Template-Type: ReDIF-Paper 1.0
Author-Name: Bezemer, P.J.
Author-Name-Last: Bezemer
Author-Name-First: Pieter-Jan
Author-Name: Maassen, G.F.
Author-Name-Last: Maassen
Author-Name-First: Gregory
Author-Name: van den Bosch, F.A.J.
Author-Name-Last: van den Bosch
Author-Name-First: Frans
Author-Person: pbo133
Author-Name: Volberda, H.W.
Author-Name-Last: Volberda
Author-Name-First: Henk
Title: Investigating the Development of the Internal and External Service Tasks of Non-executive Directors: The Case of the Netherlands (1997-2005)
Abstract: During the last decade, globalization and liberalization of financial markets, changing societal expectations and corporate governance scandals have increased the attention for the fiduciary duties of non-executive directors. In this context, recent corporate governance reform initiatives have emphasized the control task and independence of non-executive directors. However, little attention has been paid to their impact on the external and internal service tasks of non-executive directors. Therefore, this paper investigates how the service tasks of non-executive directors have evolved in the Netherlands. Data on corporate governance at the top-100 listed companies in the Netherlands between 1997 and 2005 show that the emphasis on non-executive directors’ external service task has shifted to their internal service task, i.e. from non-executive directors acting as boundary spanners to non-executive directors providing advice and counseling to executive directors. This shift in board responsibilities affects non-executive directors’ ability to generate network benefits through board relationships and has implications for non-executive directors’ functional requirements.
Creation-Date: 2007-08-08
File-URL: https://repub.eur.nl/pub/10698/ERS-2007-074-STR.pdf
File-Format: application/pdf
Series: RePEc:ems:eureri
Number: ERS-2007-074-STR
Classification-JEL: D21, L20
Handle: RePEc:ems:eureri:10698