Program on Corporate Governance
Harvard Law School
1557 Massachusetts Avenue
Cambridge, MA 02138
Institutional Affiliations: Hebrew University and Harvard University and Department of Finance, Hebrew University of Jerusalem, Israel
NBER Working Papers and Publications
|October 2011||What do Boards Really Do? Evidence from Minutes of Board Meetings|
with Michael Weisbach: w17509
We analyze a unique database from a sample of real-world boardrooms - minutes of board meetings and board-committee meetings of eleven business companies for which the Israeli government holds a substantial equity interest. We use these data to evaluate the underlying assumptions and predictions of models of boards of directors. These models generally fall into two categories: "managerial models" assume boards play a direct role in managing the firm, and "supervisory models" assume that boards' monitor top management but do not make business decisions themselves. Consistent with the supervisory models, our minutes-based data suggest that boards spend most of their time monitoring management: 67% of the issues they discussed were of a supervisory nature, they were presented with only a sing...
Published: “What do Boards Really do? Evidence from Minutes of Board Meetings” (with Miriam Schwartz- Ziv), Journal of Financial Economics, Vol. 108 (May 2013), pp. 349-366.