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Monday 15 April 2013

How women from women shelters make a good case for corporate governance study?


The focus of my search is one corporate governance mechanism which is related to the role of board of directors. It is argued that a good director should have the quality like 1) to judge whether the CEO/management has acted in the best interest of the shareholders or due diligences and 2) to stand up and conflict with the CEO/management’s decision for shareholders when disagreements occur.  Since directors act as such an important role in the company, it is essential to understand what factors that might influence directors’ behaviours. Mental pressure could be one explanation for that as people who suffer from mental disorder might have less courage or strength to cope with difficult conditions e.g. arguments.

Women from the women shelters can serve as cases to study what mental factors can affect director’s behaviours. It is obvious that the case must be a woman who is a director of a company (not necessarily a large public company). After enduring from physical or mental abuse from their partners, women might suffer from post-traumatic disorder, which might affect their judgements. It might impair their ability to judgement what is right or fair for them. Additional, they might be afraid of speaking out when there is a conflict or simply just intentionally avoiding conflict situation by biases towards their counterparty. These can lead to a dysfunction of director’s power to monitor the management behaviours or manage the firm.

It might be helpful to also collect a control case where a woman director who has a happy and harmonious family to see the contrast.