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Article
Publication date: 31 July 2019

Mehdi Mili, Anis Khayati and Amira Khouaja

Motivated by agency theory, this paper aims to explore the impact of bank diversification and bank independency on the likelihood of bank failure. The effects of corporate…

Abstract

Purpose

Motivated by agency theory, this paper aims to explore the impact of bank diversification and bank independency on the likelihood of bank failure. The effects of corporate governance (ownership and board structures) are also examined.

Design/methodology/approach

Logistic regressions are used to explore the role of corporate governance on bank failure risk. This sample covers 608 banks from eight European countries.

Findings

The results suggest that the well-documented finding that diversification and bank independency may increase bank failure risk does not persist under strong corporate governance mechanism. Thus, to reduce the bank failure risk, diversification should be strongly monitored by the management to avoid excessive risk-taking by shareholders.

Originality/value

The approach used in this study differs from that used in previous studies from certain perspectives. First, unlike most previous studies that focused on the relationship between bank performance and bank diversification, the impact of income and asset diversification on bank failure is tested. Also, the impact of a combined effect of diversification and corporate governance variables on bank failure is tested. This allows the control for different ownership and board variables as factors that would potentially affect the likelihood of bank failure.

Details

Review of Accounting and Finance, vol. 18 no. 3
Type: Research Article
ISSN: 1475-7702

Keywords

Article
Publication date: 14 September 2010

Dren Doli and Fisnik Korenica

The purpose of this paper is to discuss the concept of regulators’ independence, with a special focus on the competition authorities’ independence. The aim of the paper is…

Abstract

Purpose

The purpose of this paper is to discuss the concept of regulators’ independence, with a special focus on the competition authorities’ independence. The aim of the paper is to present a broader view of the competition authorities’ independence, by specifically questioning the Western Balkans’ competition authorities’ independence.

Design/methodology/approach

In the context discussed, the politicization of competition authorities does commonly result in decisions with uncompetitive nature, whose interference in the functioning of the market economy is fundamental. In that line, this paper discusses and argues in favour of non‐politicized competition authorities’ membership, whose structure should be determined by the law. Therefore, this paper goes on to argue that, when the competition laws determine the appointment of competition authorities’ members biased by and conditional on political factors, it is likely that the competition in the market will be crucially harmed, meanwhile the market mechanism would be insufficient in performance.

Findings

The paper finds that the competition policy's independence can be assured through a competition authority whose membership is freed from political appointments, and whose membership represents a plural environment of interests.

Research limitations/implications

The paper limits itself to the organizational bases that precondition the competition authorities’ independence.

Originality/value

The paper provides/contributes for a new concept on competition authorities’ independence, and clarifies the limited role that the government can have in this regard. The paper can serve as a source of academic knowledge to both academicians and practitioners whose field of interest is market regulation.

Details

International Journal of Law and Management, vol. 52 no. 5
Type: Research Article
ISSN: 1754-243X

Keywords

Article
Publication date: 7 December 2021

Jiaolong Wang, Chengxi Zhang and Jin Wu

This paper aims to propose a general and rigorous study on the propagation property of invariant errors for the model conversion of state estimation problems with discrete…

Abstract

Purpose

This paper aims to propose a general and rigorous study on the propagation property of invariant errors for the model conversion of state estimation problems with discrete group affine systems.

Design/methodology/approach

The evolution and operation properties of error propagation model of discrete group affine physical systems are investigated in detail. The general expressions of the propagation properties are proposed together with the rigorous proof and analysis which provide a deeper insight and are beneficial to the control and estimation of discrete group affine systems.

Findings

The investigation on the state independency and log-linearity of invariant errors for discrete group affine systems are presented in this work, and it is pivotal for the convergence and stability of estimation and control of physical systems in engineering practice. The general expressions of the propagation properties are proposed together with the rigorous proof and analysis.

Practical implications

An example application to the attitude dynamics of a rigid body together with the attitude estimation problem is used to illustrate the theoretical results.

