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1 – 10 of over 2000Agnieszka 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).
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.
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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…
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.
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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.
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.
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Tessa Coffeng, Elianne F. Van Steenbergen, Femke De Vries and Naomi Ellemers
Reaching decisions in a deliberative manner is of utmost importance for boards, as their decision-making impacts entire organisations. The current study aims to investigate (1…
Abstract
Purpose
Reaching decisions in a deliberative manner is of utmost importance for boards, as their decision-making impacts entire organisations. The current study aims to investigate (1) the quality of group decisions made by board members, (2) their confidence in, satisfaction with, and reflection on the decision-making, and (3) the effect of two discussion procedures on objective decision quality and subjective evaluations of the decision-making.
Design/methodology/approach
Board members of various Dutch non-profit organisations (N = 141) participated in a group decision-making task and a brief questionnaire. According to the hidden-profile paradigm, information was asymmetrically distributed among group members and should have been pooled to reach the objectively best decision. Half of the groups received one of two discussion procedures (i.e. advocacy decision or decisional balance sheet), while the other half received none.
Findings
Only a fifth of the groups successfully chose the best decision alternative. The initial majority preference strongly influenced the decision, which indicates that discussion was irrelevant to the outcome. Nevertheless, board members were satisfied with their decision-making. Using a discussion procedure enhanced participants' perception that they adequately weighed the pros and cons, but did not improve objective decision quality or other aspects of the subjective evaluation. These findings suggest that board members are unaware of their biased decision-making, which might hinder improvement.
Originality/value
Rather than using student samples, this study was the first to have board members participating in a hidden-profile task.
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Tatiana Mazza, Katia Furlotti, Alice Medioli and Veronica Tibiletti
This study aims to test whether the introduction of a gender quota impacts functioning of boards of directors and internal committees thanks to female capacity in effort norms…
Abstract
Purpose
This study aims to test whether the introduction of a gender quota impacts functioning of boards of directors and internal committees thanks to female capacity in effort norms, cognitive conflicts and use of skills.
Design/methodology/approach
This paper uses a difference-in-differences method to trace the staggered mandatory adoption of gender quotas on boards on Italian listed firms, representing the regulative institution pillar of institutional theory.
Findings
This paper find that mandatory adopter firms have more frequent internal committee meetings and less frequent board of directors’ meetings after the introduction of the law. This confirms that the regulation re-prioritizes work in internal committees, thanks to women effort, capacity to resolution and use of skills.
Originality/value
This research provides empirical evidence on female contribution and on the impact that a specific mandatory regulation, as regulative institutional pillar, can have on board organization, showing how gender characteristics influence board functioning in terms of meetings.
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Mandlakazi Ndlela and Maureen Tanner
Literature reveals ongoing debates around the role of business analysts in agile software development (ASD) teams. This can be attributed, in part, to a knowledge gap concerning…
Abstract
Purpose
Literature reveals ongoing debates around the role of business analysts in agile software development (ASD) teams. This can be attributed, in part, to a knowledge gap concerning how business analysts contribute to overall team capabilities, particularly those which are essential in enabling teams to respond to fast-paced environmental changes. The purpose of this study was to address this gap by investigating how business analysts (BAs) contribute to the dynamic capabilities of ASD teams.
Design/methodology/approach
Through a deductive approach, this study adapted and applied a research model based on the team dynamic capabilities (DC) theory to explore the contributions of BAs in agile teams. The study was executed using a qualitative, single case study research strategy directed at an ASD team in the financial services industry. Moreover, data were collected through face-to-face, semi-structured interviews; a focus group; non-participant observation and physical artefacts review. The thematic analysis technique was used to analyse the data.
Findings
The study contributes to teams DC theory through four theoretical propositions centred on the role of BAs. The proposition highlights how BAs relationship management, tacit knowledge sharing, task mental models and transactive memory are key contributors of ASD teams' DC. The study also found that BAs contribute to ASD teams' ability to embrace agile principles 2, 4, 6 and 12. This study can inform the design of capacity development programmes for individual team members and BAs and thus help managers curate teams that will best promote DC.
Practical implications
This study can inform the design of capacity development programmes for individual team members and BAs and thus help managers curate teams that will best promote DC.
Originality/value
This study builds on the relatively few studies which focus on DC within software development (SD) teams and ASD project teams. Moreover, the study explores how an individual (i.e. a BA) can contribute to the DC of a team.
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Ferdy Putra and Doddy Setiawan
This paper aims to synthesize the diverse literature on nomination and remuneration committees and provide avenues for future research.
Abstract
Purpose
This paper aims to synthesize the diverse literature on nomination and remuneration committees and provide avenues for future research.
