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1 – 10 of over 2000
Article
Publication date: 13 April 2020

Sadi Boğaç Kanadlı, Pingying Zhang and Nada K. Kakabadse

Board diversity has been a hotly debated topic in the field of corporate governance. The paper examines the role of board chairperson and its moderating effect on the relationship…

Abstract

Purpose

Board diversity has been a hotly debated topic in the field of corporate governance. The paper examines the role of board chairperson and its moderating effect on the relationship between job-related diversity and boards’ strategic tasks performance. The purpose of this paper is to add on our body of knowledge about the impact of job-related diversity on boards’ strategic tasks performance.

Design/methodology/approach

The paper applies the structural equation modeling (SEM) technique to examine survey responses from chief executive officers (CEOs). Both the measurement model and structural model have obtained good results, supporting the appropriateness of using the SEM approach.

Findings

The findings suggest that there is a positive association between job-related diversity and boards’ strategic tasks performance, which is moderated by a chairperson’s leadership efficacy and the option of a former-CEO as board chair.

Practical implications

To achieve the intended effect of job-related diversity in boards, policymakers need to be mindful about the importance of the board chairperson. Board chairperson’s characteristics such as leadership efficacy and a former-CEO experience would amplify the positive effect of diversity.

Originality/value

This research paper contributes to the literature on board diversity, board leadership and strategic management of firms. Findings validated researchers’ concern about the negligence of examining moderating factors in board diversity research. Moreover, results echo the concern that board leadership research should shift the attention from structural aspects to the behavioral issues. Finally, this study is the first to show the positive influence of a board chairperson in disseminating benefits of a diverse board.

Details

Corporate Governance: The International Journal of Business in Society, vol. 20 no. 4
Type: Research Article
ISSN: 1472-0701

Keywords

Article
Publication date: 9 August 2022

Daniel Kipkirong Tarus, Joel Kiplagat Tuwey and Jacob Kimutai Yego

Using the resource dependence and legitimacy theories, this research aims to examine the relationship between board attributes and human rights reporting, as well as the…

Abstract

Purpose

Using the resource dependence and legitimacy theories, this research aims to examine the relationship between board attributes and human rights reporting, as well as the interaction effect of board chairperson experience on the relationship among listed firms at the Nairobi Securities Exchange (NSE).

Design/methodology/approach

This study collected data from annual reports of firms listed on the NSE from 2009 to 2019 using content analysis to examine how boards influence human rights reporting. A total of 547 firm-year observations were used to test the hypotheses. This study used a hierarchical regression model to examine the relationship.

Findings

This study found that board attributes are important predictors of human rights reporting. This study shows that both board diversity and board independence have a positive impact on human rights reporting. Furthermore, the interaction results revealed that having a highly experienced chairperson strengthens the effect of board independence on human rights reporting; however, this study found that experienced chairperson reduces the influence of board diversity on human rights reporting.

Research limitations/implications

The findings suggest that board diversity and independence are essential attributes to which listed companies should pay attention when appointing board members. Moreover, the chairperson's leadership on the board is critical in ensuring that publicly trading companies adopt policies that disclose human rights information.

Originality/value

This paper provides insights into Kenya's human rights disclosure practices. It also analyzes how boards influence human rights disclosures, an empirical test that has received little attention in the previous literature. This study emphasizes the importance of board members and the chairperson in advocating for human rights reporting to improve corporate sustainability.

Details

Corporate Governance: The International Journal of Business in Society, vol. 23 no. 2
Type: Research Article
ISSN: 1472-0701

Keywords

Article
Publication date: 5 April 2024

Thanh Dung Nguyen, Thuong Harvison and Ali Ashraf

Employees play a vital role in the success of a corporation. While boards of directors are created to protect shareholders’ interests, it is unclear if these directors also ensure…

Abstract

Purpose

Employees play a vital role in the success of a corporation. While boards of directors are created to protect shareholders’ interests, it is unclear if these directors also ensure employee welfare. In this vein, our paper examines the relationship between board leadership structure and employee well-being.

Design/methodology/approach

The authors employ several analysis techniques, including univariate analysis, ordinary least squares (OLS) regressions, two-stage least squares (2SLS) regressions, propensity score matching methodology, the Heckman Selection model and difference-in-differences analysis. The sample comprises USA public firms for the period 1998–2018.

Findings

Our findings indicate that having an independent chairperson can significantly benefit the welfare of employees, especially for firms with overly powerful chief executive officers (CEOs) and during times of financial distress.

