Szymon Kaczmarek|Satomi Kimino|Annie Pye
Board Task?related Faultlines and Firm Performance: A Decade of Evidence
abstract manuscript type empirical research questionissue extent group faultlines potential valuedestroying effects detected corporate boards taskrelated attributes type directorship education board tenure financial background board members considered directors characteristics give rise faultline phenomenon impact taskrelated faultlines firm performance well moderating effects busy boards chief executive officer ceo tenure executive directors eds compensation structure average nonexecutive directors neds involvement board committees examined research findingsinsights using panel ftse 350 companies 1999 2008 find strong negative effect taskrelated faultlines firm performance exploration moderating effects demonstrates condition busy board ceo tenure exacerbate negative effects faultlines time executive pay contingency found remedying effect boardroom cohesiveness whereas involvement neds board committee work likely make adverse effects board faultlines less pronounced theoreticalacademic implications based arguments social identity theory study shows taskrelated faultlines corporate boards strong negative valuecreating implications positive moderating impact executive compensation structure renders support agency theory predictions executive incentive alignment work also underlines usefulness concept faultlines corporate governance literature unitary boards neds eds share board responsibility exhibit preexisting factions similar top management teams familycontrolled firms teams managing international jointventures practitionerpolicy implications research points importance careful selection process directors nomination committees also underlines role active leadership boards aware available strategies ameliorate negative consequences board schisms accentuating superordinate board identity informal meetings