Effective corporate monitoring: Independence, motivation and means

Date of this Version


Document Type

Journal Article

Publication Details

Published version

Drennan, L., Kelly, S., McNamara, R., & Martin, M. (2012). Effective corporate monitoring: Independence, motivation and means. International Review of Business Research Papers (Online), 8(5), 65-84. ISSN: 1832-9543

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2012 HERDC submission. FoR code: 150101; 150303

© Copyright World Business Institute, 2012


A feature of the literature on the role of Boards of Directors is the mixed and contradictory findings. This research used continuous listing compliance as a measure of Board performance. A matched pairs design was employed, using governance data on 30 board attributes for firms listed on the Australian Stock Exchange from 1992 to 2000. Factor analysis was used to identify constructs associated with Board composition and firm performance. Discriminant analysis confirmed that the resultant model of performance was a significant predictor of firms’ ability to maintain continuous listing compliance. Neither the independence nor assembled knowledge variables were separately significant. Variables capturing directors’ motivation to monitor, and board cohesiveness were significant.


This document has been peer reviewed.