There is a large literature advocating the importance of a greater proportion of women directors on boards of publicly listed firms. The purpose of this paper is to…
There is a large literature advocating the importance of a greater proportion of women directors on boards of publicly listed firms. The purpose of this paper is to examine the numbers and proportions of women directors, including women executive directors, on listed Australian Real Estate Management and Development (REMD) companies to identify how prevalent women directors are on such boards.
The study examines the numbers and proportions of women directors for 35 REMDs in 2011 and compares this to the broad board composition data on 1,715 Australian Stock Exchange listed entities. Statistically significant findings are evident due to the identified low proportions.
The study finds that of all the Financials Sub Industry sector groups, REMDs have the lowest proportion of female directors on theirs boards – eight women on each of 35 company boards compared to 159 men on these 35 boards at 2011. Of the eight, there were only two women executive directors on boards compared to 50 men. Statistically, it appears that having women directors on REMD boards is not considered important. Even at December 2014, there are only ten women on seven company boards and only one remaining executive director of an REMD company.
Given that female board representation is positively related to accounting returns and that there is a growing voice for legislation to impose mandatory proportions of women directors on boards around the world, it may be in the interests of REMD boards to consider appointing more women more quickly.
The study is the first to examine the numbers and proportions of women directors amongst REMD companies to identify the paucity of such women directors.
This paper critically reviews the role and function of the corporate board and finds that boards of directors that have a leadership role in corporate strategic planning go beyond merely caring for shareholder interests and take a proactive role in the success of the business. They do this by setting the strategic direction and evaluating company performance.Findings
However, the cultural and organisational conditions for the development of leadership boards are not well understood. The roles of executive and non‐executive directors need to be clearly defined in order that such boards can be effective and assert control over strategy and performance. Executive directors can only be effective when they clearly differentiate their role of providing direction from their daily role of working with managers in the company.Research limitations/implications
Recent research has begun to push back the ignorance surrounding the development of leadership boards. This is examined in order to define the barriers standing in the way of more empowered directors. It is then used to identify the actions and approaches that can be used by directors to develop their involvement in and influence over, corporate strategic planning.Originality/valueThe paper contains a critical discussion of boards that places the issue in their contemporary policy context. This leads to the conclusion that the organisation of partnership between board and management is important and that business success increasingly rests on openness and trust supported by creative and challenging dialogue. Practical suggestions for the revision of company law are provided.
Highlights the historical set‐up of Canadian boards of directors, whyand how women were first appointed to corporate boards. Examines factorsrelated to women serving on…
Highlights the historical set‐up of Canadian boards of directors, why and how women were first appointed to corporate boards. Examines factors related to women serving on corporate boards, detailing advantages and barriers to the appointments. Reports on a survey of Canadian Chief Executive Officers (CEOs) which considers factors related to the appointment of women to corporate boards. Results indicated the CEOs′ opinions on, for example, how important a variety of qualifications is to the appointment of female directors; the women with difficulties in finding women with these qualifications; preferred candidate profiles; issues which would benefit from a female perspective; effects of women on boards and companies; and the question of why there are not more women directors. Finally, with the survey as a background, looks at why there are so few women on the boards of directors of Canadian private sector organizations; and the future prospects of women as board members.
This research examines the differences in presentation of boards of directors in annual reports. Our sample consists of 472 corporations from the Fortune 500; 130 (342) of…
This research examines the differences in presentation of boards of directors in annual reports. Our sample consists of 472 corporations from the Fortune 500; 130 (342) of these corporations included (did not include) pictures of their boards of directors. The proportion of female directors was 11.0 percent for firms that did not include pictures of their boards and 14.5 percent for firms that included pictures of their boards in their annual reports. The difference in the gender mix of these two groups is significant (p = 0.0002). This indicates that firms with a higher percentage of women on their boards signal this fact to stockholders, investors, and other constituents by including pictures of their boards in their annual reports.
This article provides a brief overview of the literature on board of director performance, highlighting the difficulties in attempting to directly measure the performance…
This article provides a brief overview of the literature on board of director performance, highlighting the difficulties in attempting to directly measure the performance of boards of directors and how various studies have tackled this challenge. As an illustration, I show that two current measures of board of director performance, board meeting activity and director attendance, suggest that the boards of Asian firms do not compare favorably to the boards of firms from developed markets. Suggestions for future research on the performance of corporate boards are provided, as well as implications for board of director practices in Asia.
This paper aims to analyze the role of female directors on CSR disclosure. It assumes the existence of faultlines when studying gender diversity and classifies female…
This paper aims to analyze the role of female directors on CSR disclosure. It assumes the existence of faultlines when studying gender diversity and classifies female directors into three categories: industry experts, advisors and community leaders. It also examines the influence of the power of female directors as a moderator on the association between female director categories and CSR disclosure.
