scholarly journals Overcoming Competitive Inertia: Board Composition And Strategic Persistence

2011 ◽  
Vol 16 (1) ◽  
pp. 111
Author(s):  
William Kline ◽  
Todd Wadhams
Keyword(s):  
Board Of Directors ◽  
Positive Relationship ◽  
Organizational Strategy ◽  
Board Composition ◽  
Window Dressing ◽  
The Board Of Directors ◽  
Strategic Persistence

This study examined whether the board of directors had an impact on the trajectory of organizational strategy, where the composition of the board might influence the likelihood of pursuing or halting a persistent, unchanging strategy. Our data suggest that a board that exhibited moderate agency-orientation displayed a more positive relationship to strategic persistence than either a neutral board or a strong agency-focused board. This finding may indicate that a neutral board, may benefit from the cooperation required to reach agreement and that a moderately agency-oriented board may not be able to effectively reap the benefits of either control or collaboration and may only serve as window dressing in its purported function of representing shareholder interests.

scholarly journals Determinants of board composition: Evidence from Tunisian companies

2006 ◽  
Vol 3 (2) ◽  
pp. 165-173
Author(s):  
Sonda Marrakchi Chtourou ◽  
Soumaya Ayedi ◽  
Yosra Makni Fourati
Keyword(s):  
Board Of Directors ◽  
Firm Size ◽  
Boards Of Directors ◽  
Positive Relationship ◽  
Board Composition ◽  
Board Independence ◽  
Debt Ratio ◽  
Organizational Complexity ◽  
The Board Of Directors ◽  
Board Representation

This study focuses on the composition of boards of directors in the Tunisian context. We model the composition of the board of directors as a function of alternative governance mechanisms, some board characteristics and other control variables. On a sample of 97 Tunisian firms, we find evidence that the proportion of outsiders on the board of directors is positively associated with large block, institutional and overseas ownerships, and board size. We document that the CEO duality is associated with a decrease in the board independence. We fail to find evidence that increased debt ratio to total assets is inversely associated with the outside board representation. While we predict a positive relationship between the board independence and the firm size, the organizational complexity and the quotation status; our results generally do not support this conjecture

Informal Strategic Networks and the Board of Directors

1993 ◽  
Vol 18 (1) ◽  
pp. 23-36 ◽  
Author(s):  
Odd Jarl Borch ◽  
Morten Huse
Keyword(s):  
Board Of Directors ◽  
Small Firms ◽  
Field Survey ◽  
Board Composition ◽  
Strategic Networks ◽  
The Board Of Directors ◽  
Taking Care

This paper contributes to the understanding of small firms directorates in developing informal strategic networks. These networks are of great importance to small firms, and directorates may play a central role in creating, maintaining, and influencing external contacts of importance to the firm. In a field survey of 104 dual leadership joint stock hotels in Norway and Sweden, associations between board composition, board-management relations, and director incentives, and the boards’ networking involvement have been explored. The study revealed the importance of the directors’ incentives in taking care of the networking functions of contacting and lobbying.

scholarly journals The Urge to Merge: The Role of Governance Structures in Mergers and Acquisitions

1970 ◽  
Vol 13 (2) ◽  
pp. 151-166
Author(s):  
Catherine Daily ◽  
Dan Dalton
Keyword(s):  
Decision Making ◽  
Mergers And Acquisitions ◽  
Board Of Directors ◽  
Board Composition ◽  
Outside Directors ◽  
Target Firm ◽  
Target Firms ◽  
The Board Of Directors ◽  
The Relationship

The 1990s have witnessed merger and acquisition activity which rivals that of the 1980s "merger mania." As firms continue to consolidate either within industries or across industries it is appropriate to investigate those aspects of a target firm which might attract a bidder. The board of directors, a central decision-making body in the corporation, may provide insights into this process. This study investigates the relationship between board composition and size and the incidence of a firm being targeted for a merger or acquisition. Results of a logistic regression analysis of a matched set of target firms and firms not targeted for merger or acquisition reveal that target firms have higher proportions of independent outside directors and more total numbers of directors. Moreover, we find that target firms have greater exposure to institutional investors.

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.

scholarly journals The Effect of Board Composition on Conservatism: Empirical Evidence from Tehran Stock Exchange (TSE)

2012 ◽  
Vol 3 (1) ◽  
pp. 17-24
Author(s):  
Keramat Ollah Heydari ◽  
Saber Samadi . ◽  
Hamid Asadzadeh . ◽  
Ahmad Kazemi Margavi . ◽  
Hemad Nazari .
Keyword(s):  
Data Analysis ◽  
Stock Returns ◽  
Board Of Directors ◽  
Capital Market ◽  
Stock Exchange ◽  
Financial Statements ◽  
Bad News ◽  
Good News ◽  
Board Composition ◽  
The Board Of Directors

Conservative is misinterpreted as capturing accountants 'tendency to require higher degree of verification for recognizing good news than bad news in financial statements. Under this interpretation of conservatism, earnings reflect bad news more quickly than good news. By using firms' stock returns to measure news, the asymmetric time lineless of recognizing good news and bad news can be examined as a measure of conservative behavior and as them an in question of this research in Irani and capital market. This research examines effect of composition of the board of directors of the companies listed in Tehran Stock Exchange (TSE) on conservative. Data analysis for seven years (2003-2010) shows that companies with a more in dependent board are more conservative. It means that these companies report bad news more timeliness than good news. The results of the research results confirm and reinforce previous researches.

