What Really Matters in the Boardroom?

Abstract: The composition and lack of diversity on corporate boards has for years been scrutinized. In light of multiple corporate scandals, what it takes to make a board effective has been a hot topic of debate. Therefore, a qualitative multi-case study was conducted to explore directors' perceptions of why and how board effectiveness is affected by various diversity and composition board attributes. The empirical results revealed that a corporate board consisting of approximately five to six board members is desirable. A diverse set of directors is also generally appreciated to increase the overall effectiveness of the board.