Board Characteristics Research Articles

The Impact of Family Firms and Supervisory Boards on Corporate Environmental Quality

This paper examines the impact of family ownership and supervisory board characteristics on carbon emission disclosure. It uses balanced panel data and a matched-pair design of 124 non-financial firms listed on the Indonesia Stock Exchange from 2017 to 2019. This study finds that family firms and larger boards improve, while female board members harm carbon emission performance. Further analyses reveal non-linear relationships between family ownership and carbon performance. When control rights are limited, family firms prioritize controlling managers and improving carbon quality. Conversely, they prioritize personal objectives over environmental concerns when there are high control rights, resulting in decreased carbon emission performance. Additionally, family board members generate more carbon information, indicating the family owners effectively utilize their position on the supervisory boards to influence the company’s carbon emission performance. Finally, the study reports that more faculty member boards seem to hurt carbon emission reduction efforts. This result suggests that the diversity of their professional experiences does not affect the environmental effectiveness of supervisory boards. Our findings highlight the importance of understanding SEW principles and their connection to families in comprehending Indonesian corporate carbon emissions disclosures. The findings of this study enrich the worldwide literature by exploring the potential benefits of family business environmental performance. This study also adds to the literature on corporate governance, especially the role played by supervisory boards. Our findings align with the resource dependence theory, emphasizing the central function of supervisory boards as a monitoring tool. This study is constrained by its reliance on carbon emission data extracted from the annual reports of public firms, with a particular emphasis on pre-COVID-19 data. Future research should focus on sustainability reports and explore the time frame encompassing COVID-19 (2020–2022 datasets) to determine any differences in the findings.

Stock price crash risk research: current trends and future directions

PurposeUnderstanding and mitigating stock price crash risk is vital for investors and regulators to ensure financial market stability. This study aims to unveil significant research trends and opportunities.Design/methodology/approachThis study adopts the bibliometric and systematic review approach to analyse 485 Scopus-indexed articles through citation, keyword co-occurrence, bibliographic coupling, and publication analyses and delve into the depth of crash risk literature.FindingsThis bibliometric review reveals not only a surge in crash risk publications over the last decade but also delineates several emerging thematic threads within this domain. We identify seven distinct themes that have gained prominence in recent literature: bad news hoarding, board characteristics, capital market factors, corporate policies, ownership impact, corporate governance, and external environmental influences on crash risk. This thematic analysis provides a comprehensive overview of the evolving landscape of crash risk research and underscores the multifaceted nature of factors contributing to market instability.Practical implicationsThis study makes a substantial contribution by furnishing a thorough examination of existing studies, pinpointing areas where knowledge is lacking, and shedding light on emerging trends and debates within the crash risk literature.Originality/valueThis study identifies current research trajectories and propels future exploration into agency perspectives, audit quality, and corporate disclosures within crash risk literature.

Retraction notice: The influence of Italian board characteristics on environmental, social and governance dimensions

Retraction notice: The influence of Italian board characteristics on environmental, social and governance dimensions

Do ESG practices mediate the relationship between board characteristics and tax avoidance in G20 countries?

Purpose This study aims to investigate the direct and indirect relationship between board characteristics and corporate tax avoidance using the environmental, social and governance (ESG) index as a mediating variable in G20 countries. Design/methodology/approach To test the direct and indirect effects between board characteristics and tax avoidance using structural equation model analysis, this study used a panel data set of 522 companies from G20 countries between 2015 and 2021. Findings The regression results show that ESG reporting mediates the relationship between the board of directors and tax avoidance in G20 countries. Practical implications The findings have some policy and practical implications that may help regulators improve the quality of transactions and achieve more efficient market supervision. They recommend that governments implement regulations and restrictions on corporate tax avoidance through board mechanisms in G20 countries. Social implications The paper enables information users to assess future growth opportunities by emphasizing the importance of ESG policies and board characteristics in evaluating companies. Originality/value Although previous literature has investigated the direct relationship between the board of directors and tax avoidance, the present work focused on considering the direct and indirect association between the board of directors and tax avoidance through the mediating effect of ESG reporting, which has not been widely used in ESG studies so far.

