Loss making PSUs: Issue of Corporate Governance

Paradigm ◽  
1998 ◽  
Vol 1 (2) ◽  
pp. 64-69
Author(s):  
Atmanand
Keyword(s):  
Corporate Governance ◽  
Chief Executive Officers ◽  
Business Strategy ◽  
Good Governance ◽  
Chief Executive ◽  
Status Quo ◽  
Clarity Of Responsibility ◽  
The Status ◽  
Executive Officers

The managements of PSUs, have little autonomy and in many cases are encouraged to maintain the status quo in business strategy rather than to risk change. Major decisions are delayed or not taken at all which includes among other things, the appointment of chief executive officers. In other words, most of the basic ingredients for good governance are missing Clarity of responsibility, transparency, checks and liala11ces and accountability. Corporate governance does not seem to exist at all.

Harmonizing IT and Business Strategies

2005 ◽  
pp. 1317-1321
Author(s):  
Kevin Johnston
Keyword(s):  
Chief Executive Officers ◽  
Business Strategy ◽  
Chief Executive ◽  
Business Strategies ◽  
Chief Information Officers ◽  
It Strategy ◽  
It Alignment ◽  
Academic Researchers ◽  
Business It Alignment ◽  
Executive Officers

The alignment of business strategy with IT strategy has been a concern of chief information officers (CIOs) (Berkman, 2000; Croteau & Bergeron, 2001; Crowley, 2001), chief executive officers (CEOs) (Armstrong, Chamberlain, Moore & Hart, 2002; Mesoy, 1999), academic researchers (Henderson & Venkatraman, 1999; Reich & Benbasat, 2000; Tallon & Kraemer, 2000), and research companies (Broadbent, 2000; Croteau & Bergeron, 2001; Meta Group, 2001) since the age of vacuum tubes. In surveys (Mesoy, 1999) of CIO concerns, alignment has consistently been rated as a major issue. A Cutter study reported that business-IT alignment was “the number one problem facing IT” (Crowley, 2001).

scholarly journals Corporate Governance And Directors’ Remuneration In Selected ASEAN Countries

2011 ◽  
Vol 25 (2) ◽  
Author(s):  
Dr. Mohammad Talha ◽  
Abdullah Sallehhuddin ◽  
Md Shukor Masuod
Keyword(s):  
Corporate Governance ◽  
Chief Executive Officers ◽  
Chief Executive ◽  
Governance Practices ◽  
Asean Countries ◽  
Business Entities ◽  
Future Direction ◽  
External Shareholders ◽  
Executive Officers ◽  
Board Level

This paper briefly discusses the corporate governance and directors’ remuneration as being practiced by five different ASEAN countries i.e. Singapore, Malaysia, Indonesia, Philippines, and Thailand. Governance is about how an entity is being directed and controlled, while corporate governance is about a system, procedure or mechanism of balancing between directing and controlling business entities’ internal matters and the demand of their external shareholders and stakeholders. The paper summarizes the development of corporate governance and directors’ remuneration in these countries. An attempt has also been made to highlight issues regarding the need of disclosure of individual director’s remuneration, the need of shareholders’ approval on directors’ remuneration, the need of shareholders’ approval on stock based incentive plan, approval of directors’ remuneration by a committee at board level, the separation of role of the Chairmen of Board of Directors and Chief Executive Officers, and the recommended maximum length of period offered to directors. It later focuses on the progress made by these countries in further uplifting their corporate governance practices. The paper also examines some arising pertinent and puts forth some recommendations on how the future direction of the development of corporate governance in ASEAN countries with respect to directors’ remuneration shall take shape.

scholarly journals Corporate governance in banks: the Nigerian experience

2010 ◽  
Vol 7 (4) ◽  
pp. 34-41
Author(s):  
Babalola Adeyemi
Keyword(s):  
Corporate Governance ◽  
Internal Control ◽  
Chief Executive Officers ◽  
Boards Of Directors ◽  
Banking Sector ◽  
Chief Executive ◽  
Secondary Sources ◽  
Liability Management ◽  
Executive Officers ◽  
Financial Transactions

Recent failures/collapse of high profit institutions around the world such as Enron, Parmalat, Worldcom, Barings Bank to mention just a few have shown that no company can be too big to fail. A common trend that ran through these monumental failures was poor corporate governance culture, exemplified in poor management, fraud and insider abuse by both management and board members, poor asset and liability management, poor regulations and supervision among others. This paper examines the conceptual framework of corporate governance. Some of the components of corporate governance in general and in the Nigerian banking sector in particular were identified and observed. Secondary sources were basically consulted for the purpose of this work and simple percentages were also used to explain a few of the findings. The study revealed that the boards of directors of a good number of these banks were ineffective and that the internal controls were equally weak as a result of the overriding influence of the chairman/chief executive officers. It was also observed that there were instances of insider abuses such as granting of insider related credits, huge non-performing loans and so on. In addition, lack of transparency and non-disclosure of financial transactions were very rampant in the banking sector in Nigeria according to the study carried out. Recommendations made include total separation of ownership from management, sound internal control system, full disclosure of all financial transactions and strengthening the enforcement mechanism of the regulatory authorities.

