scholarly journals Diversity in the board of directors and good governance practices

2020 ◽  
Vol 9 (2) ◽  
pp. 97
Author(s):  
Álvaro Melón-Izco ◽  
Francisco J. Ruiz-Cabestre ◽  
M. Carmen Ruiz-Olalla
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Boards Of Directors ◽  
Good Governance ◽  
Gender Diversity ◽  
Positive Influence ◽  
Board Diversity ◽  
Corporate Governance Mechanisms ◽  
Governance Practices ◽  
The Board Of Directors

Motivated by the debate on the adequacy of the composition of boards of directors, we examine the effect that board diversity has on corporate governance performance in Spain, analysing gender diversity, diversity of director types and tenure diversity. The findings reveal that diverse boards of directors have a positive influence on good governance practices,improving the efficiency of corporate governance mechanisms. These results could be interesting for practitioners and regulators.

Women representation on boards: a South African perspective

2016 ◽  
Vol 24 (2) ◽  
pp. 211-225 ◽  
Author(s):  
Gizelle Willows ◽  
Megan van der Linde
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Board Of Directors ◽  
Boards Of Directors ◽  
Critical Mass ◽  
Gender Diversity ◽  
Current Status ◽  
Company Performance ◽  
Content Type ◽  
The Board Of Directors

Purpose By looking at both theoretical and empirical findings, this study aims to investigate whether gender diversity results in improved corporate governance and financial performance for companies. Design/methodology/approach An analysis of the board composition of the Johannesburg Securities Exchange Top 40 companies as at 30 June 2013 and a comparison of the financial performance of the company were conducted. Findings Female directors were found to make up, on average, 18.78 per cent of the board of directors, with the majority of these women being in non-executive positions. Women representation appears to influence company performance positively when using accounting-based measures of performance (such as return on assets and return on equity), but negatively when using market-based measures (such as Tobin’s Q). The critical mass concept is also assessed and is found to have a positive effect. Originality/value These findings are of relevance to the boards of directors adhering to corporate governance requirements by challenging the role of women on the board of directors, as well as that of investors and those in practice, to understand the current status of women representation.

Board Composition and Governance Dilemma at Magna International

2014 ◽  
Vol 3 (2) ◽  
pp. 207-220
Author(s):  
Eduardo Schiehll ◽  
Gokhan Turgut ◽  
Elise Demers
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Board Composition ◽  
Board Structure ◽  
Minority Shareholders ◽  
Board Diversity ◽  
Publicly Traded Companies ◽  
Governance Practices ◽  
The Board Of Directors ◽  
Governance Roles

The primary subject matter of this case study is board composition and the governance roles of the board of directors in publicly traded companies. It is designed to supplement a text chapter or other material on the monitoring and advisory roles of directors and how board structure and composition impact these roles. The case is also designed to allow students to identify and assess governance issues related to firm ownership structures, family-owned or controlled companies, ethical conduct of the board of directors and conflicts between majority and minority shareholders. The case is sufficiently detailed to allow discussing the multidimensional aspects of board composition (or board diversity), including gender, ethnicity, expertise, experience and prestige. It is structured as a chronological description of the controversy generated by a proposed related party transaction (a buyout transaction) designed to dismantle a dual-share capital structure that allowed the Stronach family to control the company (Magna International Inc.) with just a fraction of its equity. The case can serve as the basis for both short case assignments and class discussions. It is appropriate for undergraduate and graduate courses in strategic management, leadership, corporate governance and financial accounting. The topic is relevant and current, as it can be related to the ongoing reforms of Canadian corporate governance practices for controlling shareholders and related party transactions.

DO OWNERSHIP CONCENTRATION AND THE BOARD OF DIRECTORS AFFECT EXPORTS?

2021 ◽  
Vol 22 (3) ◽  
Author(s):  
VITOR F. M. B. DIAS ◽  
MICHELE A. CUNHA ◽  
FERNANDA M. PEIXOTO ◽  
DUTERVAL JESUKA
Keyword(s):  
Corporate Governance ◽  
Good Governance ◽  
Optimal Level ◽  
Board Composition ◽  
Exporting Firms ◽  
Listed Firms ◽  
Corporate Governance Mechanisms ◽  
Dependent Variables ◽  
Governance Practices ◽  
The Board Of Directors

