Boards of directors have been shown to be ineffective governance mechanisms and are being replaced by the market for corporate control.

Question

Quizplus · Accepted Answer

While there is ongoing debate about the effectiveness of boards of directors as governance mechanisms, they continue to play a crucial role in corporate governance. The market for corporate control is one option for addressing poor performance, but it is not a replacement for effective board oversight.

Boards of Directors Have Been Shown to Be Ineffective Governance