The effects of the board composition, board size and CEO duality on export performance

2016 ◽  
Vol 39 (11) ◽  
pp. 1374-1409 ◽  
Author(s):  
Tulay Ilhan Nas ◽  
Ozan Kalaycioglu
Keyword(s):  
Positive Impact ◽  
Emerging Market ◽  
Export Performance ◽  
Point Of View ◽  
Board Composition ◽  
Outside Directors ◽  
Board Size ◽  
Ceo Duality ◽  
Content Type ◽  
Exporting Firms

Purpose This study aims to understand the antecedents of export performance at the firm level. Building on agency theory but taking into account emerging market settings and institutional differences, the authors investigate how the board composition determines the export competitiveness of the firms operating in an emerging country from the point of view of corporate governance mechanisms. Design/methodology/approach Using data from 221 exporting firms for four years (2007-2010), the authors find that there is a significantly positive relationship between board size and all measures of export performance, while a higher presence of outside directors on the board is negatively associated with export performance, consistently with expectations. The separation of chairman of board of directors and chief executive officer (CEO) positions has significantly positive impact on export performance. On the other hand, the authors find no support for the position that inside director professional representation neither reduce nor increase all measures of export performance of firms. In other words, the convergence with Western practices and consistently with agency theory’s claims is evident for both board size and CEO duality. However, the effects of inside professional and outside directors are no consistent with agency theorists’ expectations. Findings Using data from 221 exporting firms for four years (2007-2010), the authors find that there is a significantly positive relationship between board size and all measures of export performance, while a higher presence of outside directors on the board is a negatively associated with export performance, consistently with expectations. The separation of chairman of board of directors and CEO positions has significantly positive impact on export performance. On the other hand, the authors find no support for the position that inside director professional representation neither reduce nor increase all measures of export performance of firms. In other words, the convergence with Western practices and consistently with agency theory’s claims is evident for both board size and CEO duality. However, the effects of inside professional and outside directors are no consistent with agency theorists’ expectations. Research limitations/implications Export performance is one of the most widely researched areas within international marketing research but least reached topic of management. However, exporting continues to be an important mode of internationalization for multinational companies, especially operating an emerging economy. This study is one of the first studies on the impact of governance factors such as board structure on only export performance rather than overall (firm) performance in light of international management. In other words, the study of the determinants of exports in the context of an emerging economy is an important contribution to the literature, given that our understanding of how the board composition determines the export competitiveness from the point of view of firms operating in an emerging country such as Turkey. Moreover, this research investigates this relationship at objective export performance dimensions using primary data set from listed and non-listed export firms. Practical implications The current study offered in-depth information to multinational companies that aim to gain a competitive exporting advantage in Turkey. Further, the results of this study give managers an opportunity to see the reasons behind the success of the exporting firms from the point of view of corporate governance mechanism. Originality/value In this paper, the authors contribute to this recent stream of research providing evidence on the effects of governance mechanism on the export performance from the point of view of emerging countries. Building on agency theory but taking into account emerging market settings and institutional differences, and international management, the authors provide a new framework that models the linkages between board composition and export performance. This work helps us to gain a deeper understanding of how board dynamics contribute to the internalization of firms. Research in this area has been sparse, although some studies have linked governance with export intensity. In this effort, the authors differentiate from previous studies in several ways.

scholarly journals The influence of relational capability and marketing capabilities on the export performance of emerging market firms

2017 ◽  
Vol 34 (5) ◽  
pp. 606-628 ◽  
Author(s):  
Thi Song Hanh Pham ◽  
Lien Le Monkhouse ◽  
Bradley R. Barnes
Keyword(s):  
Emerging Market ◽  
Export Performance ◽  
Price Setting ◽  
Marketing Capabilities ◽  
Resource Based View ◽  
Content Type ◽  
Exporting Firms ◽  
Market Intelligence ◽  
Export Marketing ◽  
Marketing Intelligence

Purpose Drawing on the resource-based view, the purpose of this paper is to focus on the influence of relational capability and marketing capabilities on export performance. The study also examines the interaction effects of relational capability on the marketing capabilities – export performance relationships. Design/methodology/approach A stratified random sample of 1,047 exporting firms was approached. Survey data were collected from 333 Vietnamese exporting firms and analysed using hierarchical moderated regression. Findings The results reveal that a firm’s relational capability not only strengthens the efficiency of the export pricing capability – performance, marketing intelligence capability – performance, and marketing communication capability – performance relationships, but is also the strongest predictor of export performance amongst those capabilities identified. Whilst engagement in market intelligence, product development, price setting and promotional activities have a positive payoff, the findings confirm that there is less need for exporters to engage in after-sales service and distribution capabilities. Originality/value The study introduces the notion of relational capability alongside export marketing capabilities as predictors of export performance. The authors also examine the moderating influence of relational capability on the link between export marketing capabilities and export performance. By focusing on Vietnam, the study provides fresh insights surrounding the development pathway for firms in emerging markets.

