scholarly journals OWNERSHIP STRUCTURE AND BOARD EFFECTIVENESS AS DETERMINANTS OF TMT COMPENSATION IN SPANISH LISTED FIRMS / NUOSAVYBĖS FORMOS IR VALDYBOS EFEKTYVUMĄ LEMIANTYS VEIKSNIAI PASIRINKTOSE ISPANIJOS KOMPANIJOSE

2011 ◽  
Vol 12 (1) ◽  
pp. 92-109 ◽  
Author(s):  
Gregorio Sanchez-Marin ◽  
J. Samuel Baixauli-Soler ◽  
M. Encarnacion Lucas-Perez
Keyword(s):  
Panel Data ◽  
Board Of Directors ◽  
Ownership Structure ◽  
Top Management Team ◽  
Management Team ◽  
Ownership Concentration ◽  
Board Effectiveness ◽  
Listed Firms ◽  
The Board Of Directors

This study analyzes the influence of ownership structure and the board of directors on top management team (TMT) pay levels in a sample of Spanish listed firms. When panel data methodology is applied, the results show that TMT pay level is affected by the supervisory effectiveness of the board. This, in turn, is influenced by ownership concentration and the type of major shareholders. When ownership is dispersed, the board is more effective in their supervision and TMT pay level is lower. However, when ownership is concentrated, the quality of supervision and, consequently, TMT pay levels depend upon the type of shareholder that is predominant. Santrauka Analizuojama nuosavybes formos strukturos ir valdybos itaka aukšèiausio lygio Ispanijos kompaniju vadovu darbo užmokesèio dydžiui. Tyrimu duomenys parode, kad aukšèiausio lygio vadovu darbo užmokesèio dydis priklauso nuo valdybos kontroles ir jos efektyvumo itakos. Tai, žinoma, yra susijê su kompanijos savininko ir pagrindiniu akcininku pozicija. Kai savininko pozicija pasyvi, tuomet valdybos veiksmai kontroles srityje yra efektyvesni, taèiau aukšèiausio lygio vadovu darbo užmokesèio lygis yra gerokai mažesnis. Taèiau kai savininkas tiesiogiai dalyvauja kompanijos veikloje ir prisideda prie jos valdymo, tuomet kontroles kokybe ir aukšèiausio lygio vadovu darbo užmokesèio lygis priklauso nuo akcininko pozicijos.

Corporate Governance and Risk Management on Listed Banks, The Tanzania Perspective

2021 ◽  
Vol 8 (1) ◽  
pp. 27
Author(s):  
Erick Lusekelo Mwambuli ◽  
Avitus Mwebembezi Dominick
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Board Of Directors ◽  
Ownership Structure ◽  
Management Practices ◽  
Stock Exchange ◽  
Management Approach ◽  
Financial Risks ◽  
The Board Of Directors

The study was to assess on corporate governance and risk management in Tanzania. The study was guided by three objectives which were to assess if transparency, disclosure and audit have significant effect on risk management of the firm, to assess if the board of directors have significant effect on risk management of the firm and evaluate if the ownership structure have significant effect on risk management of the firm. Furthermore, we assess how corporate governance and particularly board of directors, ownership structure, transparency disclosure and audit can affect risk management practices in the context of Dar es Salaam stock exchange listed banks. By the use of a content in analysis approach, the level of exposing the risks in terms of likelihood, consequences of such risk and the strategies used for managing that risk were identified for each kind of risk by using attributes. The results show that corporate governance is related to board of directors, ownership structure, transparency, disclosure and audit play a positive significant and crucial role in establishing an integrative risk management approach. The results from data collected demonstrate that corporate governance has positive significant effect in determining the the good quality of risk management through the level of risk-taking in decisions, especially in terms of financial risks management.

scholarly journals NCENTIVE EFFECT OF PAY GAP IN TOP MANAGEMENT TEAM UNDER DIFFERENT PROMOTION OPPORTUNITIES

2021 ◽  
Author(s):  
HAIFAN LU
Keyword(s):  
Panel Data ◽  
Top Management Team ◽  
Management Team ◽  
Top Management ◽  
Company Performance ◽  
Improve Performance ◽  
Pay Gap ◽  
Listed Firms ◽  
A Share

