An agency perspective on the board of directors and corporate entrepreneurship

2017 ◽  
Vol 40 (11) ◽  
pp. 1201-1215
Author(s):  
Mark A. Tribbitt ◽  
Yi Yang
Keyword(s):  
Board Of Directors ◽  
Negative Relationship ◽  
Corporate Entrepreneurship ◽  
Publicly Traded ◽  
Content Type ◽  
The Board Of Directors ◽  
Publicly Traded Firms ◽  
Using Data ◽  
The Relationship

Purpose The purpose of this study is to examine the relationship between board dependence, antitakeover provisions and their influence on corporate entrepreneurship (CE). Design/methodology/approach The study uses agency theory as a framework to expand on the board dependence–CE relationship by injecting the moderating role of antitakeover provisions to the model. Using data collected from 350 publicly traded firms, a panel regression analyses was conducted on both innovation and venturing components of CE. Findings The findings of this study show a negative relationship between board dependence and CE. Further this study shows that such a negative relationship becomes weaker when higher levels of antitakeover provisions are injected into the model. Research limitations/implications This study was conducted using a sample of large publicly traded firms within the information and manufacturing sectors, and so our findings may not be generalizable to firms in other contexts. Further, other variables representing CE (e.g. new product introductions) may add to this line of research in the future. Practical implications Understanding the role of board of directors within a firm may help foster CE throughout the organization. Originality/value This study expands on existing research by incorporating the influence of environmental factors (e.g. antitakeover provisions) and examining the relationship between corporate governance and CE using both measures of innovation and venturing.

Board of directors' characteristics and corporate risk disclosure: the moderating role of family ownership

2020 ◽  
Vol 15 (2) ◽  
pp. 219-252
Author(s):  
Malek Hamed Alshirah ◽  
Azhar Abdul Rahman ◽  
Ifa Rizad Mustapa
Keyword(s):  
Board Of Directors ◽  
Family Ownership ◽  
Risk Disclosure ◽  
Content Type ◽  
The Board Of Directors ◽  
Corporate Risk ◽  
The Relationship ◽  
Moderating Role ◽  
Level Of Risk

PurposeThis study aims at examining the level of risk of disclosure practices and the effect of four board of directors' characteristics (board size, board meetings, CEO duality and board expertise) on these practices in the Jordanian context. This study also adds to the body of literature by examining the moderating effect of family ownership on the relationship between the board of directors' characteristics and the corporate risk disclosure.Design/methodology/approachThe sample of this study contains the non-financial Jordanian firms listed on Amman Stock Exchange (ASE). 376 annual reports of the sampled firms over four years from 2014 to 2017 were used. The content analysis approach was used to collect data and to determine the level of risk disclosure by computing the number of risk-related sentences in the annual reporting. To test the study's hypothesis, the random effect model was employed.FindingsThe empirical results show that the total of the risk disclosure sentences for each firm ranges from a minimum value of 2 sentences to a maximum value of 61 sentences, and the mean of CRD is 28 sentences. The results also indicate that the board expertise is positively related with the level of risk disclosure. Conversely, CEO duality has a negative impact on the risk disclosure practices. However, the results failed to support that the board size and the board meetings have a significant effect on the level of risk disclosure. Furthermore, the study demonstrated that the family ownership moderates the relationship between the board of directors and the corporate risk disclosure.Practical implicationsThe finding of this study is more likely be useful for many concerned parties, researchers, authorities, investors and financial analysts alike in understanding the current practices of the risk disclosure in Jordan, thus helping them in reconsidering and reviewing the accounting standards and improving the credibility and transparency of the financial reports in the Jordanian capital market.Originality/valueThe current study contributes to the literature of risk disclosure because the previous research has paid little attention to this topic in Jordan. To the best knowledge of the researcher, this study is the first Jordanian study that focuses on examining the relationship between the board of directors' characteristics and the corporate risk disclosure in the non-financial sector. Furthermore, it is the first study that examines the moderating role of family ownership on such relationships. Consequently, the results of the current study draw attention to the CRD practices and the monitoring role of board of directors in Jordan.

