In Board We Trust

Adding to the stream of corporate governance literature, this study presents a simple method to examine the role of corporate board. It deconstructs the board type based on the interaction between the CEO and the board and among the board members. A simple two time period model is formulated to derive various hypotheses that can be tested using empirical analysis. The paper also makes an attempt to understand the contemporary turbulence in local businesses engendered by corporate governance failure, using the theoretical insights of the model