Why Malaysian Companies Are Involved in Related Party Transactions (RPT) in the Context of Corporate Governance (CG)

2021 ◽  
pp. 296-317
Author(s):  
Suleman Sherali Kamwani ◽  
Sofri B. Yahya
Keyword(s):  
Corporate Governance ◽  
Financial Reporting ◽  
Chief Executive Officers ◽  
Chief Executive ◽  
Related Party Transactions ◽  
Good Corporate Governance ◽  
Corporate Governance Mechanisms ◽  
Monitoring And Enforcement ◽  
And Performance ◽  
Executive Officers

The regulations related to corporate governance mechanisms such as the sensitivity of pay and performance of chief executive officers, board characteristics, and watches outside of those that are well connected in related party transactions (RPTs)in Malaysia are struggling from the monitoring and enforcement of good corporate governance. The primary aims of this study are to investigate the gap that exists in Malaysian company failures due to appropriate related party transactions and to evaluate the impact of good corporate governance on shareholders' confidence in related party transaction (RPTs) disclosures from the Malaysian Accounting Standards Board (MASB) of regulations. In the year 2000, a study was done by Claessens that examined the data of 236 Malaysian public organizations. The study found the dominancy of a large block of shareholders in organizations in addition to weak institutional structures. This chapter focuses on the usage of related party transactions undertaken to benefit Malaysian companies which have led to financial reporting disclosure information.

Female executives and corporate governance

2017 ◽  
Vol 43 (10) ◽  
pp. 1056-1072 ◽  
Author(s):  
Emilia Vähämaa
Keyword(s):  
Corporate Governance ◽  
Chief Executive Officers ◽  
Chief Executive ◽  
Chief Financial Officers ◽  
Gender Quotas ◽  
Content Type ◽  
Takeover Defenses ◽  
Governance Practices ◽  
The Board Of Directors ◽  
Executive Officers

Purpose The purpose of this paper is to examine whether the gender of the top executives is associated with the strength of corporate governance mechanisms within a firm. Design/methodology/approach The paper uses panel and instrumental variable regressions on an eight-year sample of the S&P 1,500 firms. Findings The results indicate that firms with female Chief Executive Officers (CEOs) and Chief Financial Officers have higher quality governance practices. Moreover, female CEOs are documented to have the most significant influence on the governance attributes related to the board of directors and takeover defenses mechanisms. Originality/value Overall, these findings indicate that the gender of the firm’s executives may have important implications for the strength of corporate governance. The paper promotes the importance of the recent national policies in numerous countries on gender quotas at the executive level.

Corporate governance and intellectual capital disclosures in CEOs’ statements

2017 ◽  
Vol 8 (1) ◽  
pp. 2-21 ◽  
Author(s):  
Xiaochang Yan
Keyword(s):  
Corporate Governance ◽  
Intellectual Capital ◽  
Chief Executive Officers ◽  
Negative Relationship ◽  
Chief Executive ◽  
Annual Reports ◽  
Board Composition ◽  
Content Type ◽  
Leverage Ratio ◽  
Executive Officers

Purpose The purpose of this paper is to study the influences of corporate governance on intellectual capital disclosures in chief executive officers’ (CEOs’) statements in annual reports. Design/methodology/approach Index score, word count and overall tone of CEOs’ intellectual capital disclosures are calculated to represent the extent, amount and tone of these disclosures, respectively. With a sample of 78 FTSE 100 companies, this paper uses content analysis and empirical analysis to examine the impacts of board size, board composition and shares concentration on the above three measures of CEOs’ intellectual capital disclosures, controlling for company size, profitability and leverage ratio. Findings Empirical results demonstrate a significant positive relationship between board composition and the extent, amount and tone of CEOs’ intellectual capital disclosures and a significant negative relationship between shares concentration and the amount of these disclosures. Originality/value This paper focuses on the impacts of corporate governance on CEOs’ intellectual capital disclosures. It also groundbreakingly measures the tone of CEOs’ disclosures.

scholarly journals The Effect Of Chief Executive Officers Turnover On International Financial Reporting Standards Reconciliation

2015 ◽  
Vol 31 (5) ◽  
pp. 1851
Author(s):  
Eun Sil Choi ◽  
Chang Seop Rhee
Keyword(s):  
Corporate Governance ◽  
Financial Reporting ◽  
Chief Executive Officers ◽  
Chief Executive ◽  
Ceo Turnover ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Financial Reporting Standards ◽  
Executive Officers ◽  
The Impact

