Director categorisation and monitoring efficiency
This paper examines the impact of director co-option on the relationship between board structure and firm monitoring. Though non-co-opted independent directors enhance internal monitoring, co-opted independent directors seem to be the worst monitors. We do not observe a substantial difference in the monitoring functionality of co-opted and non-co-opted inside board members. Our paper suggests that co-opted independent directors are the main driving factor behind the converse association between co-opted boards and internal monitoring. We conclude that the efficiency of board monitoring should not be analysed solely based on director classification or director co-option, but rather a combination of both.
International Journal of Business Governance and Ethics
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Dames, Samira Abi; Al-Dah, Bilal; and Dah, Mustafa, "Director categorisation and monitoring efficiency" (2023). Kean Publications. 387.