Where have I been?

After a spate of blog posts it has all been a bit quiet!

So, I thought I would provide a brief update to keep my avid (if any) followers happy.

My theory chapter is nearing completion. The work has identified different elements of "optimum" board features in accordance with three different corporate governance theories - Agency, Stewardship and Resource Dependency Theory - The work has identified that since the board structures are just models it is important to understand how each theory views the others board features. This is presented to show how risk levels may rise depending on which theory the board is influenced by.

For example, a board may contain elements of agency but may want to increase its access to resources through additional directors. Additional directors means increased agency costs but there is the potential increase in firm value from access to increased resources. A board influenced by agency will need to understand how elements of resource dependency influence a board and design structures to ensure interests of the directors are aligned.

As well as writing this chapter I have also begun data collection from the FTSE 100 on multiple directorships over the past 5 years. Early indications show that multiple directorships are present in the UK and anecdotal evidence shows CEOs and CFOs generally have at least one other directorship. Early indications show that most firms also restrict additional directorships for their executive directors on the board.

Those who have done data collection before I have new found sympathy. A truly gruelling task this is proving to be working through 500 annual reports. I can see why people compare a thesis to a child. It is a long and painful task but once it is complete, it will all be worth it... I hope...