scholarly journals Women with STEM qualifications on supervisory boards. Does a high women quota in supervisory boards influence firm success?

2020 ◽  
Vol 7 (1) ◽  
pp. 28-46
Author(s):  
Bettina Binder ◽  
Keyword(s):  
Capital Market ◽  
Supervisory Board ◽  
Original Study ◽  
Executive Board ◽  
Management Board ◽  
Supervisory Boards ◽  
Conducting Research ◽  
Gender Quota ◽  
The Impact ◽  
The Relationship

Many large companies in Europe include mainly men in supervisory boards and the women quota is often lower than 20 %. In Germany an optional women quota of 30 % in supervisory boards was proposed for capital market oriented companies in 2016. Some assume that without a gender quota the earnings of enterprises would shrink as male and female members in supervisory teams do not work in such a harmonized and structured way. Others think that a women quota in supervisory boards should be requested by law and should not remain optional. In this context, conducting research and analyzing the impact of the women’s presence in supervisory boards on the success of companies appear as a necessary topic. The present article looks at the companies of EURO STOXX 50 in the year 2015 and their success and tries to establish whether this success can be related to the percentage of female members in supervisory positions. It replicates in this way the study of Binder, Alonso-Almeida and Bremser (2016) which analyzed the relationship between female’s representation in the management board (executive board) and firm performance (measured by earnings before taxes – EBT) of the EURO STOXX 50 companies in 2014. It is in the same time an extension of the original study as the supervisory board is brought under scrutiny and a closer look at women qualifications, and especially women with STEM qualifications is provided.

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 The Relationship Between Supervisory Board And Management And Their Communication Processes In Publicly Listed Companies In Poland

2015 ◽  
Vol 18 (2) ◽  
pp. 139-160 ◽  
Author(s):  
Jacek Gad
Keyword(s):  
Focal Point ◽  
Stock Exchange ◽  
Great Influence ◽  
Supervisory Board ◽  
Listed Companies ◽  
Theoretical Concepts ◽  
Management Board ◽  
Research Areas ◽  
Supervisory Boards ◽  
The Relationship

The focal point of this study is to present the results of empirical research concerning operation of supervisory boards in the practice of companies listed on the Warsaw Stock Exchange (WSE). The main subject of interest concerns two research areas: the character of the relationship between as well as the methods and tools employed in communications between a supervisory board and management. The research paper consists of theoretical concepts regarding the supervisory boards’ tasks and the relationship between a supervisory board and a management board. Moreover, another area of interests concerns legislative changes that, according to the author, have had a great influence on functioning of supervisory boards in the practice of WSE-listed companies. The conclusions presented in the paper have been formulated on the basis of a review of the literature, analysis of pertinent regulations, and a questionnaire survey of members of supervisory boards which was conducted in September, October and November 2011 (the data was obtained by means of postal surveys).

Auswirkungen von Mehrfachmandaten deutscher Vorstands- und Aufsichtsratsvorsitzender auf den Unternehmenserfolg / The Impact of Multiple Board Memberships of CEOs and Chairmen of Supervisory Boards on Corporate Performance in Germany

2010 ◽  
Vol 230 (5) ◽  
Author(s):  
Benjamin Balsmeier ◽  
Achim Buchwald ◽  
Heiko Peters
Keyword(s):  
Panel Data ◽  
Corporate Performance ◽  
Supervisory Board ◽  
Data Set ◽  
Supervisory Boards ◽  
External Management ◽  
The Impact ◽  
Public Criticism

SummaryMembers of management boards as well as supervisory boards often attract public criticism when they are simultaneously active in several other boards. We use a panel data set of the biggest German corporations for the period from 1996-2006 to estimate the impact of multiple board memberships of the CEO and the chairman of the supervisory board on corporate performance. The results suggest a positive and inverse U-shaped relation between the number of external supervisory board seats of the CEO and corporate performance. Chairmen of supervisory boards who simultaneously serve on external management boards tend to improve the performance of the controlled firm. Further external supervisory board seats of the chairman of a supervisory board do not seem to have any influence on corporate performance, though.

