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Article
Publication date: 19 June 2017

Alpa Dhanani and Michael John Jones

Editorial boards of academic journals represent a key institutional mechanism in the governance and functioning of the academic community. Board members play an important role in…

1671

Abstract

Purpose

Editorial boards of academic journals represent a key institutional mechanism in the governance and functioning of the academic community. Board members play an important role in knowledge production and development of the discipline. The purpose of this paper is to enquire into the diversity characteristics of boards of accounting journals.

Design/methodology/approach

Drawing on a diversity framework that distinguishes between societal diversity and value of diversity, the paper examines two board characteristics: gender diversity and internationalisation. Moreover, it examines the influence of three journal and two editor characteristics on board diversity and analyses trends over time.

Findings

On gender, overall board trends are consistent with societal diversity and value of diversity: boards reflect the gender profile of senior academics. Further, female representation on boards is broadly consistent across the different journal nationalities; has improved over time; has experienced a convergence in “gender sensitive” sub-disciplines; and is influenced by female editorship. However, inequities appear to be present at the highest level: women appear to be less well represented than men as editors and women also have a lower representation on boards of higher ranked journals than on those of lower ranked journals. On internationalisation, once again, overall trends broadly reflect societal diversity and value at diversity. However, international scholars are less well represented on 4* boards than on 2* and 3* boards and on US boards than on Australian and UK boards. Further, there are signs of weakening US dominance in non-US journals.

Originality/value

Drawing on the diversity framework, this is the first study to comprehensively examine gender diversity and internationalisation of accounting boards.

Details

Accounting, Auditing & Accountability Journal, vol. 30 no. 5
Type: Research Article
ISSN: 0951-3574

Keywords

Article
Publication date: 20 January 2021

Ephraim Kwashie Thompson and Sylvester Adasi Manu

This paper aims to examine whether the characteristics of boards are more important in determining dividend policy than management characteristics. The authors show that as the…

1714

Abstract

Purpose

This paper aims to examine whether the characteristics of boards are more important in determining dividend policy than management characteristics. The authors show that as the final declarers of dividend policy is a firm’s board, the composition of a firm’s board significantly subsumes the effect of management characteristics that may also influence dividend policy.

Design/methodology/approach

Using the dividend declaration dummy variable, the authors run a fixed effect logistic regression of the dividend indicator on board characteristics, and managerial characteristics with firm level controls, year effects and industry effects while clustering standard errors at the firm level. For dividend yield variable which is censored at zero, they use a fixed effect Tobit regression.

Findings

The results of the study show that board characteristics such as average age, female presence and size have a strong positive significant effect, whereas board independent chair and voting right of directors have a negative significant effect on the likelihood of dividend declaration. For dividend yields, the results suggest that the presence of directors with financial expertise and the board size are the main influencers of dividend policy. Managerial characteristics are subsumed by director characteristics for determining dividend policy. The results overall support the evidence on the monitoring role of boards on management.

Originality/value

The originality and value of this study lies in the approach of including a comprehensive number of board characteristics unlike previous studies which makes the study of the influence of board composition on dividends more encompassing.

Details

Corporate Governance: The International Journal of Business in Society, vol. 21 no. 5
Type: Research Article
ISSN: 1472-0701

Keywords

Article
Publication date: 6 December 2022

Elmar Puntaier, Tingting Zhu and Paul Hughes

Diversity in boards has gained attention as a reflection of societal imbalances. The purpose of this paper is to investigate the impact of diversity in terms of both gender and…

Abstract

Purpose

Diversity in boards has gained attention as a reflection of societal imbalances. The purpose of this paper is to investigate the impact of diversity in terms of both gender and nationality in management boards of small and medium-sized enterprises (SMEs) on firm performance from an upper echelons perspective. The authors also examine how board-specific characteristics influence the structural makeup of boards in gender and nationality diversity terms.

Design/methodology/approach

The authors focus on the UK because of its individualistic society and flexible labour market and assess 309 SMEs in the manufacturing industry over 2009–2019. A 3-stage least squares (3SLS) estimator is used to analyse the data, the Shannon index to measure board diversity, return on assets as proxy for firm performance, and owner-manager presence, board member age and tenure are the board-specific characteristics of primary interest.

Findings

Both gender and nationality diversity contribute to firm performance and represent distinct upper echelon characteristics that change the cognitive and psychological dynamics of boards. Firms with larger boards do not perform better, but diverse boards reduce the narrowing view of CEOs. Yet the presence of owner-managers, despite their performance-enhancing contribution, holds firms back from benefitting from diversity as a strategic choice.

