Strategic Governance for Sustainable Competitive Advantage
Mar 18, 2009
In the strategy literature, corporate governance is an “important factor affecting the firm’s performance and long-term survival” (Filatotchev, Toms & Wright, 2006: 257). Research on board size and independence – posited to help firms reduce managers’ self-interested behavior, and manage transaction costs and resource dependencies (Boone et al., 2007; Filatotchev et al., 2006; Lynall, Golden & Hillman, 2003) – has focused on the showing that positive effect of these variable on firm performance (Forbes & Milliken, 1999; Huse, 2000; Johnson, Daily & Ellstrand, 1996). As a result, the notion that rules firms limit managers’ opportunism has had many policy implications, including informing the Sarbanes-Oxley Act of 2002 (Boone et al, 2007; Denis & McConnell, 2003). – Lisa Papania