ABSTRACT Purpose: To investigate whether the shareholder concentration and the board composition influence the export of Brazilian listed firms from 2010 to 2017. Originality/value: The study contributes to the literature on exports and corporate governance by highlighting that companies with good governance practices, measured by the board composition and ownership/control structure, might increase their exports. This research can serve as a guide for companies to structure their boards in order to positively influence exports and improve performance. In addition, the study raises the question of what would be the “optimal level” of firms’ shareholding concentration in order to improve the decision-making process involved in choosing to expand borders through export. Design/methodology/approach: The study performed logistic regression (logit model) and regression with the censored dependent variable (tobit model). Propensity to export and intensity of export were used as dependent variables. The logit regressions involved a sample of 307 exporting and non-exporting companies, and the tobit regressions involved a sample of 61 exporting firms. Findings: We found a positive relationship between board independence and exports, that is, the greater presence of independent members on the board, the higher the export level of firms. We also found that there is a non-monotonic relationship between shareholder concentration and level of exports. In summary, the study suggests that some corporate governance mechanisms may act as antecedents for firms’ export practices.

scholarly journals Diversity of the Board of Directors and Financial Performance of the Firms

2021 ◽  
Vol 13 (21) ◽  
pp. 11687
Author(s):  
Felipe Arenas-Torres ◽  
Miguel Bustamante-Ubilla ◽  
Roberto Campos-Troncoso
Keyword(s):  
Stock Market ◽  
Financial Performance ◽  
Board Of Directors ◽  
Boards Of Directors ◽  
Gender Diversity ◽  
Gender Quotas ◽  
Governance Practices ◽  
The Board Of Directors ◽  
And Gender ◽  
Nationality Diversity

The diversity of the board of directors continues to be a matter of concern for investors, regulators, and the general public. In this sense, the purpose of the research presented was to identify whether there is a positive and significant impact between the diverse variables of the board of directors and the financial performance of the firms. In this context, the study’s objective was to determine if the diversity in the composition of the boards of directors has a positive and significant impact on the financial performance of the companies listed in the Chilean stock market. The study considered a sample of 1106 reports on social responsibility and sustainable development between the 2015–2020 period and their respective returns. The research was descriptive-correlational, which determined the incidence of gender, nationality, and age diversity in the financial performance of the firms. The results show, in general, a low degree of gender and nationality diversity in Chilean boards. However, a positive and significant impact is observed in the commercial sector, nationality diversity, and the construction and gender diversity axis. In this regard, the study allows confirming the heterogeneity of results by linking the variables of diversity and financial performance and the importance of conducting sufficiently disaggregated studies to understand the relationship between both types of variables. Finally, this study updates the diversity levels of the board of directors for the Chilean stock market and establishes challenges for the regulator in terms of gender quotas and good corporate governance practices.

scholarly journals Board diversity and R & D investment

2016 ◽  
Vol 54 (3) ◽  
Author(s):  
Jeanelle Midavaine ◽  
Wilfred Dolfsma ◽  
Rick Aalbers
Keyword(s):  
Board Of Directors ◽  
Boards Of Directors ◽  
Design Methodology ◽  
Gender Diversity ◽  
Board Diversity ◽  
Type Design ◽  
The Board Of Directors ◽  
And Gender ◽  
D Investment ◽  
Practical Implications

Purpose The purpose of this paper is to investigate the effect of board diversity on the extent to which firms invest in R&D. Design/methodology/approach Based on data collected about the composition of the board of directors, we determine statistically if the characteristics of directors predicts the extent to which firms invest more in R&D. Findings We find, unexpectedly, that tenure diversity lead firms to invest less in R&D, while education diversity and gender diversity makes firms invest more. Gender diversity positively moderates education diversity as well, strengthening the effect found. Research limitations/implications The sample of firms we include in our paper is restricted due to the overwhelming difficulty in collecting data about the composition of boards of directors, and their backgrounds. Practical implications The paper offers insights into how boards of directors might need to be composed in order to try have firms invest more in R&D. Originality/value We include a much larger set of diversity measures than any previously published study, and provide counter-intuitive findings that have implications for practice, society, as well as theory about team composition.

scholarly journals Corporate governance and earnings management in New Zealand

2013 ◽  
Vol 10 (2) ◽  
pp. 40-55
Author(s):  
Dyna Seng ◽  
Justin Findlay
Keyword(s):  
Corporate Governance ◽  
New Zealand ◽  
Earnings Management ◽  
Board Of Directors ◽  
Boards Of Directors ◽  
Chief Executive ◽  
Audit Committees ◽  
Governance Mechanisms ◽  
Corporate Governance Mechanisms ◽  
The Board Of Directors

