scholarly journals CHARACTERISTICS OF BOARD OF DIRECTORS AND PERFORMANCE OF GEM LISTED COMPANIES FROM THE PERSPECTIVE OF VENTURE CAPITAL PARTICIPATION

2019 ◽  
Vol 22 (3) ◽  
pp. 311-350
Author(s):  
Yuan Yang ◽  
Yi Pan ◽  
Binku Yang ◽  
Wenli Huang
Keyword(s):  
Venture Capital ◽  
Board Of Directors ◽  
Stock Exchange ◽  
Chief Executive ◽  
Listed Companies ◽  
Independent Directors ◽  
Company Performance ◽  
Ceo Duality ◽  
Board Characteristics ◽  
The Impact

Using the difference-in-differences (DID) model and taking the sample of companies listed from 2009 to 2014 on the Growth Enterprises Market (GEM) of the Shenzhen Stock Exchange in China, this paper studies the impact of Venture Capital (VC) participation on board characteristics, which is measured by the chief executive officer (CEO) duality, the scale of the board of directors and the proportion of independent directors, and it also studies how the board characteristics influence the company performance. The findings are as follows: VC-backed GEM listed companies are more inclined to choose the mode of CEO duality and to have a larger board of directors and a higher proportion of independent directors, all of which are conducive to improving company performance.

The impact of board characteristics on corporate investment decisions: an empirical study

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ben Kwame Agyei-Mensah
Keyword(s):  
Regression Analysis ◽  
Board Of Directors ◽  
Investment Decisions ◽  
Corporate Investment ◽  
Independent Directors ◽  
Investment Efficiency ◽  
Content Type ◽  
Board Characteristics ◽  
The Board Of Directors ◽  
The Impact

Purpose The purpose of this study is to investigate the influence of board characteristics on firms’ investment decisions. Design Methodology Approach The study used data sourced from annual reports of firms listed on the Ghana Stock Exchange from 2014 to 2018. Descriptive analysis was performed to provide the background statistics of the variables examined. This was followed by a regression analysis which forms the main data analysis. Findings The multiple regression analysis results indicated that the proportion of independent directors and financial experts on the board are negatively related to firm investment. These findings imply that independent directors and financial experts on the board can help firms reduce overinvestment and improve investment efficiency. Originality Value The extant literature shows that the board of directors are an effective mechanism to reduce agency problems in firm decisions and operating performance. However, there has been little research on the role of the board of directors in corporate investment policy.

scholarly journals Research on the Influence of the Characteristics of the Board of Directors of Listed Companies on the Growth of the Company

2021 ◽  
Vol 292 ◽  
pp. 02049
Author(s):  
Gao Ruirui
Keyword(s):  
Board Of Directors ◽  
Listed Company ◽  
Listed Companies ◽  
Independent Directors ◽  
Stock Exchanges ◽  
Positive Correlation ◽  
Board Characteristics ◽  
The Board Of Directors ◽  
Dynamic Perspective ◽  
A Share

The board characteristics are an important factor affecting the growth of the company. This paper selects the data of A-share listed companies in the Shanghai and Shenzhen Stock Exchanges during the five-year period from 2014 to 2019, and analyzes whether the board characteristics will affect the growth of the company from a dynamic perspective. The research found that: ① the scale of the board of a listed company has an inverted U-shaped relationship with the company’s growth; ② the proportion of independent directors has a positive correlation with the company’s growth; ③ the director’s salary has a positive correlation with the company’s growth.

scholarly journals ANALISIS PENGARUH FRAUD PENTAGON THEORY TERHADAP FRAUDULENT FINANCIAL REPORTING PADA PERUSAHAAN PERBANKAN YANG TERDAFTAR DI BURSA EFEK INDONESIA PERIODE 2014 – 2019

2021 ◽  
Vol 17 (1) ◽  
pp. 22-47
Author(s):  
Whisnu Widyatama ◽  
Loh Wenny Setiawati
Keyword(s):  
Board Of Directors ◽  
Financial Reporting ◽  
Stock Exchange ◽  
Financial Statements ◽  
Independent Directors ◽  
Fraudulent Financial Reporting ◽  
Ceo Duality ◽  
Economic Decisions ◽  
The World ◽  
Fraudulent Financial Statements

Fraudulent financial statements or fraudulent financial reporting are actions that cause a person or group of people to obtain certain benefits at the expense of other parties. Fraudulent financial statements themselves are the biggest cause of loss in the world.  Therefore, financial statements that are not presented reliably and are not honestly disclosed can mislead users in making economic decisions. This study aims to analyze the effect of pentagon theory fraud proxied by five variables, that are CEO duality, change of board of directors, number of independent commissioners, level of leverage, and change of auditors to fraudulent financial reporting proxied by Beneish M-Score in banking companies listed on the Indonesia Stock Exchange (IDX) for the 2014-2019 period. This study uses 205 observational data using logistic regression analysis. The results of this research indicate that CEO duality and the change of board of directors have a significant effect on fraudulent financial reporting, while the number of independent directors, the level of leverage, and the change of auditors do not affect fraudulent financial reporting.

