This study examined the relationships among board characteristics, emphasis on managerial controls, and corporate strategy. Results suggest that certain board characteristics that decrease board members’ access to information about CEO performance-related behavior, e.g., infrequent CEO-board meetings and lack of a strategic planning committee, are likely to increase the emphasis on out come based controls. Results also indicate that an emphasis on out come based controls is likely to lead to more risk averse strategic decisions on the part of the CEO, specifically with respect to capital investment.
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