scholarly journals Beyond Dichotomy: The Curvilinear Impact of Employee Ownership on CEO entrenchment

2019 ◽  
Vol 22 (2) ◽  
pp. 112-127 ◽  
Author(s):  
Xavier Hollandts ◽  
Nicolas Aubert ◽  
Abdelmehdi Ben Abdelhamid ◽  
Victor Prieur
Keyword(s):  
Corporate Governance ◽  
Corporate Control ◽  
Listed Companies ◽  
Employee Ownership ◽  
Curvilinear Relationship ◽  
Stock Ownership ◽  
Employee Stock Ownership ◽  
Market For Corporate Control ◽  
Legislative Changes ◽  
The Relationship

Employee stock ownership gives employees a voice and therefore may have a major impact on corporate governance. Thus, employee stock ownership may be a powerful mean to protect CEOs from both market for corporate control and dismissal threat. In this paper, we examine the relationship between employee stock ownership and CEO entrenchment. Following the recent French legislative changes, we use a comprehensive panel dataset of the major French listed companies over the 2009-2012 period. We document inverted U-shaped relationships between employee stock ownership and CEO entrenchment. Board employee ownership representation also plays a role and increases the inflexion points of these curvilinear relationship.

scholarly journals Corporate governance and competition: Conceptual thoughts

2005 ◽  
Vol 3 (1) ◽  
pp. 46-51 ◽  
Author(s):  
Masrur Reaz ◽  
Thankom Arun
Keyword(s):  
Developing Countries ◽  
Corporate Governance ◽  
Developing Economies ◽  
Corporate Control ◽  
Economic Reforms ◽  
Market For Corporate Control ◽  
Governance Practices ◽  
Back Ground ◽  
Emerging Issues ◽  
The Relationship

This study attempts to explore the theoretical and empirical evidence on the relationship between competition and corporate governance in the broader back ground of economic reforms in developing economies, and analyses the problems that may occur due to inadequate corporate governance practices in an enhanced era of competition. The paper also discusses the areas of corporate governance that required immediate attention in developing countries such as protecting shareholder rights and market for corporate control, which are emerging issues in the context of rapid privatization and deregulations

scholarly journals Does employee ownership increase innovation?

2010 ◽  
Vol 13 (2) ◽  
pp. 37-46 ◽  
Author(s):  
Robert Garrett
Keyword(s):  
Employee Ownership ◽  
Moderating Effect ◽  
Hierarchical Regression ◽  
Future Research ◽  
Stock Ownership ◽  
Research And Practice ◽  
Employee Stock Ownership ◽  
The Relationship ◽  
Entrepreneurial Efforts ◽  
Innovative Output

One way that firms attempt to innovate is through investment in R&D activity. However, there is much heterogeneity in innovations among firms making comparable R&D investments. This article explores employee ownershipʼs moderating effect on the relationship between R&D intensity and innovative output. The basis for the moderation is that ownership increases motivation and commitment to the innovation agenda of the company, and retains employeesʼ entrepreneurial efforts for internal opportunities. Using hierarchical regression, the data support the hypothesis that employee stock ownership positively moderates the relationship between R&D intensity and innovative output. Implications for future research and practice are addressed.

Tradeoffs in Corporate Governance: Evidence From Board Structures and Charter Provisions

2011 ◽  
Vol 01 (04) ◽  
pp. 667-705 ◽  
Author(s):  
Stuart L. Gillan ◽  
Jay C. Hartzell ◽  
Laura T. Starks
Keyword(s):  
Corporate Governance ◽  
Corporate Control ◽  
Board Independence ◽  
Governance Structures ◽  
Board Structure ◽  
System Of Equations ◽  
Costs And Benefits ◽  
Market For Corporate Control ◽  
Monitoring Mechanism ◽  
Three Stage Least Squares

We provide arguments and present evidence that corporate governance structures are composed of interrelated mechanisms, which are in turn endogenous responses to the costs and benefits firms face when they choose those mechanisms. Examining board structures and the use of corporate charter provisions in a sample of more than 2,300 firms over a four-year period, we find that firms cluster in their use of governance mechanisms. In particular, the set of charter provisions that firms use, as measured by the Gompers et al. (2003) G Index, is associated with board structure, with the laws of the state in which the firm is incorporated, and with firm and industry characteristics. We also find that some governance structures appear to serve as substitutes. Specifically, firms that have powerful boards (as measured by board independence) also have the greatest number of charter provisions, suggesting that the market for corporate control is less effective as a monitoring mechanism for these firms. In contrast, firms that have less powerful boards tend to have few charter provisions, suggesting that the market for corporate control plays a greater monitoring role at such firms. To address potential endogeneity issues, we employ three-stage least squares analysis to estimate these relationships within a system of equations. Our results from this analysis are consistent with the hypothesis that powerful boards serve as a substitute for the market for corporate control. Finally, our findings suggest that causality runs from the board to the choice of charter provisions, but not vice versa.

