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In recent years, increasing scholarly attention has been directed towards the field of governing bodies research. However, little attention has been paid to the behavioural perspective on studying public boards. Aiming to fulfil this gap this paper offers a review of the international literature addressing boards behaviour within the unique organizational setting of public sector.

Considering as behavioural studies those publications focusing on actors, processes, decision-making, relationships and interaction inside and outside the boardroom, 91 papers were analysed. Adopting the framework provided by Huse (2007), the papers are classified following four behavioural dimensions/blocks which are crucial to understand board dynamics: board members, interactions, structures and leadership, decision-making culture.

The literature review shows the increasing production – in the last years – on the theoretical issues related to the behavioural perspective in public governance literature. The most relevant part of these contributions addresses the theoretical dimensions of the board member’s characteristics and of structural leadership.

The manuscript reveals the need to adopt a more organizational approach for studying the behavioural categories and levels of analysis proposed by public governance literature. Moreover, the article evidences some possible directions for future research that might further contribute to enrich the ‘behavioural governance perspective’ in public organizations.

Purpose – Starting from public and corporate governance literature, the chapter aims to evidence the opportunity in exploring board of directors in public organisations, where the focus is on a behavioural perspective.Design/methodology/approach – Presenting two levels of analysis: (a) the relationship between the board and ‘external’ stakeholders, and (b) the relationship between the board and managers, a framework is proposed evidencing which factors (variables, constructs and concepts) logically should be considered as part of the explanation of boards’ role in public organisations’ innovation.Findings – The chapter provides support for a board model in public governance, evidencing both the opportunity to assume a multi-paradigm perspective and the existing similarities and differences between boards in public and corporate governance approach. It is possible, for example, to empirically apply the framework both to different national context and to different levels of public organisations.Originality/value of chapter – The chapter presents theoretical perspectives on governance research, and both some pioneer studies in public sector research and some of the major contribution in corporate governance studies. All of them have been put together, introducing a new stream of research in the debate on the micro (organisational) level of governance in public sector.

This study looks at board governance in Ontario hospitals.

We conducted a research of the hospitals’ websites and a survey of board directors to study the board structure and examine governance practice in Ontario hospitals.

The findings suggest that the board structure and process in Ontario hospitals are in compliance with Accreditation Canada’s Governance Standards, and such administrative controls are appropriate. Ontario hospital boards, in general, have fulfilled their key functions of governance in terms of working as an effective board; developing a clear direction; supporting the organization to achieve its mandate; maintaining positive relationships with external stakeholders; and being accountable and achieving sustainable results. Building knowledge through information is an area where improvement is needed.

Ontario hospitals have implemented appropriate administrative controls in terms of board composition and committee structure. The results of a survey of 99 board directors from over 25 hospitals suggest that directors, in general, have a good understanding of their governance role and relationship with senior management as well as the government. The findings are also supportive of good governance practice where executives manage and nonexecutive directors monitor the performance of the executives. According to the respondents, Ontario’s hospital boards are actively involved in setting the mission, strategic goals and objectives of their organizations, and they take appropriate steps to ensure that risk management, client safety, and quality improvements are incorporated in their governance and strategic planning process. In order to discharge their fiduciary duty effectively, respondents would like to have more information from different sources. This is an area where management accounting professionals can become involved such that relevant information from a variety of sources, especially external sources, are provided to board directors for decision making.

Ontario’s hospital sector has undertaken initiatives through research and publications to promote good governance practice. Such leadership is critical to ensure that directors have the competence and skills to discharge their duties and responsibilities diligently. Hospital boards should focus on renewal while ensuring that board directors are equipped for the challenging task of governing through professional development and continuing education.

Limitations related to the use of questionnaire applies to this research study. Self-selection bias and low response rate limit the generalizability of the findings. Future research can examine the behavior of directors in the boardroom and the impact of governance variables on hospital performance, such as quality of care and patient safety.

Taking a micro-perspective of governance that includes problem-solving and stakeholder involvement capabilities as part of the strategic steering role, we wish to contribute to the understanding of the human side of governance. Thus we have studied the relationships between the board and its management and stakeholders, and in so doing we recognize internal and external actors as well as the board itself, and how they all contribute to the implementation of the governance function.

Based on an interpretative approach that focuses on change over time, we performed a qualitative empirical study of the governance of Robotdalen, a small non-profit public organization in Sweden that is a joint public and private collaboration. This chapter forms part of a longitudinal study that has been carried out since 2009. It is based primarily on interviews with board members, management and other stakeholders, and complemented by document studies and observations.

Governance practice entails multiple and multilevel tasks, and the tensions between representativeness/professional boards, conformance/performance, and controlling/partnering up with management, are prevalent in both small non-profit and public organizations. According to our results the apparent choice between the extremes of each tension is, however, not a choice at all but rather a balancing act. In trying to balance tensions through collaboration between managers, board, financiers, and the hosting university, new governance structures and practices emerge at the organizational level.

By following the process of the emergence of a new board, we illustrate how various actors work together to co-produce governance functions in practice. In the past little or no effort has been made to take into account contextual factors such as organizational size – an aspect that may influence or shape board characteristics and work methodology. We therefore attempt to do so in our chapter, by studying the emergence of a new board in a small public organization, what possible paradoxes and tensions are involved in such work, and how such tensions are managed.

