Yahya Mohammed Al-Sayani, E. Al-Matari, Mohamad Naimi Mohamad Nor, N. Amran, Mohammed Ahmed Alsayani
Purpose The purpose of this study is to look at the structure of the interactions between the board of directors’ chairman qualities such as chairman independence, tenure, ethnicity, age- and impression management (IM). Design/methodology/approach The research population consists of non-financial Malaysian companies listed on Bursa Malaysia’s Main Market, using data gathered via annual reports and DataStream. The study relies on the ordinary least square regression to test the direct relationships between the directors’ chairman characteristics and IM. Moreover, robustness and sensitivity tests were used to examine the effectiveness of chairman characteristics with IM. Furthermore, the results rely on the FGLS regression as an additional test. The study found that chairman independence, chairman ethnicity and chairman age have a significant impact on IM. Findings The results reveal that chairman independence has a negative association with qualitative IM (IMSC1). Moreover, chairman ethnicity has a positively significant relationship with qualitative IM (IMSC1) and quantitative IM (IMSC2). Also, the effectiveness of chairman characteristics has a negative and significant association with IMSC1. Originality/value The primary goal of this paper is to fill a gap in the literature and to open up opportunities for more in-depth research on the subject. So far, there has been no research into the impact of the board chairman’s (BC) personality on IM. This study serves as a warning to policymakers, businesses and their stakeholders, as well as researchers, about the importance of BC characteristics, which may impede the effectiveness of corporate governance mechanisms. The paper provides a framework for investigating these characteristics in the context of IM.
{"title":"Board chairman characteristics and impression management: an empirical investigation. Further analysis","authors":"Yahya Mohammed Al-Sayani, E. Al-Matari, Mohamad Naimi Mohamad Nor, N. Amran, Mohammed Ahmed Alsayani","doi":"10.1108/cg-03-2022-0122","DOIUrl":"https://doi.org/10.1108/cg-03-2022-0122","url":null,"abstract":"\u0000Purpose\u0000The purpose of this study is to look at the structure of the interactions between the board of directors’ chairman qualities such as chairman independence, tenure, ethnicity, age- and impression management (IM).\u0000\u0000\u0000Design/methodology/approach\u0000The research population consists of non-financial Malaysian companies listed on Bursa Malaysia’s Main Market, using data gathered via annual reports and DataStream. The study relies on the ordinary least square regression to test the direct relationships between the directors’ chairman characteristics and IM. Moreover, robustness and sensitivity tests were used to examine the effectiveness of chairman characteristics with IM. Furthermore, the results rely on the FGLS regression as an additional test. The study found that chairman independence, chairman ethnicity and chairman age have a significant impact on IM.\u0000\u0000\u0000Findings\u0000The results reveal that chairman independence has a negative association with qualitative IM (IMSC1). Moreover, chairman ethnicity has a positively significant relationship with qualitative IM (IMSC1) and quantitative IM (IMSC2). Also, the effectiveness of chairman characteristics has a negative and significant association with IMSC1.\u0000\u0000\u0000Originality/value\u0000The primary goal of this paper is to fill a gap in the literature and to open up opportunities for more in-depth research on the subject. So far, there has been no research into the impact of the board chairman’s (BC) personality on IM. This study serves as a warning to policymakers, businesses and their stakeholders, as well as researchers, about the importance of BC characteristics, which may impede the effectiveness of corporate governance mechanisms. The paper provides a framework for investigating these characteristics in the context of IM.\u0000","PeriodicalId":47880,"journal":{"name":"Corporate Governance-The International Journal of Business in Society","volume":null,"pages":null},"PeriodicalIF":5.6,"publicationDate":"2023-08-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"75695826","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Purpose This study aims to investigate the relationship between boardroom gender diversity (BoGD) and risk-taking by property-liability (P-L) stock insurers from an analytical framework that control for organizational form and ownership structure. It relies on the behavioral agency model, the resource dependency theory and the concept of socioemotional wealth (SEW). Design/methodology/approach This study builds on an unbalanced panel of 2,285 firm-year observations from 232 European and US P-L stock insurers covering the period 2010–2019 and measure risk-taking by using four proxies: total risk (TR), upside risk (UpR), downside risk (DwR) and default risk (DR). Reverse causality and endogeneity concerns are treated by applying different approaches. Findings Findings suggest that BoGD mitigates the TR, DwR and DR but does not interfere with the UpR, which conceptualizes firm expectations to enhance patrimony and safeguard SEW for heirs, especially in family-owned insurers. The findings hold in various robustness checks including endogeneity and alternative specifications of BoGD and risk-taking. Practical implications This study contributes to practice by contrasting the role of female directors’ bevahior when assuming risk, which seems significantly different depending on the risk-taking specification and the organizational form. The author advises policyholders and policymakers to look at closely on BoGD and ownership structure as they affect insurance company risk-taking. Originality/value This study takes a more direct approach to highlight the BoGD’s effect on corporate risk-taking by focusing on the insurance sector which is characterized by risk and uncertainty bearing. To the best of the author’s knowledge, this is the first study to consider the full range of the stock organizational forms and the degree of family control in displaying this effect in both widely traded and closely traded insurers and to assess risk-taking from both market-based and accounting-based aspects.
