A view of the learning organization from a corporate governance perspective

2018 ◽  
Vol 25 (6) ◽  
pp. 434-442 ◽  
Author(s):  
Yusuf Sidani ◽  
Simon Reese
Keyword(s):  
Corporate Governance ◽  
Learning Organization ◽  
Design Methodology ◽  
Practical Application ◽  
Content Type ◽  
The Impact

Purpose This paper aims to provide an overview of the development of learning organization concepts from the perspective of Professor Bob Garratt and presents an interesting evolution toward his work on learning boardroom members. Design/methodology/approach Through a conversation with Professor Garratt, the authors capture several topics pertaining to his evolution of learning organization concepts, those who have differing views and ultimately what led him to develope his theories on the impact of the most senior members of an organization on the learning constructs. Findings The learning organization debate has many foundations that today have led to differing perspectives. Professor Garratt provides his particular background and how he developed his opinions, which he admits have not always been embraced in practice. Originality/value The discussion with Bob Garratt reveals his understanding of the learning organization concept and how it developed from a lifetime of practical application. Ultimately, the reader will understand, in Professor Garratt’s own words, where he was confronted with challenges and why his concepts evolved to where they are today.

The impact of corporate governance code on earnings management in listed non-financial firms

2017 ◽  
Vol 7 (4) ◽  
pp. 428-444 ◽  
Author(s):  
Erick Rading Outa ◽  
Paul Eisenberg ◽  
Peterson K. Ozili
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Design Methodology ◽  
Explanatory Variable ◽  
Content Type ◽  
Listed Firms ◽  
Financial Firms ◽  
New Institutions ◽  
The Impact ◽  
Practical Implications

Purpose The purpose of this paper is to examine whether voluntary corporate governance (CG) code issued in 2002 constrain earnings management (EM) among listed non-finance companies in Kenya. Design/methodology/approach Using a panel data of 338-firm year’s observations between 2005 and 2014, the authors test the hypothesis that CG constrains EM in non-finance firms listed in Kenya. The authors regress discretionary accruals (DA) against a developed Corporate Governance Index (CGI). Findings The overall results show that DA is not significantly related to CG suggesting the voluntary CG code does not deter EM in non-finance companies in Kenya. Practical implications Evidence of income decreasing\increasing accruals implies EM still exists among the listed firms. This suggests that policymakers may need to consider radical actions including alternative or new CG approaches and new institutions to improve the effectiveness of CG. Originality/value This study extends existing studies by including composite CG as possible explanatory variable for constraining EM. The authors contribute to the debate by demonstrating that the voluntary CG code in Kenya is not effective in constraining DA and therefore the current initiatives by the regulator to change the current CG code are appropriately directed.

The impact of financial safety act and corporate governance on the level of financial disclosure

2016 ◽  
Vol 58 (6) ◽  
pp. 618-633 ◽  
Author(s):  
Ali Ahmadi ◽  
Abdelfettah Bouri
Keyword(s):  
Corporate Governance ◽  
Design Methodology ◽  
Stock Exchange ◽  
Financial Disclosure ◽  
Content Type ◽  
Study Results ◽  
Before And After ◽  
The Subject ◽  
High Level ◽  
The Impact

Purpose This research paper aims to identify and measure the contribution of the financial safety act (FSA) regulation in improving the level of financial disclosure of listed Tunisian firms. To answer the problems of the subject, the authors tried to hold accountable several determinants of the level of financial disclosure relating to the particular characteristics of the firm, and the adoption of the recommendations envisaged by the FSA, as likely to have an impact on the level of financial disclosure of Tunisian firms. Design/methodology/approach With a sample composed by 20 companies during the period from 2003 to 2010 (160 observations), the contribution of the FSA regulation in improving the level of financial disclosure of listed Tunisian firms was identified and measured. After that, the levels of financial disclosure before and after the FSA were compared. Findings The study results confirm the positive and significant effect of the FSA on the level of financial disclosure. This impact seems to appear through the improvement of the disclosure level during the years which follow the adoption of the new regulation. The results of this study also show that firms with a high level of financial disclosure are those which have an independent board of directors, auditor BIG and joint audit. Originality/value This paper is devoted to evaluate the impact of the FSA n°2005-96 and corporate governance on the level of financial disclosure. The empirical study relates to a sample of 20 firms listed on the Tunis Stock Exchange observed over the period 2003-2010.

