scholarly journals Board Interlocks as a Diffusion of Strategic Information – Does it Work? A Polish Case

2021 ◽  
Vol 26 (4) ◽  
pp. 589-616
Author(s):  
Justyna Światowiec-Szczepańska ◽  
Łukasz Małys
Keyword(s):  
Corporate Governance ◽  
Corporate Culture ◽  
Supervisory Board ◽  
Developed Countries ◽  
The Other ◽  
Strategic Decision ◽  
Western European Country ◽  
Strategic Information ◽  
Interlocking Directorates ◽  
Board Interlocks

Several theories point to the influence of board interlocks on the diffusion of important resources, mainly information. Empirical confirmation of the information functionality of the interlocking directorates network was obtained in the case of network research under the Anglo-Saxon model of corporate governance as well as the continental model in developed countries. Since the early 1990s another model of corporate governance in CEE countries has been developed. The specific determinants of the development of this model do not allow us to unequivocally state similar causes and consequences of interlocking directorates in relation to the most frequently studied western corporate governance models. The aim of this study is to determine the importance managers attach to these relationships within a corporate network as a source of strategic information that is important to the company’s strategic decision-making process, in the context of the Polish governance model. The research employs the case-study method and presents the results of five case studies of companies listed on the Warsaw Stock Exchange. The research, on the one hand, suggests that the network embeddedness of Polish listed companies is of minor significance; on the other hand, it pointed to the existence of two main types of corporate networks: one inwardly directed and focused on supervisory board members’ controlling function performed with a view to protecting the shareholders’ equity ownership, and the other orientated towards external relationships, often distant from the original industry, in order to obtain information that supports new initiatives. What seems to most determine the behaviour of company managers is the corporate culture resulting from the presence of a foreign owner from a Western European country. In general, the findings confirm the importance of the network of interlocking directorates more as an instrument of control than diffusion of strategic information.

Board Interlocks and Diversification Strategies

2019 ◽  
Author(s):  
Christine Shropshire
Keyword(s):  
Decision Making ◽  
Corporate Governance ◽  
Information Exchange ◽  
Strategic Decision ◽  
Strategic Decision Making ◽  
Future Research ◽  
Corporate Structure ◽  
Strategic Issues ◽  
Board Interlocks ◽  
Diversification Strategies

The board of directors serves multiple corporate governance functions, including monitoring management, providing oversight on strategic issues, and linking the organization to the broader external environment. Researchers have become increasingly interested in board interlocks and how content transmitted via these linkages shapes firm outcomes, such as corporate structure and strategies. As influential mechanisms to manage environmental uncertainty and facilitate information exchange, Board interlocks are created by directors who are affiliated with more than one firm via employment or board service and allow the board to capture a diversity of strategic experiences. One critical corporate decision that may be influenced by interlocks and strategic diffusion is diversification (i.e., in which products and markets to compete). Directors draw on their own experiences with diversification strategies at other firms to help guide and manage ongoing strategic decision-making. There is broad scholarship on interlocks and the individuals who create them, with extant research reporting that some firms are more likely to imitate or learn from their interlock partners than others. Prior findings suggest that the conditions under which information is transmitted via interlock, such as an individual director’s experience with diversification strategies at other firms, may make that information more influential to the focal firm’s own strategic decision-making related to diversification. A more holistic framework captures factors related to the individual interlocking director, the board and firm overall and the context surrounding these linkages and relationships, helping to promote future research. Understanding the social context surrounding board interlocks offers opportunities to more deeply examine how these interconnections serve in pursuit of the board’s fundamental purpose of protecting shareholder investment from managerial self-interest. Overall, integrating multi-level factors will offer new insights into the influence of board interlocks on firm strategies on both sides of the partnership. Expanding knowledge of how inter-firm linkages transmit knowledge influential to board decision-making can also improve our understanding of board effectiveness and corporate governance.

scholarly journals Lembaga Pengawas Syariah Dalam Sorotan

2019 ◽  
Vol 7 (1) ◽  
pp. 31-51
Author(s):  
Yovenska L.Man
Keyword(s):  
Corporate Governance ◽  
Financial Institutions ◽  
Supervisory Board ◽  
The Other ◽  
Good Corporate Governance ◽  
Other Hand ◽  
Islamic Financial Institutions ◽  
Implementing Strategies ◽  
The Ideal

