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Open Access
Article
Publication date: 11 May 2022

Agnieszka Slomka-Golebiowska, Sara De Masi and Andrea Paci

This study aims to examine the effects of board dynamics produced by reaching a certain proportion of women on board tasks (monitoring, strategy and advisory).

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Abstract

Purpose

This study aims to examine the effects of board dynamics produced by reaching a certain proportion of women on board tasks (monitoring, strategy and advisory).

Design/methodology/approach

Using a panel of 35 listed companies belonging to FTSE-MIB index, for the years 2008–2015, the hypotheses can be tested by applying random effect regressions. The introduction of gender board quota law in Italy has created a quasi-natural experiment that is applied in the study.

Findings

This research provides evidence that reaching 33% women on boards, which is the threshold mandated by the Italian gender board quota law, makes a difference for strategy tasks but not for monitoring tasks. This proportion of women on boards creates the board dynamics necessary to empower all board members, allowing the varied knowledge, skills, backgrounds and personal qualities to be leveraged and used in strategy tasks. For monitoring tasks, obtaining a proportion of 20% women on boards, as a first threshold enforced by the law, is enough to voice their opinion during board meetings and challenge management.

Originality/value

The results show that each set of board tasks requires different dynamics trigged by a specific proportion between a minority (women) and a dominant subgroup (men). To enhance monitoring tasks performance, it is enough to reach a proportion between men and women which makes the women less isolated and more inclined to speak up during the board meetings. In the case of strategy tasks, the improved performance is achieved when the dominant group enticed to hear women’s opinions and responsive to various perspectives. This paper expands the debates going beyond monitoring tasks, showing the importance of board dynamics for engagement in strategy and advisory tasks.

Details

Management Research Review, vol. 46 no. 3
Type: Research Article
ISSN: 2040-8269

Keywords

Article
Publication date: 24 October 2023

Ding Ning, Kalimullah Bhat, Ghulam Nabi and Ren Yinong

This study aims to examine the impact of boardroom diversity on the financial stability of Chinese financial listed firms. Boardroom diversity is quantified in the following…

Abstract

Purpose

This study aims to examine the impact of boardroom diversity on the financial stability of Chinese financial listed firms. Boardroom diversity is quantified in the following aspects: relation-oriented diversity and task-oriented diversity.

Design/methodology/approach

Panel data on Chinese financial listed firms between 1998 and 2017 are used in this study. Panel regression is used to analyze the firm data for fixed effects and robust standard errors.

Findings

Task-oriented diversity of the board increases financial stability. Regarding the impact of boardroom diversity on firm risk, the results reveal that task-oriented diversity of the board reduces firm risk, which supports the predictions of this research. Regarding the moderating effect of state ownership on the relationship between boardroom diversity (task- and relation-oriented diversity) and financial stability, the results show that state ownership enhances the positive impact of the board’s task-oriented diversity on financial stability.

Practical implications

Task-oriented diversity of the board enhances the financial stability of Chinese financial listed firms. As existing studies on bank boards in China are limited, the findings of this research can be used when crafting policy initiatives to enhance financial stability.

Originality/value

To the best of the authors’ knowledge, this study is the first to examine the effect of boardroom diversity, particularly task- and relation-oriented diversity, on financial stability. It provides empirical support that boardroom diversity positively affects the financial stability of Chinese financial listed firms. This research also offers empirical evidence that state ownership enhances the positive impact of the board’s task-oriented diversity on financial stability.

Details

Pacific Accounting Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0114-0582

Keywords

Article
Publication date: 22 June 2017

Lotfi Karoui, Wafa Khlif and Coral Ingley

The purpose of this paper is to model SME board configurations and then to examine empirically their diversity. Polarity in corporate board research around two primary tasks

Abstract

Purpose

The purpose of this paper is to model SME board configurations and then to examine empirically their diversity. Polarity in corporate board research around two primary tasks (control and service/strategy), neither captures comprehensively the range of SME board types, based on what they actually do, nor elucidates how boards configure and why. SME heterogeneity is problematic for understanding how the triumvirate of power and control – owners, directors and executives – governs in such firms.

