scholarly journals Board composition and bank performance in a small island developing state: The case of Curacao

2021 ◽  
pp. 590-600
Author(s):  
Sherma Muller ◽  
Karen Watkins-Fassler
Keyword(s):  
Banking Industry ◽  
Gender Diversity ◽  
Supervisory Board ◽  
Negative Association ◽  
Annual Reports ◽  
Small Island ◽  
Bank Performance ◽  
Board Size ◽  
Interlocking Directorates ◽  
Linear Regressions

Based on agency theory, this paper contributes to the literature by assessing the effects of Supervisory Board size, gender diversity, and multiple directorship on performance within the banking industry of the small island developing state: Curacao. The research made use of the data drawn from annual reports of locally generated banks and its subsidiaries. Results from linear regressions indicate a positive relationship between multiple directorship and bank performance, and a negative association between bank outcomes and both gender diversity and board size. According to these results, it is concluded that the legislation on corporate governance for credit institutions in Curacao should incorporate a maximum number of members on the board, as well as promote interlocking directorates and quotas by gender.

The Role of Shariah Supervisory Board in Legitimizing the Existence of Sudanese Islamic Banks through Social Responsibility Reporting

2021 ◽  
Vol 12 (3) ◽  
pp. 432-440
Author(s):  
Azam Abdelhakeem Khalid Et.al
Keyword(s):  
Social Responsibility ◽  
Information Disclosure ◽  
Cultural Context ◽  
Supervisory Board ◽  
Theoretical Implication ◽  
Annual Reports ◽  
Islamic Banks ◽  
Legitimacy Theory ◽  
Board Size

Purpose -This study empirically investigates the function of Shariah Supervisory Board (SSB) in legitimizing the social and ethical existence of Sudanese banks through the dissemination of data onIslamic social in annual reports. Design/methodology/approach -The paper examines a panel dataset covering the period 2006 – 2015 through the use of disclosure index and content analysis from 150annual reports of Sudanese banks. The role of SSB is expressed from the aspects of Corporate Governance mechanisms (i.e. board size, independency, doctoral qualification, cross- directorship, and the overall effect of SSB mechanisms).The current study employs the multiple regression models by using STATA-13 statistical toolin answering the research questions. Findings -The empirical results indicate that the board size, doctoral qualification, and cross-directorship of the members were positively correlatedwith the disclosure degree of Islamic Corporate Social Responsibility (ICSR) in the annual reports of Sudanese Islamic banks, which is in favour of legitimacy theory. Meanwhile, results indicate that, in contrary to legitimacytheory’s assumptions,the independence of SSB members is found to negatively correlate with the ICSR level of disclosure of the sampled Sudanese banks’ annual reports. Furthermore, the overall effects of SSB mechanisms are found to positivelyimpact the ICSR disclosure level. The study’sfindings add new empirical evidence to support the view that social information disclosure by companies is influenced by country- cultural context within which the company operates. Theoretical implication - In theory, this paper offers an analysis on CSR in Sudan from Islamic point of view. This paper is vital in view that social responsibility is highly regarded by Islam. Therefore, social responsibility must be adopted by all Islamic organizations, particularly the Islamic banks. Originality/value – From the researchers’ perspective, this study is the pioneer thatinvestigates the role of SSB on Sudanese Islamic banks through social responsibility reporting using legitimacy theory.

scholarly journals Corporate Governance and the Earnings Quality of Nigerian Firms

2020 ◽  
Vol 11 (5) ◽  
pp. 161
Author(s):  
Festus Oladipupo Olaoye ◽  
Ademola Adeniran Adewumi
Keyword(s):  
Corporate Governance ◽  
Comprehensive Evaluation ◽  
Earnings Quality ◽  
Gender Diversity ◽  
Annual Reports ◽  
Board Independence ◽  
Manufacturing Companies ◽  
Board Size ◽  
Board Gender Diversity ◽  
The Impact

