The effects of CEO trustworthiness on directors' monitoring and resource provision

• Main Authors: Del Brio, Esther B., YOSHIKAWA, Toru, Connelly, Catherine E., TAN, Wee Liang
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2013
• Subjects: Directors of the board; Trustworthiness; Monitoring; Resource provision; Board evaluation; Organizational Behavior and Theory; Strategic Management Policy
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/3124; https://ink.library.smu.edu.sg/context/lkcsb_research/article/4123/viewcontent/EffCEOTrustworthinessDirMonitoring_JBE_2013.pdf
• Institution: Singapore Management University

Because of the importance of board members’ resource provision and monitoring, a substantial body of research has been devoted to ascertaining how directors can be incented to perform their responsibilities. We use social exchange theory to empirically examine how board members’ resource provision and monitoring are affected by their perceptions of the CEOs’ trustworthiness. Our findings suggest that board members’ perceptions of the CEO’s ability, benevolence, and integrity have different effects on the board members’ resource provision and monitoring. Our results further suggest that board members’ governance behaviors are moderated by the board’s performance evaluation practices.