scholarly journals Corporate governance and sustainability reporting in the Australian resources industry: an empirical analysis

2018 ◽  
Vol 16 (1) ◽  
pp. 1-14 ◽  
Author(s):  
Tricia Ong ◽  
Hadrian Geri Djajadikerta
Keyword(s):  
Corporate Governance ◽  
Design Methodology ◽  
Sustainability Reporting ◽  
Independent Directors ◽  
Content Type ◽  
Sustainability Performance ◽  
Multiple Directorships ◽  
Corporate Governance Mechanisms ◽  
Positive Correlations ◽  
The Impact

Purpose This study aims to evaluate the impact of corporate governance on sustainability reporting by investigating companies operating in the Australian resources industry. Design/methodology/approach This study investigates the relationships between the total sustainability disclosures and, separately, the three aspects of sustainability disclosures – economic, environmental and social – and corporate governance mechanisms proxy by various attributes of board composition. The sustainability disclosures were scored using Ong et al.’s (2016) index. Findings Significant positive correlations were found between the extent of sustainability disclosures and the proportion of independent directors, multiple directorships and female directors on the board. Originality/value Unlike traditional content analysis methods, this study adopts a newly developed Global Reporting Initiatives-based reporting index that identifies companies with good sustainability performance by aligning companies’ disclosures to their sustainability performance.

From the fifth discipline to the new revolution: what we have learnt from Senge’s ideas over the last three decades

2020 ◽  
Vol 27 (6) ◽  
pp. 489-498
Author(s):  
Hong T.M. Bui
Keyword(s):  
Mental Models ◽  
Learning Organization ◽  
Design Methodology ◽  
Content Type ◽  
The World ◽  
Set Up ◽  
Influential Book ◽  
The Impact ◽  
Business And Management

Purpose This paper aims to go through all Peter Senge’s books since his influential book The Fifth Discipline: The Art and Practice of the Learning Organization in 1990 and see what kind of ideas he has developed and the impact his books have created. Design/methodology/approach The author uses book review method to identify prominent ideas in those books that not only have significantly challenged but also contributed to transforming the world of business and management in both academia and practice. Findings Among many great ideas that Senge has developed, spirituality, mental models, systems thinking, and a sustainability mentality are prominent ones, which have set up trends for both researchers and practitioners in business and management. Originality/value Those ideas are interwoven, intertwined and have powerfully shaped new ways to see the world and act upon.

Corporate governance guidelines compliance and firm financial performance

2016 ◽  
Vol 31 (8/9) ◽  
pp. 891-914 ◽  
Author(s):  
Erick Rading Outa ◽  
Nelson M. Waweru
Keyword(s):  
Corporate Governance ◽  
Life Cycle ◽  
Firm Performance ◽  
Financial Performance ◽  
Firm Value ◽  
Design Methodology ◽  
Content Type ◽  
Firm Financial Performance ◽  
The Impact ◽  
The Relationship

Purpose This paper aims to examine the impact of compliance with corporate governance (CG) guidelines during the period 2002-2014 on firm financial performance and firm value of Kenyan-listed companies. Design/methodology/approach Using panel data of 520-firm year’s observations between 2005 and 2014, the authors test the hypothesis that compliance with CG guidelines issued in 2002 by Capital Markets Authority (CMA) improved firm financial performance and firm value. Findings Compliance with CG Index which is an aggregate of all the CG guidelines is positively and significantly related to firm performance and firm value. Board evaluation is also positively and significantly related to firm performance. The findings suggest that CG guidelines are associated with firm financial performance and firm value. Originality/value The authors provide evidence on the relationship between CG practices and firm financial performance and firm value in Kenya. Second, the authors provide evidence on board evaluation which has not been tested before in a “comply or explain” environment. Finally, they evaluate how CMA 2002 CG guidelines steered firm financial performance and firm value over its life cycle from 2002 to 2014. These results are important to CMA and other CG regulators and boards in their efforts to improve CG practices in the region.