The paper bases on a dynamic generalized method of moments panel estimator which allows controlling for the unobservable heterogeneity and endogeneity and reduces the estimation bias.
Results confirm the double-sided nature of gender diversity, noting different behavior among female directors according to their experience and backgrounds. Moreover, the dominating owner position of female directors can balance and moderate the effect of female directors appointed for their technical knowledge or political and social ties. The results also confirm the necessity to not consider all women directors as a homogeneous group and explore the influence and interrelations of female faultlines on CSR disclosure.
The paper highlights the need to consider the specific skills, expertise, and connections of female board members when analyzing the effect of board composition, and supports the view that firms should emphasize the unique human and social capital of directors to understand how boards impact on firm strategies. Specifically, the authors support the recommendations of the European Commission (2011) regarding the need to increase skills and expertise when selecting new non-executive female board members.
At a time when most governments are introducing active policies that require firms to nominate women to boards, the understanding of the consequences of women’s presence on boards and the interrelations between female power and the diverse categories of female directors is timely and important.
To the best of the authors’ knowledge, this is the first paper that provides empirical evidence to the scarcely studied area of the human and social capital of female directors’ roles in CSR disclosure, providing an alternative view of the role of women in corporate board effectiveness.
This study looks at board governance in Ontario hospitals.
This study looks at board governance in Ontario hospitals.
We conducted a research of the hospitals’ websites and a survey of board directors to study the board structure and examine governance practice in Ontario hospitals.
The findings suggest that the board structure and process in Ontario hospitals are in compliance with Accreditation Canada’s Governance Standards, and such administrative controls are appropriate. Ontario hospital boards, in general, have fulfilled their key functions of governance in terms of working as an effective board; developing a clear direction; supporting the organization to achieve its mandate; maintaining positive relationships with external stakeholders; and being accountable and achieving sustainable results. Building knowledge through information is an area where improvement is needed.
Ontario hospitals have implemented appropriate administrative controls in terms of board composition and committee structure. The results of a survey of 99 board directors from over 25 hospitals suggest that directors, in general, have a good understanding of their governance role and relationship with senior management as well as the government. The findings are also supportive of good governance practice where executives manage and nonexecutive directors monitor the performance of the executives. According to the respondents, Ontario’s hospital boards are actively involved in setting the mission, strategic goals and objectives of their organizations, and they take appropriate steps to ensure that risk management, client safety, and quality improvements are incorporated in their governance and strategic planning process. In order to discharge their fiduciary duty effectively, respondents would like to have more information from different sources. This is an area where management accounting professionals can become involved such that relevant information from a variety of sources, especially external sources, are provided to board directors for decision making.
Ontario’s hospital sector has undertaken initiatives through research and publications to promote good governance practice. Such leadership is critical to ensure that directors have the competence and skills to discharge their duties and responsibilities diligently. Hospital boards should focus on renewal while ensuring that board directors are equipped for the challenging task of governing through professional development and continuing education.
Limitations and future research
Limitations related to the use of questionnaire applies to this research study. Self-selection bias and low response rate limit the generalizability of the findings. Future research can examine the behavior of directors in the boardroom and the impact of governance variables on hospital performance, such as quality of care and patient safety.
In this paper we develop a model for researching the influence that a board of directors can have on improving an organization’s sustainability performance. Our model…
In this paper we develop a model for researching the influence that a board of directors can have on improving an organization’s sustainability performance. Our model explores sources of cognitive flexibility of boards needed to recognize and respond to the need for improved sustainability performance. We first define concepts of sustainability, sustainability competence, and sustainability performance. We then analyze two forms of board capital (a board’s human capital and its social capital) and three aspects of a board’s information processing (its patterns of information search, discussion and debate, and information absorption) that we suggest affect a board’s cognitive flexibility and thereby influence whether a board decides to adopt sustainability performance goals. Our model also suggests that an organization’s strategic flexibility – as represented by its current endowments of resource flexibilities and coordination flexibilities – will moderate the relationship between a board’s decision to adopt sustainability performance goals and an organization’s subsequent achievement of those goals. We also suggest that our model is generally relevant to any research seeking to predict the influence of boards on strategic change in many forms, not just to research focused on sustainability issues.
Companies, politicians, the mass media, legislators, scholars and society in general have shown a growing interest in how board gender diversity affects a firm’s…
Companies, politicians, the mass media, legislators, scholars and society in general have shown a growing interest in how board gender diversity affects a firm’s decisions. This concept has been developed because some nations have introduced voluntary policies to regulate and increase the proportion of female directors on corporate boards. Thus, the purpose of this paper is to review previous research based on board gender diversity as a corporate governance mechanism and its effect on some firms’ business decisions: financial reporting quality (FRQ), firm performance and corporate social responsibility (CSR) reporting.
