scholarly journals Board size and composition: The main tradeoffs

2006 ◽  
Vol 2 (1) ◽  
pp. 48-54 ◽  
Author(s):  
Alexander N. Kostyuk ◽  
Victoria Koverga ◽  
Helen V. Kostyuk
Keyword(s):  
Transition Economy ◽  
Negative Impact ◽  
Strong Dependence ◽  
Supervisory Board ◽  
Board Members ◽  
Corporate Ownership ◽  
Board Size ◽  
Controlling Shareholder ◽  
Second Stage ◽  
Supervisory Boards

The purpose of this research is to find the factors influencing size and composition of the supervisory boards in a transition economy with application to Ukraine. This paper is based on the research of 50 largest companies in Ukraine. Period of research is 1998-2005. Methodology of research is based on observations (the first stage) and questionnaires (the second stage). The research found that there is strong dependence of the size of supervisory boards in Ukraine on the degree of concentration of corporate ownership and origin of the controlling shareholder. Size of the company has a very conditional influence on the board size. Professional skills diversification as a fact that could contribute to the efficient work of the supervisory board is still very weakly developed in Ukraine. Particularly this concerns such expertise as auditing, finance, executive compensation. Experience of the supervisory board members in Ukraine is quite poor. Only 24 percent of members of supervisory boards have a five and more year experience as supervisory board members. the supervisory board members had the strong links with the company in the past as executives. Thus, about 74 per cent of members of the supervisory boards in Ukraine worked as executives of the same company at least during a year for the last ten years. This makes the negative impact on the independence of the members of the supervisory boards.

scholarly journals Corporate board composition in an emerging market

2007 ◽  
Vol 3 (3) ◽  
pp. 33-38
Author(s):  
Alexander N. Kostyuk
Keyword(s):  
Transition Economy ◽  
Negative Impact ◽  
Emerging Market ◽  
Supervisory Board ◽  
Board Members ◽  
Board Composition ◽  
Corporate Board ◽  
Second Stage ◽  
The Past ◽  
Supervisory Boards

The purpose of this research is to find the factors influencing composition of the supervisory boards in a transition economy with application to Ukraine. This paper is based on the research of 50 largest companies in Ukraine. Period of research is 1998-2005. Methodology of research is based on observations (the first stage) and questionnaires (the second stage). Experience of the supervisory board members in Ukraine is quite poor. Only 24 per cent of members of supervisory boards have a five and more year experience as supervisory board members. The supervisory board members had the strong links with the company in the past as executives. Thus, about 74 per cent of members of the supervisory boards in Ukraine worked as executives of the same company at least during a year for the last ten years. This makes the negative impact on the independence of the members of the supervisory boards. Value of this paper is that it explains an influence of a broad range of factors on the board composition in transition economy.

Does gender diversity in supervisory boards affect gender diversity in management boards in Germany? An empirical analysis

2021 ◽  
pp. 239700222199714
Author(s):  
Dennis Fleischer
Keyword(s):  
Fixed Effects ◽  
Structural Equation ◽  
Gender Diversity ◽  
Supervisory Board ◽  
Board Members ◽  
Governance System ◽  
Management Board ◽  
Supervisory Boards ◽  
Gender Quota ◽  
The Impact

Social aspects like gender diversity in the boardroom are becoming increasingly relevant and are a popular topic of public debate in the context of gender equality in business. However, there is little clarity about the potential spill-over effects of gender diversity. Both theory and empirical results have led to ambiguous conclusions with respect to the effect of gender diversity in the supervisory board on gender diversity in the management board. In addition, it is not clear whether the German gender quota legislation positively affects this relationship. This study analyses whether gender diversity in the supervisory board supports the gender diversity of the management board, and whether this relationship is affected by the gender quota legislation, focusing on the unique case of Germany. To cope with endogeneity concerns, this study employs a cross-lagged panel model with fixed effects using maximum likelihood structural equation modelling. The results of the analysis of the impact of the number of female supervisory board members on the number of female management board members do not support the view of positive spill-over effects of gender diversity in the environment of the German two-tier corporate governance system. Furthermore, this study finds no evidence of an effect of the German gender quota on this relationship. JEL Codes G38, M12, M14, M51

scholarly journals Related-party disclosures in the two-tier board system in China: Influences of ownership structure and board composition