Relationship between corporate governance and audit switching: Iranian evidence

2017 ◽  
Vol 59 (5) ◽  
pp. 673-686
Author(s):  
Mahdi Salehi ◽  
Ali Asgar Alinya
Keyword(s):  
Corporate Governance ◽  
Design Methodology ◽  
Stock Exchange ◽  
Listed Companies ◽  
Panel Analysis ◽  
Cross Sectional ◽  
Content Type ◽  
Effective Factors ◽  
Dependent Variables ◽  
The Relationship

Purpose This paper aims to investigate the relationship between corporate governance and auditors switching of listed companies on the Tehran Stock Exchange. Design/methodology/approach To achieve the objectives of this study, 12 hypotheses developed which and tests the relationship between corporate governance and selecting and switching auditors in Iran during 2008-20014 by selecting 116 listed companies on the Tehran Stock Exchange. To test the hypotheses, the cross-sectional time-series nature of research variables data, panel analysis is used. Also, to investigate the relationship between independent and dependent variables in each year, the logistic regression is used. Findings The results of the study indicate that there is a weak relationship between corporate governance auditors switching. Therefore, it could be concluded that there are some other effective factors on which selecting and switching auditors in studied companies are more dependent. Originality/value The current study is almost the first study which has been conducted in Iran, so the results of the study may be beneficial to the Iranian conditions as well as other developing countries.

scholarly journals Do audit committee characteristics of Bahraini listed companies have an effect on the level of internet financial reporting?

2016 ◽  
Vol 13 (3) ◽  
pp. 131-147 ◽  
Author(s):  
Sara AbdulHakeem Saleh AlMatrooshi ◽  
Abdalmuttaleb M. A. Musleh Al-Sartawi ◽  
Zakeya Sanad
Keyword(s):  
Corporate Governance ◽  
Literature Review ◽  
Financial Reporting ◽  
Audit Committee ◽  
Positive Relationship ◽  
Listed Companies ◽  
Financial Information ◽  
The Internet ◽  
Regression Test ◽  
The Relationship

Corporate Governance and IFR are influential topics that need to be addressed nowadays due to its importance. Especially since companies are growing and extending globally. This research is conducted in Kingdom of Bahrain through the year 2014, where it investigates the relationship between Audit Committee characteristics as a tool of CG and IFR. Literature review has been conducted, not to mention Multi-regression test was used to evaluate the relationship between Audit Committee characteristics and IFR for Bahraini listed companies. The results have showed that the relationship between Audit Committee characteristics and IFR is negative, which indicates that the Audit committee characteristics have no influence over the disclosure of financial information over the internet. However, Frequency of meeting of the board and Big4 resulted in a positive relationship with internet financial reporting. The study ends with a main conclusion and recommendation that contain certain steps and advices of disclosing financial information in an appropriate way through the internet in order to improve the relationship between Audit committee characteristics and IFR.

Audit Committee Characteristics and Earnings Quality

2020 ◽  
pp. 23-49
Author(s):  
Fatima Albedal ◽  
Allam Mohammed Hamdan ◽  
Qasim Zureigat
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Earnings Quality ◽  
Listed Companies ◽  
Independent Variables ◽  
Pooled Data ◽  
Data Regression ◽  
Code Of Corporate Governance ◽  
The Relationship

This chapter investigates the relationship between the audit committee and earnings quality of listed companies in Bahrain Bourse and to examine whether those companies comply with the obligatory code of corporate governance. The sample of this study includes 40 companies listed in Bahrain Bourse for the period 2013-2017. The model of the study tested the relationship between the independent variables of audit committee characteristics and the dependent variable of earnings quality using pooled data regression. The findings of the study showed that the Bahraini listed companies comply and follow the code of corporate governance and some audit committee characteristics have an impact on earnings quality.

The Role of Broad-Based Employee Ownership Opportunities in Prisoner Reentry

2020 ◽  
Vol 110 ◽  
pp. 424-429
Author(s):  
Robynn Cox
Keyword(s):  
Labor Market Outcomes ◽  
Prisoner Reentry ◽  
Employee Ownership ◽  
Market Outcomes ◽  
Formerly Incarcerated ◽  
Employee Stock Ownership ◽  
Stock Ownership Plans ◽  
Employee Stock Ownership Plans ◽  
The Relationship

This research investigates the relationship between Employee Stock Ownership Plans (ESOPs) and criminal participation as measured by arrests, conviction, and incarceration among formerly incarcerated individuals. Using the 1997 National Longitudinal Survey of Youth, I find that formerly incarcerated individuals with ESOP employment are significantly less likely to be arrested, convicted, and incarcerated. This effect likely operates through improvement in labor market outcomes: formerly incarcerated ESOP employees earn approximately 25 percent more in annual income and work roughly 8.8 percent more hours per week than formerly incarcerated workers who are employed but not working for an ESOP firm.

scholarly journals Corporate Governance and Innovation: Theory and Evidence

2014 ◽  
Vol 49 (4) ◽  
pp. 957-1003 ◽  
Author(s):  
Haresh Sapra ◽  
Ajay Subramanian ◽  
Krishnamurthy V. Subramanian
Keyword(s):  
Corporate Governance ◽  
Corporate Control ◽  
Empirical Support ◽  
Innovation Theory ◽  
Private Benefits ◽  
Private Benefits Of Control ◽  
Market For Corporate Control ◽  
Ex Post ◽  
Corporate Governance Mechanisms ◽  
Ex Ante

AbstractWe develop a theory to show how external and internal corporate governance mechanisms affect innovation. We predict a U-shaped relation between innovation and external takeover pressure, which arises from the interaction between expected takeover premia and private benefits of control. Using ex ante and ex post innovation measures, we find strong empirical support for the predicted relation. We exploit the variation in takeover pressure created by the passage of antitakeover laws across different states. Innovation is fostered either by an unhindered market for corporate control or by antitakeover laws that are severe enough to effectively deter takeovers.

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