Director independence: Going beyond misaligned incentives to resource dependence

2021 ◽  
pp. 031289622110099
Author(s):  
Conan Hom ◽  
Danny Samson ◽  
Christina Cregan ◽  
Peter Cebon
Keyword(s):  
Agency Theory ◽  
Resource Dependence ◽  
Jel Classification ◽  
Survey Method ◽  
Strategic Risk ◽  
Normative Practices ◽  
Board Director ◽  
Director Independence ◽  
Service Task

Board director independence is critical to achieving and maintaining control to address the agency theory–based issue of interest misalignment between the principal (the organization) and the executives (agent). However, theoretical and empirical research and strategic risk considerations have brought into question the role or relevance that director independence plays in these control task and agency theory domains. We ask, using a quantitative survey method, whether board activity–based applications of independence may be associated with the service task of the board, namely its resource dependence mission. Our findings suggest that the resource dependence duty of the board may be positively associated with some autonomous activities, and yet other activities might be driven primarily by normative practices. Based on this, we suggest that a theoretical scope beyond and greater than agency theory may be needed when reassessing the role of director independence. JEL Classification: M1, O3

scholarly journals Corporate Governance: An Overview. From Creation of Value for Shareholders by the Board to the Duality Role of Its Chairperson

2019 ◽  
Vol 8 (1) ◽  
pp. 40
Author(s):  
Michel Sayumwe
Keyword(s):  
Corporate Governance ◽  
Agency Theory ◽  
Stakeholder Theory ◽  
Resource Dependence ◽  
Stewardship Theory ◽  
Theory Theory ◽  
Theoretical Perspectives

In this paper, we discuss the evolution of the literature on corporate governance based on many theoretical perspectives, including agency theory, stakeholder theory, theory of resource dependence and stewardship theory.

Internal Audit's Role in GHG Emissions and Energy Reporting: Evidence from Audit Committees, Senior Accountants, and Internal Auditors

2013 ◽  
Vol 34 (1) ◽  
pp. 199-230 ◽  
Author(s):  
Andrew J. Trotman ◽  
Ken T. Trotman
Keyword(s):  
Agency Theory ◽  
Audit Committee ◽  
Resource Dependence ◽  
Ghg Emissions ◽  
Internal Audit ◽  
Sustainability Reporting ◽  
Resource Dependence Theory ◽  
Audit Committees ◽  
Internal Auditors

SUMMARY Internationally, disclosures related to greenhouse gas (GHG) emissions and energy usage have increased dramatically due to trends toward increased sustainability reporting, growing concerns about climate change, and the introduction of new legislation and taxes. Audit committees, management, internal auditors, external auditors, and other stakeholders all have a potential role in relation to GHG disclosures. Our study addresses the role of internal auditors. We conducted 29 interviews with senior audit committee members, senior accountants, in-house internal auditors, and partners specializing in internal audit from the major accounting firms. These interviews allowed us to gain insights into the present role of internal auditors in GHG/energy reporting, the factors explaining internal audit's role, and the future role of internal audit. In addition, audit committee members describe their present involvement in GHG/energy reporting. We consider the consistency of our findings with three corporate governance theories (agency theory, institutional theory, and resource dependence theory). Although our results support the importance of effective monitoring consistent with agency theory, no one theory fully explains our results.

The Role of Career Self-Efficacy on the Effect of Parental Career Behaviors on Career Exploration: A Study on School of Tourism and Hotel Management’ Students

2016 ◽  
Vol 3 (1) ◽  
pp. 143 ◽  
Author(s):  
Selahattin Kanten ◽  
Pelin Kanten ◽  
Murat Yeşiltaş
Keyword(s):  
Undergraduate Students ◽  
Self Efficacy ◽  
Structural Equation ◽  
Career Exploration ◽  
Equation Modeling ◽  
Survey Method ◽  
Hotel Management ◽  
Mediating Role ◽  
The Impact

This study aims to investigate the impact of parental career behaviors on undergraduate student’s career exploration and the mediating role of career self-efficacy. In the literature it is suggested that some social and individual factors facilitate students’ career exploration. Therefore, parental career behaviors and career self-efficacy is considered as predictors of student’s career exploration attitudes within the scope of the study. In this respect, data which are collected from 405 undergraduate students having an education on tourism and hotel management field by the survey method are analyzed by using the structural equation modeling. The results of the study indicate that parental career behaviors which are addressed support; interference and lack of engagement have a significant effect on student’s career exploration behaviors such as intended-systematic exploration, environment exploration and self-exploration. In addition, it has been found that one of the dimensions of parental career behaviors addressed as a lack of engagement has a significant effect on career self-efficacy levels of students. However, research results indicate that student’s career self-efficacy has a significant effect on only the self-exploration dimension. On the other hand, career self-efficacy has a partial mediating role between lack of engagement attitudes of parents and career exploration behaviors of students.

scholarly journals Limiting role of resource dependence: an examination of director interlocks, board meetings and family ownership

