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Article
Publication date: 6 December 2022

Chhavi Jatana

This paper aims to investigate the impact of board characteristics on CEO turnover performance relationship (TPR) in Indian listed firms.

Abstract

Purpose

This paper aims to investigate the impact of board characteristics on CEO turnover performance relationship (TPR) in Indian listed firms.

Design/methodology/approach

A subset of the Standard and Poor’s Bombay Stock Exchange 500 (S&P BSE 500) Index companies was analyzed over the period 2015–2019 using the logistic (fixed-effects) regression model.

Findings

It was found that a weak relationship exists between CEO turnover and firm performance. With respect to board characteristics, board size was found to have a significant role in strengthening the TPR. However, other characteristics, such as board independence, multiple directors, board meetings and board gender diversity, played no role in influencing the TPR.

Research limitations/implications

First, the study period is limited to five years, during which several sample firms did not face any CEO turnover event leading to small sample size. Second, this study considers only the board’s gender diversity, whereas other types of diversity are omitted. Third, this study does not differentiate between insider and professional CEOs.

Practical implications

The findings suggest that regulators should focus on the effective enforcement of laws to strengthen the TPR and improve the monitoring role of boards, particularly in emerging economies like India, which face type II agency problems in addition to traditional principal–agent conflict. The results also offer implications for corporations, investors and academic researchers, highlighting areas that need considerable attention pertaining to corporate governance.

Originality/value

This study discerns the impact of several board-related characteristics on the TPR, particularly after the introduction of the new Companies Act 2013 in the emerging economy of India, where it has not been explored extensively.

Details

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

Keywords

Article
Publication date: 6 December 2022

Philipp Schäpers, Talea Stolte and Henrik Heinemann

To increase the share of women in the top management of companies, legal gender quotas are increasingly being introduced worldwide. Their effect, however, especially on…

Abstract

Purpose

To increase the share of women in the top management of companies, legal gender quotas are increasingly being introduced worldwide. Their effect, however, especially on perceived diversity and employer attractiveness, remains unknown. The purpose of this study is to investigate how a gender quota for a company’s executive board affects potential employees’ evaluation of that company as an employer. Drawing on signaling theory and the rationale of diversity attraction, the authors assumed that both the gender composition of a company’s board and the presence of a quota send signals regarding specific factors associated with diversity (i.e. perceived diversity climate, perceived internal motive for gender diversification and perceived competencies of board members). The authors postulated that these signals are perceived by job applicants and used to evaluate the attractiveness of the company as an employer.

Design/methodology/approach

In a scenario study, the authors manipulated the composition of the management board. That is, participants were presented an executive board that was either homogeneously male (Group 1) or had a female representation of 30% (Groups 2 and 3) or 50% (Group 4). The executive board in Groups 3 and 4 was subject to a statutory gender quota of 30%.

Findings

The results showed that a company with a gender-diverse board was perceived as more attractive by potential applicants than an all-male board. Also, a gender quota did not reduce a company’s employer attractiveness. The results suggest that potential applicants attach importance to board diversity but place less value on the causes that led to it.

Originality/value

Against the backdrop of the war for talent, this study contributes to a better understanding of the impact of gender quotas and factors influencing employer attractiveness. The study showed that when a gender quota is in place, applicants assume to a lesser extent that a company staffs its gender-diverse board of directors out of an inner conviction. Nonetheless, the presence of a gender quota does not significantly reduce the perceived diversity climate, nor does a quota have a negative impact on the employer attractiveness. Thus, using a quota as a means to increase gender diversity does not harm the ends.

Details

Gender in Management: An International Journal , vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1754-2413

Keywords

Article
Publication date: 29 November 2022

Umar Habibu Umar, Abubakar Isa Jibril and Sulaiman Musa

This study aims to investigate the impact of board attributes on the corporate social responsibility (CSR) expenditure of the listed firms before (2019) and during (2020…

Abstract

Purpose

This study aims to investigate the impact of board attributes on the corporate social responsibility (CSR) expenditure of the listed firms before (2019) and during (2020) COVID-19 in Nigeria.