How do different generations contribute to the development of a learning organization in companies undergoing a lean production implementation?

2019 ◽  
Vol 27 (2) ◽  
pp. 101-115 ◽  
Author(s):  
Guilherme Tortorella ◽  
Daniel Nascimento ◽  
Rodrigo Caiado ◽  
Juan Gregorio Arrieta Posada ◽  
Rapinder Sawhney
Keyword(s):  
Learning Organization ◽  
Generational Differences ◽  
Design Methodology ◽  
Lean Production ◽  
Multivariate Data ◽  
Current Management ◽  
Data Set ◽  
Content Type ◽  
Management Approaches ◽  
The Impact

Purpose This study aims to examine the impact of practitioners’ generational differences on the development of a learning organization (LO) in companies undergoing a lean production (LP) implementation. Design/methodology/approach The authors gathered information from 135 leaders from different manufacturers that have been implementing LP and analyzed the data set through multivariate data techniques. Findings The results indicate the practitioners from Generations X, Y and Z contribute differently to LO capabilities even if their companies present similar maturities in terms of LP implementation. Originality/value Understanding how generational differences interact with LP implementation to allow an extensive development of an LO is fundamental for companies, as values, beliefs and working characteristics of the upcoming generations may significantly influence the effectiveness of current management approaches and firms’ competitiveness.

Corporate governance and cost of capital in OECD countries

2019 ◽  
Vol 35 (4) ◽  
pp. 665-690 ◽  
Author(s):  
Aws AlHares
Keyword(s):  
Corporate Governance ◽  
Design Methodology ◽  
Cost Of Capital ◽  
Oecd Countries ◽  
Content Type ◽  
Analysis Techniques ◽  
Alternative Measures ◽  
Director Ownership ◽  
The Impact ◽  
New Evidence

Purpose This article aims to investigate the impact of corporate governance (CG) mechanisms on cost of capital (COC) in Organisation for Economic Co-operation and Development (OECD) countries. Design/methodology/approach Companies from 34 OECD countries were used between 2010 and 2017. Multiple regression analysis techniques is used to examine the relationships. The findings are robust to alternative measures and endogeneities. Findings The results show that CG index and director ownership are statistically negatively related to COC. In contrast, the results show that block ownership is statistically related to COC. Originality/value This study extends, as well as contributes to the extant CG literature by offering new evidence on the effect of CG mechanisms on COC. The findings will help regulators and policymakers in the OECD countries in evaluating the adequacy of the current CG reforms to prevent management misconduct and scandals.

Understanding decoupling in response to corporate governance reform pressures

2015 ◽  
Vol 23 (4) ◽  
pp. 369-382 ◽  
Author(s):  
Mario Krenn
Keyword(s):  
Corporate Governance ◽  
Design Methodology ◽  
Good Governance ◽  
Regulatory Change ◽  
Compliance Monitoring ◽  
Governance Reform ◽  
Firm Level ◽  
Content Type ◽  
Good Corporate Governance ◽  
Actual Use

Purpose – The purpose of this article is to explain under what circumstances firm-level adoption of codes of good corporate governance will more likely be superficial rather than substantive in nature. The article contains lessons for any agency or country that attempts to implement deep and lasting changes in corporate governance via codes of good corporate governance. Design/methodology/approach – The article reviews the literature on compliance with codes of good corporate governance and develops a conceptual model to explain why some firms that have formally adopted a code of good governance decouple this policy from its actual use. Findings – Decoupling in response to the issuance of codes of good corporate governance will be more attractive to firms and also more sustainable under the following conditions: firms’ compliance costs are relatively high firms’ costs of outright and visible non-compliance are relatively high and outsiders’ compliance monitoring costs are relatively high. Originality/value – The article contributes to the debate on compliance and convergence and provides policymakers with a conceptual framework for assessing the likelihood of successful regulatory change in corporate governance.