Exploring the decline in trade credit investment

2017 ◽  
Vol 43 (12) ◽  
pp. 1375-1391 ◽  
Author(s):  
Chris Harris ◽  
Scott Roark
Keyword(s):  
Cash Flow ◽  
Trade Credit ◽  
Negative Relationship ◽  
Publicly Traded ◽  
Content Type ◽  
Access To Credit ◽  
Increased Risk ◽  
Cash Flow Volatility ◽  
Publicly Traded Firms ◽  
The Relationship

Purpose The purpose of this paper is to identify three factors leading to the observed decline in trade credit offered from publicly traded firms. Design/methodology/approach The study conducts firm fixed effect regressions testing the relationship between cash flow volatility and firm investment in trade credit. The relationship is further examined with all firms separated into two groups, based on SIC codes, designating if they are in industries that traditionally offer higher amounts of trade credit. Findings The proportion of US firms that has traditionally extended the most trade credit has been decreasing over time, contributing to part of the decline in trade credit offered. Increases in cash flow volatility have also contributed to decreasing investment in trade credit. The negative relationship with cash flow volatility is greatest amongst firms that traditionally place the highest value on trade credit. Firms with access to credit, proxied by investment grade debt ratings, do not experience the same decline in trade credit offered. Practical implications Firms that value the ability to extend trade credit may maintain their level of investment in trade credit, even with increased risk of cash flow volatility, by maintaining a comparative advantage in access to credit. Originality/value This study extends prior findings by providing three previously unexplored explanations for the decline in offered trade credit seen in the USA. The changing make-up of publicly traded firms, a market-wide increase in cash flow volatility, and access to credit all play an important role in observed declines of trade credit investment.

Is the top leadership of the organizations promoting tax avoidance?

2016 ◽  
Vol 23 (2) ◽  
pp. 273-288 ◽  
Author(s):  
Nubia Evertsson
Keyword(s):  
Board Of Directors ◽  
Tax Avoidance ◽  
Content Type ◽  
The Board Of Directors ◽  
National Analysis ◽  
The Relationship ◽  
System Characteristics ◽  
National Approach ◽  
Cross National

Purpose This paper aims to study the roles of CEOs, board of directors and accounting/auditing firms in the adoption of tax avoidance schemas. Design/methodology/approach A cross-national analysis with data from 22 countries is used to examine the relationship between tax avoidance and the ethical qualities of the top leadership of the organizations, the firm’s profile and the tax/legal system characteristics. Findings The results show that the board of directors is the actor that contributes more to control tax avoidance cross-nationally, whereas the CEOs’ role to contend this practice is less relevant. The outcomes for accounting/auditing firms reveal that the stronger standards these firms have, the more tax avoidance is observed. Originality/value The methodology (cross-national analysis) and dimensions examined (role of the actors/instances of discretional power) in this inquiry offer a novel perspective to the analysis of tax avoidance, as most scholarly studies have taken a national approach and have mainly focused on studying the characteristics of the firms involved in tax avoidance.

Passive but defiant: the role of innovative capabilities in knowledge management and corporate entrepreneurship

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Azhar Khalil ◽  
Muhammad Khuram Khalil ◽  
Rashid Khalil
Keyword(s):  
Corporate Entrepreneurship ◽  
Empirical Literature ◽  
Equation Modeling ◽  
Market Demand ◽  
Content Type ◽  
Knowledge Based ◽  
Innovative Capabilities ◽  
The Impact ◽  
The Relationship