{"title":"Boardroom gender diversity and risk-taking in the insurance industry: do organizational form and ownership structure matter?","authors":"Habib Jouber","doi":"10.1108/cg-01-2023-0002","DOIUrl":"https://doi.org/10.1108/cg-01-2023-0002","url":null,"abstract":"\u0000Purpose\u0000This study aims to investigate the relationship between boardroom gender diversity (BoGD) and risk-taking by property-liability (P-L) stock insurers from an analytical framework that control for organizational form and ownership structure. It relies on the behavioral agency model, the resource dependency theory and the concept of socioemotional wealth (SEW).\u0000\u0000\u0000Design/methodology/approach\u0000This study builds on an unbalanced panel of 2,285 firm-year observations from 232 European and US P-L stock insurers covering the period 2010–2019 and measure risk-taking by using four proxies: total risk (TR), upside risk (UpR), downside risk (DwR) and default risk (DR). Reverse causality and endogeneity concerns are treated by applying different approaches.\u0000\u0000\u0000Findings\u0000Findings suggest that BoGD mitigates the TR, DwR and DR but does not interfere with the UpR, which conceptualizes firm expectations to enhance patrimony and safeguard SEW for heirs, especially in family-owned insurers. The findings hold in various robustness checks including endogeneity and alternative specifications of BoGD and risk-taking.\u0000\u0000\u0000Practical implications\u0000This study contributes to practice by contrasting the role of female directors’ bevahior when assuming risk, which seems significantly different depending on the risk-taking specification and the organizational form. The author advises policyholders and policymakers to look at closely on BoGD and ownership structure as they affect insurance company risk-taking.\u0000\u0000\u0000Originality/value\u0000This study takes a more direct approach to highlight the BoGD’s effect on corporate risk-taking by focusing on the insurance sector which is characterized by risk and uncertainty bearing. To the best of the author’s knowledge, this is the first study to consider the full range of the stock organizational forms and the degree of family control in displaying this effect in both widely traded and closely traded insurers and to assess risk-taking from both market-based and accounting-based aspects.\u0000","PeriodicalId":47880,"journal":{"name":"Corporate Governance-The International Journal of Business in Society","volume":null,"pages":null},"PeriodicalIF":5.6,"publicationDate":"2023-08-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"74135769","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Purpose This study aims to examine the impact of board characteristics on debt choice. Design/methodology/approach The sample comprises of unique nonfinancial firms listed in the FTSE 350 over the period 2011–2018. This study uses Tobit and OLS regressions to check the impact of board characteristics on debt choice. The results are robust to the battery of robust checks. Findings This study finds that board size and board independence are positively associated with public debt. However, CEO duality and board meetings frequency are inversely associated with public debt. Overall, the findings are consistent with the “financial intermediation theory” that the firms with weak governance rely on bank financing, and firms with better corporate governance go for public debt. Research limitations/implications This study offers significant insights for investors and policymakers. Originality/value This study offers new insights regarding the role of board characteristics in firms’ debt choice by showing the significant impact of board characteristics on debt choice. The findings indicate that the board’s efficient internal monitoring may substitute external monitoring by the bank.