Originality/value

This study extends the upper echelons theory to include board diversity as an important aspect that should become more central in upper echelon thinking when understanding firm performance. The authors’ findings suggest that theoretical developments in search of understanding firm behaviour must proceed by accounting for diversity and not simply focusing on decision-making styles.

Details

International Journal of Entrepreneurial Behavior & Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1355-2554

Keywords

Article
Publication date: 9 March 2015

Patience Aseweh Abor

– The purpose of this study is to examine the effects of health-care governance and ownership structure on the performance of hospitals in Ghana.

1302

Abstract

Purpose

The purpose of this study is to examine the effects of health-care governance and ownership structure on the performance of hospitals in Ghana.

Design/methodology/approach

The study uses multiple regression models based on a sample of 132 hospitals in Ghana.

Findings

The results of the study indicate that hospitals with a governing board perform better than those without a governing board. The results of this study also suggest that board characteristics and ownership structure are important in explaining the performance of hospitals in Ghana. The results further indicate that mission-based and private hospitals with effective board governance structures exhibit better performance than public hospitals.

Originality/value

This study makes a number of new and meaningful contributions to the extant literature and the findings support managerialism, stakeholder and resource dependency theories. The findings also have important implications for the effective governance of hospitals.

Details

International Journal of Law and Management, vol. 57 no. 2
Type: Research Article
ISSN: 1754-243X

Keywords

Article
Publication date: 18 September 2009

Ruth W. Epps and Tariq H. Ismail

The purpose of this paper is to examine the relationship between corporate governance and earnings management in US context and provide further insights on the effects of board of…

3697

Abstract

Purpose

The purpose of this paper is to examine the relationship between corporate governance and earnings management in US context and provide further insights on the effects of board of directors' characteristics on earnings management.

Design/methodology/approach

The paper uses a sample of three groups of US firms; where firms with relatively high negative, firms with relatively high positive, and those with low levels of discretionary accruals in the year 2004 are examined. Descriptive statistics, univariate analysis, multivariate analysis, board of directors' characteristics, and possible relationships between corporate governance variables and earnings management proxy provide the basis for discussion.

Findings

Firms with annually elected boards, small size boards, 100 percent independent nominating committees, and 100 percent independent compensation committees have more negative discretionary accruals. However, firms with 75‐90 percent independent board or firms with a board size of between nine and 12 have higher positive discretionary accruals.

Research limitations/implications

Certain board characteristics may be the important factors associated with constraining the propensity of managers to engage in earnings management.

Practical implications

Results are limited by the accuracy of the models applied to isolate discretionary accruals. Additionally, the direction diverse of discretionary accruals may differ with selecting a time series of three or more years as a base for the analysis.

Originality/value

In contrast to prior literature, where board composition is defined as an insiders‐ or outsiders‐controlled board, this paper classifies board composition into seven discrete categories, using the same seven categories employed by Institutional Shareholder Services in evaluating and assigning corporate governance quotient scores to firms. The paper's major contributions to the existing literature are its findings that income‐increasing and income‐decreasing discretionary accruals have a different relationship with corporate governance practices and its expansion of the scope of corporate governance from board independence and audit committee independence to other corporate governance characteristics. This paper provides evidence that supports US regulators' initiatives that stronger corporate governance mechanisms provide greater monitoring of the financial accounting process and may be the important factors in improving the integrity of financial reporting.

Details

Journal of Accounting & Organizational Change, vol. 5 no. 3
Type: Research Article
ISSN: 1832-5912

Keywords

Article
Publication date: 11 July 2022

Jennifer A.N. Andoh, Benjamin A. Abugri and Ebenezer B. Anarfo

This study aims to compare the impact of board characteristics on the performance of listed non-financial firms to the impact of board characteristics on the performance of listed…

1496

Abstract

Purpose

This study aims to compare the impact of board characteristics on the performance of listed non-financial firms to the impact of board characteristics on the performance of listed financial firms (commercial banks) in Ghana.

Design/methodology/approach

The fixed and random effects models with generalized least square specifications are used in estimating regressions to correct for heteroscedasticity and serial correlation. Additionally, this study uses lagged models of the board variables to address the possibility of the presence of endogeneity and to generate robust estimates.

Findings

The empirical results show some similarities and differences on the impact of board characteristics on the performance of listed non-financial firms and banks. On similarities, for both non-financial firms and banks, board size is seen to have a significant non-linear impact on Tobin’s q. Also, the proportion of foreign board members shows a positively significant relationship with firm performance for both listed non-financial firms and banks. The effect of the proportion of board members with higher educational qualifications on firm performance appears to be negative and statistically significant for both sample of firms. On the other hand, the impact of board composition and board gender diversity on firm performance differs from listed banks and non-financial firms.

