Board Leadership Research Articles

The effect of corporate governance on bank performance: evidence from Turkish and some MENA countries banks

This paper examines the relationship between the structure of corporate governance and performance in the banking sector. A sample has been selected using the generalized method of moment (GMM) approach. The sample consists of data from a total of 33 Turkish, Tunisia, Morocco and Lebanon banks which are listed in stock during the period between 2012 and 2017. Since this paper emphasizes corporate governance, a “Board Characteristics Index” was developed based upon four different aspects of the board composition–board leadership structure, board member characteristics and board committee structure. It also demonstrates how the overall index relates to banking performance. The results show that the governance index, which aggregates with the four sets of board attributes relate significantly and positively with return on assets.

Strategy as learning in multi-academy trusts in England: strategic thinking in action

ABSTRACT Multi-academy trusts are groups of schools in England led by an Executive Head Teacher and a Board of Trustees. High profile failures of these organisations raise questions over the way they are strategically led. Leadership studies argue that the absence of strategic thinking is a major detractor from performance & sustainability. However, creating strategy for a single organisation is very different to creating it for a collaboration. This article adopts a schema-based approach to examine the ways in leadership boards approach strategy as learning. Drawing on 42 qualitative interviews it asks: What evidence is there that strategy is a learning activity; What organisational implications are there for this? What are the implications of this for Trustee and CEO development in this area? And what theoretical contribution does this study make to what is known about strategy learning in multi-level organisations? The paper concludes that there is evidence to suggest that respondents view strategy as learning, whilst also suggesting areas for professional development for school leaders. From a theoretical perspective, the paper adds to knowledge on the role of metacognition in a strategy as learning approach to strategic decision-making.

Strive towards investment efficiency among Egyptian companies: Do board characteristics and information asymmetry matter?

AbstractThis study examines the impact of the board of directors (BoD) characteristics, namely BoD independence, compensation, leadership, and CEO career concerns on investment efficiency, using information asymmetry as a mediator. Using a sample of 326 firm‐year observations of non‐financial firms listed in the EGX 100 Index of the Egyptian stock market from 2014 to 2018, we find that board independence, board compensation, and board leadership are negatively associated with inefficient investment and information asymmetry, whereas the opposite is true for CEO career concerns. Furthermore, a positive relationship between information asymmetry and inefficient investment is documented. Finally, we find that information asymmetry mediates the relationship between the three BoD characteristics (i.e., board independence, leadership, and compensation) and inefficient investment. Conversely, it does not interfere with the relationship between CEO career concerns and inefficient investment. These findings are consistent in both under‐investment and over‐investment scenarios and across the pooled sample. Our findings contribute to corporate governance and investment literature by addressing new relationships, providing empirical evidence from a one‐tier board model in developing countries, and offering a useful explanation for the inconsistent results in prior studies. These findings help regulators, investors, and policymakers realize the importance of BoD characteristics in mitigating information asymmetry and improving corporate investment efficiency.

SAVILYDERYSTĖ JŪRŲ VERSLE: PASAULIETINĖS IR TRANSCENDENTINĖS VERTYBĖS

Self-leadership as self-directed leadership is based on the values of the whole person according to all his/her natural needs to strive not only for their sociobiological satisfaction, but also for God, a spirituality, nobility, higher meaning based on incomparable ideals. The pursuit of values is aided by following leaders, including clergy as moral authorities. This is especially necessary from a point of view of the special psychological experiences in the maritime business. The moral and business authority of the leader is valid for employees as the most important psychological support for their activities. Transcendental motivation is noble and very practical in all cases of professional and personal life. Ideally, becoming a leader is based on authentic following God as the great Leader. There are many opportunities to strengthen the self-leadership of maritime business participants on the basis of secular values. The difference is that parents, brothers or sisters, a friend, a clergyman, TV shows, and movies are more involved in the formation of sociocentric values. Parents, wife, familiar seafarer, teachers, board leaders or leaders in a port company, clergyman, TV shows, films, and NGOs are the most significant moral authorities for the transcendent values of maritime business participants.

