scholarly journals Board Structures and Financial Performance of UK Top Firms: An Investigation of the Moderating Role of the Directors’ Compensation

2015 ◽  
Vol 9 (3) ◽  
pp. 219
Author(s):  
James O. Alabede ◽  
Tony Muff
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Board Composition ◽  
Outside Directors ◽  
Corporate Board ◽  
Financial Compensation ◽  
The Uk ◽  
The Relationship ◽  
Moderating Role

Although several studies have empirically investigated the connection between corporate governance structures and financial performance, evidence from the literature indicates that findings from these studies are inconsistent, hence inconclusive. In this light, some scholars suggest that the inconsistency in the findings could be an indication that there is factor(s) moderating the relationship between the two variables. For this reason, we investigate how corporate board structures relate to financial performance and the effect of directors’ financial compensation on such relationship using samples of the UK top firms. The findings of the study suggest that board composition is positively associated with financial performance (Tobin q). Other than that, the study also indicates that the effect of directors’ financial compensation interacts positively with board composition to influence financial performance. By implication, this finding demonstrates that financial rewards to the outside directors play an inevitable role in influencing the relationship between corporate board and financial performance.

scholarly journals Does the Diversity of Directors Moderates the Relationship between Prudently Governed Corporate Board and Decision to Pay the Dividend?

2018 ◽  
Vol 2 (2) ◽  
pp. 60-64
Author(s):  
Nauman Iqbal Mirza ◽  
Qaiser Ali Malik
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Panel Data Analysis ◽  
Corporate Board ◽  
Earnings Per Share ◽  
The Board Of Directors ◽  
The Relationship ◽  
Moderating Role ◽  
Nationality Diversity

This study evaluates the moderating role of diversity in the board of directors on the relationship between Corporate Governance and dividend decisions of listed companies of Pakistan. This study further explores relationship between conventional accounting variables and dividend decisions. Multifaceted diversity of the board of directors encompassing age, experience and nationality is examined. Panel Data Analysis is used to measure the cause and effect relationship among the variables. General to specific modelling is used by including all the potential regressors. Results depict that Firm Size, Leverage and Experience Diversity of Board negatively effects the Dividend Decisions, while Earnings per Share, CEO Duality, Directors Nationality and Age effects positively. Furthermore Age and Nationality Diversity of directors significantly moderate the relationship between Corporate Governance and Dividend Decisions.

scholarly journals Intellectual Capital and Firm Performance of Listed Firms in Nigeria: Moderating Role of Corporate Governance

2021 ◽  
Vol 10 (1) ◽  
pp. 1-12
Author(s):  
Adesanmi Timothy Adegbayibi
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Intellectual Capital ◽  
Investment Strategy ◽  
Governance Mechanism ◽  
Ex Post ◽  
And Performance ◽  
The Relationship ◽  
Moderating Role

The low performance of Nigerian firms despite investment in intellectual capital is a major concern. While studies have shown that corporate governance practices strengthens the subsisting relationship between investment in intellectual capital and performance in the  developed economies, this moderating effect in Nigeria is yet to be adequately explored as research focus is limited to possible effects of intellectual capital and performance. It is against this background, this study investigated the moderating role of corporate governance on the relationship between intellectual capital and performance of listed non-financial companies in Nigeria. The study adopted ex-post facto research design, and data were drawn from the audited annual reports of fifty (50) listed non-financial firms for a period of 2007 to 2017. Multiple regression techniques were employed to test the relationship among the variables. The results of the study revealed that both intellectual capital and corporate governance drive financial performance as the relationship is found significant in all components. The study concluded that corporate governance moderated the effect of investment in intellectual capital on financial performance. The study recommends that Board of directors should adopt measurable corporate governance mechanism which strengthens and helps in investment strategy that increases and improves performance. Also, there is need to entrench corporate governance as a control strategy and impetus towards attaining organization’s goals.

6. Company Management and Governance

2020 ◽  
pp. 100-120
Author(s):  
Imogen Moore
Keyword(s):  
Corporate Governance ◽  
Institutional Investors ◽  
Executive Directors ◽  
Corporate Governance Code ◽  
Executive Remuneration ◽  
Questions And Answers ◽  
The Uk ◽  
And Control ◽  
The Relationship

The Concentrate Questions and Answers series offers the best preparation for tackling exam questions and coursework. Each book includes typical questions, suggested answers with commentary, illustrative diagrams, guidance on how to develop your answer, suggestions for further reading, and advice on exams and coursework. This chapter explores important issues in company management and corporate governance, starting by examining the role of directors and shareholders (and the relationship between them) and the separation of ‘ownership and control’. Since the early 1990s, the governance of listed companies has been dominated by self-regulatory codes (currently the UK Corporate Governance Code). This chapter examines how these codes operate and considers key themes in corporate governance, including the role of non-executive directors and auditors; the position of institutional investors; and executive remuneration.

scholarly journals Corporate Governance Application, Audit Quality and Audit Report Lag: The Moderating Role of Law Compliance

2019 ◽  
Vol 10 (4) ◽  
pp. 164
Author(s):  
Yenny Dwi Handayani ◽  
Ewing Yuvisa Ibrani
Keyword(s):  
Corporate Governance ◽  
Regression Analysis ◽  
Audit Quality ◽  
Manufacturing Companies ◽  
Audit Report ◽  
The Relationship ◽  
Moderating Role

This study aims to examine the effect of corporate governance application and audit quality on audit report lag. Special attention is paid to investigate the moderating role of law compliance in the relationships. 180 manufacturing companies are observed during the three years of observation (2013-2015). Data are analyzed using moderated regression analysis (MRA). The results show that corporate governance application and audit quality have no effect on audit report lag. While law compliance moderates the relationship between corporate governance application and audit report lag.

