Team Locus-of-Control Composition, Leadership Structure, Information Acquisition, and Financial Performance: A Business Simulation Study

Corporate Governance gained prominence in Malaysia during the Asian financial crisis of 1997, which operated as a wake up call that the existing corporate governance structures in public listed companies were insufficient. In response, Kuala Lumpur Stock Exchange issued the Listing Requirements on 22 January 2001 to regain investors’ confidence and attract foreign direct investments. The Listing Requirements included a Code of Best Practices in Corporate Governance that favours the leadership structure of separate Chairman/Chief Executive Officer posts. Malaysia is a multi-racial country comprising predominantly of the indigenous Malays, the Chinese and the Indians. The Chinese in Malaysia continue to play a significant role in the economy. These Chinese practise a distinctive Chinese business culture in the running of their businesses. The literature reveals that the adoption of the prescribed leadership structure of separating the Chairman and Chief Executive Officer positions is not likely to improve the financial performance of Chinese controlled companies. An empirical research is conducted, using 218 Chinese controlled public listed companies in Malaysia. The data covered three years from 2001 to 2003. Financial performances of the companies were measured using return on equity, earnings per share, dividend per share, liquid asset per share and gross margin. t-test and Mann Whitney test were used. The results show that there has been widespread adoption of the leadership structure recommended under the Code by the sample companies. The results also show that adoption of the prescribed leadership structure under the Code has no significant impact on the financial performance of the sample companies.

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The Effect of Media Competition on Analyst Forecast Properties: Cross-Country Evidence

Journal of Accounting Auditing & Finance ◽

10.1177/0148558x20929487 ◽

2020 ◽

pp. 0148558X2092948

Author(s):

Ying Cao ◽

Sami Keskek ◽

Linda A. Myers ◽

Albert Tsang

Keyword(s):

Financial Performance ◽

Information Acquisition ◽

Institutional Ownership ◽

Analyst Forecasts ◽

Information Environment ◽

Analyst Forecast ◽

International Setting ◽

Acquisition Costs ◽

Cross Country ◽

Effects Of Media

We examine the effect of media competition on analyst forecast properties in an international setting using 113,436 firm-year observations from 32 countries spanning 2000 through 2012. We find that firms in countries with stronger media competition enjoy more accurate, less optimistically biased, and less dispersed analyst forecasts. The effects of media competition on the properties of analyst forecasts are stronger for firms with lower institutional ownership, for firms followed by fewer analysts or by analysts from smaller brokerage houses, and for firms with weaker financial performance. This suggests that media competition plays a more pronounced role in shaping the information environment when information from nonmedia channels is likely to be limited or of lower quality. Finally, we find that analysts in countries with stronger media competition tend to follow more firms, suggesting that stronger media competition reduces analysts’ information acquisition costs, which in turn, improves the properties of their forecasts.

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Application of human factors to improve usability of clinical decision support for diagnostic decision-making: a scenario-based simulation study

BMJ Quality & Safety ◽

10.1136/bmjqs-2019-009857 ◽

2019 ◽

Vol 29 (4) ◽

pp. 329-340

Author(s):

Pascale Carayon ◽

Peter Hoonakker ◽

Ann Schoofs Hundt ◽

Megan Salwei ◽

Douglas Wiegmann ◽

...

Keyword(s):

Decision Making ◽

Decision Support ◽

Clinical Decision Support ◽

Simulation Study ◽

Information Acquisition ◽

Clinical Decision ◽

Emergency Physicians ◽

Web Based ◽

Diagnostic Decision ◽

Diagnostic Decision Making

ObjectiveIn this study, we used human factors (HF) methods and principles to design a clinical decision support (CDS) that provides cognitive support to the pulmonary embolism (PE) diagnostic decision-making process in the emergency department. We hypothesised that the application of HF methods and principles will produce a more usable CDS that improves PE diagnostic decision-making, in particular decision about appropriate clinical pathway.Materials and methodsWe conducted a scenario-based simulation study to compare a HF-based CDS (the so-called CDS for PE diagnosis (PE-Dx CDS)) with a web-based CDS (MDCalc); 32 emergency physicians performed various tasks using both CDS. PE-Dx integrated HF design principles such as automating information acquisition and analysis, and minimising workload. We assessed all three dimensions of usability using both objective and subjective measures: effectiveness (eg, appropriate decision regarding the PE diagnostic pathway), efficiency (eg, time spent, perceived workload) and satisfaction (perceived usability of CDS).ResultsEmergency physicians made more appropriate diagnostic decisions (94% with PE-Dx; 84% with web-based CDS; p<0.01) and performed experimental tasks faster with the PE-Dx CDS (on average 96 s per scenario with PE-Dx; 117 s with web-based CDS; p<0.001). They also reported lower workload (p<0.001) and higher satisfaction (p<0.001) with PE-Dx.ConclusionsThis simulation study shows that HF methods and principles can improve usability of CDS and diagnostic decision-making. Aspects of the HF-based CDS that provided cognitive support to emergency physicians and improved diagnostic performance included automation of information acquisition (eg, auto-populating risk scoring algorithms), minimisation of workload and support of decision selection (eg, recommending a clinical pathway). These HF design principles can be applied to the design of other CDS technologies to improve diagnostic safety.

