Board Of Directors Research Articles

Beyond the Elite: Corporate Directors and Their Networks in Britain, ca. 1880s–1910s

Beyond the Elite: Corporate Directors and Their Networks in Britain, ca. 1880s–1910s

Exploring the United Nations Global Compact adoption in a multi‐level perspective

AbstractFrom a multi‐level perspective, we aimed to identify the drivers of United Nations Global Compact (UNGC) adoption. On a micro‐level, the Resource‐Based View theory allowed us to discuss how the firm's internal environment influences its adoption. At the macro‐level, we focused on the Varieties of Capitalism approach. Hence, the meso‐level mediated the interaction between the other two levels, in which the Upper Echelons Theory could predict how some board characteristics influence UNGC adoption. Data from 1773 companies headquartered in countries with coordinated and liberal economies were analyzed by multivariate analysis. The empirical results presented evidence that company size, the size of the board of directors, and the type of capitalism that the country follows positively affect UNGC adoption. In conclusion, three characteristics matter for UNGC adoption. Larger boards tend to influence the adoption of the UNGC, showing that a greater diversity of board members' backgrounds can bring results regarding social and environmental issues.

Bridging sentiment and finance: An exploration of BOD statements and bank ratios in Jordan

Purpose: This study explores the intricate interplay between sentiment extracted from Board of Directors (BOD) statements and the traditional financial metrics of banks. It investigates the relationship between a bank’s financial performance, measured by various financial ratios, and the sentiment expressed in BOD statements.Design/methodology/approach: Drawing from a dataset encompassing BOD statements from 15 Jordanian banks spanning 2017 to 2021, sentiment analysis techniques are employed to derive sentiment scores. These scores are then juxtaposed with principal components distilled from financial metrics to examine their predictive relationship.Findings: Preliminary findings reveal significant non-linear patterns between Hu and Liu’s (2004) sentimental analysis (Lui_sen), the Data Science Lab’s (n.d.) multilingual sentiment tool (multi_sen), and the principal components. A subsequent random-effects panel regression further elucidates these relationships, highlighting the significant influence of specific principal components on sentiment scores. This study provides a compelling case for integrating sentiment analysis with traditional financial indicators, offering a more comprehensive toolkit for evaluating bank performance.Research limitations/implications: Future research should explore broader datasets across multiple sectors, to validate the generalisability of the findings beyond the banking sector in Jordan.Practical implications: This research holds implications for investors, analysts, and stakeholders by combining sentiment analysis with traditional financial metrics. It offers deeper insights into the health of banks and the intentions of management. This integrated approach allows stakeholders to make informed decisions and mitigate risks based on a more comprehensive view of banks' financial situations. Additionally, the possibility of real-time sentiment analysis enables the dynamic monitoring of banking institutions' financial health as updated data becomes available.Social implications: The study’s results are valuable to users of financial information, aiding the Association of Banks and the Central Bank of Jordan in formulating policies for the banking sector. Auditors, consultants, and regulatory bodies in Jordan can also benefit from these insights.Originality/value: This is the first study exploring the relationship between sentiment extracted from BOD statements and traditional financial metrics in Jordan. It provides novel evidence of this relationship, contributing to the literature on the integration of textual data analysis and financial performance.

Female leadership and financial sustainability of MFIs: the moderating role of female borrowers

PurposeThe purpose of this study was to investigate whether the percentage of female borrowers moderate the effect of female leadership on financial sustainability of microfinance institutions (MFIs).Design/methodology/approachThe study collected an unbalanced panel data of 821 MFIs between 2007 and 2018 from the Microfinance Information Exchange (MIX). MFIs’ financial sustainability was measured as operational self-sufficiency (OSS). The data were analyzed using the fixed effect regression model.FindingsThe study found that having women participation in managerial and board positions has a positive effect on OSS. The results further demonstrated that the proportion of female loan officers and female borrowers had a negative effect on OSS. In addition, the study’s findings revealed that the percentage of female borrowers moderated the relationship between female board members, female managers, female loan officers and OSS.Practical implicationsThese findings may offer important insights to policymakers and practitioners in formulating strategies to improve financial inclusion for women by examining the inherent link between female borrowers and women’s participation in leadership roles within MFIs, which affects the financial sustainability of these entities.Originality/valueThis study is among the few that have examined the interaction between the proportion of female borrowers and other forms of female participation, including loan officers, managers and board members, and its effect on the financial sustainability of MFIs.

