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Article
Publication date: 1 February 2004

Olof Brunninge and Mattias Nordqvist

The purpose of this article is to investigate how ownership structure, especially family and/or venture‐capital involvement, as well as entrepreneurial activities, defined…

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Abstract

The purpose of this article is to investigate how ownership structure, especially family and/or venture‐capital involvement, as well as entrepreneurial activities, defined as strategic change and renewal, help explain the involvement of independent members on boards of directors. The CEOs of 2,455 small and medium‐sized, private enterprises from practically all industries were contacted in a telephone survey, resulting in an exceptionally high response rate. The findings reveal that family firms are more reluctant to involve independent directors on their boards than non‐family firms, that presence of venture capitalists increases the frequency of independent board members and that ownership has an impact on board roles. The results do not support the hypothesised relationship that independent directors enhance entrepreneurial activities. One implication of our study is that the often‐argued‐for strategic contribution of outsiders to the boards in family firms may be overemphasised. Another implication is that family firms that choose to acquire additional capital should be aware that this could result in a change in the board composition and the loss of control of the business. However, new and external owners' inclusion on the board seems to be negotiable since there are also venture capitalists that do not insist on board representation.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 10 no. 1/2
Type: Research Article
ISSN: 1355-2554

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Book part
Publication date: 18 April 2016

Laura Berardi, Michele A. Rea and Giulia Bellante

The literature considers three main models of nonprofit sector structure and development: liberal, welfare partnership, and social democratic. This study analyzes the…

Abstract

Purpose

The literature considers three main models of nonprofit sector structure and development: liberal, welfare partnership, and social democratic. This study analyzes the cases of Italian and Canadian nonprofit organizations (NPOs) that operate in two third-sector contexts, widely known as “hybrids.” In particular, we aim to verify whether some features of governance, leadership, and volunteer participation have impacts on the financial performances of selected Italian and Canadian NPOs.

Methodology/approach

Differences between the two studied nonprofit contexts influenced the sampling, the data collection, and the methods of analysis. Data on Italian and Canadian NPOs are analyzed both together and separately, using multiple regression models. Revenues, fund-raising and other grants from the general public, and program expenses are used as measurements of financial performance.

Findings

Our analysis demonstrates that some board characteristics, as well as volunteer participation and representation on the board, have impacts on the nonprofit financial performance. The characteristics of the CEO studied in this work are not significantly associated with the level of financial performance.

Research implications/limitations

This study has several important implications for research on board characteristics, CEO characteristics and volunteer management and governance, as well as implications for practitioners. The limitations of this study are related mostly to the different methods used for sampling NPOs and collecting data in the two different country contexts due to the different level of availability of data.

Originality/value

The past literature has not adequately examined the relationships among the board and CEO characteristics, the role of volunteers in governance and financial performance.

Details

Governance and Performance in Public and Non-Profit Organizations
Type: Book
ISBN: 978-1-78635-107-4

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Case study
Publication date: 5 June 2018

John L. Ward

As founders of First Interstate BancSystem, which held $8.6 billion in assets and had recently become a public company, and Padlock Ranch, which had over 11,000 head of…

Abstract

As founders of First Interstate BancSystem, which held $8.6 billion in assets and had recently become a public company, and Padlock Ranch, which had over 11,000 head of cattle, the Scott family had to think carefully about business and family governance. Now entering its fifth generation, the family had over 80 shareholders across the US. In early 2016, the nine-member Scott Family Council (FC) and other family and business leaders considered the effectiveness of the Family Governance Leadership Development Initiative launched two years earlier. The initiative's aim was to ensure a pipeline of capable family leaders for the business boards, two foundation boards, and FC.

Seven family members had self-nominated for governance roles in mid-2015. As part of the development initiative, each was undergoing a leadership development process that included rigorous assessment and creation of a comprehensive development plan. As the nominees made their way through the process and other family members considered nominating themselves for future development, questions remained around several interrelated areas, including how to foster family engagement with governance roles while guarding against damaging competition among members; how to manage possible conflicts of interest around dual employee and governance roles; and how to extend the development process to governance for the foundations and FC. The FC considered how best to answer these and other questions, and whether the answers indicated the need to modify the fledgling initiative.

This case illustrates the challenges multigenerational family-owned enterprises face in developing governance leaders within the family. It serves as a good example of governance for a large group of cousins within a multienterprise portfolio. Students can learn and apply insights from this valuable illustration of family values, vision, and mission statement.

