Abstract
Do non-executive directors have the wherewithal to overview a corporation's integrity, quality of performance and management in the area of derivatives policy? In a survey of the understanding and monitoring of derivatives in a small sample of quoted companies, we found disturbing levels of ignorance among independent directors. Whilst three quarters of non-executive directors surveyed favoured the use of derivatives in appropriate circumstances, namely hedging, over two-thirds confessed to an inadequate knowledge on the topic of derivatives. Also, we found a series of naïve and dangerous views expressed by many participants in our survey of derivatives and the non-executive director. © 2003 Elsevier Science Ltd. All rights reserved.
Original language | English |
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Pages (from-to) | 389-397 |
Number of pages | 9 |
Journal | European Management Journal |
Volume | 21 June |
Issue number | 42-43 |
DOIs | |
Publication status | Published - 2003 |