scholarly journals Influência de Características do Conselho de Administração no Desempenho de Empresas com Board Interlocking

2019 ◽  
Vol 12 (4) ◽  
pp. 645
Author(s):  
Tayse Gomes ◽  
Ilse Maria Beuren ◽  
Ernesto Fernando Rodrigues Vicente
Keyword(s):  
Board Of Directors ◽  
Performance Indicator ◽  
Control Variable ◽  
Ordinary Least Squares ◽  
Positive Influence ◽  
Independent Variables ◽  
The Board Of Directors ◽  
The Subject ◽  
Econometric Tests ◽  
The Impact

A question about the Board of Directors that has been the subject of research is a situation in which two or more companies share one or more administrators, a phenomenon known in the literature as Board Interlocking. In considering this event, the study aims to verify the influence of characteristics of the Board of Directors without the performance of the BM&FBovespa Novo Mercado companies practicing Board Interlocking. From econometric tests, the impact of the characteristics of these members on the value and corporate performance was evaluated. Of the 128 companies listed in the segment, 111 were found indirectly linked by the phenomenon, which represents 87% of the population surveyed, from which the 410 observations on the data of the characteristics of the members were collected. Data analysis was performed with the application of descriptive statistics, Mann-Whitney test, correlation and multiple linear regression – Ordinary Least Squares (OLS). The results showed that at the level of 1% for ROA, and of 5% for Tobin's Q and Market-to-value, performance averages are different for companies that have members of the Board of Directors with ages above and below the average. It was also observed that the Total Assets control variable exerted a significant positive influence on the three independent variables, and that the independent variables analyzed explain 36% of the variations in the performance indicator Q Tobin. Thus, it is concluded that the investigated characteristics of the Board of Directors influenced the performance of these companies.

scholarly journals Board of directors’ characteristics and bank performance: Evidence from the Egyptian banking sector

2020 ◽  
Vol 9 (4) ◽  
pp. 116-125
Author(s):  
Mohamed Hassan Abdel-Azim ◽  
Sabah Soliman
Keyword(s):  
Board Of Directors ◽  
Banking Sector ◽  
Performance Indicator ◽  
Independent Directors ◽  
Bank Performance ◽  
Return On Assets ◽  
Stock Return Volatility ◽  
The Board Of Directors ◽  
Foreign Directors ◽  
The Impact

This paper examines the impact of the board of directors’ characteristics on bank performance in an Egyptian context. Board of directors’ size and composition diversity in terms of gender, nationality, and independence are used as proxies for the board of directors’ characteristics. Bank performance is measured using the return on assets as an accounting-based profitability indicator besides stock return volatility as a market-based performance indicator while controlling for the bank, regulatory and country-specific characteristics. Regression analysis is performed for a sample of 21 Egyptian banks covering the period from 2012 till 2018. The results show that banks with large boards including a high proportion of female and foreign directors achieve higher performance. Also, the higher is the proportion of independent directors, the lower is the performance, which contradicts with the agency theory proponents. Most importantly, the findings provide empirical evidence that market-based performance indicators react negatively to females’ directorship, while the opposite is found with independent directors as reflected in the positive market reaction. The findings are highly relevant since improved financial performance is one of the key objectives of bank supervisors and regulators to sustain economic growth.

Gender diversity, board of director’s size and Islamic banks performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Entissar Elgadi ◽  
Wafa Ghardallou
Keyword(s):  
Board Of Directors ◽  
Gender Diversity ◽  
Career Commitment ◽  
Ordinary Least Squares ◽  
Islamic Banks ◽  
Data Set ◽  
Content Type ◽  
Bank Managers ◽  
The Board Of Directors ◽  
The Impact

Purpose This paper aims to empirically assess the impact of gender diversity and board of directors’ size on Islamic banks’ performance. Design/methodology/approach Hand-collected data set including 27 banks from 2005 to 2013 is used to investigate the effect of the above mechanisms on banks’ performance as measured by return on equities and return on assets. The study uses pooling regression, which requires estimating a single equation on different cross-sectional data. Specifically, ordinary least squares is used to estimate the model. Findings Obtained results suggest that the presence of women on the board of directors does not have a significant influence on banks’ performance. However, gender diversity in the management department is found to have a negative and significant impact. Besides, the findings prove that the board of directors’ size adversely affects banks’ performance. Research limitations/implications Findings of this study will enhance a better understanding of the interrelationships between performance measures and determinants, which can improve estimations of key inputs in the decision-making process. Such deeper understanding should provide policy and decision makers with an important part of the framework needed to provide quality outcomes. In addition, the results of this study provide some beneficial insights on performance determinants to the policymakers, industry leaders and bank managers. Accordingly, those parties could enhance the profitability of Sudanese Islamic banks by improving capitalisation and assets utilisation and by improving banks operation efficiency, leverage and by reducing the size of the board of directors. Industry leaders and bank managers could also benefit from the findings on bank age, which suggest that they can learn from the experience of newly established banks, as the latter are shown to be able to use their resources to generate more profits. Practical implications Results suggest that in the future, Islamic banks should focus on how to weaken the negative performance effect of female executives’ participation. Besides, banks should work to decrease labour market discrimination and increase long-term career commitment amongst women. Originality/value After reviewing the literature, the research objective was not accounted for by the existing empirical works. Indeed, the role of gender diversity and board of directors’ size on a bank’s performance was not examined in the case of Sudanese Islamic banks.

