Board Affiliation Research Articles

Does board composition matter for innovation? A longitudinal study of the organizational slack–innovation relationship in Nasdaq-100 companies

In high-tech industries, firms accumulate increasing amounts of excess resources. Existent research paints an ambiguous picture of these slack resources for innovation: while some slack is integral for innovation as fuel for experimentation, too much slack inhibits innovation by causing inefficiencies. However, firms in high-tech industries cannot develop and sustain competitive advantages in the long run without sufficient and steady investments in innovation. Additionally, the increasing complexities within these highly dynamic industries make it easier for managers to pursue their self-interests—often to the organization’s detriment. Against this backdrop, the role of the board of directors is particularly crucial in high-tech industries, as it determines the efficacy of the board’s governance and resource provisioning functions. This study proposes several board characteristics as moderators of the slack–innovation relationship. The dataset builds on a longitudinal sample of high-tech firms from the Nasdaq-100 Index between 2010 and 2020. The results advance management literature by extending the notion of slack resources as a double-edged sword to high-tech industries. The findings also show that this relationship is contingent on specific board characteristics: larger and more independent boards dampen this relationship, while longer board tenure, more board affiliations, and a larger share of women directors amplify it. Further, the findings caution managers to balance the necessity of slack resources for promoting innovation with its efficiency detriment. The results additionally inform practitioners on determining the optimal board composition in the face of mounting competitive pressures for sustained innovation.

Impact of Structural Capital and Company Size on the Growth of Firm Value through Financial Performance with Good Corporate Governance as a Moderating Variable: Property and Real Estate Business in Indonesia

Purpose: This study aims to examine the role of good corporate governance in moderating the effect of capital structure and firm size on financial performance and its impact on the value of property and real estate companies in Indonesia. Approach/Methodology/Design: The study population is a company incorporated in Indonesia's property and real estate industry and was listed on the Indonesia Stock Exchange (IDX) in 2013-2018. Data collection is done by distributing questionnaires offline and online using Google forms that have been tested with validity and reliability testing. The data analysis technique used is the SEM-PLS Analysis technique. Findings: The results showed that the mechanism of good corporate governance in the form of board affiliation, the size of the board of directors, and the presence of an audit committee moderated the decision of capital structure and firm size that influenced financial performance and firm value. This study also proves the direct and indirect effect of capital structure decisions on financial performance and firm value. Another finding is the indirect effect of company size on firm value through financial performance. Practical Implications: Board affiliation can reduce asymmetric information so that management will make decisions and act on shareholders' interests. Originality/Value: Mechanism through good corporate governance and the use of debt as control over the manager's performance will reduce the occurrence of agency problems.

Use of a curved needle to facilitate lateral sagittal infraclavicular block performance: a randomized clinical trial

Failed needle-tip positioning in an ultrasound-guided infraclavicular block can be due to improper needle insertion point and steep needle insertion angle. Needle pre-curving enables the user to pass the needle with different curved trajectories on approaching the brachial plexus. Aim of the study was to compare curved and non-curved needles as regards the time needed to perform the lateral sagittal infra-clavicular block. Sixty-nine patients undergoing surgery distal to the elbow were randomly allocated to two groups: group A (n = 35), which received ultrasound-guided infraclavicular block using the curved needle; and group B (n = 34), which received the infraclavicular block using the non-curved needle. The primary outcome measure was the time needed to perform the infraclavicular block. Anesthetist's experience with the curved vs. non-curved needle was noted. Mean (SD) recognition time (120 ± 48 vs. 179 ± 72s, P = 0.0002) and injection time (54 ± 23 vs. 88 ± 36s, P = 0.0001) were shorter in group A compared to group B. Median (IQR) procedure pain score was less in group A 2 (1-2) than in group B 2 (2-3); P = 0.001. Median (IQR) satisfaction score was higher with regards to the curved needle 4 (4-5) than non-curved needle 3 (3-4) in performing infraclavicular blockade; P = 0.001. The use of a curved needle reduces the time required to perform the lateral sagittal infraclavicular block. The curved needle provides less procedure pain and higher satisfaction levels among anesthetists than the non-curved needle. The trial was registered (04/26/2016) with the ClinicalTrials.gov ID: NCT02799576. Approval Number: #2543. Board Name: Research Ethics Committee. Board Affiliation: Suez Canal University, Faculty of Medicine, Suez Canal University hospital, Ismailia, Egypt, 41522.