Abstract. This paper makes a research on the effect of pay gap in top management team on company performance under different promotion opportunities of managers by using panel data of Chinese A share listed firms during 2015-2019. The results show that when managers have less opportunities to be promoted, the pay gap in top management team is lager. But lager pay gap will not always improve performance.

scholarly journals The Effect of Corporate Governance and Ownership Structure on Financial Performance of Listed Companies in Nepal

2019 ◽  
Vol 12 (1) ◽  
pp. 1-18
Author(s):  
Surya Bahadur G. C. ◽  
Ravindra Prasad Baral
Keyword(s):  
Corporate Governance ◽  
Panel Data ◽  
Least Squares ◽  
Ownership Structure ◽  
Stock Exchange ◽  
Listed Companies ◽  
Ownership Concentration ◽  
Data Set ◽  
Listed Firms ◽  
And Performance

The paper attempts to analyze relationships among corporate governance, ownership structure and firm performance in Nepal. The study comprises of panel data set of 25 firms listed at Nepal Stock Exchange (NEPSE) covering a period of five years from 2012 to 2016. The econometric methodology for the study consists primarily of least squares dummy variable (LSDV) model, fixed and random effects panel data models and two-stage least squares (2SLS) model. The study finds bi-directional relationship between corporate governance and performance. Among corporate governance internal mechanisms; smaller board size, higher proportion of independent directors, reducing ownership concentration, improving standards of transparency and disclosure, and designing appropriate director compensation package are important dimensions that listed firms and regulators in Nepal should focus on. Ownership concentration is found to have positive effect on performance; however, it affects corporate governance negatively. This study raises understanding and provides empirical evidence for endogenous relationship between corporate governance and performance and offers support for principal-principal agency relationship. The results of this study lead to several practical implications for listed firms as well as policymakers of Nepal in promoting sound corporate governance practices and codes. For listed companies, the improvement in compliance with a code of corporate governance or voluntary adoption of best practices can provide a means of achieving improved performance.

scholarly journals Top managers’ compensation and governance in Spanish firms: Evidence and reflections

2011 ◽  
Vol 7 (1) ◽  
pp. 87-98
Author(s):  
Gregorio Sanchez-Marin
Keyword(s):  
Board Of Directors ◽  
Ownership Structure ◽  
Multiple Roles ◽  
High Concentration ◽  
Strong Stimulus ◽  
Listed Firms ◽  
Top Managers ◽  
The Board Of Directors ◽  
Conflicting Interests ◽  
High Level

In Spanish listed firms, taking into account the predominant modes of ownership structure, which are characterized by a high concentration of shares in the hands of a few shareholders who are strongly represented on the board of directors, it might suppose that there are strong stimulus for a close top managers’ supervision and a straight interest alignment. However, the empirical evidence indicates the opposite, and this paradox needs to be explained within the theoretical framework of institutional theory. The high concentration of ownership and the high level of cross-holdings generate conflicting interests by those who have multiple roles as directors and top managers, suggesting that board’s supervisory effectiveness may be compromised by social pressures in search of legitimacy. These features of Spanish firms are undermining governance mechanisms, and may explain the high pay levels, the low variable packages and, in general, the lack of connection between top managers’ compensation and firm performance in comparison with those in other countries of Continental Europe.

Beyond Diversity: A Tale of Faultlines and Frictions in the Board of Directors

2017 ◽  
Vol 93 (2) ◽  
pp. 339-367 ◽  
Author(s):  
Mathijs Van Peteghem ◽  
Liesbeth Bruynseels ◽  
Ann Gaeremynck
Keyword(s):  
Board Of Directors ◽  
Unintended Consequences ◽  
Board Effectiveness ◽  
Board Diversity ◽  
Listed Firms ◽  
Regulatory Governance ◽  
The Board Of Directors ◽  
Cohesive Group ◽  
Jel Classifications ◽  
Diversity Structure

