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Short-term debt exposes firms to credit supply shocks and liquidity risk. Short-term debt can also reduce potential agency conflicts between managers and shareholders by exposing managers to more frequent monitoring by the market. This paper examines whether internal monitoring through independent boards and stronger shareholder protections can substitute for external monitoring through the use of short-term debt. The analysis finds that the relationship between debt maturity and governance depends on shareholder rights in a given country. In countries with stronger investor protection, governance and short-term debt act as substitutes. Instrumenting the institutional environment with legal origin confirms the results.
Agency Issue --- Board Independence --- Corporate Governance --- Debt Markets --- Finance and Financial Sector Development --- Financial Regulation and Supervision --- Governance --- Investor Protection --- Legal Origin --- Private Sector Development --- Shareholder Protection --- Short-Term Debt
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Board members often struggle to identify their true role, caught between the Chair and the executive board. As a result, board members frequently have doubts about their role and personal impact; doubts which are rarely acknowledged nor addressed. By focusing on the most impactful driver of success -- the human behavior -- the author explores how to create a strong board team whose members are clear about the team's role, are able to talk about their concerns, and are therefore also comfortable to listen, to challenge, and to support. Based on around 60 interviews around the globe and his own board experience, this book will help Chairs to form a strong team, build a resilient relationship with the CEO, assess how to use their considerable power, and when to show self-restraint. Navigating the Boardroom supports board members and managers in reflecting on how to navigate the complex web of boardroom relations and provides both practical and attitudinal tips.
Board of directors. --- Organizational behavior. --- Corporate governance. --- Leadership. --- Board interactions. --- The role of the Chair. --- Chair/CEO relationship. --- Board dynamics. --- Board reviews. --- Board evaluation. --- Team conflicts. --- High-performance teams. --- Joint board reflection. --- Building trust. --- Forming a team. --- Psychological safety. --- Vulnerability. --- Speaking up. --- Taking risks. --- Executive board. --- Board culture. --- Managing board relations. --- Board coaching. --- Board independence. --- Board engagement. --- Directors of corporations.
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