2008 ◽  
Vol 4 (1) ◽  
pp. 37-49 ◽  
Author(s):  
Yuan George Shan ◽  
Dennis W. Taylor
Keyword(s):  
Ownership Structure ◽  
Supervisory Board ◽  
Listed Companies ◽  
Annual Reports ◽  
Board Members ◽  
Corporate Board ◽  
High Concentration ◽  
Corporate Context ◽  
Supervisory Boards ◽  
Board System

This study concerns related-party disclosures by listed companies in China, in a corporate context of a high concentration of government-linked ownership, a two-tier board system, and the engagement of directors, key managers and major shareholders in direct and indirect transactions and business relationships with their company. Using content analysis of annual reports of listed companies in China over 5-years from 2001 to 2005, results show that the comprehensiveness of related-party disclosures is positively affected by companies’ domestic ownership concentration and the proportion of independent directors on the corporate board. But the proportion of supervisory board members with professional knowledge and experience is, unexpectedly, found to have a significant inverse relationship with the extent of related-party disclosure. Reasons peculiar to the context in China are proffered, particularly the likelihood of internal censorship of the more professionally qualified members of supervisory boards.

How Do Politicians Capture a State? Evidence from State-Owned Enterprises

2020 ◽  
pp. 088832542095348
Author(s):  
Katarzyna Szarzec ◽  
Bartosz Totleben ◽  
Dawid Piątek
Keyword(s):  
Corporate Governance ◽  
Interest Group ◽  
Ownership Structure ◽  
Supervisory Board ◽  
Board Members ◽  
Private Companies ◽  
Government Administration ◽  
State Capture ◽  
Supervisory Boards ◽  
The Government

This article discusses political state capture in the context of party patronage. Evidence of this is delivered from state-owned enterprises (SOEs) and the rotations of members of their management and supervisory boards. In this case, it is deemed that an interest group, which consists of politicians and representatives in the government administration, decides about the appointment and dismissal of board members through the corporate governance of SOEs and ownership policy of the state. We analyzed the scale and intensity of rotations in Poland of about twelve thousand joint-stock companies in the years 2001–2017 according to their ownership structure. We show that changes of managers and supervisory board members in state-owned enterprises are higher than in private companies and are related to political elections. We estimated that on average three months after a new government is formed, a peak of changes in the composition of boards is observed, though they are earlier in the case of a supervisory board. We conclude that this can be regarded as an example of state capture by politicians.

scholarly journals Impact of supervisory board members’ professional background on banks’ risk-taking

2015 ◽  
Vol 13 (1) ◽  
pp. 1210-1227 ◽  
Author(s):  
Dennis Froneberg ◽  
Florian Kiesel ◽  
Dirk Schiereck
Keyword(s):  
Risk Taking ◽  
Supervisory Board ◽  
Bank Risk ◽  
Board Members ◽  
Bank Performance ◽  
Risk Return ◽  
Financial Expertise ◽  
Supervisory Boards ◽  
Regional Banks ◽  
The Impact

This paper examines the impact of financial expertise of supervisory board members on the risk-return profile of 200 German regional cooperative banks during the period 2004–2009. The results show that with more financial expertise the bank performance does not improve, but bank risk increases. These findings induce concerns that mandating financial expertise on boards is not necessarily beneficial for the risk-return profile of regional banks. We suggest that overconfidence of entrepreneurs in the supervisory boards leads to this unfavorable development since they represent the largest fraction of professionals within the sample.

scholarly journals Ownership and control in Germany: do cross-shareholdings reflect bank control on large companies?