Social determinants of the impact of hospital management boards on quality management: a study of 109 European hospitals using a parsonian approach

BackgroundThe consolidated framework for implementation research states that personal leadership matters in quality management implementation. However, it remains to be answered which characteristics of plural leadership in hospital management boards make them impactful. The present study focuses on social determinants of implementation power of hospital boards using Talcott Parsons’ sociological concept of adaptation, goal attainment, integration, and latency (AGIL), focusing on the G (goal attainment) and I (integration) factors of this concept. The study aims to test the hypothesis that hospitals with management boards that are oriented toward the quality goal (G) and socially integrated (I) (GI boards) are better at implementing quality management than hospitals with boards lacking these characteristics (non-GI boards).MethodsA cross-sectional mixed-method design was used for data collection in 109 randomly selected hospitals in seven European countries. Data is based on the study “Deepening our understanding of quality improvement in Europe” (DUQUE). We used responses from (a) hospitals’ chief executive officers to measure the variable social integration and the variable quality orientation of the board and (b) responses from quality managers to measure the degree of implementation of the quality management system. We developed the GI index measuring the combination of goal-orientation and integration. A multiple linear regression analysis was performed.ResultsHospitals with management boards that are quality oriented and socially integrated (GI boards) had significantly higher scores on the quality management system index than hospitals with boards scoring low on these features, when controlled for several context factors.ConclusionsOur findings suggest that the implementation power of hospital management boards is higher if there is a sense of unity and purpose within the boards. Thus, to improve quality management, it could be worthwhile to increase boards’ social capital and to increase time designated for quality management in board meetings.

Leading a Board of Directors in The United Kingdom: Indirect Leadership

In the UK context the chair is responsible for and represents the board, while the CEO is responsible for and is the public face of the company. Chairs are accomplished professionals with strong views, but they lead without taking up much space and avoid the limelight. They lead board members by engaging them in a collective effort, creating an environment for effective collaboration and encouraging productive behaviour by providing feedback and opportunities for both group and individual learning and development. They do not give orders or issue directives; instead they steer or nudge followers by setting agendas, framing discussion items, soliciting opinions, and seeking and providing feedback. They set clear expectations and establish rules, but in line with a cultural tradition the latter serve as guidelines rather than set-in-stone laws. During the COVID-19 crisis chairs of British boards demonstrated resilience, commitment and adaptability. They quickly moved their board meetings online, increased the frequency of board interactions and adjusted their agendas. In addition, chairs significantly increased their time commitment and made themselves available round the clock. At the same time most of them steered their boards away from interfering with the management’s job. UK chairs provide exemplary leadership by consistently displaying the attitudes and behaviour they expect others to follow. “Indirect” is probably the most accurate term to describe their leadership style. Board leaders in the UK learn from reflecting on their experience, exchanging with colleagues from other boards, participating in conferences and other learning events and reading specialist literature. They consider enable collective learning of the board one of their priorities and do it by conducting periodical board evaluation, organization reflection sessions, seminars and awaydays and engaging experts and consultants.The COVID-19 accelerated the adoption of technology by British boards. In the future a hybrid format whereby some meetings are held face-to-face and some online will become the norm. Board leaders will be kept busy by balancing increasing regulatory pressures with the need to address strategic issues in a fast-changing, turbulent world. Chairs will ensure that their boards spend more time on risk management, environmental issues and sustainability. Employee health will become an important item for board discussions. By the end of the next decade there will be more women (up to 20 percent) chairing British boards, but this will remain an area dominated by male ex-CEOs in their fifties and sixties.

Have women made gains in the top leadership positions at insurance companies?