{"title":"Corporate governance and the choice between bank debt and public debt","authors":"I. Ahmed, Owais Mehmood, Zeshan Ghafoor, Syed Hassan Jamil, Afkar Majeed","doi":"10.1108/cg-01-2022-0028","DOIUrl":"https://doi.org/10.1108/cg-01-2022-0028","url":null,"abstract":"\u0000Purpose\u0000This study aims to examine the impact of board characteristics on debt choice.\u0000\u0000\u0000Design/methodology/approach\u0000The sample comprises of unique nonfinancial firms listed in the FTSE 350 over the period 2011–2018. This study uses Tobit and OLS regressions to check the impact of board characteristics on debt choice. The results are robust to the battery of robust checks.\u0000\u0000\u0000Findings\u0000This study finds that board size and board independence are positively associated with public debt. However, CEO duality and board meetings frequency are inversely associated with public debt. Overall, the findings are consistent with the “financial intermediation theory” that the firms with weak governance rely on bank financing, and firms with better corporate governance go for public debt.\u0000\u0000\u0000Research limitations/implications\u0000This study offers significant insights for investors and policymakers.\u0000\u0000\u0000Originality/value\u0000This study offers new insights regarding the role of board characteristics in firms’ debt choice by showing the significant impact of board characteristics on debt choice. The findings indicate that the board’s efficient internal monitoring may substitute external monitoring by the bank.\u0000","PeriodicalId":47880,"journal":{"name":"Corporate Governance-The International Journal of Business in Society","volume":null,"pages":null},"PeriodicalIF":5.6,"publicationDate":"2023-08-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"79603043","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Purpose This study aims to explore the mechanism of the relationships between financial and non-financial outcomes and gender equality through a case study of a Japanese bank that has consistently pursued gender equality. Design/methodology/approach A single case study was adopted to explore the outcomes of promoting gender equality. Primary data were collected from 12 semi-structured interviews. Data were analysed by rereading and coding the interview responses coded to generate themes. Findings Through governance reform in Company A, women have been placed in top management positions and the number of female managers has increased, allowing frontline intentions to be reflected in decision-making. The increased number of female managers has led to a decrease in female turnover, men taking parental leave, improved training of female managers and the recruitment of excellent new graduates. The appropriate allocation of jobs to female managers and employees also meets customer needs and has led to increased sales. Finally, involvement of female employees in product development in male-dominated workplaces brings women’s experiences and perspectives to product development, resulting in the development of products that are favoured by customers. Originality/value This study determined the mechanism behind the relationships between financial and non-financial outcomes and gender equality, based on agency, upper echelons, resource dependence, institutional and social role theories. It also contributes to gender equality research methodology by providing compelling qualitative stories of gender equality outcomes to increase a company’s commitment to promoting gender equality.
{"title":"Breaking the glass ceiling: gender equality practices in a Japanese bank","authors":"Masahiro Hosoda, Shima Nagano","doi":"10.1108/cg-04-2023-0139","DOIUrl":"https://doi.org/10.1108/cg-04-2023-0139","url":null,"abstract":"\u0000Purpose\u0000This study aims to explore the mechanism of the relationships between financial and non-financial outcomes and gender equality through a case study of a Japanese bank that has consistently pursued gender equality.\u0000\u0000\u0000Design/methodology/approach\u0000A single case study was adopted to explore the outcomes of promoting gender equality. Primary data were collected from 12 semi-structured interviews. Data were analysed by rereading and coding the interview responses coded to generate themes.\u0000\u0000\u0000Findings\u0000Through governance reform in Company A, women have been placed in top management positions and the number of female managers has increased, allowing frontline intentions to be reflected in decision-making. The increased number of female managers has led to a decrease in female turnover, men taking parental leave, improved training of female managers and the recruitment of excellent new graduates. The appropriate allocation of jobs to female managers and employees also meets customer needs and has led to increased sales. Finally, involvement of female employees in product development in male-dominated workplaces brings women’s experiences and perspectives to product development, resulting in the development of products that are favoured by customers.\u0000\u0000\u0000Originality/value\u0000This study determined the mechanism behind the relationships between financial and non-financial outcomes and gender equality, based on agency, upper echelons, resource dependence, institutional and social role theories. It also contributes to gender equality research methodology by providing compelling qualitative stories of gender equality outcomes to increase a company’s commitment to promoting gender equality.