Research limitations/implications

The panel regressions for the listed banks were run on 63 observations because of the small sample size for the listed banks. Though enough for estimation purposes, inferences from results should be made with caution.

Originality/value

This paper, unlike most corporate governance – firm performance studies, focuses not only on listed non-financial firms but also on listed banks. From a multi-theoretical perspective, this paper provides a comparative analysis on the impact of board characteristics on financial performance of listed non-financial firms and banks.

Details

Corporate Governance: The International Journal of Business in Society, vol. 23 no. 1
Type: Research Article
ISSN: 1472-0701

Keywords

Open Access
Article
Publication date: 4 July 2023

Bahaa Awwad, Mohammad Anaewah, Bahaa Razia and Muhammed Salameh

This study investigates whether there are relationships between the characteristics of the boards of trustees of universities in the Arab region, higher education quality…

Abstract

Purpose

This study investigates whether there are relationships between the characteristics of the boards of trustees of universities in the Arab region, higher education quality assurance and the output of scientific research.

Design/methodology/approach

The descriptive analytical approach was used in this study. The study was conducted on the universities of the Arab region that are included in the classification of the British Institution for the Arab Region: QS Arab Region University.

Findings

The findings show that there is an effect of the characteristics of the trustees combined in the universities of the Arab region on ensuring the quality of higher education, other than the output of scientific research. The findings also indicate when measuring the characteristics individually that the trustee system is not effective in the Arab region and it is only formal for nominal purposes.

Research limitations/implications

Most universities in the Arab region do not disclose the data of boards of trustees, their roles, committees, rules of procedure and the nature of their work. A large number of universities also do not operate under the trustee system because the regulations and instructions do not allow this in the country.

Practical implications

This study seeks to improve practitioners knowledge, including boards of trustees, in ensuring the quality of higher education and the output of scientific research.

Originality/value

The research projected the governance model through the characteristics of the boards of directors of for-profit companies on the boards of trustees of universities in the Arab region. The study examines the nature of the characteristics of the boards of trustees that are compatible with its responsibilities, the most important of which is the supervision of the strategy to ensure the quality of higher education research.

Details

Journal of Business and Socio-economic Development, vol. 4 no. 1
Type: Research Article
ISSN: 2635-1374

Keywords

Article
Publication date: 2 March 2023

Abdullah Alajmi and Andrew C. Worthington

This study aims to examine the link between boards and audit committees and firm performance in Kuwaiti listed firms in the context of recent and extensive corporate governance…

Abstract

Purpose

This study aims to examine the link between boards and audit committees and firm performance in Kuwaiti listed firms in the context of recent and extensive corporate governance regulatory reform.

Design/methodology/approach

Panel data regression analysis with fixed effects and clustered standard errors of firm performance for 61–97 listed industrial and services firms in Kuwait over a seven-year period. The dependent variables are the returns on assets and equity, the debt-to-equity ratio and leverage and Tobin’s Q and the independent variables comprise board of directors and audit committee characteristics, including size, the number of meetings and the numbers of independent and outside board and expert committee members. Firm size, subsidiary status and cash flow serve as control variables.

Findings

Mixed results with respect to the characteristics of the board of directors. Board size and independent and outsider board members positively relate only to Tobin’s Q and insiders only to debt to equity. For audit committee characteristics, committee size, independence and expertise positively relate to the return on equity and committee size and expertise only to Tobin’s Q. Of the five performance measures considered, board and audit committee characteristics together best determine Tobin’s Q.

Research limitations/implications

Data from a single country limits generalisability and control variables necessarily limited in a developing market context. Need for qualitative insights into corporate governance reform as a complement to conventional quantitative analysis. In combining accounting and market information, Tobin’s Q appears best able to recognise the performance benefits of good corporate governance in terms of internal organisational change.

Practical implications

The recent corporate governance code and guidelines reforms exert a mixed impact on firm performance, with audit committees, not boards, of most influence. But recent reforms implied most change to boards of directors. One suggestion is that non-market reform may have been unneeded given existing market pressure on listed firms and firms anticipating regulatory change.

Social implications

Kuwait’s corporate governance reforms codified corporate governance practices already in place among many of its firms in pursuit of organisational legitimacy, and while invoking substantial change to audit committees, involved minor change to firm performance, at least in the short term. Some firms may also have delisted in expectation of stronger corporate governance requirements. Regardless, these direct and indirect processes both improved the overall quality of listed firm corporate governance and performance in Kuwait.