Strategi Pemasaran Air Minum dalam Kemasan di Pondok Pesantren Riyadhus Samawi

In general, some of the community's drinking water needs can be sourced from well water and water that has been treated by the Regional Drinking Water Company (PDAM). However, the increasing demand for drinking water sometimes cannot be met by well water sources or water that has been treated by PDAM. Along with technological advances, accompanied by increasingly busy community activities today tend to choose a more practical way at a relatively low cost in meeting drinking water needs. One of the alternative ways to fulfill drinking water needs is by using mineral water products. Marketing is a process of preparing integrated communication that aims to provide information about goods or services in relation to human needs. The marketing carried out at the Riayadus Samawi Islamic Boarding School is still very simple, namely from word of mouth to the congregation. So that Yarisa Drinking Water has not been sold widely like bottled drinking water in general because the majority of consumers are still worshipers and the neighborhood around the cottage. The purpose of this community service is to contribute thoughts and training, especially to the manager of Yarisa drinking water regarding the importance of analyzing marketing strategies for a company in an effort to market its products so that these products can be accepted by the public and distributed widely. The PKM process carried out at the Riyadus Samawi Ludoyo Blitar Islamic Boarding School consists of three stages, including: first, problem identification with a study carried out by the PKM team, Yarisa drinking water managers, cottage administrators, cottage caregivers, and cottage owners to find out the quality and development of Yarisa drinking water marketing strategies. The second stage is the implementation of PKM by holding a seminar with the theme “Marketing Strategy for Bottled Drinking Water at Riyadus Samawi Islamic Boarding School” and attended by Yarisa drinking water managers and students and board members. The third stage is monitoring and evaluation of whether the bottled drinking water marketing strategy delivered by the PKM team has been implemented in Yarisa drinking water. The results of this PKM are socialization and assistance regarding bottled drinking water marketing strategies and making several marketing and motivational programs so that in the future Yarisa drinking water owned by Riyadus Samawi Islamic Boarding School can be marketed widely.

The effect of board of directors attributes, environmental committee and institutional ownership on carbon disclosure quality

AbstractThis study assesses the effect of the board of directors' attributes, environmental committee (EC), and institutional ownership (IO) on carbon disclosure quality (CDQ) from the perspectives of legitimacy and agency theories in Malaysia. This study collects and analyzes data based on 1000 observations of firms from carbon‐intensive industries from 2015 to 2019. The effect of the board of directors' attributes, EC, and IO on the CDQ was observed using a panel data regression model. The study revealed a significant positive relationship between board independence, board size, female representation, EC, IO, and CDQ. These findings suggest that carbon disclosure awareness is rising in Malaysia as firms have gradually integrated corporate governance (CG) best practices into their business strategies. To the best of our knowledge, this is the first study to examine the factors that influence CDQ in Malaysian businesses. This study identified firms with a higher CDQ using a new global reporting initiative‐based carbon reporting index. This expands the literature on carbon disclosures. This study focuses on carbon‐intensive industries, which might not reflect Malaysia's current CDQ situation. Thus, future research should focus on other sectors to fully grasp the current state of the CDQ in Malaysia and offer new perspectives on emerging markets. The findings may benefit a vast group of regulatory bodies in assessing Malaysian firms' responses to local and international carbon guidelines.