The purpose of this general review is to enhance understanding of the importance of a corporation’s whole ethics of governance regime and the connection to governance practices. This connection is often missing from corporate governance discussion. There is need for better business community awareness of a well-developed ethics of governance regime guiding appropriate board structure and composition choices subject to firm age and size, understanding of how these choices evolve as the firm matures and grows, plus the benefits from more emphasis in this area for company director training and development. This paper synthesises the theoretical and empirical insight from the ethics and corporate governance literatures to give guidance on best practice for large, medium size and small stock exchange listed companies. This synthesis of the literature evidences that the preferred Australian Institute of Company Directors agency theory prescription for a corporate board is not always optimal. In terms of practical implications advice is given on sound choices on board composition, director selection, plus director training and development that will give the best probability of effective board decisions and strong firm performance – this is not ‘one size fits all’ corporations advice. Future research should focus on whole ethics of governance regimes and governance practices in place for companies that have succeeded compared with companies that have failed. This will improve understanding in this area. This is a substantial future research agenda item as deeper knowledge of this contrast may add significantly to understanding of corporate success and failure.

The Canadian mutual fund setting is unique in that two governance mechanisms – corporate and trust – coexist. This study empirically examines the impact of each mechanism on fund fees and performance. We find that corporate class funds charge higher fees but deliver superior fee-adjusted returns than trust funds. We then analyze the impact of various board characteristics on fees and performance for corporate class funds. We find that a board with smaller size, CEO duality, and a higher percentage of independent directors is more likely to charge lower fees. In addition, smaller boards are strongly associated with higher fee-adjusted performance. Our study supports agency theory over stewardship theory and provides valuable guidelines for Canadian investors and regulatory agencies.

Large companies are the dominant forms of wealth creation in society today. As well as providing jobs and export income, they are key influences on social cohesion. We ignore how companies are run at a peril to us all. However, today investors are increasingly concerned about the ethical behaviour of those who run companies. Regular disclosures that directors and executives have behaved unethically reflect badly on the corporate sector as a vehicle for investor funds. By comparison, Australian company directors are increasingly stating that there is already too much concentration on the mechanisms of corporate governance, indicating that they will happily tick the boxes, but do little more.

In the latter part of the 20th century, companies discovered mission. The key elements of any mission must include the major corporate participants – investors, suppliers, customers, employees and society. The role of management is to develop a structure that can operationalise the mission. Such an approach puts ethics – how we treat other people – at the core of a company's activities. Trust is a critical element in how the interests of these stakeholders are taken up in decision-making and embedded in strategy, plans and action on the ground.

In the aftermath of significant corporate collapses in the 1980s and then again at the start of this century, companies also discovered corporate governance. According to the much referenced Cadbury Committee in the U.K., corporate governance is the system by which companies are directed and controlled, i.e., a the system of checks and balances for effective resolution of conflicts and control over the exercise of managerial power.

This paper suggests that an alternative “professional” approach to governance is likely to be more effective. Today, the role of management is to “add value” and contribute to the “good” of society. This good is the collective set of stakeholder interests entrusted to the governing board to look after. A governance model that integrates the human good with the operations of ‘mind’ in terms of learning and leadership highlights eight distinctive “products,” the eighth being valued products and by-products delivered to each stakeholder. The model is structured around the person's capacity to ask four categories of questions, including those that provide orientation and direction.

The model is used to examine a contemporary governance issue experienced by the board of directors at the National Australia Bank Limited.

As there is inclusive evidence on relationship between board characteristics and firm performance in the Thai context, and mixed findings of this relationship are usually reported from previous studies, this study tries to clarify a reason for the mixed finding by determining the impact of board structures on different quantile levels of firm performance. Building on extant literature and using a developed econometric technique, the Quantile Analysis, on a sample of 446 listed firms in Thailand for a 15-year period ranging from 2000 to 2014, empirical evidence is provided which is consistent with prior studies that some characteristics of the board as the core mechanisms of corporate governance, i.e., board independence, board size, board meeting frequency, and dual role leadership on board, have significant influence on performance of Thai firms. In particular, when considering different quantile levels of firm performance, board structures are found to have different effects across quantile of performance distribution. Board independence and dual role leadership on board are found to have a significant influence on only moderate-performing firms, while board size and board meeting frequency are revealed as having significant impact on only firms with high-performance which need more effectiveness of the board in overseeing and supervising decision-making of the executives. Thus, these findings indicate that considering different quantile levels of firm performance for the board structures and performance relationship should be a reason of previous mixed findings. Moreover, the findings should be important information in encouraging better understanding an optimal governance system in Thailand for related stakeholders such as policymakers, corporate firms, and investors.

Purpose – Grant-giving foundation leaders are increasingly concerned with understanding the primary role their institutions are pressured to play in financing the growing nonprofit sectors. The main objective of the chapter is to determine whether effective governance plays a major role in driving foundations’ innovation and value-creation processes.Methodology – Building on the idea that foundations should act as financial partners, managerial experts, and innovator facilitators who deal with the projects proposed by nonprofit organizations, this chapter uses a survey and the annual reports of Italian grant-giving foundations to isolate their records in term of governance, innovation attitude, and performance.Findings – The results of this chapter contribute to improving understanding of the drivers that help foundations to improve the sophistication level of the grant-giving process. In particular, the analysis of governance provides relevant insights about the path foundations follow to incorporate selected tailored methods and practices from the “for profit” competitive arena to improve foundations’ output and nonprofit grantees’ outcomes.Social implication – Many academics, political leaders, and practitioners expect foundations to play the unique dual role of merchant bank and venture capitalist to foster the positive impact of nonprofit organizations on societies and people. The findings of this chapter facilitate this process.Originality/value of the chapter – The main contribution of this study lies in proposing and testing a theoretical framework that foundations can implement to disseminate liquidity and managerial expertise efficiently among selected grantees and to improve grantees’ social outcome.