Opioid Prescribing Patterns and Patient Outcomes by Prescriber Type in the Oregon Prescription Drug Monitoring Program.

Prescription drug monitoring programs (PDMPs) were created to facilitate responsible use of controlled substances. In Oregon, physicians, physician's assistants (MDs/DOs/PAs), dentists, nurse practitioners (NPs), and naturopathic physicians (NDs) may prescribe opioids, but differences in prescribing practices, patient mix, and patient outcomes among prescriber types have not been characterized. De-identified Oregon PDMP data from October 2011 through October 2014 were linked with vital records and a statewide hospital discharge registry. The disciplines of registered prescribers were identified by board affiliations. Prescription profiles associated with opioid overdose risk were tabulated for patients with at least one registered prescriber. Opioid-related hospitalizations and deaths were identified using ICD-9 and ICD-10 codes. There were 5,935 prescribers registered during the study period. Patients of NPs or NDs received more high-risk opioid prescriptions than patients of MDs/DOs/PAs. For example, they received greater proportions of high-dose prescriptions (NP 12.9%, ND 15%, MD/DO/PA 11.1%), and had greater opioid-related hospitalization (NP 1.7%, ND 3.1%, MD/DO/PA 1.2%; P < 0.005 for all). However, patients of NPs or NDs were also more likely to have four or more prescribers (NP 45.3%, ND 58.5%, MD/DO/PA 27.1%), and most of their patients' high-risk opioid prescriptions came from prescribers in other disciplines. Our analysis suggests significant differences in opioid prescription profiles and opioid-related hospitalization and mortality among patients receiving opioid prescriptions from nurse practitioners, naturopathic physicians, or medical clinicians in Oregon. However, these differences appear largely due to differences in patient mix between provider types rather than discipline-specific prescribing practices.

Understanding the size and spread of Chinese NGO networks: capacity and board affiliations

In recent years, the amount of research on digital inter-organizational networks among Chinese non-governmental organizations (NGOs) has increased greatly. However, few studies have examined the offline networks of Chinese NGOs. To fill this gap, the present study investigates the size and spread of offline Chinese NGO networks. In particular, we examine two competing hypotheses: the influence of organizational capacity and the influence of board affiliations as guanxi on the size and spread of the ego-centric networks of NGOs. To test our hypotheses, we conducted surveys among 119 Chinese NGOs. The results of the ordinary least squares regression supported our guanxi hypothesis: the number of organizational affiliations that the members of a board of directors have was positively related to the size of Chinese NGO networks, controlling for geographic region, social issue area, age, and revenue of the NGOs. In addition, as guanxi, board affiliations influenced the spread of NGO networks via the size of NGO networks. This study contributes to the research on Chinese inter-organizational communication networks in general and to Chinese NGO offline networks, NGO capacity, and guanxi culture in particular.

Independent Directors and Favoritism: When Multiple Board Affiliations Prevail in Mutual Fund Families

I examine whether independent directors with multiple board affiliations (IDMAs) trade off the interests of one fund relative to another (fund favoritism) or whether they benefit fund shareholders by increasing the level of the board's expertise. Using a sample of mutual funds affiliated with the top 55 fund sponsors from 2002 to 2008, I find that the presence of IDMAs is negatively related to performance/resource shifting across funds within fund families. IDMAs appear to decrease fund fees, increase the return gap associated with the unobserved actions of fund managers, and facilitate the transfer of information across funds in a fund family.

Determinants of Corporate Board Independence: Empirical Evidence from India

The spate of scandals and the financial crisis in the recent past has resuscitated the interest of academicians and regulators in the subject of corporate governance. Since corporates employ several governance (agency-conflict controlling) mechanisms at one point of time and board independence is one of them, the central accent in this research is upon the investigation of determinants of corporate board independence in Indian institutional context. By counting on several model specifications, modulations, proxies and operationalizations, regression estimates discloses that inside ownership, leverage, dividend payout policy, institutional ownership and firm growth have a significant bearing on the level of board independence. The denouements of firm size and board affiliation level have also been recognized while analyzing the determinants of board independence. Overall, the outcomes of the empirical analysis have invigorated the applicability of agency theory standpoints in Indian context. Moreover, these findings have profound implications for corporate governance research and have also been able to abate the diversity in empirical evidences of performance consequences of board independence.

