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1 – 10 of over 102000Francesco Paolone, Matteo Pozzoli, Meghna Chhabra and Assunta Di Vaio
This study aims to investigate the effects of board cultural diversity (BCD) and board gender diversity (BGD) of the board of directors on environmental, social and governance…
Abstract
Purpose
This study aims to investigate the effects of board cultural diversity (BCD) and board gender diversity (BGD) of the board of directors on environmental, social and governance (ESG) performance in the European banking sector using resource-based view (RBV) theory. In addition, this study analyses the linkages between BCD and BGD and knowledge sharing on the board of directors to improve ESG performance.
Design/methodology/approach
This study selected a sample of European-listed banks covering the period 2021. ESG and diversity variables were collected from Refinitiv Eikon and analysed using the ordinary least squares model. This study was conducted in the European context regulated by Directive 95/2014/EU, which requires sustainability disclosure. The original population was represented by 250 banks; after missing data were excluded, the final sample comprised 96 European-listed banks.
Findings
The findings highlight the positive linkages between BGD, BCD and ESG scores in the European banking sector. In addition, the findings highlight that diversity contributes to knowledge sharing by improving ESG performance in a regulated sector. Nonetheless, the combined effect of BGD and BCD negatively impacts ESG performance.
Originality/value
To the best of the authors’ knowledge, this is the first study to measure and analyse a regulated sector, such as banking, and the relationship between cultural and gender diversity for sharing knowledge under the RBV theory lens in the ESG framework.
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Muhamad Umar Mai, Ruhadi Nansuri and Setiawan Setiawan
This study aims to examine the influence of ownership structure and board characteristics on the performance of Indonesian Islamic rural banks (IRB) using the system generalized…
Abstract
Purpose
This study aims to examine the influence of ownership structure and board characteristics on the performance of Indonesian Islamic rural banks (IRB) using the system generalized method of moment model.
Design/methodology/approach
This research uses Indonesian IRB unbalanced annual panel data from 2016 to 2022. IRB performance is measured by return on assets (ROA), return on equity (ROE) and nonperforming financing (NPF). The ownership structure is represented by controlling shareholders, ownership of the board of directors (BD) and ownership of the board of commissioners (BC). Meanwhile, board characteristics are represented by the size of the BC, the proportion of female board directors and female president directors.
Findings
The results show that the ownership structure and board characteristics play an important role in improving the IRB’s performance. Technically, the results show that the size of the BC and the ownership of the BD increase all IRB performance measures. Female president directors and controlling shareholders improve IRB’s performance as measured by ROA and ROE. Women’s boards of directors improve IRB performance as measured by NPF. Meanwhile, the ownership of the BC does not show its effect on all IRB performance measures.
Research limitations/implications
This study fills a literature gap on the influence of ownership structure and board characteristics on IRB Indonesia’s performance. In addition, it adds understanding and insight for Islamic bank regulators, management and IRB depositors in Indonesia.
Originality/value
To the best of the authors’ knowledge, this study is one of the first to provide an empirical survey on the influence of controlling shareholders and board characteristics on IRB performance, particularly in Indonesia.
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The purpose of this article is to present the latest Heidrick and Struggles (H&S) corporate governance report, Towards Dynamic Governance 2014. H&S have been monitoring the…
Abstract
Purpose
The purpose of this article is to present the latest Heidrick and Struggles (H&S) corporate governance report, Towards Dynamic Governance 2014. H&S have been monitoring the behaviour and habits of European boards for the past 15 years. Every two years they publish their European corporate governance report.
Design/methodology/approach
H&S scrutinise the composition of boards in terms of gender, nationality and age; examine their tenure and the regularity of their meetings, and question how collective decisions are made. Using both quantitative and qualitative data collection, they canvass the opinions of board members drawn from the top listed companies of 15 European markets, formulating a unique and shifting bird’s eye view.
Findings
H&S latest corporate governance report, Towards Dynamic Governance 2014, was published in March this year. There is no doubt, if we cast our eyes back to 1999, when the first report was prepared, that there have been notable improvements. The commitment, diversity and flexibility of boards is on the up. Sixty-eight per cent of boards in The Netherlands continue to combine the roles of the chief executive officer and Chair, and 40 per cent of boards in Poland still include no female directors, but the overall trend revealed by the data is positive.
Originality/value
This is a brand new study made up of both quantitative and qualitative data. The report compares the behaviour and progress of different countries but perhaps even more revealing are the conversations with board directors and executive teams conducted as part of the report’s board effectiveness survey. These inputs enable H&S to tell a more nuanced story and to draw conclusions about the ideal future for European boards.
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This article offers an action plan for CEOs who wish to constructively engage their boards in strategy development. In this approach, the board participates in the strategic…
Abstract
This article offers an action plan for CEOs who wish to constructively engage their boards in strategy development. In this approach, the board participates in the strategic thinking and strategic decision‐making processes, adding value but not infringing on the CEO’s and executive team’s fundamental responsibilities. More specifically, in value‐added engagement, the CEO and management lead and develop the strategic plan with directors’ input, and the board generally approves the strategy and the metrics to assess progress. The author details the five key elements critical to successful engagement of the board in strategy development: view strategy as a process, not an event; design parallel but lagged processes; inform and educate the board; collect and analyze director input; generate strategic alternatives. The recommended framework for engaging the board in strategy development is called the “strategic choice process”; it has six steps, with the CEO and his/her team leading the way.