The authors focus on the agency and stakeholder theory to examine the link between female directors on boards and FRQ, CSR disclosure and firm performance.
This review provides researchers a structure that can identify the benefits and disadvantages of including female directors on boards regarding three particular corporate outcomes (FRQ, firm performance and CSR reporting).
This study provides a review of past literature on firm performance, CSR disclosure and FRQ from 1975 to 2017, and it contributes to past research by giving a broad overview of the main results of the association between female board directors and corporate decisions. The findings have implications for governments, academics and company managers.
Las empresas, los políticos, los medios de comunicación, los legisladores, los investigadores y la sociedad, en general, han incrementado su interés en cómo la diversidad de género de los Consejos de Administración impacta en las decisiones empresariales. El concepto de diversidad de género en los Consejos ha sido desarrollado porque algunos países han implementado políticas voluntarias para regular e incrementar la proporción de mujeres consejeras en los Consejos de Administración de las empresas. Por tanto, el objetivo de este trabajo es revisar la literatura previa que se ha centrado en analizar la diversidad de género del Consejo de Administración como mecanismo de buen gobierno corporativo y su efecto en algunas decisiones empresariales: calidad de la información financiera, desempeño empresarial y divulgación de información sobre la responsabilidad social corporativa.
Para examinar la relación entre la presencia de mujeres consejeras en los Consejos de Administración y la calidad de la información financiera, la divulgación de información sobre la responsabilidad social empresarial y el desempeño empresarial nos hemos basado en la teoría de la agencia y la de los stakeholders.
Esta revisión de la literatura previa proporciona a los investigadores una sólida estructura para que puedan identificar las ventajas y desventajas de incorporar mujeres consejeras en los Consejos de Administración con respecto a tres decisiones empresariales en particular (calidad de la información financiera, desempeño empresarial y la divulgación de información sobre la responsabilidad social corporativa).
Este trabajo realiza una revisión de la literatura previa sobre el desempeño empresarial, sobre la revelación de información sobre la responsabilidad social empresarial y sobre la calidad de la información financiera desde 1975 hasta 2017, y contribuye a la literatura previa ofreciendo una amplia perspectiva de los principales resultados de la relación entre la presencia de mujeres en los Consejos de Administración y estas tres decisiones empresariales. Los resultados tienen implicaciones para los gobiernos, los académicos y los gerentes de las empresas.
- Corporate governance
- Gender diversity
- Firm performance
- Financial reporting quality
- Corporate social responsibility disclosure
- Gobierno corporativo
- Diversidad de género
- Consejos de Administración
- Desempeño empresarial
- Calidad de la información financiera
- Divulgación de información sobre responsabilidad social corporativa
The purpose of this paper is to question the profiles of female directors on top French company boards. It explores the legitimacy attributes of current female directors…
The purpose of this paper is to question the profiles of female directors on top French company boards. It explores the legitimacy attributes of current female directors to identify the profiles sought recently, as firms approach the need to make many new appointments to fulfill gender quotas for supervisory boards, given that the proportion of women on a corporate board must reach 40 percent by 2017, with an intermediate level of 20 percent by 2014.
The authors gathered numerical and qualitative biographical data on all SBF 120 (French stock exchange index) firms’ female directors from annual reports and web sites over seven years (from 2003 to 2009). The authors constructed an SPSS database to categorize the individuals into various orders of legitimacy.
Drawing on director bio-data, the authors extend previous work on four legitimacy assets (family ownership; academic excellence; strong ties to the State; and top career), by adding a fifth asset (representative director), and contribute a gender dimension to the literature on personal legitimacy. Owning-family ties and academic excellence are still particularly salient in explaining legitimacy of women directors. A new source of female directors since 2005 is the pool of foreign women, outside the elite Grandes Ecoles system.
The authors had data for directors of 115 companies out of the SBF 120 firms. The authors also lacked data for seven women out of 144 appointed during the period, despite efforts to track down data from public sources.
These legitimacy profiles present different challenges for management development as those responsible for appointing several women to their boards in a short space of time will find out.
The authors highlight that with the diminishing role of family members on large corporate boards, more women directors need to be found, developed and mentored. If this approach is followed, new female directors with solid achievements can be appointed, without having their legitimacy as directors challenged by resistant males. Women will thus be able to take their legitimate place in French boardrooms and contribute their diverse experiences and knowledge.
This paper questions the legitimacy assets of female directors, which can be clustered into three groups: combined elite education and top corporate career; owning-family membership; and representative directors. These legitimacy profiles present different challenges for management development as those responsible for appointing several women to their boards in a short space of time will find out.