Supervisory Board’s Contribution to Corporate Strategy: Evidence from Croatian Companies

The main objective of this paper is to expand understanding of how supervisory boards contribute to corporate strategy. Using a sample of supervisory boards of Croatian listed companies, in this paper we investigate: (1) the overall level of supervisory boards involvement in corporate strategy, and (2) how are supervisory board’s structural attributes related to the intensity of strategic involvement. Our results indicate that supervisory boards indeed have an active role in shaping and supporting the corporate strategy. Strategic activities that supervisory boards most often execute are authorizing strategic decisions proposed by the management board and crisis management activities.