Remuneration committee and corporate failure

2015 ◽  
Vol 15 (5) ◽  
pp. 623-640 ◽  
Author(s):  
Kingsley Opoku Appiah ◽  
Amon Chizema
Keyword(s):  
Design Methodology ◽  
Corporate Boards ◽  
Cross Sectional ◽  
Content Type ◽  
Corporate Failure ◽  
Financial Firms ◽  
Fixed And Random Effects ◽  
Board Monitoring ◽  
The Uk ◽  
Practical Implications

Purpose – This study aims to examine the role the structure of corporate boards plays in the failure of the firm. Specifically, it examines whether the remuneration committee is related to corporate failure in the UK. Design/methodology/approach – The study uses 1,835 firm-year observations for 98 failed and 269 non-failed UK-listed non-financial firms between the periods of 1994 and 2011. This study used pooled cross-sectional, fixed and random effects LOGIT models to estimate whether corporate failure is related to remuneration committee in the UK. Findings – The findings indicate that corporate failure is negatively related to the independence of the remuneration committee chairman and remuneration committee’s effectiveness but not remuneration committee’s presence, size and meetings. However, a positive and significant relationship was observed between corporate failure and remuneration committee independence. Practical implications – The findings of the study provide support for the appropriateness of agency theory as analytical lens through which to study the efficacy of remuneration committee, especially the independence of the remuneration committee chairperson, as a board monitoring device, in the context of corporate failure. Originality/value – The paper adds to existing literature on corporate governance by establishing the likely causes of corporate failure in the UK.

ESMA issues Brexit opinions to EU regulators: a warning shot not only to the UK but also to the EU27

2017 ◽  
Vol 18 (4) ◽  
pp. 50-52
Author(s):  
William Yonge ◽  
Simon Currie
Keyword(s):  
Financial Services ◽  
Design Methodology ◽  
Content Type ◽  
Regulatory Response ◽  
Market Participants ◽  
Financial Firms ◽  
Practical Guidance ◽  
The Uk ◽  
Practical Implications ◽  
The Eu

Purpose To summarize and analyse four opinions issued in May and July 2017 by the European Securities and Markets Authority (“ESMA”) concerning regulatory and supervisory arbitrage risks that arise as a result of increased requests from financial market participants to relocate activities and functions in the EU27 following the UK’s decision to withdraw from the EU, and the expected regulatory response to those risks. Design/methodology/approach Discusses the possible relocation of financial firms, activities and functions following the UK’s decision to withdraw from EU; the resulting cross-sectoral regulatory and supervisory arbitrage risks that ESMA foresees; nine principles that ESMA enumerates to guide its regulatory response to those risks; some common themes that emerge from ESMA’s July Opinions; and the implications for UK firms and trading venues seeking to establish a presence in the EU 27. Findings ESMA foresees regulatory and arbitrage risks in Brexit and a potential “race to the bottom” as certain national regulators jostle for and grab UK market share. Practical implications UK firms and trading venues seeking to establish a presence in the EU27 from which to operate will need to give detailed consideration and focus to the resources and operational substance which will need to be located in the jurisdiction in which that presence is established. Originality/value Practical guidance from experienced financial services, securities and fund management lawyers.

scholarly journals Women on boards and monitoring tasks: an empirical application of Kanter's theory

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sara De Masi ◽  
Agnieszka Słomka-Gołębiowska ◽  
Andrea Paci
Keyword(s):  
Design Methodology ◽  
Corporate Boards ◽  
Ongoing Debate ◽  
Content Type ◽  
Female Directors ◽  
Women On Boards ◽  
Board Monitoring ◽  
Women On Corporate Boards ◽  
The Relationship ◽  
Practical Implications

PurposeThis paper examines the relationship between women on boards and board monitoring tasks depending on group categories identified in the Kanter's theory.Design/methodology/approachUsing a sample of the largest listed companies in Spain, Italy and France during the period 2007–2017, this study tests the effect of women's presence based on the following board categories: (1) skewed boards with a percentage of women that is less than 20%; (2) tilted boards with a percentage of women that ranges from 20% to 33%; (3) tilted boards with a percentage of women that is more than 33%; and (4) balanced boards with an equal or quasi-equal gender distribution. The authors use the case of the gender board quota regulation in different European Union countries.FindingsThe results suggest that tilted boards engage in stronger firm monitoring and that the effect of women on board monitoring tasks is positive and statistically significant when the percentage of female directors reaches the threshold of 33%.Practical implicationsThe outcomes of this study help policymakers identify the minimum threshold that quota regulations should mandate in order for boards to be effective.Originality/valueThis paper moves forward the ongoing debate about the effect of women on corporate boards, shifting the focus from the ratio or presence of female directors to the size of the group they form within the board. To the best of authors’ knowledge, this is the first study to test Kanter's theory by investigating the relationship between women on boards and board monitoring.

