Independent Directors: After the Crisis

Journal article

This paper re-evaluates the corporate governance concept of 'board independence' against the disappointing experiences during the 2007-08 financial crisis. Independent or outside directors had long been seen as an essential tool to improve the monitoring role of the board. Yet the crisis revealed that they did not prevent firms' excessive risk taking; further, these directors sometimes showed serious deficits in understanding the business they were supposed to control, and remained passive in...

Expand abstract

Authors: Ringe, W

• Publication status: Published
• Journal: EUROPEAN BUSINESS ORGANIZATION LAW REVIEW
• Volume: 14
• Issue: 3
• Pages: 401-424
• Publication date: 2013-01-01
• DOI: 10.1017/S1566752912001206
• EISSN: 1741-6205
• ISSN: 1566-7529
• Language: English
• Keywords: minority protection; independent directors; financial crisis; corporate governance