Majority-Minority Boards of Directors and Decision Making: The Effects of Homophily on Lending Decisions

2021 ◽  
pp. 000765032110621
Author(s):  
Cullen F. Goenner
Keyword(s):  
Cross Section ◽  
Boards Of Directors ◽  
Credit Unions ◽  
The United States ◽  
Racial Minorities ◽  
Mortgage Loan ◽  
Board Members ◽  
Social Injustice ◽  
Simple Theoretical Model ◽  
Lending Decisions

In this study, I examine the role racial minorities in the boardroom can play in reducing social injustice by promoting more equal access to mortgage credit to minority households. I develop a simple theoretical model that posits directors who are racial minorities provide the credit unions they govern with a perspective that shapes lenders’ trust of minority applicants. This trust is shaped by homophily and the tendency of individuals to prefer interactions with similar individuals. Using mortgage loan data from a cross-section of credit unions in the United States from 185,446 applications, I find that credit unions where the majority of board members are minorities are less likely to reject a similarly qualified minority applicant than their counterparts. Governance by minority directors significantly reduces the effects of discrimination faced by minority applicants. The board’s effect is strongest in minority neighborhoods and where the homophily is stronger between directors and applicants.

Guidelines for Family Business Boards of Directors

2006 ◽  
Vol 19 (2) ◽  
pp. 147-167 ◽  
Author(s):  
Suzanne Lane ◽  
Joseph Astrachan ◽  
Andrew Keyt ◽  
Kristi McMillan
Keyword(s):  
Corporate Governance ◽  
Boards Of Directors ◽  
The United States ◽  
Fortune 500 ◽  
Market Model ◽  
Board Members ◽  
Governance Reform ◽  
Public Companies ◽  
Governance Practices ◽  
Guidelines And Standards

Governance reform of publicly held corporations is an important topic these days, but a critical subtext has been missing from this often searing debate. Namely, what is the significance of these governance reforms, de jure and de facto, for the publicly held corporation's distant, smaller, but economically robust brethren—namely, the closely held, family-owned business? Should these family-owned entities be held to the same governance guidelines and standards that apply to those firms making up the ranks of the Fortune 500, for example? To put it another way, does one size fit all? We caution that many of the most popularized corporate governance practices may be detrimental to family businesses. Many of these recommendations may harm family unity or might be too complex for private firms, and many are applicable only to very large, public companies with dispersed ownership. Popular corporate governance practices are focused toward a market model of corporate governance, found prevalently in the United States and United Kingdom, which involves companies with a widely dispersed shareholder base and a majority of independent, outside board members. In contrast, the typical family-owned business exhibits characteristics of the control model of corporate governance, found prevalently in continental Europe, Latin America, and Asia, which involves companies with a concentrated shareholder base and family member “insiders” active in management and the board. As a result of these differences, many of the new laws and recommendations may actually be harmful to family-owned businesses.

scholarly journals Corporate governance and IPO underpricing: evidence from the italian market

2021 ◽  
Author(s):  
Emanuele Teti ◽  
Ilaria Montefusco
Keyword(s):  
Corporate Governance ◽  
Initial Public Offering ◽  
Boards Of Directors ◽  
Stock Option ◽  
Board Members ◽  
Ipo Underpricing ◽  
Italian Market ◽  
Public Offering ◽  
The Impact ◽  
Positive Effect

AbstractThis paper aims to analyse the impact of firms’ corporate governance characteristics on the degree of first-day returns (i.e., underpricing) in the Italian initial public offering (IPO) market. In particular, this work investigates the impacts of the characteristics of boards of directors (BoDs) and ownership structure on the underpricing of newly offered shares. By studying a sample of 128 Italian IPOs between 2000 and 2016, it is concluded that corporate governance characteristics affect the degree of first-day returns following a company’s IPO. More specifically, the size of the BoD negatively affects underpricing, while the ownership of institutional investors and board members has a positive effect on the degree of underpricing. Conversely, no significant evidence is found with regard to board independence, the number of female directors in the boardroom, the implementation of stock option plans and ownership concentration.

scholarly journals Implementing the board of directors’ mechanism – An empirical study of the listed firms in Libya

