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Authors Jung-Ching Lin, Cheng-Yu Lee & Hsueh-Liang Wu Pages 161–178 Keywords Independent director dissent, Independent director resigned after dissent, Strategic change, Board harmony, Corporate governance |
How to Cite Lin, J.-C., Lee, C.-Y., & Wu, H.-L. (2025). Governance and HeXie: The performance implication of board dissent on strategic changes. Management Review, 44(2), 161–178. https://doi.org/10.6656/MR.202504_44(2).ENG003
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Abstract
Purpose – The study, from the agency and stakeholder views, is aimed to explore how the governance function of independent directors in strategic changes affects boardroom harmony and firm performance.
Design/methodology/approach – Empirical analysis was conducted using a match-paired sample of 300 independent director dissent, compared with no-dissent counterparts of Taiwan-listed firms during 2010 to 2021.
Findings – Among firms’ subject to greater degree of strategic change, the dissent of independent directors softens the negative impact of strategic change on firm performance. The quit of the dissent independent director weakens the damage to firm performance.
Research limitations/implications – Given the disclosed dissent cases of the independent directors is limited, the lack of objective data paves the way to more fine-tuned approaches to identifying the boardroom harmony/discord and the corresponding effects on a focal firm’s strategic changes.
Practical implications/Social implications – The balance between corporate governance and board harmony can help to improve the company’s performance via strategic changes.
Originality/value – To clarify the impact of boardroom discord, in terms of director dissent or quit, on strategic changes.