scholarly journals The moderating effect of the board of directors on firm value and tax planning: Evidence from European listed firms

2019 ◽  
Vol 19 (4) ◽  
pp. 331-343 ◽  
Author(s):  
Ftouhi Khaoula ◽  
Dabboussi Moez
Keyword(s):  
Board Of Directors ◽  
Firm Value ◽  
Tax Planning ◽  
Moderating Effect ◽  
Listed Firms ◽  
The Board Of Directors

The effect of royal family members on the board on firm performance in Saudi Arabia

2019 ◽  
Vol 10 (3) ◽  
pp. 487-518
Author(s):  
Zahra AL Nasser
Keyword(s):  
Saudi Arabia ◽  
Firm Performance ◽  
Board Of Directors ◽  
Firm Value ◽  
Family Members ◽  
Resource Dependence Theory ◽  
Royal Family ◽  
Content Type ◽  
Listed Firms ◽  
The Board Of Directors

Purpose The purpose of this paper is to empirically examine the effect of royal family members on firm performance of publicly listed companies in Saudi Arabia. Design/methodology/approach Using 491 firm-year observations of non-financial publicly listed firms in Saudi Arabia’s stock market between 2009 and 2013, the study employs, besides others, the advanced econometric technique GMM-system estimator. This allows the dynamic nature and control of the endogeneity problem to be accounted for in corporate governance and firm performance. Findings The main result is that the attendance of royal family members at board meetings negatively influences firm performance but does not have an influence on firm value. The results also show that firms with many independent royal family members on the board of directors have better firm performance and firm value. In addition, firms with a high number of royal family members presenting on the board have better firm performance. Research limitations/implications This study offers guidance to assist the further investigation of the SA Royal Family’s BoD membership either in SA or in other monarchy countries. It is interesting to compare these results in order to further understand the different effects that the Royal Family’s BoD membership have in such countries. This study’s results suggest that independent members of SA’s Royal Family on the BoD have some influence on firm performance in both the short and long term. Thus, policymakers should encourage the members of SA’s Royal Family to become more involved in firms’ BoDs. Practical implications This study offers guidance for further investigation of royal family members in the region or in other monarchy countries. It will be interesting to compare these results. The study suggests that royal family members on the board have a partial influence on firm performance, especially the independent ones. Thus, the policymakers should encourage more involvement of independent royal family members on the board. Social implications Foreign and minority investors, who invest in SA’s publicly listed firms, should note that when independent members of SA’s Royal Family are on the BoD their investment will benefit from the reduced risks and uncertainty. Originality/value To the best of the author’s knowledge, this is the first study undertaken to investigate empirically the influence a royal family’s presence on the board of directors has on firm performance. This study is based on both theories, namely the agency theory and resource dependence theory.

scholarly journals Board of directors, performance and firm value in Brazilian listed state-owned enterprises

2020 ◽  
Vol 18 (2) ◽  
pp. 1
Author(s):  
Carolina Coletta ◽  
Roberto Arruda de Souza Lima
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Board Of Directors ◽  
Firm Value ◽  
Board Structure ◽  
Agency Conflicts ◽  
Governance Practices ◽  
The Board Of Directors ◽  
Structure Index ◽  
Corporate Governance Practice

<p>This paper investigates the relationship between the board of directors' structure and firm performance and the value of Brazilian listed state-owned enterprises (SOEs), from 2002 to 2017, totaling 327 observations using an unbalanced panel data with fixed and random effects regressions. The evolution of corporate governance practices adopted by the boards is presented for this period, using a Board Structure Index (BSI). The results indicate a significant positive relation between the board's structure and firm performance, measured by ROE and ROA, and firm value, measured by Tobin's <em>q</em>. These findings are consistent with corporate governance literature, in the sense that the board's role of monitoring management reduces agency conflicts. The results also show an improvement in adopting corporate governance practice on Brazilian SOEs' boards over the last decade.</p>

scholarly journals Implementing the board of directors’ mechanism – An empirical study of the listed firms in Libya

2018 ◽  
Vol 14 (1) ◽  
pp. 22-33 ◽  
Author(s):  
Jill Atkins ◽  
Mohamed Zakari ◽  
Ismail Elshahoubi
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Boards Of Directors ◽  
Listed Companies ◽  
Board Members ◽  
Corporate Boards ◽  
Listed Firms ◽  
Stakeholder Groups ◽  
The Board Of Directors ◽  
Executive Managers