This paper examines the relation between corporate governance mechanisms and earnings management. Using data collected from New Zealand listed companies for the financial year ending in 2005, the results show that the size of the board of directors is significantly positively associated with earnings management. This suggests that larger boards seem to be ineffective in their oversight duties relative to smaller boards. On the other hand, the independence of the board of directors, the independent role of the board chair and chief executive officer, and the independence of audit committees are not significantly associated with earnings management. Thus, these three corporate governance mechanisms are ineffective at monitoring the discretionary choices of management. The lack of effective corporate governance in New Zealand, particularly with regard to boards of directors, is mainly due to the lack of “experience and skills required to oversee the scale, complexity, and characteristics of finance operations” (Ministry of Economic Development, 2009, p.8)

scholarly journals The adjustments of corporate governance mechanisms in Canadian banks following regulatory changes

2008 ◽  
Vol 6 (2) ◽  
pp. 443-455
Author(s):  
Michael Maingot ◽  
Daniel Zéghal
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Boards Of Directors ◽  
New Governance ◽  
Governance Mechanisms ◽  
Regulatory Changes ◽  
Corporate Governance Mechanisms ◽  
The Board Of Directors ◽  
Regulatory Bodies ◽  
Domestic Banks

The recent scandals on corporate governance have forced the regulatory bodies to issue new corporate governance mechanisms. These new governance mechanisms include banks. The purpose of this study was to observe changes to the boards of directors, to the committees reporting to the board, to the board of directors‟ independence and adoption to certain charters and checklists in Canadian banks for the periods covering the years 2002-2004. Our sample covers the eight largest domestic banks in Canada. Results indicate a reduction in board members and in the number of committees reporting to the board. However, it increased supervision by increasing the number of board committee meetings. Most of the banks in our sample have separated the role of Chairman and CEO, thereby increasing the independence of the board. There was also an improvement in the adoption of a new charter for the board of directors.

scholarly journals Board of directors, performance and firm value in Brazilian listed state-owned enterprises

2020 ◽  
Vol 18 (2) ◽  
pp. 1
Author(s):  
Carolina Coletta ◽  
Roberto Arruda de Souza Lima
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Board Of Directors ◽  
Firm Value ◽  
Board Structure ◽  
Agency Conflicts ◽  
Governance Practices ◽  
The Board Of Directors ◽  
Structure Index ◽  
Corporate Governance Practice

<p>This paper investigates the relationship between the board of directors' structure and firm performance and the value of Brazilian listed state-owned enterprises (SOEs), from 2002 to 2017, totaling 327 observations using an unbalanced panel data with fixed and random effects regressions. The evolution of corporate governance practices adopted by the boards is presented for this period, using a Board Structure Index (BSI). The results indicate a significant positive relation between the board's structure and firm performance, measured by ROE and ROA, and firm value, measured by Tobin's <em>q</em>. These findings are consistent with corporate governance literature, in the sense that the board's role of monitoring management reduces agency conflicts. The results also show an improvement in adopting corporate governance practice on Brazilian SOEs' boards over the last decade.</p>

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.

scholarly journals A comparative analysis of the board evaluation in European entities: Italy vs UK

2016 ◽  
Vol 14 (1) ◽  
pp. 578-587
Author(s):  
Donatella Busso ◽  
Alain Devalle ◽  
Fabio Rizzato
Keyword(s):  
Corporate Governance ◽  
Comparative Analysis ◽  
Board Of Directors ◽  
Boards Of Directors ◽  
Size Composition ◽  
The Self ◽  
Self Assessment ◽  
Corporate Governance Codes ◽  
The Board Of Directors ◽  
The Uk

Board evaluation is an evaluation of the performance of the board of directors and its committees, as well as their size, composition and operation. The aim of this paper is to investigate how entities do the evaluation of the performance of the board and how they disclose the self-assessment. We analysed the largest forty constituents of both Italy’s FTSE MIB index and the UK’s FTSE 100 index. The results show that although Corporate Governance Codes’ requirements are similar, implementation of these requirements and the related disclosure continue to show significant differences. The UK companies seem to have a stronger “forward-looking” approach compared to Italian companies. Disclosure provided by Italian companies is too often not enough to enable stakeholder understanding of the process and its outcome. This research contributes to the literature by providing results on the evaluation of boards of directors: regulators, practitioners and researchers must deal with this topic in order to strengthen the rules of corporate governance.

Sign in / Sign up

Export Citation Format

Share Document