\u0000","PeriodicalId":47880,"journal":{"name":"Corporate Governance-The International Journal of Business in Society","volume":null,"pages":null},"PeriodicalIF":5.6,"publicationDate":"2023-07-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"90568668","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Purpose This paper aims to review empirical research on the relationship between institutional ownership (IO) and board governance (85 studies). Design/methodology/approach Based on agency and upper echelons theory, the heterogeneous monitoring function of specific types and the nature of institutional investors on board composition, compensation and chief executive officer (CEO) characteristics will be focused. Findings The author found that most studies have referred to archival studies, analyzed the impact of board governance on IO, focused on CEO characteristics, neglected IO heterogeneity and advanced regression models to address endogeneity concerns. In line with the theoretical framework, the relationship between total IO and board governance is heterogeneous. However, specific types such as foreign, dedicated and pressure-resistant institutions represent active monitoring tools and push for increased board governance. Research limitations/implications The author provided useful recommendations for future research from a content and methodological perspective, e.g. the need for analyzing the impact of IO on sustainable board governance and other characteristics of top management team members, e.g. the chief financial officer. Practical implications As many regulatory bodies implemented regulations to promote shareholder rights and board governance, this literature review highlights the connections of both corporate governance mechanisms. Managers should conduct a careful and timely investor analysis and change the composition and compensation of the board of directors in line with institutional investors’ preferences. Originality/value This analysis makes useful contributions to prior research by focusing on IO and board governance, whereas the author structured the heterogeneous variables and results within the structured literature review. The authors guides researchers, regulatory bodies and business practice in this corporate governance topic.
{"title":"Institutional ownership and board governance. A structured literature review on the heterogeneous monitoring role of institutional investors","authors":"Patrick Velte","doi":"10.1108/cg-10-2022-0414","DOIUrl":"https://doi.org/10.1108/cg-10-2022-0414","url":null,"abstract":"\u0000Purpose\u0000This paper aims to review empirical research on the relationship between institutional ownership (IO) and board governance (85 studies).\u0000\u0000\u0000Design/methodology/approach\u0000Based on agency and upper echelons theory, the heterogeneous monitoring function of specific types and the nature of institutional investors on board composition, compensation and chief executive officer (CEO) characteristics will be focused.\u0000\u0000\u0000Findings\u0000The author found that most studies have referred to archival studies, analyzed the impact of board governance on IO, focused on CEO characteristics, neglected IO heterogeneity and advanced regression models to address endogeneity concerns. In line with the theoretical framework, the relationship between total IO and board governance is heterogeneous. However, specific types such as foreign, dedicated and pressure-resistant institutions represent active monitoring tools and push for increased board governance.\u0000\u0000\u0000Research limitations/implications\u0000The author provided useful recommendations for future research from a content and methodological perspective, e.g. the need for analyzing the impact of IO on sustainable board governance and other characteristics of top management team members, e.g. the chief financial officer.\u0000\u0000\u0000Practical implications\u0000As many regulatory bodies implemented regulations to promote shareholder rights and board governance, this literature review highlights the connections of both corporate governance mechanisms. Managers should conduct a careful and timely investor analysis and change the composition and compensation of the board of directors in line with institutional investors’ preferences.\u0000\u0000\u0000Originality/value\u0000This analysis makes useful contributions to prior research by focusing on IO and board governance, whereas the author structured the heterogeneous variables and results within the structured literature review. The authors guides researchers, regulatory bodies and business practice in this corporate governance topic.\u0000","PeriodicalId":47880,"journal":{"name":"Corporate Governance-The International Journal of Business in Society","volume":null,"pages":null},"PeriodicalIF":5.6,"publicationDate":"2023-07-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"82324945","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Purpose The purpose of this study is to investigate the relationship between corruption, corporate governance and sustainable development goals (SDGs) in Africa. Design/methodology/approach The authors use panel data from 42 African countries over the period 2017–2020 and ordinary least square regression to test the research hypotheses. The authors also use alternative estimation techniques, including the fixed effect and random effect regressions and the generalized method of moment, to test the robustness of the results. Findings The results indicate that