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41 – 50 of 88This study aims to investigate the effect of the presence of women in top executive positions on financial reporting quality (FRQ) and the role of external audit in enhancing the…
Abstract
Purpose
This study aims to investigate the effect of the presence of women in top executive positions on financial reporting quality (FRQ) and the role of external audit in enhancing the role of women in top executive positions.
Design/methodology/approach
This study uses a sample of 644 Vietnamese-listed firms from 2010 to 2020 and applies fixed-effect and dynamic system generalized method of moments techniques for empirical models to test the related hypotheses.
Findings
First, this study found a U-shaped relationship between women on the board and FRQ as well as women on the audit committee and FRQ. Second, female CEOs are positively associated with FRQ in small firms but there is no evidence of this in large firms. Third, a female chief accountant can enhance FRQ. Finally, external audit quality can reduce the negative effect of women on the board and the audit committee on FRQ and increase the positive impact of female chief accountants on FRQ.
Practical implications
The results support all risk-averse, ethical sensitivity and glass ceiling hypotheses in different contexts. This study provides important implications for firms to enhance FRQ by nominating women in a majority of top executive positions and simultaneously using high-quality external audit services.
Originality/value
The impact of women in top executive positions on controlling FRQ in different contexts is an original contribution to gender in management literature.
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Rakesh Mishra and Sheeba Kapil
This paper aims to explore the relationship of promoter ownership and board structure with firm performance for Indian companies.
Abstract
Purpose
This paper aims to explore the relationship of promoter ownership and board structure with firm performance for Indian companies.
Design/methodology/approach
Corporate governance structures of 391 Indian companies out of CRISIL NSE Index (CNX) 500 companies listed on national stock exchange (NSE) have been studied for their impact on performance of companies. Panel data regression methodology has been used on data for five financial years from 2010 to 2014 for the selected companies. Performance measures considered are market-based measure (Tobin’s Q) and accounting-based measure (return on assets [ROA]).
Findings
The empirical findings indicate that market-based measure (Tobin’s Q) is more impacted by corporate governance than accounting-based measure. There is significant positive association between promoter ownership and firm performance. It is also indicated that the relationship between promoter ownership and firm performance is different at different levels of promoter ownership. Board size is found to be positively related to ROA; however, board independence is not found to be related to any of the performance measures.
Research limitations/implications
Limitations of the study are in terms of data methodology and possible omission of some variables. It is felt that endogeneity and reverse causality might be better addressed using simultaneous equation methodology.
Originality/value
The paper adds to the emerging body of literature on corporate governance performance relationship in Indian context using a reasonably wider and newer data set.
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Krishna Reddy, Sazali Abidin and Linjuan You
The purpose of this paper is to investigate the relationship between Chief Executive Officers’ (CEOs) compensation and corporate governance practices of publicly listed companies…
Abstract
Purpose
The purpose of this paper is to investigate the relationship between Chief Executive Officers’ (CEOs) compensation and corporate governance practices of publicly listed companies in New Zealand for the period 2005-2010.
Design/methodology/approach
Prior literature argues that corporate governance systems and structures are heterogeneous, that is, corporate governance mechanisms that are important tend to be specific to a country and its institutional structures. The two corporate governance mechanisms most important for monitoring CEO compensation are ownership structure and board structure. The authors use a generalised least squares regression estimation technique to examine the effect ownership structure and board structure has on CEO compensation, and examine whether ownership structure, board structure, CEO and director compensation have an effect on company performance.
Findings
After controlling for size, performance, industry and year effects, the authors report that internal features rather than external features of corporate governance practices influence CEO compensation. Companies that have their CEO on the board pay them more than those who do not sit on the board, suggesting CEOs on boards have power to influence board decisions and therefore boards become less effective in monitoring CEO compensation in the New Zealand context. Companies that pay their directors more tend to reward their CEOs more as well, thus supporting the managerial entrenchment hypothesis.
Research limitations/implications
The results confirm the findings reported in prior studies that institutional investors are ineffective in monitoring managerial decisions and their focus is on decisions that benefit them on a short-term basis.
Practical implications
The findings indicate that although the proportion of independent directors on boards does not significantly influence CEO compensation, it does indicate that outside directors are passive and are no more effective than insiders when it comes to the oversight and supervision of CEO compensation.