The focus of the study is to examine the impact of corporate governance on earnings quality in listed firms in Nigeria. The specific objective is to investigate the effect of board size, board independence and board gender diversity on earnings quality. This study was carried out with secondary data retrieved from corporate annual reports of the sampled companies and the data was analysed using panel regression on a sample of 37 quoted manufacturing companies for the period 2011-2017. On the overall, the result reveals that Board size, board independence and board gender diversity used for measuring corporate governance show significant impact on earnings quality. In addition, corporate governance variables appear to be quite sensitive to the measure of earnings quality used. Based on the findings, the study recommends the need for comprehensive evaluation of corporate governance systems of companies. The study recommends the need for more level of board independence. The diversity issue though is gaining momentum in corporate governance literature can still be regarded as not as dominant as compared to others especially as it relates to protecting shareholder rights and framing dividend policy. The significance of the variable nevertheless suggests that companies should thrive to achieve an appropriate diversity mix.

New insights into the nexus between board characteristics and intellectual capital disclosure: the case of the emerging economy of Mauritius

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Oren Mooneeapen ◽  
Subhash Abhayawansa ◽  
Dinesh Ramdhony ◽  
Zainab Atchia
Keyword(s):  
Intellectual Capital ◽  
Stock Exchange ◽  
Gender Diversity ◽  
Annual Reports ◽  
Small Island ◽  
Board Members ◽  
Content Type ◽  
Board Characteristics ◽  
Multiple Directorships ◽  
Board Gender Diversity

PurposeWe investigate the association between intellectual capital disclosure (ICD) and board characteristics in the unique setting of Mauritius, a Small Island Developing State. The uniqueness of the setting stems from the country's corporate governance landscape, where most companies have female directors and a high proportion of directors with multiple directorships, director independence is symbolic and directors come from a close-knit group.Design/methodology/approachWe use 120 firm-year observations from companies listed on the Stock Exchange of Mauritius from 2014 to 2017. All data is hand collected from annual reports using content analysis method. Panel multivariate regression is used to test the hypotheses with relevant controls, including intellectual capital performance.FindingsICD is negatively associated with board independence and positively associated with gender diversity of the board. No association is found between ICD and the size of the board, multiple directorships or the average tenure of the board members.Originality/valueThis is the first study investigating the association of board gender diversity, multiple directorship and tenure of board members with ICD in annual reports. The relationships observed between board characteristics and ICD highlight the context-dependent nature of these relationships. This study also overcomes the correlated omitted variable bias likely to have affected the analyses in previous studies examining the nexus between board characteristics and ICD through its control for intellectual capital performance.

scholarly journals The Relationship Between Board Characteristics and Environmental Disclosure: Evidence from Turkish Listed Companies

2016 ◽  
Vol 11 (2) ◽  
pp. 7-19 ◽  
Author(s):  
Halil Emre Akbas
Keyword(s):  
Audit Committee ◽  
Gender Diversity ◽  
Annual Reports ◽  
Environmental Disclosure ◽  
Board Size ◽  
Independent Variables ◽  
Board Characteristics ◽  
And Gender ◽  
Board Gender Diversity ◽  
The Relationship

Abstract This study primarily aims to analyze the relationship between selected board characteristics and the extent of environmental disclosure in annual reports of Turkish companies, using a sample of 62 non-financial firms listed on the BIST-100 index at the end of 2011. The content analysis is used to measure the extent of environmental disclosure. Four board characteristics, namely board size, board independence, board gender diversity and audit committee independence, are considered as the independent variables that may have an impact on the extent of the environmental disclosures of Turkish companies. According to the results of the regression analysis, only board size has a statistically significant and positive relationship with the extent of environmental disclosure. This result implies that firms with larger boards disclose more environmental information than firms with smaller boards. On the other hand, the rest of the independent variables are found to be unrelated to the extent of environmental disclosure. The low degree of independence and gender diversity on the boards of the sample companies for the time period analyzed in the study could be one possible explanation for this result.

scholarly journals Corporate governance impact on bank performance evidence from Europe

