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The role of the board of directors in firm strategy
has been the subject of debate for a long time. Many
researches have been made from different
perspectives particularly on this issue.
Board of directors is elected by the shareholders of
a corporation and assigned to carry out certain
tasks on behalf of the shareholders to govern the
corporation. Some of the main tasks of the boards
are appointing the Chief Executive Officer, issuing
additional shares and declaring the dividends. Board
of directors is responsible for defining the
strategy for the firm and make sure that it is
implemented by the management.
The research concludes that the boards can be
effectively involved in firm strategy if the board
directors have relevant knowledge and skills to the
firm and have experience from the industry they are
in. The board and CEO should have close relations
and have frequent meetings. Board diversity is also
important because diverse boards will come up with
different perspectives, healthy debates and good
information for decision making.
has been the subject of debate for a long time. Many
researches have been made from different
perspectives particularly on this issue.
Board of directors is elected by the shareholders of
a corporation and assigned to carry out certain
tasks on behalf of the shareholders to govern the
corporation. Some of the main tasks of the boards
are appointing the Chief Executive Officer, issuing
additional shares and declaring the dividends. Board
of directors is responsible for defining the
strategy for the firm and make sure that it is
implemented by the management.
The research concludes that the boards can be
effectively involved in firm strategy if the board
directors have relevant knowledge and skills to the
firm and have experience from the industry they are
in. The board and CEO should have close relations
and have frequent meetings. Board diversity is also
important because diverse boards will come up with
different perspectives, healthy debates and good
information for decision making.