scholarly journals Evidence from 1992 to 2019 on the dynamics of managerial authority and CEO remuneration during company crises

2022 ◽  
Vol 10 (4) ◽  
Author(s):  
Chin Tae Zan
Keyword(s):  
Board Of Directors ◽  
Ceo Compensation ◽  
Secular Trends ◽  
Managerial Incentive ◽  
Management Board ◽  
Strong Trend ◽  
Managerial Authority ◽  
The Board Of Directors ◽  
Matching Estimator ◽  
The Impact

We investigate the dynamics of two governance constructs, management influence over the board of directors and CEO remuneration, in enterprises in crisis from 1992 to 2019. Data reveal a strong trend of improving governance over time, which confounds the conclusion concerning the impact of distress on governance. Using a bias-corrected matching estimator to control for secular trends, we find that distressed businesses cut management board appointments and CEO compensation, deepen managerial incentive alignment, and increase CEO turnover. The performance-related component of CEO remuneration accounts for the majority of changes in CEO compensation in troubled businesses, which is consistent with the "shareholder value" perspective on CEO compensation.

Women on the board of directors and corporate tax aggressiveness in Australia

2016 ◽  
Vol 29 (3) ◽  
pp. 313-331 ◽  
Author(s):  
Grant Richardson ◽  
Grantley Taylor ◽  
Roman Lanis
Keyword(s):  
Board Of Directors ◽  
Selection Bias ◽  
Tax Avoidance ◽  
Multivariate Regression Analysis ◽  
Corporate Tax ◽  
Content Type ◽  
Tax Aggressiveness ◽  
Self Selection ◽  
The Board Of Directors ◽  
The Impact

Purpose This paper aims to investigate the impact of women on the board of directors on corporate tax avoidance in Australia. Design/methodology/approach The authors use multivariate regression analysis to test the association between the presence of female directors on the board and tax aggressiveness. They also test for self-selection bias in the regression model by using the two-stage Heckman procedure. Findings This paper finds that relative to there being one female board member, high (i.e. greater than one member) female presence on the board of directors reduces the likelihood of tax aggressiveness. The results are robust after controlling for self-selection bias and using several alternative measures of tax aggressiveness. Research limitations/implications This study extends the extant literature on corporate governance and tax aggressiveness. This study is subject to several caveats. First, the sample is restricted to publicly listed Australian firms. Second, this study only examines the issue of women on the board of directors and tax aggressiveness in the context of Australia. Practical implications This research is timely, as there has been increased pressure by government bodies in Australia and globally to develop policies to increase female representation on the board of directors. Originality/value This study is the first to provide empirical evidence concerning the association between the presence of women on the board of directors and tax aggressiveness.

scholarly journals The Impact of Corporate Governance Characteristics on the of Financial Distress

2016 ◽  
Vol 3 (2) ◽  
pp. 162
Author(s):  
Mahdi Filsaraei ◽  
Reza Jarrahi Moghaddam
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Financial Distress ◽  
Financial Statements ◽  
Multivariate Regression Analysis ◽  
Company Stock ◽  
Governance Indicators ◽  
The Board Of Directors ◽  
Qualified Audit Opinion ◽  
The Impact

Given the importance of corporate governance for increasing the monitoring of company operations, i.e., reducing information asymmetry and increasing control over operations, in this study, we investigate some indicators of corporate governance and financial distress as one of the most important criteria in the decisions of the users of financial statements. Corporate governance Indicators that have been mentioned in this study, including the independence of the board of directors (the ratio of non-executive members), institutional investors and duality of CEO and Chairman of the Board of Directors. This study is applied research and the required information is gathered from financial statements of listed companies on the TSE. Using a sample of 82 company stock during the period 2010-2014 and multivariate regression analysis, the results of the analysis of information gathered indicates that institutional ownership reduces the financial distress. However, there was no significant relationship between board independence (proportion of outside board members) and the duality of CEO and Chairman of the Board with the financial distress. The results also indicate that financial leverage and a qualified audit opinion increases financial distress and firm size and management performance reduces it.

