scholarly journals Trends of Board Diversity: Who Sits in a Boardroom?

2021 ◽  
Vol 16 (2) ◽  
pp. 129-158
Author(s):  
Syaiful Baharee Jaafar ◽  
◽  
Mohd Mohid Rahmat ◽  
Keyword(s):  
Decision Making ◽  
Board Of Directors ◽  
Family Members ◽  
Family Firm ◽  
Open Market ◽  
Good Information ◽  
Board Diversity ◽  
Age Diversity ◽  
The Board Of Directors ◽  
A Priority

The diversity of a board provides good information for decision-making. In addition, having individuals from different backgrounds and having unique knowledge sets, experiences and skills lead to better governance. The objective of this study was to investigate trends of diversity in the boardroom in publicly listed Malaysian companies. The study was conducted on a sample of 337 companies listed on Bursa Malaysia with 674 observations from 2015 & 2016. The findings show that the diversity of boards with respect to gender, age, education, and ethnicity is beneficial. Most corporations prefer to appoint men to the board of directors. The results of the study show that when it comes to age and ethnicity, diversity becomes a priority for companies to compete in the open market. In addition, the findings indicate that knowledge, which is related to education and qualifications, is a very important element for sitting in the boardroom. In addition, education, diversity has a positive significance in a family firm. Family members need to be better qualified to ensure that the company is able to survive in the market for longer periods. Keywords: board diversity, family firm, education diversity, age diversity

Does Board Diversity Matter in Credit Risk?

2021 ◽  
pp. 097215092110268
Author(s):  
Daniel Giraldo Arango ◽  
Sandra Gaitan
Keyword(s):  
Decision Making ◽  
Risk Management ◽  
Credit Risk ◽  
Board Of Directors ◽  
Decision Making Process ◽  
Multidimensional Index ◽  
Board Diversity ◽  
Standard And Poor's ◽  
The Board Of Directors ◽  
The Relationship

The board of directors’ diversity plays a crucial role in the firm’s decision-making process, which includes risk management. This study proposes a multidimensional index to measure board diversity. We use the Standard and Poor’s (S&P) 1500 between 1996 and 2013 to analyse the relationship between board diversity and credit risk. We find an inverse and significative relation between board diversity and credit risk, which means that diversity matters in credit risk, and more diversity leads to less credit risk.

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 The controlling power of royal family members on the board of directors and audit committee effectiveness

Accounting ◽  
2021 ◽  
pp. 987-992
Author(s):  
Khaled Salmen Aljaaidi ◽  
Abdulaziz Alothman ◽  
Raj Bahadur Sharma ◽  
Omar Ali Bagais
Keyword(s):  
Board Of Directors ◽  
Audit Committee ◽  
Family Members ◽  
Family Ownership ◽  
Marginal Effect ◽  
Governance Mechanism ◽  
Royal Family ◽  
The Board Of Directors ◽  
Corporate Governance Mechanism ◽  
Relationship Of

This paper examines the association of the presence of royal family members on the board of directors with audit committee effectiveness. The sample of this study consists of 444 listed manufactured firms in Saudi Arabia for the period 2012-2019. Using the Pooled OLS regression, the result of the study shows that royal family ownership is associated with audit committee effectiveness, giving support to the substitution hypothesis. The result indicates that members from the royal families are good monitors imposed into the companies' managements as both taking the role of decision makers and owners who may substitute the effectiveness of the audit committee. The presence of royal family members on the board has an alternative for the effectiveness of the audit committee. The marginal effect of audit committee effectiveness as an internal corporate governance mechanism is substituted by the presence of royal family members on the board. This study provides insightful evidence to regulators and policy makers at the company and country levels on the relationship of royal family ownership and audit committee effectiveness.

Integrated Reports and Board Diversity

2020 ◽  
pp. 152-170
Author(s):  
Ana Isabel Lopes ◽  
Maria João Braz
Keyword(s):  
Board Of Directors ◽  
Executive Directors ◽  
Integrated Reporting ◽  
Board Diversity ◽  
The Board Of Directors

Organizations currently must report to a broader audience, capturing the attention of several categories of stakeholders, who want to know why, where, and how companies create and add value, and how they deal with responsibility and sustainability issues, contributing to the emerging of integrated reporting (IR). IR is as an innovation in promoting a holistic and integrated vision of the business, where the Board of Directors must play an important role. This chapter covers diversity of directors seated on the board of integrated reporters, comparing two groups: those who are IR references and those that are IR regular reporters. The results show that organizations with larger boards, higher proportions of non-executive directors, and a higher proportion of women on the board have an higher probability of preparing IR reference reports, while the duality role of CEO inverts the probability, and no relationship is found with board experience.

scholarly journals DEWAN DIREKSI, DEWAN KOMISARIS TERHADAP NILAI PERUSAHAAN KONSUMSI : TOP 20 PERUSAHAAN TERDAFTAR DI BEI

2021 ◽  
Vol 5 (1) ◽  
pp. 01-07
Author(s):  
Hurian Kamela
Keyword(s):  
Decision Making ◽  
Board Of Directors ◽  
Multiple Regression ◽  
Firm Value ◽  
Boards Of Directors ◽  
Total Sample ◽  
Return On Assets ◽  
Good Evaluation ◽  
The Board Of Directors ◽  
Independent Variable