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Article
Publication date: 4 October 2019

Slobodan Kacanski

The purpose of this study is to show that social relations in a corporate governance platform between members of supervisory boards and between members of supervisory and…

Abstract

Purpose

The purpose of this study is to show that social relations in a corporate governance platform between members of supervisory boards and between members of supervisory and executive board tiers can serve as an alternative viewpoint for understanding mechanisms of social selection in corporate governance networks. The study shows that through the lenses of social network analysis, it is possible to identify and understand how the process of corporate governance member selection unfolds within companies and how that selection process may have been potentially influenced by the cross-board relations, such as interlocking directorships.

Design/methodology/approach

To estimate network parameters and attribute effects of network tie emergence, this study has used exponential random graph models (ERGMs) on corporate governance data of Danish publicly listed companies. Econometric models are applied to estimate parameter statistics which serve further to explain tendencies of tie emergence.

Findings

The results of this study reveal that the process of selection of both supervisory boards and executive directors is interdependent. Also, the study showed that board members are more likely to select popular supervisory board members and top managers who have their expertise gained through multiple companies affiliated with multiple industries. However, these conditions for CEO selection apply only to the extent to which they have their experience gained from multiple companies but not multiple industries.

Originality/value

On one hand, this study demonstrates that being a dynamic practitioner who is exposed to diverse corporate environments by being affiliated with different companies belonging to different industries generally increases practitioners visibility in the corporate governance network, and therefore their attractiveness to boards of directors. On the other hand, the results show that the research on board assemblage, nowadays, should be rather observed through the methodology of social network analysis as the method gives an opportunity to understand structures through relations, from which the executive tier should not be exempted as well.

Details

Corporate Governance: The International Journal of Business in Society, vol. 20 no. 1
Type: Research Article
ISSN: 1472-0701

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Book part
Publication date: 24 November 2016

Susan Keim

Abstract

Details

Followership in Action
Type: Book
ISBN: 978-1-78560-947-3

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Article
Publication date: 1 February 2021

Esam Shehadeh, Doaa Aly and Ibrahim Yousef

The purpose of this study is to analyse the level of online disclosure of firms in the USA and to evaluate the impact of diversity in terms of director nationality…

Abstract

Purpose

The purpose of this study is to analyse the level of online disclosure of firms in the USA and to evaluate the impact of diversity in terms of director nationality (boardroom internationalisation) on online disclosure.

Design/methodology/approach

The authors apply, for the first time, a new modified scoring system to measure online disclosure levels by securing more detailed information on each of the items in the voluntary disclosure index. Regarding the percentage of foreign board members, unlike in previous research, the authors calculate two additional proxies to more accurately specify the level of international diversity on the board: the Blau Index and the Shannon Index. Moreover, the authors use a cross-sectional model for the sampled non-financial S&P500 firms using both ordinary least squares (OLS) and heteroskedasticity-corrected estimates to analyse the impact of boardroom internationalisation on the level of online disclosure.

Findings

The findings reveal that the average online disclosure level for the sample in question is 64% for the 0–1 index and 57% for the 0–4 index. In addition, the results of the regression analysis confirm the study’s proposed hypothesis, which is that the presence of international board members correlates with an improvement in the level of online disclosure. This can be attributed to the fact that foreign directors bring unique skills and knowledge from their home countries and thus, increase board discussion, creativity and innovation, which has a positive impact on the level of online disclosure.

Research limitations/implications

Financial firms are subject to capital requirement regulations; consequently, disclosure practices can be influenced. Therefore, these firms were excluded from the sample of the study.

Originality/value

This research contributes to the body of literature on nationality diversity of firm boards and corporate online disclosure in several respects. Firstly, the study adds an international dimension to the existing literature. Secondly, this study provides new evidence that foreign diversity on the board can improve firm value, insofar as the corresponding enhancement of online disclosure leading to positive capital market implications. Thirdly, the authors use, for the first time, a new scoring system approach to measure the level of online disclosure. Finally, it contributes to the corporate governance literature by basing its analysis on a multi-theoretical approach.

Details

Journal of Financial Reporting and Accounting, vol. 19 no. 4
Type: Research Article
ISSN: 1985-2517

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Article
Publication date: 19 September 2008

Paul M. Collier

This study aims to focus on the accountability of organizations to multiple stakeholders with differing interests and power, where there is an absence of accountability…

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7026

Abstract

Purpose

This study aims to focus on the accountability of organizations to multiple stakeholders with differing interests and power, where there is an absence of accountability towards shareholders.

Design/methodology/approach

Longitudinal field study via participant‐observation.