The impact of cognitive and behavioral factors on the export performance: a dynamic capabilities perspective

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Piotr Wójcik ◽  
Mariola Ciszewska-Mlinarič
Keyword(s):  
Dynamic Capabilities ◽  
Positive Impact ◽  
Export Performance ◽  
Organizational Level ◽  
Foreign Markets ◽  
Content Type ◽  
Exporting Firms ◽  
Individual Level ◽  
Multi Level ◽  
Mind Set

Purpose The purpose of this study is to explore how individual-level cognitive and organizational-level behavioral factors influence the level of firms’ export performance as firms adapt to the challenges of foreign expansion. Design/methodology/approach Based on the literature on dynamic capabilities (DCs) and international business, the study introduces a multi-level model of DC to internationalize and test it empirically on a sample of 93 Polish exporting firms using structural equation modeling. Findings The results show a strong and positive impact of the “strategy as stretch” managerial mind-set on two behavioral elements, namely, business modeling and partnering capability. Global mind-set has a strong and positive impact on business modeling and learning about foreign markets and a negative but insignificant effect on partnering capability. Only two of the three behavioral elements of the conceptualized DC have significant and positive impacts on export performance. In contrast to the expectations, the direct path coefficient from learning about foreign markets to export performance was found to be positive but insignificant. Originality/value This study contributes to the literature by offering a coherent, multi-level framework of DCs. The study goes beyond previous conceptualizations of DCs and considers various individual-level cognitive and organizational-level behavioral elements of DC for the internationalization of exporting firms. In particular, this study shows the interplay between them and their combined impact on export performance.

How do relational variables affect export performance? Evidence from Malaysian exporters

2019 ◽  
Vol 31 (1) ◽  
pp. 128-156 ◽  
Author(s):  
Abdel Hafiez Ali Hasaballah ◽  
Omer Faruk Genc ◽  
Osman Bin Mohamad ◽  
Zafar U. Ahmed
Keyword(s):  
Design Methodology ◽  
Positive Impact ◽  
Emerging Market ◽  
Export Performance ◽  
Content Type ◽  
Building Trust ◽  
Path Analyses ◽  
The Impact ◽  
Practical Implications ◽  
Shed Light

PurposeThe purpose of this paper is to analyze the influences of relational variables on export performance and the interactions among relational variables in the emerging market context of Malaysia.Design/methodology/approachThe study used a mail questionnaire sent to Malaysian companies that export to Arab-speaking countries and achieved a response rate of 27.92 percent, resulting in a sample of 106 exporters.FindingsThe results of the path analyses indicate a positive impact of relational variables (adaptation, cooperation and communication) on export performance. However, the authors found that the impact was mediated by trust and commitment, rather than being direct.Research limitations/implicationsThe findings suggest that the impact of relational variables on export performance is complex and indirect. Mediators and moderators play important roles in this relationship.Practical implicationsFirms should invest in export relationships with the aim of building trust and commitment, which are the primary factors that affect export performance.Originality/valueThe authors have shed light on the way relational variables affect export performance. Moreover, this study contributes to a better understanding of small emerging markets, which are poorly represented in studies in this field.