scholarly journals The Impact of the Board of Directors Characteristics on the Risk of IPO Earnings Forecasts Errors

2019 ◽  
Vol 15 (11) ◽  
pp. 75
Author(s):  
Abdulaziz Mohammed Alsahlawi ◽  
Mohammed Abdullah Ammer
Keyword(s):  
Regression Analysis ◽  
Board Of Directors ◽  
Earnings Forecasts ◽  
Financial Statements ◽  
Ordinary Least Squares ◽  
Governance Mechanism ◽  
The Board Of Directors ◽  
Corporate Governance Mechanism ◽  
The Impact ◽  
The Relationship

This paper aimed to investigate the effect of corporate governance mechanism on the risk of IPO earnings forecasts errors. It focuses on the relationship between the board of directors characteristics and the risk of earnings forecasts errors. Required data was gathered from 190 Malaysian IPO prospectuses for the year 2002 to 2012, after which data was analyzed using ordinary least squares (OLS) regression. Based on the obtained findings, the earnings forecasts of Malaysian IPO reflected a pessimistic picture with unsatisfactory percentage of accuracy. In particular, the findings of multiple regression analysis of the relationships between the size, independence and CEO duality of the board of directors, and the risk of earnings forecasts errors were negative and insignificant. The study findings have several implications for relevant individuals, including regulators, investors, financial analysts and financial statements users.

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.

Corporate Female Leadership Effects Considering PSI20 and IBEX35 Companies' Performance

2019 ◽  
pp. 280-301
Author(s):  
Mara Madaleno ◽  
Elisabete S. Vieira ◽  
João P. C. Teodósio
Keyword(s):  
Board Of Directors ◽  
Performance Measures ◽  
Positive Influence ◽  
Performance Measure ◽  
Female Leadership ◽  
Accounting Performance ◽  
The Board Of Directors ◽  
Female Presence ◽  
The Relationship ◽  
Measures Of Performance

Using a sample of 47 Portuguese and Spanish firms for the period 2010 to 2017, the authors study the relationship between female presence on board and firm's accounting (ROA and ROE) and market-based (MTB and Tobin's Q) performance. They find that women on the board of directors is positively related to firm's performance, as well as the gender of the CFO and the proportion of women on the listed key professionals, when we consider the market measures of performance, not being so consistent for accounting performance measures. Results were sensitive to the performance measure used. The results reinforce the political options of European Commission gender established quotas, revealing that in the Iberian countries these quotas are not being effectively implemented, even if results suggest that women on board in fact exert positive influence over market performance. This also led us to think that financial markets may also react in a positive way when the CFO of the company is a woman instead of a man, despite the sample limitations both in terms of gender and number of firms.

scholarly journals The Influence of Confucianism on Corporate Environmental Investment: Evidence from Chinese Private Firms

2019 ◽  
Vol 11 (21) ◽  
pp. 5941 ◽  
Author(s):  
Xixiong Xu ◽  
Lingling Duan ◽  
Youliang Yan
Keyword(s):  
Relevant Literature ◽  
Positive Influence ◽  
Economic Consequences ◽  
Informal Institution ◽  
Environmental Investment ◽  
Tremendous Progress ◽  
Internal Mechanism ◽  
The Subject ◽  
Enterprise Survey ◽  
The Impact

While China’s economic development has made tremendous progress, it has also caused serious environmental pollution problems. This paper uses the date of the Chinese Private Enterprise Survey (CPES) to empirically investigate the impact of Confucianism on corporate environmental investment and its internal mechanism. The results show that: (1) Confucianism plays a significant role in corporate environmental investment. (2) In the areas where environmental regulation is relatively weak, Confucianism has a more significant effect on promoting corporate environmental investment. (3) The positive influence of Confucianism on corporate environmental investment is more obvious in heavy polluting industries. This paper’s conclusions deepen the theoretical cognition of the economic consequences of Confucianism and enrich the relevant literature on the subject of Confucianism. At the same time, this paper also expands the understanding of the determinants of corporate environmental investment from the perspective of the informal institution.

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