Climate board governance and carbon assurance – European evidence

Purpose This paper aims to investigate the effect of climate board governance based on (1) carbon change committees, (2) critical mass of female board members and (3) carbon-related executive compensation, on the voluntary implementation and quality of carbon assurance. Design/methodology/approach Using stakeholder and critical mass theories, 978 firm-year observations for European Union firms for the 2017–2021 period are collected. Climate board governance and carbon assurance proxies come from the Carbon Disclosure Project. Findings Correlation and logit regression analyses show that climate board governance significantly improves carbon assurance (quality). The findings are robust to various robustness and endogeneity checks and are of great importance for researchers, regulators and business practice. Originality/value This analysis mainly contributes to previous studies by using a combined sustainable board governance score as a major driver of corporate carbon assurance practices for the first time.

The 2023 revised diagnostic criteria for IgG4-related dacryoadenitis and sialadenitis.

For the diagnosis of IgG4-related dacryoadenitis and sialadenitis, either revised comprehensive diagnostic criteria or organ-specific diagnostic criteria for IgG4-related dacryoadenitis and sialadenitis in 2008 were applied; however, the collected knowledge for IgG4-related dacryoadenitis and sialadenitis required us to revise the criteria for IgG4-related dacryoadenitis and sialadenitis. The board member of Japanese Study Group for IgG4-related Dacryoadenitis and Sialadenitis revised the diagnostic criteria for IgG4-related dacryoadenitis and sialadenitis. We collected the clinical questions to be revised and performed a review of the literature. When the data were insufficient, additional data collection was performed. After the revision, public comments were collected. The three major points were revised. 1. Asymmetric or under two pairs of dacryoadenitis and sialoadenitis were included as IgG4-related dacryoadenitis and sialadenitis. 2. The thresholds of IgG4-positive cell infiltration were adjusted to an IgG4+/IgG+ ratio >0.4 and IgG4+ cells >10 per high power field. 3. The labial salivary gland biopsy was allowed to diagnose IgG4-related dacryoadenitis and sialadenitis. The revised diagnostic criteria for IgG4-related dacryoadenitis and sialadenitis solved several issues with the previous criteria. It will improve the early diagnosis of IgG4-related dacryoadenitis and sialadenitis, especially in situations without enough resources for a biopsy.

The effect of corporate governance attributes on human capital disclosure in South Africa

The disclosure of human capital (HC) information in corporate reports continues to be at the centre of discussions in the executive boardroom. Currently, standard setters grapple with implementing uniform disclosure requirements for human capital disclosure (HCD) and as a result this information is scant, erratic, and inconsistently reported. Hence the ISO 30414 was introduced to breach this gap. The aim of the study is to critically examine how corporate governance attributes affect HCD. A quantitative based cross-sectional design was followed using a sample of top 100 companies listed on the Johannesburg Stock Exchange (JSE). The ISO 30414 HR reporting framework containing 48 metrics was utilised to construct an assessment instrument with a 7-point scale to assess the extent of HCD. Overall, board meeting attendance yielded positive statistically significant association with HC information disclosed on recruitment, retention rate, turnover rate, internal mobility rate, competency rate, employee value-added, absenteeism rate. The board of directors play a critical role in improving the disclosure of HC information in the integrated reports. The study provides first empirical evidence on the impact corporate governance attributes have on HCD using the ISO 30414 HR reporting framework.

Corporate tax avoidance and narrative disclosure tone: a developing country perspective

Purpose This study aims to examine the link between tax avoidance, corporate governance and narrative disclosure tone using a sample of public companies in Pakistan. Design/methodology/approach Data for 125 companies listed on the Pakistan Stock Exchange (PSX) are collected over 10 years from 2011 to 2020. Sentiment analysis is conducted to determine the disclosure tone, and regression analysis is used to test the association between the variables. Findings This paper finds that firms that engage in tax avoidance tend to use a more positive disclosure tone and are more likely to engage in impression management. Moreover, promoting sound governance through board independence and gender diversity is associated with a less positive disclosure tone. However, firms with more family board members and higher foreign ownership are more likely to use a more positive disclosure tone. Practical implications Regulators can use this information to develop better guidelines to protect investors and ensure faithful disclosures to address both positive and negative news. Originality/value The study contributes to the literature by examining corporate tax avoidance as a determinant of narrative disclosure tone, a relationship that has not been widely explored. Moreover, as most disclosure tone research has been conducted in developed countries, this paper provides valuable evidence from a developing country.

