The inner workings of the board

The inner workings of the board: Evidence from emerging markets

How boards perform their dual role of supervisor and advisor of corporate management is difficult to see from outside of the business. This column presents a survey of non-executive directors in a variety of emerging markets which reveals substantial variation in the structure and conduct of boards aswell as in directors’ perceptions about the neighborhood legal environment. Directors who feel adequately empowered by local legislation appear less inclined to vote against board proposals, and in addition form boards that play a stronger role in the company’s strategic decision making.