Board affiliation and pay gap

This paper examines the effects of board affiliation on the corporate pay gap. Using a sample of Chinese listed firms from 2005 to 2011, we find that boards with a greater presence of directors appointed by block shareholders have lower pay gaps. Furthermore, the governance effects of board affiliation with and without pay are distinguished. The empirical results show that board affiliation without pay is negatively related to the pay gap, while board affiliation with pay is positively related to the pay gap. Overall, the results shed light on how block shareholders affect their companies’ pay gaps through board affiliation.

Affiliation and professionalism: Alternative perspectives on decomposing the board structures of financial institutions

Most financial institutions around the world are under concentrated ownership. To protect rents and the private benefits of control, controlling owners prefer to include more affiliated members on their boards. This study empirically examines financial institutions in Taiwan—a country that harbors both firms with controlling shareholders and pyramidal groups—and its results verify the aforementioned postulation. We find that board affiliation is positively associated with control rights, cash flow rights and the control/cash flow deviation associated with controlling owners. In contrast, professionalism can disentangle controlling owners' motives, as it is positively associated with the controlling-owner cash flow/control rights ratio and negatively correlated with the control/cash flow deviation. The results support the incentive effect associated with controlling owners. Moreover, the information argument provides auxiliary explanations for how boards are structured. Family is a catalyst for the bias toward lower levels of board professionalism. Finally, whereas board professionalism is positively correlated with stock returns during a financial crisis, board affiliation has a negative correlation.

The Gatekeepers of Business Education Research: An Institutional Analysis

The author ranked the academic standing of universities based on faculty representation to the editorial boards of business education journals. Previous studies that ranked institutions for editorial board representation focused on journals that primarily favor publication of basic and applied research contributions. As a result, prior research has accorded either very minimal or no consideration for journals that publish learning and pedagogical research. This author addressed the aforementioned shortcoming by extending the editorial board ranking method to include 1,279 editorial board affiliations for 31 business education journals. The rankings provide a comparative perspective on institutional affiliations and participation in the peer review process for business education research.

AN EMERGING CIVIL SOCIETY: THE IMPACT OF THE 2008 SICHUAN EARTHQUAKE ON GRASS-ROOTS ASSOCIATIONS IN CHINA

The western China, especially near the Wenchuan region witnessed a terrible earthquake in the year 2008, which led to some severe damage in the country. Several interviews and studies are conducted to explain the impact of this Sichuan earthquake on the development of the various grass-root associations present in the country.

Announcing a New Open Access Journal: Cell Medicine, Part B of Cell Transplantation.

Cell therapy in medicine elicits equal jubilation and pessimism. The notion that the diseased or aging cell can be replaced with a healthy cell, in particular the use of a pluripotent stem cell, has challenged the dogma of the nonregenerative status of mature cells. To this end, a long list of new stem cell sources has emerged, including those derived from the embryo, fetus, umbilical cord, placenta, amnion, bone marrow, adipose, skin, and menstrual blood. The derivation of a patient-specific set of stem cells is key to the success of cell medicine. However, the inadvertent entry of cell therapy into the clinic in the absence of solid scientific evidence, clinical guidance, and regulatory oversight has seriously hampered the realization of the true potential of cell medicine. Indeed, “stem cell tourism” has become an international business enterprise that has put the patient in unregulated medical treatment (see 2008 Guidelines for the Clinical Translation of Stem Cells, International Society for Stem Cell Research; www.isscr.org/clinical_trans/pdfs/ISSCRGLClinicalTrans.pdf). We recognize the need to expedite the translation of laboratory findings into clinical application, in view of the debilitating and many times fatal human disorders that may benefit from cell medicine. Accordingly, we sought a platform wherein the three important translational research components—namely the academic institution, the biomedical company, and the regulatory agencies—have an equal footing in providing a critical input on the science, as well as the safety and efficacy of this therapy. A careful examination of currently available journals reveals that there exists a limited open access communication among these three translational research components, in that most of the peer-reviewed journals cater to research experiments from the academicians, with an increasing number of studies conducted under a translational theme whereby a collaborative effort between a university and a biomedical company is apparent. In addition, many professional societies, such as the Cell Transplant Society and American Society for Neural Therapy and Repair, have been equally keen in forging ahead with translational medicine, and are yearning for a translational journal that publishes peer-reviewed proceedings and papers arising from their annual meetings. More unfortunate is that many experimental data from the biomedical companies, as well as the clinical guidelines issued by the regulatory agencies, appear as in-house or interagency manifestos. In our desire to advance cell medicine to the clinic, we are launching a new journal Cell Medicine, Part B of Cell Transplantation (the subtitle to reflect that it is from the same stable as Cell Transplanation). Along the line of promoting the theme of translational research, we will build an Editorial Board consisting of academicians, biomedical experts, and regulatory administrators, who are specifically engaged in the science and translation of a cell product emerging from the laboratory to the clinic. Thus, Cell Medicine will allow Cell Transplantation to significantly increase its Editorial Board affiliation. Our overarching goal is to solicit and process, under rigorous, but fair and rapid peer review, those papers on cell therapy with direct clinical relevance. We are aware that translational studies are “milestone-driven” as opposed to routinely “mechanism-driven” experiments; thus, this further distinguishes our journal as we understand the difficulty in getting published in regular journals with strong emphasis on the latter aspect of scientific investigation. Moreover, we propose that an editorial commentary from the assigned handling editor to accompany many outstanding articles in order to outline the next steps necessary for the transition of the study under investigation closer to clinical application. We envision that this unique journal will facilitate the critical evaluation of cell medicine as a safe and an effective treatment for human disorders. Cell Medicine will be an online-only journal, with focused articles on translational research from professional societies as well as collaborations among academia, industry, and/or regulatory agencies. This new initiative is in tandem with the “Open Access” format that was introduced in 2009. Both these changes are driven by our goal to make Cell Transplantation and our new online-only journal Cell Medicine the journals of choice that cater to rapidly changing technology in the dissemination of scientific knowledge and to the current push for translational research in the field of cell transplantation.