Supporting preservice teachers to navigate the tensions of teaching English Language Arts: An examination of two teacher educator's literacies pedagogies

In 1997-1998, we taught in the same independently funded elementary school. As teachers of Grade 1 and Grade 2, the school leadership asked us to research and recommend a program to support early reading instruction and replace the outdated basal readers. Opinions were sometimes diverse as we met with parents and school board members to identify beliefs/priorities in early reading instruction. More than 25 years later, in our work as teacher educators in two provinces, we are embroiled in similar conversations about reading instruction in a field mapped by polarizing views expressed in reports, social media, and teacher professional texts. As teacher educators, we recognize: 1) this context as challenging for preservice teachers to enter professional practice and 2) our role in supporting preservice teachers in entering the field. This was the impetus for a research study examining our pedagogies. We ask: How are we, as teacher educators, supporting preservice teachers to navigate the theoretical and practical tensions of teaching Language Arts through our pedagogies? In this article, we share findings from a collaborative Self-Study of Teacher Education Practice (S-STEP) where we leverage our long-standing relationship as critical friends in research/teaching to examine our teacher education pedagogies in our elementary English Language Arts courses in 2022-2023. Data sources include teaching artifacts (e.g., syllabi, powerpoints, activities) and videorecordings of discussions as we share these artifacts over Zoom. Guided by posthuman perspectives, we consider the non-human and human entities that were a part of our pedagogies. Analysis is currently underway. Preliminary findings suggest a shift from sharing particular practices with each other to a focus on decision-making to support preservice teachers in weighing the desires of teaching practices in literacies as well as diffusing binaries. This article highlights teacher education practices as relational and moving in response to context.

Moving at the Speed of Business: A Possible Path to First Nation Prosperity Starts with Efficiency

First Nation economic self-determination strategies are constrained by high investment facilitation transaction costs and high jurisdictional implementation switching costs. This paper summarizes a First Nation-led strategy to overcome these constraints. This strategy, which began 55 years ago, uses federal legislation such as the First Nations Fiscal Management Act (FMA) and the Framework Agreement on First Nations Land Management (FA). It is supported by First Nation institutions such as the First Nations Tax Commission, First Nations Financial Management Board, First Nations Land Management Resource Centre, First Nations Finance Authority, and the newly established First Nations Infrastructure Institute. Preliminary observations suggest the FMA-FA strategy has successfully reduced transaction and switching costs on First Nation lands and could accelerate economic self-determination for interested First Nations.

Frontier AI developers need an internal audit function.

This article argues that frontier artificial intelligence (AI) developers need an internal audit function. First, it describes the role of internal audit in corporate governance: internal audit evaluates the adequacy and effectiveness of a company's risk management, control, and governance processes. It is organizationally independent from senior management and reports directly to the board of directors, typically its audit committee. In the Institute of Internal Auditors' Three Lines Model, internal audit serves as the third line and is responsible for providing assurance to the board, whereas the combined assurance framework highlights the need to coordinate the activities of internal and external assurance providers. Next, the article provides an overview of key governance challenges in frontier AI development: Dangerous capabilities can arise unpredictably and undetected; it is difficult to prevent a deployed model from causing harm; frontier models can proliferate rapidly; it is inherently difficult to assess frontier AI risks; and frontier AI developers do not seem to follow best practices in risk governance. Finally, the article discusses how an internal audit function could address some of these challenges: Internal audit could identify ineffective risk management practices; it could ensure that the board of directors has a more accurate understanding of the current level of risk and the adequacy of the developer's risk management practices; and it could serve as a contact point for whistleblowers. But frontier AI developers should also be aware of key limitations: Internal audit adds friction; it can be captured by senior management; and the benefits depend on the ability of individuals to identify ineffective practices. In light of rapid progress in AI research and development, frontier AI developers need to strengthen their risk governance. Instead of reinventing the wheel, they should follow existing best practices. Although this might not be sufficient, they should not skip this obvious first step.