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Corporate Governance Structures and Performance of Firms in Asian Markets: a Comparative Analysis Between Singapore and Vietnam

Organizations and Markets in Emerging Economies ◽

10.15388/omee.2016.7.2.14210 ◽

2016 ◽

Vol 7 (2) ◽

pp. 112-140 ◽

Cited By ~ 6

Author(s):

Nguyen Van Tuan ◽

Nguyen Anh Tuan

Keyword(s):

Corporate Governance ◽

Comparative Analysis ◽

Financial Performance ◽

Size Composition ◽

Governance Structures ◽

Country Level ◽

Performance Effects ◽

Leadership Structure ◽

Cross Country ◽

And Performance

A cross-country comparative analysis of corporate governance structures and financial performance of publicly listed companies in Singapore and Vietnam, covering a four-year period from 2008 to 2011, is undertaken in this study. More specifically, the similarities and differences in the corporate governance structures and financial performance of the companies are compared and interpreted in the institutional context of each market. On an average basis, we find that the size, composition and diversity of the boards in these two markets are statistically significantly different. In contrast, there is no statistical evidence to reject the similarities in ownership structure, board leadership structure, and financial performance between the firms of the two markets. In addition, our comparative analysis on the corporate governance structures–financial performance nexus also reveals that the performance effects of corporate governance structures vary significantly between the two markets, thus supporting the view that the performance effects of corporate governance structures are country-specific. Our findings suggest that country-level characteristics should be captured when modelling the corporate governance–firm performance relationship in cross-country comparative corporate governance research.

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Independent Directors, Board Leadership Structure and Corporate Financial Performance: Evidence from Jordan

International Journal of Academic Research in Accounting Finance and Management Sciences ◽

10.6007/ijarafms/v10-i3/7852 ◽

2020 ◽

Vol 10 (3) ◽

Author(s):

Dea’a Al-Deen Omar Al-Sraheen

Keyword(s):

Financial Performance ◽

Independent Directors ◽

Corporate Financial Performance ◽

Board Leadership ◽

Leadership Structure ◽

Board Leadership Structure

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CORPORATE BOARD SIZE AND FINANCIAL PERFORMANCE OF PRIVATE LIMITED COMPANIES IN UGANDA

International Journal of Business Strategies ◽

10.47672/ijbs.525 ◽

2020 ◽

Vol 5 (1) ◽

pp. 1

Author(s):

John Rwakihembo ◽

Nixon Kamukama ◽

Fredrick Kijjambu Nsambu

Keyword(s):

Financial Performance ◽

Boards Of Directors ◽

Pearson Correlation ◽

Cross Sectional Study ◽

Corporate Board ◽

Board Size ◽

Cross Sectional ◽

Private Companies ◽

Leadership Structure ◽

Regression Techniques

The purpose-The paper seeks to compare the corporate board size and the financial performance of private companies in Uganda.Methodology-The paper adopted a positivist paradigm besides a cross-sectional study design. Researchers gathered quantitative data from 394 companies in Western and Central Uganda. An open questionnaire was administered to board members and executives from companies. Pearson correlation and standard regression techniques were used for data analysis.Findings-A significant positive relationship between the performance of the firm and the board size among private companies was established from the findings.Unique Contribution to Practice and Policy-This study will provide a precise and direct understanding of the relationship between board size and performance.The practical implications-The study recommends that private companies should recruit large boards of directors due to their diversified skills and connections that increase firm value.Research limitations-The study falls short of examining the influence of other characteristics of the board, such as composition, and leadership structure, on financial performance but solely concentrates on the board size. Besides, it was cross-sectional and generalized all private companies without considering industry-specific factors that could have changed the results.Originality/value-This is the first study that focuses on exploring the comparison between the corporate board size and the financial performance of private companies in Uganda.

