BOARD CHARACTERISTICS, MANAGERIAL CONTROLS AND CORPORATE-STRATEGY - ASTUDY OF US HOSPITALS

This study examined the relationships among board characteristics, emp hasis 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., infreque nt CEO-board meetings and lack of a strategic planning committee, are likely to increase the emphasis on outcome-based controls. Results als o indicate that an emphasis on outcome-based controls is likely to lea d to more risk averse strategic decisions on the part of the CEO, spec ifically with respect to capital investment.