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.

Women on Board and Firm Performance

2019 ◽  
pp. 312-335
Author(s):  
Haya Lori ◽  
Allam Mohammed Hamdan ◽  
Adel Sarea ◽  
Thaira Mohammed Al Shirawi
Keyword(s):  
Board Of Directors ◽  
Listed Companies ◽  
Annual Reports ◽  
Company Performance ◽  
Tobin’S Q ◽  
Tobin's Q ◽  
Measurement Models ◽  
Accounting Measurement ◽  
The Board Of Directors ◽  
The Relationship

This chapter aims to measure the relationship between the number of women in the board of directors and company performance in the listed companies in Bahrain Bourse. The study uses panel data where the data is collected from the investor's guide in Bahrain Bourse and the annual reports from the listed companies from 2013 to 2017. The sample of the study includes 39 listed companies; the independent variable is the number of women in the board of directors in each company, which was measured using dummy variables; and the dependent variable is the company performance, which was measured using two measurement models driven from previous studies: accounting measurement (return on assets) and market measurement (Tobin's Q). The study also utilizes three control variables in order to help measuring the relationship between the number of women in the board of directors and company performance. The study concludes that there is a positive correlation between the number of women in the board of directors and the company's ROA and Tobin's Q.

scholarly journals Pengaruh Dewan Direksi, Komisaris Non Independen, dan Kepemilikan Manajerial pada Kinerja Perusahaan Manufaktur di BEI

2020 ◽  
Vol 30 (8) ◽  
pp. 1985
Author(s):  
I Made Dany Yadnyapawita ◽  
Ayu Aryista Dewi
Keyword(s):  
Data Analysis ◽  
Linear Regression ◽  
Board Of Directors ◽  
Stock Exchange ◽  
Managerial Ownership ◽  
Company Performance ◽  
Manufacturing Companies ◽  
Food And Beverage ◽  
The Board Of Directors ◽  
The Relationship

The purpose of this study was to determine the effect of the Board of Directors, Non Independent Commissioners, and Managerial Ownership to Manufacturing Company Performance on the Indonesia Stock Exchange. This research was conducted at food and beverage sub-sector manufacturing companies listed on the Indonesia Stock Exchange in the period 2014-2018. Data analysis uses multiple linear regression to determine the relationship between more than two variables. Based on the results of the study stated the Board of Directors statistically has no significant effect to company performance (ROA). Non independent commissioners statistically has no effect to company performance (ROA), Managerial ownership has no statistically significant effect to company performance (ROA). Keywords: Board Of Directors; Independent Commissioners; Managerial Ownership; Company Performance.

scholarly journals The effectiveness of the internal corporate governance mechanism and the ownership of the government and agencies

Accounting ◽  
2021 ◽  
Vol 7 (7) ◽  
pp. 1655-1660
Author(s):  
Khaled Salmen Aljaaidi
Keyword(s):  
Board Of Directors ◽  
Negative Impact ◽  
Governance Mechanism ◽  
Board Size ◽  
Internal Governance Mechanisms ◽  
The Board Of Directors ◽  
The Government ◽  
Relationship Of ◽  
The Impact ◽  
The Relationship

This paper examines the impact of the government and its agencies’ ownership on the effectiveness of one the main internal governance mechanisms, namely; board of directors, for a sample of 140 energy and petrochemical Saudi listed firms over 2012-2019. The Saudi Arabia provides an interesting context due to the domination of government-linked corporations’ ownership. This setting arranges for the impact of such ownership on the board of directors’ monitoring and advisory roles. The board of directors’ effectiveness is measured as an interaction term of the board size and meetings of the board of directors. The study finds that government-linked energy and petrochemical corporations’ ownerships are inversely related to the board of directors’ effectiveness. This result is sensitive to the measurement of the board of directors’ effectiveness as each variable consisting of the board of directors’ effectiveness was examined individually. The study also finds that government-linked corporations’ ownership had a strong negative impact on the board size. In contrast, the proposed model does not provide any evidence supporting the relationship of the government-linked corporations’ ownerships with board meetings. Overall, the evidence supports the substitution hypothesis on the relationship of government-linked corporations and board of directors’ effectiveness.

scholarly journals Impacts of Capital Structure and Dividend Policy on the Financial Performance of Listed Companies on Vietnamese Stocks Market

2021 ◽  
Author(s):  
Loan T. Vu ◽  
Anh T. H. Vu ◽  
Thao T. P. Nguyen
Keyword(s):  
Dividend Policy ◽  
Negative Impact ◽  
Positive Impact ◽  
Stock Exchange ◽  
Generalized Least Squares ◽  
Listed Companies ◽  
Dividend Yield ◽  
And Performance ◽  
The Impact ◽  
The Relationship

This study is taken to describe the relationship between the levels of debt, dividend policy and the performance of firms listed in Vietnamese stock market. The dividend policy is proxied by the dividend yield while firm’s performance is measured by ROE, ROA, and P/E. The total number of observations is 552, collecting from 92 listed companies on Hochiminh Stock Exchange during 2012 and 2019. The analysis results from generalized least squares (GLS) models report that the choice of firm’s performance proxy affects the relationship between firm’s performance and leverage as well as dividend policy. While leverage has positive impact on ROE and ROA, it has negative impact on P/E. In contrast, dividend yield ratio is negatively correlated with ROA and P/E but positively correlated with ROE. However, the impact of debt levels on firm’s performance is independent with the choice of leverage proxy. The findings of this research are expected to provide better understanding about the connection between debt, dividend and performance of the firm that can support the managers to make relevant decisions.

