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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

Article
Publication date: 23 April 2024

Yu-Lin Chen and Mei-Chu Huang

Despite the well-recognized importance of recycled water, the study of industry-peer pressure on recycled water is relatively new. This study investigates how organizations…

Abstract

Purpose

Despite the well-recognized importance of recycled water, the study of industry-peer pressure on recycled water is relatively new. This study investigates how organizations experience and react to industry-peer pressure to set recycled water targets. Additionally, this study investigates the role of board chairs involved in sustainability committees in contributing to responses to industry-peer pressure.

Design/methodology/approach

Using Eviews 12, this study employed a pooled logistic regression model to analyze data from 1,346 firms on Taiwan and Taipei exchanges (2017–2020).

Findings

The findings revealed that frequency-based imitation drives recycled water target-setting diffusion. However, there is no direct relationship between outcome-based imitation and recycled water target-setting. Notably, outcome-based imitation drives the adoption of recycled water target-setting of firms with board-chair membership in sustainability committees.

Research limitations/implications

This study faces certain data limitations. First, this study primarily focuses on water recycling. Future research could explore other ways to reduce water usage, such as using water-efficient equipment. Second, this study gathered information solely on the presence or absence of a board chairperson on the sustainability committee. Future researchers could explore the impact of the composition of sustainability committee on recycled water target-setting. Lastly, the sample used in this study is restricted to Taiwan's corporations that existed during 2017–2020. Future researchers may consider adopting a longitudinal design in other economies to address this limitation.

Practical implications

The findings of this study offer several guidelines and implications for recycled water target-setting and the composition of sustainability committees. It responds to an urgent call for solutions to water shortages when pressure from governments and nongovernmental organizations is relatively absent. The number of industry peers that have already set recycled water targets is indispensable for motivating firms to set their own recycled water targets. In terms of insufficient water-related regulatory pressure and normative pressure, this study found evidence suggesting that the direct motivation for setting recycled water targets stems from mimetic pressures via frequency-based imitation. The evidence in this study suggests that policymakers should require companies to disclose their peers’ recycled water target information, as doing so serves as an alternative means to achieving SDG 6.3.

Social implications

Recycled water target-setting might be challenging. Water recycling practices may face strong resistance and require substantial additional resources (Zhang and Tang, 2019; Gao et al., 2019; Gu et al., 2023). Therefore, this study suggests that firms should ensure the mindfulness of board members in promoting the welfare of the natural environment when making recycled water target-setting decisions. To reap the second-mover advantage, firms must consider the conditions in which board members can more effectively play their role. Corporations may help their chairpersons in setting recycled water targets by recruiting them as members of sustainability committees. Meanwhile, chairpersons tend to activate accurate mental models when the water conservation performance of pioneering industry peers is strong enough to indicate the potential benefits of adopting recycled water target-setting. Investors’ and stakeholders’ understanding of how the composition of sustainability committees is related to recycled water target-setting may help to identify the potential drivers of firms’ water responsibility. Investors and stakeholders should distinguish firms in terms of the board chair’s membership of their sustainability committee and focus on water-use reduction outcomes in the industry. This study provides insights into circumstances whereby chairpersons help to restore the water ecosystem.

Originality/value

This study explains how frequency-based and outcome-based imitation are two prominent mechanisms underlying the industry-peer pressure concerning recycled water target-setting. Moreover, this study fills literature gaps related to the moderating roles of board-chair membership in sustainability committees concerning industry-peer pressure on recycled water target-setting.

Article
Publication date: 5 April 2024

Thanh Dung Nguyen, Thuong Harvison and Ali Ashraf

Employees play a vital role in the success of a corporation. While boards of directors are created to protect shareholders’ interests, it is unclear if these directors also ensure…

Abstract

Purpose

Employees play a vital role in the success of a corporation. While boards of directors are created to protect shareholders’ interests, it is unclear if these directors also ensure employee welfare. In this vein, our paper examines the relationship between board leadership structure and employee well-being.

Design/methodology/approach

The authors employ several analysis techniques, including univariate analysis, ordinary least squares (OLS) regressions, two-stage least squares (2SLS) regressions, propensity score matching methodology, the Heckman Selection model and difference-in-differences analysis. The sample comprises USA public firms for the period 1998–2018.