Originality/value

Independent leadership structure is one of the crucial board characteristics that have not been examined to explain employee welfare at firms. We find that an independent chairperson can mitigate the negative effect of overly powerful CEOs on employee benefits. Importantly, independent chairpersons are beneficial for employees in difficult times and when CEOs are busy with daily activities.

Details

International Journal of Managerial Finance, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1743-9132

Keywords

Article
Publication date: 9 April 2024

Peter Kodjo Luh, Miriam Arthur, Vera Fiador and Baah Aye Aye Kusi

This study aims to examine how woman corporate leadership indicators and environmental, social and governance (ESG) disclosure in listed banks on Ghana Stock Exchange are related.

Abstract

Purpose

This study aims to examine how woman corporate leadership indicators and environmental, social and governance (ESG) disclosure in listed banks on Ghana Stock Exchange are related.

Design/methodology/approach

Data was obtained from the audited annual reports of the banks for the period 2006–2020. Empirical result estimation was achieved using Panel Corrected Standard Errors.

Findings

The result revealed that female chief executive officer (CEO), female board chairperson and board gender diversity are associated with higher disclosure of ESG issues in listed banks in Ghana in overall terms. However, in terms of individual disclosures, female board chairperson positively impacts social disclosure, whereas both female CEO and female board chairperson affect governance disclosure positively.

Research limitations/implications

In this era of business where there is much emphasis on green business and investment by various stakeholders for purposes of ensuring business legitimacy, the result implies that banks must consider females to occupy the positions of CEO and board chairperson since that can help to improve ESG performance of banks.

Practical implications

In this era of business where there is much emphasis on green business, socially responsible investment and impact investment by various stakeholders, the result implies that banks must consider improving the representation of women in leadership since that can help to improve ESG performance of banks and hence ability to attract more investors.

Originality/value

To the best of the authors’ knowledge, this is the first study to provide empirical evidence from a developing country perspective in Sub-Saharan Africa that gender of bank leadership has implications for ESG disclosure.

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: 23 April 2024

Yu-Lin Chen and Mei-Chu Huang

Despite the well-recognized importance of recycled water, the study of industry-peer pressure on recycled water is relatively new. This study investigates how organizations…

Abstract

Purpose

Despite the well-recognized importance of recycled water, the study of industry-peer pressure on recycled water is relatively new. This study investigates how organizations experience and react to industry-peer pressure to set recycled water targets. Additionally, this study investigates the role of board chairs involved in sustainability committees in contributing to responses to industry-peer pressure.

Design/methodology/approach

Using Eviews 12, this study employed a pooled logistic regression model to analyze data from 1,346 firms on Taiwan and Taipei exchanges (2017–2020).

Findings

The findings revealed that frequency-based imitation drives recycled water target-setting diffusion. However, there is no direct relationship between outcome-based imitation and recycled water target-setting. Notably, outcome-based imitation drives the adoption of recycled water target-setting of firms with board-chair membership in sustainability committees.

Research limitations/implications

This study faces certain data limitations. First, this study primarily focuses on water recycling. Future research could explore other ways to reduce water usage, such as using water-efficient equipment. Second, this study gathered information solely on the presence or absence of a board chairperson on the sustainability committee. Future researchers could explore the impact of the composition of sustainability committee on recycled water target-setting. Lastly, the sample used in this study is restricted to Taiwan's corporations that existed during 2017–2020. Future researchers may consider adopting a longitudinal design in other economies to address this limitation.

Practical implications

The findings of this study offer several guidelines and implications for recycled water target-setting and the composition of sustainability committees. It responds to an urgent call for solutions to water shortages when pressure from governments and nongovernmental organizations is relatively absent. The number of industry peers that have already set recycled water targets is indispensable for motivating firms to set their own recycled water targets. In terms of insufficient water-related regulatory pressure and normative pressure, this study found evidence suggesting that the direct motivation for setting recycled water targets stems from mimetic pressures via frequency-based imitation. The evidence in this study suggests that policymakers should require companies to disclose their peers’ recycled water target information, as doing so serves as an alternative means to achieving SDG 6.3.

