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What is Theory of Friendly Boards in Finance about?
This paper explores the dual role of boards of directors as both advisors and monitors of management, highlighting the trade-offs CEOs face in disclosing information to boards. It argues that management-friendly boards may be optimal as they encourage information sharing, while independent boards may lead to excessive monitoring and hinder collaboration. The analysis extends to the implications of sole versus dual board systems, suggesting that shareholders may benefit from choosing board structures that al
- Author
- herihe0201
- Language
- EN