This paper aims to investigate the extent to which board of directors’ mechanism is implemented in Libyan listed companies. This includes a consideration of composition, duties and responsibilities of the board directors. This study employed a questionnaire survey to collect required data from four key stakeholder groups: Boards of Directors (BD), Executive Managers (EM), Regulators and External Auditors (RE) and Other Stakeholders (OS). The results of this study provided evidence that Libyan listed companies generally comply with the Libyan Corporate Governance Code (LCGC) requirements regarding the board composition: the findings assert that most boards have between three and eleven members, the majority of whom are non-executives and at least two or one-third of whom (whichever is greater) are independent. Moreover, the results indicate that general assemblies in Libyan listed companies are practically committed to the LCGC’s requirements regarding the appointment of board members and their length of tenure. The findings provide evidence that boards in Libyan listed companies are carrying out their duties and responsibilities in accordance with internal regulations and laws, as well as the stipulations of the LCGC (2007). Furthermore, the stakeholder groups were broadly satisfied that board members are devoting sufficient time and effort to discharge these duties and responsibilities properly. This study helps to enrich our understanding and knowledge of the current practice of corporate boards as a significant mechanism of corporate governance (CG) by being the first to address the board of directors’ mechanism in Libyan listed companies.

Board Risk Oversight and Corporate Tax-Planning Practices

2020 ◽  
Author(s):  
Mark S Beasley ◽  
Nathan C. Goldman ◽  
Christina Lewellen ◽  
Michelle McAllister
Keyword(s):  
Board Of Directors ◽  
Tax Planning ◽  
Enterprise Risk Management ◽  
Corporate Tax ◽  
Management Framework ◽  
Risk Management Framework ◽  
Enterprise Risk ◽  
The Board Of Directors ◽  
Tax Benefits ◽  
Risk Oversight

Risk oversight by the board of directors is a key component of a firm's enterprise risk management framework, and recently, boards have paid more attention to their firm's tax-planning activities. In this study, we use a hand-collected sample of proxy statement disclosures about the board's role in risk oversight and provide evidence that risk oversight is negatively associated with both tax uncertainty and overall tax burdens. We find that risk oversight is most strongly associated with positions that yield permanent tax benefits and also with less risky tax-planning activities. Overall, the evidence suggests that board risk oversight is associated with more effective tax-planning practices.

scholarly journals OWNERSHIP STRUCTURE AND BOARD EFFECTIVENESS AS DETERMINANTS OF TMT COMPENSATION IN SPANISH LISTED FIRMS / NUOSAVYBĖS FORMOS IR VALDYBOS EFEKTYVUMĄ LEMIANTYS VEIKSNIAI PASIRINKTOSE ISPANIJOS KOMPANIJOSE

2011 ◽  
Vol 12 (1) ◽  
pp. 92-109 ◽  
Author(s):  
Gregorio Sanchez-Marin ◽  
J. Samuel Baixauli-Soler ◽  
M. Encarnacion Lucas-Perez
Keyword(s):  
Panel Data ◽  
Board Of Directors ◽  
Ownership Structure ◽  
Top Management Team ◽  
Management Team ◽  
Ownership Concentration ◽  
Board Effectiveness ◽  
Listed Firms ◽  
The Board Of Directors

This study analyzes the influence of ownership structure and the board of directors on top management team (TMT) pay levels in a sample of Spanish listed firms. When panel data methodology is applied, the results show that TMT pay level is affected by the supervisory effectiveness of the board. This, in turn, is influenced by ownership concentration and the type of major shareholders. When ownership is dispersed, the board is more effective in their supervision and TMT pay level is lower. However, when ownership is concentrated, the quality of supervision and, consequently, TMT pay levels depend upon the type of shareholder that is predominant. Santrauka Analizuojama nuosavybes formos strukturos ir valdybos itaka aukšèiausio lygio Ispanijos kompaniju vadovu darbo užmokesèio dydžiui. Tyrimu duomenys parode, kad aukšèiausio lygio vadovu darbo užmokesèio dydis priklauso nuo valdybos kontroles ir jos efektyvumo itakos. Tai, žinoma, yra susijê su kompanijos savininko ir pagrindiniu akcininku pozicija. Kai savininko pozicija pasyvi, tuomet valdybos veiksmai kontroles srityje yra efektyvesni, taèiau aukšèiausio lygio vadovu darbo užmokesèio lygis yra gerokai mažesnis. Taèiau kai savininkas tiesiogiai dalyvauja kompanijos veikloje ir prisideda prie jos valdymo, tuomet kontroles kokybe ir aukšèiausio lygio vadovu darbo užmokesèio lygis priklauso nuo akcininko pozicijos.