corruption negatively affects sustainable development (SD), whereas the effect of corporate governance is positive and significant. In addition, the positive influence of corporate governance on SD is stronger for countries with high corruption prevalence. Practical implications Policymakers may rely on the outcome of this study to formulate practical and implementable solutions around corruption and corporate governance that can help toward the achievement of the SDGs. Specifically, corporate governance mechanisms may be relied upon to achieve SD in countries with a high corruption prevalence. Social implications The social implication of this paper is that it demonstrates the adverse impact of corruption, which is rife in most African countries. Understanding corruption and the SDGs relationship will promote discussion with overarching implications for developing countries. Overall, the findings can sensitize society to the harmful effects of corruption and the positive effects of good corporate governance. Originality/value This paper contributes to literature and practice by demonstrating that corporate governance plays a significant role in the realization of national and global objectives such as the SDGs. This paper also provides novel evidence that corporate governance matters more in countries with a higher corruption incidence.
{"title":"Corruption, corporate governance, and sustainable development goals in Africa","authors":"Abubakar Ahmed, Mutalib Anifowose","doi":"10.1108/cg-07-2022-0311","DOIUrl":"https://doi.org/10.1108/cg-07-2022-0311","url":null,"abstract":"\u0000Purpose\u0000The purpose of this study is to investigate the relationship between corruption, corporate governance and sustainable development goals (SDGs) in Africa.\u0000\u0000\u0000Design/methodology/approach\u0000The authors use panel data from 42 African countries over the period 2017–2020 and ordinary least square regression to test the research hypotheses. The authors also use alternative estimation techniques, including the fixed effect and random effect regressions and the generalized method of moment, to test the robustness of the results.\u0000\u0000\u0000Findings\u0000The results indicate that corruption negatively affects sustainable development (SD), whereas the effect of corporate governance is positive and significant. In addition, the positive influence of corporate governance on SD is stronger for countries with high corruption prevalence.\u0000\u0000\u0000Practical implications\u0000Policymakers may rely on the outcome of this study to formulate practical and implementable solutions around corruption and corporate governance that can help toward the achievement of the SDGs. Specifically, corporate governance mechanisms may be relied upon to achieve SD in countries with a high corruption prevalence.\u0000\u0000\u0000Social implications\u0000The social implication of this paper is that it demonstrates the adverse impact of corruption, which is rife in most African countries. Understanding corruption and the SDGs relationship will promote discussion with overarching implications for developing countries. Overall, the findings can sensitize society to the harmful effects of corruption and the positive effects of good corporate governance.\u0000\u0000\u0000Originality/value\u0000This paper contributes to literature and practice by demonstrating that corporate governance plays a significant role in the realization of national and global objectives such as the SDGs. This paper also provides novel evidence that corporate governance matters more in countries with a higher corruption incidence.\u0000","PeriodicalId":47880,"journal":{"name":"Corporate Governance-The International Journal of Business in Society","volume":null,"pages":null},"PeriodicalIF":5.6,"publicationDate":"2023-07-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"72687430","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
S. Hazaea, E. Al-Matari, Najib H. S. Farhan, Jinyu Zhu
Purpose In recent years, mandatory rules and regulations were issued to stress the importance of increasing gender diversity in companies, assuming that gender diversity would enhance financial performance. Thus, the purpose of this paper is to review recent research concerning board gender diversity and its impact on financial performance for the period of 2002 to 2022. Design/methodology/approach Using the Web of Science and Scopus databases, 152 studies were analyzed, out of 91 high-impact journals. The analysis focuses on discussing the moderating, mediating and controlling variables and exploring the theories and theoretical foundations that are most prevalent in the literature. Findings The findings indicated an incompatibility between the results of the studies on the impact of gender diversity on financial performance. In addition, results showed the majority of studies focused on discussing the controlling variables associated with the company compared to the variables related to employees or the surrounding environment. On the other hand, the results also showed widespread use of the theoretical basis with the development of new theories in the recent period in parallel with the increase in the literature. Originality/value The results of this study help to reconcile the findings of the different and conflicting literature by presenting the perception that the efficacy of the positive impact of gender diversity on financial performance is related to several organizational and environmental factors that companies have to consider.