Design/methodology/approach

Survey research is used to examine 186 French private SMEs. Factorial and cluster analyses are used to classify board configurations according to board task performance.

Findings

Results reveal six different board types among small firms. The findings indicate that both organisational and board design need to be adjusted to align with the differentiation between the ownership and the management, and between the ownership and the directorship. The greater the differentiation between these power/control functions in response to increased internal and/or external contingencies, the more varied will be the board’s portfolio of tasks, with implications for the director capabilities and board competence.

Research limitations/implications

The research extends SME board governance theory and practice by bringing greater clarity to the field of board task performance in SMEs. It provides insights into explicit board task-related configurational behaviour through recognising the degree of differentiation between the triumvirate power/control functions at the apex of the small firm. SME boards in the sample show not just a single configuration but a combination from a portfolio of tasks with different emphases on each according to their circumstances. This finding implies that a particular type of board may select a task, or set of tasks, from the portfolio, depending on the nature of the SME in terms of its proximity – whether it is characterised more by specificity or by denaturation. Further research is needed to understand the variation in these configurations over time in response to internal and external contingencies and what board emphases and processes are involved in transitioning through these evolutions.

Practical implications

The findings are important because the extent of knowledge about what the configuration comprises will determine how effectively a board will execute its tasks. This knowledge is useful in helping boards place emphasis on how best to concentrate their efforts on creating value for the SME, by selecting an effective combination of tasks from a given board configuration depending on their circumstances.

Originality/value

The research extends SME board governance theory and practice by bringing greater clarity to the field of board task performance in SMEs. It provides insights into explicit board task-related configurational behaviour through recognising the degree of differentiation between the triumvirate power/control functions at the apex of the small firm.

Details

Journal of Small Business and Enterprise Development, vol. 24 no. 3
Type: Research Article
ISSN: 1462-6004

Keywords

Article
Publication date: 15 October 2020

Yngve Antonsen and Geir Bye

This study aims to analyse the line managers and employees’ use of lean task boards over time in Norwegian municipalities using action learning theory. The research question was…

Abstract

Purpose

This study aims to analyse the line managers and employees’ use of lean task boards over time in Norwegian municipalities using action learning theory. The research question was the following: what kind of action learning processes do the line managers and employees’ use of the lean task board promote in municipalities’ healthcare units?

Design/methodology/approach

This qualitative case study data from a Norwegian municipality involved analyses of 750 internal self-recorded logs from task board sessions from 6 different units and 25 semi-structured interviews of managers and employees.

Findings

The task board works for line managers to make employees responsible for forwarding ideas, solutions and implementation of new actions. The use of the task boards contributes to systemising work through establishing new routines and improving orderliness at work. The line managers used the task boards as a project management system to track progress in the purchasing of diverse equipment and initiatives to improve professionalism and their units’ facilities. The study explains the learning challenges for managers using the lean task board, as the method promotes finding experience-based solutions that do not involve critical reflection and use of theory.

Practical implications

The lean task board is well-suited for managers to promote learning processes that counteract chaos in local healthcare organisations. However, the task board has limitations as a method for improving services amongst healthcare units and for solving difficult problems.

Originality/value

The study contributes to understanding how action learning theory can be applied to the analysis of the results of lean task board sessions

Details

Leadership in Health Services, vol. 33 no. 4
Type: Research Article
ISSN: 1751-1879

Keywords

Article
Publication date: 31 January 2018

Robin Deman, Ann Jorissen and Eddy Laveren

Although the majority of research explores the direct relationship between family control and innovativeness, the purpose of this paper is to investigate mediators that explain…

Abstract

Purpose

Although the majority of research explores the direct relationship between family control and innovativeness, the purpose of this paper is to investigate mediators that explain how family control is related to innovativeness. Grounded in agency theory, resource dependence theory, and the resource-based view of the firm, the authors suggest that this relationship operates through board task performance, that is, the level of directors’ involvement in control and service tasks.

