Financial knowledge for corporate boards: what should board members know?

Although there is a vast body of research on corporate governance and boards, no one seems to have addressed yet the following question: What should board members know financial theory practice properly discharge their fiduciary responsibilities? The lack reflection this issue somewhat surprising given central role matters are supposed play in board’s discussions decision making. objective study offer first question. Different views what corporation who “owns” it, whether it only shareholders or also broader set other stakeholders, result different requirements concerning knowledge have. One such view agency which considers that main management create value for shareholders. From perspective will follow understand primarily dynamics creation, with concomitant focus long-term strategy formulation. Another stakeholder stresses importance survival corporation. In case be conversant short term management, specially cash liquidity management. counterintuitive when gives priority interests shareholders, opposition stakeholders beyond law good commercial recommends, long time while more inclusive requires attention short-term