Social implications

Recycled water target-setting might be challenging. Water recycling practices may face strong resistance and require substantial additional resources (Zhang and Tang, 2019; Gao et al., 2019; Gu et al., 2023). Therefore, this study suggests that firms should ensure the mindfulness of board members in promoting the welfare of the natural environment when making recycled water target-setting decisions. To reap the second-mover advantage, firms must consider the conditions in which board members can more effectively play their role. Corporations may help their chairpersons in setting recycled water targets by recruiting them as members of sustainability committees. Meanwhile, chairpersons tend to activate accurate mental models when the water conservation performance of pioneering industry peers is strong enough to indicate the potential benefits of adopting recycled water target-setting. Investors’ and stakeholders’ understanding of how the composition of sustainability committees is related to recycled water target-setting may help to identify the potential drivers of firms’ water responsibility. Investors and stakeholders should distinguish firms in terms of the board chair’s membership of their sustainability committee and focus on water-use reduction outcomes in the industry. This study provides insights into circumstances whereby chairpersons help to restore the water ecosystem.

Originality/value

This study explains how frequency-based and outcome-based imitation are two prominent mechanisms underlying the industry-peer pressure concerning recycled water target-setting. Moreover, this study fills literature gaps related to the moderating roles of board-chair membership in sustainability committees concerning industry-peer pressure on recycled water target-setting.

Details

Management Decision, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 20 December 2017

Filipe Morais, Andrew Kakabadse and Nada Kakabadse

The purpose of this paper is to use Stewart’s model of role as a lense from which to explore chairperson and CEO role dynamics in addressing strategic paradox and tension.

1186

Abstract

Purpose

The purpose of this paper is to use Stewart’s model of role as a lense from which to explore chairperson and CEO role dynamics in addressing strategic paradox and tension.

Design/methodology/approach

The paper draws on 29 semi-structured, in-depth interviews with chairpersons and CEOs of UK-listed companies. Interview data are subjected to role analysis using Stewart’s (1982) Demands-Constraints-Choice (DCC) model of role.

Findings

Findings indicate that relationship levels of trust, communication and chairperson time enable strategic tensions to be raised and confronted in the relationship reducing defensiveness. Two distinct approaches to handle strategic tensions are found. The CEO-led approach predominates and rests on less flexible role boundaries, requiring the chairperson to proactively identify strategic tensions and perform an advisory/mentoring role. The shared leadership approach, less prevalent, rests on highly flexible role boundaries where the skills and experience of each incumbent become more relevant, enabling the separation of efforts and integration of strategic tensions in the relationship in a “dynamic complementarity of function”.

Research limitations/implications

The paper only applies to the UK context and is limited to contexts where CEO and chairperson roles are separate. The paper draws on individual perceptions of chairperson and CEOs (i.e. not pairs).

Practical implications

The paper provides insights to practicing CEOs and chairperson on two distinct ways of working through strategic paradox and tensions.

Originality/value

The paper adds to the scarce literature at chairperson and CEO roles and strategic paradox and tension.

Details

Corporate Governance: The International Journal of Business in Society, vol. 18 no. 1
Type: Research Article
ISSN: 1472-0701

Keywords

Article
Publication date: 11 March 2014

Lin Yang and Danni Wang

The paper aims to empirically examine the questions of how top management team (TMT) characteristics, including TMT heterogeneity and vertical dyads differences between TMT and…

3842

Abstract

Purpose

The paper aims to empirically examine the questions of how top management team (TMT) characteristics, including TMT heterogeneity and vertical dyads differences between TMT and Board Director, influence entrepreneurial strategic orientation, as well as how industry environment and corporate ownership moderate those relationships.

Design/methodology/approach

The paper designs the panel data on the listed companies of China's Small and Medium-sized Enterprises Board for the period 2006-2010, and uses hierarchical regression analysis and grouping regression analysis when examining the relationships among variables involved.

Findings

The paper provides empirical insights about how top management team (TMT) characteristics, including TMT heterogeneity and vertical dyads differences between TMT and Board Director, influence entrepreneurial strategic orientation, as well as how industry environment and corporate ownership moderate those relationships. It suggests that, except for TMT educational background, the heterogeneity of TMT age, gender, functional experience, and the vertical dyad differences between TMT and board chairperson significantly and positively impact ESO. Furthermore, industry environment and corporate ownership will moderate the relationship between TMT characteristics and ESO.

Originality/value

This paper fulfills an identified need to study how top management team characteristics influence entrepreneurial strategic orientation, as well as how industry environment and corporate ownership moderate those relationships.

