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A Study of the Effectiveness of Corporate Governance in EU Small States Financial Services Firms

  • Simon Grima*
  • , Frank Bezzina
  • *Corresponding author for this work
  • University of Malta

Research output: Chapter in Book/Report/Conference proceedingChapterResearchpeer-review

Abstract

The objective of this chapter is to uncover the factors that drive effective corporate governance in licensed financial services firms (FSFs) in seven small states of the European Union so as to explain what drives board behaviour. For the purpose of this study, small states are defined as those with a population of three about three million or less. Cyprus, Malta, Luxembourg, Lithuania, Slovenia, Latvia and Estonia fall into this category. The approach adopted in this study was to conduct a survey to derive a Board Effectiveness Measure (BEM) with the secretaries of 164 Boards of Directors (BODs) in the seven small states under consideration to assess the drivers of BOD effectiveness. We then used a number of objective criteria to test the statistical relationship of these criteria with Board effectiveness. Among other findings, the study revealed that the BODs’ Effectiveness Measure (BEM) increased with the academic level of the directors and the number of Boards on which Board members are approved.

Original languageEnglish
Title of host publicationContributions to Management Science
PublisherSpringer Science and Business Media Deutschland GmbH
Pages225-242
Number of pages18
DOIs
Publication statusPublished - 2021
Externally publishedYes

Publication series

NameContributions to Management Science
ISSN (Print)1431-1941
ISSN (Electronic)2197-716X

Keywords

  • Board of directors
  • Corporate governance
  • European Union
  • Financial services
  • Small states

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