Financial soundness of Islamic banks: does the structure of the board of directors matter?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Afef Khalil ◽  
Imen Ben Slimene
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Islamic Banks ◽  
Z Score ◽  
Data Set ◽  
Content Type ◽  
Additional Hypothesis ◽  
The Board Of Directors ◽  
Financial Soundness ◽  
The Impact

Purpose The purpose of this paper is to examine the Board of Directors’ characteristics and their impact on the financial soundness of Islamic banks. Design/methodology/approach Regression analysis is applied to test the impact of the Board of Directors’ characteristics on the financial soundness of Islamic banks, using a panel data set of 67 Islamic banks covering 20 countries from 2005 to 2018. The Z-score indicator is used to evaluate the Islamic banks’ soundness. To check the robustness of the results, this paper uses other dependent variables (CAMEL) than the Z-score. Findings The main results show that the presence of an independent non-executive director negatively impacts the financial soundness of Islamic banks, while the chief executive officer duality practice has a positive effect on it. Other characteristics of the Board of Directors do not significantly impact the financial soundness of Islamic banks (foreign director, institutional director, chairman with a Shari’ah degree, interlocked chairman and the Board of Directors’ size). Practical implications This study aims to fill the gaps in the literature that discuss the Board of Directors’ role in corporate governance and its impact on the financial soundness of Islamic banks. In other words, it shows the role played by the Board of Directors and improves the knowledge of the corporate governance-financial soundness relationship. Plus, managers, investors and regulators may gain evocative insights, particularly those looking to improve their Islamic banks’ soundness by restructuring their boards’ composition. Originality/value This study sheds new light on the literature on Islamic banking by clarifying the relationship between the Board of Directors and the financial soundness of Islamic banks. Contrary to previous research, this paper uses an additional hypothesis stating that a chairman with a Shari’ah degree (Fiqh Muamalt) has a positive impact on the financial soundness of Islamic banks.

scholarly journals Composition and Activity of the Board of Directors: Impact on ESG Performance in the Banking System

2018 ◽  
Vol 10 (12) ◽  
pp. 4699 ◽  
Author(s):  
Giuliana Birindelli ◽  
Stefano Dell’Atti ◽  
Antonia Iannuzzi ◽  
Marco Savioli
Keyword(s):  
Board Of Directors ◽  
Fixed Effects ◽  
Critical Mass ◽  
Banking System ◽  
The United States ◽  
Fixed Effects Panel Regression ◽  
The Board Of Directors ◽  
Corporate Social ◽  
The Impact

A growing body of research suggests that the composition of a firm’s board of directors can influence its environmental, social and governance (ESG) performance. In the banking industry, ESG performance has not yet been explored to discover how a critical mass of women on the board of directors affects performance. This paper seeks to fill this gap in the literature by testing the impact of a critical mass of female directors on ESG performance. Other board characteristics are accounted for: independence, size, frequency of meetings and Corporate Social Responsibility (CSR) sustainability committee. We use fixed effects panel regression models on a sample of 108 listed banks in Europe and the United States for the period 2011–2016. Our main empirical evidence shows that the relationship between women on the board of directors and a bank’s ESG performance is an inverted U-shape. Therefore, the critical mass theory for banks is not supported, confirming that only gender-balanced boards positively impact a bank’s performance for sustainability. There is a positive link between ESG performance and board size or the presence of a CSR sustainability committee, while it is negative with the share of independent directors. With this work, we stress the key role of corporate governance principles in banks’ ESG performance, with relevant implications for both banks and supervisory authorities.

The impact of board characteristics on corporate investment decisions: an empirical study

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ben Kwame Agyei-Mensah
Keyword(s):  
Regression Analysis ◽  
Board Of Directors ◽  
Investment Decisions ◽  
Corporate Investment ◽  
Independent Directors ◽  
Investment Efficiency ◽  
Content Type ◽  
Board Characteristics ◽  
The Board Of Directors ◽  
The Impact

Purpose The purpose of this study is to investigate the influence of board characteristics on firms’ investment decisions. Design Methodology Approach The study used data sourced from annual reports of firms listed on the Ghana Stock Exchange from 2014 to 2018. Descriptive analysis was performed to provide the background statistics of the variables examined. This was followed by a regression analysis which forms the main data analysis. Findings The multiple regression analysis results indicated that the proportion of independent directors and financial experts on the board are negatively related to firm investment. These findings imply that independent directors and financial experts on the board can help firms reduce overinvestment and improve investment efficiency. Originality Value The extant literature shows that the board of directors are an effective mechanism to reduce agency problems in firm decisions and operating performance. However, there has been little research on the role of the board of directors in corporate investment policy.