scholarly journals Effect of Corporate Governance Rules on Voluntary Disclosure in Jordanian Corporations Listed with the Amman Stock Exchange (ASE): (An Empirical Study)

2019 ◽  
Vol 14 (1) ◽  
pp. 154-168
Author(s):  
Al-Nimer Munther
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Voluntary Disclosure ◽  
Audit Committee ◽  
Positive Relationship ◽  
Stock Exchange ◽  
Family Ownership ◽  
Significant Positive Relationship ◽  
Amman Stock Exchange ◽  
The Board Of Directors

AbstractThis paper aims to examine the impact of corporate governance (CG) rules using several variables—size of the board of directors, size of the audit committee, family ownership ratio, and their impact on the level of the voluntary disclosure of companies listed with Amman Stock Exchange (ASE). The study was conducted based on the annual reports of the first market that include 55 firms. Content analysis was applied to collect the required data from several sectors (financial, insurance, services, and industrial sectors) from 2016 to 2017.The results indicate a negative association among family ownership ratio, size of the audit committee, and voluntary disclosure level. However, the study shows that the size of the board of directors has a significant positive relationship with the level of voluntary disclosure. Furthermore, the results show that CG rules (size of the board of directors, size of the audit committee, and family ownership ratio) have a significant positive relationship with the voluntary disclosure level of the companies listed with ASE. In the borderline market environment, the study contributes to a theoretical understanding of the corporate governance of voluntary disclosure and the relationship between corporate governance mechanisms and voluntary disclosure. The outcomes provide empirical support for the theoretical notion that effective corporate governance plays an important role in increasing the extent of voluntary disclosure.

The Impact of Board Composition on Corporate Strategy in the Arab Region Context

2019 ◽  
pp. 132-155
Author(s):  
Ahlam Naser Abdel Rahman
Keyword(s):  
Stock Market ◽  
Board Of Directors ◽  
Corporate Strategy ◽  
Conflicts Of Interest ◽  
Data Gathering ◽  
Board Composition ◽  
Monitoring And Control ◽  
Strategic Decisions ◽  
The Board Of Directors ◽  
The Impact

The board of directors plays an essential role in ensuring good corporate governance in any companies or institutes regardless of the size or nature of work. The purpose of this chapter is to examine the impact of board composition on corporate strategy and its contribution to strategic decisions and management monitoring and control of the corporate strategy in Arab organization by examining a case from Jordan. The study adopted analytical descriptive (quantitative) approach; a questionnaire was used for data gathering, and SPSS software was used for data analysis. The questionnaires were distributed randomly to workers in selected companies and banks that are registered in Amman Stock Market, and around 100 responses of members of board of directors (BOD) and other workers were collected and analyzed. The results confirmed the impact of the board on its contribution to the decision process, on the monitoring and controlling strategy, and on its contribution to advising management in Amman Stock Market. The study revealed that the board is primarily responsible for overseeing board performance and achieving a proper return for shareholders, while preventing conflicts of interest and balancing competing demands on the company. The study recommended the need for implementation plans and instructions in order to identify deviations.

scholarly journals Which Demographic Characteristics of Directors Affected the Company Risk Level?

2017 ◽  
Vol 9 (4) ◽  
pp. 119 ◽  
Author(s):  
Andrea Lippi ◽  
Maria Luisa Di Battista
Keyword(s):  
Decision Making ◽  
Board Of Directors ◽  
Educational Level ◽  
Equity Capital ◽  
Demographic Characteristics ◽  
Risk Level ◽  
Board Composition ◽  
Work Experiences ◽  
The Board Of Directors ◽  
The Relationship

The board of directors is a group of people whose decision making can affect company life. In particular, the decision to have more liabilities than equity capital, makes a firm more aggressive than others in the market. The aim of this paper is to test the relationship between some demographic characteristics of directors and the firm’s propensity to risk. In particular our analysis consider gender, age of the directors, independence and educational level. Moreover work experiences are considered. The results obtained should be considered by regulators and firm statutes as guidelines for future board composition.

scholarly journals Ownership Structure and Dividends Policy: Emerging Market Evidence

2018 ◽  
Vol 11 (6) ◽  
pp. 65
Author(s):  
Ahmad N. Obaidat
Keyword(s):  
Board Of Directors ◽  
Ownership Structure ◽  
Positive Relationship ◽  
Stock Exchange ◽  
Emerging Market ◽  
Negative Relationship ◽  
Ownership Concentration ◽  
Financial Firms ◽  
Amman Stock Exchange ◽  
The Board Of Directors

This study investigated the effect of ownership structure on the dividend policy of the financial firms listed on Amman Stock Exchange (ASE) for the period 2014-2016. The results indicated a positive relationship between dividend and institutional, managerial, and foreign ownership, and negative relationship between dividend and ownership concentration. The result also indicated that a large portion of the ownership is in the hand of the instructions and the board of directors, and the ownership is not highly concentrated.

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