The Effects of CEO Trustworthiness on Directors’ Monitoring and Resource Provision

Because of the importance of board members’ resource provision and monitoring, a substantial body of research has been devoted to ascertaining how directors can be incented to perform their responsibilities. We use social exchange theory to empirically examine how board members’ resource provision a...

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Bibliographic Details
Authors: Del Brio, Esther B. (Author) ; Yoshikawa, Toru (Author) ; Connelly, Catherine E. (Author) ; Tan, Wee Liang (Author)
Format: Electronic Article
Language:English
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Published: Springer Science + Business Media B. V 2013
In: Journal of business ethics
Year: 2013, Volume: 118, Issue: 1, Pages: 155-169
Further subjects:B Board evaluation
B Trustworthiness
B Directors of the board
B Resource provision
B Monitoring
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Description
Summary:Because of the importance of board members’ resource provision and monitoring, a substantial body of research has been devoted to ascertaining how directors can be incented to perform their responsibilities. We use social exchange theory to empirically examine how board members’ resource provision and monitoring are affected by their perceptions of the CEOs’ trustworthiness. Our findings suggest that board members’ perceptions of the CEO’s ability, benevolence, and integrity have different effects on the board members’ resource provision and monitoring. Our results further suggest that board members’ governance behaviors are moderated by the board’s performance evaluation practices.
ISSN:1573-0697
Contains:Enthalten in: Journal of business ethics
Persistent identifiers:DOI: 10.1007/s10551-012-1575-0