Internal control quality and voluntary disclosure: does CEO duality matter?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hichem Khlif ◽  
Khaled Samaha ◽  
Ines Amara
Keyword(s):  
Internal Control ◽  
Voluntary Disclosure ◽  
Positive Impact ◽  
Emerging Market ◽  
Annual Reports ◽  
Structural Power ◽  
Ceo Duality ◽  
Content Type ◽  
Corporate Reporting ◽  
Control Quality

PurposeThe authors examine the association between internal control quality (ICQ) and voluntary disclosure and test whether chief executive officer (CEO) duality, as a proxy for CEO structural power, moderates such a relationship in an emerging market (Egypt).Design/methodology/approachICQ is measured using a survey of external auditors, while a content analysis approach is used to measure the level of voluntary disclosure in annual reports.FindingsBased on a sample of 512 firm-year observations over the period of 2007–2014, the authors document that ICQ is positively and significantly associated with voluntary disclosure, suggesting that better controls improve corporate reporting policy. In addition, CEO duality moderates the association between ICQ and voluntary disclosure since this positive relationship association becomes insignificant for companies characterised by CEO duality. These results remain stable after controlling for endogeneity (self-selection problem), political instability and industry characteristics.Research limitations/implicationsThe findings of the study provide preliminary evidence on the association between ICQ and voluntary disclosure, and how CEO structural power may affect this association. Future empirical investigations may extend this work to cover the relationship between ICQ and other attributes of corporate transparency including earnings quality and accounting conservatism.Practical implicationsThe findings highlight the need for Egyptian regulators to enact new rules obliging firms to communicate information about ICQ or charging auditors to report information about firm's ICQ in their reports. The results also alert policymakers about the adverse effect of combined leadership structure (CEO duality) since it mitigates the positive impact of ICQ on voluntary disclosure.Originality/valueThe authors contribute to internal control literature by exploring the association between ICQ and voluntary disclosure on an emergent unregulated market with respect to internal control disclosure. They also highlight how CEO duality, as a proxy for CEO power, mitigates the beneficial effect of ICQ on corporate reporting policy on the Egyptian stock exchange (EGX).

Examining the influence of corporate governance on intellectual capital efficiency

2015 ◽  
Vol 30 (4/5) ◽  
pp. 347-372 ◽  
Author(s):  
Ranjith Appuhami ◽  
Mohammed Bhuyan
Keyword(s):  
Corporate Governance ◽  
Regression Analysis ◽  
Agency Theory ◽  
Intellectual Capital ◽  
Board Composition ◽  
Service Firms ◽  
Board Size ◽  
Ceo Duality ◽  
Content Type ◽  
Corporate Governance Mechanisms

Purpose – The purpose of this paper is to examine the influence of corporate governance on intellectual capital (IC) in top service firms in Australia. Design/methodology/approach – Drawing on the agency theory, the paper develops hypotheses about relationships between corporate governance mechanisms (chief executive officer [CEO] duality, board size, board composition and subcommittee composition) and IC. The study uses a multiple regression analysis on data collected from corporate annual reports of 300 firm-year observations. Findings – The findings of the regression analysis indicate that CEO duality, board composition and remuneration committee composition are significantly associated with IC. In contrast, there is no evidence that board size and audit committee composition have an effect on IC. The study contributes to agency theory in general and the literature on IC and corporate governance more specifically. Practical implications – The findings of the study might be of interest to regulators, investment analysts, shareholders, company directors and managers in Australia, as well as academics, in designing corporate governance mechanisms to develop IC. Originality/value – Corporate governance is country-specific and, hence, its impact on managerial decisions leading to IC is different from country to country. This study provides empirical evidence on the relationship between corporate governance and IC in top service firms in Australia.

The strength of the board on sustainability assurance decisions

2017 ◽  
Vol 24 (4) ◽  
pp. 863-886 ◽  
Author(s):  
Jennifer Martinez-Ferrero ◽  
Lázaro Rodríguez-Ariza ◽  
Isabel María García-Sánchez
Keyword(s):  
Random Effects ◽  
Design Methodology ◽  
Family Firms ◽  
Positive Impact ◽  
Family Businesses ◽  
Family Ownership ◽  
Logit Models ◽  
Board Size ◽  
Content Type ◽  
Sustainability Reports

Purpose The purpose of this paper is to analyze how family ownership influences the strength of the board’s monitoring function in companies’ decisions regarding the assurance of sustainability reports. Design/methodology/approach The international sample consists of 536 companies operating in more stakeholder-oriented countries during the period 2007-2014. The paper proposes alternative logit models of analysis using the random-effects estimator. Findings The results provide evidence that a firm’s sustainability assurance and its choice of accounting professionals as higher quality assurers are positively associated with board size and independence. The main result is the positive impact of family businesses on these assurance issues. The paper evidences the greater orientation toward sustainability issues of family businesses. Furthermore, it verifies the greater impact of board size on family firms’ assurance demand. Originality/value This study sheds some light on the unexplored topic of sustainability assurance in family firms. One of the differentiating aspects with respect to previous studies is the consideration of the moderating factor of family property. This study also contributes to the understanding of family firms’ demand for assurance and its practitioners, and the literature’s focus on its determinants.