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Dominic Mwenja and Alfred Lewis
This paper aims to examine the impact of board of directors on the performance of not‐for‐profit (NFP) organizations. The study also aims to utilize the six dimensions of…
Abstract
Purpose
This paper aims to examine the impact of board of directors on the performance of not‐for‐profit (NFP) organizations. The study also aims to utilize the six dimensions of effective board performance as suggested by Chait et al., using the theoretical explanations of the resource dependency theory, the agency theory, and the group/decision processes theory. By explaining how these board activities influence organizational performance, we can begin to understand the importance of board influence in determining organizational effectiveness as measured by organizational performance.
Design/methodology/approach
For the purpose of this study, organizational performance attributes are used in line with the strategy used by Nobbie and Brudney. The measurement used includes the perception of board members' view of the overall success in meeting organizational goals, increase or decrease in the number of programs offered by the organization, improvement in the quality of service offered by the organization, and the level of satisfaction by the clients with the level of service provided.
Findings
The survey revealed that the strategic and the political dimensions have a stronger relationship with the perceived organizational performance in nonprofit organizations as compared to the other dimensions.
Research limitations/implications
Given that the majority of the respondents (30) of the study served in religious organizations, this may have skewed the results toward a certain direction that is difficult to ascertain until other studies compare results across different NFP classifications. This suggests that it is important to repeat such a study with a much diverse group of NFPs in addition to measuring other board and organizational dimensions such as board size, executive perceptions, and organization size, and age.
Practical implications
The efforts to link board effectiveness and organizational performance will remain tenuous at best. This is an illusive phenomenon that will continue to elude researchers as long as the dimensions of board effectiveness and organizational performance remain perceptual. The need to understand the strategic orientation of NFPs governance is even greater as these organizations continue to play a major role in the lives of ordinary people in various communities around the world.
Originality/value
In order to understand the effectiveness of the board in NFPs, this study examines three theoretical perspectives that can be utilized to connect the different dimensions of board performance and organizational performance. In previous research, Chait et al. examined the practices of board members at independent colleges and identified six competencies of effective boards. The identified dimensions are: contextual: effective boards understand and take into consideration the culture and norms of the organization they govern; educational: effective boards ensure that their members are knowledgeable about the organization and the board's roles, responsibilities, and performance; interpersonal: effective boards nurture the development of their members as a working group, attend to the board's collective welfare, and foster a sense of cohesiveness; analytical: effective boards recognize the complexities and subtleties of issues and accept ambiguity and uncertainty as healthy preconditions for critical discussions. They raise doubts, explore trade‐offs, and encourage differences of opinion; political: effective boards accept as a primary responsibility the need to develop and maintain healthy relationships among major constituencies; and strategic: effective boards help their organizations envision a direction and shape a strategy for the future. They anticipate potential problems and act before issues become crises.
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Chandra S. Mishra and James F. Nielsen
Outlines previous research on the links between board composition, firm performance and chief executive officer (CEO) compensation, and presents a study of CEO pay‐performance…
Abstract
Outlines previous research on the links between board composition, firm performance and chief executive officer (CEO) compensation, and presents a study of CEO pay‐performance sensitivity, board independence and performance in the US banking industry. Explains the methodology and presents the results, suggesting that for large bank holding companies with average performance, increased board independence reduces pay‐performance sensitivity because internal monitoring is sufficient without extra alignment incentives. Adds that when performance is poor this no longer holds true and compensation contracts are then used to align the interests of managers and shareholders.
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So in the present day there is only one Industrial Training Act though there are 28 industrial training boards implementing their 28 different versions of it. This is…
Abstract
So in the present day there is only one Industrial Training Act though there are 28 industrial training boards implementing their 28 different versions of it. This is understandable. It is indeed inevitable. The Industrial Training Act 1964 invests each individual board with almost complete autonomy to go about its business in the way it chooses. Further, there are no precedents whatsoever for the training boards to follow. Theirs' is a new venture.
Function‐To‐Function‐Architecture (FFA) is a novel architecture for building programmable electronic systems which uses multiple processors and a unique distributed executive. An…
Abstract
Function‐To‐Function‐Architecture (FFA) is a novel architecture for building programmable electronic systems which uses multiple processors and a unique distributed executive. An FFA system is a set of FFA modules interacting via a communications medium. Every FFA module is a complete stand‐alone computer in its own right.
This article discusses the measurement and evaluation of board performance and how this is evolving in different organizations. The article finishes by describing one approach to…
Abstract
This article discusses the measurement and evaluation of board performance and how this is evolving in different organizations. The article finishes by describing one approach to board performance evaluation being pioneered in the United Kingdom.
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1971 CHAPTER 16 An Act to provide further finance for the National Coal Board in respect of pit closures and for the making of payments to workers in the coal industry made…
Abstract
1971 CHAPTER 16 An Act to provide further finance for the National Coal Board in respect of pit closures and for the making of payments to workers in the coal industry made redundant; to increase the limit of the Board's accumulated deficit and provide for its subsequent alteration by order of the Secretary of State; to enable the Board to borrow money otherwise than in sterling and to join in furnishing technical assistance overseas; to make further provision as to the power of the Secretary of State to give directions to the Board with respect to their activities and accounts; and for purposes connected with the matters aforesaid. [30th March, 1971]