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The joint effect of board characteristics on financial performance

Review of Accounting and Finance ◽

10.1108/raf-03-2013-0029 ◽

2015 ◽

Vol 14 (1) ◽

pp. 20-40 ◽

Cited By ~ 16

Author(s):

Hayam Wahba

Keyword(s):

Corporate Governance ◽

Financial Performance ◽

Joint Effect ◽

Governance Mechanisms ◽

Content Type ◽

Board Characteristics ◽

Corporate Governance Mechanisms ◽

Leadership Structure ◽

Board Leadership Structure ◽

The Relationship

Purpose – This paper aims to investigate the joint effect of board characteristics on financial performance. Most of the existing literature implicitly assumes that the relationship between either board composition, or board leadership structure and financial performance is direct. Design/methodology/approach – The generalized least squares method was performed as a panel data analysis on a sample of 40 Egyptian listed firms during the period from 2008 to 2010. Findings – The results demonstrated that under board leadership structure that assigns the duties of the CEO and chairman to the same person, increasing the proportion of non-executive members to the total number of directors has a negative impact on firm financial performance. Practical implications – First, corporate governance structures do not operate in a vacuum, and therefore, corporate governance mechanisms must be considered and assessed altogether. Second, failure to understand the underlying interdependency among corporate governance mechanisms may result in arguments that blame some corporate governance designs for poor financial performance. Third, there is no single board governance mechanism that can be considered ideal, but there are combinations of these mechanisms that are preferred. Originality/value – The paper adds to the corporate governance literature by providing empirical evidence from the emerging market of Egypt. The evidence shows that the relationship between board characteristics and financial performance is not a monotonic relationship. Consequently, these findings imply that existing evidence explaining the relationship between board characteristics and financial performance needs to be interpreted with some caution.

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Are listed firms better governed? Empirical evidence on board structure and financial performance

Corporate Ownership and Control ◽

10.22495/cocv13i1c7p2 ◽

2015 ◽

Vol 13 (1) ◽

pp. 736-755 ◽

Cited By ~ 8

Author(s):

Cesario Mateus ◽

Thomas Hall ◽

Irina B. Mateus

Keyword(s):

Financial Performance ◽

Prima Facie ◽

Board Structure ◽

Outside Directors ◽

Firm Level ◽

Listed Firms ◽

Board Characteristics ◽

Leadership Structure ◽

The Relationship ◽

Unlisted Firms

We examine the relationship among board characteristics (network centrality, leadership structure, outsider participation, portion of male directors, director age, and presence of financial experts) and firm-level financial performance (cash holdings, leverage, ROA, risk, and risk-adjusted return). Our data encompass firms from eight countries during 2003-2012. Unlisted firms are smaller and have less leverage. Despite the fact that unlisted firms have prima facie better average governance (they are less likely to have an executive chair (or CEO as chair of the board) and a higher average portion of outside directors), they exhibit worse risk-adjusted returns. Higher levels of director connectedness (centrality) are generally associated with more observable entrenchment (more cash, less leverage), whereas other board characteristics do not show clear relationships with entrenchment. Our findings are consistent with the view that firmly established CEOs are willing and able to pack the board with qualified and connected members, who nevertheless do not act to constrain CEO entrenchment. This is true for both listed and unlisted firms

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The Impact of CEO Duality and Financial Performance on CSR Disclosure: Empirical Evidence from State-Owned Enterprises in China

Journal of Risk and Financial Management ◽

10.3390/jrfm15010037 ◽

2022 ◽

Vol 15 (1) ◽

pp. 37

Author(s):

Cosmina Voinea ◽

Fawad Rauf ◽

Khwaja Naveed ◽

Cosmin Fratostiteanu

Keyword(s):

Financial Performance ◽

Negative Relationship ◽

Chief Executive ◽

Public Enterprises ◽

Ceo Duality ◽

Leadership Structure ◽

Csr Disclosure ◽

Corporate Social ◽

The Impact

: This paper studies the effects of a firm’s financial performance (FP) and chief executive officer’s (CEO) duality on the quality of corporate social responsibility (CSR) disclosure in the context of state-owned enterprises (SOEs) among Chinese A-share-registered companies. The results depict a negative relationship between CEO duality and CSR disclosure. Our results demonstrate that better-performing firms disclose CSR information more frequently and of higher quality compared with firms with poor financial performance. This role of financial performance in the quality of CSR disclosure is generally valuable in public enterprises; however, it is relatively sluggish in state-owned enterprises The outcomes indicate that the dual leadership structure reduces assessments and renders CEOs less liable to their stakeholders. Therefore, this study offers valuable information and details for regulators to improve corporate governance and CSR from the perspective of stakeholder theory.

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