Can directors impact performance? A case-based test of three theories of corporate governance

Nicholson, Gavin J. & Kiel, Geoffrey C. (2007) Can directors impact performance? A case-based test of three theories of corporate governance. Corporate Governance: An International Review, 15(4), pp. 585-608.

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We examine hypothesised links between the board of directors and firm performance as predicted by the three predominant theories in corporate governance research, namely agency theory, stewardship theory and resource dependence theory. By employing a pattern matching analysis of seven cases, we are able to examine the hypothesised link between board demography and firm performance expected under each theory. We find that while each theory can explain a particular case, no single theory explains the general pattern of results. We conclude by endorsing recent calls for a more process-orientated approach to both theory and empirical analysis, if we are to understand how boards add value.

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ID Code: 13261
Item Type: Journal Article
Refereed: Yes
Keywords: Boards of directors, organisational performance, stewardship theory , agency theory , resource dependence theory
DOI: 10.1111/j.1467-8683.2007.00590.x
ISSN: 0964-8410
Subjects: Australian and New Zealand Standard Research Classification > COMMERCE MANAGEMENT TOURISM AND SERVICES (150000) > BUSINESS AND MANAGEMENT (150300)
Australian and New Zealand Standard Research Classification > LAW AND LEGAL STUDIES (180000) > LAW (180100)
Divisions: Current > Research Centres > Australian Centre for Philanthropy and Nonprofit Studies
Current > QUT Faculties and Divisions > QUT Business School
Current > Schools > School of Accountancy
Copyright Owner: Copyright 2007 Blackwell Publishing
Copyright Statement: The definitive version is available at
Deposited On: 08 Apr 2008 00:00
Last Modified: 25 Sep 2013 12:39

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