ABSTRACT Various regulatory governance initiatives have strived for board diversity, as diversity stimulates creativity, encourages discussion, and enlarges the board's knowledge base. However, increased diversity results in superior decision-making only when the board is free from conflicts and acts as a cohesive group. In this paper, we extend existing corporate governance research by introducing faultline theory to the board of directors (Lau and Murnighan 1998). The idea is to show how a board's diversity structure can give rise to the formation of subgroups along faultlines. The resulting subgroup formation may, in turn, reduce board effectiveness. Using a sample of U.S.-listed firms between 2008 and 2012, results suggest that boards with strong faultlines are associated with lower firm performance, lower CEO turnover-performance sensitivity, and higher abnormal CEO compensation. Understanding potential unintended consequences of board diversity could be of interest to regulators and companies that plan to appoint new directors to the board. JEL Classifications: G30; G38; D70; M41.

scholarly journals Ownership Structure and Dividends Policy: Emerging Market Evidence

2018 ◽  
Vol 11 (6) ◽  
pp. 65
Author(s):  
Ahmad N. Obaidat
Keyword(s):  
Board Of Directors ◽  
Ownership Structure ◽  
Positive Relationship ◽  
Stock Exchange ◽  
Emerging Market ◽  
Negative Relationship ◽  
Ownership Concentration ◽  
Financial Firms ◽  
Amman Stock Exchange ◽  
The Board Of Directors

This study investigated the effect of ownership structure on the dividend policy of the financial firms listed on Amman Stock Exchange (ASE) for the period 2014-2016. The results indicated a positive relationship between dividend and institutional, managerial, and foreign ownership, and negative relationship between dividend and ownership concentration. The result also indicated that a large portion of the ownership is in the hand of the instructions and the board of directors, and the ownership is not highly concentrated.

scholarly journals The ownership structure, the board of directors and the quality of accounting information

2013 ◽  
Vol 10 (4) ◽  
pp. 420-433 ◽  
Author(s):  
Nejla Ould Daoud Ellili
Keyword(s):  
Board Of Directors ◽  
Financial Reporting ◽  
Ownership Structure ◽  
Accounting Information ◽  
Poor Quality ◽  
Annual Data ◽  
Quality Of Accounting Information ◽  
The Board Of Directors ◽  
Recent Financial Crisis

High quality accounting information is vital for the accuracy of the financial statements, whereas poor quality information may lead to serious economic problems. The recent financial crisis has attracted the interest of many researchers in determining the factors that may affect the quality of accounting information. In this field, our research investigates the possible impact of the ownership structure and of the make-up of the board of directors on the quality of accounting information, using annual data from 29 companies listed on the Abu Dhabi Securities Exchange in 2008 and 2009. The actual research starts by presenting an appropriate measure of the quality of the accounting information, then developing a model explaining the relationship between the ownership structure, the board of directors and the quality of the accounting information. In the light of our results, we will be able to provide recommendations for helping the companies improve the quality of their financial reporting.

scholarly journals Board of Directors as a Strategic Sparring Partner

2021 ◽  
pp. 41-43
Author(s):  
Roman Lombriser
Keyword(s):  
Board Of Directors ◽  
Scenario Analysis ◽  
Top Management Team ◽  
Management Team ◽  
The Other ◽  
Top Management ◽  
Executive Team ◽  
Strategy Process ◽  
The Board Of Directors ◽  
Pessimistic Scenario

AbstractWhat role can board of directors play in the strategy process of an SME? The case of “Light-Tech” (a luxury lamp producer) shows how. The chairman and several of the other directors had bad feelings about the issue of technology replacement. Contrary to the top management team, they were not convinced that the breakthrough of the new LED technology in the market was still far away. To address this issue, the board of directors—together with the executive team—performed a scenario analysis for about 3 hours. Then, the board requested the top management team to formulate a precautionary strategy which much better prepares the SME for the pessimistic scenario. Result: 2 years later, the pessimistic scenario reveals itself as reality. By performing a scenario analysis together with the top management team, the board of directors were able to play an important role as constructive sparring partners.

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