scholarly journals Board leadership structure and earnings quality

2018 ◽  
Vol 3 (1) ◽  
pp. 82-111 ◽  
Author(s):  
Chinedu Francis Egbunike ◽  
Augustine N. Odum
Keyword(s):  
Earnings Quality ◽  
Main Concern ◽  
Board Structure ◽  
Executive Directors ◽  
Board Size ◽  
Ceo Duality ◽  
Content Type ◽  
Board Leadership ◽  
Leadership Structure ◽  
Board Leadership Structure

Purpose One main concern and issue affecting earnings quality is the extent to which managers manipulate earnings to mislead stakeholders about the underlying economic performance of the company or to influence contractual outcomes that depend on reported accounting numbers. This study builds on prior research and examines empirically the relationship between board leadership structure and earnings quality of manufacturing firms in Nigeria. The purpose of this paper is to specifically focus on four board structure characteristics: board size, composition, proportion of non-executive directors and CEO duality. Design/methodology/approach Data used for this investigation were collected from secondary sources, i.e. annual reports and accounts. The study used the Pooled OLS regression model to examine the effect of the board structure on earnings management for a sample of 45 non-financial listed Nigerian companies (conglomerates, consumer goods and industrial goods firms) for the years 2011 to 2016. Findings Based on the analysis, board size and board composition were positive and significant. However, proportion of non-executive directors was negative and significant; while, CEO duality was positive and statistically significant. It was consequently recommended that audit firms should review their audit business model and become more circumspect of their client, e.g. provide fraud assessment and checks for earnings quality. Boards should not just reflect size but rather the skills and expertise of individuals appointed to the board. Furtherance to this, the effectiveness of boards can be improved by committees and sub-committees allocation of duties. Originality/value Few studies have addressed this area in the country.

Sponsor ownership and IPO initial return: evidence from Pakistan stock exchange

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Waqas Mehmood ◽  
Rasidah Mohd-Rashid ◽  
Abd Halim Ahmad ◽  
Saqib Amin
Keyword(s):  
Initial Public Offering ◽  
Positive Impact ◽  
Stock Exchange ◽  
Point Of View ◽  
Least Square ◽  
Content Type ◽  
Interaction Variable ◽  
Regulatory Changes ◽  
Initial Return ◽  
Regulation Changes

Purpose The purpose of this paper was to examine whether or not the sponsor lock-up ratio, lock-up period, regulation changes and interaction variable (oversubscription [OSR]) affected initial public offering (IPO) initial return. Design/methodology/approach A complete sample of 111 listed IPOs in Pakistan stock exchange from 1996 to 2018 was incorporated. Based on the cross-section data, this paper estimated using ordinary least square and quantile least square for robustness. In addition to that, this paper estimated the data using stepwise least square to inspect the signalling aspect of the lock-up ratio, lock-up period and regulation changes on IPO initial return. Findings This study showed that the lock-up ratio, lock-up period and regulatory changes had a positive impact on the IPO’s initial return. Furthermore, the assertion of interaction variable (regulation changes × OSR) and (lock-up period × OSR) was a negatively significant factor in influencing the IPO’s initial return. The results of this paper were robust to endogeneity bias. Practical implications The finding of this study proposed that sponsors of IPOs can be a strong signal of risk or quality, which was consistent with the signalling theory prediction. Concurrently, investors must be aware of the total proportions of lock-up ratio so that they can estimate the chances of getting the highest initial return on IPOs. From the regulators’ point of view, it is suggested that the lock-up ratio and the lock-up period should be determined with a deeper understanding and incorporated into the equity guidelines as it is evident that these factors are priced by the market. Originality/value Studies on the effect of sponsors have always been centred on well-recognized firms. Therefore, using the IPO samples listed in Pakistan, this paper contributes to the IPO literature by investigating the lock-up ratio of the sponsor, the lock-up period and the regulatory changes to the initial IPO return. Additionally, OSR has been introduced as an interaction variable among the sponsors’ lock-up period and regulations changes to explain the ongoing IPO initial return phenomenon.

