The Elephant (or Donkey) in the Boardroom

2016 ◽  
Vol 62 (1) ◽  
pp. 1-30 ◽  
Author(s):  
Abhinav Gupta ◽  
Adam J. Wowak
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Political Psychology ◽  
Political Ideology ◽  
The Political ◽  
Political Ideologies ◽  
Ceo Pay ◽  
Board Level ◽  
The Relationship ◽  
Compensation Committees

We examine how directors’ political ideologies, specifically the board-level average of how conservative or liberal directors are, influence boards’ decisions about CEO compensation. Integrating research on corporate governance and political psychology, we theorize that conservative and liberal boards will differ in their prevailing beliefs about the appropriate amounts CEOs should be paid and, relatedly, the extent to which CEOs should be rewarded or penalized for recent firm performance. Using a donation-based index to measure the political ideologies of directors serving on S&P 1500 company boards, we test our ideas on a sample of over 4,000 CEOs from 1998 to 2013. Consistent with our predictions, we show that conservative boards pay CEOs more than liberal boards and that the relationship between recent firm performance and CEO pay is stronger for conservative boards than for liberal boards. We further demonstrate that these relationships are more pronounced when focusing specifically on the directors most heavily involved in designing CEO pay plans—members of compensation committees. By showing that board ideology manifests in CEO pay, we offer an initial demonstration of the potentially wide-ranging implications of political ideology for how corporations are governed.

Would Firm Performance be Better with Women Directors? Evidence from India

2019 ◽  
Vol 23 (2) ◽  
pp. 180-188 ◽  
Author(s):  
Pavana Jyothi ◽  
Jayasree Mangalagiri
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Regression Models ◽  
Gender Diversity ◽  
Women Directors ◽  
Return On Assets ◽  
Indian Context ◽  
Board Level ◽  
The Impact ◽  
The Relationship

The purpose of this article is to examine the impact of women directors on firm performance of Indian companies and to check the impact after controlling their firm-specific and corporate governance variables. Further, the study explores the impact of women directors on firm performance of group firms and standalone firms. Regression models used in the study reveal that women directors create a positive and significant impact on firm performance as measured by return on assets (ROA) and Tobin’s Q. Further, the study found that the relationship becomes stronger if a firm belongs to the business group. This article adds to the existing literature on gender diversity at the board level, by analysing the impact of women directors on firm performance in the Indian context. This study is the first to examine the aspect of gender diversity in the Indian context.

Political Culture in the Lands of the Former Habsburg Empire: Authoritarian and Parliamentary Traditions

1998 ◽  
Vol 29 (1) ◽  
pp. 195-248
Author(s):  
George Barany
Keyword(s):  
Political Psychology ◽  
Political Culture ◽  
Political Ideology ◽  
Political System ◽  
Behavioral Approach ◽  
The Political ◽  
Habsburg Empire ◽  
Political Analysis ◽  
Fundamental Values

Historians and political scientists have already begun to explore different aspects of modern Austria's political culture. But as Helmut Konrad has reminded us, this relatively new concept is loosely defined; he considers “political culture” to mean “the values held by individuals, groups, and society as a whole that affect the behavior of peoplewithin and in relation to the political system of a country.” Lucian Pye stresses the behavioral approach in political analysis to make “more explicit and systematic” our understanding of “such long-standingconcepts as political ideology, national ethos and spirit, national political psychology, and the fundamental values of a people.”

scholarly journals Perbedaan Individual pada Ideologi Politik Berbasis Agama

2020 ◽  
Vol 8 (1) ◽  
pp. 1-8
Author(s):  
Ilmi Amalia
Keyword(s):  
Political Ideology ◽  
Social Dominance Orientation ◽  
Personality Types ◽  
Dual Process ◽  
Big Five Personality ◽  
Right Wing ◽  
Right Wing Authoritarianism ◽  
Political Ideologies ◽  
Convenience Sampling ◽  
The Relationship

