Lived Experience of Board Independence Under Shareholder Pressure in Corporate Governance

Abstract

Corporate governance is a critical area in management studies, with board independence serving as a cornerstone for accountability and ethical oversight. This study aims to explore how directors experience and interpret independence under majority shareholder influence—a topic that remains underexplored qualitatively. While quantitative research has examined board composition and performance, this study focuses on the subjective dimensions of independence, addressing how directors navigate relational, ethical, and emotional pressures. Using an Interpretative Phenomenological Analysis (IPA) approach, in-depth semi-structured interviews were conducted with twelve experienced board members. Data were thematically analyzed to uncover core meanings related to directors’ lived experiences. The findings indicate that independence is not merely a regulatory construct but a dynamic, negotiated process shaped by ethical dilemmas, personal values, and socio-cultural expectations. Four key themes emerged: navigating independence under shareholder pressure, managing ethical and emotional burdens, recognizing subtle conflicts of interest, and responding to new transparency demands in digital governance. These findings contribute to governance scholarship by reframing independence as a lived and interpretative experience rather than a structural compliance issue. The study highlights the importance of ethical resilience and directors’ interpretative agency, offering a more human-centered understanding of corporate governance and guiding future reforms toward the realities faced by board members.