Board Characteristics
159109882
Do board characteristics drive firm performance? An international perspective
The aim of our research is to analyze how board characteristics influence firm performance. In this paper, we specifically examine how board size, board independence, CEO duality, female directors and board compensation affect firm performance in a sample of international firms. The final panel data sample is composed of 10,314 firm year observations belonging to 34 countries that have been grouped into six geographic zones: Africa, Asia, Europe, Latin America, North America and Oceania. Drawing on agency theory and dependence resource theory, we posit five hypotheses. The results show that some board characteristics, such as board size, board independence and having a female director, are positively associated with firm performance, whereas CEO duality, contrary to our expectations, also impacts positively on firm performance. Moreover, board compensation is not associated with firm performance. Tobin's Q was used to measure firm performance, although an accounting measure was also employed for robustness analyses and to provide more validity to our results.
Review of Managerial Science
Maria Consuelo Pucheta-Martinez Isabel Gallego-Alvarez
229128537
Board characteristics and firm performance
Lauri Vaatainen
197804744
Board characteristics and corporate social responsibility: Does family involvement in management matter?
Abstract Prior research on corporate governance has mixed views on board effectiveness. We argue that boards can be functional or dysfunctional depending on a family's involvement in management in the context of corporate social responsibility (CSR) We hypothesize that, when boards have independence and diversity, firms with weak family involvement will engage in CSR, since boards monitor executives and provide relevant resources to promote CSR as intended functional view whereas firms with strong family involvement will disengage from CSR, since boards reinforce the family's interests, merely serving as a means to signal positive corporate image to external stakeholders dysfunctional view Using a dataset of Korean firms, we find, when a board is composed of outside directors with equity ownership and directors with diverse education backgrounds, CSR engagement increases among professionally managed firms, but decreases among family managed firms. Overall, board characteristics have different implications depending upon the extent of a family's involvement in management.
Journal of Business Research
Won-yong Oh Young Kyun Chang Rami Jung
201346588
The impact of corporate social responsibility disclosure and board characteristics on corporate performance
Abstract The study aims to investigate the impacts of corporate social responsibility disclosure and board characteristics such as (board independence, the board size, and gender diversity) on corporate performance. In order to find out the impact, this study employed a quantitative method using secondary data collection and analysed data using smart partial least squares (PLS) The population for this study is the global energy corporations which are the top two hundred fifty corporations in the world for a year period, 2016, 2017, and 2018. This study showed that the impact of corporate social responsibility disclosure on corporate performance is not significant, and board independence. Accordingly, the board size and gender diversity have a significant impact on corporate performance.
Hosam Alden Riyadh Eko Ganis Sukoharsono Salsabila Aisyah Alfaiza
169742132
The Impact of Board Characteristics on Earnings Management in the International Oil and Gas Corporations
This study examined whether the Board Characteristics have any impact on Earnings Management among the international Oil and Gas Corporation in the world. The Board Characteristics such as (board independence, board size, board diversity, and CEO duality) This study applied a quantitative research approach, secondary data, a sample of 71 corporations were selected from Top 250 corporations for one year (2016) The findings of this study indicated that the board independence has a significant impact on the reduction of earnings management. In contrast, the board size does not have any impact on the reduction of earnings management, due the larger the board size less efficient on monitoring of the board, when there are more members on the board it is more difficult for the board members to monitor the management, While gender diversity has a significant impact on the reduction of earnings management, Finally, The CEO Duality has a significant impact on the increase of earnings management, which means the separating the functions of CEO and Chair of the Board may enhance the Board of Directors' monitoring and control ability, and improve Directors' information processing capacities.
Hosam Alden Riyadh Al Azeez Eko Ganis Sukoharsono Wuryan Andayani
158285029
Board Characteristics and Credit Union Performance
We examine the role of board characteristics on the performance of Australian credit unions during the period 2004&#8211;2012. Credit unions are unique as they are member&#8208;owned institutions, and their directors are democratically elected by their members #8211; an unusual governance structure that poses challenges for board effectiveness. We find that board remuneration, board expertise and attendance at meetings are associated with increased credit&#8208;union performance and are consistent with the goal of maximising member benefits. While the unique features of credit unions limit the presence of external monitoring mechanisms, we provide evidence that these board characteristics are relevant for credit unions.