Purpose This paper aims to examine the role of organizational innovative capabilities (OIC) on the relationship between knowledge sharing (KS), corporate entrepreneurship (CE) and firm performance (FP). Specifically, this study uses the knowledge-based view to develop a model that examines the mentioned relationship. Design/methodology/approach Using survey data from 520 participants across 75 service sector companies in Thailand, measurement and structure models are tested through structural equation modeling to quantify the impact between constructs. Findings This study shows that KS and CE positively affect OIC and FP. A positive relationship is also found between KS and CE. The mediating impact of OIC strengthens the relationship between KS and CE on FP. Research limitations/implications Like all research using survey methods, the research is prone to respondent biases and generalizability. However, this paper has put the best effort to minimize such effects by rigorous methodological testing to avoid such biases. Practical implications The findings of this study suggest that to improve organizational learning and knowledge-based performance, commitment and understanding of the employees in the entire organization is crucial. KS significantly contributes to developing innovative abilities because of its characteristics of providing firm-specific and socially complex advantages. The way a firm transforms and exploits its knowledge may ascertain its level of innovativeness, such as coming up with certain problem-solving procedures and new product development according to the rapid change in the market demand. However, organizations may only instigate to effectively organize knowledge when their employees are ready to share knowledge. Continuous KS boosts entrepreneurial practices and contributes innovativeness across individuals, groups, units or the entire organization. Originality/value The relationship between CE, organization innovative capabilities and FP in the presence of KS is rarely discussed in both theoretical and empirical literature. This study contributes to the literature by arguing that apart from the direct impact of KS on FP, KS can lead the firms toward generating important competitive advantage by forming innovative capabilities that can significantly influence FP.

Volunteering drivers and continuation will: the role of engagement

2019 ◽  
Vol 38 (5) ◽  
pp. 405-420 ◽  
Author(s):  
Mohammed Aboramadan ◽  
Abderrahman Hassi ◽  
Hatem Jamil Alharazin ◽  
Khalid Abed Dahleez ◽  
Belal Albashiti
Keyword(s):  
Nonprofit Organizations ◽  
Work Engagement ◽  
Structural Equations ◽  
Content Type ◽  
Theoretical Perspectives ◽  
Using Data ◽  
The Relationship ◽  
And Training ◽  
Practical Implications

Purpose As volunteering research in nonprofit organizations is growing significantly, the purpose of this paper is to examine the effects of volunteering drivers and work engagement on volunteer continuation will. Design/methodology/approach Building on empirical and theoretical perspectives, the authors hypothesized that work engagement mediates the relationship between volunteering drivers and volunteer continuation will. To verify our hypotheses, we examined data collected from 372 active volunteers from Palestinian nonprofit organizations. The authors conducted structural equations modeling (SEM) analyses using the AMOS 24 platform to investigate direct and indirect effects. Findings The results of the study show that work engagement is a significant predictor of volunteer continuation will; mediates the relationship between career driver of volunteering and volunteer continuation will; and mediates the relationship between the protective driver of volunteering and volunteer continuation will. Research limitations/implications The research design limits establishing cause and effect relationships among the examined variables. Practical implications The results of the current study may be of use for nonprofit organizations managers formulating effective recruitment and training policies to retain their volunteers. Originality/value The paper contributes to the limited empirical body of the volunteering research. The study is novel as it is one of the few studies conducted using data coming from a non-western context.

Linking corporate entrepreneurship, expatriation and reverse knowledge transfers

2019 ◽  
Vol 23 (1) ◽  
pp. 67-89 ◽  
Author(s):  
Muhammad Mustafa Raziq ◽  
Cristina Doritta Rodrigues ◽  
Felipe Mendes Borini ◽  
Omer Farooq Malik ◽  
Abubakr Saeed
Keyword(s):  
New Zealand ◽  
Structural Equation ◽  
Multinational Enterprises ◽  
Corporate Entrepreneurship ◽  
Equation Modeling ◽  
Content Type ◽  
Knowledge Transfers ◽  
Entrepreneurial Strategy ◽  
The Relationship