Corporate board characteristics and CSR budget of selected Bangladeshi banks: moderating role of corporate reputation

Corporate board characteristics and CSR budget of selected Bangladeshi banks: moderating role of corporate reputation

On the road to sustainability: The role of board characteristics in driving ESG performance in Africa

This paper investigates the relationship between board characteristics and environmental, social, and governance (ESG) performance by analyzing 109 firms listed in the African Stock Exchanges from 2016 to 2022. Our findings indicate that board independence, as well as board gender diversity and specific skills, are associated with higher levels of ESG performance. In contrast, larger boards tend to diminish ESG performance in Africa. We also found that the presence of a sustainability committee and a corporate governance committee contributes to driving positive ESG outcomes. This study provides relevant insights and yields significant implications for policymakers and companies, suggesting the need to increase sustainability concerns in their agendas to foster sustainable economic growth in Africa.

Enhancing Financial Metrics through Board Characteristics and Ownership Structures in Palestine

Enhancing Financial Metrics through Board Characteristics and Ownership Structures in Palestine

DETERMINANTS OF RISK DISCLOSURE IN TOP-PERFORMING AUTOMOBILE COMPANIES IN INDIA

Considering the business environment, operations, and regulatory environment companies operate in, disclosure requirements per the regulatory authorities have been more stringent. This study examined the degree of disclosure of risk information disclosed by companies established in India in the automobile sector listed on the National Stock Exchange (NSE) and listed international companies with unlisted subsidiaries in India. This study also aims to identify the governance attributes that influenced the practice of risk disclosure among the selected companies in India. The main risks in top-performing automobile companies in India have disclosed are examined in this paper, along with the board characteristics associated with the disclosure of corporate risk information. The variables included in the study are board size, board independence, and ownership concentration. The content analysis approach was adopted to determine the degree of risk disclosure practices. This study has also applied the descriptive statistics method and fixed effect analysis to measure the degree of information disclosure and to elaborate on the interrelationship between disclosure practices in India and governance attributes. Assessing India's top-performing automobile companies eventually unraveled the risk disclosure practices. Agency and signalling theories were adopted in this study to elucidate the company disclosure practice. The study reveals that there is a significant positive association between board size and the extent of risk disclosure; a significant positive association between board independence and the extent of risk disclosure; and a significant negative association between ownership concentration and the extent of risk disclosure.

Board Structure and Financial Performance of Manufacturing Companies in Nigeria

This study examines the impact of board structure on corporate financial performance in Nigeria. It investigates the Diversity of boards of directors in Nigerian firms and analyses whether board structure has an impact on financial performance, as measured by return on equity (ROE) and return on capital employed (ROCE). Based on the extensive literature, four board characteristics (board Diversity, board size, board ownership and CEO duality) have been identified as possibly having an impact on corporate financial performance and these characteristics are set as the independent variables. The Ordinary Least Squares (OLS) regression was used to estimate the relationship between corporate performance measures and the independent variables. Findings from the study show that there is strong positive association between board size and corporate financial performance. Evidence also exists that there is a positive association between outside directors sitting on the board and corporate financial performance. However, a negative association was observed between directors’ stockholding and firm financial performance measures. In addition, the study reveals a negative association between ROE and CEO duality, while a strong positive association was observed between ROCE and CEO duality. The study suggests that large board size should be encouraged and the Diversity of outside directors as members of the board should be sustained and improved upon to enhance corporate financial performance.

Sustainable Governance: Board Sustainability Experience and the Interplay with Board Age for Firm Sustainability

AbstractThe growing emphasis on sustainability in the business landscape has prompted scholars and industry practitioners to explore the role of corporate governance, particularly the board of directors, in promoting corporate sustainability. Companies are called upon to operate ethically and to redefine their objectives beyond mere economic pursuits to create social impacts that contribute to sustainability challenges. Corporate governance plays a key role in this regard, as it defines the purpose and ethical orientation of the firm, thereby shaping its sustainability. While previous research has primarily focused on observable board characteristics, this study delves into a critical yet underexplored aspect of sustainable boards, i.e., the sustainability experience. Drawing on the upper echelon and resource dependency theories, our research examines how the sustainability experience of board members influences a firm’s sustainability performance, investigating the moderating effect of board age. We analyzed European listed companies from 2014 to 2020, and our findings show that the effect of board sustainability experience on firm performance is contingent on board age. Specifically, our results show that younger boards amplify the positive effect of sustainability experience, while for older boards, this effect diminishes, up to the point of being completely mitigated, highlighting a potential misalignment between sustainability efforts and ethical business conduct. This study is pioneering in investigating the joint effects of board sustainability experience and board age on a firm’s sustainability, thus, providing valuable contributions to theory and practical recommendations for firms in director recruitment, as well as recommendations for regulatory practices.