Luisa Unda Kamran Ahmed Paul R Mather
219344443
Board Characteristics and Financial Reporting
The past corporate accounting scandals have left the accounting profession in doubts of its integrity and relevance. Against this backdrop, we investigated the impact of board characteristics on financial reporting quality of listed manufacturing firms. The study was driven by the positivist research philosophy and a deductive research approach using a multi method quantitative research design. Descriptive and inferential statistics were employed to summarize the data and to draw inference on the population studied. We employed the Generalized Linear Model Regression in testing the hypotheses stated. Findings revealed that board expertise was statistically significant and positively related to financial reporting quality at 5% level of significance, while board independence and board diversity was found to be insignificantly related to financial reporting quality at 5% level of significance. The study concluded that board characteristics partially affect financial reporting quality. Hence, we recommended that non executive directors on the board should be reduced to cut excessive management cost.
Hope Osayantin Aifuwa Keme Embele
158714741
Do board characteristics affect bank performance? Evidence from the Bahrain Islamic banks
Purpose Although most previous studies interested in Islamic banks have focused on quantitative aspects such as performance, risk and stability, this paper aims to deal with the institutional dimension and focus precisely on the link between board characteristics and bank performance. Design/methodology/approach Based on a data related to 13 banks in Bahrain observed over the period of 2005 2011, this study investigates the impact of board directors on the level of performance. To this end, the authors have used two empirical approaches. The first one is the panel data analysis with regard to random effect (RE) regression. The second one is the generalized method of moments (GMM) in system, which checked the soundness of the first result. Findings The result of RE regression indicates that the board duality is positively and significantly correlated with the bank performance for both ROA (return on assets) and ROE (return on equity) However, the board size exerts a positive and significant impact only when profitability is measured by ROE. The authors find that regression with GMM in system confirms the RE result exclusively for ROE. Findings also indicate that a financial crisis exerts a negative but not significant effect on bank performance. Practical implications These findings are relevant to both policymakers and regulators. Islamic banks in Bahrain should grant more importance to the structure and the quality of the board to improve their performance. Originality/value This study aims to extend the existing literature by focusing about the role of the Shariah board in bank performance.
Abdelaziz Hakimi Houssem Rachdi Rim Ben Selma Mokni Houda Hssini
144940128
Exploring the Relationship Between Board Characteristics and CSR: Empirical Evidence from Korea
Previous studies in Western contexts have examined the relationships between various board characteristics and CSR, yet the relationships need to be re examined in non Western contexts given differential theoretical premises across contexts. We specifically propose that the effects of board characteristics on CSR in Korea should be patterned distinctively from Western based existing literature, focusing on three important board characteristics, such as a board's independence, social ties, and diversity. Using a panel dataset from large Korean firms, we found that various relationships between board characteristics and CSR were non linear, whereas most of the previous research on Western contexts found that the same relationships were linear. Specifically, curvilinear relationships were found between CSR and board independence (i.e. exponentially growing shape) CEO outside director social ties (i.e. inverted U shape) and educational diversity (i.e. U shape) Our findings suggest that there is no universal feature of CSR supportive board characteristics due to the unique characteristics of various institutional contexts.
Young Kyun Chang Won-yong Oh Jee Hyun Park Myoung-Gyun Jang
158123436
Board characteristics and firm value for Indian companies
Purpose This paper aims to explore the relationship between board characteristics and firm performance for Indian companies. Design/methodology/approach Corporate governance structures of 391 Indian companies out of CNX 500 companies listed on National Stock Exchange have been studied for their impact on performance of companies. Panel data regression methodology has been used on data for five financial years from 2010 to 2014 for the selected companies. Performance measures considered are market based measure (Tobin's Q) and accounting based measure (return on asset [ROA] Findings The empirical findings indicate that the market based measure (Tobin's Q) is more impacted by corporate governance than the accounting based measure (ROA) There is a significant positive association between board size and firm performance. Board independence is found significantly related to firm performance. Number of board meetings is found to be sending positive signal to the market creating firm value. Separation of chief executive officer and chairman of the board is found to be value creating, and overburdened directors affect firm performance adversely. Research limitations/implications Limitations of the study are in terms of methodology and possible omission of some variables. It is understood that the qualitative dynamics happening inside board meetings impact corporate performance. The strategic decision making process adopted by the boards to fight competition or to increase market share is not easily available in public domain. The decision making processes and monitoring for implementation of those decisions could impact corporate governance performance relationship. These parameters and their impact on corporate performance are not covered under the scope of the present study. Originality/value The paper adds to the emerging body of literature on corporate governance performance relationship in the Indian context by using a reasonably wider and newer data set.
Rakesh Kumar Mishra Sheeba Kapil