2018 ◽  
Vol 14 (1) ◽  
pp. 22-33 ◽  
Author(s):  
Jill Atkins ◽  
Mohamed Zakari ◽  
Ismail Elshahoubi
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Boards Of Directors ◽  
Listed Companies ◽  
Board Members ◽  
Corporate Boards ◽  
Listed Firms ◽  
Stakeholder Groups ◽  
The Board Of Directors ◽  
Executive Managers

This paper aims to investigate the extent to which board of directors’ mechanism is implemented in Libyan listed companies. This includes a consideration of composition, duties and responsibilities of the board directors. This study employed a questionnaire survey to collect required data from four key stakeholder groups: Boards of Directors (BD), Executive Managers (EM), Regulators and External Auditors (RE) and Other Stakeholders (OS). The results of this study provided evidence that Libyan listed companies generally comply with the Libyan Corporate Governance Code (LCGC) requirements regarding the board composition: the findings assert that most boards have between three and eleven members, the majority of whom are non-executives and at least two or one-third of whom (whichever is greater) are independent. Moreover, the results indicate that general assemblies in Libyan listed companies are practically committed to the LCGC’s requirements regarding the appointment of board members and their length of tenure. The findings provide evidence that boards in Libyan listed companies are carrying out their duties and responsibilities in accordance with internal regulations and laws, as well as the stipulations of the LCGC (2007). Furthermore, the stakeholder groups were broadly satisfied that board members are devoting sufficient time and effort to discharge these duties and responsibilities properly. This study helps to enrich our understanding and knowledge of the current practice of corporate boards as a significant mechanism of corporate governance (CG) by being the first to address the board of directors’ mechanism in Libyan listed companies.

The Impact of Social Injustice on Public Health

2019 ◽  
pp. 3-20
Author(s):  
Barry S. Levy
Keyword(s):  
Human Rights ◽  
Social Justice ◽  
Equal Opportunity ◽  
The United States ◽  
Social Injustice ◽  
Adverse Health Effects ◽  
Human Needs ◽  
Adverse Health ◽  
The Impact ◽  
The Relationship

Social injustice creates conditions that adversely affect the health of individuals and communities. It denies individuals and groups equal opportunity to have their basic human needs met. It violates fundamental human rights. It represents a lack of fairness or equity. This chapter provides two broad definitions of social injustice. It gives examples of social injustice, both within the United States and internationally. It describes adverse health effects related to social injustice. And it outlines ways in which health professionals and others can work to minimize social injustice and its adverse health consequences. Text boxes describe concepts of social justice, as well as the relationship between science and social justice. The Appendix to the chapter contains the Universal Declaration of Human Rights.

Something Has Changed

2020 ◽  
pp. 185-192
Author(s):  
Jack Reid
Keyword(s):  
World War Ii ◽  
Cross Section ◽  
The United States ◽  
Contemporary Society ◽  
Personal Safety ◽  
Conservative Movement ◽  
The Great Depression ◽  
Ride Sharing ◽  
National Values ◽  
The 1960S

The epilogue summarizes key arguments in the book and reflects on ideas about ride solicitation in contemporary society—noting the intersections between hitchhiking and modern ride-sharing apps like Uber and Lyft. Hitchhiking was common for decades in the United States, because it complimented the transportation needs of a cross-section of Americans while also meshing with the nation’s values—whether it be during the Great Depression, World War II, or the “hitchhiking renaissance” of the 1960s and ‘70s. The practice lost traction when thumbing rides fell out of touch with national values amid the rise of the conservative movement, increasing transportation regimentation, and growing concerns for personal safety.