Design/methodology/approach

To test the hypotheses, structural equation modeling is applied to cross-sectional survey data collected from 329 private firms that are located in Belgium. Family control is defined as 50 percent family ownership in combination with at least one family member being involved in the management or board of directors of the firm.

Findings

Four key results emerge from the analysis. First, family control is negatively associated with control task performance but does not affect service task performance. Second, control and service task performance positively influence innovativeness. Third, the negative relationship between family control and innovativeness is partially mediated by control task performance. Fourth, the presence of a family CEO and the percentage of family directors address heterogeneity among family controlled firms (FCFs).

Originality/value

This paper complements and extends existing research on the relationship between family control and innovativeness by adopting a governance perspective. The authors contribute to a deeper understanding of why FCFs are more or less innovative than nonfamily controlled firms and reveal underlying mechanisms previously uncovered.

Details

Management Decision, vol. 56 no. 2
Type: Research Article
ISSN: 0025-1747

Keywords

Open Access
Article
Publication date: 3 June 2019

Klaas Heemskerk

Over the past decades, growing interest in the behaviour of boards of directors has brought forth empirical studies on actual board behaviour. An important stream within this…

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Abstract

Purpose

Over the past decades, growing interest in the behaviour of boards of directors has brought forth empirical studies on actual board behaviour. An important stream within this research followed the model proposed by Forbes and Milliken in 1999 in which the board processes, effort norms, cognitive conflict and the use of knowledge, are hypothesized to influence the performance of boards of directors. This paper aims to take stock of the results from this stream of research. The sometimes inconsistent results, and assumed methodological flaws of this research, leave open the question whether it makes sense to continue with this line of research.

Design/methodology/approach

Through a research synthesis of 17 primary studies on (parts of) the model proposed by Forbes and Milliken (1999), this question is addressed directly by clarifying what is known from the research done so far and by identifying possible distorting methodological moderators.

Findings

Strong empirical support is found for the effect of effort norms and the use of knowledge and skills on board task performance. The evidence for cognitive conflicts however was found to be inconclusive. Common method and respondent bias seem to be a lesser concern than often stated.

Research limitations/implications

Future studies should not only look closely at the construct validity of conflict, but should also have to account for the multidimensionality of conflicts and the interdependency and endogeneity in the relationship between behaviour and performance in boards.

Originality/value

This is the first paper that systematically integrates and reviews the empirical results of the research following the Forbes and Milliken model and sketches roads for future research on board behaviour.

Details

Corporate Governance: The International Journal of Business in Society, vol. 19 no. 3
Type: Research Article
ISSN: 1472-0701

Keywords

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

Open Access
Article
Publication date: 25 January 2021

Sara De Masi, Agnieszka Słomka-Gołębiowska and Andrea Paci

This paper examines the relationship between women on boards and board monitoring tasks depending on group categories identified in the Kanter's theory.

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Abstract

Purpose

This paper examines the relationship between women on boards and board monitoring tasks depending on group categories identified in the Kanter's theory.

Design/methodology/approach

Using a sample of the largest listed companies in Spain, Italy and France during the period 2007–2017, this study tests the effect of women's presence based on the following board categories: (1) skewed boards with a percentage of women that is less than 20%; (2) tilted boards with a percentage of women that ranges from 20% to 33%; (3) tilted boards with a percentage of women that is more than 33%; and (4) balanced boards with an equal or quasi-equal gender distribution. The authors use the case of the gender board quota regulation in different European Union countries.

Findings

The results suggest that tilted boards engage in stronger firm monitoring and that the effect of women on board monitoring tasks is positive and statistically significant when the percentage of female directors reaches the threshold of 33%.

Practical implications

The outcomes of this study help policymakers identify the minimum threshold that quota regulations should mandate in order for boards to be effective.

