scholarly journals Successor CEO Functional And Educational Backgrounds: Influence Of Predecessor Characteristics And Performance Antecedents

2016 ◽  
Vol 32 (4) ◽  
pp. 1179-1198 ◽  
Author(s):  
Eahab Elsaid ◽  
Bradley W. Benson ◽  
Dan L. Worrell
Keyword(s):  
Board Of Directors ◽  
Institutional Investor ◽  
Firm Characteristics ◽  
Educational Backgrounds ◽  
Prior Performance ◽  
The Board Of Directors ◽  
And Performance ◽  
Ceo Characteristics ◽  
Selection Of

This study seeks to examine if boards consider CEO educational and functional background when choosing a new CEO. It also examines which factors determine whether the board of directors will seek an incoming CEO with a different educational and/or functional background from that of the current CEO. Using a sample of 832 successions between 1992 and 2009, we found that the outgoing CEO characteristics and the firm characteristics influence the selection of the incoming CEO functional backgrounds. We found an increase in the likelihood of firms hiring incoming CEOs with the same functional backgrounds as the outgoing CEOs. Incoming CEOs with functional backgrounds in engineering/manufacturing are more likely to be hired by research-oriented firms.Incoming CEOs with functional backgrounds in accounting/finance are more likely to be hired by poorly performing firms. We also find that firms are more likely to change the functional background of the successor relative to the predecessor when there has been poor prior performance and the firm has higher institutional investor ownership.

Pengaruh Diversitas Dewan Komisaris dan Dewan Direksi Terhadap Kinerja Perusahaan (Studi Empiris: Perusahaan Manufaktur Di BEI Periode 2014-2018)

2021 ◽  
Vol 16 (1) ◽  
pp. 68-79
Author(s):  
LILIS GUSTIANA ◽  
Yeasy Darmayanti ◽  
Meihendri Meihendri
Keyword(s):  
Hypothesis Testing ◽  
Board Of Directors ◽  
Sampling Method ◽  
Stock Exchange ◽  
Educational Background ◽  
Company Performance ◽  
Manufacturing Companies ◽  
Educational Backgrounds ◽  
Age Diversity ◽  
The Board Of Directors

This study aims to determine the effect of board of commissioners and board of directors diversity on company performance in manufacturing companies listed on the Indonesia Stock Excharge for the  2014-2018 period.  By using purposive sampling method, obtained 45 samples of manufacturing companies listed on the Indonesia Stock Exchange. Based on the results of hypothesis testing, it was found that the age diversity of the board of commissioners had no significant effect on company performance; the diversity of board of  commissioners educational  background had no significant effect on company performance, the diversity of board of commissioners tenure had a significant effect on company performance. While the diversity of board of directors age had a significant effect on company performance, diversity the of educational backgrounds of the board of directors does not have a significant effect on company performance, and the diversity of tenure of the board of directors does not have a significant effect on company performance.  Keywords : Company Performance, Age, Education, Tenure, Board Of Commissioners Board Of Directors.

scholarly journals Dissemination of The Fit and Proper Test Regarding The Appointment of The Board of Directors of The Tangerang Regency Regional Company (PERUMDAM)

2021 ◽  
Vol 1 (2) ◽  
pp. 42-46
Author(s):  
Mas Iman Kusnandar ◽  
Refi Pratiwi ◽  
Muhammad Abduh
Keyword(s):  
Board Of Directors ◽  
The Board Of Directors ◽  
Feasibility Test ◽  
Selection Of

This socialization activity aims to introduce the Fit and Proper Test to participants of the prospective Board of Directors of Perumdam Tangerang Regency before the Feasibility and Fit Test is held. Feasibility Test and Proper Test to maintain the independence of the company. The method of implementing activities in the acceptance of prospective candidates for the Board of Directors consists of several stages, namely starting from administrative selection, selection of fit and proper test, interview test. This socialization activity must be carried out every time a Feasibility and Fit Test will be carried out because there is still a risk regarding a lack of understanding of the technicalities of the Fit and Proper Test. With the fit and proper test, it produces leaders who are intellectually competent as well as cognitive and emotional.      

scholarly journals Pengaruh Corporate Governance Terhadap Pemilihan Auditor Eksternal (Studi Empiris pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia Tahun 2015-2017)

