Firms in which CEOs collaborate with board members on an informal basis perform worse than those where the relationships remain more formalized.

Question

Quizplus · Accepted Answer

Studies have shown that firms with more informal CEO-board relationships tend to perform better than those with more formalized relationships. This is because the informal relationships allow for easier communication, flexibility, and trust between the CEO and board members, which can lead to more effective decision-making and problem-solving.

Firms in Which CEOs Collaborate with Board Members on an Informal