Originality/value
Being a small and open financial market with many small- and medium-sized listed companies, New Zealand differs from large economies such as the UK and the USA in the sense that CEOs in New Zealand tend to be closely connected to each other. As such, the relationship between pay-performance for New Zealand is found to be different from those reported for the UK and the USA. In New Zealand, the proportion of institutional and/or block shareholders is positively associated with CEO compensation and negatively associated with company performance, suggesting that it is not an effective mechanism for monitoring CEO compensation.
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This study aims to take a strategic approach to analyze how the US technical textile companies manage their business operations and to determine whether there are differences on…
Abstract
Purpose
This study aims to take a strategic approach to analyze how the US technical textile companies manage their business operations and to determine whether there are differences on competitive priorities between high‐ and low‐performing companies.
Design/methodology/approach
A competitive priority model consisting of four latent constructs – low cost, quality, delivery performance, and flexibility – was utilized to construct the analysis. Primary data were collected through a survey of senior executives in the US technical textile companies. Using 202 eligible survey returns, exploratory factor analysis and confirmatory factor analysis within structural equation modeling were carried out to assess adequacy of the measurements and validity of the model.
Findings
The competitive priority model is proven valid and the four constructs account for the most variance in corporate competitive strategies. High‐performing companies placed greater emphasis on quality and delivery performance strategies than low cost strategy in order to build capabilities for product or service differentiation; in contrast, low‐performing companies gave equal weight to all four competitive capabilities. The lack of clear emphasis on strategies could be one of the reasons for a relatively low business performance.
Research limitations/implications
The study provides a springboard for future studies of corporate competitive strategies and its relationships with other key decisions and outcomes.
Practical implications
The deployment of appropriate strategies is imperative to achieve superior business performance and, perhaps, just to survive.
Originality/value
The paper represents the first empirical investigation into corporate strategy issues in the US technical textile sector. The methodology may be transferred to other industrial sectors.
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Ville Hallavo, Jarmo Toivanen, Markku Kuula and Antero Putkiranta
Ownership change has been an overlooked contingency factor in past plant level practice-performance studies. Therefore, the purpose of this paper is to examine the impact of…
Abstract
Purpose
Ownership change has been an overlooked contingency factor in past plant level practice-performance studies. Therefore, the purpose of this paper is to examine the impact of ownership changes to practice-performance dynamics by longitudinally following the same 23 manufacturing sites from year 1993 to 2010.
Design/methodology/approach
Interview data of the made in Finland – study are used for presenting different paths of plant development in the long term. Both narratives and descriptive statistics are used to support the analysis.
Findings
The findings suggest that the benefits of long-term domestic ownership may in fact exceed the positive knowledge spill-over effects that derive from foreign acquisitions. Foreign acquirers seem to “cherry-pick” well-performing sites. Also it seems that the likelihood of inferior performance and plant shutdowns may increase due to foreign acquisitions.
Research limitations/implications
Due to the exploratory nature of the study the sample size did not allow for testing statistical significance of the results.
Originality/value
The exploratory findings of the study open new avenues of theory development for practice-performance studies, and corroborate research in other disciplines such as economics and corporate governance.
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Mohammed Amidu and Joshua Abor
This study seeks to examine the determinants of dividend payout ratios of listed companies in Ghana.
Abstract
Purpose
This study seeks to examine the determinants of dividend payout ratios of listed companies in Ghana.
Design/methodology/approach
The analyses are performed using data derived from the financial statements of firms listed on the Ghana Stock Exchange during a six‐year period. Ordinary Least Squares model is used to estimate the regression equation. Institutional holding is used as a proxy for agency cost. Growth in sales and market‐to‐book value are also used as proxies for investment opportunities.
Findings
The results show positive relationships between dividend payout ratios and profitability, cash flow, and tax. The results also show negative associations between dividend payout and risk, institutional holding, growth and market‐to‐book value. However, the significant variables in the results are profitability, cash flow, sale growth and market‐to‐book value.
Originality/value
The main value of this study is the identification of the factors that influence the dividend payout policy decisions of listed firms in Ghana.
