scholarly journals Board of Directors’ Remuneration, Employee Costs, and Layoffs: Evidence from Spain

2021 ◽  
Vol 13 (14) ◽  
pp. 7518
Author(s):  
Mariano González-Sánchez ◽  
Eva M. Ibáñez Jiménez ◽  
Ana I. Segovia San Juan
Keyword(s):  
Board Of Directors ◽  
Performance Measures ◽  
Empirical Studies ◽  
Market Price ◽  
Listed Companies ◽  
Social Aspect ◽  
Return On Equity ◽  
The Board Of Directors ◽  
Employee Relationships ◽  
The Cost

Most of the empirical studies on board remuneration have focused on finding explanatory performance measures. There are studies that analyze if the compensation contracts of directors reward managers in such a way that they strive to maximize firm performance and shareholders’ wealth; however, there are few studies on the social aspect of corporate governance, or agent–employee and principal–employee relationships. Thus, in this study, our aim is to test whether there is a causal relationship between the remuneration of the board of directors of listed companies and the personnel policies of the companies, expressed through the cost of personnel and layoffs. For that, we used a sample of Spanish listed companies, and we found that two performance measures (return on equity and earnings per share on market price) have a greater effect on the growth rate of board remuneration when layoffs occur. Additionally, we found that the sales revenue and cash flow on total assets subsequently influenced personnel management.

The effect of the board of directors on the performance: Case of Tunisian banks

2020 ◽  
Vol 2 (2) ◽  
pp. 8-17
Author(s):  
Abdelkader Derbali ◽  
Lamia Jamel ◽  
Ali Lamouchi ◽  
Ahmed K Elnagar ◽  
Monia Ben Ltaifa
Keyword(s):  
Financial Performance ◽  
Board Of Directors ◽  
Stock Exchange ◽  
Market Performance ◽  
Outside Directors ◽  
Return On Equity ◽  
Satisfactory Outcome ◽  
Stock Market Performance ◽  
The Board Of Directors ◽  
Negative Effect

The board of directors plays a crucial role as an internal structure of corporate governance. Certainly, its efficiency is needy on the existence of numerous issues; the greatest significance is correlated to its characteristics that relay principally to the individuality of its memberships, board dimension, combining the purposes of pronouncement and regulator as well the grade of the individuality of the audit board and the diverse gender of the committee. To assess the authenticity of our assumptions, which stipulate the presence of deterministic characteristics of the committee on the profitability of Tunisian banks, we evaluated by three different ratios i.e., ROA (return on asset), ROE (return on equity), and MP (market performance); and we estimate three models with linear regressions. The empirical findings were performed on a data sample composed of 11 Tunisian banks listed on the Stock Exchange of Tunisia (SET) during the period from 1999 to 2018. From the estimated regressions, we find a satisfactory outcome indicating the significance of the influence of the characteristics of the committee on the banking performance in Tunisia. Then, the percentage of outside directors negatively affects the level of the financial performance of banks. The number of institutional administrators performs an essential role in improving financial performance. Finally, the duality of the Presidency of the Council General-Directorate has a negative effect on the level of stock market performance of Tunisian banks.

scholarly journals Implementing the board of directors’ mechanism – An empirical study of the listed firms in Libya

2018 ◽  
Vol 14 (1) ◽  
pp. 22-33 ◽  
Author(s):  
Jill Atkins ◽  
Mohamed Zakari ◽  
Ismail Elshahoubi
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Boards Of Directors ◽  
Listed Companies ◽  
Board Members ◽  
Corporate Boards ◽  
Listed Firms ◽  
Stakeholder Groups ◽  
The Board Of Directors ◽  
Executive Managers

This paper aims to investigate the extent to which board of directors’ mechanism is implemented in Libyan listed companies. This includes a consideration of composition, duties and responsibilities of the board directors. This study employed a questionnaire survey to collect required data from four key stakeholder groups: Boards of Directors (BD), Executive Managers (EM), Regulators and External Auditors (RE) and Other Stakeholders (OS). The results of this study provided evidence that Libyan listed companies generally comply with the Libyan Corporate Governance Code (LCGC) requirements regarding the board composition: the findings assert that most boards have between three and eleven members, the majority of whom are non-executives and at least two or one-third of whom (whichever is greater) are independent. Moreover, the results indicate that general assemblies in Libyan listed companies are practically committed to the LCGC’s requirements regarding the appointment of board members and their length of tenure. The findings provide evidence that boards in Libyan listed companies are carrying out their duties and responsibilities in accordance with internal regulations and laws, as well as the stipulations of the LCGC (2007). Furthermore, the stakeholder groups were broadly satisfied that board members are devoting sufficient time and effort to discharge these duties and responsibilities properly. This study helps to enrich our understanding and knowledge of the current practice of corporate boards as a significant mechanism of corporate governance (CG) by being the first to address the board of directors’ mechanism in Libyan listed companies.