Purpose Multinational enterprises (MNEs) encourage their subsidiaries to develop and transfer their unique knowledge and expertise back to the MNE as it is critical for the development of the MNE as a whole. However, what underlies the subsidiary ability to create such specialized knowledge that can be transferred to the MNE is less clear. The purpose of this paper is to examine the influence of MNE entrepreneurial strategy, subsidiary initiatives and expatriation on reverse knowledge transfers in a cross-country comparative context. Design/methodology/approach Data are gathered through surveys from 429 foreign subsidiaries operating in New Zealand and 164 subsidiaries in Brazil, and these are analyzed using variance-based structural equation modeling. Findings Subsidiary initiatives partially mediate the relationship between MNE entrepreneurial strategy and reverse knowledge transfers in case of subsidiaries operating in Brazil, but they fully mediate in case of New Zealand. Furthermore, expatriation, in case of the latter, has a negative interaction in the relationship between subsidiary initiative and reverse knowledge transfers, but, in case of the former, it has no moderating role. Overall, the results suggest that the influence of MNE entrepreneurial strategy and expatriation on reverse knowledge transfers can be explained by contingencies such as the subsidiary host economy and the heterogenous HQ–subsidiary relationships. Originality/value The paper contributes to literature by identifying some contingencies with regard to the occurrence of reverse knowledge transfers. It addresses some research calls with regard to examining reverse knowledge transfers and the role of expatriation across different empirical contexts.

Experiencing workplace ostracism with loss of engagement

2020 ◽  
Vol 35 (7/8) ◽  
pp. 617-630
Author(s):  
Xiaofeng Xu ◽  
Ho Kwong Kwan ◽  
Miaomiao Li
Keyword(s):  
Social Exchange ◽  
Social Exchange Theory ◽  
Negative Relationship ◽  
Job Engagement ◽  
Cultural Perspective ◽  
Content Type ◽  
Mediating Role ◽  
Workplace Ostracism ◽  
The Relationship

PurposeDrawing on social exchange theory and a cultural perspective, this study examines the relationship between workplace ostracism and job engagement by focusing on the mediating role of felt obligation and the moderating role of collectivism.Design/methodology/approachA two-wave survey was conducted over four months in a private service business in China. The participants comprised 108 Chinese employees.FindingsThe results indicate that workplace ostracism has a negative relationship with job engagement through a reduced sense of felt obligation. Collectivism strengthens the main effect of workplace ostracism on felt obligation and its indirect effect on job engagement via felt obligation.Research limitations/implicationsThis study contributes to understanding of the internal mechanism of the workplace ostracism–job engagement model by identifying the mediating role of felt obligation. It also emphasizes that collectivist cultures can enhance the effects of workplace ostracism. However, the generalizability of our findings may be limited due to this cultural factor.Practical implicationsOur findings show that workplace ostracism plays a significant role in reducing job engagement. Therefore, it is essential to reduce the incidence of ostracism in the workplace.Originality/valueBy addressing the previously unexplored mechanism that mediates the relationship between workplace ostracism and job engagement, this study provides new directions for research on workplace ostracism and job engagement.

Moderating role of employee engagement on conflict–politics relationship

2019 ◽  
Vol 26 (6) ◽  
pp. 1781-1798 ◽  
Author(s):  
Poonam Mishra ◽  
Amitabh Deo Kodwani
Keyword(s):  
Employee Engagement ◽  
Negative Relationship ◽  
Intention To Leave ◽  
Self Report ◽  
Relationship Conflict ◽  
Content Type ◽  
The Relationship ◽  
Moderating Role ◽  
Openness To Diversity