Design/methodology/approach
This study provides a comprehensive literature review of theoretical and empirical studies published in reputable international journals indexed by Scopus.
Findings
The literature review reveals several aspects of the nomination and remuneration committee. These aspects have been classified into the definition of the nomination and remuneration committee, dimensions of the nomination and remuneration committee, measurement and research review results, reasons for conflict empirical findings, company dynamics and research on moderators, as well as recommending future research.
Research limitations/implications
Our literature review shows that nomination and remuneration committees play a role in improving board performance and company performance, reducing agency conflicts and improving corporate governance to provide implications for companies, regulators and investors and pave the way for future research.
Originality/value
This paper identifies issues related to nomination and remuneration committees, their theoretical and practical implications and avenues for future research.
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Karen Handley and Courtney Molloy
This paper takes a structured literature review (SLR) approach to identify gaps in the literature and suggest future research opportunities. It focuses on corporate governance…
Abstract
Purpose
This paper takes a structured literature review (SLR) approach to identify gaps in the literature and suggest future research opportunities. It focuses on corporate governance (CG) performed outside the formal board of directors’ structure and examines research of alternative CG of small and medium-sized entities (SMEs).
Design/methodology/approach
The authors use the SLR method to search the Scopus database, extracting and synthesising findings relating specifically to SMEs’ CG. These are tabulated and described using bibliometric software.
Findings
The authors highlight an absence of tailored theoretical approaches to understanding CG in SMEs, which differs from the governance of larger entities. They also find evidence of alternative governance structures in SME CG.
Research limitations/implications
Further research should embrace management and other theoretical perspectives and expanded methodologies, nuances in understanding offered in contextualised settings and awareness of practical implications to better understand the specific setting of CG in SMEs.
Practical implications
SMEs seek to access the scarce resources and skills external to their formal CG structures. Regulators and resource providers should mobilise facilitation and training for this expansion.
Originality/value
The authors synthesise a large body of literature to extract findings specific to SMEs. A unique contribution is our focus on alternative forms of CG in SMEs. Evidence of alternative boards points to resolutions for human capital shortages in SMEs.
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Azam Eshagniya and Mahdi Salehi
This paper aims to examine the effect of financial restatement on changing the auditor in the following years.
Abstract
Purpose
This paper aims to examine the effect of financial restatement on changing the auditor in the following years.
Design/methodology/approach
The study uses data of 105 companies (735 company-years) listed on the Tehran Stock Exchange collected during the period 2008-2014. Logistic regression is used to test the hypotheses.
Findings
The results of hypotheses present that restatement does not cause auditor changes and that as the severity of a restatement increases, the auditor change in the following year of restatement also does not increase. Restating companies having strong governance do not go for auditor changes as compared with other companies. In addition, in companies that are restating, non-big auditor changes are not more likely than a big auditor. Also, in companies restating simultaneous with a CEO turnover, there is no possibility of auditor change. Furthermore, multinomial logistic regression showed that the adjustments resulting from the correction of errors and changes in procedures and the amount of adjustments do not cause auditor change in the following year. So, the results have shown that the restatement is not an important factor in changing auditor the next year.
Originality/value
The current study analyses the impact of financial restatement on auditor changes in a deep manner in a developing country like Iran.
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Fabrizia Sarto and Sara Saggese
The study empirically investigates whether the board of directors' expertise in the focal firm's industry has implications for innovation input. Additionally, it explores how this…
Abstract
Purpose
The study empirically investigates whether the board of directors' expertise in the focal firm's industry has implications for innovation input. Additionally, it explores how this relationship is shaped by the CEO's educational level and background in the technology area.
Design/methodology/approach
The article tests the hypothesized relationships through the Arellano–Bond generalized method of moment estimators, proxying innovation input by R&D to total sales. Moreover, it analyses a sample of privately-held Italian medium and large high-tech companies observed over four years by relying on a unique hand-collected dataset.
Findings
The research documents an inverted U-shaped relationship between board industry expertise and innovation input and shows that such curvilinear effect is moderated by the CEO's educational level and technology background. Specifically, while the curvilinear slope is less steep for highly educated CEO, it becomes steeper in the presence of technology trained CEO.
Practical implications
The paper recommends how to shape the board human capital as a meaningful driver of board effectiveness and innovation. Additionally, it calls the managerial attention towards the interaction and the interplay between board industry expertise and CEO education as able to influence the above-mentioned outcome.
Originality/value
While previous studies have focused on the linear and positive effect of board industry expertise on innovation, this research advances current knowledge in innovation management literature by testing the presence of a curvilinear relationship. Moreover, by exploring the moderating effect of CEO education, the paper provides a comprehensive picture on the interplay among board industry expertise, CEO educational training and innovation input.
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