AbstractIn practicing worship almost all Muslims run in the same manner but in Indonesia also found the diversity of the face of Islam. One form of diversity is how to see religion as a political ideology. From various views political ideologies based on Islamic religion have polarizations, namely secular and radical Islamism. How to explain the diversity of ideologies based on individual differences. Jost et al (2009) offer three basic needs that determine individual ideological differences, namely the need for epistemic, the need for existential, and the need for relational. In addition to differences in the concept of fundamental needs, studies also show a relationship between personality types and ideological or political attitudes. Duckitt & Sibley (2010) offers a dual-process motivational model that explains that political ideology is formed due to interactions between personalities and different social situations. Many studies have been conducted to see the relationship between ideology with liberal and conservative polarization (right / left) or right wing authoritarianism (RWA) and social dominance orientation (SDO) with different needs or personality types (Jost, Ledgerwood, & Hardin, 2008; Jost et al., 2007; Sibley, Osborne, & Duckitt, 2012). However, no research has been conducted on political ideologies based on religion, especially Islam. The study was conducted on 243 Muslims and aged 17 years and over. Questionnaires were distributed in the Greater Jakarta area online and offline. The sampling technique used convenience sampling. Then the data is processed using regression analysis techniques. The results showed that together, the need for epistemic, need for existential, need for relational, and Big five personality influenced Islamic political ideology with a contribution of 7.2%. Significant predictors of the relationship are need for existential and need for relational. AbstrakDalam pelaksanaan ibadah hampir semua umat Islam menjalankan dengan tata cara yang sama namun di Indonesia ditemukan juga keanekaragaman wajah Islam. Salah satu bentuk keanekaragaman tersebut adalah bagaimana melihat agama sebagai suatu ideologi politik. Dari berbagai macam pandangan dapat dilihat bahwa ideologi politik yang berbasis agama Islam memiliki polarisasi yaitu sekuler dan radikal Islamisme. Bagaimana menjelaskan keragaman ideologi tersebut berdasarkan perbedaan individual. Jost dkk (2009) menawarkan adanya tiga kebutuhan mendasar yang menentukan perbedaan ideologi individu yaitu need for epistemic, need for existential, dan need for relational. Selain pada perbedaan pada konsep kebutuhan mendasar, studi juga menunjukkan adanya hubungan tipe kepribadian dan ideologi atau sikap politik. Duckitt & Sibley (2010) menawarkan model dual-process motivational yang menjelaskan bahwa ideologi politik terbentuk akibat interaksi antara kepribadian dan situasi sosial yang berbeda. Studi telah banyak dilakukan untuk melihat hubungan ideologi dengan polarisasi liberal dan konservatif (kanan/kiri) atau right wing authoritarianism (RWA) dan social dominance orientation (SDO) dengan perbedaan kebutuhan atau tipe kepribadian (Jost, Ledgerwood, & Hardin, 2008; Jost et al., 2007; Sibley, Osborne, & Duckitt, 2012). Namun demikian, belum ada riset yang dilakukan pada ideologi politik yang berlandaskan pada agama terutama Islam. Studi dilakukan pada 243 Muslim dan berumur 17 tahun ke atas. Kuesioner disebarkan di daerah Jabodetabek secara daring dan luring. Teknik pengambilan sampel digunakan convenience sampling. Kemudian data diolah dengan teknik analisis regresi. Hasil penelitian menunjukkan secara bersama-sama, need for epistemic, need for existential, need for relational, dan Big five personality mempengaruhi ideologi politik Islam dengan kontribusi sebesar 7,2 %. Prediktor yang signifikan hubungannya adalah need for existential dan need for relational.

scholarly journals Impact of corporate governance index on firm performance: evidence from Pakistani manufacturing sector

2015 ◽  
Vol 4 (3) ◽  
pp. 163-174 ◽  
Author(s):  
Faisal Javaid
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Capital Investment ◽  
Random Effect ◽  
Annual Reports ◽  
Governance Mechanism ◽  
Inconsistent Result ◽  
Governance Index ◽  
Corporate Governance Mechanism ◽  
The Relationship