Abstract: Islamic financial institutions are currently considered quite significant. However, on the other hand, of course, everything is not free from some shortcomings that should be a concern. Among those questioned, among others, is the role of the Sharia Supervisory Board in terms of implementing Good Corporate Governance (GCG). This paper will focus on discussions regarding planning and implementing strategies towards the Ideal Sharia Supervisory Board

Global Economic Crisis of 2008-2009: Sources and Roots

2009 ◽  
pp. 18-31
Author(s):  
G. Rapoport ◽  
A. Guerts
Keyword(s):  
Oil And Gas ◽  
Trade Deficit ◽  
Developed Countries ◽  
The Other ◽  
Energy Resources ◽  
Market Mechanisms ◽  
Production Output ◽  
The One ◽  
To Receive ◽  
Partial Destruction

In the article the global crisis of 2008-2009 is considered as superposition of a few regional crises that occurred simultaneously but for different reasons. However, they have something in common: developed countries tend to maintain a strong level of social security without increasing the real production output. On the one hand, this policy has resulted in trade deficit and partial destruction of market mechanisms. On the other hand, it has clashed with the desire of several oil and gas exporting countries to receive an exclusive price for their energy resources.

Audit Committee Effectiveness Among Malaysian Listed Companies

2020 ◽  
Author(s):  
Shamsul Nahar Abdullah ◽  
Ku Nor Izah Ku Ismail
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Stock Exchange ◽  
Listed Companies ◽  
The Other ◽  
Interactive Effects ◽  
Committee Chairman ◽  
Kuala Lumpur ◽  
Political Costs ◽  
Leadership Structure

This study investigates further the previous paper by Shamsul Nahar and Al-Murisi (1997) by examining the interactive effects of the variables in that paper and introducing other variables associated with corporate governance and political costs. The present study postulated that percentage of external directors on audit committee interacted with the presence of an accountant on audit committee and with the number of years an audit committee in existence, respectively, to influence audit committee effectiveness. The study also posited that the interaction of the presence of an accountant on audit committee and the number of years an audit committee in existence positively and significantly influenced audit committee effectiveness. Addition. ally, the roles of leadership structure, audit committee chairman, and a firm's size on audit committee effectiveness were also investigated. Using a multiple regression from a sample consisting the Kuala Lumpur Stock Exchange listed companies, results showed that only a firm's size significantly influenced audit committee effectiveness in the predicted direction. Other variables, on the other hand, did not show any significant influence on audit committee effectiveness.  

THE EFFECT OF CORPORATE GOVERNANCE AND CORPORATE CULTURE ON FIRM MARKET VALUE TO IMPROVE FINANCIAL PERFORMANCE

2020 ◽  
Vol 1 (6) ◽  
pp. 930-940
Author(s):  
Fathiyah Fathiyah ◽  
Mufidah Mufidah
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Corporate Culture ◽  
Boards Of Directors ◽  
Audit Committee ◽  
Stock Exchange ◽  
Descriptive Analysis ◽  
Market Value ◽  
Company Performance ◽  
Financial Company

The purpose of this research is to analyze the effect of corporate governance and corporate culture  on firm market value to improve financial performance. Corporate governance  is measured by audit  committee,boards of directors, board meeting and nomination . Corporate culture is measured by Corporate culture promotion While financial  company performance is measured by return on assets.  This research was conducted on companies listed on the Indonesia Stock exchange on indexed LQ 45 for period of 2016-2018. The sample was selected for 25 companies. The method of analysis uses associate descriptive analysis with  path analysis. Based on the results of the study found that corporate governance and culture promotion indirectly effect on financial performance with firm market value as intervening variable.

scholarly journals Do Interlocks Lead to the Convergence of Interfirm Innovation Performance? Evidence From China

SAGE Open ◽  
2021 ◽  
Vol 11 (2) ◽  
pp. 215824402110071
Author(s):  
Ying Teng ◽  
Eli Gimmon ◽  
Wentong Lu
Keyword(s):  
Network Effects ◽  
Demographic Characteristics ◽  
Innovation Performance ◽  
Driving Mechanism ◽  
Interlocking Directorates ◽  
Board Interlocks ◽  
Enterprise Innovation ◽  
New Perspective ◽  
The Relationship ◽  
Level Analysis

We examine how interlocking directorates influence innovation performance differentials between firms. Our study offers a new perspective of the effect of interlocking directorate ties upon innovation performance, focusing on network effects on interfirm performance. Using a sample of China’s listed companies for the period 2012–2016, we empirically examined the relationship between board interlocks and interfirm innovation performance differentials. The results demonstrate that the presence of board interlocks reduces interfirm innovation performance differentials and leads to a convergence of innovation performance between the connected companies. Furthermore, cross-level analysis found that the relationship between board interlocks and interfirm innovation performance differentials is moderated by the interfirm industry attributes and demographic characteristics of the board. This study expands the existing research in explaining the driving mechanism of enterprise innovation performance as affected by interlocking directorate ties.