Design/methodology/approach

The data were manually extracted from the annual reports of all the listed companies that published their reports for the years. A total of 266 firm-year observations were generated, comprising 140 and 126 observations for 2019 and 2020, respectively.

Findings

The results indicate that the frequency of board meetings and foreign directors on the board significantly influence CSR expenditure before and during COVID-19. Board independence had a significant positive association with CSR expenditure before COVID-19 but insignificantly positive during it. However, board size and gender diversity do not influence CSR expenditure before and during COVID-19.

Research limitations/implications

The study used secondary data from the annual reports to compare the impact of board attributes on the CSR expenditures of listed firms in Nigeria between 2019 and 2020.

Practical implications

Providing effective CSR regulations and incentives could motivate or mandate the board of directors to incur CSR expenditure within the company’s financial capacity for society’s welfare, particularly under challenging times like COVID-19.

Social implications

Encouraging firms to incur more CSR expenditures to their ability will contribute to poverty alleviation and improve socio-economic development.

Originality/value

This study is one of the few that investigated the effects of board characteristics on CSR expenditure for the welfare of the poor and the needy. Besides, it uniquely focused on comparing the results before and during COVID-19.

Details

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

Keywords

Article
Publication date: 21 November 2022

Hussein Mohsen Saber Ahmed, Sherif El-Halaby and Khaldoon Albitar

This paper aims to examine the mediating role of big data adoption (BDA) on the association between board governance (BG) and audit report lag (ARL).

Abstract

Purpose

This paper aims to examine the mediating role of big data adoption (BDA) on the association between board governance (BG) and audit report lag (ARL).

Design/methodology/approach

This study uses data extracted from financial reports for a sample from EGX100 over the period from 2015 to 2019. This study applies content analysis approach to measure the level of BDA. This study uses ordinary least squares, structure equation modelling and principal component analysis to investigate the relationship between BG, BDA and ARL.

Findings

The findings indicate that BDA can be used as a predictor of ARL for companies listed on the Egyptian stock exchange. The results show that board diversity has a significant effect on ARL when BDA is used as a mediator.

Research limitations/implications

This study only includes technology, telecommunications and health-care industries in the sample.

Practical implications

This paper raises investor and stakeholder awareness for the importance of BDA and corporate governance (CG) procedures in reducing audit report delays in developing countries such as Egypt. This study can assist regulators in developing audit report requirements and enforcing regulations to guarantee timely audit report publication.

Originality/value

This paper provides a shred of unique evidence on the role of BDA in mediating the relationship between BG and ARL in a developing country.

Details

International Journal of Accounting & Information Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1834-7649

Keywords

Article
Publication date: 25 November 2022

Valérie Fernandes, Cemil Kuzey, Ali Uyar and Abdullah S. Karaman

This study aims to examine the roles of board gender and cultural diversities in driving social sustainability practices through the moderating effect of board structure…

Abstract

Purpose

This study aims to examine the roles of board gender and cultural diversities in driving social sustainability practices through the moderating effect of board structure policies in the logistics and transportation sector.

Design/methodology/approach

The authors conducted fixed-effects regression with 2005–2019 data from Thomson Reuters Eikon.

Findings

The results showed that female directors are significant predictors of social sustainability across the four dimensions of human rights, workforce, product responsibility and community development. Additionally, directors with different cultural backgrounds (but not the workforce) are significant determinants of community development, human rights and product responsibility. Furthermore, although board structure policies positively moderate the relationship between board gender diversity and social sustainability, they fail to moderate the relationship between board cultural diversity and social sustainability.

Originality/value

The findings have crucial implications for the logistics and transportation sector's social sustainability and may help the sector align with employees' and society's expectations. The incorporation of board gender and cultural diversities into the research design was a response to calls by the European Union (EU) and the United Nations (UN) to address board configuration and stakeholders' concerns.

Details

International Journal of Physical Distribution & Logistics Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 28 November 2022

Siti Nurain Muhmad, Akmalia Mohamad Ariff, Norakma Abd Majid and Rusnah Muhamad

This paper aims to examine the association between corporate sustainability commitment and cash holding and whether the board’s leadership competency moderates the association.