Originality/value

Seminal analysis of corporate governance reforms in Kuwait, which have rapidly progressed from no corporate governance code and guidelines to an initially voluntary and then compulsory regime. Only known analysis to incorporate both board of directors and audit committee characteristics. Reveals studies of the corporate governance–firm performance relationship may face difficulty in model specification, and empirical significance, given the complexity of corporate governance codes and guidelines, leads in changing firm behaviour and self-selection of firms into and out of regulated markets.

Details

Journal of Financial Reporting and Accounting, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1985-2517

Keywords

Book part
Publication date: 18 April 2016

Laura Berardi, Michele A. Rea and Giulia Bellante

The literature considers three main models of nonprofit sector structure and development: liberal, welfare partnership, and social democratic. This study analyzes the cases of…

Abstract

Purpose

The literature considers three main models of nonprofit sector structure and development: liberal, welfare partnership, and social democratic. This study analyzes the cases of Italian and Canadian nonprofit organizations (NPOs) that operate in two third-sector contexts, widely known as “hybrids.” In particular, we aim to verify whether some features of governance, leadership, and volunteer participation have impacts on the financial performances of selected Italian and Canadian NPOs.

Methodology/approach

Differences between the two studied nonprofit contexts influenced the sampling, the data collection, and the methods of analysis. Data on Italian and Canadian NPOs are analyzed both together and separately, using multiple regression models. Revenues, fund-raising and other grants from the general public, and program expenses are used as measurements of financial performance.

Findings

Our analysis demonstrates that some board characteristics, as well as volunteer participation and representation on the board, have impacts on the nonprofit financial performance. The characteristics of the CEO studied in this work are not significantly associated with the level of financial performance.

Research implications/limitations

This study has several important implications for research on board characteristics, CEO characteristics and volunteer management and governance, as well as implications for practitioners. The limitations of this study are related mostly to the different methods used for sampling NPOs and collecting data in the two different country contexts due to the different level of availability of data.

Originality/value

The past literature has not adequately examined the relationships among the board and CEO characteristics, the role of volunteers in governance and financial performance.

Details

Governance and Performance in Public and Non-Profit Organizations
Type: Book
ISBN: 978-1-78635-107-4

Keywords

Article
Publication date: 30 September 2013

Roshima Said, Noorain Omar and Wan Nailah Abdullah

The objectives of this paper are to examine the level of environmental disclosure in annual reports made by Malaysian public listed companies for the year ended 2009, and to…

1593

Abstract

Purpose

The objectives of this paper are to examine the level of environmental disclosure in annual reports made by Malaysian public listed companies for the year ended 2009, and to investigate whether there are any relationships between board characteristics (board size and board independence), firm characteristics (business type) and human capital characteristics (age, knowledge background and proportion of female directors) and environmental disclosure in Malaysian public listed companies' annual reports for the year ended 2009.

Design/methodology/approach

The study constructs the environmental disclosure index with 11 disclosure themes based on research by Sharifah et al. to determine the environmental disclosure level. The study uses content analysis to find the environmental disclosure items and constructs an environmental disclosure index from the companies' annual reports. Hierarchical regression analysis is used to examine the relationships between the environmental disclosure index and board characteristics (board size and board independence), firm characteristics (business type) and human capital characteristics (age, knowledge background and proportion of female directors).

Findings

The results of the study reveal that there is a significant relationship between the existence of an independent non-executive chairman, the chairperson's age, the existence of a CEO with a law background and the industry type with the extent of environmental disclosure. The industry type is found to be the most significant variable that influences the level of environmental disclosure in Malaysian public listed companies for the year ended 2009.

Research limitations/implications

The findings are limited to Malaysian public listed companies for the year January to December 2009. The source of the data used in this study is companies' annual reports only. This study has several implications that may apply in many countries, irrespective of whether they are developing or developed countries. First, it provides strong evidence to show that boards of directors and human capital are significant variables in the extent of disclosure. Second, it is useful to managers, especially to boards of directors in Malaysia, in identifying board characteristics and human capital characteristics that could improve companies' environmental activities; these could be disclosed in the interest of stakeholders and the public's environmental concern. Third, this study can also be used as an initial step for companies in to be involved in environmental activities. Prior studies have proved that these activities could enhance companies' image and reputation and could offer financial benefits to the business.

Originality/value

The study extends the previous studies by the inclusion of human capital characteristics as a factor that influences environmental reporting in Malaysia. This study has demonstrated that to mitigate the agency problems between firms and shareholders, society and stakeholders, and particularly environmental impact, the inclusion of human capital characteristics as an indicator may help to reduce expected costs and negative impacts on firm value, and may also demonstrate to society and the company's stakeholders that individual firms are doing their part to help solve society's social and environmental problems through additional disclosures.

Details

Social Responsibility Journal, vol. 9 no. 4
Type: Research Article
ISSN: 1747-1117

Keywords

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