Corporate governance is considered to have significant impact on the growth and development perspective of an economy. Sound corporate governance practices leads the economy towards the achievement of higher performance, provide sources for capital investment by increasing the creditability of shareholders. The purpose of this study is to empirically investigate the relationship of corporate governance and firm performance in terms of accounting as well as market performance i.e.to be measured by Return on asset, Return on equity and Tobin’s Q. The theoretical base to conduct the study is the demand of separation of ownership and control characterize as agency theory. The previous studies have yielded inconsistent result. To achieve the purpose 58 textile sector companies were selected listed in the Karachi stock exchange and data was taken from annual reports of the companies for the period of 2009 to 2013. Descriptive statistics, correlation analysis and regression estimation using pooled, fixed effect, random effect and Hausman specification test were carried out after developing a composite index based on 21 proxies. The result entails that corporate governance index (CGI) and firm performance has positive and significant association but the relationship for each specific index is dependent upon the measure of firm performance. The result also shows that companies having strong corporate governance mechanism has greater chances to acquire finance. The implication of study demands that the reform effort should be directed towards the improvement in internal corporate governance mechanism and regulatory framework for the governance system.

Corporate governance, globalization and firm performance in emerging economies

2018 ◽  
Vol 67 (8) ◽  
pp. 1310-1333 ◽  
Author(s):  
Neha Saini ◽  
Monica Singhania
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Panel Data ◽  
Foreign Capital ◽  
Good Governance ◽  
Foreign Ownership ◽  
Foreign Firms ◽  
Content Type ◽  
Governance Practices ◽  
The Relationship

PurposeThe purpose of this paper is to examine relationship between corporate governance (CG) and firm performance for a set of 255 foreign-funded firms in the form of foreign direct investment (FDI) and private equity (PE). The authors employ a wide range of CG measures including board size, meetings, board gender and foreign ownership which are used as the proxy of globalisation and control variables like firm age, leverage, firm size and capital expenditure to arrive at a conclusion.Design/methodology/approachPanel data set of 255 (187 companies funded by foreign capital in the form of FDI, and 68 companies having foreign capital in the form PE) companies listed on Bombay Stock Exchange, for the period of eight years (2008–2015) are analysed by using static (fixed and random effects) and dynamic (generalised method of moments (GMM)) panel data specifications to examine the relationship among CG, globalisation and firm performance.FindingsThe empirical results of static model indicate the relationship between CG and performance of foreign firms, which are not very strong in India. This is due to the fact that most of the firms are not following the guidelines and regulations strictly in the initial period of sample years. Diversity in board is found as an important variable in accessing firm performance. And the authors also found that foreign firms are very particular about the implementation of CG norms. The results of GMM model highlight the interaction term of foreign ownership with governance indicators. CG is having a positive and significant impact over performance, inferring that higher foreign ownership (in the form of FDI and PE) in firm leading to positive effect on profitability.Practical implicationsThe investor’s preference of financing a unit is guided by the performance of a firm. Investors are more inclined towards high-performing firms, and hence higher profitability leads to higher inflow of capital. The result indicates that higher accounting and market performance may be achieved by good governance practices, in turn, leading to reduced agency costs. Countries with high governance scores attract more of foreign capital. Similar to the best governed countries, the companies having good governance practices attract more foreign inflows in the form of capital.Originality/valueWhile previous literature considered a single measurement framework in the form of a CG index, the authors tried to incorporate a range of CG indicators to study the effect of globalisation and CG on firm performance. The authors segregated foreign-owned funds into two parts, especially FDI and PE. This paper examined heterogeneity in the form of FDI-funded and PE-funded firms, as no prior literature is available which has evaluated different sets of foreign funds simultaneously on CG.

Participatory Ideology

2021 ◽  
Author(s):  
Peter Beresford
Keyword(s):  
Social Welfare ◽  
Political Ideology ◽  
Participatory Approaches ◽  
Political Ideologies ◽  
First Time ◽  
The Relationship

This book examines for the first time the exclusionary nature of prevailing political ideologies. Bringing together theory, practice and the relationship between participation, political ideology and social welfare, it offers a detailed critique of how the crucial move to more participatory approaches may be achieved.

