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This exploratory study attempted to determine the level of formalization and implementation of corporate governance and risk management practices, and the role of human resource management in the design and formulation of such practices. This study also attempted to derive some patterns of association among the variables studied, including the degree to which specific human resource management practices were linked with the overall corporate governance and risk management objectives. Human resource management was consulted from time to time during the formulation of strategic plan, the design of behavioral control mechanisms, and the development of risk management guidelines and formal corporate culture programs. However, it was consulted only during implementation of corporate governance structures at the board level. Generally, human resource management involvement in the formulation of corporate governance and risk management mechanisms was related to the degree of formalization and implementation of such mechanisms, but not to the degree of congruence of human resource management functions with corporate governance and risk management objectives. However, the degree of formalization and implementation of corporate governance structures at the board level was related to the degree of congruence of human resource management functions with corporate governance and risk management objectives and the driver measures of performance. The latter was likewise related to mechanisms of behavioral control.

There are a variety of monitoring and control mechanisms to resolve the agency conflict between shareholders and their agents, the managers. Given the centrality of the shareholder wealth maximisation goal in corporate finance, the function of these mechanisms is to ensure that managers pursue that goal. These mechanisms include: an independent board, outside block shareholdings including institutional shareholders, managerial ownership and incentives, lenders, the managerial labour market and the market for corporate control. We explore the inter-dependency of these control mechanisms and whether and how they complement, or substitute for, one another. The role of the market for corporate control, including proxy contests and outright takeovers, in resolving agency conflicts, the impediments to takeovers and their effectiveness are reviewed. We seek to explain the well-documented failure of acquirers to create value, in terms of the ineffectiveness of the corporate governance system in acquiring companies.

While the idea of control packages goes back to the early 1980s, empirical management accounting researchers have been reluctant to examine this broader view of management control. Past research has addressed the use of management control for the organization as a whole, as well as for specific objects of control. While those objects of control typically involve information available for internal uses, we do not know much about the role of management control when the object of control is comprised of information intended to be disclosed outside the organization. This study aims to examine the role of a control package to manage web-based corporate reporting. More specifically, this study aims to examine the antecedents and consequences of a management control package related to web site content. The results suggest that perceived environmental uncertainty and stakeholder orientation are key factors that influence the extent of use of the management control package. Moreover, the extent of use of a management control package is associated with the quality of web site content but not the quantity of information disclosed.

Past research examining country-level corruption found that corruption reduces foreign direct investment. However, this research lacks implications for multinational corporations considering operating in high corruption countries. Recent international research has examined subsidiary challenges beyond initial investment decisions, but has not addressed operational challenges posed by corruption. Research investigating country-level corruption as a liability of foreignness (LOF) is needed because this theoretical perspective specifically examines mechanisms for managing and controlling subsidiaries. This paper utilizes the LOF perspective, integrating learning, international human resource management, and agency theories, to understand how corruption affects subsidiary adaptation strategies.

The board of directors of a firm is a governing body exercising key top-level decisions. Due to the involvement of the controlling families, boards of directors of family firms have been found to behave differently than those of other organizations. Besides family control, national and/or regional contexts have been suggested to influence how companies are governed. Boards of directors of family firms have been studied mostly in developed regions and knowledge from developing regions such as Latin America is scarce. This chapter summarizes the main findings about boards of directors in family firms and compares this research with our knowledge from Latin America. It discusses the different challenges and opportunities that owners of family firms and boards of directors face in the Latin American context. Finally, it suggests that research on boards of directors of family firms in Latin America has a very promising future as it still has to validate and/or contextualize findings in developed regions, overcome some theoretical and empirical limitations, explore some salient characteristics related to the institutional context in depth, and provide recommendations linking board characteristics and firm performance.

The 1997 financial crisis in Asia has entailed significant changes and governance reforms in the Korean banking industry. This study investigates the impact of corporate governance on the risk and return of Korean banks during the 10 years that followed the financial crisis era. In particular, we investigate the ownership structure of banks, the extent of involvement of foreign institutions and investors in ownership and board membership of Korean banks, and the heterogeneity of board structure on bank performance. Our findings indicate that foreign ownership, the extent of external board involvement, and the presence of foreign directors on the board are associated with significantly higher bank returns. Although foreign ownership and the number of outside board directors are associated with lower risk, the involvement of foreign board members is positively associated with risk. The results are fairly robust to a battery of tests and control variables, and offer the first detailed empirical documentation of the Korean banking governance reform and its achievements since 1997.

Given prior limited research on boards in clean-tech enterprises, we investigate what constitutes an effective board exploring in-depth: who the board members are, what roles they perform and how these roles are performed.

Our study is an inductive, multiple case study of five clean-tech enterprises established in Norway.

We find that board composition in terms of complementary resources that the top management team lacks added by outside directors, their increased engagement in the board service role and board behavioural integration are important constituents of board effectiveness, which in turn translates into the increased levels of the firm’s strategic action capabilities, both action speed and breadth.

We suggest that these three constituents (prevalence of outside directors, board service role engagement and board behavioural integration) together make up the board contribution, which is most valued by clean-tech enterprises in the earliest stages of their development. Future research could be conducted in other types of high-tech start-ups and/or in other hybrid social enterprises to strengthen the generalizability of our findings.

While the mainstream governance research focuses on for-profit boards in large established companies, our study adds to the research on non-for-profit governance and boards in clean-tech enterprises that are both small entrepreneurial and hybrid social enterprises.

The chapter provides a case study of the strategic-level employee involvement (EI) program at a high-performance company, Delta Air Lines. EI at Delta – probably the most extensive in breadth, depth, and representational structure for nonunion workers at an American company – extends from shop floor to board room. Attention here is on the board component: a group of five peer-selected employees called the Delta Board Council (DBC) which has a nonvoting seat on the board of directors and participates in a wide range of strategic decisions and roles. The chapter discusses why this kind of representational EI group, although widespread up to the 1930s, is now quite rare in the United States. The main part of the chapter focuses on the structure, purpose, and accomplishments of the DBC, presented through a question and answer (Q&A) interview with a founding DBC member. Provided are numerous EI “lessons-learned” and “do’s” and “don’ts” for managers.

Purpose – The chapter aims to understand what kind of policy approach has been more successful in facilitating the involvement of patients and the public in the design and provision of health-care services at the local level and the explanatory factors justifying the implementation outcome.Methodology – By applying Richard Matland's ambiguity/conflict policy implementation model, the chapter analyses the impact of a number of policies introduced after 1997 in the English National Health Service that targeted final users and the local population in decision-making processes.Findings – The evidence shows that policies emphasising the importance of context-specific contingencies can be more effectively implemented when room for interpretation and discretion in selecting the appropriate means for involvement is given. In this way, the overall aims/purposes of health policies can be locally reshaped by allowing the adoption of flexible strategies within the implementation process.Practical implications – A strong leadership at the top of public sector organisations and, in particular, from the board of directors is needed to steer and facilitate a consensus oriented outcome in organisational decision-making processes that aim to incorporate the views and opinions of patients and the public.Social implications – Local initiatives in increasing participation, for specific purposes, are bound to be more successful than a general initiative, expecting comparatively uniform implementation.