Working capital management, board structure and Tobin's q ratio of Thai listed firms

PurposeThis study investigates whether the integration between working capital management (WCM) and the structure of a firm's board of directors impacts its Tobin's q ratio. The sample set consists of 319 Thai listed firms with 3,190 firm-year observations from 2010 to 2019.Design/methodology/approachThe two-step generalized method of moments (two-step GMM) model is employed to address endogeneity.FindingsThe empirical results show that having both (1) a high level of net working capital holdings, a long period of net trade cycles or using an aggressive policy in working capital investment and (2) a more diverse board of directors decrease a firm's Tobin's q ratio. Conversely, when a firm's managers employ an aggressive policy for their working capital financing and the board structure of their firms is highly diverse, the firm's Tobin's q ratio increases. This indicates the appropriateness of some WCM policies is dependent on the characteristics of a firm's board of directors. Thus, the different integration between WCM and board structure may elicit dissimilar outcomes for a firm's Tobin's q ratio.Originality/valueTo their knowledge, the authors are the first to investigate the influence of the integration between WCM and board characteristics on Tobin's q ratio.

Cash Holdings and Corporate Governance

This chapter investigates the empirical factors affecting corporate cash holdings with special emphasis on corporate governance variables for a sample of Turkish-listed nonfinancial firms over the period 2006 to 2010. The findings reveal a significant non-linear relation between family ownership and cash holdings. In addition, while board structure does not significantly affect the level of cash holdings, tunneling increases cash reserves of firms. Furthermore, the results indicate that cash flow, leverage, other liquid assets that can be used as cash substitutes, the degree of tangibility of assets, and firm size are important in determining cash holdings among Turkish companies.

GENDER DIVERSITY ON BOARD AND ITS RELEVANCE TO FIRM PERFORMANCE: A STUDY ON PHARMACEUTICAL INDUSTRY OF BANGLADESH

The study tries to examine the relationship between gender diversity on the Board and firms' profitability in Bangladesh's Pharmaceutical industry. The study employs a panel data approach with all the Pharmaceutical companies listed under Dhaka Stock Exchanges. The sample period covers eight years from 2012-2019. To conduct the study, Return on Equity and Tobin's Q was taken as a proxy of accounting measure of profitability and market measure of profitability, respectively. The proportion of women on board structure was taken as a proxy for gender diversity. Some other variables: board size, firm age, leverage, and firm size, were incorporated to control the effect of these variables on profitability. The study reveals that gender diversity shows a positive but insignificant relationship with the firm's performance in terms of ROE. The R square of this model was 11.67%. In terms of Tobin's Q, gender diversity exhibited a significant positive relationship with firm performance. The R square of this model was 17%. This implies that the market ascribes a great value to the inclusion of women in board structure since it increases the board structure's independence and profitability.

Corporate Governance and Firm Innovation

Innovation is a key factor for firms' competitive advantage in the long-term and for their financial success. Scholars highlight the underinvestment problem with respect of R&D investment. This chapter focuses on two relevant variables of corporate governance that influence firms' innovation performance: firm ownership and board of directors. In the first section, the effect of ownership structure on R&D investment is analyzed. More specifically, the chapter will illustrate the effects of family ownership and institutional ownership on innovation investments. The second section explores the main theoretical perspectives investigating the functions of board of directors and the main board tasks. Lastly, three attributes of board structure and their effect on R&D investments are explored.

Influence of the surface characteristics of corrugated cardboard on the quality of inkjet printing

This paper investigates the quality of inkjet printing on corrugated cardboard with various characteristics such as the presence of surface coating, the type of cardboard structure, the corrugated layer profile, and the corrugated cardboard height. The color characteristics of the corrugated board surface of studied samples were analyzed in the CIE Lab system; the value of the discrepancy in the shade of white was established when compared with the reference values of the ISO 12647 standard. During the study, the main criteria for assessing the quality of color reproduction of inkjet imprints were analyzed: an indicator of the general contrast level (K), the value of color differences for the basic tone shades (ΔE), and the volume of the body color coverage (ΔE2). It was found that when printing on various types of corrugated cardboard, there is a general decrease in the overall contrast value. The actual level of color differences is ΔE=10...45 and exceeds the permissible standards for the color reproduction quality. This adversely affects the reproduction of different color tones in the printed image. In general, the quality of color reproduction differs for the test samples of corrugated cardboard in terms of the magnitude of the spread in the values of color distortions on the tone shades. The influence of the main characteristics of the investigated samples of corrugated cardboard on the quality indicators of inkjet printing has been analyzed. In particular, a significant influence of the index of color characteristics of the surface of corrugated cardboard L* and the type of corrugated board structure on the quality of color reproduction has been established. The study results reported here could make it possible to reasonably approach the selection of the corrugated board structure that is optimal in composition, increase the productivity of the technological process for manufacturing containers, and stabilize the quality of printing on corrugated cardboard