Findings

Our findings indicate that having an independent chairperson can significantly benefit the welfare of employees, especially for firms with overly powerful chief executive officers (CEOs) and during times of financial distress.

Originality/value

Independent leadership structure is one of the crucial board characteristics that have not been examined to explain employee welfare at firms. We find that an independent chairperson can mitigate the negative effect of overly powerful CEOs on employee benefits. Importantly, independent chairpersons are beneficial for employees in difficult times and when CEOs are busy with daily activities.

Details

International Journal of Managerial Finance, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1743-9132

Keywords

Article
Publication date: 2 November 2015

Tor Brunzell and Jarkko Peltomäki

The purpose of this study is to explicitly focus on the roles of ownership concentration, ownership by the board, the chief executive officer (CEO) and the chairperson in the

Abstract

Purpose

The purpose of this study is to explicitly focus on the roles of ownership concentration, ownership by the board, the chief executive officer (CEO) and the chairperson in the involvement and capabilities of chairpersons and other governors in their work.

Design/methodology/approach

In this study, the authors investigate the impact of the concentration of ownership, the ownership of the board, the CEO and the chairperson on the chairperson’s activity when the roles of the chairperson and the CEO are separated The empirical analysis of this study is based on a survey sent to Nordic listed firms.

Findings

The results show that the ownership characteristics of a company are important in determining the chairperson’s working hours, the chairperson’s communication with the CEO and the performance of governance activity. In addition, the authors found that while the ownership of the chairperson and the board of directors and ownership concentration improve governance activity, CEO ownership may undermine governance activity.

Research limitations/implications

The primary implication of the study is that both ownership by internal governors and ownership concentration play an important role in determining the involvement of internal corporate governors.

Originality/value

The study provides unique evidence that ownership by the chairperson, concentrated ownership and ownership by the board can potentially mitigate the costs of separating the roles of the chairperson and the CEO.

Details

Qualitative Research in Financial Markets, vol. 7 no. 4
Type: Research Article
ISSN: 1755-4179

Keywords

Article
Publication date: 3 July 2017

Satu Koskinen and Anna-Maija Lämsä

The purpose of this paper is to explore the trust development in the dyadic relationship of CEO and chair of the board.

Abstract

Purpose

The purpose of this paper is to explore the trust development in the dyadic relationship of CEO and chair of the board.

Design/methodology/approach

A narrative approach is adopted to examine the meanings that CEOs and chairpersons give to trust in their relationship, and to explore trust as an evolving phenomenon that can increase or decline over the course of the relationship. The data include 16 CEO-chair dyads from Finnish limited companies.

Findings

The results suggest that trust may exist on different levels and evolve in various ways during the course of the relationship. Integrity and agreement on company strategy are proposed to form the foundation for trust in the CEO-chair relationship, whereas ability and benevolence are necessary for trust to develop to a higher level.

Research limitations/implications

Studying trust development based on the data generated at one point of time and in only one country are the major limitations of the study.

Practical implications

It is proposed that the level of trust influences value creation in the relationship.

Originality/value

The study adds to the limited number of previous studies on the CEO-chair relationship and contributes to the literature on trust development by making visible the viewpoint of both partners, and the meaning of the different components of trust.

Details

Baltic Journal of Management, vol. 12 no. 3
Type: Research Article
ISSN: 1746-5265

Keywords

Article
Publication date: 7 November 2016

Satu Koskinen and Lämsä Anna-Maija

The purpose of this paper is to conceptualise how the chief executive officer (CEO) and chairperson of the board (Chair) construct their relationship through their leadership…

1033

Abstract

Purpose

The purpose of this paper is to conceptualise how the chief executive officer (CEO) and chairperson of the board (Chair) construct their relationship through their leadership practices, and to analyse the meaning of these practices to the relationship. An empirical investigation from both partners’ viewpoint is conducted.

Design/methodology/approach

The data were gathered through in-depth interviews with 16 CEOs and 16 chairpersons from the same companies. Content analysis was used to analyse the data.