Gesetzliche Mitbestimmung und Kapitalrendite Co-Determination and Return on Equity / Co-Determination and Return on Equity

2006 ◽  
Vol 226 (5) ◽  
Author(s):  
Kornelius Kraft ◽  
Marija Ugarkovič
Keyword(s):  
Panel Data ◽  
Capital Market ◽  
Negative Impact ◽  
Supervisory Board ◽  
Limited Liability ◽  
Voting Rights ◽  
Positive Influence ◽  
Return On Equity ◽  
German System ◽  
The Impact

SummaryMany observers regard the German system of codetermination as a very strong intervention into the working of the capital market. With the introduction of the codetermination law in 1976, employee representatives in limited liability companies with more than 2000 employees are entitled to occupy half of the number of seats and are granted nearly 50% of the voting rights on the supervisory board. We investigate the impact of the introduction of the German codetermination law in 1976 which implied an extension of co-determination from third parity to almost parity on return on equity. Our estimations are based on panel data for 179 companies from 1971 to 1976 and from 1981 to 1986, thus allowing for adjustment to the 1976 law. In contrast to frequently raised fears, no negative impact is found. Our empirical results suggest a positive influence from the 1976 strengthening of co-determination law on return on equity.

scholarly journals Classical and modern concepts of corporate governance (Stewardship Theory and Agency Theory)

Management ◽  
2015 ◽  
Vol 19 (2) ◽  
pp. 84-92 ◽  
Author(s):  
Beata Glinkowska ◽  
Bogusław Kaczmarek
Keyword(s):  
Corporate Governance ◽  
Agency Theory ◽  
Supervisory Board ◽  
Stewardship Theory ◽  
Social Meaning ◽  
Modern Approach ◽  
Management Board ◽  
Governance Systems ◽  
Supervisory Boards ◽  
A Company

Summary The main issues in efficiency of a company as an organisation are relations between the Supervisory Board and the Management Board of a company, and the methods of functioning of Supervisory Boards in governance systems of a company. The classical and modern approach to the role, place, and importance of corporate governance presented in this article, is yet another prompt to continue searching for the optimum in the organisational, economical, and social meaning.

scholarly journals Ovlasti nadzornog odbora u svezi s nadzorom uprave sportskog dioničkog društva

2019 ◽  
Vol 56 (2) ◽  
pp. 377-399
Author(s):  
Ratko Brnabić
Keyword(s):  
Board Member ◽  
Supervisory Board ◽  
General Meeting ◽  
Point Of View ◽  
Board Members ◽  
Executive Board ◽  
Checks And Balances ◽  
Management Board ◽  
Management Measures ◽  
Executive Body

The Supervisory Board of the Sports Joint stock Companies acts as the representative organ of the shareholders between the General Meeting and the Executive Board: the General Meeting elects (or privileged person/shareholder simply names) the members of the Supervisory Board, and the Supervisory Board appoints the members of the Management. From this point of view, one could see the General Meeting as the supreme body of the company. But the Supervisory Board, in the carefully balanced interaction of the three bodies, known as a system of "checks and balances", also has considerable independence from the General Meeting. According to the organizational organization of the Joint stock Companies, the general meeting is not superior towards the two other organs. In particular, the Supervisory Board and its members are not subjects to any instructions from the General Meeting. Neither the election of a member of the Supervisory Board by the General Meeting nor the appointment of a Supervisory Board member by a shareholder (entitled to name his representative) constitutes an imperative mandate for those members. On the other hand, the option of dismissal, which is legally available at all times, as a rule ensures that the Supervisory Board members will not act against the wishes of the General Meeting. Management measures cannot be delegated to the Supervisory Board. However, it must be determined by the Articles of Association or by resolution of the Supervisory Board that certain types of transactions may only be carried out with the approval of the Supervisory Board. By this right, the Supervisory Board will not become an executive body, equal with the Management Board, even in the case of transactions requiring approval: it can neither undertake the transactions in question itself, nor can it instruct the Executive Board to carry them out. The initiative remains with the Executive Board, which, even with the approval of the Supervisory Board, can still refrain from carrying out the business if it no longer considers it to be sensible and/or reasonable. The Management also remains fully responsible for the business with regard to liability; the approval by the Supervisory Board does not exempt them from an obligation to pay compensation for damages incurred. The Supervisory Board thus has the opportunity, by refusing its consent, to prevent the conduct of business intended by the Management Board.

