Board systems, employee representation, and neo‐institutional theory: The moderating effect of economic freedom on corporate boards and financial performance
Abstract:This study assesses the relative financial performance of firms operating in an environment in which economic freedom is protected by effective institutions. To do this, we examine the moderating effect of economic freedom on the relationship between board structure and financial performance. Using longitudinal data across 30 European countries, we find that firms with a one‐tier board consistently outperform those with a two‐tier board, but the relative underperformance of two‐tier boards is partially mitigat… Show more
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