Findings

Four types of leadership practices in the CEO-Chair relationship were conceptualised: emergent practices on company- and person-related issues, and scheduled practices on company- and person-related issues. For the effectiveness of the relationship, emergent practices on company-related issues seem to be most important.

Research limitations/implications

The basing of the analysis on interviewees’ descriptions rather than on the observation of leadership practices in action can be considered a limitation.

Practical implications

Knowledge of leadership practices in the CEO-Chair relationship and their meaning to the relationship can be utilised in leadership training.

Originality/value

This research contributes to the relational leadership literature by highlighting a specific leadership relationship, the CEO-Chair relationship, from both partners’ viewpoint. Additionally, the value of the study is that it shows that the CEO-Chair relationship is more multifaceted than traditionally assumed in prior literature.

Details

Leadership & Organization Development Journal, vol. 37 no. 8
Type: Research Article
ISSN: 0143-7739

Keywords

Open Access
Article
Publication date: 14 November 2023

Habeeb Yahya

This paper aims to focus on the relationship between female leadership and the environmental, social and governance (ESG) performance of firms. Specifically, the study examines if…

3739

Abstract

Purpose

This paper aims to focus on the relationship between female leadership and the environmental, social and governance (ESG) performance of firms. Specifically, the study examines if firms with women as chief executive officers (CEOs) and/or board chairpersons have higher environmental and social scores.

Design/methodology/approach

The study uses data on publicly listed Nordic firms in a panel regression approach to establish the relationship between female leadership and the environmental and social performance of firms.

Findings

The result of this study shows that women have a leadership characteristic that increases the weighted average of environmental (E) and social (S) performance of a firm. In particular, pillar score results indicate a positive relationship between female CEOs and the social scores of a firm but no relationship between a female board chairperson and the environmental or social scores of a firm. This implies that gender-based differences affect the CEO’s success, especially in a firm’s social performance. Further analyses show a more significant impact on the E and S performance when a woman replaces a man as CEO of a firm.

Originality/value

While prior research has explored various aspects of gender diversity in corporate leadership and its potential impact, the focus on the Nordic context in this study provides a unique perspective, given the region’s distinct business environment and societal factors. In addition, by examining the collective influence of female leaders and both female CEOs and board chairpersons separately, this study provides a nuanced understanding of how different leadership roles may impact a firm’s ESG performance.

Details

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

Keywords

Article
Publication date: 31 March 2023

Géraldine Broye and Pauline Johannes

This study aims to examine how the prestige of audit committee (AC) chairpersons influences earnings management.

Abstract

Purpose

This study aims to examine how the prestige of audit committee (AC) chairpersons influences earnings management.

Design/methodology/approach

The sample contains 1,973 firm-year observations of French listed firms for the period 2007–2018. The authors examine the status of AC chairs and CEOs by focusing on the French business elite system. This study tests the association between AC chairs’ (relative) status and the level of earnings management using measures of accrual earnings management and real earnings management (REM).

Findings

The results of this study do not show that high-status AC chairs constrain accruals manipulation. However, the results provide evidence that they play a key role in constraining REM. High-status AC chairs are more likely to enhance the monitoring of this type of manipulation, given their thorough knowledge and understanding of the firm’s business environment and practices. This study also finds evidence that AC chairs with a status higher than CEOs are associated with lower levels of REM. The results suggest that prestigious AC chairs influence lower status CEOs’ strategic decisions.

Originality/value

This study demonstrates that high-status AC chairs play an important role in detecting and constraining deviations from normal business practices. The results have substantial implications for boards, which will benefit from an understanding of how the appointment of high-status chairs affects financial reporting quality.

Details

Managerial Auditing Journal, vol. 38 no. 6
Type: Research Article
ISSN: 0268-6902

Keywords

Open Access
Article
Publication date: 11 August 2023

María Luisa Esteban Salvador, Emilia Pereira Fernandes, Tiziana Di Cimbrini, Charlie Smith and Gonca Güngör Göksu

This study aims to explore the impact of board size, board gender diversity and federation age on the likelihood of having a female chair in National Sports Federations (NSF).

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Abstract

Purpose

This study aims to explore the impact of board size, board gender diversity and federation age on the likelihood of having a female chair in National Sports Federations (NSF).