Details

Management Decision, vol. 52 no. 2
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 16 January 2023

Peter Kodjo Luh and Baah Aye Kusi

This study aims to investigate the impact of female chairperson, female chief executive officer and presence of females on boards on listed firms’ profitability using data from…

Abstract

Purpose

This study aims to investigate the impact of female chairperson, female chief executive officer and presence of females on boards on listed firms’ profitability using data from Ghana.

Design/methodology/approach

This study used ordinary least square estimation and generalized least square (i.e. fixed and random effect estimation techniques) estimation on the data of 15 nonfinancial listed firms on Ghana Stock Exchange between 2010 and 2020.

Findings

The results show that while males dominate corporate executive positions in listed nonfinancial firms in Ghana, females serving in top corporate executive positions like chief executive officer, board chairperson and female board membership positively impact listed firms’ performance in the form of return on assets, net profit margin and gross profit margin. These findings are consistent even when year and industry effects are controlled for. This suggests that enacting policies at the national and firm levels to encourage female participation in corporate executive roles/positions are critical for promoting firm performance.

Originality/value

This study extends extant empirical literature on the economic role of female executives in firm performance from the developing context of Ghana. With calls in literature for more studies on the subject matter in varied contexts and conditions, this study takes the discussion a step further by investigating whether the gender of those in positions such as board chairperson and chief executive officer matters in firm profitability in Ghana.

Details

Gender in Management: An International Journal , vol. 38 no. 4
Type: Research Article
ISSN: 1754-2413

Keywords

Article
Publication date: 17 October 2023

Peter Kodjo Luh

This study aims to examine how woman leadership (i.e., woman board chairperson, woman chief executive officer (CEO) and board gender diversity) affects audit fee and also…

Abstract

Purpose

This study aims to examine how woman leadership (i.e., woman board chairperson, woman chief executive officer (CEO) and board gender diversity) affects audit fee and also ascertained the interactive effect of woman leadership and gender diversity on audit committee on audit fee.

Design/methodology/approach

The study applied ordinary least square and fixed-effect estimators on the data of 21 universal banks in Ghana for the period 2010–2021 to estimate the empirical results.

Findings

It is revealed that under the leadership of women (woman CEO and board gender diversity), higher external audit quality is ensured as higher audit fee is paid. Interestingly, it was found that with the presence of women on the audit committee, the integrity of internal controls and internal audit procedures are enhanced, which leads to quality financial reporting, calls for lower audit effort, hence lower audit fee.

Practical implications

The result indicates that firms can rely on the leadership of women in ensuring quality external audit and quality financial reporting, which ultimately helps to minimize the information risk to all stakeholders.

Originality/value

The paper contributes to extant literature by establishing that, under the leadership of women in banking entities from a developing country context, external audit quality and financial reporting are achieved.

Details

Gender in Management: An International Journal , vol. 39 no. 3
Type: Research Article
ISSN: 1754-2413

Keywords

Article
Publication date: 16 November 2015

Naveen Kumar Srivastava

The financial crisis of 2008-2009 was truly global in nature that affected all sectors and countries of the world. Being considered that a board of directors is the main…

1213

Abstract

Purpose

The financial crisis of 2008-2009 was truly global in nature that affected all sectors and countries of the world. Being considered that a board of directors is the main governance mechanism through which a company is governed and managed. The purpose of this paper is to examine the effect of the governance structure of a company on its financial performance during the period of financial crisis.

Design/methodology/approach

The study investigates the effect of board structure parameters – board leadership, directors and board size on the financial performance for 164 non-financial listed firms in India during the period of financial crisis of 2008-2009.

Findings

The study finds a significant positive effect with Chief Executive Officer duality, executive chairperson and proportion of inside directors on the firm’s financial performance. Independent directors have no significant influence, while non-executive (grey) director’s being affiliated with the firm has a negative influence on firm’s financial performance. A larger board has a negative relationship with the firm’s financial performance.

Research limitations/implications

The study is limited to large non-financial firms of the Bombay Stock Exchange-200 index. The study may be extended to include other firms to generalize the findings.

Practical implications

Results imply that during the period of financial distress, a company having more inside (or management) directors with an executive chairperson are in a better position to manage company resources with positive impact on financial performance. Companies with larger boards may find it difficult to take quick decisions, which ultimately affect their performance.

Originality/value

The study is original in its idea of assessing company strategy to adopt a suitable governance structure that can sustain its performance during the period of financial crisis.

Details

Journal of Strategy and Management, vol. 8 no. 4
Type: Research Article
ISSN: 1755-425X

Keywords

1 – 10 of over 2000