Pay-performance sensitivity and corporate governance mechanisms: evidence from Tunisia

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Meriem Ghrab ◽  
Marjène Gana ◽  
Mejda Dakhlaoui
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Pay For Performance ◽  
Simultaneous Equation ◽  
Executive Pay ◽  
Estimation Model ◽  
Content Type ◽  
Explanatory Variables ◽  
Performance Sensitivity ◽  
Ceo Pay

Purpose The purpose of this study is to analyze the CEO compensation sensitivity to firm performance, termed as the pay-for-performance sensitivity (PPS) in the Tunisian context and to test the robustness of this relationship when corporate governance (CG) mechanisms are considered. Design/methodology/approach The consideration of past executive pay as one of the explanatory variables makes this estimation model a dynamic one. Furthermore, to avoid the problem of endogeneity, this study uses the system-GMM estimator developed by Blundell and Bond (1998). For robustness check, this study aims to use a simultaneous equation approach (three-stage least squares [3SLS]) to estimate the link between performance and CEO pay with a set of CG mechanisms to control for possible simultaneous interdependencies. Findings Using a sample of 336 firm-years from Tunisia over the 2009–2015 periods, this study finds strong evidence that the pay-performance relationship is insignificant and negative, and it becomes more negative or remains insignificant after introducing CG mechanisms consistently with the managerial power approach. The findings are robust to the use of alternative performance measures. This study provides new empirical evidence that CEOs of Tunisian firms abuse extracting rents independently of firm performance. Originality/value This study contributes to the unexamined research on PPS in a frontier market. This study also shows the ineffectiveness of the Tunisian CG structure and thus recommends for the legislator to impose a mandatory CG guide.

scholarly journals YouTube and Political Ideologies: Technology, Populism and Rhetorical Form

2020 ◽  
pp. 003232172093463
Author(s):  
Alan Finlayson
Keyword(s):  
Digital Media ◽  
Political Ideology ◽  
The Political ◽  
Performance Style ◽  
Broadcast Media ◽  
Political Ideas ◽  
Political Ideologies ◽  
Therapeutic Benefits ◽  
Digital Media Studies ◽  
The Uk

Digital (participatory and shareable) media are driving profound changes to contemporary politics. That includes, this article argues, important changes to the production, dissemination and reception of political ideas and ideologies. Such media have increased the number and political range of ‘ideological entrepreneurs’ promoting forms of political thought, while also giving rise to distinct genres of political rhetoric and communication. All of this is affecting how people come to be persuaded by and to identify with political ideas. In developing and justifying these claims, I draw on the Political Theory of Ideologies, Digital Media Studies and Rhetorical Political Analysis. I begin by showing how a populist ‘style’, induced by broadcast media, has been intensified by digital media, affecting ideological form and content. Next I consider, in detail, a particular example – YouTube – showing how it shapes political, ideological, communication. I then present a case-study of the UK-based political YouTuber Paul Joseph Watson. I show how the political ideology he propagates can be understood as a blend of Conservatism and Libertarianism, expressed in a Populist style, centred on the ‘revelation’ of political truths and on a promise of therapeutic benefits for followers. In a closing discussion I argue that this may be understood as a kind of ‘charismatic’ authority, and that such a political performance style is typical of these kinds of media today.

Political Ideology and the Law Review Selection Process

2020 ◽  
Vol 22 (1) ◽  
pp. 211-240
Author(s):  
Adam Chilton ◽  
Jonathan Masur ◽  
Kyle Rozema
Keyword(s):  
Political Ideology ◽  
Selection Process ◽  
The Political ◽  
The Law ◽  
The Relationship ◽  
Share Of Articles ◽  
Do So

Abstract We investigate the role that political ideology plays in the selection process for articles in law reviews. To do so, we match data on the political ideology of student editors from 15 top law reviews from 1990 to 2005 to data on the political ideology of the authors of accepted articles. We find that law reviews with a higher share of conservative editors accept a higher share of articles written by conservative authors. We then investigate potential explanations for this pattern. One possibility is that editors have a preference for publishing articles written by authors that share their ideology. Another possibility is that editors are objectively better at assessing the contribution of articles written by authors that share their ideology. We find evidence that the latter explanation drives the relationship between editor and author ideology.

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