Does Corporate Philanthropy Increase Firm Value? The Moderating Role of Corporate Governance

2015 ◽  
Vol 57 (4) ◽  
pp. 599-635 ◽  
Author(s):  
Weichieh Su ◽  
Steve Sauerwald
Keyword(s):  
Corporate Governance ◽  
Firm Value ◽  
Corporate Philanthropy ◽  
Agency Cost ◽  
Outside Directors ◽  
Financial Benefit ◽  
Ceo Tenure ◽  
Corporate Governance Mechanisms ◽  
The Relationship ◽  
Moderating Role

The link between corporate philanthropy and firm value has been controversial. On one hand, corporate philanthropy is often criticized as an agency cost because it may serve narrow managerial self-interests. On the other hand, corporate philanthropy may enhance firm value because it improves the relationships between firms and their stakeholders. In this study, we argue that this controversy is contingent upon whether corporate governance mechanisms can stimulate the financial benefit of corporate philanthropy. Based on a sample of U.S. firms from 1996 to 2003, we find that CEO long-term pay positively moderates the relationship between corporate philanthropy and firm value while multiboard outside directors negatively moderate this relationship. Contrary to our expectations, we find that the relationship between corporate philanthropy and firm value enhances as CEO tenure increases. Our findings show that corporate governance plays an important moderating role in the relationship between corporate philanthropy and firm value.

Risk management and firm performance: the moderating role of supplier integration

2018 ◽  
Vol 118 (7) ◽  
pp. 1327-1344 ◽  
Author(s):  
Yongyi Shou ◽  
Wenjin Hu ◽  
Mingu Kang ◽  
Ying Li ◽  
Young Won Park
Keyword(s):  
Risk Management ◽  
Financial Performance ◽  
Operational Efficiency ◽  
Operational Performance ◽  
Content Type ◽  
Supplier Integration ◽  
Performance Effects ◽  
The Relationship ◽  
Moderating Role

PurposeThe purpose of this paper is to scrutinize the performance effects of supply chain risk management (SCRM). Besides financial performance, two aspects of operational performance are examined: operational efficiency and flexibility. Moreover, the authors explore the moderating role of supplier integration in the relationship between SCRM and operational performance.Design/methodology/approachA survey-based methodology was adopted. Based on the data from an international survey, this study applied the structural equation modeling and latent moderated structural equations approach to test the hypotheses.FindingsThe results indicate that SCRM positively influences both operational efficiency and flexibility, and has an indirect effect on financial performance. In addition, supplier integration enhances the impact of SCRM on operational flexibility, but does not moderate the relationship between SCRM and operational efficiency.Originality/valueThis study extends the existing literature by providing a comprehensive analysis of the performance effects of SCRM. It also provides managerial insights on both risk management and supplier integration.

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.

scholarly journals The moderating role of board gender diversity between power-based corporate governance and tax aggressiveness

2021 ◽  
Vol 10 (2) ◽  
pp. 104-147
Author(s):  
Farzan Yahya ◽  
Abdul Manan ◽  
Muhammad Wasim Jan Khan ◽  
Muhammad Sadiq Hashmi
Keyword(s):  
Corporate Governance ◽  
Gender Diversity ◽  
Tax Avoidance ◽  
Ceo Power ◽  
Tax Aggressiveness ◽  
Concentrated Ownership ◽  
Board Gender Diversity ◽  
The Relationship ◽  
Moderating Role

The purpose of this study is to explore the moderating effect of board gender diversity on the relationship between power-based corporate governance (CEO power and concentrated ownership) and tax aggressiveness. The sample of this study is based on 2,071 firm-year observations over the period 2010 to 2018. We employed two-step GMM estimations to account for endogeneity and other statistical biases. The results show that CEO power increases the likelihood of tax aggressiveness while the link between the large controlling shareholders and tax-avoidance activities is not statistically significant. Lastly, the findings suggest that powerful CEOs manipulate female directors to promote tax aggressiveness behavior. 

scholarly journals Sustainable Business Practices and Firm’s Financial Performance in Islamic Banking: Under the Moderating Role of Islamic Corporate Governance

2019 ◽  
Vol 11 (23) ◽  
pp. 6606 ◽  
Author(s):  
Amin Jan ◽  
Maran Marimuthu ◽  
Rohail Hassan ◽  
Mehreen
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Islamic Banking ◽  
Managerial Ownership ◽  
Business Practices ◽  
Islamic Banks ◽  
Sustainable Business ◽  
Shariah Governance ◽  
Moderating Role

This paper examines the moderating role of Islamic corporate governance on the link between sustainable business practices and the firm’s financial performance. A post-crisis period sustainability data for the decade of 2008–2017 was collected by the study. For data collection, this study used the weighted content method. The Generalized Method of Moments (GMM) statistical test was used for empirical testing. The results of the study found that the link between sustainable business practices with the firm’s financial performance measured from the shareholders’ and the management’s perspective is positive, while the subjected link measured from the market perspective was found to be insignificant. This implies that the market stakeholders of the Islamic banks are reluctant for their bank’s spending on sustainable business practices. Interestingly, the insignificant link between sustainable business practices and market performance became significant with the moderating role of Shariah governance and managerial ownership. It shows that the moderating role of Shariah governance and managerial ownership is giving confidence to market stakeholders of Islamic banks for receiving a higher financial return through sustainable business practices initiatives. These results may provide insights for several policymakers of the Islamic banking industry about integrating vital sustainability practices in their business models and about the balanced moderating role of Islamic corporate governance in the link between sustainable business practice and the firm’s financial performance. It provides a roadmap to the Islamic banking industry for efficient management of sustainability practices from an Islamic perspective and subsequently improvement of financial performance through it.

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