Board of director's effectiveness and the stakeholder perspective of corporate governancedo effective boards promote the interests of shareholders and stakeholders?

  1. Nicolás García-Torea 1
  2. Belén Fernández-Feijoo 1
  3. Marta de la Cuesta 2
  1. 1 Universidade de Vigo

    Universidade de Vigo

    Vigo, España


  2. 2 Universidad Nacional de Educación a Distancia

    Universidad Nacional de Educación a Distancia

    Madrid, España


Business Research Quarterly

ISSN: 2340-9444 2340-9436

Year of publication: 2016

Volume: 19

Issue: 4

Pages: 246-260

Type: Article

DOI: 10.1016/J.BRQ.2016.06.001 DIALNET GOOGLE SCHOLAR lock_openOpen access editor

More publications in: Business Research Quarterly


This paper analyzes whether effective boards of directors in addressing shareholder interests also prove to be effective in guaranteeing the interests of the rest of the firm’s stakeholders. We measure board effectiveness based on the shareholder perspective, and test whether it is valid for the stakeholder perspective. The novelty of this paper precisely lies in its approach, given that it considers both perspectives of corporate governance at a time. Using the transparency of sustainability reports as a proxy for the stakeholder perspective in an international sample of 2366 companies, the paper shows that effective boards are more likely to address the interests of both the shareholders and the rest of the firm’s stakeholders. Furthermore, we propose a measure of board effectiveness by gathering several board characteristics. Our results contribute to research on corporate governance and corporate social responsibility reporting, and it has implications for policy makers.

Funding information

We would like to acknowledge the financial support of ECOBAS --- Xunta de Galicia (AGRUP2015/08) for this research.


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