近年来，颁布了强制性的规章制度，强调增加公司性别多样性的重要性，认为性别多样性会提高财务业绩。因此，本文的目的是回顾最近关于董事会性别多样性及其对2002年至2022年期间财务绩效影响的研究。设计/方法/方法使用Web of Science和Scopus数据库，分析了91种高影响力期刊中的152项研究。分析的重点是讨论调节变量、中介变量和控制变量，并探索文献中最流行的理论和理论基础。研究结果研究结果表明，性别多样性对财务绩效影响的研究结果之间存在不一致之处。此外，结果显示，大多数研究都集中在讨论与公司相关的控制变量，而不是与员工或周围环境相关的变量。另一方面，研究结果也表明，随着近年来新理论的发展和文献的增加，理论基础得到了广泛的应用。原创性/价值本研究的结果通过提出性别多样性对财务绩效的积极影响的有效性与公司必须考虑的几个组织和环境因素有关的看法，有助于调和不同和相互冲突的文献的发现。
{"title":"The impact of board gender diversity on financial performance: a systematic review and agenda for future research","authors":"S. Hazaea, E. Al-Matari, Najib H. S. Farhan, Jinyu Zhu","doi":"10.1108/cg-07-2022-0302","DOIUrl":"https://doi.org/10.1108/cg-07-2022-0302","url":null,"abstract":"\u0000Purpose\u0000In recent years, mandatory rules and regulations were issued to stress the importance of increasing gender diversity in companies, assuming that gender diversity would enhance financial performance. Thus, the purpose of this paper is to review recent research concerning board gender diversity and its impact on financial performance for the period of 2002 to 2022.\u0000\u0000\u0000Design/methodology/approach\u0000Using the Web of Science and Scopus databases, 152 studies were analyzed, out of 91 high-impact journals. The analysis focuses on discussing the moderating, mediating and controlling variables and exploring the theories and theoretical foundations that are most prevalent in the literature.\u0000\u0000\u0000Findings\u0000The findings indicated an incompatibility between the results of the studies on the impact of gender diversity on financial performance. In addition, results showed the majority of studies focused on discussing the controlling variables associated with the company compared to the variables related to employees or the surrounding environment. On the other hand, the results also showed widespread use of the theoretical basis with the development of new theories in the recent period in parallel with the increase in the literature.\u0000\u0000\u0000Originality/value\u0000The results of this study help to reconcile the findings of the different and conflicting literature by presenting the perception that the efficacy of the positive impact of gender diversity on financial performance is related to several organizational and environmental factors that companies have to consider.\u0000","PeriodicalId":47880,"journal":{"name":"Corporate Governance-The International Journal of Business in Society","volume":null,"pages":null},"PeriodicalIF":5.6,"publicationDate":"2023-06-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"77907848","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Purpose This study aims to examine whether corporate governance mechanisms – board size, board independence and CEO duality – influence the actions of oil companies operating in Nigeria to clean up oil spills from their facilities. Design/methodology/approach Both binary logistic regression (linear) and random-effects logistic regression models were used to test three hypotheses using a unique data set of 1,262 oil spill events involving 24 oil companies from 2017 to 2019. Findings The study found that board size and board independence are positively related to oil spill cleanup. Practical implications Private oil companies in Nigeria should encourage larger and more independent boards in their corporate governance (CG) structures, as these boards may be more effective in serving the interests of stakeholders by bringing diverse knowledge and experience to the boards. Similarly, regulators should extend the enforcement of CG codes to private firms. Originality/value To the best of the authors’ knowledge, this is the first study that investigates the influence of CG attributes on oil spill cleanup.
