Independent directors

click menu to expand

Independent directors
The role of independent non-executive directors features prominently in corporate governance codes. The presence of independent representatives on the board, capable of challenging the decisions of the management, is widely considered as a means of protecting the interests of shareholders and, where appropriate, other stakeholders. The European Commission’s Action Plan to modernise company law and enhance corporate governance in the EU announced the adoption in the short term of a Commission Recommendation on the role in listed companies of (independent) non-executive or supervisory directors.
The ECGI itself does not take a position on these matters. Rather, the purpose of the Institute is to generate research, stimulate debate and disseminate best practice. In these pages therefore, you will find links to proprietary ECGI research and other references to material on this important topic. They are continuously developed as new information becomes available. Any comments and suggestions for additional links and references are very welcome.


ECGI Working Papers
	Board Structure and Price Informativeness Daniel Ferreira, London School of Economics, CEPR and ECGI, Miguel Ferreira, ISCTE Business School, Clara Raposo, ISCTE Business School (ECGI Finance Series 160/2007) June 2007
	Rewarding Outside Directors Assaf Hamdani, Bar Ilan University, Reinier Kraakman, Harvard Law School and ECGI (ECGI Law Series 085/2007) June 2007
	The Rise of Independent Directors in the United States, 1950-2005: of Shareholder Value and Stock Market Prices Jeffrey Gordon, Columbia Law School and ECGI (ECGI Law Series 074/2006) August 2006
	Board Compensation and Firm Performance: The Role of 'Independent' Board Members Nuno Fernandes, School of Economics and Management, Universidade Católica Portuguesa and ECGI (ECGI Finance Series 104/2005) October 2005
	The ownership and financing of innovation in R&D races Paolo Fulghieri, University of North Carolina, INSEAD and ECGI and Merih Sevilir, University of North Carolina and INSEAD (ECGI Finance Series 018/2003) April 2003
	Corporate Governance and Control Marco Becht, ECGI European Corporate Governance Institute, Patrick Bolton, Princeton University - Department of Economics; Centre for Economic Policy Research (CEPR) and Ailsa Roell, Princeton University - Department of Economics (ECGI Finance Series 002/2002) Revised August 2005
Other sources
	European Commission's Recommendation (provisional text) dated 6 October 2004