Originality/value

The mathematical proof and analysis of the state independency and log-linearity property are the unique and original contributions of this work.

Details

Aircraft Engineering and Aerospace Technology, vol. 94 no. 3
Type: Research Article
ISSN: 1748-8842

Keywords

Article
Publication date: 2 October 2017

Emanuele Teti, Alberto Dell’Acqua, Leonardo Etro and Michele Volpe

This study aims to examine whether particular corporate governance mechanisms influence the performance of mergers and acquisitions.

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Abstract

Purpose

This study aims to examine whether particular corporate governance mechanisms influence the performance of mergers and acquisitions.

Design/methodology/approach

Regression analyses investigating 1,596 recent acquisitions in the US market completed over the five-year period from 2009 to 2013 are performed.

Findings

The results show that board independency, CEO duality and level of CEO fixed compensation have an impact on the return of acquisitions. Moreover, the findings indicate that acquisitions significantly create value for bidders delivering a positive cumulative abnormal return upon announcement. Finally, also focusing on the 690 relative larger deals, there is a clear evidence of a positive influence of good corporate governance mechanisms over the quality of acquisitions completed.

Originality/value

To our knowledge, this is the first paper trying to identify corporate governance mechanisms related to the best acquisition decisions, by using specifically the three corporate governance variables (CEO duality, CEO fixed compensation and board independency).

Details

Corporate Governance: The International Journal of Business in Society, vol. 17 no. 5
Type: Research Article
ISSN: 1472-0701

Keywords

Article
Publication date: 1 March 2016

Duygu Koca

The exterior surface of a building -façade- as a communicative ground reflects the burdened meaning of its structure. Besides communicative capacity of façade, its…

Abstract

The exterior surface of a building -façade- as a communicative ground reflects the burdened meaning of its structure. Besides communicative capacity of façade, its independency, individuality and image dominancy can define exterior surface as an autonomous architectural element in terms of both physical and moral freedom. However, in the twenty-first century, this autonomy has undermined by globalization, technology and communication tools which are among the rapidly increasing activities of the century. Location of architecture in economic transactions and financial market has caused a loss in its internal dynamics and value system. The endeavor of providing the visual appeal only through the façade formation has caused the transformation in the dependency of exterior surface being devoid of content and context. The surfaces have been treated as changeable and renewable advertisement grounds concentrating on the visual appeal of the product, whether the aim is marketing, advertising or commercializing. Thus, the link between architecture and social structures has weakened through the commodification of the end product. In this framework, aim of this paper is (a) to make the description of façade, (b) to define the autonomy of façade through its physical and moral independency by examining cases and (c) to put forward a logical argument on the aspects which make façade an element pursuing only the visual pleasure by oversimplifying its significance in the generation of architectural idea.

Details

Open House International, vol. 41 no. 1
Type: Research Article
ISSN: 0168-2601

Keywords

Article
Publication date: 1 April 1989

Pradip K. Ray and S. Sahu

Critical analysis of previously developed white‐collar productivitymanagement techniques focuses on the existing shortcomings of severalmeasurement and evaluation…

Abstract

Critical analysis of previously developed white‐collar productivity management techniques focuses on the existing shortcomings of several measurement and evaluation methodologies of white‐collar personnel and functions. An analytical method of defining and measuring various pertinent characteristics of both routine and non‐routine white‐collar jobs helps in the development of a more suitable productivity management methodology. A systematic procedure is described for the measurement and evaluation of white‐collar productivity for an individual, a group of individuals or a department. The recommended measures, viz, operations‐based productivity measures for routine and non‐routine jobs, explain in detail the relationship of different white‐collar job characteristics and individual and group productivity at the middle management level. A case example is cited which illustrates the proposed approach. The advantages, along with some limitations, of the methodology are also highlighted.