{"title":"Does corporate governance matter in the cleanup of reported oil spills? Evidence from Nigeria","authors":"Z. Abdul-Baki, R. Haniffa, A. Diab","doi":"10.1108/cg-10-2022-0442","DOIUrl":"https://doi.org/10.1108/cg-10-2022-0442","url":null,"abstract":"\u0000Purpose\u0000This study aims to examine whether corporate governance mechanisms – board size, board independence and CEO duality – influence the actions of oil companies operating in Nigeria to clean up oil spills from their facilities.\u0000\u0000\u0000Design/methodology/approach\u0000Both binary logistic regression (linear) and random-effects logistic regression models were used to test three hypotheses using a unique data set of 1,262 oil spill events involving 24 oil companies from 2017 to 2019.\u0000\u0000\u0000Findings\u0000The study found that board size and board independence are positively related to oil spill cleanup.\u0000\u0000\u0000Practical implications\u0000Private oil companies in Nigeria should encourage larger and more independent boards in their corporate governance (CG) structures, as these boards may be more effective in serving the interests of stakeholders by bringing diverse knowledge and experience to the boards. Similarly, regulators should extend the enforcement of CG codes to private firms.\u0000\u0000\u0000Originality/value\u0000To the best of the authors’ knowledge, this is the first study that investigates the influence of CG attributes on oil spill cleanup.\u0000","PeriodicalId":47880,"journal":{"name":"Corporate Governance-The International Journal of Business in Society","volume":null,"pages":null},"PeriodicalIF":5.6,"publicationDate":"2023-06-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"86552470","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pattanaporn Chatjuthamard, Sirimon Treepongkaruna, Pornsit Jiraporn, Keun Jae Park
Purpose Exploiting a novel measure of innovation, the authors investigate whether independent directors improve innovation efficiency. This novel measure of innovation captures the extent to which the firm generates revenue from its research & development and is, therefore, more economically meaningful. The authors also use a text-based measure of innovation. Design/methodology/approach The authors rely on a quasi-natural experiment based on the passage of the Sarbanes-Oxley Act of 2002 that compelled certain firms to raise board independence. The difference-in-difference analysis is far less vulnerable to endogeneity and is more likely to show a causal influence, rather than a mere association. Findings The results show that more independent directors improve innovation efficiency significantly. Specifically, firms forced to raise board independence experienced a much higher increase in innovation than those not required to change their board composition. The authors also explore another novel measure of innovation, a text-based metric of innovation. Originality/value The research is original in several ways. First, the authors take advantage of an exogenous regulatory shock as a quasi-natural experiment. This approach is far less susceptible to endogeneity. Second, the authors use a novel measure of innovation efficiency, i.e. research quotient, which is more economically meaningful. Finally, the authors use a unique measure of innovation derived from powerful textual analysis.
{"title":"Estimating the effect of board independence on innovation efficiency using research quotient: a quasi-natural experiment","authors":"Pattanaporn Chatjuthamard, Sirimon Treepongkaruna, Pornsit Jiraporn, Keun Jae Park","doi":"10.1108/cg-12-2022-0487","DOIUrl":"https://doi.org/10.1108/cg-12-2022-0487","url":null,"abstract":"Purpose Exploiting a novel measure of innovation, the authors investigate whether independent directors improve innovation efficiency. This novel measure of innovation captures the extent to which the firm generates revenue from its research & development and is, therefore, more economically meaningful. The authors also use a text-based measure of innovation. Design/methodology/approach The authors rely on a quasi-natural experiment based on the passage of the Sarbanes-Oxley Act of 2002 that compelled certain firms to raise board independence. The difference-in-difference analysis is far less vulnerable to endogeneity and is more likely to show a causal influence, rather than a mere association. Findings The results show that more independent directors improve innovation efficiency significantly. Specifically, firms forced to raise board independence experienced a much higher increase in innovation than those not required to change their board composition. The authors also explore another novel measure of innovation, a text-based metric of innovation. Originality/value The research is original in several ways. First, the authors take advantage of an exogenous regulatory shock as a quasi-natural experiment. This approach is far less susceptible to endogeneity. Second, the authors use a novel measure of innovation efficiency, i.e. research quotient, which is more economically meaningful. Finally, the authors use a unique measure of innovation derived from powerful textual analysis.","PeriodicalId":47880,"journal":{"name":"Corporate Governance-The International