About ASB
News & events
Future students
Current students
Schools
Executive Education
Alumni
Supporters
Learning & teaching
Research
Banking & Finance
2014
2013
2012
2011
2010
2009
Opinion piece by Professor Peter Swan: Firms do best with owner-directors 
 
 


Common sense suggests company boards are best composed of directors who hold shares in the business because any poor performance is effectively skin off their noses.

 

Evidence also implies this is the case. During the global financial crisis when the S&P/ASX 200 fell nearly 40 per cent, boards with stakes in their companies suffered fewer relative stock price falls.

 

Yet this advantage can be lost if a company's board has too many outside directors or if the board members are too compliant to the chief executive. They fail to ask the tough questions.

 

ASB Google + ASB Youtube ASB LinkedIn ASB Twitter ASB Facebook Your ASB Mobile App

Australian School of Business UNSW Sydney NSW 2052 Australia
© Copyright 2014 UNSW Australian School of Business™.
CRICOS Provider Code: 00098G
Authorised by the Australian School of Business ABN 57 195 873 179


Page last updated: 20/10/2011 9:16 AM 
Disclaimer Some pages on this website are updated dynamically on a regular basis. This may not be reflected in the ‘Last updated’ date.