Board demographic characteristics and governance practices of SOEs in Ghana

Across the globe and particularly in the developing country settings, there has been an upsurge of interests from businesses, academics and policy-makers alike in understanding the relationship between corporate board characteristics and governance practices of State-Owned Enterprises (SOEs). This understanding especially in post-pandemic era would aid in formulating best policies for optimal performance of the SOEs. The aim of this study was to investigate the influence of board characteristics on corporate governance practices in SOEs in Ghana. Utilizing a structured questionnaire, data was collected from employees across various SOEs and analysed through Smart-PLS structural equation modelling. The findings indicate that board demographic characteristics have a significantly positive impact on governance practices, underscoring the importance of diversity in board composition. This outcome highlights the need for SOE policymakers to prioritize board diversity to enhance governance efficacy. This research enriches the literature on corporate governance in the developing country context and has practical implications for enhancing SOE management and performance. It also provides a foundation for future research to explore the dynamics of board characteristics in different contexts.

Board characteristics and cybersecurity disclosure: evidence from the UK

Board characteristics and cybersecurity disclosure: evidence from the UK

The impact of board capital on total value reporting: evidence from the Australian health care sector

PurposeThis study investigates the association between board gender diversity and multiple directorships, two board characteristics representing human, social and relational capital and the extent to which corporate reporting (using the double materiality principle) explains value creation for the organization, environment, society and the economy, which we define as total value reporting.Design/methodology/approachThis study uses a disclosure index developed based on the Integrated Reporting Framework and the Global Reporting Initiative (G4) guidelines to analyze disclosures made using the double materiality principle and reflect the value created by companies. The sample includes corporate reports of 102 Australian Securities Exchange (ASX) companies in the Health Care sector. Ordinary least squares regression analyses test the relationship between board gender diversity and multiple directorships and the quality of total value reporting (and its subcomponents) with appropriate control variables.FindingsFindings reveal that human, social and relational capital formed through multiple directorships and gender-diverse boards is positively related to the quality of total value reporting. Results hold for alternative measures and sensitivity tests of gender diversity and multiple directorships.Practical implicationsOur study reveals that (1) the <IR> Framework, when combined with the GRI Framework, effectively measures connected information quality under a double materiality perspective for total value reporting; (2) enhancing board effectiveness for total value reporting is achievable by increasing female directors and those with multiple directorships; (3) limitations in accessing experienced directors, particularly women, do not disadvantage countries like Australia and (4) directors holding multiple board positions are pivotal in disseminating best practices in corporate governance and reporting across various companies and industries.Social implicationsOur research reveals that gender diversity on corporate boards transcends mere representation, significantly enhancing how firms articulate their value to stakeholders. This finding underscores the urgency for public policies to advocate for increased female board representation. Additionally, our findings indicate that board diversity, encompassing gender, experience, industry background and cultural perspectives, can elevate transparency in reporting, crucial for attracting global investors, particularly in emerging markets.Originality/valueOur study is an early attempt to examine total value reporting – underpinned by double materiality – which reports on how companies create value for themselves, the environment and society. It is one of the first to identify drivers of reporting based on double materiality.

Board Characteristics and Financial Performance: Evidence from Bursa Malaysia Financial Times Stock Exchange (FTSE) Top 100 Index Firms

Board Characteristics and Financial Performance: Evidence from Bursa Malaysia Financial Times Stock Exchange (FTSE) Top 100 Index Firms

The influence of board characteristics, ownership structure and public attention on climate change disclosure in banking sector companies

AbstractThis study aims to analyze the influence of board characteristics, ownership structure, and public attention on the disclosure of information related to climate change in the banking industry. This study uses panel data from financial reports and corporate sustainability in the banking sector. The data is processed using the Eviews application, using a sample of 348 companies from 2018 to 2021. The results show that the presence of women on the board, foreign board members, foreign ownership, and public attention all have a positive and significant effect influence. In contrast, board size and institutional ownership have a negative influence on the disclosure of climate change information by banking companies in different countries. Statistical tests also show that although the level of climate change information disclosure by banking companies is relatively good, there is still room for improvement to be in line with evolving standards. The study also looks at public attention through media coverage, as measured through Google Trends, which has the potential to impact climate change information disclosure, especially in sectors that are sensitive to the issue. Furthermore, the study conducted additional tests by categorizing the sample based on companies located in countries with high and medium rankings in the climate change performance index, as well as grouping them by region (Asia, Americas, and Europe). This research has important practical and theoretical contributions, advancing the understanding of the application of legitimacy and stakeholder theories to climate change and the factors that influence climate change disclosure strategies.

