Death by committee? An analysis of corporate board (sub-) committees

A-Tier
Journal: Journal of Financial Economics
Year: 2021
Volume: 141
Issue: 3
Pages: 1119-1146

Authors (3)

Adams, Renée B. (Oxford University) Ragunathan, Vanitha (not in RePEc) Tumarkin, Robert (not in RePEc)

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Theoretical models of groups suggest that sub-group usage can affect communication among members and group decision-making. To examine the trade-offs from forming sub-groups, we assemble a detailed dataset on corporate boards (groups) and committees (sub-groups). Boards have increasingly used committees formally staffed entirely by outside directors. Our data show that twenty-five percent of all director meetings occurred in such committees in 1996; this increased to 45% by 2010. Our evidence suggests that granting formal authority to such committees can impair communication and decision-making. Sub-groups are relatively understudied, but our results suggest that they play an important role in group functioning and corporate governance.

Technical Details

RePEc Handle
repec:eee:jfinec:v:141:y:2021:i:3:p:1119-1146
Journal Field
Finance
Author Count
3
Added to Database
2026-01-24