scholarly journals Corporate Governance and Economic Performance: The Limit of Short Termism

2019 ◽  
Vol 3 (4) ◽  
pp. 49-61
Author(s):  
F. D. Tommaso ◽  
A. Gulinelli
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Economic Performance ◽  
Performance Indicators ◽  
Financial Management ◽  
Firm Value ◽  
Key Performance Indicators ◽  
Common Interest ◽  
The Board Of Directors ◽  
The Impact

This article includes exploring arguments and counterarguments in the context of conducting a scientific discussion on the impact of corporate governance on a company’s financial and economic performance. The main purpose of this paper is to determine the nature of the impact of corporate governance policy on the activities of economic entities. The systematization of literary sources and approaches to problem solving has shown that there are two opposing points of view: firm value, efficiency), on the other hand, a number of scientists are convinced that there is a positive influence of the functioning of the corporate governance system on the valuation of listed companies. The work emphasizes the decisive role of the board of directors of the company in the development and adoption of the strategic direction of development of the organization. The author points out in the study the need for coordinated interaction of the board of directors with the financial management of the company and the business owners in order to increase the efficiency and profitability of the business entity. It is stated that the key economic tools for achieving and implementing the strategic plans of the company can be the key performance indicators and accordingly developed measures to achieve such success. As a result, it is justified that corporate governance should not be a set of rules and mechanisms aimed at managing and controlling companies, but rather as a process by which companies become sensitive to stakeholder rights. The spread of corporate culture, according to the author of a work aimed at protecting the common interest, is facilitated by the existence of good rules and effective authorities that control their observance. Keywords: corporate governance, financial and economic activity, board of directors, key performance indicators.

scholarly journals DEWAN DIREKSI, DEWAN KOMISARIS TERHADAP NILAI PERUSAHAAN KONSUMSI : TOP 20 PERUSAHAAN TERDAFTAR DI BEI

2021 ◽  
Vol 5 (1) ◽  
pp. 01-07
Author(s):  
Hurian Kamela
Keyword(s):  
Decision Making ◽  
Board Of Directors ◽  
Multiple Regression ◽  
Firm Value ◽  
Boards Of Directors ◽  
Total Sample ◽  
Return On Assets ◽  
Good Evaluation ◽  
The Board Of Directors ◽  
Independent Variable

The board of directors and commissioners are parties who play a role in the company, especially in corporate decision making. The main objective of this research is to analyze the number of boards of directors and commissioners of firm value. The number of samples based on this study were 20 companies for 4 years (2014-2017). The total sample is 80 observations. The reason the sample was chosen because of the large consumption reasons that had a reputation and were well known in the community. The method used is multiple regression. The dependent variable for the use of measurement that is often used is Tobins-q. The independent variable is based on the measurement of the board of directors and the measurement of the board of commissioners in the company. In addition to this research, the control variables used were Return On Assets (ROA) and total assets. The results of the study explain that there is no effect of the two hypotheses of the board of directors and the board of commissioners on firm value. In general, the number of company leaders has no effect on company activities. The leader of the company has been carrying out its role as a board of monitoring. The contribution of the research is that companies that have carried out good evaluation and selection to increase firm value by implementing the board of directors and commissioners according to the standards.

scholarly journals Does Audit Committee Characteristics Promote Risk Management Practices in Nigerian Listed Firms?