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Vidya Sukumara Panicker ◽  
Rajesh Srinivas Upadhyayula
Keyword(s):  
Board Of Directors ◽  
Resource Dependence ◽  
Family Firms ◽  
Emerging Market ◽  
Resource Provisioning ◽  
Independent Directors ◽  
Family Ownership ◽  
Independent Director ◽  
Content Type

PurposeThis paper attempts to examine the activity and involvement of board of directors in internationalization activities of firms in emerging markets, by evaluating the resource provisioning roles of interlocks provided by board of directors, and the frequency of board meetings. We demonstrate that the effectiveness of board involvement is contingent upon the levels of family ownership in firms since family ownership could impact the firm’s ability to utilize the presence of different types of board members.Design/methodology/approachThe authors test our hypotheses on a sample of listed Indian companies, extracted from the Prowess database published by the Centre for Monitoring Indian Economy (CMIE), a database of the financial performance of Indian companies. On a panel of 3,133 firm years of 605 unique Indian firms with foreign investments, over a time period of 2006–2017, the authors apply different estimation techniques.FindingsThe results demonstrate that both board meeting frequency and director interlocks are instrumental in supporting internationalization activities in emerging market firms. However, family ownership moderates the role of insider and independent interlocks on internationalization investments in different ways; the authors find that interlocks provided by independent directors support internationalization activities in family firms, whereas those provided by insider directors do not. Further, the study also finds that board meetings are less effective in internationalization of family firms.Practical implicationsThe authors conclude that family firms aiming at international diversification require to develop more connected and networked independent directors to enable internationalization in firms. While independent director interlocks enhance the international investments, it is also useful to know that board meetings are ineffective in utilizing the resources in family firms. This points to the possibility that family firms should device mechanisms to integrate family meetings with board meetings so that they can utilize the within-family processes to aid in their internationalization decisions.Originality/valueThe study contributes to resource dependence theory by understanding its limiting role in family firms. Theoretically, it helps delineate the limiting resource provision role of the insider directors vis-à-vis independent directors. The authors argue that the resource provision role of insider director interlocks does not effectively help in internationalization in comparison to independent director interlocks in family-dominated firms. Consequently, the study shows the limiting role of resource provision and utilization by family-owned firms in comparison to non-family-owned firms.

Reshaping the Economic Structure in Argentina: The Role of External Debt during the Macri Administration (2015–2019)

2021 ◽  
pp. 048661342097642
Author(s):  
Juan E. Santarcángelo ◽  
Juan Manuel Padín
Keyword(s):  
External Debt ◽  
Economic Structure ◽  
The United States ◽  
Jel Classification ◽  
Financial Capital ◽  
Economic Policies ◽  
Right Wing ◽  
Long Term Effects

Argentina’s right-wing shift in the 2015 presidential election concluded twelve years of center-left rule. The elected president, Mauricio Macri, claimed that the economy would experience normalization of existing imbalances and recover its strength in a “new political era.” However, the new administration quickly restored the dominance of neoliberal economic policies through a comprehensive set of initiatives, which centrally included the return to international financial debt and equity markets and submission to the International Monetary Fund’s (IMF) rules. This article analyzes Argentina’s external-debt-growth process and discusses its objectives and long-term effects. This paper posits that the indebtedness process carried out by the Macri administration—and its modality—not only increased the relevance of financial capital in the Argentine economy but also structurally conditioned any future nonorthodox alternative path of development. This outcome cannot be understood without taking into account the deliberate role of the United States, the IMF, and the top companies that operate in Argentina, as well as the complicity of many political sectors. JEL Classification: H63, F34, F63

scholarly journals Relationships between Final Purchasers and Offerors in the Context of Their Perception by Final Purchasers

Energies ◽  
2021 ◽  
Vol 14 (11) ◽  
pp. 3271
Author(s):  
Agnieszka Izabela Baruk
Keyword(s):  
Factor Analysis ◽  
Statistical Analysis ◽  
World Literature ◽  
Empirical Studies ◽  
Primary Data ◽  
Survey Method ◽  
Chi Square ◽  
Marketing Process ◽  
Research Gap

The aim of this article was to identify the role of good mutual relationships with offerors for final purchasers, as well as define the meaning of the perception of offerors in the scope of listening to purchasers’ opinions and profiting from purchasers’ readiness to cooperate for the specificities of the prosumeric activity. A deep analysis of the world literature was used to prepare the theoretical part of this paper. The results of this analysis confirm the existing cognitive gap and research gap regarding mentioned aspects, including energy market. Empirical studies were conducted to reduce identified gaps. The survey method was used to collect primary data. The collected data were subjected to quantitative analysis, during which statistical analysis methods and tests were applied (Pearson chi-square independence test, V-Cramer factor analysis, Kruskal–Wallis test (KW), and exploratory factor analysis). The results of the statistical analysis and testing allowed the three research hypotheses formulated to be checked. Between the significance of good relationships with offerors and their perception, a statistically significant dependence was identified for all groups of offerors. The perception of offerors was a feature differentiating respondents’ opinions about the significance of good relationships with offerors for the two following groups: producers and traders. Additionally, the perception of offerors was a feature differentiating forms of prosumeric activity of respondents only for three interpurchase behaviors. The results obtained have a visible cognitive and applicability value. They contribute to the theory of marketing, as well as possibly facilitating the formation of good mutual relationships between offerors (including offerors of energy) and final purchasers as key partners cooperating with offerors in the marketing process. The approach presented in this paper has not been studied and analyzed so far, either in theoretical or in practical terms. This fact confirms its originality and value.