2016 ◽  
Vol 13 (4) ◽  
pp. 583-597 ◽  
Author(s):  
Salma Belhaj ◽  
Cesario Mateus
Keyword(s):  
Corporate Governance ◽  
Boards Of Directors ◽  
Gender Diversity ◽  
European Countries ◽  
Bank Performance ◽  
Board Composition ◽  
Board Size ◽  
Ceo Duality ◽  
European Bank ◽  
The Impact

This paper investigates the impact of corporate governance on European bank performance during the period 2002-2011. Using a sample of 73 banks from 11 European countries, we examine the relationship between corporate governance measures more specifically the board size and composition, the gender diversity and the CEO duality on the European bank performance. During the period 2002-2011, our results show that the board size and the gender diversity have a positive and significant impact on bank performance. Large board of directors with more female members led to better bank performance, whereas, the board composition and the CEO duality have no significant effect in explaining the bank performance for the European countries. During the global financial crisis, our findings show that the board size and the board composition are negatively and significantly correlated to the bank performance. Smaller boards of directors with less number of independent (non-executive) directors have outperformed the ones with larger boards and more independent directors during the crisis. However, the gender diversity and the CEO duality have no significant impact on the European bank performance.

scholarly journals Corporate Governance Practices and Bank Performance: Evidence from Indian Banks

2020 ◽  
Vol 4 (1) ◽  
pp. 33-41
Author(s):  
Brahmaiah Bezawada
Keyword(s):  
Corporate Governance ◽  
Banking Industry ◽  
Negative Impact ◽  
Positive Impact ◽  
Negative Relationship ◽  
Bank Performance ◽  
Tobin’S Q ◽  
Board Size ◽  
Tobin's Q ◽  
Governance Practices

The study examines the corporate governance practices and analyzes the role of the board characteristics (size of the board, the composition of the board, and functioning of the board) on the performance and asset quality of banks. We use a sample of 34 commercial banks consisting of 19 public sector banks and 15 private sector banks from 2009 to 2018 accounting for 93 percent of the total banking industry in India. The study finds that busy directors and the number of meetings have a positive significance on bank performance. The percentage of independent directors and the percentage of busy directors influence a significant negative relationship on the net non-performing assets ratio. The board size and number of meetings are associated negatively with Tobin's Q significantly and the percentage of busy directors is a significantly positive impact on Tobin's Q. The board size has a significantly negative impact on bank performance. The research findings provide some insights into corporate governance to the RBI for considering appropriate policy guidelines on corporate governance in the banking industry in India. The paper adds to the existing literature on corporate governance mechanisms and banking industry performance.  

scholarly journals CEO Compensation and Firm Performance in Emerging Market: Evidence from Indonesia Selected Listed Banks

2020 ◽  
Vol 5 (3) ◽  
pp. 95-109
Author(s):  
Anwar Azazi
Keyword(s):  
Firm Performance ◽  
Firm Value ◽  
Ceo Compensation ◽  
Banking Industry ◽  
Stock Exchange ◽  
Emerging Market ◽  
Sampling Technique ◽  
Annual Reports ◽  
Bank Performance ◽  
Supporting Evidence

Objective – The objective of this study was to investigate empirically the relationship between the compensation of chief executive officers (CEO) and a firm’s performance in the banking industry and to examine if CEO compensation affects bank performance differently between banks with and without prospect. Methodology/Technique – The author uses two measures of performance, total return on assets and Tobin, s Q, and concentrate on total CEO compensation. All data are collected from annual reports of banks listed in Indonesia Stock Exchange for a sample of 23 commercial banks or 167 firm-year observation over the 2009-2018 period utilizing the purposive random sampling technique. CEO compensation and bank performance are then analysed employing pooled regression method. Findings – This study finds supporting evidence for the agency-related problem in the banking industry in Indonesia. It then proves that high CEO compensation does have an inverse effect on bank performance, mainly on firm value. It also provides evidence that the pay-performance also demonstrates different patterns in firms with and without prospect. Novelty – This study uses novel and hand-collected data on CEO compensation in the banking industry and developing econometric evidence regarding CEO pay-performance relating to banks with and without prospect. Type of Paper: Empirical. JEL Classification: G21, G32, M12. Keywords: CEO compensation; Financial performance; Banking industry. Reference to this paper should be made as follows: Azazi, A. 2020. CEO Compensation and Firm Performance in Emerging Market: Evidence from Indonesia Selected Listed Banks, Acc. Fin. Review, 5 (3): 95 – 109. https://doi.org/10.35609/afr.2020.5.3(2)