The impact of the board of directors and the Shariah board on the financial soundness of Islamic banks

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Afef Khalil
Keyword(s):  
Board Of Directors ◽  
Capital Adequacy ◽  
Islamic Banks ◽  
Z Score ◽  
Data Set ◽  
Content Type ◽  
The Board Of Directors ◽  
Financial Soundness ◽  
The Impact ◽  
The Relationship

Purpose The purpose of the study is to examine the relationship between the board of directors (BODs) and the Shariah board (SB) and assess its impact on the financial soundness of Islamic banks (IBs). Design/methodology/approach The authors use a regression model to test the effects of the relationship between the BOD and the SB on the financial soundness of IBs by applying a panel data set of 61 IBs, covering 18 countries from 2008 to 2014. The dependent variable is the Z-score indicator. To test the robustness of the results, the authors use dependent variables other than the Z-score [A rating of Capital adequacy (C), Asset quality (A), Management (M), Earnings (E), Liquidity (L), and Sensitivity (S) (CAMELS)] for 2018. Findings The results show that meetings between directors and SB members significantly reduce the financial soundness of IBs. The relationship between the BOD and the SB increases conflicts of interest and agency costs. However, a representation of the SB at the BOD meetings and vice versa does not affect financial soundness. The Accounting and Auditing Organization for Islamic Financial Institutions and the Islamic Financial Services Board corporate governance standards do not require the presence of the SB representative at the BOD meetings or vice versa, which justifies the results. Practical implications This study attempts to fill gaps in the literature by investigating the impact of meetings between the SB and the BOD on the financial soundness of IBs across the world. The results suggest that the BOD’s frequent interference in the affairs of the SB can have adverse effects on IBs and should be avoided. Originality/value The authors depart from the previous literature by using three new characteristics that link the BOD to the SB. Methodologically, the authors use three new measures to evaluate this relationship and its effect on the financial soundness of IBs. This study is unique because it explores the comparative impacts of the presence of a SB representative at the BOD meetings and a director at the SB meetings and meetings between the two governing boards of IBs.

scholarly journals Responsibilities of board of directors and enterprise efficiency in Vietnam stock market

2014 ◽  
Vol 17 (1) ◽  
pp. 74-87
Author(s):  
Minh Hoang Nguyen ◽  
Hien Thu Nguyen
Keyword(s):  
Firm Performance ◽  
Stock Market ◽  
Board Of Directors ◽  
Supervisory Board ◽  
Listed Companies ◽  
Market Capitalization ◽  
Study Results ◽  
Development Orientation ◽  
The Impact ◽  
The Relationship

Board of Directors and the Supervisory Board play an important role in the activities of the firm, because they influence the operational efficiency as well as the development orientation of the business. The study was conducted to survey the impact of the responsibilities of the board and the supervisory board on the effectiveness of listed companies on the stock market. A set of data consisting of 200 firms with the largest market capitalization on the stock market in 2011 has been obtained. The study results showed the correlation between the responsibilities of the Board and the Supervisory Board and the performance of the firm. The study also looked at the influence of industry factors on the relationship between the responsibilities of the board and the supervisory board and the performance of the business. The results showed that there is evidence to conclude the impact of industry factors on the relationship between the responsibilities of the Board and the Supervisory Board on firm performance.

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 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 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.

Influence of family ownership on company performance

2016 ◽  
Vol 12 (5) ◽  
pp. 654-672 ◽  
Author(s):  
Ilse Maria Beuren ◽  
Leandro Politelo ◽  
José Augusto Sousa Martins
Keyword(s):  
Family Involvement ◽  
Optimal Level ◽  
Graphical Analysis ◽  
Family Ownership ◽  
Company Performance ◽  
Family Participation ◽  
Content Type ◽  
The Board Of Directors ◽  
And Performance ◽  
The Relationship

Purpose The purpose of this paper is to investigate the relationship between family ownership and the performance of Brazilian companies listed on BM&FBovespa. It also provides a comparison with the results of Shyu’s (2011) survey conducted in Taiwanese companies. Design/methodology/approach A sample of 187 Brazilian companies were surveyed, of which 120 were classified as family owned, considering the family participation in the capital and in the board of directors. As in Shyu’s (2011) study, three variables of performance, two of accounting and one of market, and seven variables of control were considered. Simultaneous equations were used to analyze the relationship between family participation and corporate performance, the test of mean was used to compare performance and other variables between family- and non-family-owned companies, and a graphical analysis was used to verify the extent to which family involvement contributes to better performance. Findings The results show that family-owned companies have lower performance compared with non-family-owned companies. They indicate a positive relationship between family participation (ownership) and performance of the company. They also reveal that the performance of family-owned companies is maximized when family involvement reaches 60 and 70 percent. Originality/value The survey conducted on Brazilian companies shows results that are partially consistent with those observed by Shyu (2011) in Taiwanese companies. Similarities were found in the relationship between family involvement and the performance of the company. However, the results differ with regard to the performance of family- and non-family-owned companies and the optimal level of family participation that can maximize performance.

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