scholarly journals The Effect of Using Social Media in the Modern Marketing Communication on the Shaping an External Employer’s Image

Energies ◽  
2021 ◽  
Vol 14 (14) ◽  
pp. 4177
Author(s):  
Agnieszka Izabela Baruk ◽  
Grzegorz Wesołowski
Keyword(s):  
World Literature ◽  
Statistical Tests ◽  
Empirical Studies ◽  
Communication Channels ◽  
Primary Data ◽  
Survey Method ◽  
Marketing Communication ◽  
Chi Square ◽  
The Impact

The aim of this article was to determine the significance of modern marketing communication channels used in the process of shaping the external image of an enterprise as an employer. An analysis of the world literature on marketing, management, marketing communication and human resource management was used to prepare the theoretical part. The results of the analysis indicate a cognitive and research gap regarding the use of modern communication channels for building the external image of an enterprise in the role of an employer. In order to reduce the gap, empirical studies were conducted among young Polish potential employees, in which the survey method was used to gather primary data. The collected data were subjected to statistical analysis, during which the following methods and statistical tests were applied: the analysis of average values, exploratory factor analysis, Kruskal–Wallis test (KW), Pearson chi-square independence test and V-Cramer coefficient analysis. The results of the analyses conducted indicate, inter alia, that statistically significant diversity was identified in the case of non-professional media in terms of respondents’ opinions on whether the employer’s image created by modern media is better than the employer’s image created on the basis of classical marketing communication channels. In the case of professional and non-professional media, the age of the respondents was not a differentiating feature. Moreover, neither for professional media nor for non-professional media were statistically significant dependencies identified between respondents’ opinions on the impact of actions undertaken by enterprises on shaping their positive external image as an employer and respondents’ opinions on whether the employer’s image created on the basis of modern marketing communication channels is more beneficial than the employer’s image created on the basis of classical marketing communication channels. The results obtained on the basis of the research have a cognitive and applicability value, characterized by originality. Until now, the importance of using modern marketing communication channels in shaping the employer’s external image has not been analysed. This also applies to enterprises operating on the energy market.

Does Customer Experience Always Benefit Company? Examining Customers’ Epistemic Motivation and Interaction With Service Contexts

2021 ◽  
pp. 183933492199886
Author(s):  
Vu Thi Mai Chi ◽  
Widya Paramita ◽  
Tran Ha Minh Quan
Keyword(s):  
Social Identity Theory ◽  
Empirical Support ◽  
Customer Experience ◽  
Customer Engagement ◽  
Survey Method ◽  
Epistemic Motivation ◽  
Engagement Behavior ◽  
Company Identification ◽  
Employee Identification

The main purpose of this study is explaining how and when customer experience benefits the company. Built upon social identity theory, we propose that customer experience leads to customer engagement behavior, via two routes: customer-company and customer-employee identification. Furthermore, we advance that customers’ epistemic motivation negatively moderates the mediated effect of customer experience on customer engagement behavior. We ran two studies to validate the measurement of customer experience and to test our hypotheses. For the two studies, we employed a survey method by recruiting consumers of beauty salons in Vietnam. The results demonstrated that EXQ as a measurement for customer experience is applicable to the context of the study and provided empirical support for the hypotheses. Such as, this research found that customer experience positively influences customer engagement behavior as mediated by customer-company and customer-employee identification. Furthermore, this research revealed that customer epistemic motivation negatively moderates the mediated effect of customer experience on customer engagement behavior via customer-employee identification. However, the moderating role of customer epistemic motivation is insignificant for the mediated relationship via customer-company identification. Finally, this research offers theoretical and practical contributions that are elaborated and further discussed.

Financial Access of Latin America and Caribbean Firms: What Are the Roles of Institutional, Financial, and Economic Development?

2021 ◽  
pp. 097265272110153
Author(s):  
Lan Khanh Chu
Keyword(s):  
Economic Development ◽  
Latin America ◽  
Jel Classification ◽  
Caribbean Region ◽  
Country Level ◽  
Level Data ◽  
Latin America And Caribbean ◽  
The Impact ◽  
Moderating Role

This article examines the impact of institutional, financial, and economic development on firms’ access to finance in Latin America and Caribbean region. Based on firm- and country-level data from the World Bank databases, we employ an ordered logit model to understand the direct and moderating role of institutional, financial, and economic development in determining firms’ financial obstacles. The results show that older, larger, facing less competition and regulation burden, foreign owned, and affiliated firms report lower obstacles to finance. Second, better macro-fundamentals help to lessen the level of obstacles substantially. Third, the role of institutions in promoting firms’ inclusive finance is quite different to the role of financial development and economic growth. JEL classification: E02; G10; O16; P48

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