Pengaruh Dewan Direksi, Dewan Komisaris Independen. Kepemilikan Manajerial, Kepemilikan Institusional, Dan Dewan Pengawas Syariah Terhadap No Performing Financing (Studi Kasus Pada Bank Umum Syariah Yang Terdaftar Di OJK Periode 2015-2019)

2021 ◽  
Vol 2 (2) ◽  
Author(s):  
Yugi Maheswari ES ◽  
Iwan Fakhruddin ◽  
Azmi Fitriati ◽  
Bima Cinintya Pratama
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Commercial Bank ◽  
Financial Services ◽  
Supervisory Board ◽  
Secondary Data ◽  
Institutional Ownership ◽  
Managerial Ownership ◽  
Good Corporate Governance ◽  
The Board Of Directors

Tujuan penelitian ini untuk mengetahui pengaruh penerapan Good Corporate Governance (GCG) yang diproksikan oleh dewan direksi, dewan komisaris independen, kepemilikan manajerial, kepemilikan institusional, dan dewan pengawas syariah terhadap risiko pembayaran yang diukur dengan rasio Non Performing Financing (NPF) pada Bank Umum Syariah. Populasi penelitian adalah Bank Umum Syariah Yang Terdaftar di Otoritas Jasa Keuangan. Data yang digunakan adalah data sekunder berupa laporan tahunan Bank Umum Syariah periode 2015-2019. Sampel yang dikumpulkan adalah 14 bank syariah sebayak 70 data. Hasil penelitian menunjukkan bahwa dewan direksi berpengaruh negative erhadap NPF. Dewan komisaris independen, kepemilikan manajerial, kepemilikan institusional, dan dewan pengawas syariah tidak berpengaruh terhadap NPF.  The purpose of this study is to determine the effect of the implementation of Good Corporate Governance (GCG) which is proxied by the board of directors, the board of independent commissioners, managerial ownership, institutional ownership, and the sharia supervisory board against payment risk as measured by the Non Performing Financing (NPF) ratio at the Bank Sharia General. The study population was a Sharia Commercial Bank Registered at Financial services Authority. The data used was secondary data in the form of reports annual Sharia Commercial Bank for the period 2015-2019. The samples collected were 14 Islamic banks as much as 70 data. The results showed that the board of directors has a negative effect on NPF. Independent board of commissioners, managerial ownership, institutional ownership, and sharia supervisory board have no effect on NPF.

Le grandi imprese nel sistema produttivo italiano

2009 ◽  
pp. 31-39
Author(s):  
Riccardo Gallo
Keyword(s):  
Social Support ◽  
Corporate Governance ◽  
Economic Performance ◽  
Labour Productivity ◽  
Financial Structure ◽  
Jel Classification ◽  
The Other ◽  
Manufacturing Companies ◽  
Economic Outlook

- Based on the analysis of the R&S-Mediobanca survey on multinationals, in 2006 the 17 Italians were small, but not "midgets", as a result of domestic and mostly transnational M&As. In the last ten years, their economic performance and financial structure have been always very sound and in line with the other multinationals. Their labour productivity has been lower than the average, but has improved since 1997. Italian manufacturing multinationals, however, show lower ratios than those of the utilities sector. Given the dire economic outlook worldwide, the Author believes that multinationals, Government and Unions in Italy should provide social support, mostly at labour level, and implement measures aimed at increasing size and productivity, fostering globalisation, and improving corporate governance. Keywords: multinationals, size, ratios, manufacturing companies, utilities, crisis, outlook, social support, corporate governance Parole chiave: multinazionali, dimensione, indicatori, manifatturiere, servizi, crisi, previsioni, ammortizzatori sociali, corporate governance Jel Classification: L25

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