Conflict of Interest Policy for Editors of Obesity

Integrity in the publication process requires impartiality at all levels of review. Obesity adheres to the policy of the International Committee of Medical Journal Editors, “Uniform Requirements for Manuscripts Submitted to Biomedical Journals: Writing and Editing for Biomedical Publication” (1). We have, with their permission, borrowed heavily from the statement of the American Journal of Clinical Nutrition (2) and benefited considerably from the thinking of their editorial board; we thank them for their generosity. Our policy details the ethical considerations relevant to ensuring impartiality. Consistent with this policy, Obesity's author guidelines require authors to disclose “any advisory board affiliations with and/or financial or personal interests in any organization sponsoring the research at the time the research was done.” Consistent with the policy, Obesity expects reviewers to recuse themselves from refereeing manuscripts when a significant conflict of interest exists at either the financial or the personal level. Furthermore, if a reviewer has knowledge of any relationship that might possibly constitute a conflict of interest when asked to evaluate a manuscript, it is the reviewer's obligation to notify the editors, who will then decide whether to exclude the reviewer in that particular instance. Obesity editors will declare, on the journal's Web site (http:www.obesity.org), all relationships from which they (or their spouse or dependent children) receive either assets or supplemental income of more than $1,000 per annum outside of compensation related to his or her full-time, permanent employment. In this context, a “relationship” is defined as (i) ownership of equity in any public or private company in the agriculture, food, nutrition, or pharmaceutical industries, excluding holdings in mutual funds, (ii) participation in any industry-related activity, agreement, or arrangement that results in a financial payment of transfer of assets to the editor exceeding actual expenses for travel and participation, and/or (iii) actual or in-kind research support for the editor's research activities. The initial Web site declaration for each editor will appear in the fall of 2009 and will include all potential conflicts that exist at that time as well as those for the prior 12 months. The Web site declaration will be updated yearly to include the potential conflicts that have occurred in the intervening year. The initial conflict of interest declaration for a new editor will be published on the Web site when the editor assumes his or her duties and will be updated annually. Editors will recuse themselves from being responsible for manuscripts submitted by associates (former students, fellows, mentors, and collaborators) with whom they have worked in the previous 5 years and by faculty members at their own institutions. Manuscripts submitted to Obesity by one of the editors will be handled by another editor. The journal's electronic submission and review software allows an Associate Editor to deny a conflicted editor access to relevant information concerning manuscripts submitted by associates or by the individual editor. In addition, a conflicted editor will be barred from participating in any discussion among the editors pertaining to such manuscripts. The editors realize that it is not possible to define or anticipate every potential conflict. Thus, when new apparent conflicts arise, they will be evaluated individually by the Editor-in-Chief and by editors who are not affected by the conflict. The affected editor must agree to abide by the decision of his or her colleagues in this instance. Finally, we acknowledge that conflict of interest policies are evolving, and both Obesity and The Obesity Society are continually reviewing and revising their overall conflict of interest policies. The Obesity editors' conflict of interest policy represents an initial step toward keeping obesity research free of conflicts of interest to the fullest extent possible. None of the authors had any personal or financial conflicts of interest relevant to the conflict of interest policy expressed in this Editorial.