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Nexhmi Rexha, Russel Philip John Kingshott and Audrey Shang Shang Aw
Marketing managers in financial institutions should be aware that customers are likely to embody electronic banking provided that such technology contributes to existing…
Abstract
Marketing managers in financial institutions should be aware that customers are likely to embody electronic banking provided that such technology contributes to existing relationships. Based on a survey of bank corporate clients in Singapore, the impact of satisfaction, trust and the use of electronic banking on commitment towards current banks was investigated. It was found that trust was the key factor influencing the adoption of electronic banking. Perceived customer satisfaction with the bank only impacted indirectly on the adoption of electronic banking. The cumulative effects of customer satisfaction were found to have a positive impact on trust directed towards the bank, and this greatly impacted on the propensity to use electronic banking. Customer satisfaction, trust, and the use of electronic banking were found to have a positive impact on the corporate clients’ commitment towards their bank.
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This study aims to examine the effect of corporate governance on firms' dividend payout policy in sub‐Saharan Africa. The study also aims to examine how dividend payout influences…
Abstract
Purpose
This study aims to examine the effect of corporate governance on firms' dividend payout policy in sub‐Saharan Africa. The study also aims to examine how dividend payout influences corporate governance.
Design/methodology/approach
Using a sample made up 27 Ghanaian firms, 177 Nigerian firms, 51 Kenyan firms, and 270 South African firms covering the period 1997‐2006, the paper employs a simultaneous panel regression model in its estimation.
Findings
The results show that board composition and board size exhibit significantly positive relationship with dividend payout in Kenya and Ghana, respectively. Institutional ownership positively influences dividend payout among South African and Kenyan firms. In the case of Nigeria, all the corporate governance measures show significantly negative effects on dividend payout. The findings clearly suggest that, with respect to South Africa, Kenya and Ghana, good corporate governance structures lead to high‐dividend payout, probably due to easy access to and low cost of external finance. However, in Nigeria, improving the governance structures may be associated with high‐earnings retention or low‐dividend payment in order to reduce cost of external finance. We found in the case of Ghana that, dividend payout positively affects board composition, suggesting that Ghanaian firms with high‐payout tend to adopt good corporate governance structures in order to ensure protection of shareholder interest. The findings of this study certainly have important policy implications.
Originality/value
This present study contributes to the corporate governance literature by looking at the importance of corporate governance in influencing firms' dividend behaviour in selected African countries.
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Juha‐Antti Lamberg, Grant T. Savage and Kalle Pajunen
Employee stock ownership programs (ESOP) may become a source of competitive advantage but a threat to a firm’s survival as well. Strategic stakeholder negotiation, on the other…
Abstract
Employee stock ownership programs (ESOP) may become a source of competitive advantage but a threat to a firm’s survival as well. Strategic stakeholder negotiation, on the other hand, is a process through which an organization negotiates with multiple stakeholders in order to achieve a strategic goal. Such perspective helps to illustrate the importance of understanding, balancing, and managing stakeholder demands in ESOP‐related negotiations. The airline industry provides an interesting arena in which to study this process. Specifically, this paper examines the various forms of stakeholder negotiations crucial to the competitive behavior of US airlines, focusing especially on employee ownership negotiations in United Airlines during
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Chin‐Bun Tse and Joanne Ying Jia
This paper attempts to investigate what kind of firms is more likely to use capital structure to signal; and in particular to investigate the impacts of corporate ownership…
Abstract
Purpose
This paper attempts to investigate what kind of firms is more likely to use capital structure to signal; and in particular to investigate the impacts of corporate ownership structures on firms' capital structure signalling decisions.
Design/methodology/approach
The paper develops theoretical models and then uses OLS multiple regression, piecewise regression and logistic regression analysis on a set of data derived from 327 UK firms listed in the FTSE ALL share index to test the hypotheses.
Findings
The empirical results show that capital structure is not homogeneously used as a signalling tool; and firms with insider ownerships less or equal to 1.14 per cent are more likely the signallers.
Research limitations/implications
Although other variables have been examined, this paper focuses on the impacts of insider ownership on capital structure signalling. Further work is required to investigate other variables that are mentioned but they are outside the scope of this paper.
Practical implications
This paper provides useful practical insights to both managers and investors to help them better understand and interpret firms' capital structure signals.
Originality/value
Before this paper, most people commonly agreed that capital structure contains signalling values. However, the findings suggest that it is not always the case.
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