Editorial

2014 ◽  
Vol 27 (1) ◽  
pp. 2-9
Author(s):  
Enrique Ogliastri
Keyword(s):  
Board Of Directors ◽  
Growth Strategies ◽  
Business Growth ◽  
Content Type ◽  
Mining Companies ◽  
The Board Of Directors ◽  
Growth Method ◽  
Herd Behaviour ◽  
The Impact ◽  
Los Grupos

Abstract In this issue we present seven articles originally from Canada, Chile, Colombia and Spain. The articles are of diverse subjects: first, some herd behaviour of the institutional investors in Chile; second, the impact of growth strategies and the company's resources on the business growth method; third, the effectiveness of the norms on the directives of the remuneration committee of the board of directors on the appropriate remuneration of the directors; fourth, the incidence of the behaviour of the stakeholders in the failure of the companies; fifth, barriers and options to increase the female workforce in mining companies; sixth, the factors that impulse the exporting behaviour of companies; and seventh, the impact of the design of a product in the buying intention of the consumers. All the articles, including those written in Spanish or Portuguese, are available in English. Resumen En este número presentamos siete artículos provenientes de Canadá, Chile, Colombia y España. Los artículos tienen temáticas muy diversas: 1) algunos comportamientos en manada de los inversores institucionales en Chile; 2) El impacto de la estrategia de crecimiento y de los recursos de la empresa en el método de crecimiento empresarial; 3) La efectividad de las normas sobre la Comisión de Remuneraciones de los Consejos directivos sobre la remuneración apropiada de los consejeros; 4) La incidencia del comportamiento de los grupos involucrados (stakeholders) en el fracaso de las empresas; 5) Barreras y opciones para incrementar la fuerza laboral femenina en las empresas mineras; 6) Los factores que impulsan el comportamiento exportador de las empresas; y 7) El impacto del diseño de un producto en la intención de compra de los consumidores. Todos los artículos, aún los escritos en español o portugués, están disponibles en inglés.

scholarly journals The Impact of Audit Committee Characteristics on Environmental and Social Disclosures

2019 ◽  
Vol 8 (3) ◽  
pp. 111-121 ◽  
Author(s):  
Ali Altuğ Biçer ◽  
Imad Mohamed Feneir
Keyword(s):  
Board Of Directors ◽  
Financial Reporting ◽  
Audit Committee ◽  
Good Image ◽  
The Board Of Directors ◽  
Important Means ◽  
Societal Impacts ◽  
The Impact

The main reasons for corporate participation in environmental and social disclosure are stability, development, and continuity through participation in protecting the environment and optimizing the use of available resources. As well as the company practices and participation in society of the most important means to create a good image of the company in the community. There is a rise demand for companies to take accountability for their environmental and societal impacts. A core role of the Audit Committee (AC) is to help the board of directors in overseeing the company's reporting policy and oversees the quality of financial reporting in the company. This study examined the impact of audit committee characteristics on the level of environmental and social disclosures in listed banks in Borsa Istanbul. The results of the study showed that there is no statistically significant relationship between the characteristics of the audit committee and the environmental and social disclosures. Consequently, these characteristics have no effect on the volume or type of disclosure and their inability to predict them.

scholarly journals New Zealand CEO compensation factors

2009 ◽  
Vol 6 (4) ◽  
pp. 47-53 ◽  
Author(s):  
Sam Hurst ◽  
Ed Vos
Keyword(s):  
New Zealand ◽  
Board Of Directors ◽  
Firm Size ◽  
Significant Relationship ◽  
Ceo Compensation ◽  
Board Members ◽  
Effective Factors ◽  
The Board Of Directors ◽  
Size Firm ◽  
Determining Factor

This paper analyses a combination of factors to try and determine whether they explain CEO compensation, and in turn help determine what makes the board of directors more effective. Factors include busy boards, local or international board members, dependent and not independent board members, director’s pay and tenure variables. Of the new and old factors considered in this approach and using a sample size of 31 NZ firms over the 2006/2007 years, a correlation existed between firm size/firm performance and CEO compensation. Further distinctions in regards to busy boards showed no significant relationship to CEO compensation, differing from previous studies, and casting doubt on whether it matters how busy the board is. Also the locality of the board was not a determining factor in CEO compensation.

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