Are Directors adding shareholder value?


As former SEC Section 16 Officer I often wondered how the information policy for the shareholders can be improved and the transparency of the Board Meetings can be enhanced.


I believe it would add great value to shareholders if they are able to get first hand information of Board Meetings. This would add much more transparency and shareholders would be able to follow the entire decision making process.


Let's say a shareholder would like to know, if his opinion is represented accurately by the Directors - currently there is hardly any information availabe - hence a transcript of the Board Meetings would be very beneficial.

Let's say you intend to perform some more analytic works with R on this topic and you investigate with google scholar, if some research papers are available.

Most of the articles I have found on google scholar about this topic are focusing on the Agency - Theory.

I would like to investigate and explore, if there is an impact on the operational performance of a listed company, measured by the market-capitalization, directly triggered by a Board decision.

First problem you encounter, when you intend to explore this further is that there is simply no transparency on Board Meetings. As shareholder you have your quarterly earnings statement and investor conference calls where the Executives will outline the development of the organisation and a brief Directors Report in your annual fillings.

As a matter of fact you are not electing the Executives but you elect the Directors only and it is certainly in shareholders interest to see how each individual Director is performing and adding value. 




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