Board independence
Board independence connotes a willingness to bring a high
degree of rigour, scrutiny and objectivity to the evaluation of a
company’s management (Langevoort, 2001). For instance, consolidating
the roles of the CEO and that of the chairman into one
position amounts to undue concentration of power and influence
into one individual, which jeopardises board independence (Daily
& Dalton, 2003; Filatotchev et al., 2007).