Corporate Governance in an International Context

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Boards of directors are at the apex of organisations’ decision-making structures (Fama & Jensen, 1983), and are generally considered to be the most important internal governance mechanism. However, several corporate scandals and the recent financial crisis have re-ignited a debate on the role of boards and their effectiveness.
Your task is to review the theoretical and empirical literature on board structure and firm performance, focusing specifically on board leadership structure (i.e. whether or not to have CEO duality). Your report should include the following:
a) An introduction to the domain of corporate governance and within it the role of boards.
b) A critical review of different theoretical perspectives on board leadership structure (whether or not to combine roles of CEO and chair).
c) A review of the empirical literature on the effects of board leadership structure. This should include a summary of findings regarding the impact of CEO duality on firm performance, and a discussion about the extent to which board leadership structures differ internationally.
d) A conclusion in which you put forward recommendations on board leadership.

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