Journals

The central question posed in this paper will be how to organize board composition in order to ensure responsible corporate governance both from a CSR and a good governance perspective. Adopting a stakeholder approach to corporate governance, we analyze the arguments given by different theoretical approaches for linking specific board composition with financial performance and CSR, and discuss the empirical research conducted. Despite the inconclusive findings of empirical research, it can be argued that diverse stakeholders on the board will promote CSR activities of the firm, but at the same time will increase board capital (which ultimately may lead to a better financial performance). Finally, we propose a model for selecting board members based on both ethical and pragmatic arguments. Abstract: Most investors agree that investing in emerging markets is risky, but not all of them agree on the best strategy to deal with this risk. Some investors view the high volatility of these markets as an opportunity to make large short- term profits and actively trade; others view it as a risk than can only be borne with a long-term perspective and passively hold their portfolios. The fact is, emerging markets are populated by black swans. These large, unpredictable swings have a massive impact on long-term performance and are concentrated in a negligible proportion of days. Therefore, predicting them successfully and consistently over time is virtually impossible. As a result, the black swan perspective suggests that investors in emerging markets should avoid engaging in futile market timing and follow instead a passive approach.