CONVERSATIONS, CONTROL, AND COUCH‐TIME

Click to increase image sizeClick to decrease image size ACKNOWLEDGMENTS Supported in part by a grant from the National Heart, Lung, and Blood Institute, National Institutes of Health (R01 HL62224) and a Robert Wood Johnson Foundation Generalist Physician Faculty Scholar Award. We would like to thank K. Farish Haydel, Michelle Fujimoto, and Ann Varady for assistance with data management, Melissa N. Saphir PhD for study coordination, Helena C. Kraemer PhD for statistical advice, and Sally McCarthy and Connie Watanabe for their administrative assistance throughout the study. We are also indebted to the students, parents, teachers, and administrators of all the schools that participated in this study. DLGB was responsible for data analyses and writing of the manuscript. TNR was responsible for securing funding, design of the study, and writing of the manuscript. Neither author has advisory board affiliations or financial interests in organizations sponsoring the research.

The Agency Problems Embedded in Firm’s Equity Investment

We find that agency problems are embedded in firm’s excess and abnormal equity investments that are mainly dictated by controlling shareholder’s motives and ethical choices manifested in ownership and board structure. The excess equity investment is gauged with respect to industry average. The abnormal equity investment is specifically referred to the number of nominal investment companies that are fully controlled by the controlling owners while subject to little governance. Our empirical evidences of 345 Taiwanese non-financial listed firms show that firm’s excess and abnormal equity investments are negatively correlated with controlling shareholder’s cash flow rights while are positively correlated with the control–cash flow deviation, and board affiliation. The results are supportive of the positive incentive hypothesis and the negative entrenchment hypothesis put forth by La Porta et al. (2002, Journal of Finance 57, 1147–1171) and Claessen et al. (2002, Journal of Finance 57, 2741–2742). The negative relation between equity investment and firm’s value further supports the agency postulation that corporate excess and abnormal equity investments represent a leeway for controlling shareholder to exploit wealth of minority shareholders. This study potentially contributes to the literature of business ethics by portraying an empirically testable linkage from controlling owner’s ethical choices to his actions and therefore firm’s value.

Commitment or entrenchment?: Controlling shareholders and board composition

This paper examines the determinants of board composition and firm valuation as a function of board composition in Taiwan – a country that features relatively weak protection for investors, firms with controlling shareholders, and pyramidal groups. The results suggest that there is poor governance when the board is dominated by members who are affiliated with the controlling family but good governance when the board is dominated by members who are not affiliated with the controlling family. In particular board affiliation is higher when negative entrenchment effects – measured by (1) divergence in control and cash flow rights, (2) family control, and (3) same CEO and Chairman – are strong and lower when positive incentive effects, measured by cash flow rights, are strong. Moreover, relative firm value is negatively related to board affiliation in family-controlled firms. Thus, the proportion of directors represented by a controlling family appears to be a reasonable proxy for the quality of corporate governance at the firm level when investor protection is relatively weak and it is difficult to determine the degree of separation between ownership and control.

Women and Racial Minorities in the Boardroom: How Do Directors Differ?

In this paper, we examine how the attributes of female and racial minority directors differ from those of white males. We track a sample of white male, white female, African-American female and African-American male directors who serve on Fortune 1000 boards and find differences in occupational background, education, and patterns of board affiliation. Female and African-American directors are more likely to come from non-business backgrounds, are more likely to hold advanced degrees, and join multiple boards at a faster rate than white male directors.

Women and Racial Minorities in the Boardroom: How Do Directors Differ?

In this paper, we examine how the attributes of female and racial minority directors differ from those of white males. We track a sample of white male, white female, African-American female and African-American male directors who serve on Fortune 1000 boards and find differences in occupational background, education, and patterns of board affiliation. Female and African-American directors are more likely to come from non-business backgrounds, are more likely to hold advanced degrees, and join multiple boards at a faster rate than white male directors.

Building the Board

Building the Board Affiliation Muriel Bliss Wilbur CopyRight https://doi.org/10.2105/AJPH.45.1.111-a Published Online: October 03, 2011