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.

scholarly journals Effect of Ownership Structure on Company Performance: Evidence from Emerging Market

2020 ◽  
Vol 1 (1) ◽  
pp. 27-36
Author(s):  
Waleed Alahdal ◽  
Mohammed H. Alsamhi ◽  
Mohammed S. Barakat
Keyword(s):  
Ownership Structure ◽  
Stock Exchange ◽  
Emerging Market ◽  
Empirical Studies ◽  
Listed Companies ◽  
Research Area ◽  
Company Performance ◽  
The Board Of Directors ◽  
Structure Index ◽  
The Impact

This paper uses panel data to examine the impact of ownership structure index on the financial performance of 73 listed companies of the Indian national stock exchange from 2009 to 2016. To measure the Panel Regression in this study, the FEM model was used. The different dimensions of the ownership structure index involve ten items used as the Independent variable of this study. Two measures have been adopted to estimate the firm performance that is; ROA and ROE. In contrast, the control variables are firm size and leverage. This study's empirical evidence shows that the ownership structure index has significant impact on a firm's performance measured by ROA and ROE of Indian Nifty 100 listed companies. Findings of this study support previous empirical studies performed and add some value in the research area of finance that explores different aspects of the board of directors' index and ownership structure index in Indian market by using Nifty 100 as an example.

scholarly journals Corporate Governance Mechanisms and Firms’ Performance: An Empirical Analysis of Firms Listed on the Saudi Stock Exchange

2016 ◽  
Vol 6 (2) ◽  
pp. 101 ◽  
Author(s):  
Hamad Yuosef Alhumoudi
Keyword(s):  
Firm Performance ◽  
Stock Exchange ◽  
Positive Influence ◽  
Board Size ◽  
Cross Sectional ◽  
Ceo Duality ◽  
Ownership Structures ◽  
Board Characteristics ◽  
Corporate Governance Mechanisms ◽  
The Impact

This study examines whether implementation of internal CG mechanisms have affected the performance of non-financial firms listed on the Saudi stock exchange “Tadawul”, since the implementation of Saudi CG code. A cross-sectional regression analysis is employed on a sample of 118 non-financial Saudi firms in 2014, to test the hypotheses set out in the study. Board characteristics assessed include, board size, board composition, board meetings and CEO duality. Ownership structures include managerial and concentrated ownership. The study's empirical findings show board size and CEO duality, are amongst those board characteristics with a positive influence on firm performance. In the case of the second internal mechanisms of CG ownership structures, the findings suggest only managerial ownership positively affects performance. The study findings conclude that CG structures differ in every country, as each has its own social and regulations situation. The study contributes to existing literature about the CG in Saudi Arabia by reviewing the impact of CG practices eight years after the CGC. It enhances understanding among practitioners of CG, and explains how it influences firm performance in Saudi.

scholarly journals Are All Independent Directors the Same? Evidence from Italian Listed Companies

2018 ◽  
Vol 13 (9) ◽  
pp. 78
Author(s):  
Paolo Tenuta ◽  
Domenico Rocco Cambrea ◽  
Debora Fazzari
Keyword(s):  
Firm Performance ◽  
Significant Relationship ◽  
Stock Exchange ◽  
Listed Companies ◽  
Fixed Effect Model ◽  
Independent Directors ◽  
Listed Firms ◽  
Female Directors ◽  
Effect Model ◽  
The Impact

The purpose of this study is to investigate the impact of independent directors on the performance of Italian listed firms on the Milan Stock Exchange during the period 2006-2015. After applying a Fixed Effect Model, the empirical findings suggest that the composition of the board may affect corporate performances and, more specifically, a significant relationship emerges between the presence of independent directors within the Board and company results. Specifically, independent directors and independent female directors positively affect firm performance. Diversely, independent busy directors, those with hold more than three directorship in other boards, do not affect performance.

scholarly journals The Impact of board characteristics on Firm Performance: Evidence from Nonfinancial Listed Companies in Kuwaiti Stock Exchange