2019 ◽  
Vol 7 (1) ◽  
pp. 1453
Author(s):  
Yelsa Yulia Efwita ◽  
Erinos NR
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Audit Committee ◽  
Stock Exchange ◽  
Secondary Data ◽  
Manufacturing Companies ◽  
External Auditors ◽  
The Board Of Directors ◽  
Big Four ◽  
Selection Of

The purpose of the research is to know the corporate governance that is proxied by the board of commissioners, the effectiveness of the audit committee and the board of directors on the selection of external auditors. This study uses secondary data from the company's annual report for 2015-2017. The sampling method in this study used purposive sampling with a sample of 67 manufacturing companies listed on the Indonesia Stock Exchange in 2015-217. The analysis used in this study is logistic regression analysis. The results showed that the board of commissioners, the effectiveness of the audit committee had a significant positive effect on the selection of external auditors, while the board of directors did not influence the selection of quality external auditors.Keywords: auditor selection, big four, board of commissioners, board of directors

scholarly journals Earnings management and CEO characteristics in Portuguese firms

2011 ◽  
Vol 9 (1) ◽  
pp. 86-95
Author(s):  
Helena Isidro ◽  
Liliana Gonçalves
Keyword(s):  
Earnings Management ◽  
Information Asymmetry ◽  
Board Of Directors ◽  
Management Practices ◽  
Financial Information ◽  
Superior Knowledge ◽  
The Board Of Directors ◽  
Ceo Characteristics

The separation between control and ownership in the modern firm creates information asymmetry between managers and shareholders. The superior knowledge about the firm’s operations stimulates managers to manage financial information. We investigate which managers characteristics are more likely to positively influence earnings management practices. Specifically, we study whether the CEO’s age, education, expected tenure and duality of roles affects earnings management for a sample of listed Portuguese firms for the fiscal years 2005 to 2009. Results indicate that older CEOs, CEOs with management or finance background, and CEOs that also hold the position of Chairman of the board of directors are more prone to manage earnings.

scholarly journals Board, governance and firm performance: Are financial intermediaries different?

2011 ◽  
Vol 8 (2, Special issue) ◽  
pp. 60-68 ◽  
Author(s):  
Marina Brogi
Keyword(s):  
Firm Performance ◽  
Board Of Directors ◽  
Financial Intermediaries ◽  
Board Governance ◽  
Return On Assets ◽  
Board Size ◽  
Financial Firms ◽  
The Board Of Directors ◽  
And Performance ◽  
The Relationship

Drawing on Agency Theory this article investigates the relationship between board size and European firms’ performance. The focus is on the implicit differences between financial and non-financial firms. In particular the paper addresses the following questions: does board size influence firm performance? Is financial intermediaries’ corporate governance different from that of non-financial companies? The study analyses the governance of the largest listed European companies which make up the Eurotop 100 index. Companies come from 12 different countries and are subject to different regulatory and self-discipline codes. Referring to the Eurotop index the focus is on the relation between the overall size of the board of directors and the level of performance measured as Tobin’s Q and Return on Assets. Diverging results emerge depending on the typology of the firm. In particular, results suggest that for non-financial companies large boards negatively influence firm performance, whereas financial intermediaries seem to be different because of the non-relation between their board size and performance.

scholarly journals Remuneration, risk and performance in Italian companies: An empirical analysis on systems of remuneration in the board of Italian listed companies

2011 ◽  
Vol 9 (1) ◽  
pp. 294-304
Author(s):  
Marco Artiaco
Keyword(s):  
Board Of Directors ◽  
Listed Companies ◽  
Company Performance ◽  
Global Regulators ◽  
Academic Literature ◽  
The Board Of Directors ◽  
Recent Financial Crisis ◽  
And Performance ◽  
The Impact ◽  
The Relationship

The recent financial crisis highlighted the issue of Board of Directors compensation, which had been analyzed by many authors. In fact, there is a vast academic literature on the impact of the compensation of Board of Directors on corporations characterized by the separation of ownership from control. The compensation of Board of Directors has been a subject of debate, also by global regulators like OECD, FSB, Central Bank of Italy and European Commission and many are pushing for an international uniform regulation. This paper aims to investigate the relationship between the board of Directors compensation, the company performance and the risks decided by the Board. The article analyses a sample of Italian listed companies in order to test wether or not the Board of Directors compensation structure could turn into a performance incentive, given the risk taken.

