The Variety of Diversity Considerations in the Director-Nomination Process: Evidence from the Dow 30

A large body of diversity literature examines outcomes associated with specific dimensions of board diversity, such as gender or racial diversity. This paper provides descriptive evidence on inputs to board diversity by analyzing the language contained in diversity disclosures of companies listed on the 2019 Dow Jones Industrial Average. Our analyses demonstrate that the concept of diversity is vast, has different meanings to different audiences, and continues to evolve. In addition, we investigate whether the language used in the disclosures reflects actual diversity for the boards in our sample. Based on our analyses, we discuss potential normative implications, regulatory insights, and limitations related to the disclosures, and highlight avenues for future research. This study will be of interest to researchers and practitioners evaluating how diversity impacts board performance, as well as practitioners and regulators defining, implementing, and/or assessing diversity policies in the hiring process.

Board performance and its relation to dividend payout: evidence from Malaysia

PurposeTo examine the board of directors’ performance and if higher performance helps protect minority shareholders in an emerging capital market. Additionally, we determine if the different types of company ownership moderate the level of protection to minority shareholders.Design/methodology/approachThe study develops a measure of board performance with their compensation. And it tests its association with the dividend payout decision of 300 of the largest Malaysian public listed companies (referred to as PLCs) over the period 2008 to 2014.FindingsThe results find that higher board productivity in terms of return on capital employed is associated with higher dividend payout. Additionally, the study finds that the board performance measure interacts with race, ethnicity and gender of the board of directors and CEO duality to affect the dividend payout decision of Malaysian PLCs.Research limitations/implicationsIt is a single-country study of large Malaysian PLCs. And it uses only the governance mechanisms that have been shown in emerging capital markets to have the most significant effect on affecting the relationship between board performance and dividend payout.Practical implicationsThe findings show the importance of inclusivity and diversity in governing State-controlled firms in an emerging capital market.Originality/valueThe findings suggest improving corporate boards’ performance, protecting minority shareholders and contributing to the corporate governance literature. Notably, the study highlights boardroom diversity’s importance to enhance the boards of State-controlled firms’ performance.

Behavioral integration in the boardroom

Purpose This study aims to understand the relationship between behavioral integration in the boardroom and board performance. Design/methodology/approach The authors performed a series of multiple hierarchical regression analyses to explore research questions. Primary data were collected via questionnaires from 184 Nordic members to identify perceptions of behavioral integration and board performance in their boardroom. Findings The authors found that different dimensions of behavioral integration have a different effect on board performance. The collaborative behavior of the board did not predict any dimension of board performance, whereas information exchange predicted one dimension of board performance, that of providing strategic leadership. The paramount role of joint decision-making is underlined in this study as this positively predicted all of the dimensions of board performance (strategic leadership, networking and readiness of the board). Research limitations/implications Future research should investigate behavioral integration among board members using a longitudinal design and expand the sample cross-culturally. Practical implications For forming high-performing teams, emphasis should be given on the joint decision-making. Understanding the joint problems, transparency in actions and discussion about the problem under consideration are of paramount importance for the effectiveness of the team. Social implications Team’s conversational environment has crucial impact on team outcomes. Originality/value This is one of the rare studies that examine perceptions of executives about the level of behavioral integration in their board.

Exploring trust in the boardroom: the case of Nordic region

Purpose This paper aims to understand the relationship between the trust of executives in their board, board effectiveness (board performance and strategic decision quality) and organizational performance (financial and operational performance). Design/methodology/approach Data were collected from 184 board members in the Nordic region, using cross-sectional research design. Confirmatory factor analysis was used to test the validity of the used scales, whereas correlational analysis and mediation analysis via PROCESS macro in SPSS were used for testing of the hypotheses. Findings Trust between board members is positively correlated with both dimensions of board effectiveness and both tested dimensions of organizational performance. Besides, trust between the board members positively affects both financial and operational performance (significant total effects in mediation analysis). However, trust had a direct effect only on financial performance, whereas it shows an indirect effect on operational performance through both mediators, board performance and strategic decision quality. Research limitations/implications Future research should investigate trust into the board using a longitudinal design, and expand the sample cross-culturally, and control for the influence of other interpersonal variables in board members. Practical implications The development of trust in work relationships serves as the foundation for the establishment of significant team and organizational benefits. Business leaders should take into consideration trust issues in business teams and cultivate a trust culture in their organizations. Social implications The findings advance theoretical, social and empirical understanding of trust of executives in their board and its effect on board performance, strategic decision quality and perceived performance. The development of trust in work relationships enhances team performance, networks with strategic partners, community and government, and serves as the foundation for the establishment of trust in the society. Originality/value This is one of the scarce studies that examines direct and indirect effects of trust in board and organizational outcomes.

Information governance: The role of information architecture for effective board performance

Among the growing demands in corporate governance is better decision-making. The best board dynamics and focus on substantive business issues do not ensure effective boards functioning. Better decision-making implies the availability of quality information in adequate amounts. Better information does not exist on its own, it is necessary to design adequate information architectures in order to gather such information for effective board decision-making. Relying on solid information sources fosters awareness and lies the grounds for a better information architecture, so directors can do their job in a more effective and efficient way. What, why, how and where questions shall be raised in order to reach such goals, and the pillars for such architecture shall be laid down, by means of an adequate information architecture. This text provides clarity and the main thinking behind such information architecture design, ending with a set of recommendations

Arduino based control of the Food and Water Conveyance Systems of a Refractance Window Dryer

A refractance window dryer with a 14.5kg/hr throughput capacity was developed to effectively dry food product of 3mm on the conveyor belt. For efficient dryer performance an automated system for the conveyor belt movement and water conveyance system was designed. The automated system comprised of an ARDUINO centered control system, an arrangement of sensors, water pump and the conveyor motor. A computer program was written in Arduino environment, successfully compiled and uploaded on to the controller board to process all commands. The system was first simulated successfully in ISIS Proteus environment and connected onto a bread board for testing before attaching the motor onto the main circuit board. Performance tests done at 85°C revealed that there was no movement of the belt as temperature built steadily from 31.19°C until it reached a temperature of 92.0°C in the boiler. The maximum recorded water temperature was 98.06°C and the system had an operating range of 95±3°C. Achieving this led to an automated food conveyance system that was reliable and ensured high product quality. The Arduino based system worked well and is recommended for the refractance window dryer and can be up scaled to a bigger similar machine.