Abstract

Purpose

This paper aims to examine the association between corporate sustainability commitment and cash holding and whether the board’s leadership competency moderates the association.

Design/methodology/approach

The sample consisted of Islamic banks in Malaysia from 2017 to 2019. The sustainability commitment was measured based on the dimensions of the economic, social and environment of the Sustainable Development Goals (SDG).

Findings

The sustainability commitment of the Islamic banks are low. The regression results are not supportive of the hypotheses on the association between corporate sustainability commitment and cash holding and the moderating effect of board’s leadership competency.

Research limitations/implications

The Islamic banks in Malaysia are still in their early stages to achieve the SDGs, but the trend of disclosure suggests that they are gradually embracing the commitment to sustainability practices. It is in support of the agency theory, with findings indicating greater agency cost that is perceived upon companies with greater sustainability commitments.

Originality/value

This paper integrates the dimensions of the SDG with the value-based intermediation guideline by Bank Negara Malaysia in measuring sustainability commitment of Islamic banks.

Details

Journal of Islamic Accounting and Business Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1759-0817

Keywords

Article
Publication date: 29 November 2022

Sitara Karim, Samuel A. Vigne, Brian M. Lucey and Muhammad Abubakr Naeem

While there is an increased demand from various corporate stakeholders on the need for public companies to have risk management frameworks as well as a stand-alone risk…

Abstract

Purpose

While there is an increased demand from various corporate stakeholders on the need for public companies to have risk management frameworks as well as a stand-alone risk management committee to mitigate risks and simultaneously improve performance, this study investigates the effects of the risk management committee attributes on firm performance, and the role of board size is highlighted on this relationship in Malaysian listed companies.

Design/methodology/approach

Both accounting- and market-based performance measures have been used for measuring performance. A dynamic model using the generalized method of moments (GMM) has been employed to control for potential endogeneity, simultaneity and unobserved heterogeneity.

Findings

The findings reveal that risk management committee attributes such as size, independence and meetings negatively affect book-based performance measures and positively affect market-based performance measures. Moreover, board size positively moderates the risk management committee attributes and performance relationship. The study embraces the predictions of agency theory and resource dependence theory.

Practical implications

The findings are practically significant for Bursa Malaysia, Securities Commission Malaysia to assess the compliance of the Corporate Governance Code (MCCG, 2017) and for academia to further explore significant relationships in other emerging economies.

Originality/value

The paper contributes to multiple aspects: first, it studies the impact of risk management committee attributes on firm performance; second, it investigates the moderating effect of board size on RMC–performance relationship; in the end, the study employs dynamic modeling for estimation process to avoid dynamic endogeneity considered a main econometric problem for CG–performance relationships.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 19 October 2022

Susan Vinnicombe and Sharon Mavin

The paper provides an invited “Viewpoint” from Professor Susan Vinnicombe, along with contributions from Professor Sharon Mavin, on women leaders’ progress on UK company…

Abstract

Purpose

The paper provides an invited “Viewpoint” from Professor Susan Vinnicombe, along with contributions from Professor Sharon Mavin, on women leaders’ progress on UK company boards and suggests areas for future research.

Design/methodology/approach

Draws on data from the annual UK The Female FTSE Board Report (2021) and The Hidden Truth Report (2022), tracking gender diversity on UK company boards. Professor Vinnicombe outlines reflections on progress, and jointly the authors highlight suggested areas for future women-in-leadership research.

Findings

The authors argue against the continued use of the business case for gender diversity and suggest a research agenda for future women-in-leadership research concerning: gender-aware Chairs of Boards and Chief Executive Officers and men allies; access and appointment to senior board roles; and bias in senior appointments. We suggest a return to examining barriers to women’s progress in middle management, the role of middle managers/leaders and the uptake and impact of established flexible ways of work at executive levels. New research is possible into how women leaders in top positions have a positive influence on gender diversity yet are discriminated against by various publics. The authors recommend further intersectional research as a priority for women-in-leadership research to enable further theorizing and feminist progress.