Purpose The purpose of this paper is to explore the relationship between relationship conflict and the perception of organization politics (POP) and the moderating role of employee engagement. The study hypothesizes that the conflict results in the presence of POP only for those employees who are relatively less engaged with the organization. The paper further explores the mediating role of perceived politics between the relationship conflict and job-related outcome variables including openness to diversity, turnover intent and perception of justice. In sum, the authors contend that employee engagement will act as a moderator between relationship conflict and POP, and POP further will act as a mediator between relationship conflict and its job-related outcomes. Design/methodology/approach A descriptive study was carried on to conduct this research. Data were collected at two different points of time from the employees of two public sector undertakings (n=206). About 80 questionnaires were not returned by the respondents, reducing the sample size to be 126. Of these, 115 were usable, resulting in a 55.83 percent response rate. SEM was employed to test the hypotheses with the help of Smart PLS 3.0. A two-step process was followed to test the hypothesized model. Testing the significance of proposed relationships in the structural model was followed by the evaluation of the measurement model. Findings The results of the study highlighted a positive association between the relationship conflict and POP. A moderating effect of employee engagement on relationship conflict and perceived organizational politics (POP) was observed. Further, POP was found to have a positive relationship with the intention to leave and a negative relationship with openness to diversity and perception of justice was observed. POP mediated the relationship between relationship conflict with the intention to leave and the perception of justice. Research limitations/implications The very first limitation of the present study is its cross-sectional design. Since the data were gathered from the same respondents, the causal relationships between variables are subject to biases (Bobko and Stone-Romero, 1998). Further, the data were gathered with the help of self-report questionnaires, and the findings of this study might have been influenced by the social desirability response bias (Podsakoff et al., 2003). Hence, future work should focus on using a combination of sources for data collection. This study also proposes a possible role of emotional intelligence in employee engagement and their POP, which can be tested in future studies. Practical implications The study suggests that relationship conflict leads to POP, which eventually results in adverse job-related outcomes. In order to control the negative effects of politics perception, organizations should undertake conflict prevention and conflict management techniques. To further reduce the level of POP, organizations shall take steps to better engage their employees because even when the level of relationship conflict is high, people perceive less politics if they are highly engaged with the organization. Originality/value The study is an original work carried out to understand the relationship between relationship conflict and the POP, and the moderating role of employee engagement.

scholarly journals Is Religion a Determinant of Financial Development?

2021 ◽  
Author(s):  
Emmanuel Amissah ◽  
Katarzyna Świerczyńska
Keyword(s):  
Financial Development ◽  
Negative Relationship ◽  
World Values Survey ◽  
Economic Growth And Development ◽  
Significant Negative Relationship ◽  
Using Data ◽  
Role Of Religion ◽  
The Relationship ◽  
Different Levels

AbstractStudies on the determinants of financial development have been silent on the role of religion. Growing evidence in the literature about how financial development positively affects economic growth and development highlights a greater interest in understanding the determinants of financial development. Despite the growing interest in this direction, less focus has been given to the role of religion in financial development. Using data from the World Values Survey, this study explores the relationship between finance and religion. In this study, finance is modelled through different measures of financial development and religion is represented by the intensity of religiosity. Results showed that on average there is a significant negative relationship. Subsequent analysis showed that as countries become financially developed, this negative relationship becomes insignificant. The quantile regression technique was employed to capture the nature of the relationship at different levels. The analysis showed that as countries become financially developed, the negative relationship becomes insignificant to financial development. These results account for some of the differences in the level of financial development between developed and developing countries where the latter tend to be more religious than the former.

scholarly journals The Urge to Merge: The Role of Governance Structures in Mergers and Acquisitions

1970 ◽  
Vol 13 (2) ◽  
pp. 151-166
Author(s):  
Catherine Daily ◽  
Dan Dalton
Keyword(s):  
Decision Making ◽  
Mergers And Acquisitions ◽  
Board Of Directors ◽  
Board Composition ◽  
Outside Directors ◽  
Target Firm ◽  
Target Firms ◽  
The Board Of Directors ◽  
The Relationship

The 1990s have witnessed merger and acquisition activity which rivals that of the 1980s "merger mania." As firms continue to consolidate either within industries or across industries it is appropriate to investigate those aspects of a target firm which might attract a bidder. The board of directors, a central decision-making body in the corporation, may provide insights into this process. This study investigates the relationship between board composition and size and the incidence of a firm being targeted for a merger or acquisition. Results of a logistic regression analysis of a matched set of target firms and firms not targeted for merger or acquisition reveal that target firms have higher proportions of independent outside directors and more total numbers of directors. Moreover, we find that target firms have greater exposure to institutional investors.

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