Discussion paper

DP12317 The Inner Workings of the Board: Evidence from Emerging Markets

We survey non-executive directors in emerging markets to obtain detailed information about the inner workings of corporate boards across a variety of institutional settings. We document substantial variation in the structure and conduct of boards as well as in directors’ perceptions about the local legal environment. Further analysis indicates that directors who feel adequately empowered by local legislation are less likely to actively vote against board proposals. They also form boards that play a stronger role in the company’s strategic decision-making. This suggests that a supportive legal environment allows directors to focus more on their advisory, as opposed to their monitoring, role.


Ferreira, D, R De Haas and T Kirchmaier (2017), ‘DP12317 The Inner Workings of the Board: Evidence from Emerging Markets‘, CEPR Discussion Paper No. 12317. CEPR Press, Paris & London. https://cepr.org/publications/dp12317