Study Report on Optimum Utilisation Plan of Ngoma 22 Irrigation Scheme

The study was conducted in Ngoma 22 irrigation scheme located in Remera and Rurenge sectors of Ngoma District in Eastern Province of Rwanda between November 2018 and January 2019. It was recommended by RAB Board of Directors. The methodology used encompasses the study area, sampling procedures, data collection and analysis tools. The main data collection tool used was FGD which targeted site agronomists and household head farmers producing rice, fruits and vegetables as high value crops in the scheme area. Through pair wise ranking technique most profitable cash crops in the scheme were ranked as follows: (1) tree tomato, (2) maracuja, (3) egg plants, (4) water melon, (5) tomato, (6) irish potatoes, (7) french beans, (8) onions, (9) carrots, (10) cabbages, (11) beetroots. From this point of views, findings from the study show only two most profitable crops: maracuja with 696 Frw/kg followed by tree tomato with Frw 249 Frw/kg. The third ranked cash crop being Irish potato (with a loss of -40 Frw/kg), the fourth is egg plant with a loss of- 177 Frw. The existing paddy rice production has shown a loss of – 270 Frw inspite the water availability all the year-round. Maize and bush bean show respectively losses of -543 Frw/kg and -1743 Frw. Hence it is understandable why farmers in the scheme area have already abandoned maize and beans cultivation. Findings show also water fees (20,000 Frw/season) determined based on maintenance costs and farmers income. For capacity building model, more than one thousand beneficiary farmers in Ngoma 22 Irrigation Scheme need strong farmer organisation for ownership of the scheme and increased profitability. To that effect, they need continued capacity building as stated in the tripartite IMTA: administrative and financial management, record keeping, and conflicts resolution management, integrated water management, operation and maintenance of irrigation infrastructures, best agricultural practices for sustainable farmers’ organisations and commercial farming. Key recommendations include fixing minimum prices for agricultural products in relation to costs of production- or setting subsidy prices, increase yield for each crop by meeting all requirements: lime, fertilisers and improvement of irrigation technologies in order to reach automatically increased yield. Farmers should continue to leave out traditional crops and adopt profitable cash crops identified in this study (e.g maracuja and tree tomato). They should also increase the ownership spirit through IWUA and cooperatives performance. They should adopt collective marketing of their products and pay water fees per season.

Dental teachers' perceptions about the status of geriatric dentistry in the dental curriculum: A qualitative exploration in the Indian context.

The increasing geriatric population in India needs special attention from the oral health workforce. This study explores dental teachers' perceptions of the status of geriatric dentistry in the dental curriculum and the challenges of implementing geriatric dentistry curriculum in the present dental training sector in India from the trainers' (teachers) perspective. We utilised a qualitative approach, and four focus group discussions were conducted with/among various levels of academic teachers-Heads of Departments (n = 8), Board of Study members (n = 7), Deans (n = 5), Lecturers and Associate professors (n = 8). All discussions were audio-taped and transcribed. Data was analysed thematically, and coding was done using an inductive approach. Consensus on themes was achieved through deliberations. Three themes were identified-Unique challenges in managing geriatric patients (bordering on Dental care, Attitude, Awareness, Social issues and dependency on family); Current issues with provision of geriatric care (Curricular concerns-Teachers' training, Students' training, Instructional content, timing of delivery; Students' and trainers' attitudes; Infrastructural issues) and Strategies for advancement (Sensitisation of policymakers, Collaboration with other agencies, Modification in course design, Improved educational strategies and Shift in patient care delivery). Trainers perceived a strong need to develop geriatric competencies among dental students. A geriatric dentistry curriculum based on local needs could ensure the success and sustenance of change. Introducing specialisation in geriatric dentistry would ensure quality oral care for the rising geriatric population. Innovative teaching strategies, interdisciplinary training and the use of newer technologies could aid in improved teaching of geriatric dentistry.