An Application of Knowledge Management and Human Capital Valuation

2016 ◽  
pp. 201-233
Author(s):  
Sarah Robertson
Keyword(s):  
Human Capital ◽  
Knowledge Management ◽  
Core Competencies ◽  
Balance Sheet ◽  
Credit Unions ◽  
The United States ◽  
Credit Union ◽  
Level Of Knowledge ◽  
Expected Benefits ◽  
Knowledge Intensive

The purpose of this study is to investigate the level of Knowledge Management (KM) and Human Capital Valuation (HCV) as it is applied in credit unions. Knowledge has been recognized as one of the most important assets, which if appropriately managed, provides a foundation for creating core competencies and competitive advantages for organizations. KM applications and strategies have become critical and significant in the credit union industry, as they operate in a highly competitive and knowledge-intensive financial marketplace. A few factors depict the level of KM maturity within an organization, the priority of implementation, and the availability and affordability of resources. HCV is the balance sheet metric from a development of systems and infrastructure, which can tie metrics of employee behavior of value offering back to the member owners (stakeholders). The case studies described in this chapter are based on the business experience of the author, a credit union CEO of 12 years and a business consultant to the Midwest-region of the United States, in the credit union industry for 6 years. A KM audit and an HCV were conducted in a mid-sized credit union. The appreciation of KM and HCV are developing in the credit union industry; however, it is found that organizations have not been able to capitalize on the expected benefits and leverage their performances with KM solutions and HC Strategies, unless it is priority and a planned event. This is a developing industry with signs of future improvement. There are examples siting various Midwest credit unions, where KM applications and HC Strategies are evident at various stages with opportunities for intellectual growth and learning.

Preparing Social Workers to Confront Social Injustice and Oppression: Evaluating the Role of Social Work Education

Social Work ◽  
2020 ◽  
Author(s):  
Rachel W Goode ◽  
Mariah Cowell ◽  
Dielle McMillan ◽  
Tonya Van Deinse ◽  
Courtney Cooper-Lewter
Keyword(s):  
Social Workers ◽  
Personal Responsibility ◽  
The United States ◽  
Student Experiences ◽  
Social Injustice ◽  
Dominant Group ◽  
Faculty Preparation ◽  
Student Preparedness ◽  
Implicit Curriculum

Abstract Since the presidential election of 2016, bias-related incidents, hate-filled rhetoric, and extremist violence have been increasing in the United States. Because social workers are often working with individuals and communities affected by these incidents, practitioners may have increasing responsibility to confront social injustice and oppression. However, limited evidence on the preparedness of social workers to assume this responsibility, particularly among those who are still students, exists. To address this gap, this study used focus group and survey data from the Diversity and Oppression Scale to explore the preparedness of MSW students (N = 22) to confront oppression. Six themes were identified as integral to student experiences in their programs: (1) social worker responsibility to confront oppression, (2) use of dominant group discourse on oppression, (3) variation in faculty preparation and comfort, (4) a focus on knowledge of oppression versus skills and process, (5) role of personal responsibility and experience in student preparation, and (6) strategies to increase student preparedness to confront oppression. Factors identified to enhance students’ level of preparedness include faculty opportunities for development, changes to the explicit and implicit curriculum, and creating a formalized way to integrate topics on oppression and diversity into all facets of the curriculum.

Racial Diversity in Publicly Traded Companies

2020 ◽  
Vol 5 (2) ◽  
pp. 66-85
Author(s):  
Jeffrey Kurt Orlando Thompson ◽  
Richard C. Thompson
Keyword(s):  
Boards Of Directors ◽  
Stock Exchange ◽  
Gender Diversity ◽  
Racial Diversity ◽  
Organizational Factors ◽  
Board Members ◽  
Toronto Stock Exchange ◽  
Publicly Traded Companies ◽  
Visible Minorities ◽  
The Board Of Directors

This article shares some of the results of a thesis investigating the relationship between the racial diversity of the board of directors in Canadian companies that traded on the Toronto Stock Exchange (TSX). The central question addressed was how organizational factors affect the racial diversity of board membership. The thesis expanded on a prior study that modelled gender diversity on boards of directors by focusing on the recommended area of racial diversity in the Canadian environment. Though many companies do not share their diversity details, using multiple regression analysis, the results showed that there was more racial diversity on larger boards. From a population of about 3,000 companies, the researchers identified a sample of 148 companies, with all the required parameters. This sample contained 1,246 board members, where 9.4% (117 board members) were visible minorities. The ANOVA analysis of the model demonstrated that it was a suitable tool to conduct the investigation. However, the variables did not show any strong significance.

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