The board of directors and commissioners are parties who play a role in the company, especially in corporate decision making. The main objective of this research is to analyze the number of boards of directors and commissioners of firm value. The number of samples based on this study were 20 companies for 4 years (2014-2017). The total sample is 80 observations. The reason the sample was chosen because of the large consumption reasons that had a reputation and were well known in the community. The method used is multiple regression. The dependent variable for the use of measurement that is often used is Tobins-q. The independent variable is based on the measurement of the board of directors and the measurement of the board of commissioners in the company. In addition to this research, the control variables used were Return On Assets (ROA) and total assets. The results of the study explain that there is no effect of the two hypotheses of the board of directors and the board of commissioners on firm value. In general, the number of company leaders has no effect on company activities. The leader of the company has been carrying out its role as a board of monitoring. The contribution of the research is that companies that have carried out good evaluation and selection to increase firm value by implementing the board of directors and commissioners according to the standards.

scholarly journals RECRUITING FOR SUCCESS. DOES BOARD DIVERSITY MATTER?

2020 ◽  
Author(s):  
Meg E. Cotter Mazzola ◽  
Joseph L. Pontacolon ◽  
Angel Claudio ◽  
Javier A. Salguero ◽  
Marcelles James ◽  
...  
Keyword(s):  
Board Of Directors ◽  
Essential Role ◽  
Board Members ◽  
Motivating Factors ◽  
Board Diversity ◽  
Organization Level ◽  
Knowing That ◽  
Governance Model ◽  
External Stakeholders ◽  
The Board Of Directors

Nonprofits play an essential role in society. To realize their important missions, nonprofits rely on strong and committed leaders at both the organization level as well as the governance level. Nonprofits are obligated to have an active board of directors to operate. This reliance places the organization in a vulnerable position where they must recruit and engage with external stakeholders and identify individuals with the combination of talent needed to succeed as well as the passion for supporting the organization’s vision. Knowing that board members have a long lasting impact on their organizations, this paper looks at the varying models of governance and the implications for choosing one model over another. Determining the best structure for a governance model represents one component to setting an organization up for success. Equally, if not more important, is ensuring that the board of directors is composed of motivated and committed individuals who are steadfast in their efforts to support the mission of the organization. In order to find the best people for the role, an organization must understand what drives and motivates an individual to serve on a board. The topic of motivation as it relates to governance boards, and how existing boards can use the motivating factors to recruit and retain board members is explored. Finally, we explore the value of diverse board composition and whether certain criteria of diversity carry more weight in terms of impact than others.

scholarly journals Significance of Family Representation among Family Businesses in the Czech Republic

2020 ◽  
pp. 1-9
Author(s):  
Vojtěch MEIER
Keyword(s):  
Czech Republic ◽  
Correlation Analysis ◽  
Board Of Directors ◽  
Family Business ◽  
Family Members ◽  
Family Businesses ◽  
The Czech Republic ◽  
Level Of Involvement ◽  
The Family ◽  
The Board Of Directors

Family businesses are the foundation of any economy. They have been heavily influencing our society for many centuries. The level of involvement among family members is vital to flourish a family business. Therefore, research is conducted to assess the dependencies of six aspects of the selected family businesses in the Czech Republic. Several findings from the family survey are found in the correlation analysis: there is the highest indirect dependence between the number of directors and the number of family members actively involved in a family business, and some factors do not show dependence. This is evidenced by the relationships between the number of members of the board of directors or managing directors and the number of family members who are not interested in family business. Correlation analysis methods are used on top of the methods of analysis, synthesis and comparison.

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 Board ethnic diversity and goodwill impairment decisions: longitudinal analysis of energy firms in Malaysia

2020 ◽  
Vol 18 (1) ◽  
pp. 326-333
Author(s):  
Jamaliah Abdul-Majid
Keyword(s):  
Board Of Directors ◽  
Ethnic Diversity ◽  
Ethnically Diverse ◽  
Board Diversity ◽  
Internal Governance ◽  
Market Capitalization ◽  
Goodwill Impairment ◽  
Reporting Incentives ◽  
The Board Of Directors ◽  
Market Indicator

The present study investigates whether ethnic diversity among firms’ directors influences the decision to take goodwill write-offs, after considering the economic factors of impairment (measured in terms of the market capitalization indicator), reporting incentives, and firms’ internal governance. The analysis focuses on energy firms in Malaysia from 2006 to 2018. The regressions results based on binary logistics show that energy firms are less likely to take goodwill write-offs even when the market indicates the possibility for the write-offs. The results also show the absence of the direct relationship between goodwill impairment decisions and ethnic diversity of the board of directors. Nevertheless, the results reveal that board ethnicity moderates the relationship between firms’ goodwill impairment decisions and the market capitalization indicator, suggesting that as firms encounter increasing market indicator of impairment losses, the board with diverse ethnicity positively influences firms in taking goodwill write-offs. The results of the present study add to the literature on board diversity and firms’ decisions with regard to goodwill impairment by highlighting the beneficial roles of having ethnically diverse board of directors, in that they use the market indicator that goodwill may be impaired in their monitoring role on the goodwill impairment decisions. The results offer input to the policymakers by suggesting that to strengthen the monitoring roles of the board of directors, they need to be diverse and equipped with indicators that would assist them in their monitoring decisions. AcknowledgementThe author acknowledges’ the research funding (i.e., FRGS grant 13591 provided via Universiti Utara Malaysia) from the Ministry of Higher Education in Malaysia.

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