Unexplored Linkages between Corporate Governance and IT Governance

2009 ◽  
pp. 202-220
Author(s):  
Michael A. Borth ◽  
Randy V. Bradley
Keyword(s):  
Corporate Governance ◽  
It Governance ◽  
Governance Mechanisms ◽  
Empirical Results ◽  
Firm Governance

This chapter discusses the overall importance of both corporate and IT governance, and demonstrates that IT governance is a very important subcomponent of corporate governance. The authors present a framework, based upon a framework previously presented by Weill and Ross (2004), which should facilitate a strong understanding of the different factors and mechanisms that impact firm governance. A number of interesting empirical results relating to these governance mechanisms are presented within the context of the framework. Finally, the chapter presents a number of examples that link corporate and IT governance. In presenting those linkages, the authors identify a number of areas that should provide fruitful avenues for researchers to explore IT governance as it relates to corporate governance, and vice versa.

scholarly journals HOW DO YOU DISCLOSE? SOME EVIDENCE ON IT GOVERNANCE AND PERFORMANCE IN EUROPEAN BANKING SYSTEM

2019 ◽  
Vol 07 (01) ◽  
pp. 1940002
Author(s):  
IDA CLAUDIA PANETTA ◽  
SABRINA LEO ◽  
FABRIZIO SANTOBONI ◽  
GIANFRANCO VENTO
Keyword(s):  
Corporate Governance ◽  
Banking System ◽  
It Governance ◽  
Public Disclosure ◽  
Governance Mechanisms ◽  
Corporate Governance Mechanisms ◽  
European Banking ◽  
And Performance ◽  
Governance Transparency ◽  
Governance Disclosure

This paper examines the evolution of the attention paid by a sample of EU banks on IT governance. We propose an analysis based on IT public disclosure to contribute to the less explored strand of literature on IT governance transparency. We explore if the attention paid by banks to this topic has grown after the crises and if the greater importance ascribed to IT governance is due to the Supervisors’ pressure or the value-driven decisions. In particular, we test if, as for other corporate governance mechanisms, there is a verifiable linkage between IT governance (disclosure) and banks’ performance.

scholarly journals O efeito da competência de tecnologia da informação do conselho de administração no desempenho organizacional percebido

2020 ◽  
Author(s):  
◽  
Rubens Sant'Anna Junior
Keyword(s):  
Corporate Governance ◽  
Organizational Performance ◽  
Board Of Directors ◽  
It Governance ◽  
Positive Influence ◽  
Governance Mechanisms ◽  
Publicly Traded ◽  
Technology Competence ◽  
The Board Of Directors

The purpose of this thesis is to examine the relationship between the Board's Information Technology Competence (CTIC) and the perceived organizational performance of the company (DO), and whether this relationship can be mediated by the mechanisms of IT governance (MGTI) and by the IT governance level of the board (NGTIC). The study proposes a conceptual research model built by reviewing the literature on corporate governance and IT management. For this, a quantitative survey was carried out with 204 members of the board of publicly traded and closed Brazilian companies. The results showed that the IT competence of the board has a positive influence in relation to the perceived organizational performance, and that the IT governance mechanisms are important tools of the board of directors, depending on the degree with which they are implemented, and that they are also positively associated to perceived organizational performance. On the contrary, the board's level of IT governance did not show a positive result in influencing perceived organizational performance, requiring the mediation of IT governance mechanisms to achieve some significance in the model. These results signal a gap in the role of monitoring and involvement of corporate governance in IT governance exercised by the members of the board of directors

scholarly journals Is corporate governance of private equity targets more effective for risk mitigation?

2021 ◽  
Author(s):  
Vladimiro Marini ◽  
Massimo Caratelli ◽  
Gian Paolo Stella ◽  
Ilaria Barbaraci
Keyword(s):  
Corporate Governance ◽  
Agency Theory ◽  
Financial Distress ◽  
Private Equity ◽  
Risk Mitigation ◽  
Governance Mechanisms ◽  
Active Monitoring ◽  
Industry Expert ◽  
Corporate Governance Mechanisms

AbstractPrivate equity is a source of finance and a governance device characterised by active monitoring through sponsors that intervene in targets’ corporate governance. As sponsors are skilled and motivated acquirors, we investigated whether corporate governance mechanisms mitigate leveraged targets’ risk of financial distress differently compared to non-acquired companies through the lenses of agency theory and resource-based theories. We found that targets and non-acquired companies are not significantly different in terms of corporate governance features, but sponsors are skilled enough to choose corporate governance members to mitigate risk more, especially when boards are smaller, have busier industry expert directors, and mandate execution to more managers. These results can be useful to targets, targets’ investors and lenders, and policymakers.

