The Research Proposal to Explore The Effect of Characteristics of Independent Board Members on Performance of Companies

Abstract

This study presents a research proposal to explore the effect of characteristics of independent board members on performance of companies. Dimensions of characteristics of independent board members are gender, age, education, tenure in the company and career, functional and foreign work experience, committee memberships, and duties.  Questions related to them are could be asked to participants.

On the other hand, dimensions of performance of companies are financial performance, marketing performance and innovation performance. Ratio of foreign ownership, number of sectors, product categories, operated countries, and expansion methods into foreign countries (exporting, licencing, joint venture, merger, acquisition, and foreign direct investment) reflect the current position of the companies. Questions related to them could be included to the research as well.  

Also, size and headquarter location of the company, size of the board, number of board meetings and independent board members, responsibilities of board members (SWOT analysis, strategy formulation, strategy implementation, control, and leadership), committees and their functions, board and board member evaluation methods, and frequencies and problems of independent board members could be asked to the participants.

As a research methodology, structured in-depth interview could be conducted to the participants. The participants of the research could be independent board members of companies which sell their stocks in Star Market of Istanbul Stock Exchange Market (ISEM). Thus, the main population of the research could be independent board members of companies which sell their stocks in Star Market of ISEM whereas the sample of this research could be seven participants who are independent board members of these companies. A structured in-depth interview could be used as a method to gather more organized and comprehensive data from seven respondents.

Companies which do not have a duality problem need to be chosen for the research. The Chairmans and CEOs of sample companies need to be different people to have more democratic management approach in the boards. Thus, independent board members could make contribution to the management of the company.