2012 ◽  
Vol 2 (2) ◽  
pp. 310 ◽  
Author(s):  
Ebrahim Mohammed Al-Matari ◽  
Abdullah Kaid Al-Swidi ◽  
Faudziah Hanim Fadzil ◽  
Yahya Ali Al-Matari
Keyword(s):  
Firm Performance ◽  
Audit Committee ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Control Variable ◽  
Discussion Section ◽  
Ceo Duality ◽  
Board Characteristics ◽  
Positive Effects ◽  
The Impact

The core aim of this study is to examine the relationship between board characteristics and the firm performance of non-financial listed Kuwaiti firms. To achieve the objectives of the study, the data were collected from a sample of 136 companies for the financial year 2009. Variables such as CEO duality, COE tenure, audit committee size, board size and board composition were considered as predictors of the firm performance that was measured employing the return on assets (ROA). By contrast, the effects of CEO tenure and leverage on firm performance were found to be negative and significant at the chosen level of significance. To test the hypotheses of the study, multiple linear regression analysis using SPSS 18.0 was utilized. Using the firm size and leverage as a control variable, the findings of the study support the positive effects of CEO duality and audit committee size on ROA. Other findings of the study were discussed in the discussion section and some other future study directions were provided.

Voluntary decisions on audit committee composition and expertise and the influence of board of director characteristics: Further evidence from Singapore

2005 ◽  
Vol 1 (2) ◽  
pp. 49-65
Author(s):  
Mitchell Van der Zahn ◽  
Inderpal Singh
Keyword(s):  
Board Of Directors ◽  
Audit Committee ◽  
Stock Exchange ◽  
Chief Executive ◽  
Audit Committees ◽  
Independent Directors ◽  
Collective Knowledge ◽  
Board Of Director ◽  
The Board Of Directors ◽  
Director Characteristics

Our study empirically examines the association between four board of director characteristics and two audit committee dimensions. The audit committee dimensions are the level to which Singapore publicly listed firms voluntarily (1) include more independent directors on their audit committee beyond the mandatory minimum majority of independent directors and (2) improve the collective knowledge and experience of this standing committee by including suitably qualified independent directors. Our analysis is based on hand collected data from 430 domestically incorporated firms listed on the Singapore Stock Exchange (SGX) at the end of 2003. We find Singapore publicly traded firms are likely to voluntarily include more independent directors on their audit committees beyond the mandated minimum majority when (1) the size of the board of directors increases, (2) firms segregate the positions of Chief Executive Officer (CEO) and Chairperson of the board, and (3) the proportion of independent directors serving on the board of directors increases. The percentage of independent directors with directorate interlocks appears not to influence a firm’s decision to voluntarily include more independent directors on their audit committees. We also find a statistically significant association between (1) duality (negative) and (2) percentage of independent directors with directorate interlocks (positive) and propensity for Singapore firms to voluntarily increase the collective knowledge and experience of the audit committee’s independent directors. Contrary to expectations board size and the proportion of independent directors are not significant determinants.

Investigating the impact of board characteristics on money laundering

2020 ◽  
Vol 23 (4) ◽  
pp. 751-767
Author(s):  
Shaban Mohammadi ◽  
Hadi Saeidi ◽  
Nader Naghshbandi
Keyword(s):  
Money Laundering ◽  
Financial Stability ◽  
Stock Exchange ◽  
Screening Method ◽  
Financial System ◽  
Chief Executive ◽  
Statistical Population ◽  
Content Type ◽  
Board Characteristics ◽  
The Impact

Purpose The purpose of this study is to examine the effect of board characteristics on money laundering in Iranian listed companies. Design/methodology/approach This was a descriptive-correlational study, and in terms of purpose, it was an applied research. The statistical population of this study was all companies listed in Tehran Stock Exchange during the years 2012-2018. A sample of 150 companies was selected by screening method. Data analysis and hypothesis testing were performed using logistic regression and Eviews 10. Findings The results indicated that the board bonus and CEO duality (chief executive officer duality) had a significant effect on money laundering. CEO gender also had a significant effect on money laundering. Originality/value Sound management of risks related to money laundering by the board of directors is associated with stability, soundness and overall health of a country's financial system, which enables the integrity of the international financial system by meeting the Basel Committee goals, including strengthening the regulations, monitoring and improving current procedures, promoting financial stability and maintaining and enhancing a good corporate reputation; however, banks and other financial institutions are exposed to more serious risks, especially the reputation risk, operational risk, etc., if management does not play an effective role in the fight against money laundering. If management considers efficient and risk-driven policies and procedures in the fight against money laundering, then many problems and losses as well as many costs, including failure to collect receivables and to bring legal proceedings, can be prevented.

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