Analysis of the Effect of Good Corporate Governance Mechanisms and Financial Performance on the Disclosure of Sustainability Reports with Firm Size as a Moderating Variable in Banking Companies Listed on the Indonesia Stock Exchange 2017-2022

The purpose of this study was to test and analyze the effect of Good Corporate Governance (GCG) and others: managerial ownership, number of Board of Commissioners and Audit Committee, and Financial Performance, which included ROA and ROE on company sustainability in banking sub-sector companies listed on the Indonesia Stock Exchange. In addition, this study also aims to determine whether the firm size can be used as a moderation variable to strengthen or weaken the relationship between good corporate governance (GCG) and the financial performance of the company's sustainability. This research is a type of quantitative research with a descriptive approach. Purposive sampling techniques were used from 47 banking companies in the IDX, and 19 banks were included in the research sample within 6 years of the period. The data used are secondary data and data collection methods, accessed by accessing the IDX's 2017-2022 annual report. The results of this study show that good corporate governance (GCG) has no significant effect on sustainability. The audit committee has no significant effect on sustainability reports. Managerial ownership has a significant effect on sustainability reports, independent commissioners have no significant effect on sustainability reports, the Board of directors has no significant effect on sustainability reports, and financial performance has a significant effect on sustainability reports, where ROA and ROE have a significant effect on sustainability reports. Firm size can moderate the influence of GCG and financial performance with sustainability reports. Keywords: good corporate governance, audit committee, board of commissioners, managerial ownership, financial performance, ROA, ROE, sustainability report, and firm size

The effect of board of directors’ characteristics on disclosing tone in the annual reports: evidence from Amman stock exchange

PurposeThis study examines the impact of board characteristics (i.e., board independence, board size, number of board meetings, foreign directors, and representation of females on the board of directors) on the tone disclosed in the banks’ annual reports of the Jordanian banking industry.Design/methodology/approachThe sample of this study contains all banks in the Jordanian banking industry for the period 2010–2019. This study employs a quantitative research method to examine the impact of the board of directors' characteristics on the tone of disclosure. Although disclosure tone is qualitative information, it has been converted into numbers (the frequency of positive and negative words) using the NVivo program. The "tone" is measured in this study based on lists of positive and negative words developed by Loughran and McDonald’s list. Then, a pooled regression analysis is used to investigate whether the board of directors' characteristics affect the disclosure tone.FindingsThe study results show that corporate governance plays a significant role in disclosing tone in banks’ annual reports. Clearly, the results show that the number of board meetings positively impacts the emergence of tone disclosure. In addition, the presence of women on the board of directors positively impacts the tone disclosure. In contrast, the foreign directors’ existence on the board of directors has a negative effect on the tone disclosure. However, the results show no relationship between board independence, size, and tone disclosure.Originality/valueThis study contributes by providing knowledge and insights into tone disclosure in an emerging market. Based on signaling theory, tone disclosures are the mangers’ signals given to the stakeholders in their firms’ financial reports. Managers disclosing positive tones to convey good news to their stockholders, and this considered as one of the main targets for these managers. This study provides insights into the relatively under-researched area of disclosure tone in an emerging market. It sheds light critically on how board of directors’ characteristics within the banking industry in Jordan contributes to their disclosure tone in the annual reports. This contribution helps stakeholders including policymakers, CEOs, and capital market participants understand how board members’ characteristics can contribute in building a straightforward disclosure tone in their financial reports. The study's conclusions are particularly significant because they attest to the need for financial knowledge and diversity of gender. The tone disclosure presented in financial reports, along with its anticipated impact on future investor decisions, is a crucial aspect for stakeholders to comprehend.Practical implicationsOur findings suggest that banks in Jordan should carefully consider the characteristics of their boards of directors, as these are crucial to ensuring transparency in disclosures. Additionally, maintaining a consistent and clear tone in annual reports is vital, as it significantly influences investor confidence and interest. This transparency can be strengthened by the quality and effectiveness of the bank's directors.Recommendations/future researchFor future research, the current study results can be reinvestigated to other emerging countries, other sectors, other measures for the disclosure tone and the board of directors’ characteristics, and more important different periods to include the effects of COVID-19 pandemic and financial crisis.