Accounting Conservatism and Board Characteristics: Portuguese Evidence

For a sample of 26 non-financial listed Portuguese firms-year from 2002 to 2016, this study extends previous research by empirically examining how board structure affects the magnitude of accounting conservatism for companies listed in Portugal. Mainly, we focus on the main characteristics of the board structure that are highlighted by the Portuguese Securities Market Supervisory Authority’s recommendations: board size, board composition, board’s monitoring committees and number of board meeting. This study predicts and finds a non-linear relationship between board size and conservatism. Specifically, we find that as board size increases up to 8 members, the sample firms employ more conservatism, consistent with the idea that smaller boards can be more effective than larger boards in monitoring managerial behaviour. When board size reaches beyond 8 members, a negative relationship between board size and conservatism accounting occurs. We also find that both boards comprised of more non-executive members and high board meetings frequency lead firms to report more conservatively.

Relationship between Board Structure and Volatility of Stock Returns of Selected Companies Listed on BSE

Good corporate governance enhances the quality of listed companies. It forms a scientific constraint and necessary incentive mechanism that motivates managers to take risks, leading to increased company value. The study considered cement, iron, and steel companies listed on the Bombay Stock Exchange (BSE) to assess the relationship between board structure and volatility of stock returns. The study's main objective was to analyze the relationship between board structure and volatility of stock returns. The relationship between board structure and volatility of stock returns was tested using SPSS through descriptive statistics, f-test, and multiple regression models. It was found that board structure possessed a positive relationship with the volatility of stock returns during the study period.

Application of Corporate Governance Practices in Companies Listed in CSE Sri Lanka

Purpose: The purpose of the article is to find out the application of corporate governance practices in companies listed CSE in Sri Lanka. Methodology: The study aimed at the factors influence in the application of corporate governance practices and firm’s financial performance in Sri Lanka. In this study, there are two dependent variables namely return on equity and return on asset and four independent variables namely board leadership, board structure, board size and number of board committees. The study used 20 top companies (blue-chip companies) as sample for period of five (5) years 2014-2018. The data was analyzed using the SPSS statistical software package. The descriptive statistics, correlation analysis and regression analysis were used in this study. Findings: The results show that there is a positive relationship between corporate governance practices and firm performance, in the Sri Lankan context. And also it was found that there is a positive effect of board leadership board structure, board size and board committees on ROE and ROA the effect of board leadership, board size and board committees are significant with ROE & ROA. Only board structure has an insignificant effect on ROE and ROA.

Board attributes, ownership structure and risk management: A proposed model for insurance firms in Nigeria

As a response to the weaknesses in corporate governance and risk management created by the 2007/2008 financial crises, Enterprise Risk Management (ERM) becomes imperative, especially in the financial sector. Therefore, in understanding the board's responsibility in ensuring good governance through ERM implementation, two fundamental questions need to be answered; what determines the makeup of the board? And what determines boards' action? Consequently, this study proposed a conceptual framework for investigating the moderating role of ownership structure on the relationship between board attributes and risk management of insurance firms in Nigeria using the model approach. Hence, the control, resource acquisition, and service roles of the board as explained by agency, stewardship, and resource dependence theories explain this relationship. Board attributes are measured by board composition, board structure, board characteristics, and board process, ownership structure is measured by ownership concentration, board ownership, and foreign ownership, and ERM is measured using the disclosure index. Findings from the review of literature reveal that governance attributes in board attributes-risk management relationships have been measured on single or fragmented criteria, leading to contradictory or conflicting findings. Hence, the significance of the study lies in the conceptualization and choice of board attributes as explained by board roles and an integrative theoretical perspective to propose the choice of board attributes in the board attributes-risk management relationship and how ownership structure can influence the relationship, adding to the existing literature onboard attributes, ownership structure, and risk management.