Corporate Female Leadership Effects Considering PSI20 and IBEX35 Companies' Performance

2019 ◽  
pp. 280-301
Author(s):  
Mara Madaleno ◽  
Elisabete S. Vieira ◽  
João P. C. Teodósio
Keyword(s):  
Board Of Directors ◽  
Performance Measures ◽  
Positive Influence ◽  
Performance Measure ◽  
Female Leadership ◽  
Accounting Performance ◽  
The Board Of Directors ◽  
Female Presence ◽  
The Relationship ◽  
Measures Of Performance

Using a sample of 47 Portuguese and Spanish firms for the period 2010 to 2017, the authors study the relationship between female presence on board and firm's accounting (ROA and ROE) and market-based (MTB and Tobin's Q) performance. They find that women on the board of directors is positively related to firm's performance, as well as the gender of the CFO and the proportion of women on the listed key professionals, when we consider the market measures of performance, not being so consistent for accounting performance measures. Results were sensitive to the performance measure used. The results reinforce the political options of European Commission gender established quotas, revealing that in the Iberian countries these quotas are not being effectively implemented, even if results suggest that women on board in fact exert positive influence over market performance. This also led us to think that financial markets may also react in a positive way when the CFO of the company is a woman instead of a man, despite the sample limitations both in terms of gender and number of firms.

After a long discussion on the advantages and drawbacks of each method (production or capital), it was decided that the decision would be made during the next meeting. On March 16, 1832, the Board opted for the capital method. However, the debate was re­ vived less than a year later when at the August 20, 1833 meeting the chief accountant was instructed to compare Saint-Gobain’s and Chauny's respective efficiencies. . . . we shall probably be told, with good reason, that if cost prices are charged with the mostly arbitrary distribu­ tion of overheads, those cost prices are an unreliable means of comparing the economical efficiency of differ­ ent methods of manufacturing. That is why we wish to propose a third way in which overhead expenses of the Headquarters are not charged to any production. For the last four months, Saint-Gobain has been costed at OF79 per square foot. At Chauny, both raw materials and labor are worked out at OF51 per square foot. If you add the depreciation of the building and the machinery of that factory, the cost rises to OF71, and if we wish to have figures that could be compared to those of Saint-Gobain, repair expenses for the machinery, the cost for slack peri­ ods or flawed glass must be added. The records in our accounts are not yet accurate enough and moreover too recent to allow us to give precise figures for these kinds of expenses. But no doubt they will go over OF80; conse­ quently, the question of economical efficiency is settled. The overhead expenses to be shared included traveling ex­ penses, tokens, salaries of administrators, a hypothetical rent for the Paris building, and operating expenses, but the fate of divi­ dends paid to shareholders was not sealed. It was raised on Sep­ tember 4, 1834 by the chief accountant: It has often been said that we should not include divi­ dends in the cost prices: this is a big mistake; a Limited Company must always be considered as a business which, thanks to its repute, can borrow funds for its ac­ tivity: those funds produce interests, which amount must be deducted from the profit ... if the interests were not included in the cost prices, we could not know the real profit of the soda factory. The Continuity of accounting methods. The Board of Directors of Saint-Gobain was also concerned about comparability of ac­ counting data over periods of time and under different variation methods. The following quotation may seem somewhat difficult to

2014 ◽  
pp. 261-261
Keyword(s):  
Board Of Directors ◽  
Raw Materials ◽  
Good Reason ◽  
Third Way ◽  
The Real ◽  
Economical Efficiency ◽  
Counting Data ◽  
Limited Company ◽  
The Board Of Directors ◽  
The Cost

scholarly journals Effect Of Good Corporate Governance On Company Profitability RE & Property Sector In Indonesia

2019 ◽  
Vol 23 (1) ◽  
pp. 17
Author(s):  
Ahmad Azmy, Dea Restiya Anggreini, Mohammad Hamim
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Audit Committee ◽  
Negative Relationship ◽  
Secondary Data ◽  
Return On Assets ◽  
Return On Equity ◽  
Good Corporate Governance ◽  
Panel Data Regression ◽  
The Board Of Directors