scholarly journals The development of trust over time in an emerging market context: the case of the Tunisian automotive sector

2019 ◽  
Vol 34 (6) ◽  
pp. 1210-1222 ◽  
Author(s):  
Tibor Mandják ◽  
Samy Belaid ◽  
Peter Naudé
Keyword(s):  
Emerging Market ◽  
Qualitative Interviews ◽  
Spare Parts ◽  
Point Of View ◽  
Business Relationship ◽  
Content Type ◽  
Perceived Trust ◽  
Emerging Country ◽  
The Relationship

Purpose The purpose of this paper is to empirically investigate how context influences the quality of business relationships. This theoretical question is studied from the point of view of trust, one of the important components of business relationship quality. The authors study how trust is related to the dynamics and management of the business relationship in the context of an emerging market. Design/methodology/approach This paper is based on qualitative interviews with 15 spare-parts resellers in the Tunisian automotive industry. The authors take a monadic view, interviewing resellers about their relationships with their wholesalers-importers. The decision to undertake the research in Tunisia is based on three factors. First, Tunisia is an emerging country and there is very little published research based in the Maghreb countries. Second, the Tunisian automotive parts market structure is relatively simple and, hence, easily understood, with most spare-parts being imported because of the low level of local production. Third, the actors in the study are all Tunisian companies, so research allows us to explore relationships between local companies in an emerging country. Findings The authors find that different kinds of trust play different roles over the dynamics of the relationship. Perceived trust is more important at the emergent stage of a relationship, and as the two parties learn from each other, experienced trust becomes more important in the established relationships. The initial perceived trust creates the possibility of building trust, and when mutual trust exists between the parties, it motivates them to maintain the relationship, but there is always the threat of the degradation of the quality of the relationship because of the violation or destruction of the trust. Research limitations/implications This paper shows that more care should be taken when using trust as the variable under scrutiny. Different aspects of trust manifest themselves at various stages of the relationship building cycle. Practical implications The results emphasize that when initiating a business relationship, managers first need to create perceived trust. Thereafter, once trust is built up, it is the trust that may “manage” or act to control the on-going relationship as long as the partners’ behavior or network changes do not violate the trust. Originality/value The results of this paper show that there is a mutual but not necessarily symmetrical or balanced influence of trust on the behavior of the partners involved. The influence of the different parties is dependent on the power architecture, the history of the relationship and the network position of the actors.

The effects of board size and board composition on CSR disclosure: a study of banking sectors in Bangladesh

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Md. Abdur Rouf ◽  
Md. Alamgir Hossan
Keyword(s):  
Significant Relationship ◽  
Annual Report ◽  
Stock Exchange ◽  
Least Square ◽  
Board Composition ◽  
Board Size ◽  
Content Type ◽  
Female Directors ◽  
The Government ◽  
Csr Disclosure

Purpose The purpose of this study is to provide a profound understanding of the nature and extent of corporate social responsibility (CSR) disclosure in the annual report by the listed banking sectors in Bangladesh for examining the effect of board size and board composition on CSR disclosure. Design/methodology/approach The sample selected of all the 30 listed banks enlisted in the Dhaka Stock Exchange and the study used a content analysis approach. An ordinary least square regression model is fitted to the data for assessing the effect of independent variables on the total CSR disclosure score. An un-weighted approach has been used for this study. Findings The results of the study demonstrate that the extent of CSR disclosure of listed banks in Bangladesh varies from 11.11% to 73.33%, and on average, they report 45.37% and 43.44%, respectively. Moreover, the study observed a significant relationship between the proportion of female directors and CSR disclosure. Conversely, board size has been found no significant relationship with the CSR disclosure but the proportion of independent directors has been found a significant relationship with the CSR disclosure in the annual report by the listed banking sectors in Bangladesh. Social implications The study is expected to get a maximum scenario of CSR disclosure of banking sectors in Bangladesh. Government and other regulatory bodies can also get full information concerning CSR disclosure practices for formulating guidelines in this regard. If the Government of Bangladesh implicates the policies that the banks are to nominate a required number of female directors to boards, the consideration of the significant number of female directors and their power will be able to protect the interests of different stakeholder groups notably. Originality/value The study contributes to the CSR literature as it presents empirical evidence of the effects of board size and board composition on the CSR disclosure of banking sectors in developing countries such as Bangladesh.

Sign in / Sign up

Export Citation Format

Share Document