Evaluating Boards of Directors: what constitutes a good corporate board?
Article first published online: 15 OCT 2004
Corporate Governance: An International Review
Volume 12, Issue 4, pages 461–478, October 2004
How to Cite
Van den Berghe, L. A. A. and Levrau, A. (2004), Evaluating Boards of Directors: what constitutes a good corporate board?. Corporate Governance: An International Review, 12: 461–478. doi: 10.1111/j.1467-8683.2004.00387.x
- Issue published online: 15 OCT 2004
- Article first published online: 15 OCT 2004
- Corporate governance;
- board of directors;
- board evaluation;
- board effectiveness;
- corporate governance rating
This paper is an attempt to identify what constitutes a good board of directors, and this is based on a comparison between academic literature, corporate governance rating systems and our field research into board practices. We observed that “traditional” academic research focused on a limited number of quantifiable board characteristics, while practitioners attach greater importance to “soft” elements, which are nearly absent in the literature and in the governance ratings. These findings highlight the need for a better understanding of all elements that determine board effectiveness. Furthermore, our results identify three areas of improvement for boards of directors.