Corporate governance practices and capital structure decisions: the moderating effect of gender diversity

2020 ◽  
Vol 20 (5) ◽  
pp. 939-964
Author(s):  
Mohammad A.A Zaid ◽  
Man Wang ◽  
Sara T.F. Abuhijleh ◽  
Ayman Issa ◽  
Mohammed W.A. Saleh ◽  
...  
Keyword(s):  
Corporate Governance ◽  
Panel Data ◽  
Capital Structure ◽  
Generalized Method Of Moments ◽  
Gender Diversity ◽  
Business Environment ◽  
Board Structure ◽  
Content Type ◽  
Financing Decisions ◽  
The Impact

Purpose Motivated by the agency theory, this study aims to empirically examine the nexus between board attributes and a firm’s financing decisions of non-financial listed firms in Palestine and how the previous relationship is moderated and shaped by the level of gender diversity. Design/methodology/approach Multiple regression analysis on a panel data was used. Further, we applied three different approaches of static panel data “pooled OLS, fixed effect and random effect.” Fixed-effects estimator was selected as the optimal and most appropriate model. In addition, to control for the potential endogeneity problem and to profoundly analyze the study data, the authors perform the one-step system generalized method of moments (GMM) estimator. Dynamic panel GMM specification was superior in generating robust findings. Findings The findings clearly unveil that all explanatory variables in the study model have a significant influence on the firm’s financing decisions. Moreover, the results report that the impact of board size and board independence are more positive under conditions of a high level of gender diversity, whereas the influence of CEO duality on the firm’s leverage level turned from negative to positive. In a nutshell, gender diversity moderates the effect of board structure on a firm’s financing decisions. Research limitations/implications This study was restricted to one institutional context (Palestine); therefore, the results reflect the attributes of the Palestinian business environment. In this vein, it is possible to generate different findings in other countries, particularly in developed markets. Practical implications The findings of this study can draw responsible parties and policymakers’ attention in developing countries to introduce and contextualize new mechanisms that can lead to better monitoring process and help firms in attracting better resources and establishing an optimal capital structure. For instance, entities should mandate a minimum quota for the proportion of women incorporation in boardrooms. Originality/value This study provides empirical evidence on the moderating role of gender diversity on the effect of board structure on firm’s financing decisions, something that was predominantly neglected by the earlier studies and has not yet examined by ancestors. Thereby, to protrude nuanced understanding of this novel and unprecedented idea, this study thoroughly bridges this research gap and contributes practically and theoretically to the existing corporate governance–capital structure literature.

Do disclosure and transparency affect bank’s financial performance?

2019 ◽  
Vol 19 (6) ◽  
pp. 1344-1361
Author(s):  
Isaiah Oino
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Financial Performance ◽  
Financial Institutions ◽  
Content Type ◽  
Loan Portfolios ◽  
Cent Level ◽  
Transparency And Disclosure ◽  
The Impact

Purpose The purpose of this paper is to examine the impact of transparency and disclosure on the financial performance of financial institutions. The emphasis is on assessing transparency and disclosure; auditing and compliance; risk management as indicators of corporate governance; and understanding how these parameters affect bank profitability, liquidity and the quality of loan portfolios. Design/methodology/approach A sample of 20 financial institutions was selected, with ten respondents from each, yielding a total sample size of 200. Principal component analysis (PCA), with inbuilt ability to check for composite reliability, was used to obtain composite indices for the corporate governance indicators as well as the indicators of financial performance, based on a set of questions framed for each institution. Findings The analysis demonstrates that greater disclosure and transparency, improved auditing and compliance and better risk management positively affect the financial performance of financial institutions. In terms of significance, the results show that as the level of disclosure and transparency in managerial affairs increases, the performance of financial institutions – as measured in terms of the quality of loan portfolios, liquidity and profitability – increases by 0.3046, with the effect being statistically significant at the 1 per cent level. Furthermore, as the level of auditing and the degree of compliance with banking regulations increases, the financial performance of banks improves by 0.3309. Research limitations/implications This paper did not consider time series because corporate governance does not change periodically. Practical implications This paper demonstrates the importance of disclosure and transparency in managerial affairs because the performance of financial institutions, as measured in terms of loan portfolios, liquidity and profitability, increases by 0.4 when transparency and disclosure improve, with this effect being statistically significant at the 1 per cent level. Originality/value The use of primary data in assessing the impact of corporate governance on financial performance, instead of secondary data, is the primary novelty of this study. Moreover, PCA is used to assess the weight of the various parameters.

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