PERCEIVED IMPORTANCE OF BOARD CHARACTERISTICS IN A CROSS-CULTURAL PERSPECTIVE. COMPARISON BETWEEN ITALIAN AND GERMANY COMPANIES

Manuscript Type: Empirical Research Question: Does national culture influence the perceived importance that different company members attribute to particularly relevant aspects of corporate governance? Research Findings/Insights: The study highlights specific factors company members consider of basic importance for guaranteeing effectiveness and efficiency in board of director activity. Our hypothesis suggests that such factors may differ for firms operating in different cultural contexts. Tests were conducted on a sample of 240 German and 130 Italian large companies. In line with existing literature, initial findings from the ongoing research indicate that the country of origin influences company members perceived importance of many aspects of corporate governance. Theoretical/Academic Implications: The results of the study could contribute to throwing light on corporate governance ‘in action’ (i.e. values, goals and recommendations that company members practise or consider important to guide board activity) which appear to depend directly on national culture and company characteristics. In this sense, formal features of corporate governance do not fully explain business conduct or performance, thus suggesting new avenues of research. Practitioner/Policy Implications: Research findings indicate that national culture and company characteristics influence the implementing and outcomes of models of corporate governance. Therefore, in assessing and improving business performance, practitioners and scholars besides the formal characteristics of corporate governance models, should consider the content and meaning that company members attribute to such models. Our findings furthermore, suggest that policy makers in regulating corporate governance should also take into account specific characteristics of the entrepreneurial scenario.