Capital structure and firm performance in European SMEs

2019 ◽  
Vol 45 (5) ◽  
pp. 582-601 ◽  
Author(s):  
Kang Li ◽  
Jyrki Niskanen ◽  
Mervi Niskanen
Keyword(s):  
Firm Performance ◽  
Capital Structure ◽  
Credit Risk ◽  
Design Methodology ◽  
Debt Ratio ◽  
Cross Sectional ◽  
Content Type ◽  
The Uk ◽  
The Relationship ◽  
Practical Implications

Purpose The purpose of this paper is to investigate whether the relationship between capital structure and firm performance in small- and medium-sized enterprises (SMEs) is moderated by credit risk. Design/methodology/approach The authors empirically test whether an SME’s credit risk affects the SME’s relationship between capital structure and firm performance by using a 2012 cross-sectional sample of European SMEs from Austria, Belgium, Finland, France, Germany, Italy, Portugal, Spain, Sweden and the UK. Findings The empirical results suggest that in low credit risk SMEs, the debt ratio is negatively related to firm performance; however, this relationship is not present in high credit risk SMEs. Therefore, it is indicated that SME credit risk moderates the relationship between capital structure and firm performance. Practical implications The findings of the paper will enable financial managers to understand the importance of SMEs’ credit risk and will assist them in maximizing firms’ performance. Originality/value This paper extends the findings of previous studies by examining whether credit risk affects the relationship between capital structure and firm performance.

scholarly journals Implications of divergences in adult protection legislation

2016 ◽  
Vol 18 (3) ◽  
pp. 149-160 ◽  
Author(s):  
Lorna Montgomery ◽  
Janet Anand ◽  
Kathryn Mackay ◽  
Brian Taylor ◽  
Katherine C. Pearson ◽  
...  
Keyword(s):  
Design Methodology ◽  
Elder Abuse ◽  
Consensus Model ◽  
Content Type ◽  
Legal Responses ◽  
The Usa ◽  
Protection Legislation ◽  
The Uk ◽  
Practical Implications ◽  
Adult Protection

Purpose – The purpose of this paper is to explore the similarities and differences of legal responses to older adults who may be at risk of harm or abuse in the UK, Ireland, Australia and the USA. Design/methodology/approach – The authors draw upon a review of elder abuse and adult protection undertaken on behalf of the commissioner for older people in Northern Ireland. This paper focusses on the desk top mapping of the different legal approaches and draws upon wider literature to frame the discussion of the relative strengths and weaknesses of the different legal responses. Findings – Arguments exist both for and against each legal approach. Differences in defining the scope and powers of adult protection legislation in the UK and internationally are highlighted. Research limitations/implications – This review was undertaken in late 2013; while the authors have updated the mapping to take account of subsequent changes, some statutory guidance is not yet available. While the expertise of a group of experienced professionals in the field of adult safeguarding was utilized, it was not feasible to employ a formal survey or consensus model. Practical implications – Some countries have already introduced APL and others are considering doing so. The potential advantages and challenges of introducing APL are highlighted. Social implications – The introduction of legislation may give professionals increased powers to prevent and reduce abuse of adults, but this would also change the dynamic of relationships within families and between families and professionals. Originality/value – This paper provides an accessible discussion of APL across the UK and internationally which to date has been lacking from the literature.