2021 ◽  
Vol 10 (2) ◽  
pp. 70
Author(s):  
Stephen A. Ojeka ◽  
Alex Adeboye ◽  
Olajide Dahunsi
Keyword(s):  
Risk Management ◽  
Board Of Directors ◽  
Audit Committee ◽  
Financial Risk ◽  
Enterprise Risk Management ◽  
Audit Committees ◽  
Listed Firms ◽  
Enterprise Risk ◽  
The Board Of Directors ◽  
Accounting Expertise

There has been a huge and deluge of risk threatening industries at an unequalled magnitude in recent times. As such, the board of directors and senior executives are increasingly expected to manage their various organizations' risk portfolios, affecting their financial performance. This has led to the assigning of the risk assessment role to the audit committee. The board of directors and its audit committee play an essential function in Enterprise Risk Management (ERM) by building up the right condition or tone-at-the-top. Given the board's responsibilities for representing the interests of shareholders, it plays a vital role in overseeing management's approach to ERM. This study examined the relationship between audit committee characteristics and risk management of some selected listed firms in a developing country like Nigeria. The study used secondary data to describe the dependent variable (financial risk decomposed into credit risk and liquidity risk) and the explanatory variables (decomposed into audit committee accounting expertise, audit committee meetings, audit committee independence and audit committee gender). The study used pair sample t-test, student t-test, Pearson Moment Correlation and random panel data estimator for twenty (20) selected listed firms for 2012-2016. Findings indicate that there is a negative between audit committee accounting expertise and financial risk. This revealed that Accounting Expertise in Audit Committees are likely to involve in activities and practices to curb financial risk. In addition, the Audit committee meeting indicates a negative relationship with credit risk. Audit committee gender and audit committee independence have a negative effect on liquidity risk. Therefore, this study recommends that Audit committees embrace Enterprise Risk Management (ERM) to manage risks effectively across the organization. Risk management processes should be one of the major points of discussion during audit committee meetings.

scholarly journals The board of directors and the corporate tax planning: Empirical Evidence from Tunisia

2012 ◽  
Vol 2 (2) ◽  
pp. 142 ◽  
Author(s):  
Aliani Khaoula ◽  
Zarai Mohamed Ali
Keyword(s):  
Board Of Directors ◽  
Stock Exchange ◽  
Positive Association ◽  
Substantial Effect ◽  
Tax Planning ◽  
Tax Rates ◽  
Exchange Market ◽  
Corporate Tax ◽  
Effective Tax Rates ◽  
The Board Of Directors

Our study represents the first attempt to investigate whether board of directors’ attributes have an impact on corporate tax planning in a developing country. Using a sample of 32 companies listed on the Tunisian stock exchange market from 2000 to 2007, results indicate that duality and diversity on the board of directors significantly influences tax planning. Duality exhibits a negative relation with effective tax rates. However, diversity on the board shows a positive association. We don’t find relations between board size, independent directors and corporate tax planning. We contribute to the large literature on corporate tax planning by proposing that board’s characteristics may have a substantial effect on reducing effective tax rates. We add a new angle to existing studies on corporate tax governance by involving board’s diversity and sectorial effect. An implication of this study is that tax planning would be decreased by women’s presence on the board of directors. In addition, tax incentives granted by the state to some sectors may improve tax strategies.

scholarly journals Impact of Corporate Governance on Corporate Value: Research in Vietnam

2020 ◽  
Vol 11 (1) ◽  
pp. 161
Author(s):  
Nguyen Thi Thanh Phuong ◽  
Dang Ngoc Hung
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Firm Value ◽  
Direct Impact ◽  
Book Value ◽  
Research Results ◽  
Board Of Director ◽  
The Board Of Directors ◽  
The Individual ◽  
The Impact

The paper examines the impact of corporate governance (CG) on firm value (FV) of enterprises in Vietnam. We consider the GC issue from the individual aspects of each member of the Board of Directors (BOD). The research uses GLS regression model, data collected at energy enterprises listed on the stock market in Vietnam during the period 2008 - 2018, with 2937 observations. The research results have found that the size of the BOD has a direct impact on FV, while it is interesting that the Board of Directors' independence has a direct impact on FV when measured by market value, but is in an inverse relation with FV if measured at book value. In addition, BOD chairperson cum CEO has an inverse impact on FV and female BOD members do not have an impact on FV. Further, the research results also prove that an enterprise’s size is directly related with its value, whereas financial leverage is inversely related with the enterprise’s value. Empirical research results serve as a useful basis for enterprises to increase their value, thus enabling the consideration of factors of the board of director at each enterprise.

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