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Journal of Management & Governance

, Volume 10, Issue 2, pp 119–148 | Cite as

The Determinants and Effects of Board Nomination Committees*

  • Winfried Ruigrok
  • Simon Peck
  • Sabina Tacheva
  • Peder Greve
  • Yan Hu
Article

Abstract

This article assesses the corporate governance-related antecedents of nomination committee adoption, and the impact of nomination committees’ existence and their composition on board independence and board demographic diversity. We conducted a longitudinal study of board composition amongst 210 Swiss public companies from January 2001 through December 2003, a period during which the Swiss (Stock) Exchange (SWX) introduced new corporate governance-related disclosure guidelines. We find firms with nomination committees are more likely to have a higher number of independent and foreign directors, but not more likely to have a higher number of female board members. Further, the existence of nomination committees is associated with a higher degree of nationality diversity but is not related to board educational diversity. We also find that nomination committee composition matters in the nomination of independent and foreign, but not of female directors. Our results suggest that understanding different board roles and composition require a multi-theoretical approach, and that agency theory, resource-dependence theory and group effectiveness theory help to explain different aspects of board composition and effectiveness. Finally, the article discusses the concept of diversity and appropriate ways to study diversity in a boardroom context.

Keywords

board demographic diversity board independence nomination committees 

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Copyright information

© Springer 2006

Authors and Affiliations

  • Winfried Ruigrok
    • 1
  • Simon Peck
    • 2
  • Sabina Tacheva
    • 1
  • Peder Greve
    • 1
  • Yan Hu
    • 1
  1. 1.Research Institute for International Management (FIM-HSG)University of St. GallenSt. GallenSwitzerland
  2. 2.Weatherhead School of ManagementCase Western Reserve UniversityClevelandUSA

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