Originality/value

This paper moves forward the ongoing debate about the effect of women on corporate boards, shifting the focus from the ratio or presence of female directors to the size of the group they form within the board. To the best of authors’ knowledge, this is the first study to test Kanter's theory by investigating the relationship between women on boards and board monitoring.

Details

Management Decision, vol. 59 no. 13
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 23 July 2020

Irfan Ullah, Aurang Zeb, Muhammad Arif Khan and Wu Xiao

The purpose of this study is to investigate the relationship between board diversity measured as relation-oriented, task-oriented and board overall diversity and firm’s investment…

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Abstract

Purpose

The purpose of this study is to investigate the relationship between board diversity measured as relation-oriented, task-oriented and board overall diversity and firm’s investment efficiency.

Design/methodology/approach

This study estimates four dimensions of board diversity, including age, gender, tenure and education. The four dimensions are further categorized in relation-oriented diversity (i.e. age and gender), task-oriented diversity (i.e. tenure and education) and overall board diversity (relation and task oriented). Panel data analysis is used to examine the board diversity–investment efficiency relationship in Chinese listed firms during the years 2003–2018. The findings of the study are robust to a battery of econometric techniques.

Findings

This study finds relation-oriented, task-oriented and overall diversity of a board curb investment inefficiency by discouraging sub-optimal investment (over- or under-investment). In other words, board diversity improves firms’ investment efficiency.

Practical implications

The results suggest that board diversity plays a significant role in corporate decisions. The findings illustrate that board diversity disciplines the management, reduces agency conflicts and thereby improves corporate governance, resulting in higher investment efficiency.

Originality/value

This study has two important contributions. First, this study extends the prior literature of investment efficiency by considering socio-psychological dimension of the board diversity by constructing relation- and task-oriented diversity. Second, contrary to earlier studies on board diversity, this study takes four facets of board diversity, i.e. age, gender, education and tenure that improve corporate governance mechanism.

Details

Corporate Governance: The International Journal of Business in Society, vol. 20 no. 6
Type: Research Article
ISSN: 1472-0701

Keywords

Article
Publication date: 18 December 2019

Kalim Ullah Bhat, Yan Chen, Khalil Jebran and Zulfiqar Ali Memon

The purpose of this study shows how overall board diversity influences corporate risk-taking. Board diversity is quantified into task-oriented diversity (tenure and education) and…

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Abstract

Purpose

The purpose of this study shows how overall board diversity influences corporate risk-taking. Board diversity is quantified into task-oriented diversity (tenure and education) and relation-oriented diversity (age and gender). Further, this study tests whether the association of board diversity and corporate risk varies across state-owned firms (SOEs) and non-state-owned firms (NSOEs).

Design/methodology/approach

The authors used a sample of Chinese listed firms over the period 1999-2017. The results are estimated using the fixed-effects model. To deal with the endogeneity problem and single model bias, the authors use a dynamic model, i.e. two-step generalized method of moment’s model.

Findings

The results show that both task-oriented and relation-oriented diversity reduces corporate risk. Further, the authors document that overall board diversity reduces risk-taking across different types of firms, that is, SOEs and NSOEs. These results are consistent after controlling for endogeneity problems.

Practical implications

The results provide implications for enhancing corporate governance practices by considering overall board diversity as an important factor influencing corporate decisions. The findings suggest that policymakers and shareholders should consider different diversity attributes important for the composition of a board, which can enhance board outcomes.

Originality/value

Most of the prior studies considered only one dimension of diversity, and therefore, have overlooked the overall board diversity. Unlike prior studies, this study considers four board diversity attributes – age, gender, tenure and education, and further tests their association with corporate risk. Further, this study also examines the effect of overall diversity on corporate risk in SOEs and NSOEs.

Details

Corporate Governance: The International Journal of Business in Society, vol. 20 no. 2
Type: Research Article
ISSN: 1472-0701

Keywords

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