Corporate governance and board diversity strategy: an empirical test of decoupling

PurposeThis paper targets to shed light on the relationship between board characteristics, good corporate governance and the integrated reporting quality (IRQ) and even if this relationship is moderated by the corporate social responsibility.Design/methodology/approachData from a sample of 185 European firms selected from STOXX 600 Index between 2010 and 2019 are used to test the model using panel data and multiple regression. This paper is motivated by using panel data estimated feasible generalized least squares method. A multiple regression model is used to analyze the moderating effect of the corporate social responsibility on the association between board characteristics, good corporate governance and the IRQ.FindingsConsistent with the expectations, the results showed that there is a positive relationship between board independence, board diversity, good corporate governance and IRQ. Furthermore, the findings suggest that moderating effect positively affects the relationship between the board characteristics, good corporate governance and IRQ.Practical implicationsThe results of this study have an impact on policymakers. The presence of women and independent members of the board should be encouraged. This has a positive effect on the availability of high-quality information, able to drive investment levels and stakeholder participation.Originality/valueThis study supports the existing literature. First, it expands the scientific debate on the topic of integrated reporting (IR). Second, it extends the scope of agency theory, which is rarely used to explain IR-related phenomena. This study is one of the first to examine the moderating effect of corporate social responsibility on the association between a set of governance characteristics (i.e. Board independence and board diversity) and integrated reporting adoption.

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Board Diversity: More Than a Gender Issue?

Deakin Law Review ◽

10.21153/dlr2015vol20no1art497 ◽

2015 ◽

Vol 20 (1) ◽

pp. 123 ◽

Cited By ~ 1

Author(s):

Michael Adams

Keyword(s):

Corporate Governance ◽

Gender Diversity ◽

Governance Structure ◽

Share Price ◽

Corporate Boards ◽

Board Diversity ◽

The World ◽

The Usa ◽

The 1960S ◽

The Right

There has been extensive research conducted on the importance of corporate governance around the world. The research seems to demonstrate that, regardless of whether corporations are based in common law or civil code systems, their longevity and sustainability arise from good corporate governance. However, the evidence does not clearly demonstrate a correlation between a particular organisation’s governance structure and practices and its share price. Around the world the question of board diversity is gaining in importance. The beginning of the debate in the 1960s centred on gender. While it is essential to conduct a debate on gender diversity, other aspects of diversity should also be considered. Race, culture and even age may have a direct impact on the performance of a board. Australian companies, particularly those listed on the ASX, have a poor record of instituting any type of diversity. The USA and European Union have a much wider range of policies to promote diversity on corporate boards. The key question is how best to regulate to promote diversity across gender, race, culture and age. The historical approach of regulating diversity by setting targets and requiring disclosure does not seem to have delivered substantial change. Is it the right time to impose mandatory requirements, or are there other alternative strategies? Without doubt change is required, but there will be opposition.

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Corporate governance, ownership and control: A review of recent scholarly research

Corporate Board role duties and composition ◽

10.22495/cbv14i1art4 ◽

2018 ◽

Vol 14 (1) ◽

pp. 50-56 ◽

Cited By ~ 19

Author(s):

Alex Kostyuk ◽

Yaroslav Mozghovyi ◽

Dmytro Govorun

Keyword(s):

Corporate Governance ◽

Corporate Ownership ◽

Board Diversity ◽

Existing Problems ◽

The Past ◽

Corporate Governance Mechanisms ◽

Wide Range ◽

Recent Trends ◽

Performance Auditing ◽

And Control

This manuscript is aimed at highlighting the most recent trends in corporate governance, ownership and control based on the manuscripts presented at the international conference “Corporate Governance, Ownership and Control” that took place in Rome on February 27, 2018. We have also used reputable papers published in the relevant academic journals in the past to support the arguments stated by the authors of the papers, presented at the conference. This paper covers a wide range of corporate governance topics in corporate ownership and control toward corporate governance mechanisms, such as board of directors, the board diversity, directors’ remuneration, firm performance, auditing and accounting, etc. We saw a growing interest of researchers to widen the scope of their major research to link it to corporate ownership and control issues. Currently, corporate governance research follows two major routs: classical empirical corporate governance research and multidisciplinary research aimed at findings non-conventional methods to solution of existing problems.

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Corporate Governance: What Are the Issues?

Advances in Corporate Governance ◽

10.1093/oso/9780198866367.003.0002 ◽

2020 ◽

pp. 10-42

Author(s):

Helmut K. Anheier ◽

Christoph M. Abels

Keyword(s):

Corporate Governance ◽

Global Financial Crisis ◽

Shareholder Primacy ◽

Board Diversity ◽

Corporate Governance Mechanisms ◽

Corporate Governance Codes ◽

History Of ◽

Increasing Demand ◽

The Global Financial Crisis ◽

Corporate Social

Traditionally, corporate governance is about agency problems caused by the division of ownership and control. This chapter moves beyond this understanding. Starting with a theoretical overview, the chapter reviews different approaches to corporate governance and discusses shareholder primacy in light of the increasing demand for corporate social responsibility. Afterwards, a brief history of the development of corporate governance codes is given, followed by the role of corporate governance during the global financial crisis. Different corporate governance mechanisms, such as independent directors, board composition, and member diversity, as well as executive remuneration are subsequently discussed. Problems specific to corporate governance of technology companies are also highlighted, as well as the lessons Germany’s co-determination law can teach for the understanding of board diversity. The chapter concludes with a brief reflection on shareholder primacy, a diversifying corporate world, and the future of corporate governance codes.

