This paper gives an overview on the induction process for board members with a focus on the Italian context. First, considering the limited prior academic literature, we contribute to the understanding of the induction term. We propose a multilevel theoretical framework that synthesizes and integrates the poor and contrasting prior literature on the definition and the attendees of the program. We posit that the process is intended for all the appointed directors as it is tailored and specific of each company, due to the peculiar environment in which the firm operates. Second, we investigate how these programs are designed and how they can be beneficial for a company. Using a multiple case study on five Italian listed companies, we support the view that induction programs are a fundamental tool to assure that each director fully contributes with his own human and social capital to the board meetings in the shortest possible time, thus guaranteeing a positive impact on the value creation. Instead, in order to increase future directors’ knowledge, pre-appointment preparation courses are particularly relevant.

THE INDUCTION OF BOARD DIRECTORS: A CASE STUDY PERSPECTIVE

GRASSI, LAURA;GIORGINO, MARCO;
2016

Abstract

This paper gives an overview on the induction process for board members with a focus on the Italian context. First, considering the limited prior academic literature, we contribute to the understanding of the induction term. We propose a multilevel theoretical framework that synthesizes and integrates the poor and contrasting prior literature on the definition and the attendees of the program. We posit that the process is intended for all the appointed directors as it is tailored and specific of each company, due to the peculiar environment in which the firm operates. Second, we investigate how these programs are designed and how they can be beneficial for a company. Using a multiple case study on five Italian listed companies, we support the view that induction programs are a fundamental tool to assure that each director fully contributes with his own human and social capital to the board meetings in the shortest possible time, thus guaranteeing a positive impact on the value creation. Instead, in order to increase future directors’ knowledge, pre-appointment preparation courses are particularly relevant.
Corporate Governance, Induction, Board, Director, Case Study
File in questo prodotto:
File Dimensione Formato  
THE INDUCTION OF BOARD DIRECTORS.pdf

accesso aperto

: Post-Print (DRAFT o Author’s Accepted Manuscript-AAM)
Dimensione 674.14 kB
Formato Adobe PDF
674.14 kB Adobe PDF Visualizza/Apri

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11311/1007071
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 2
  • ???jsp.display-item.citation.isi??? ND
social impact