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Corporate Governance, the GFC and independent directors

Citation

Williams, B and Bingham, S and Shimeld, S, Corporate Governance, the GFC and independent directors, Managerial Auditing Journal, 30, (4/5) pp. 324-346. ISSN 0268-6902 (2015) [Refereed Article]

Copyright Statement

Copyright 2015 Emerald Group Publishing

DOI: doi:10.1108/MAJ-05-2014-1030

Abstract

Purpose - The purpose of this study was to understand how board composition and independent non-executive director (INED) disclosures have changed in light of the global financial crisis (GFC) from an accountability perspective. Design/methodology/approach - Content analysis techniques were undertaken on a random sample of 75 publicly listed companies across two time periods, 2005 and 2010. Findings The findings highlighted increased INED board membership and increased skill and experience disclosure across all board positions, with the most significant increase being the INED position. The results support the notion that firms are attempting to restore their accountability relationships post-GFC through more transparent mechanisms of governance. However, concerns are also raised in the way individual companies are meeting the ASX Corporate Governance independence requirements. Research limitations/implications - The results raise questions as to whether firms have implemented these changes to ensure effective governance and accountability responsibilities, or simply to give the appearance of good governance. Originality/value - Little attention has been given in the literature to the characteristics of INEDs and whether board changes have been made in the wake of corporate and financial crises. The findings from this study contribute to an understanding of board composition and disclosures pre- and post-GFC.

Item Details

Item Type:Refereed Article
Keywords:Corporate governance, independent director, global financial crisis, accountability
Research Division:Commerce, Management, Tourism and Services
Research Group:Accounting, Auditing and Accountability
Research Field:Financial Accounting
Objective Division:Expanding Knowledge
Objective Group:Expanding Knowledge
Objective Field:Expanding Knowledge in Philosophy and Religious Studies
Author:Williams, B (Dr Belinda Williams)
Author:Bingham, S (Mrs Simone Bingham)
Author:Shimeld, S (Dr Sonia Shimeld)
ID Code:96205
Year Published:2015
Web of Science® Times Cited:2
Deposited By:Tasmanian School of Business and Economics
Deposited On:2014-10-23
Last Modified:2016-02-18
Downloads:4 View Download Statistics

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