Journal of Business in Society","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-06-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135904406","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Purpose This paper aims to examine whether family business groups’ (FBG) having the same network auditor among their affiliates mitigates earnings manipulation (EM). Design/methodology/approach This paper used unbalanced panel data from the years 2010–2019. The sample of the study is composed of 327 nonfinancial listed Pakistan Stock Exchange firms, consisting of 187 FBG-affiliated firms and 140 nonaffiliated firms. The ordinary least square and generalized least square regressions have been used to check the hypothesized relationship. Furthermore, the propensity score matching technique is used to ascertain comparable companies’ features and to control the potential endogeneity problem. Finally, the results are robust to various measures of EM and FBG’ proxies. Findings The findings of the study show that the same network auditor is reducing EM in FBG affiliates. In addition, the BIG4 same network auditors are also instrumental in constraining EM as compared to non-BIG4 audit firms. Overall, the results of this study depict that the same network auditor in FBG’s affiliated firms significantly influences EM. These results are robust with respect to generalized least squares and the endogeneity problem. Research limitations/implications This research study has two important implications for the interested parties. First, although the authors find in this research study that the same network auditor is negatively associated with EM in the FBG-affiliated firms, however, FBG-affiliated firms might use opportunistically the real activity manipulation. Second, regulators highlight the change in audit partner/firm rotation, though the study findings indicate that regulators and practitioners may consider the benefits associated with the same network auditors for FBG. Originality/value This research study adds a new investigation to previous literature by examining the role of the same network auditors in the EM of the FBG’ affiliates. To the best of the author’s knowledge, this is the first study to bring new knowledge by investigating the role played by the same network auditors along with the BIG4 same network audit firms in constraining EM in FBG.
{"title":"The same network auditor, family business groups and earnings manipulation: an evidence from emerging market","authors":"Sattar Khan, Y. Kamal","doi":"10.1108/cg-11-2022-0462","DOIUrl":"https://doi.org/10.1108/cg-11-2022-0462","url":null,"abstract":"\u0000Purpose\u0000This paper aims to examine whether family business groups’ (FBG) having the same network auditor among their affiliates mitigates earnings manipulation (EM).\u0000\u0000\u0000Design/methodology/approach\u0000This paper used unbalanced panel data from the years 2010–2019. The sample of the study is composed of 327 nonfinancial listed Pakistan Stock Exchange firms, consisting of 187 FBG-affiliated firms and 140 nonaffiliated firms. The ordinary least square and generalized least square regressions have been used to check the hypothesized relationship. Furthermore, the propensity score matching technique is used to ascertain comparable companies’ features and to control the potential endogeneity problem. Finally, the results are robust to various measures of EM and FBG’ proxies.\u0000\u0000\u0000Findings\u0000The findings of the study show that the same network auditor is reducing EM in FBG affiliates. In addition, the BIG4 same network auditors are also instrumental in constraining EM as compared to non-BIG4 audit firms. Overall, the results of this study depict that the same network auditor in FBG’s affiliated firms significantly influences EM. These results are robust with respect to generalized least squares and the endogeneity problem.\u0000\u0000\u0000Research limitations/implications\u0000This research study has two important implications for the interested parties. First, although the authors find in this research study that the same network auditor is negatively associated with EM in the FBG-affiliated firms, however, FBG-affiliated firms might use opportunistically the real activity manipulation. Second, regulators highlight the change in audit partner/firm rotation, though the study findings indicate that regulators and practitioners may consider the benefits associated with the same network auditors for FBG.\u0000\u0000\u0000Originality/value\u0000This research study adds a new investigation to previous literature by examining the role of the same network auditors in the EM of the FBG’ affiliates. To the best of the author’s knowledge, this is the first study to bring new knowledge by investigating the role played by the same network auditors along with the BIG4 same network audit firms in constraining EM in FBG.\u0000","PeriodicalId":47880,"journal":{"name":"Corporate Governance-The International Journal of Business in Society","volume":null,"pages":null},"PeriodicalIF":5.6,"publicationDate":"2023-06-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"75035734","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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