Corporate governance, product market competition and firm performance: evidence from Iran

Humanomics ◽  
2017 ◽  
Vol 33 (1) ◽  
pp. 38-55 ◽  
Author(s):  
Mahdi Moradi ◽  
Mohammad Ali Bagherpour Velashani ◽  
Mahdi Omidfar
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Market Competition ◽  
Product Market ◽  
Research Literature ◽  
Product Market Competition ◽  
Governance Mechanisms ◽  
Management Performance ◽  
Content Type ◽  
The Board Of Directors

Purpose The purpose of this study is to investigate the effect of product market competition and corporate governance on firm’s management performance in the Tehran Stock Exchange market. According to the research literature, the governance mechanisms used in this study consist of ownership structure, structure of the board of directors and capital structure. In addition, Herfindahl–Hirschman Index and market size were used to measure the product market competition. Design/methodology/approach This study used one selected sample among the firms in the capital market of Iran from 2004 to 2012. Findings The results of this study indicated that there is a significant relation among the major governance mechanisms (including ownership concentration, independence of the board of directors and debt ratio) and product market competition and management performance. The findings of this study also showed that product market competition is effective on the relation between corporate governance and the performance, and this is what has been ignored in most of the conducted studies. Originality/value In general, the results of this study supported the idea that product market competition is effective on implementation and efficiency of governance mechanisms.

IMPLEMENTATION OF THE VIRTUAL-NETWORK PARADIGM OF CORPORATE GOVERNANCE AT THE ENTERPRISES OF THE FUEL AND ENERGY COMPLEX

2021 ◽  
Vol 4 (8) ◽  
pp. 58-62
Author(s):  
Kamila Zagidullina ◽  
Keyword(s):  
Corporate Governance ◽  
Economic Development ◽  
Functional Approach ◽  
Process Approach ◽  
Virtual Network ◽  
Governance Mechanisms ◽  
Theoretical Substantiation ◽  
Energy Complex ◽  
Corporate Governance Mechanisms ◽  
Market Transformation

The relevance is increasing due to the need for a theoretical substantiation of the directions and mechanism of further market transformation of the fuel and energy complex, taking into account the dependence of the processes and results of its economic development on the effectiveness of corporate governance mechanisms. Key words:economics, fuel and energy complex, corporate governance, functional approach, process approach, virtual-network paradigm, mechanism

scholarly journals Corporate governance and conglomerate diversification strategy – evidence from Vietnam

2018 ◽  
Vol 13 (6) ◽  
pp. 1578-1596 ◽  
Author(s):  
Thi Xuan Trang Nguyen
Keyword(s):  
Corporate Governance ◽  
Stock Exchange ◽  
Board Composition ◽  
Governance Mechanisms ◽  
Content Type ◽  
Unrelated Diversification ◽  
Corporate Governance Mechanisms ◽  
Control Devices ◽  
Interest Alignment ◽  
The Relationship

Purpose The purpose of this paper is to examine the impact of internal corporate governance mechanisms, including interest alignment and control devices, on the unrelated diversification level in Vietnam. Additionally, the moderation of free cash flow (FCF) on these relationships is also tested. Design/methodology/approach The study is based on a balanced panel data set of 70 listed companies in both stock markets, Ho Chi Minh Stock Exchange and Hanoi Stock Exchange, in Vietnam for the years 2007–2014, which gives 560 observations in total. Findings The results show that if executive ownership for CEOs is increased, then the extent of diversification is likely to be reduced. However, the link between unrelated diversification level and executive stock option, another interest alignment device, cannot be confirmed. Among three control devices (level of blockholder ownership, board composition and separation of CEO and chairman positions), the study finds a positive connection between diversification and blockholder ownership, and statistically insignificant relations between the conglomerate diversification level and board composition, or CEO duality. Additionally, this study discovers a negative link between diversification and state ownership, although there is no evidence to support the change to the effect of each internal corporate governance mechanism on the diversification level of a firm between high and low FCF. Practical implications The research can be a useful reference not only for investors and managers but also for policy makers in Vietnam. This study explores the relationship among corporate governance, diversification and firm value in Vietnam, where the topics related to effectiveness of corporate governance mechanisms to public companies has been increasingly attractive to researchers since the default of Vietnam Shipbuilding Industry Group (Vinashin) happened in 2010 and the Circular No. 121/2012/TT-BTC on 26 July 2012 of the Vietnamese Ministry of Finance was issued with regulations on corporate governance applicable to listed firms in this country. Originality/value This research, first, enriches current literature on the relationship between corporate governance and firm diversification. It can be considered as a contribution to the related topic with an example of Vietnam, a developing country in Asia. Second, the research continues to prove non-unification in results showing the relationship between corporate governance and conglomerate diversification among different nations. Third, it provides a potential input for future research works on the moderation of FCF to the effects of corporate governance on diversification.

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