Growing Old, but Paying Back: Understanding How Age Influences Corporate Social Innovation Depth and Breadth of Multinationals in Weak Institutional Contexts

Corporate Social Innovation (CSI) has emerged as a research priority for multinational enterprises (MNEs) due to the increasing popularity of sustainable development solutions addressing wicked problems in the 21st century. Although most studies on CSI have focused on data from developed economies, emphasising the younger generation's forward-looking, sustainable, and environmentally friendly attitudes, there exists a gap in our understanding of the attitude of the older generation towards CSI practices of MNEs operating in emerging economies. The UN's SDG 3 advocates for the well-being of all at all ages. Despite this, healthcare outcomes in global-south countries fall below standard. Therefore, we conducted an in-depth critical analysis of textual data concerning CSI practices of 115 healthcare MNEs operating in 13 emerging economies. We quantified the number of CSI practices in their annual reports and operationalised the dependent variable using an entropy index to calculate the density and percentage score of CSI. Drawing on Upper Echelons, our analysis revealed that older CEOs are likelier to promote, initiate, and implement CSI in greater depth and breadth. These findings present a compelling case supporting the argument that CEOs and board members tend to contribute more to society as they age. We offer empirical evidence supporting the strengthening roles of senior board members and female board chairs. Our findings complement existing CSI studies from developed countries and illustrate how CEO and board characteristics influence the depth and breadth of CSI in emerging economies.

Characteristics of Particle Cement Board and Wood Plastic Composite from Oil Palm (Elaeis guineensis Jacq.) Fronds

Characteristics of Particle Cement Board and Wood Plastic Composite from Oil Palm (Elaeis guineensis Jacq.) Fronds

The Effect of Board Characteristics and Audit Report Delay on Future Earnings Management

The Effect of Board Characteristics and Audit Report Delay on Future Earnings Management

The Effectiveness of Verbal Mimicry in Activist Hedge Fund Campaigns

Hedge fund activism frequently has severe consequences for target firms and their management and boards. Yet, we know little about target management and boards’ response to activist attacks. To advance our understanding in this respect, we examine how the style of target management and boards’ written communication with activists influences campaign outcomes. Building on the behavioral mimicry perspective, we propose that language style matching (LSM) and emotional tone mimicry (ETM), which constitute two distinct types of verbal mimicry, are important communication style characteristics of target management and boards’ response letters that can induce activist demand withdrawal. Though LSM and ETM are reflective of different modes of conflict behavior, we further reason based on conflict management research that ETM in conjunction with LSM is particularly effective in inducing activist demand withdrawal. The positive effects of ETM in conjunction with LSM, however, are expected to fade with increasing length of target management and boards’ written response. Results of an empirical analysis of the public communication between activists and target management and boards in 150 U.S. activist hedge fund campaigns between 2002 and 2019 support these predictions. Our study extends research on financial activism by offering a novel theoretical explanation as to why and how target management and boards can avert activist demands. Further, we contribute to behavioral mimicry research by examining the individual and joint effectiveness of distinct types of verbal mimicry in the hostile context of activist hedge fund campaigns.

Board characteristics and tax planning of quoted companies in Nigeria

This study investigated board characteristics and tax planning among listed companies in Nigeria. It was an ex post facto type of research with a quantitative design covering a longitudinal time frame of five years (2017-2021). The data were analysed using panel regression (random and fixed effects). The outcomes of the study showed that board size and board gender diversity have no significant influence and exert a negative relationship with tax planning among firms while board independence and board political connection have significant influence and a positive relationship with the tax planning practices of the firms listed in Nigeria. It suggested that the government should ensure that boards of companies in Nigeria are well constituted with male and female members and those with politically connected members should be well monitored to prevent tax manipulations to the detriment of government tax revenue for expenditures. This study's potential to identify how board political relationships may promote tax aggression among firms. Thus, it will enable tax authorities to watch out for politically connected firms with regards tax reduction. Similarly, it will be a source of referencing material for researchers undertaking topics of this nature.