An Exploratory Study of Corporate Governance in English Further Education Colleges: Association Between Board Composition and High Levels of College Effectiveness

As the board of directors of autonomous colleges, the governing body must exhibit high levels of knowledge and skills to ensure their colleges are highly effective and solvent. The study aims to explore corporate governance in English Further Education colleges and to specifically examine the association between board composition and high levels of college effectiveness. Its objectives are: To investigate whether Outsider representation on the governing board is associated with high levels of college educational effectiveness; to investigate whether Insider representation on the governing board is associated with high levels of college educational effectiveness; to investigate whether Outsider and Insider knowledge and representation on the governing board is associated with high levels of college educational and financial effectiveness; and to investigate whether the representation of the Outsider and the Insider on the governing board working in a team environment is associated with high levels of college effectiveness. Data from a sample size of 215 colleges with 172 Ofsted-inspected colleges from 2010 to 2018 was used in the study. The study adopted a mixed-methodology. First, the study found that the Outsider and the Insider representation on the governing board is associated with high levels of college educational and financial effectiveness, using Generalised Least Squares regression. Second, the study found that the Outsider and the Insider governing board members working as a team are associated with high levels of college effectiveness, using a structural equation model. Third, the Kaiser-Meyer-Olkin (KMO) statistical test was used to determine the suitability of the data. The data and results indicate that the entire governing board (both insider and outsider governors) has a significant association with high levels of college effectiveness. The practical and theoretical implications reveal both insider and outsider governing board members as education stakeholders who have an association with high levels of college effectiveness.