Details

International Journal of Operations & Production Management, vol. 9 no. 4
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 11 May 2015

Asgar Aghaei Hashjin, Bahram Delgoshaei, Dionne S Kringos, Seyed Jamaladin Tabibi, Jila Manouchehri and Niek S Klazinga

– The purpose of this paper is to provide an overview of applied hospital quality assurance (QA) policies in Iran.

Abstract

Purpose

The purpose of this paper is to provide an overview of applied hospital quality assurance (QA) policies in Iran.

Design/methodology/approach

A mixed method (quantitative data and qualitative document analysis) study was carried out between 1996 and 2010.

Findings

The QA policy cycle forms a tight monitoring system to assure hospital quality by combining mandatory and voluntary methods in Iran. The licensing, annual evaluation and grading, and regulatory inspections statutorily implemented by the government as a national package to assure and improve hospital care quality, while implementing quality management systems (QMS) was voluntary for hospitals. The government’s strong QA policy legislation role and support has been an important factor for successful QA implementation in Iran, though it may affected QA assessment independency and validity. Increased hospital evaluation independency and repositioning, updating standards, professional involvement and effectiveness studies could increase QA policy impact and maturity.

Practical implications

The study highlights the current QA policy implementation cycle in Iranian hospitals. It provides a basis for further quality strategy development in Iranian hospitals and elsewhere. It also raises attention about finding the optimal balance between different QA policies, which is topical for many countries.

Originality/value

This paper describes experiences when implementing a unique approach, combining mandatory and voluntary QA policies simultaneously in a developing country, which has invested considerably over time to improve hospital quality. The experiences with a mixed obligatory/voluntary approach and comprehensive policies in Iran may contain lessons for policy makers in developing and developed countries.

Details

International Journal of Health Care Quality Assurance, vol. 28 no. 4
Type: Research Article
ISSN: 0952-6862

Keywords

Article
Publication date: 1 May 2019

Masood Fooladi and Maryam Farhadi

Prior studies suggest that most expropriation of firm’s resources is conducted through related party transactions (RPTs). Based on the conflict of interest view, related…

Abstract

Purpose

Prior studies suggest that most expropriation of firm’s resources is conducted through related party transactions (RPTs). Based on the conflict of interest view, related parties opportunistically use their authorities to expropriate firms’ resources for their own benefits via RPTs subsequently increasing agency costs and reduce firm value. One important monitoring system suggested by agency theory to reduce the agency problem is corporate governance (CG). CG monitors firm’s performance to align the interests of those who control and those who own the residual claims in a firm. The purpose of this paper is to investigate the moderating effect of CG characteristics on the relationship between RPTs and firm value.

Design/methodology/approach

In order to clarify the distinct effect of RPTs, this study categorises RPTs into two groups including beneficial and detrimental RPTs (DRPTs). Applying “proportionate stratified random sampling”, this study covers a panel of 271 firms listed on Bursa Malaysia over the period of 2009–2011, using a moderated multiple regression model.

Findings

This study documents that firm value is positively associated with beneficial RPTs (BRPTs) and negatively related to detrimental RPTs (DRPTs). In addition, results show that divergence can intensify the negative relationship between DRPTs and firm value. Findings support the necessity for more scrutiny by regulators, policy makers and standard setters to monitor the conflict of interests in RPTs and restrain the power of related parties to protect the firm’s wealth by introducing stricter regulations for RPTs and improve CG practices especially to monitor RPTs in order to limit the opportunistic behaviour of related parties.

Research limitations/implications

Research implications have been presented in Section 10. It has also been summarised in practical implications and social implications sections.

Practical implications

The findings of this study indicate that investors, creditors and policy makers should not consider all RPTs as harmful transactions and it seems necessary to categorise RPTs into different groups including transactions which are detrimental and transactions which are beneficial to the firm.

Social implications

The findings of this study support the necessity for more scrutiny by regulators, policy makers and standard setters to monitor the conflict of interests in RPTs. They should restrain the power of related parties to protect the firm’s wealth by introducing stricter regulations for RPTs and improving CG practices especially to monitor RPTs in order to limit the opportunistic behaviour of related parties.