Gender diversity on corporate boards and in other leadership positions is an area of concern for many global companies (Di Biase & Onorato, 2021; Doan & Iskandar-Datta, 2018). This paper updates and enhances an industry study “Women are making steady gains” (2018) that examined the state of gender diversity in the global insurance industry. We analyze trends to see if women have made any significant gains in board leadership, C-suite, and insider positions in insurance over time. Our sample covers 83 insurance companies as of 2021 and compares the gains from those made previously. Our results show a clear trend of improvement in gender representation in the board of directors and insider positions for firms in the insurance industry. However, the gains stop there, and unfortunately, no significant advancement for the percentage of women in the C-suite positions is evident in our dataset at this time. A meager 10% of all CEO and CFO positions in this sample of the insurance industry are held by females. Our research is important as it demonstrates which segments of the industry females are making gains and where we see deficiencies. We also suggest ways we feel future gains can be made.

The Effect of Strengthened Corporate Governance on Firm Performance in the United States

In response to the accounting scandals of the late 1990s, regulators adopted changes to corporate-governance rules in 2003 in an effort to restore investor confidence in the stock market. The purpose of this study is to determine whether the changes to board leadership structure imposed on U.S. companies affected firm performance as measured by operating return on assets. This study was conducted with a sample of 857 publicly traded companies listed on the New York Stock Exchange and 11,632 firm-year observations from the period 1997-2012. Using a difference-in-difference estimator and multivariate analysis, we found a positive and significant indication that changes to board leadership structure improved the long-run performance of firms that were previously insider controlled. Our study indicates that some firms were not ideally structured prior to 2003 when the changes in corporate-governance rules took effect for publicly traded companies listed on the New York Stock Exchange.

Does board leadership influence bank innovativeness in Kenya

Does board leadership influence bank innovativeness in Kenya

Does board leadership influence bank innovativeness in Kenya

Does board leadership influence bank innovativeness in Kenya

Early childhood music research, practice and policy: A COVID-19 collaboration

In response to COVID-19, various resources were disseminated to the music education community regarding research, practice and policy. Few of those resources, however, included implications for early childhood music learners and educators. Therefore, the purpose of our piece was to describe how a group drawn from the leadership boards of NAfME’s Early Childhood Music Special Research Group, Early Childhood Music & Movement Association and the editorial board of the International Journal of Music in Early Childhood gathered, created resources and participated in ongoing research projects.

Boards' relevant experience and international strategy: A recipe for success or a case of too many cooks?

AbstractResearch SummaryBoard scholarship has generally taken the perspective that when it comes to board expertise, more is better. This study, in contrast, explores contingencies that may stretch board experience beyond the limits of its usefulness. We integrate insights from extant research in board leadership and international strategy to identify and test internal and external contextual factors that can limit the effectiveness of boards' international experience. Exploring this in the context of cross‐border M&As, we find evidence that the positive effects of boards' international experience are attenuated when the CEO lacks such knowledge, and when the institutional distance between the home and target countries is high. Overall, our findings suggest the need to exercise caution in viewing board expertise as a “panacea” of board effectiveness.Managerial SummaryBoards are generally viewed as experts that CEOs can look to for advice when formulating corporate strategy. Accordingly, the predominant view has been that the more relevant expertise on the board, the better the strategic advice they can offer. The results of our study, however, suggest that is not always the case. As it pertains to cross‐border M&As, in order to get the maximum benefit from boards' international experience, CEOs must have enough international experience of their own, and the institutional environment of the target firm's country must not be too dissimilar from the acquiring firm's home country. Otherwise, it is possible that the boards' international experience will be stretched beyond its strategic usefulness.

Leadership and Governance in Times of Crisis: A Balancing Act for Nonprofit Boards.

How has the COVID-19 pandemic impacted the roles of nonprofit boards? We reflect critically on the leadership and management activities of boards to understand the implications of the current crisis on governance. Employing a contingency approach to governance, we present a model of boards of directors’ leadership and management roles under four governance configurations as organizations navigate through the stages of the pandemic. We suggest that organizations with governance configurations that are more suited to predictable environments will generally experience greater shifts between management and leadership activities as they move through the stages of the COVID-19 crisis.

