Corporate Governance and Board Composition: diversity and independence of Australian boards

The board of directors is one of a number of internal governance mechanisms that are intended to ensure that the interests of shareholders and managers are closely aligned, and to discipline or remove ineffective management teams. Among the most significant governance issues currently faced by the modern corporation are those relating to diversity, such as gender and age, and independence of directors. While board diversity and independence has been a growing area of research in recent years, most empirical research on this topic has been restricted to US data. The generalisability of such findings may not extend across national boundaries due to different regulatory and economic environments, cultural…