Behavioral Corporate Governance in Practice

Behavioral Corporate Governance in Practice provides readers with a comprehensive understanding of corporate governance and its challenges.

While covering the key aspects of any board’s agenda, the book goes a step further by deconstructing behavioral dynamics and balancing both leadership and oversight in its examination of governance. The book explores the psychological aspects of decision-making and boardroom dynamics, including ethics, morals, rationality, biases, and emotions. Building on these considerations, the author presents a new leadership model in reaction to the classic model of CEO narcissism, one based on strategic and empathetic leadership. A case is also made for the internally and externally balanced board, which exhibits an effective mix of behavioral dynamics and strategic sensitivity to the wider societal context beyond organizational interests. Topics covered include information management, finance, accounting, risk management, fraud and corruption, purpose, risk, strategy, and the role of the external auditor as ally of the non-executive. Case studies and reflection questions throughout the book serve to enhance readers’ understanding of the nuances of these topics.

This book is essential for postgraduates and practitioners interested in corporate governance, strategy, leadership, and oversight.

Online resources for instructors include a set of slides for each chapter.

Jan Stolker serves as Director of Leadership and Governance at the Erasmus School of Economics/EURAC, Erasmus University Rotterdam, and is founder of the Erasmus Governance Institute. He advises boards and lectures internationally on governance, strategy and risk.