Director attributes and institutional investor choices: evidence in Latin America

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Carlos Pombo ◽  
Maria Camila De La Hoz
Keyword(s):  
Latin America ◽  
Board Of Directors ◽  
Institutional Investors ◽  
Emerging Market ◽  
Institutional Ownership ◽  
Institutional Investor ◽  
Professional Experience ◽  
Content Type ◽  
Board Capital ◽  
The Board Of Directors

PurposeThis paper examines how the board of directors' attributes in terms of educational and professional backgrounds –that is board capital-, and demographics influence institutional ownership across listed companies in Latin America.Design/methodology/approachBased on unique hand-collected information of directors' educational and professional attributes across 427 firms in Latin America, the authors analyze the effects of directors' educational attainment, professional experience and demographic diversification on institutional investors' holdings.FindingsResults show that grey investor ownership favors directors with graduate studies and diverse boards regarding gender and nationality. Independent investors value the directors' professional experience like former founders of a firm. Grey investors are more concerned with firm corporate governance mechanisms, consistent with the agency view. In contrast, independent institutional investors focus on business opportunities following the board of directors' resource-based view.Research limitations/implicationsThis study shows that board capital becomes a key determinant for institutional ownership in emerging markets.Originality/valueThis study extends previous literature on institutional investor preferences by providing empirical evidence that firm board capital becomes a collective asset that is central for institutional investors' investment choices for an emerging market case.

scholarly journals Risk Governance and Performance: Evidence From Eurozone’s Large Banks

2020 ◽  
Vol 11 (5) ◽  
pp. 28
Author(s):  
Paolo Agnese ◽  
Paolo Capuano
Keyword(s):  
Board Of Directors ◽  
Risk Taking ◽  
Econometric Models ◽  
Bank Risk ◽  
Risk Governance ◽  
The Board Of Directors ◽  
Risk Committee ◽  
And Performance ◽  
The Relationship ◽  
Systemically Important Banks

In this paper, by means of econometric models, we investigate the relationship between risk governance and performance of the Eurozone’s Global Systemically Important Banks (G-SIBs), over the period 2014-2018. The results of the quantitative analysis show that the choice to appoint a Chief Risk Officer (CRO) can be useful to shrink the bank risk-taking. Furthermore, we find that the importance attributed by the bank to the CRO – in terms of membership of the board of directors and in terms of remuneration – is positively correlated to both profitability and bank risk-taking. In addition, the analysis shows that the activity carried out by the Risk committee can be helpful to break down the risks.

scholarly journals Factors Influence Internal Audit Effectiveness

2017 ◽  
Vol 12 (10) ◽  
pp. 143 ◽  
Author(s):  
Dhiaa Shamki ◽  
Thuraiya Amur Alhajri
Keyword(s):  
Public Sector ◽  
Board Of Directors ◽  
Social Insurance ◽  
Descriptive Analysis ◽  
Internal Audit ◽  
Sultanate Of Oman ◽  
The Board Of Directors ◽  
And Performance ◽  
Audit Effectiveness ◽  
Audit Standards

This study aims to examine to what extent internal audit effectiveness could be influenced by selected factors namely internal audit scope, internal auditor’s experience and senior management's response in the Omani public sector. Employing questionnaire including four sections with 48 questions for responds of 45 managers and 163 employees in Public Authority for Social Insurance (PASI) in the Sultanate of Oman, descriptive analysis, correlation analysis, and multiple regressions were employed to examine the relationships among the study’s variables. The study found that a significant relationship between internal audit effectiveness and its scope and auditors’ experience in the employees’ sample while they were insignificant in the managers’ sample. Finally, it is found that there is insignificant relationship between internal audit effectiveness and senior management's response. Based on the findings, an awareness has to be maximized on employees to better cooperate with internal audit staff to improve the applications of internal audit standards. Managers are well interested in organization’s activities and performance depending on the internal audit findings and observations. The board of directors has to take in its considerations the reasons of these insignificant results if the reasons are not related to the small size of the managers’ sample. The study’s contribution is to provide evidence regarding the influence of three mentioned factors on the internal audit effectiveness in public sector.

scholarly journals Editorial: Cross-disciplinary research of board of directors practices

2020 ◽  
Vol 16 (1) ◽  
pp. 4-6
Author(s):  
Montserrat Manzaneque-Lizano
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
The Board Of Directors ◽  
Key Driver ◽  
And Performance

The articles of this issue are nice examples of studies that intend to broaden our understanding of the role of the board of directors as a key driver of corporate governance and performance.

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