Employees’ eldercare demands, strain, and perceived support

2015 ◽  
Vol 30 (2) ◽  
pp. 183-198 ◽  
Author(s):  
Hannes Zacher ◽  
Heiko Schulz
Keyword(s):  
Design Methodology ◽  
Self Report ◽  
Perceived Support ◽  
Use Of Self ◽  
Cross Sectional ◽  
Content Type ◽  
Cross Sectional Design ◽  
The Relationship ◽  
Practical Implications ◽  
Employed Caregivers

Purpose – In many countries, both the number of older people in need of care and the number of employed caregivers of elderly relatives will increase over the next decades. The purpose of this paper is to examine the extent to which perceived organizational, supervisor, and coworker support for eldercare reduce employed caregivers’ strain and weaken the relationship between eldercare demands and strain. Design/methodology/approach – Survey data were collected from 100 employed caregivers from one organization. Findings – Results showed that eldercare demands were positively related to strain, and perceived organizational eldercare support (POES) was negatively related to strain. In addition, high POES weakened the relationship between eldercare demands and strain. Research limitations/implications – The cross-sectional design and use of self-report scales constitute limitations of the study. Practical implications – POES is a resource for employed caregivers, especially when their eldercare demands are high. Originality/value – This research highlights the relative importance of different forms of perceived support for reducing employed caregivers’ strain and weakening the relationship between eldercare demands and strain.

scholarly journals Foresight in cities: on the possibility of a “strategic urban intelligence”

foresight ◽  
2016 ◽  
Vol 18 (5) ◽  
pp. 469-490 ◽  
Author(s):  
Joe Ravetz ◽  
Ian Douglas Miles
Keyword(s):  
Complex Systems ◽  
Analytical Method ◽  
Design Methodology ◽  
Content Type ◽  
Work In Progress ◽  
Strategic Policy ◽  
The Uk ◽  
The City ◽  
Practical Implications ◽  
Practical Recommendations

Purpose This paper aims to review the challenges of urban foresight via an analytical method: apply this to the city demonstrations on the UK Foresight Future of Cities: and explore the implications for ways forward. Design/methodology/approach The methodology is based on the principles of co-evolutionary complex systems, a newly developed toolkit of “synergistic mapping and design”, and its application in a “synergy foresight” method. Findings The UK Foresight Future of Cities is work in progress, but some early lessons are emerging – the need for transparency in foresight method – and the wider context of strategic policy intelligence. Practical implications The paper has practical recommendations, and a set of propositions, (under active discussion in 2015), which are based on the analysis. Originality/value The paper aims to demonstrate an application of “synergy foresight” with wide benefits for cities and the communities within them.

Agency costs in the market for corporate control: evidence from UK takeovers

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Edward Jones ◽  
Bing Xu ◽  
Konstantin Kamp
Keyword(s):  
Agency Costs ◽  
Design Methodology ◽  
Corporate Control ◽  
Sales Growth ◽  
Content Type ◽  
Market For Corporate Control ◽  
The Uk ◽  
Practical Implications ◽  
Theory Framework ◽  
Made In

Purpose This paper aims to examine whether agency costs predict disciplinary takeover likelihood for the UK listed companies between 1986 and 2015. Design/methodology/approach Using survival analysis, the approach is to identify candidates for disciplinary takeover on the basis of Tobin’s Q (TQ), which is consistent with the approach advocated by Manne (1965). This study then examines how indicators of agency costs affect takeover likelihood within the set of disciplinary candidates. Findings This paper provides evidence of the effectiveness of TQ, rather than excess return, in identifying disciplinary takeover candidates. Takeover hazard for disciplinary candidates is higher for companies with higher levels of asset utilization and sales growth in particular. Companies with stronger agency problems are relatively less susceptible to disciplinary takeover. Practical implications Given the UK context of the study, where anti-takeover provisions are disallowed and when compared to findings of US studies, the results imply some support for the effectiveness of an open merger policy. Originality/value While the connection between takeover likelihood and the market for corporate control has been made in previous studies, the study adopts a more explicit agency theory framework than previous studies of takeover likelihood. A key component of the contribution follows from differentiating candidates for disciplinary takeovers from other forms of mergers and acquisitions.