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CEO Tenure, Corporate Social Performance, and Corporate Governance: A Korean Study

Sustainability ◽

10.3390/su12010099 ◽

2019 ◽

Vol 12 (1) ◽

pp. 99

Author(s):

Jun Hyeok Choi ◽

Saerona Kim ◽

Ayoung Lee

Keyword(s):

Corporate Governance ◽

Good Governance ◽

Corporate Social Performance ◽

Social Performance ◽

Chief Executive ◽

Ordinary Least Squares ◽

Board Independence ◽

Board Diversity ◽

Ceo Tenure ◽

Corporate Social

The purpose of this study was to examine the association between Chief Executive Officer (CEO) tenure and corporate social performance with the moderating effect of governance. We investigated whether new CEOs and CEOs in their last year of service were more focused on short-termism than CEOs of other periods. Specifically, we tested whether these CEOs reduced social performance that demands immediate expenditure and expect payoffs in the long run. We also tested whether good governance can mitigate such behaviors, because not all CEOs of the same tenure will act the same, depending on the monitoring environments surrounding them. We employed ordinary least squares (OLS) method and the moderator models using data from the Korean listed companies from 2012 to 2016. Test results showed that only the CEOs of their last year reduced social performance. However, when we considered corporate governance, we found that both groups of CEOs reduced social performance, and that good governance mitigated the adverse effects of the two periods on Corporate Social Responsibility (CSR). Specifically, we tested board independence, board frequency, CEO duality, and board diversity, and found that, for all but board independence, the negative effects of the two periods on social performance were decreased.

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Pengaruh Board Diversity Pada Nilai Perusahaan Dalam Perspektif Corporate Governance

E-Jurnal Akuntansi ◽

10.24843/eja.2019.v26.i03.p15 ◽

2019 ◽

pp. 2070 ◽

Cited By ~ 1

Author(s):

Ni Luh Putu Purna Yogiswari ◽

I Dewa Nyoman Badera

Keyword(s):

Corporate Governance ◽

Firm Value ◽

Stock Exchange ◽

Gender Diversity ◽

Educational Background ◽

Manufacturing Companies ◽

Outside Directors ◽

Board Diversity ◽

Chemical Manufacturing ◽

Nationality Diversity

Board composition is one particular issue regarding corporate governance. This study aims to find empirical evidence regarding the effect of board diversity proxied by gender diversity, nationality diversity, educational background, and the proportion of outside directors on firm value. This research was conducted in basic industrial and chemical manufacturing companies listed on the Indonesia Stock Exchange with an observation period of 3 years, those of from 2015-2017. The method of determining the sample uses a purposive sampling. The sample of this study amounted to 39 companies with a total of 117 samples. Based on the results of the analysis, it can be concluded that gender diversity and the proportion of outside directors have no effect on firm value while there is a positive effect between nationality diversity and educational background on firm value. Keywords: Board diversity, corporate governance, and firm value.

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The Value of Board Diversity in the Relationship of Corporate Governance and Investment Decisions of Pakistani Firms

Journal of Open Innovation Technology Market and Complexity ◽

10.3390/joitmc6040146 ◽

2020 ◽

Vol 6 (4) ◽

pp. 146 ◽

Cited By ~ 2

Author(s):

Nauman Iqbal Mirza ◽

Qaisar Ali Malik ◽

Ch Kamran Mahmood

Keyword(s):

Corporate Governance ◽

Positive Impact ◽

Stock Exchange ◽

Panel Data Analysis ◽

Investment Decisions ◽

Board Independence ◽

Board Size ◽

Board Diversity ◽

The Impact ◽

The Relationship

Inspired by the studies on the impact of diversity among decision-making groups, this study was carried out to examine whether the diversity of the members of the board of directors, encompassing gender, nationality, education, and experience, moderates the relationship between the corporate governance and investment decisions of listed companies of the Pakistan Stock Exchange. Furthermore, the determinants of investment decisions in the context of Pakistani firms’ are also explored. Panel data analysis techniques are used to gauge the cause and effect relationship among the variables. We find short-term liquidity and profitability are the determinants of Pakistani firms’ investment decisions, both having adverse relationships. Moreover, we explore board independence, and chief executive officer (CEO) duality has a significant positive impact on investment decisions. We further find that experience diversity strongly moderates the relationship between board independence and board size with investment decisions in the opposite direction. Education diversity moderates the relation of board size and investment decisions in the same direction. Foreign directors’ presence on the board also significantly moderates the relationship between board independence and investment decisions. The results of this empirical study confirm that board diversity moderates the relationship between corporate governance and investment decisions.

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