scholarly journals The Relationship Between Corporate Governance and Integrated Reporting

2021 ◽  
Vol 22 (1) ◽  
pp. 51-79
Author(s):  
Hayyin Agustina Mawardani ◽  
Iman Harymawan
Keyword(s):  
Corporate Governance ◽  
Gender Diversity ◽  
Least Square ◽  
Annual Reports ◽  
Integrated Reporting ◽  
Board Size ◽  
Audit Firm ◽  
Big 4 ◽  
Board Gender Diversity ◽  
The Relationship

Research aims: The objective of this research is to investigate the level of integrated reporting information disclosure in the annual reports of non-financial public listed companies in Indonesia Stock Exchange (IDX) during 2017 to 2018, as well as its relationship with corporate governance that measured by the independent board, the board size, board gender diversity, and types of the external audit firm, whether a corporate audited by Big-4 accounting public firm or non-Big-4 accounting public firm.Design/Methodology/Approach: In this research, the authors utilized a total of 936 observations. The analysis used in this research is using the Ordinary Least Square (OLS) Regression.Research findings: This research showed that corporations with a higher number of independent board members and a bigger board size are disclosing a higher level of integrated reporting information. However, the authors did not find a significant correlation between board gender diversity and audit firm types on the level of Integrated Reporting information disclosure.Theoretical contribution/ Originality: This research contributes to adding to the literature of integrated reporting disclosure theory.Practitioner/Policy implication: Hopefully, the findings can give the policy-maker a comprehensive picture of the relationship between corporate governance and integrated reporting disclosure.Research limitation/Implication: The limitation of this paper is the measurement of Integrated Reporting disclosure that was conducted using content analysis by word count was done manually which may contain subjectivity of the authors.

scholarly journals Covid-19 and performance disclosure: does governance matter?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahmoud Elmarzouky ◽  
Khaldoon Albitar ◽  
Khaled Hussainey
Keyword(s):  
Firm Performance ◽  
Gender Diversity ◽  
Annual Reports ◽  
Board Independence ◽  
Board Size ◽  
Content Type ◽  
Related Information ◽  
And Performance ◽  
And Gender ◽  
The Relationship

Purpose This paper aims to investigate whether Covid-19 related information is associated with a higher level of performance disclosure in the annual reports. Furthermore, it examines the moderating effect of corporate governance on the relationship between Covid-19 and the performance disclosure by using three governance mechanisms: board size, board independence and gender diversity. Design/methodology/approach The authors use quantitative content analysis. The authors applied an automated textual analysis technique to measure the level of Covid-19 information and performance disclosure for the UK Financial Times Stock Exchange all-share non-financial firms. Findings The authors found a significant positive relationship between the Covid-19 disclosure and the firm performance disclosure in the annual reports. The authors also find that both board independence and gender diversity moderate the relationship between the Covid-19 related information and the level of performance disclosure in the annual reports. The authors further run a robustness analysis, which confirms the main results. Practical implications The finding is beneficial for the regulatory setters to better understand whether firms provide generic or meaningful Covid-19 information linked to the firm’s performance. The unique findings of this paper are relevant to regulators, governments, management, shareholders and academics. Originality/value The authors contribute to the literature in a unique and core research area not researched previously. The paper links the Covid-19 disclosure with the firm performance from the corporate narrative perspective. The paper underlines governance factors as a moderating role in this relationship by considering three main mechanisms: board size, board independence and gender diversity.

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