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Humphry Hung is a Ph.D. candidate in strategic management at the City University of Hong Kong. His current research interests include strategic planning and corporate governance
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Humphry Hung Introduction he main focus of this paper is to analyze the mainstream academic thoughts on the roles of governing boards. Six major roles are identified: linking, coordinating, control, strategic, maintenance and support roles. These roles are consistent with, and at the same time reflecting one of the main arguments of six different schools of thoughts: resource dependency theory, stakeholder theory, agency theory, stewardship theory, institutional theory and managerial hegemony. A classification of the relationship between these theories and the six identified roles is made by using a typological approach. The typological parameters used are extrinsic and intrinsic influences, the impact of external and internal environments, as well as functional and behavioural approaches. The typology gives rise to the need of a new theory on the roles and functions of governing boards. 3. Review and, where appropriate, approve the corporation's financial objectives and major corporate plans and actions. 4. Review and, where appropriate, approve major changes in, and determinations of, other major questions of choice in respect of the appropriate auditing and accounting principles and practices to be used in the preparation of the corporation's financial statements. 5. Perform such other functions as are prescribed by law,
Corporate Governance – Wiley
Published: Apr 1, 1998
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