How Are Company Size, Financial Performance and Corporate Governance Related to Directors' Remuneration?

This study examined the relationship between the company-specific characteristics, namely, company size, company performance, and company leverage and the corporate governance attributes of a company which includes CEO duality and remuneration committee independence as the predictor factors that determine directors’ remuneration. A sample of 260 public listed companies on Bursa Malaysia was selected using stratified random sampling for the financial reporting of 2018. All data concerning the company characteristics and corporate governance attributes were obtained from the annual reports of the companies, which can be accessed from the Bursa Malaysia website. Pearson correlation and multi-regression analysis were used to analyse the data to determine the relationship of the predictor variables with director remuneration. On the one hand, the results of the study showed that directors’ remuneration is positively and significantly related to the size of the company. On the other hand, the financial performance of a company is positively but weakly related to directors remuneration. The remaining predictors have no relationship with directors’ remuneration. The finding suggested that the key determinant factor of directors’ remuneration is company size whereas company performance may have a small impact. Lastly, company compliance with the recommendation of the Malaysian Code on Corporate Governance did not guarantee the effectiveness of the monitoring function of the remuneration committee in ensuring that directors’ remuneration is commensurate with company performance. The result of the study provides additional evidence and support that company size and financial performance are linked to director remuneration. Also the finding of the study reconfirmed prior study that board leadership structure (CEO duality) and remuneration committee independent have no impact on directors’ remuneration.

Independent Directors, Board Leadership Structure and Corporate Financial Performance: Evidence from Jordan

Independent Directors, Board Leadership Structure and Corporate Financial Performance: Evidence from Jordan

Editorial introductions

Editorial introductions

The Senior Independent Director’s Evolving Role Across the Top 100 Malaysian PLCs: MCCG 2012 vs MCCG 2017

Purpose - This research aims to investigate the impact of the two main problems of Senior Independent Director’s evolving role, which includes the aspects under board leadership and board effectiveness proposed under the Malaysian Corporate Governance Code (Code) in contrast between 2012 and 2017 towards firm financial performance.Design/ methodology approach - For this analysis, a target list of the top 100 PLCs based on market capitalization was gathered from 784 Malaysian PLCs as of 14 August 2020. In the annual review of corporate reports, this research involves mean and standard deviation, analysis of the correlation and analysis of the materials published within the annual reports.Originality - This report is a comprehensive examination of the recent developments in Corporate Governance research in comparison between the Code in 2012 and 2017, which is also applicable to other PLCs other than the top 100 Malaysian PLCs scoring indices designed for the Senior Independent Director – Board Effectiveness and Board Leadership.

Women on board and auditors’ assessment of the risk of material misstatement

This paper considers the role of female directors’ statutory and demographic attributes in examining the relationship between the presence of women on board and auditors’ assessment of the risk of material misstatement. Using a sample of French listed companies between 2002 and 2010, we find that presence of women on board is negatively related to auditors’ assessment of the risk of material misstatement, but this relationship becomes positive when female directors’ attributes are included in regression analyses. These results suggest that attributes have a substantial effect on the relationship between female directors and auditors’ assessment of the risk of material misstatement. In particular, we find that female directors’ audit committee memberships, financial expertise, and experience reduces the risk of material misstatement. However, board leadership by women is not associated with auditors’ assessment of the risk of material misstatement. Finally, our findings have important implications for legislators’ and policymakers’ understanding of the importance of female directors’ attributes and skill sets while promoting gender diversity on corporate boards.

Looking Beyond the Horizon: A Vision for Association for Vascular Access's Future

Looking Beyond the Horizon: A Vision for Association for Vascular Access's Future

Author Biographies

Author Biographies