Findings

The study focuses on the relations between the subsidiary and the parent boards and how a governance improvement plan affected the internal dynamics of the organization and helped to clarify the demands of multiple stakeholders. A stakeholder‐agency model is developed which emphasises the role of governance, the importance of structure and process, and the culture or ethos of boards in which multiple stakeholders may have compatible rather than competing interests.

Originality/value

The paper focuses on the quasi‐public sector and develops stakeholder‐agency theory by identifying governance at the centre of differing relationships with stakeholders with unequal salience where there is both an economic concern with efficiency and a broader social concern.

Details

Accounting, Auditing & Accountability Journal, vol. 21 no. 7
Type: Research Article
ISSN: 0951-3574

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Book part
Publication date: 19 September 2014

Christian Landau

We investigate whether active involvement of private equity firms in their portfolio companies during the holding period of a later-stage private equity investment is…

Abstract

We investigate whether active involvement of private equity firms in their portfolio companies during the holding period of a later-stage private equity investment is related to increased levels in operating performance of these companies. Our analysis of unique survey data on 267 European buyouts and secondary performance data on 29 portfolio companies using partial least squares structural equation modeling indicates that private equity firms, that is, their board representatives, can increase operating performance not only by monitoring the behavior of top managers of portfolio companies, but also by becoming involved in strategic decisions and supporting top managers through the provision of strategic resources. Strategic resources, in particular expertise and networks, provided by private equity firm representatives in the form of financial and strategic involvement are associated with increases in the financial performance and competitive prospects of portfolio companies. Operational involvement, however, is not related to changes in operating performance. In addition to empirical insights into the different types of involvement and their effects, this chapter contributes to the buyout literature by providing support for the suggested broadening of the theoretical discussion beyond the dominant perspective of agency theory through developing and testing a complementary resource-based view of involvement. This allows taking into account not only the monitoring, but also the more entrepreneurial supporting element of involvement by private equity firms.

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Article
Publication date: 9 October 2007

Lee D. Parker

The purpose of this paper is to investigate and evaluate the roles of research journal editorial boards in fostering scholarship and nurturing new knowledge areas and…

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774

Abstract

Purpose

The purpose of this paper is to investigate and evaluate the roles of research journal editorial boards in fostering scholarship and nurturing new knowledge areas and research approaches, typified by the growing qualitative methodological tradition, in the accounting and management disciplines.

Design/methodology/approach

Editors and their boards are considered as trustees of both journals and their stocks of knowledge. Their profiles and multiple roles are elucidated and critiqued, and their scope of influence is delineated.

Findings

The paper reviewing function is revealed as complex and multifaceted, with reviewers falling into several categories of approach to their responsibilities. Supported by journal editors, editorial board members are portrayed as having both direct action and journal policy responsibilities, accepting such positions and roles for a variety of rationales. Their responsibility for fostering the emerging qualitative research tradition in accounting and management is explored and presented as a primary example of the editorial board's role in pushing the boundaries of the discipline.

Research limitations/implications

This paper offers a wider than hitherto articulated specification of the roles and contributions to disciplinary advancement potentially on offer from editors' and editorial board members' strategic approach to their roles.

Originality/value

This paper is one of the first in the published accounting and management research journal literatures to focus on the roles and rationales relating to research journal editorial board membership as a foundation for the academy's knowledge construction.

Details

Qualitative Research in Accounting & Management, vol. 4 no. 3
Type: Research Article
ISSN: 1176-6093

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Case study
Publication date: 1 May 2008

Edward Demarais, Sandra Sheckman and Gina Vega

Doris, the Executive Director of the JCC, had a Board of Directors that lacked the requisite skills, perspective, behaviors, and willingness to change policies and…

Abstract

Doris, the Executive Director of the JCC, had a Board of Directors that lacked the requisite skills, perspective, behaviors, and willingness to change policies and practices in order to meet external environmental opportunities and threats or to address internal competencies and competitive capabilities. Changes in the external environment were exacerbating the JCC's internal deficiencies. In addition, the Board created impediments to the professional staff's efforts to implement good managerial practices and policies. The current management team was acutely aware of the changes in the external environment, how these changes impacted the JCC's operations and what the JCC needed to do in order to meet these challenges. The management team was frustrated by a Board that did not provide leadership, fulfill their responsibilities, hold each other accountable and undermined management by intervening in day-to-day operations. The staff was passively hostile to the Board and to the management team. As consumers, the members' expectations were higher and more demanding. Doris and her management team had to resolve a myriad of strategic and operational issues that confronted the organization.

Details

The CASE Journal, vol. 4 no. 2
Type: Case Study
ISSN: 1544-9106

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