Part II of this research indicates that corporations are responding to external pressures with changes in the attributes of their boards of directors. The analyses in chapters six and seven of this study suggest support for the proposition (P.1) that one-tier boards are becoming more independently composed and organized in the US and the UK. In the Netherlands, changes are also observable in the organization and the composition of two-tier boards.
Chapter eight found that Dutch supervisory directors increasingly work with board committees. Similar to the organization of board meetings in one-tier boards, executive managing directors and non-executive supervisory directors also often meet together in two-tier boards. In addition, formerly affiliated managing directors are sometimes appointed to supervisory boards which resembles a common practice of boards in the US and the UK to have formerly affiliated managers appointed to non-executive positions.
These findings suggest support for the proposition (P.2) that supervisory directors incorporate one-tier board attributes in the organization of their boards. The third proposition in this study builds on the propositions P.1 and P.2. This proposition (P.3) suggests that differences between the attributes of board models will be reduced over time due to pressures from legislators, boardroom reformers, stock exchanges and institutional investors. This chapter further concentrates on developments in the composition and the formal structure of boards of listed corporations in the US, the UK and the Netherlands.
The organization of this chapter is as follows. Paragraph 9.2 reviews the research findings of chapter six and chapter seven on changes in one-tier boards in the US and the UK to find support for proposition P.1. Paragraph 9.3 reviews developments in the governance structure of Dutch two-tier boards. This paragraph uses the research findings of chapter eight to find support for proposition P.2. Paragraph 9.4 presents a comparison of research findings to find support for proposition P.3.
Paragraph 9.5 presents the practical implications of the research findings of this study for directors, stock exchanges, institutional investors and the theoretical implications of the research findings for academics involved in theory building. Suggestions for future research on corporate boards of directors are presented in paragraph 9.6. This chapter ends with a summary in paragraph 9.7.
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