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This study aims to test empirically the relationship between board equity ownership and corporate governance on earnings quality of for‐profit corporations, to help practitioners enhance corporate governance practices.

The study examines two competing theories of equity ownership (convergence of interests and management entrenchment) to explain how board members react to owning the firm's stock and whether governance impacts their behavior. In a sample of 499 publicly traded firms, a governance index was calculated and the relative power of equity ownership and governance was regressed on reported earnings quality.

The results support the management entrenchment theory. Both independent and insider board members become entrenched, negatively impacting reported earnings quality and the strength of the governance structure. However, effective governance using a composite of mechanisms moderates the effects of entrenchment.

The effect of individual governance variables on earnings quality is not identified. The reader should not generalize the results of this research to other types of organizations, such as not‐for‐profit or governmental entities. The authors studied for‐profit, publicly held firms where directors act as agents of the stockholders and corporate governance is tasked with the responsibility to monitor management and improve investor confidence in reported earnings quality. The authors acknowledge that in other types of entities, the governance culture and objectives may be different and the results of this study may not apply.

The results provide insight regarding the motivations and behavior of board members and the impact of stock ownership on their actions. Stronger governance controls are needed within the entrenchment range of stock ownership. Firms should not rely on oversight by independent board members to control insider board members. A composite of governance mechanisms can moderate negative behavior.

The results challenge commonly held beliefs that independent board members and board members who own stock will perform their fiduciary duty. This means that governance mechanisms should address all board members, not just specific types and that equity ownership must be very high before it can be relied upon as effective.

The purpose of the paper is to synthesize and evaluate the stream of research that links large shareholders to the production of shared corporate benefits.

The methodology is to review the literature with an emphasis on the development of findings.

The presence of large shareholders is positive only if their incentives are aligned with other owners and they have the power to exert influence. The presence of large shareholders, even those whose interests are aligned with owners, does not always result in stronger governance structures.

The research is limited by the existing stream of literature and the completeness of our search process.

A synthesis and evaluative summary of the research is presented that may be used by researchers, executives, and board members.

From a research viewpoint, effective research designs should incorporate both incentive and power when assessing the monitoring role of large shareholders to aid in the validity and comparability of research results. From a practice viewpoint, managers and board members may use our summary figure to evaluate power relationships and likely reactions to strategic and tactical decisions in their firm's governance structure.

The home is the place where the intimacy of living is manifested and where relationships with the outside world are formed. The truest sense of domestic space is expressed in the opposition between the interior dimension and collective aspirations. A society's needs and aspirations are reflected in the transformations of the dwelling, the city's basic unit and constituent element. The history of the dwelling can be read as the history of the relationship between the desire for the self-representation of an interior world and the desire for identification and recognition within a community. These considerations lie at the heart the research conducted by HousingLab - DiAP - Sapienza of Rome with the goal of developing low-cost residential projects that can be customized and tailored to individual needs. To meet the demands of a large and heterogeneous public, these projects must refer to industrial processes for the manufacturing of mass-produced goods. But how is it possible to reconcile industrialization and mass production with the need for individual expression or with the desire to freely give form to a home, modify it, and define its character according to individual tastes and its physical context? The goal is to create a catalogue of a system of a limited number of easy-to-assemble, standardized and prefabricated components that can generate controlled, but extremely varied and flexible, configurations of domestic space in order to accommodate different needs in relationship to individual taste and different locations. This article will present a series of projects designed by HousingLab - DiAP - Sapienza of Rome highlighting the relationship between architectural quality, energy use, environmental and economic sustainability, and innovation.