Originality/value

Professor Sue Vinnicombe has dedicated her academic career to questioning barriers to women’s progress in management/leadership and actively influencing organisational practice. Sue was influential in the field before her first co-authored papers were published in Women in Management Review (our predecessor) in 2001 and 2002. Professor Sharon Mavin is a previous co-editor of Gender in Management: an international journal. Her first papers were published in Women in Management Review in 1999 and 2001. Sharon is co-editor of the Special Issue, women-in-leadership research and feminist futures: new agendas for feminist research and impact on gender equality.

Details

Gender in Management: An International Journal , vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1754-2413

Keywords

Article
Publication date: 31 October 2022

Bahaa Sobhi Awwad, Ruaa Binsaddig, Mohammad Kanan and Thaira Al Shirawi

The purpose of this study is to investigate whether there is a relationship between women’s presence on boards of directors and companies’ financial performance and…

Abstract

Purpose

The purpose of this study is to investigate whether there is a relationship between women’s presence on boards of directors and companies’ financial performance and corporate social responsibility (CSR) disclosure and, if so, whether this relationship is positive, negative or neutral.

Design/methodology/approach

The research sample included 47 companies listed on the Palestine Stock Exchange from 2010 to 2020. Panel regression analysis was used to examine the study’s hypothesis and achieve the study’s objectives.

Findings

The presence of women on the board of directors positively affects a company’s financial performance and disclosure of CSR. However, measuring the CSR disclosure sub-components separately shows a decrease in the disclosure index towards both the environment and employees. Moreover, the level of female representation on the boards of directors of the Palestinian companies studied is generally low.

Research limitations/implications

Concerning the study limitations, the sample, which comprised all companies listed on the Palestine Stock Exchange from 2010 to 2020, was small. Concerning the implications of the study results, it is recommended that all companies listed on the Palestine Stock Exchange incorporate women on their boards of directors and in their executive management and audit committees.

Practical implications

The presence of women on Palestinian companies’ boards of directors enhances decision-making policy because of the differences between the genders as well as women’s capacity and unique skills.

Originality/value

This research contributes to the literature on women’s representation on the boards of directors of the Palestinian companies listed on the Palestine Stock Exchange with the possibility of issuing mandatory instructions for their existence. This study also attempts to provide a better understanding of the financial performance and disclosure of CSR of companies with women on these boards and helps determine whether the relationships between these variables are positive, negative or neutral. Furthermore, this study attempts to determine the extent of these companies’ commitment to the indicators of CSR disclosure.

Details

Competitiveness Review: An International Business Journal , vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1059-5422

Keywords

Article
Publication date: 17 October 2022

Renée M. Thompson and Philmore Alleyne

This study aims to investigate measures established to ensure board of directors (BODs) in a state-owned enterprise (SOE) meets the organization for economic cooperation…

Abstract

Purpose

This study aims to investigate measures established to ensure board of directors (BODs) in a state-owned enterprise (SOE) meets the organization for economic cooperation and development (OECD, 2015) guidelines criteria: how they perform their advising and control roles, and interactions within the boardroom using agency theory and OECD guidelines.

Design/methodology/approach

This research adopts a qualitative approach of a board within a SOE in Barbados involving several stages of data collection. A case study approach was used involving interviews of nine board members and seven key management staff, analysis of board minutes and annual reports.

Findings

BODs follow majority of the OECD (2015) guidelines for good governance. The Chairman allowed full discussion and input from BODs. The board members’ diverse qualifications and skills added value to the organization. However, appointments to the board were heavily slanted toward political considerations which at times may have skewed judgments. Boardroom interactions reflected quality contributions from the BODs. Decision-making was lengthy and tedious. Boardroom atmosphere could be territorial.

Research limitations/implications

Political interference remains an issue facing BODs in executing their roles. This study did not observe board meetings but perceived views via the lens of BODs and management.

Originality/value

This paper adds to the existing body of knowledge of SOE board governance based on OECD (2015) guidelines and how the board performs its advising and control roles. Insights are gained on how board processes contribute to boardroom interaction by using agency theory as the theoretical framework.

Details

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

Keywords

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