decision‐making styles, board effectiveness, and contribution to company performance. Powerful boards were associated with superior corporate financial performance.
AB - A typology of the relative powers of the chief executive officer and the board of directors was derived based on the literature, highlighting four situations: Caretaker, Statutory, Proactive and Participative boards. Data collected from Fortune 500 Industrial and Fortune 500 Service corporations supported the typology. The results showed significant differences among the four board types in their characteristics, internal process, decision‐making styles, board effectiveness, and contribution to company performance. Powerful boards were associated with superior corporate financial performance.
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U2 - 10.1002/smj.4250120205
DO - 10.1002/smj.4250120205
M3 - Article
AN - SCOPUS:84989133307
SN - 0143-2095
VL - 12
SP - 135
EP - 153
JO - Strategic Management Journal
JF - Strategic Management Journal
IS - 2
ER -