Dynamic study of corporate governance structure and firm performance in China

2019 ◽  
Vol 13 (2) ◽  
pp. 299-317 ◽  
Author(s):  
Lin Shao
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Generalized Method Of Moments ◽  
Supervisory Board ◽  
Governance Structure ◽  
State Ownership ◽  
Content Type ◽  
Listed Firms ◽  
The Impact ◽  
The Relationship

Purpose The paper aims to provide a comprehensive investigation of the relationship between corporate governance (CG) structure and firm performance in Chinese listed firms from 2001 to 2015. The authors’ motivation derives from the fact that the CG system in China is different from those in the US, the UK, Germany, Japan and other countries. Design/methodology/approach A large unbalanced sample, covering more than 22,700 observations in Chinese listed firms, was used to explore, by means of a system-generalized method-of-moments (GMM) estimator, the relationship between CG structure and firm performance to remove potential sources of endogeneity. Findings Results show that Chinese CG structure is endogenously determined by the CG mechanisms investigated: there is no relationship between board size (including independent directors) and firm performance; CEO duality has a significantly negative effect on firm performance; concentration of ownership has a significantly positive influence on firm performance; managerial ownership is negatively correlated with firm performance; state ownership has a significantly positive effect on firm performance; and a supervisory board is positively correlated with firm performance. Practical implications The findings provide policymakers and firm managers with useful empirical guidance concerning CG in China. Originality/value Few integrative studies have examined the impact of CG structure on firm performance in China. This study adds new empirical evidence that the relation between CG structure and performance in China is endogenous and dynamic when controlling for unobserved heterogeneity, simultaneity, and dynamic endogeneity.

Voluntary disclosures on control system over financial reporting and corporate governance mechanisms: Evidence from Poland

2020 ◽  
Vol 25 (4) ◽  
pp. 698-729
Author(s):  
Jacek Gad
Keyword(s):  
Corporate Governance ◽  
Control System ◽  
Financial Reporting ◽  
Capital Market ◽  
Audit Committee ◽  
Stock Exchange ◽  
Supervisory Board ◽  
Voluntary Disclosures ◽  
Research Results ◽  
The Impact

The paper presents the results of research on the mechanisms of corporate governance functioning on the Polish capital market. The purpose of this article is to identify the impact of selected internal mechanisms of corporate governance on the scope of disclosures on the control system over financial reporting. Disclosures were presented by public companies operating on the capital market with an insider model of corporate governance. The research covered 301 companies listed on the Warsaw Stock Exchange and their voluntary disclosures published in 2013. The results indicate that the scope of disclosures on the control system over financial reporting is positively correlated with the presence of audit committee and the share of independent supervisory board members in their total number. The obtained research results confirm the belief presented in the literature that in an insider model of corporate governance internal mechanisms affect the scope of voluntary corporate disclosures. In addition, research results indicate that the scope of voluntary disclosures depends on the size of the company.

scholarly journals Impact of Accounting Information on Share Price: Empirical Evidence from Pakistan Stock Exchange

2016 ◽  
Vol 3 (1) ◽  
pp. 124
Author(s):  
Muhammad Asif ◽  
Kashif Arif ◽  
Waqar Akbar
Keyword(s):  
Capital Market ◽  
Stock Prices ◽  
Stock Exchange ◽  
Explanatory Power ◽  
Accounting Information ◽  
Time Frame ◽  
Share Price ◽  
Share Prices ◽  
The Impact ◽  
The Relationship

Purpose—The purpose of this paper is to examine the relationship between accounting information and share price. In order to achieve this, a model that includes specific accounting ratios (earning per share, book value per share, capital employed per share and operating cash flow per share) and shares a price is developed. Design/methodology/approach—The data were collected from the companies listed in KSE-30 index. The time frame spans from 2006 to 2013 and OLS regression models were used to examine the relationshipsFindings—The resulting evidence suggest that accounting information parameters have significant influence on share price and they have joint explanatory power in determining stock prices. This research finds the consistent results with pervious empirical researches.Originality/value—The present study adds to the existing literature by examining the impact of accounting information on share prices within the context of an emerging capital market such as Pakistan Stock Exchange using KSE-30 companies. This is believed to be the first study which considers the aforementioned issues in the Pakistan’s capital market environment.

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