Morality in the era of smart devices

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jiarui Sui ◽  
Tiantian Mo
Keyword(s):  
Emerging Markets ◽  
Design Methodology ◽  
Preventive Measures ◽  
Smart Devices ◽  
Moral Foundations ◽  
Content Type ◽  
Developed Markets ◽  
Moral Standards ◽  
The Uk ◽  
Practical Implications

PurposeDoes using smart devices change people's moral standards? The objective of this paper is to investigate how people's moral behavioral intentions while employing smart devices are modulated by their socioeconomic status (SES; as measured by educational level and income).Design/methodology/approachParticipants were randomly assigned to either the smart devices condition or the non-smart devices condition, and their moral standards was measured by the adapted Moral Foundations Questionnaire. Data were collected from both China and the UK.FindingsIndividuals' SES moderated people's moral standards when using smart devices. Specifically, when employing smart devices (vs non-smart devices), moral standards declined for low-SES individuals. However, the effect of employing smart devices was not significant for high-SES individuals. This suggests that certain demographics may be more inclined to harm others with smart devices.Practical implicationsIn emerging markets, the widespread of smart devices in workplace may lower consumers' and employees' moral standards for certain demographics. Managers and marketers need to be aware of this erosion of morality and employ some preventive measures in advance.Originality/valueThis paper examined morality in the era of smart devices. Even though the use of smart devices has become a norm in developed markets, smart devices usage is still on the rise in emerging markets. The authors findings enhance the understanding of moral behaviors and contribute to the knowledge of how smart devices are changing human behaviors.

London Fire Brigade's screen and treat approach to the Grenfell Tower incident

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Craig Steel ◽  
Zoe Travers ◽  
Lynette Meredith ◽  
Deborah Lee ◽  
Michael Conti ◽  
...  
Keyword(s):  
Mental Health ◽  
Design Methodology ◽  
Stress Disorder ◽  
National Guidelines ◽  
Line Managers ◽  
Content Type ◽  
Health Response ◽  
The Uk ◽  
Post Disaster ◽  
Practical Implications

PurposeThe purpose is to report on the mental health response to the Grenfell incident within the London Fire Brigade (LFB).Design/methodology/approachThe LFB implemented screening for the symptoms of posttraumatic stress disorder (PTSD) at 28 days, 3 months and 6 months for all personnel directly involved in the incident.FindingsThe prevalence of PTSD within frontline personnel was 13.4% at 28 days, falling to 7.6% at 6 months. The LFB's internal Counselling and Wellbeing Service offered treatment to those scoring above the cut-off for PTSD along with accepting self-referral and referrals from line managers and occupational health. There were 139 referrals within the 12-month period following the incident.Research limitations/implicationsThe outcomes for those who engaged in treatment are broadly in line with other studies evaluating post-disaster interventions. Issues for consideration within national guidelines are discussed.Practical implicationsThe screen and treat approach adopted by LFB was shown to be a feasible approach to use within such a scenario.Originality/valueThe current study reports on a screen and treat approach to one of the largest single incidents in the UK in recent years.

“Give it a Try”: experiences of black, Asian and minority ethnic young men in a prison-based offender personality disorder service

2019 ◽  
Vol 21 (1) ◽  
pp. 14-26
Author(s):  
Stephanie Hunter ◽  
Eleanor Craig ◽  
Jake Shaw
Keyword(s):  
Personality Disorder ◽  
Thematic Analysis ◽  
Design Methodology ◽  
Policy Implications ◽  
Future Research ◽  
Content Type ◽  
The Uk ◽  
Minority Ethnic ◽  
Practical Implications ◽  
Insight Into

Purpose Within the current offender personality disorder (OPD) pathway in the UK, black, Asian and minority ethnic (BAME) populations are underrepresented. Fewer BAME offenders are engaging with services despite being proportionately identified for inclusion and referred on to the pathway. The paper aims to discuss this issue. Design/methodology/approach This qualitative study explored the experiences of 11 BAME men engaged in a prison-based OPD service for young offenders to identify the highlights and challenges of engagement within the service and to what extent they experienced a sense of inclusion/belonging. Findings Thematic analysis was used to identify three overarching themes and sub-themes. Why am I going to be an Outcast? describes the barriers to engagement encountered by the participants; and Give it a Try and Nothing but Respect describe the process of overcoming these barriers. Barriers revolved around the experiences of judgement, alienation and hopelessness. These were overcome through peer encouragement, developing relationships with staff and freedom to regulate levels of engagement. Practical implications Practice and policy implications are considered to support similar services in addressing the barriers to engagement faced by BAME individuals. Areas for future research are also recommended. Originality/value Currently, no research has directly explored the under-representation of young BAME offenders with emerging personality disorder in the OPD pathway. The findings provided an insight into some of the difficulties these young BAME offenders faced when accessing this service, alongside aspects which maintained their engagement.

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