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This paper aims to review empirical research on the relationship between institutional ownership (IO) and board governance (85 studies).

Based on agency and upper echelons theory, the heterogeneous monitoring function of specific types and the nature of institutional investors on board composition, compensation and chief executive officer (CEO) characteristics will be focused.

The author found that most studies have referred to archival studies, analyzed the impact of board governance on IO, focused on CEO characteristics, neglected IO heterogeneity and advanced regression models to address endogeneity concerns. In line with the theoretical framework, the relationship between total IO and board governance is heterogeneous. However, specific types such as foreign, dedicated and pressure-resistant institutions represent active monitoring tools and push for increased board governance.

The author provided useful recommendations for future research from a content and methodological perspective, e.g. the need for analyzing the impact of IO on sustainable board governance and other characteristics of top management team members, e.g. the chief financial officer.

As many regulatory bodies implemented regulations to promote shareholder rights and board governance, this literature review highlights the connections of both corporate governance mechanisms. Managers should conduct a careful and timely investor analysis and change the composition and compensation of the board of directors in line with institutional investors’ preferences.

This analysis makes useful contributions to prior research by focusing on IO and board governance, whereas the author structured the heterogeneous variables and results within the structured literature review. The authors guides researchers, regulatory bodies and business practice in this corporate governance topic.

We investigate the effect of the adoption of formal board structure and board processes on firm performance in Colombian family firms, in a context where firms can choose specific aspects of board structure and processes. We deploy insights from the behavioral governance perspective to develop arguments about how family businesses may choose board elements based on their degree of control over the firm (absolute control or less), and its effect on firm performance.

We use an unbalanced data panel of 404 firm-year observations. The data was obtained from the annual financial and corporate governance reports of 62 Colombian stock-issuing firms for the period 2008–2014 – due to change in regulation, data could not be added beyond 2014. Panel data technique with random effects was used.

The results show that board structure is positively associated with financial performance, however, this relationship is negative in businesses where family has absolute control. We also found that there is a negative association between board processes and performance, but positive association in family-controlled businesses.

Our research contributes to research streams on effects of family control in firm choices and on the interactive effect of governance choices and institutional context and more generally how actors interact (rather than react) with their institutional context.

This study aims to examine the impact of interlocking directorships on firm performance in Turkey, with a specific focus on the moderating role of board diversity.

Using a panel dataset comprising the top 100 firms listed on Borsa Istanbul from 2014 to 2018, this study employs regression analysis to investigate the relationship between interlocking directorships, board diversity, and firm performance. It firm-level financial data and directorship information to assess the effects of interlocking directorships on firm performance while also considering the moderating influence of board diversity.

The findings of this study reveal several important insights. First, the results confirm the “busyness hypothesis” as an increase in the number of interlocks per director negatively impacts firm performance, indicating reduced monitoring effectiveness. However, the study also demonstrates that board diversity plays a significant moderating role. Specifically, board diversity positively influences the relationship between interlocking directorships and firm performance, suggesting that a diverse board can mitigate the negative effects of interlocks and enhance overall firm performance.

This study contributes to the existing literature in several ways. First, this study extends our understanding of the relationship between interlocking directorships and firm performance, considering contingency factors in the Turkish market. Second, our findings imply that board diversity mitigates the negative impact of busy interlocking directorates and improves firm performance, which provides invaluable directions to firms in setting their boards. Moreover, this research enhances corporate governance practices in Turkey and beyond in other emerging markets with similar corporate governance mechanisms by identifying the importance of board diversity and its moderating influence.

This study aims to examine the effects of local tournament incentives on environmental, social and governance (ESG) disclosure and the quality of such disclosures among Chinese A-share listed companies. Furthermore, it seeks to investigate the moderating roles of CEO duality, institutional investors’ shareholding and product market competition in this relationship.

This study uses a quantitative approach, and data from A-share listed companies in China spanning from 2012 to 2021. To test the proposed hypotheses, the authors conduct hierarchical regression analysis along with a series of robustness tests to ensure the validity of our findings.

The findings of this study indicate that local tournament incentives have a positive impact on companies’ propensity to disclose ESG information, yet they negatively influence the quality of these disclosures. Additionally, the presence of CEO duality and product market competition attenuate this relationship, whereas the shareholding of institutional investors serves to strengthen it.

This study’s findings can aid policymakers and regulators in China and other emerging economies in policies that promote high-quality ESG information disclosure, taking into account local tournament incentives. Furthermore, the study underscores the importance of maintaining robust corporate governance structures within firms to ensure that CEOs’ self-serving motivations do not undermine ESG disclosure.

This study adds to the ongoing discourse on the significance of ESG disclosure in emerging economies by analyzing the influence of executive promotion incentives on ESG disclosure from an external labor market standpoint. By exploring the potential self-serving motivations of CEOs in promoting ESG values and practices within organizations, this paper addresses a gap in the existing literature.