Design/methodology/approach

A quantitative methodology compares 300 sports boards in five countries (Italy, Portugal, Spain, Turkey and the UK), using data collected from NSF’s websites.

Findings

The board size and federation age have no significant impact on having a female board chair when the countries and the percentage of female directors are included in the model. When the number of women is measured in absolute value rather than in relative terms, the only variable that predicts a woman chair is the country. When the model does not include country differences, the percentage of female directors is key in predicting a chairwoman, and when the number of women is used as a variable instead of the percentage, a board’s smaller size increases the odds of having a chairwoman.

Research limitations/implications

There are some limitations to this study which we believe provide useful directions for future research. Firstly, the authors have not considered the role of gender typing in sports activities which explains the extent that women participate in specific sports (Sobal and Milgrim, 2019) and the related perception of such sports in society. The social representation of sports activities classified as masculine, feminine or gender-neutral can hypothetically influence women’s access to that specific federations’s leadership. The authors included the country factor only partially, as a control variable, as the social representation of sports usually goes beyond national boundaries.

Practical implications

This study has implications for sport policymakers and stakeholders, and for institutions such as the IOC or the European Union that implement equality policies. If the aim is to increase female presence in the highest position of a sports board and to achieve gender equality more generally, other policies need to be implemented alongside gender quotas for the sports boards, namely, those specifically related to the recruitment and selection of the sports board chairs (Mikkonen et al., 2021). For example, given the implications of critical mass and its ability to increase more female’s engagement then the role of existing chairs acting as mentors and taking initiative in this objective may be warranted. Furthermore, attention should be paid to the existing gender portfolio of each board and its subsequent influence on recruiting a female chair, regardless of the organization’s age. Knoppers et al. (2021) concluded that resistance to gender balance by board members is often related to discriminatory discourses against women. The normalization of the discourses of meritocracy, neoliberalism, silence/passivity about the responsibility of structures and an artificial defence of diversity emphasise that equality should not only be determined by women (Knoppers et al., 2021).

Social implications

When countries are included in the model, the results suggest that the social representation of a female board member is different from that of a female board chair.

Originality/value

The originality of the study is that it shows the factors that constrain women taking up a chair position on NSFs. Theoretically, it contributes to existing literature by demonstrating how a critical mass of females on boards may also extend to the higher and most powerful position of chair.

Details

Gender in Management: An International Journal , vol. 39 no. 4
Type: Research Article
ISSN: 1754-2413

Keywords

Article
Publication date: 9 August 2022

Daniel Kipkirong Tarus, Joel Kiplagat Tuwey and Jacob Kimutai Yego

Using the resource dependence and legitimacy theories, this research aims to examine the relationship between board attributes and human rights reporting, as well as the

Abstract

Purpose

Using the resource dependence and legitimacy theories, this research aims to examine the relationship between board attributes and human rights reporting, as well as the interaction effect of board chairperson experience on the relationship among listed firms at the Nairobi Securities Exchange (NSE).

Design/methodology/approach

This study collected data from annual reports of firms listed on the NSE from 2009 to 2019 using content analysis to examine how boards influence human rights reporting. A total of 547 firm-year observations were used to test the hypotheses. This study used a hierarchical regression model to examine the relationship.

Findings

This study found that board attributes are important predictors of human rights reporting. This study shows that both board diversity and board independence have a positive impact on human rights reporting. Furthermore, the interaction results revealed that having a highly experienced chairperson strengthens the effect of board independence on human rights reporting; however, this study found that experienced chairperson reduces the influence of board diversity on human rights reporting.

Research limitations/implications

The findings suggest that board diversity and independence are essential attributes to which listed companies should pay attention when appointing board members. Moreover, the chairperson's leadership on the board is critical in ensuring that publicly trading companies adopt policies that disclose human rights information.

Originality/value

This paper provides insights into Kenya's human rights disclosure practices. It also analyzes how boards influence human rights disclosures, an empirical test that has received little attention in the previous literature. This study emphasizes the importance of board members and the chairperson in advocating for human rights reporting to improve corporate sustainability.

Details

Corporate Governance: The International Journal of Business in Society, vol. 23 no. 2
Type: Research Article
ISSN: 1472-0701

Keywords

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