Originality/value

This study contributes to the RPTs literature by showing that the effect of RPTs on firm value depends on the types of RPTs, and market participants allocate different values to different types of RPTs. Therefore, to fill the gap and clarify the distinct effect of RPTs, this study categorizes RPTs into two groups including beneficial and detrimental RPTs.

Article
Publication date: 31 December 2020

Sheng-Hung Chen, Feng-Jui Hsu and Ying-Chen Lai

There is little known globally on the association among the independent shareholder, board size and merger and acquisition (M&A) performance. This paper addresses the…

Abstract

Purpose

There is little known globally on the association among the independent shareholder, board size and merger and acquisition (M&A) performance. This paper addresses the global issue about cross-border M&A in banking sector, particularly exploring the role of difference in the independent shareholder and board size between acquirer and target banks on synergy gains based on the international study.

Design/methodology/approach

Based on cross-border bank M&As data on 59 deals from 1995 to 2009, we initially apply social network analysis techniques to explore the country connectedness of the acquirer-target banks in cross-border M&As. Ordinary least squares (OLS) with robust standard errors is further used to investigate synergy gains within the difference in the degree of bank independent shareholder and board sizes between the acquirer and target banks.

Findings

Our results indicate that the acquiring banks are generally interconnected with the targeted banks and that some of acquiring banks are clearly concentrated in Asian countries including China, Hong Kong, and Philippines. Moreover, we find that cross-border M&As with larger difference in independent shareholders between the bidder and target bank would result in higher synergy gains in all cases of takeover premiums on 1 day, 1 week and 4 weeks. In addition, financial differences between the bidder and target banks have a significant impact on synergetic gains, a topic not explored in previous studies. There is no evidence that institutional and governance differences between bidder and target bank have significant cross-border impacts on takeover premiums with respect to 1 day, 1 week and 4 weeks, respectively.

Originality/value

This paper contributes to the literature by exploring the international issue about the role of difference in the degree of bank independent shareholder and board sizes between acquirer and target banks on synergy gains. Based on bank cross-border M&As data on 59 deals from 1995 to 2009, we initially apply social network analysis to explore the country connectedness of acquirer-target bank in cross-border M&As, while ten ordinary least squares (OLS) with robust standard errors is used to investigate synergy gains within the difference in the degree of bank independent shareholder and board sizes between acquirer and target banks.

Article
Publication date: 31 May 2019

Sotirios Karatzimas and Carles Griful Miquela

The purpose of this paper is to examine and compare the views of mayors and comptrollers of Catalan municipalities on aspects related to the Spanish legislation on…

Abstract

Purpose

The purpose of this paper is to examine and compare the views of mayors and comptrollers of Catalan municipalities on aspects related to the Spanish legislation on financial sustainability – its usefulness and necessity of maintaining, its impact on citizens’ welfare and alternative proposals. The setting is rather interesting as strict rules are imposed by a legislation criticized of mimicking European Commission policies, on well-performing municipalities, in light of the recent “independency” conflict.

Design/methodology/approach

The study uses insights from the public choice theory and the concept of accountability to draw a framework that could explain the perceptions of mayors and comptrollers. The views of the two groups are captured with the use of an online questionnaire.

Findings

The results indicate that while the application of strict rules has borne fruit, this trend is not sustainable in the long run and a careful reconsideration is required. Accordingly, both groups express concerns on citizens’ future welfare. It moreover appears that in this particular setting, mayors’ and comptrollers’ sense of accountability toward citizens exceed their personal interests.

Originality/value

This study provides empirical evidence on the impact of strict budget stability and sustainability rules on the long-term financial sustainability of local governments from the point of view of mayors and municipality comptrollers who are called to implement them.

Details

Meditari Accountancy Research, vol. 27 no. 3
Type: Research Article
ISSN: 2049-372X

Keywords

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