The purpose of this study is to investigate (1) how managers respond to stock price crashes, (2) why they respond and (3) how their responses affect shareholders.

This study employs a panel regression with various firm-level controls and firm- and year-fixed effects. The sample is comprised of 101,532 firm-year observations with 11,727 unique firms from 1950 to 2019. Using mutual fund flow redemption pressure as an exogenous variable to stock price crashes, the paper provides further evidence of the causality of documented findings.

Management becomes more focused on improving transparency, raising investment efficiency, reducing agency conflicts and regaining the trust of shareholders by investing in social capital and employee welfare. These actions increase firm value. This study also suggests that management undertakes these actions out of concern for their tenure of employment.

The catalysts of stock price crashes are well documented, but much less is known about what happens following stock price crashes. This study provides more insights into the understanding of corporate crisis management practices following adverse events.

Since the implementation of the regulatory inquiry system, research on its impact on information disclosure in the capital market has been increasing. This article focuses on a specific area of study using Chinese annual report inquiry letters as the basis. From a text mining perspective, we explore whether the textual information contained in these inquiry letters can help predict financial restatement behavior of the inquired companies.

Python was used to process the data, nonparametric tests were conducted for hypothesis testing and indicator selection, and six machine learning models were employed to predict financial restatements.

Some text feature indicators in the models that exhibit significant differences are useful for predicting financial restatements, particularly the proportion of formal positive words and stopwords, readability, total word count and certain textual topics. Securities regulatory authorities are increasingly focusing on the accounting and financial aspects of companies' annual reports.

This study explores the textual information in annual report inquiry letters, which can provide insights for other scholars into research methods and content. Besides, it can assist with decision making for participants in the capital market.

We use information technology to study the textual information in annual report inquiry letters and apply it to forecast financial restatements, which enriches the research in the field of regulatory inquiries.

This paper aims to explain how companies in the region of Arab countries respond to the institutional diffusion of a new communication genre like corporate social responsibility (CSR) reports.

Analysis of the features, content and language of CSR reports published by listed companies in the region, to classify the genres of these reports and infer results about ways of companies’ interaction with newly institutionalized genre.

Three distinct genres are identified: “sustainability reports genre,” “professional CSR report genre” and “light CSR report genre.” When companies interact with institutionally diffused genres, they either adopt them and re-enforce their distinctiveness, mix them with elements from other genres so their distinctiveness will be diluted, or produce the old and established genres under the new name so the new genre will lose its distinctiveness.

The proposed classification of CSR report genres and ways of companies’ interaction with new genres are original and open new horizons for research in social and environmental accounting and corporate communication fields.

The purpose of this paper is to explore the legislative framework that governs whistleblowing in the UAE.

The paper examines social perceptions and practical challenges related to the act of whistleblowing. It focuses on the effectiveness, limitations and implications of the current legal status of whistleblowing in the UAE.

The UAE does not have a unified legal framework that governs whistleblowing and whistleblower protections like in the case of the USA. Therefore, there is an urgent need for comprehensive federal regulations that will apply to all sectors across the entire UAE. Each emirate and economic zone can then model their whistleblowing regulations against the federal law to ensure consistency and uniformity in application. The UAE will also benefit from public awareness and education programs to address the conservative culture that discourages whistleblowing. Most importantly, corporate governance and culture are central to the success of existing laws considering the overreliance on organizations and employees.

The paper provides a robust and analytical discussion of the whistleblowing laws and regulations in the UAE to dissect current practices and implications for future practice.

The purpose of this paper is to investigate the influence of the rule of law, corporate governance and freedom of expression on the effectiveness of whistleblowing initiatives. This study interrogates the effectiveness of whistleblowing as a tool in combating economic and financial crimes, in political and corporate environments where good governance and the rule of law are firmly established and enforceable and where defamation is decriminalised.

The author conducted a comprehensive review of relevant textbooks, focusing on legal theories and concepts related to the research topic. This study analysed scholarly journal articles to gain insights into the current debates and research gaps. The author discussed seminal court decisions that have influenced the legal landscape pertaining to the research topic and reviewed newspaper publications to understand public opinion and societal implications related to the research topic.

To ensure effective whistleblowing as a tool of gathering information in combating economic and financial crime, good governance must be promoted, supremacy of law must be upheld, freedom of expression must be safeguarded and defamation must be criminalised.

This paper addresses a significant gap in the literature by examining the impact of criminal libel on whistleblowing, an area that has received limited attention in previous studies. The findings of this study have significant implications for policymakers, as they shed light on importance of the rule of law, good governance, freedom of speech and decriminalisation of defamation on effective implementation of an effective whistleblowing laws and policies.