We investigate the impact of Chief Executive Officer (CEO) changes on International Financial Reporting Standards (IFRS) reconciliation. Since January 1st, 2011 all Korean listed companies are required to adopt IFRS in their separate and consolidated accounts. To aid investors in evaluating corporate performance over time, the companies must restate the K-GAAP financial statements for 2010 under IFRS. We find that negative IFRS reconciliation is more frequent for firms with CEO turnover in 2011. The result suggests that new CEOs have an incentive to report lower earnings through IFRS reconciliation for the purpose of big bath. Additionally, in order to examine whether new CEOs incentive of the negative IFRS reconciliation is existed in different corporate governance levels, we classify the companies into strong and weak corporate governance. From the test, we find that their incentive of negative IFRS reconciliation is disappeared (existed) in the companies with strong (weak) corporate governance. This study will contribute to academics and disclosure-related practitioners by providing valuable information of the CEO incentive regarding IFRS reconciliation. We believe that our empirical evidence will be helpful to market participants when they make a business decisions in case of CEO turnover.

scholarly journals Capping the tenure of CEOs as a Good Corporate Governance Strategy: Prospects and Challenges

2021 ◽  
Vol 2 (1) ◽  
pp. 67-78
Author(s):  
Paradzai Munyede
Keyword(s):  
Corporate Governance ◽  
Chief Executive Officers ◽  
Good Governance ◽  
Chief Executive ◽  
Public And Private ◽  
The Public ◽  
Good Corporate Governance ◽  
Financial Scandals ◽  
Private And Public ◽  
Governance Practice

The concept of good corporate governance has gaining traction over the last three decades in the private and public sectors as a response to serious financial scandals and maladministration practices in organisations around the globe. Antidotes provided in previous studies on these corporate failures attributed this to poor board compositions and inadequate separation of power. Whilst this was part of the problem, little effort was put to understand how Chief Executive Officers (CEOs) term limits could also contribute to good governance practice which would make organisations avoid scandals. Therefore, the purpose of this paper is to explore how capping CEOs tenure could enhance good corporate governance in the public and private sectors. This paper is based on a qualitative approach and used content analysis to review data from published records like journal articles. This article posited that capped term limit in both the public and private sectors is ideal as it enhances good corporate governance practice which in turn will make institutions effective and responsive to changes in their operating environment.

scholarly journals Corporate governance: An analysis of the relationship between quality and cost

2019 ◽  
Vol 17 (1) ◽  
pp. 71-78
Author(s):  
Sylvie Berthelot ◽  
Michel Coulmont ◽  
Yves Levant
Keyword(s):  
Corporate Governance ◽  
Chief Executive Officers ◽  
Chief Executive ◽  
Executive Directors ◽  
Director Compensation ◽  
Study Results ◽  
Governance Practices ◽  
Executive Officers ◽  
The Relationship

The purpose of this study is to analyse linkages between the quality and cost of Canadian firms’ governance practices. With this in mind, the study relates the compensation of chief executive officers (CEOs) and non-executive directors to best governance practice index developed by The Globe and Mail. We collected data for the years 2013, 2014 and 2015, constituting 602 observations from all the Canadian companies included in The Globe and Mail corporate governance ratings for which financial information was available on the Research Insight database. We examined the relationship between the quality and cost of Canadian firms’ governance practices with a regression model. The analyses results tend to indicate some relationship between CEO and non-executive director compensation and the quality of governance practices. However, firm size appears to the determining explanatory factor. The study results also indicate that some activity sectors seem to have better governance practices than others

scholarly journals Gender Diversity in Audit Partners and Audit Efforts

2021 ◽  
Vol 16 (4) ◽  
pp. 96
Author(s):  
Veronica Tibiletti ◽  
Stefano Azzali ◽  
Tatiana Mazza
Keyword(s):  
Corporate Governance ◽  
Chief Executive Officers ◽  
Boards Of Directors ◽  
Gender Diversity ◽  
Chief Executive ◽  
Audit Fees ◽  
Female Representation ◽  
Listed Firms ◽  
The Board Of Directors ◽  
Executive Officers

The research uses regression models and panel data related to audit fees, audit hours and corporate governance. The sample of listed firms yields 751 firms-years observations for the period 2010-2018. We study how gender diversity among audit partners, Chief Executive Officers, and Boards of Directors impact on audit fees and audit hours. We focus on the interaction between auditors and management. We find that female audit partners is associated with lower audit fees and audit hours. Next, we find that female audit partner significantly affects the association with the audit efforts in interaction with management, but when the audit partner is male, audit efforts are also determined by the female representation on the Board of Directors.  We contribute to literature on the effects of gender diversity in auditing and corporate governance. We also enrich the concept of audit efforts by including audit hours as well as audit fees. Finally, the research answers the call for empirical study on the effects of gender diversity in management-auditor interaction.

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