This study aims to examine the effect of Good Corporate Governance (GCG) on company profitability. The dependent variable are Return On Assets (ROA) and Return On Equity (ROE). The independent variable are Good Corporate Governance (GCG) represented by the Board of Commissioners, the Board of Directors, and the Audit Committee. This study uses secondary data from audited financial statements of Real Estate and Property companies in 2013-2017. The analytical tool used in this study uses panel data regression. Based on the results of the study it is known that the Board of Directors and Audit Committee variables have a significant positive effect on ROA and ROE. The Board of Commissioners variable has no influence and negative relationship to ROA and ROE.

scholarly journals Board of Directors, Audit Committee and the Financial Performance of Listed Companies in Malaysia

2018 ◽  
pp. 951-957
Author(s):  
Ali Thamer Nawafly ◽  
Ali Saleh Alarussi ◽  
Aidi Ahmi
Keyword(s):  
Corporate Governance ◽  
Regression Analysis ◽  
Financial Performance ◽  
Board Of Directors ◽  
Audit Committee ◽  
Listed Companies ◽  
Board Independence ◽  
Return On Equity ◽  
Independent Variables ◽  
Critical Components

The purpose of this study is to examine the relationships between selected components of corporate governance and financial performance of listed companies in Bursa Malaysia. In this study, the most critical components of corporate governance including board independence, board size, board expertise, audit committee size, audit committee independence, and audit committee expertise, have been examined as the independent variables that influence the financial performance of companies listed on Bursa Malaysia. This study used a sample of 150 non-financial listed companies in Malaysia. This study differs than previous studies that separately study the effect of either the board characteristics or the audit committee characteristics. This study concerns on the combined effect of both, board of directors and audit committee, about return on equity. The study is based on companies’ data for the year 2014. Regression analysis is conducted using Statistical Package for Social Science Version 22 (SPSS 22), and the outcomes of this study show significant and positive relationships between all the independent variables and financial performance of companies listed on Bursa Malaysia. The study ended up with positive suggestions based on the limitations that have been faced while conducting this study.

scholarly journals Research on the Influence of the Characteristics of the Board of Directors of Listed Companies on the Growth of the Company

2021 ◽  
Vol 292 ◽  
pp. 02049
Author(s):  
Gao Ruirui
Keyword(s):  
Board Of Directors ◽  
Listed Company ◽  
Listed Companies ◽  
Independent Directors ◽  
Stock Exchanges ◽  
Positive Correlation ◽  
Board Characteristics ◽  
The Board Of Directors ◽  
Dynamic Perspective ◽  
A Share

The board characteristics are an important factor affecting the growth of the company. This paper selects the data of A-share listed companies in the Shanghai and Shenzhen Stock Exchanges during the five-year period from 2014 to 2019, and analyzes whether the board characteristics will affect the growth of the company from a dynamic perspective. The research found that: ① the scale of the board of a listed company has an inverted U-shaped relationship with the company’s growth; ② the proportion of independent directors has a positive correlation with the company’s growth; ③ the director’s salary has a positive correlation with the company’s growth.

scholarly journals Corporate Governance Independence in the Board of Directors and The Firms Financial Performance: Empirical Analysis of Cement Sector Firms Listed on Pakistan Stock Exchange (PSX)

2021 ◽  
Vol 09 (01) ◽  
pp. 01-24
Author(s):  
Muhammad Noman Ansari ◽  
◽  
Dr. Sayed Fayaz Ahmed
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Board Of Directors ◽  
Stock Exchange ◽  
Agency Cost ◽  
Independent Directors ◽  
Return On Assets ◽  
Return On Equity ◽  
Board Committees ◽  
The Board Of Directors

The corporate governance measures emphasize on presence of independence of the board of directors to bring objectivity and reducing the agency cost; whereas the institutions have the ability, skills and time to supervise the activities of the management and channelize it to better financial performance. The objective of this study is to explore the effect of independence of the board of directors on the financial performance of the firms. The independence was gauged by number of independent directors and non-executive directors, chairing of board committees by independent directors, institutional holding in the firm, and presence of institutional directors on the board. The financial performance of the firm is gauged using the return on equity (ROE) and return on assets (ROA). The corporate governance and financial performance data comprising of 75 firm years from 2014 to 2018 of the firms listed in the cement sector of the Pakistan Stock Exchange (PSX) were selected. GLM regression was performed to study the relationship between the variables. The results suggest that the majority of independence on the board of directors do not affect the financial performance of the firm; the independence in the board committees negatively affects the financial performance, whereas the presence of institutional holding and director in the firm does not have any effect on the performance of the firm. The study will provide a basis for future studies to find the association that independence can bring objectivity, reduce agency cost, and affect the performance of the firm.

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