2009 ◽  
Vol 6 (4) ◽  
pp. 54-77 ◽  
Author(s):  
Alberto Onetti ◽  
Alessia Pisoni
Keyword(s):  
Corporate Governance ◽  
Supervisory Board ◽  
Personal Relationships ◽  
Insurance Companies ◽  
Board Members ◽  
Industrial Firms ◽  
Supervisory Boards ◽  
And Control ◽  
Cross Shareholdings

This paper aims to analyse the relationships (equity and non-equity) between German banks and German firms, which are the peculiarities of the German institutional system of corporate governance. Scholars agree on the fact that cross shareholdings among banks, insurance companies and institutional firms (Charkham 1994, Baums 1993), combined with long term shareholdings (Gerschenkron 1989), and close relationships and interlocking between board members of different companies (Tilly 1969, Hopt and Prigge 1998), are the main features of bank-firms relationships in Germany. Specifically the main purpose of the paper is to demonstrate, for the panel of German companies investigated, that bank-firm relationship relies not only on patrimonial linkages but also on personal relationships. In the light of the sweeping changes that this model has undergone since the late 1990s, an empirical study has been carried out regarding relationships (patrimonial and personal) among the first 100 German companies with the highest turnover and the 6 main German financial institutions, showing the evolving trend along a period of 8 years and comparing the collected data with previous research. Therefore, in order to try to measure the extent of the banks role in Corporate Governance and to evaluate in a deeper sense the effective influence they have on the industry management, we carried out two different analyses. The first, takes into consideration the equity relationships between banks/insurances and the German industrial firms, the second analyses the number of seats held by the same banks in the correspondent supervisory board. In particular, in our opinion, the analysis of the composition of the supervisory boards can help to outline the personal relationships above mentioned. Therefore is understood, that we consider the presence of bank’s representatives in others than banks’ supervisory boards as signal of banks’ opportunity to exert power and influence

Geschäftsleiterbinnenhaftung in Großvereinen

2021 ◽  
Author(s):  
Anton Leopold Nußbaum
Keyword(s):  
Supervisory Board ◽  
Economic Importance ◽  
Board Members ◽  
Legal Practice ◽  
Corporate Board ◽  
Corporation Law ◽  
Common Interests ◽  
Practical Analysis ◽  
Stock Corporation

The internal liability of managers of large associations is becoming increasingly relevant in the context of their growing economic importance, especially considering the stricter compliance obligations. The book develops de lege lata with the help of corporate principles a liability regime for board members and association managers with and without corporate board positions that is in line with common interests. At the same time, the author uses a practical analysis of various association structures to indicate the problems that exist in the realization of liability and recommends de lege ferenda for a mandatory supervisory board for large associations based on the model of stock corporation law. The work addresses equally academics and legal practice as well as the associations themselves.

scholarly journals Corporate Governance And Its Effect On Firm Performance In An Emerging Economy

2022 ◽  
Vol 2 (3) ◽  
pp. 281-291
Author(s):  
Langa Esmael KAREM ◽  
Hawkar Anwer HAMAD ◽  
Hakar Abubakir BAYZ ◽  
Naji Afrasyaw FATAH ◽  
Diary Jalal ALI ◽  
...  
Keyword(s):  
Financial Performance ◽  
Business Processes ◽  
Board Members ◽  
Board Composition ◽  
Return On Assets ◽  
Board Size ◽  
Cross Sectional ◽  
The Impact ◽  
The Relationship ◽  
Board Ownership

Having a board of directors is very important to ensure the smooth running of business processes and have an impact on the company's financial performance. This study to determine the impact of board characteristics namely board size, board ownership and board composition on the financial performance of organizations as measured by Return on Assets. The study employed a descriptive-explanatory research design based on a cross-sectional approach. Correlation and regression analyses were conducted to determine the depth and extent of the relationship between the variables. The study revealed a positive and significant association between the board size and financial performance on an average of 9 board members. Board composition revealed that having more external directors had no effect on the financial performance, it neither increased it nor decreased it, leading to the rejection of the hypothesis. On the other hand, board ownership was found to be beneficial in terms of having directors as owners of the business, corroborating the Stakeholder Theory. The studies showed that there was still a need to select board members with caution striking a balance between the number of directors as well as their composition to ensure that the organization reaps maximum benefits from the board.

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