Motherhood enrichment in leadership: exploring top female executives in Spain

PurposeExisting research suggests motherhood hinders women’s advancement to top management roles, but its specific influence on women who have achieved senior leadership is unexplored.Design/methodology/approachThis research uses a qualitative approach based on 34 in-depth, semi-structured interviews with Spanish female executives who hold board positions or have the potential to become board members in male-dominated industries.FindingsThis study identifies motherhood as a key driver in career growth, countering the view of it as a barrier. Narratives from female leaders revealed that motherhood did not impede their careers, challenging the “motherhood penalty” notion. We introduce the concept of “motherhood enrichment,” highlighting its positive impact on leadership skills and career progression in top executive roles.Practical implicationsThese findings can challenge prejudices about the negative impact of motherhood on women’s careers and support policies promoting work–life balance and family-friendly cultures in organizations.Originality/valueThis study suggests the “motherhood-work enrichment” (MWE) concept in leadership, recognizing motherhood as a catalyst for leadership qualities and offering a preliminary theoretical model to explain MWE in the context of concurrent mother-top manager roles.

GRI guidelines in developing countries: uncovering the antecedents and consequences

Purpose Framed under the upper echelons theory, the purpose of this paper is to examine the effect of board characteristics on the adoption of the global reporting initiative (GRI) guidelines for corporate disclosure and, consequently, their effect on the company’s market value. Design/methodology/approach To achieve the research objective, the authors investigated the impact of certain important board characteristics, such as board independence, size, gender diversity and director skills. The authors examined the adoption of GRI guidelines by 371 companies based in Latin America. Using logistic regression and panel data analysis, the authors tested five hypotheses. Findings The findings can confirm the upper echelons theory, showing that directors have an important role in determining environmental policies and strategies in their companies. The authors confirm that three characteristics affect GRI adoption in Latin America: independence, gender diversity and skills of board directors. The authors also found that companies that adhere to the GRI tend to perform better in terms of market capitalization. Practical implications Managers who want their organization to perform better in terms of GRI disclosure must understand that characteristics such as board independence, gender diversity and directors’ skills play a significant role in the company adopting the GRI for corporate disclosure. Furthermore, managers must be aware that by adopting the GRI, the company increases its market value through market capitalization. Originality/value The literature is still unaware of how the adoption of GRI can bring financial returns to organizations that adopt this type of standard to disclose their corporate reports. To the best of the authors’ knowledge, this is the first empirical paper to investigate the antecedents and consequences of GRI adoption in Latin America.

How Does Shareholding by Passive Institutional Investors Impact the Corporate Governance of European Firms?

ABSTRACTResearch Question/IssueThe passive investment (PI) trend, characterized by the increasing inflow of investment funds into PI strategies, has resulted in an increase in the share of corporate ownership held via investments in PI strategies. This paper investigates this trend's consequential impact on European companies' corporate governance (CG).Research Findings/InsightsWe find that higher ownership by passive institutional investors (PIIs) is associated with fewer female directors, reduced independence in audit and nomination committees, and higher executive pay, negatively impacting CG. Nevertheless, our findings show that PIIs can increase the probability that a company has a policy regarding the adequate experience of board members and equal treatment of shareholders.Theoretical/Academic ImplicationsWe hypothesize that the level of ownership could be the missing link connecting mixed theories about the impact of ownership by PIIs on the CG of companies they invest in. A curvilinear relationship between the two could allow conflicting theories to coexist in one framework. We find weak evidence for a curvilinear relationship, but this relationship may become more prevalent if PII ownership of European companies increases because of regulatory changes.Practitioner/Policy ImplicationsSome critics have proposed limiting PII voting rights, but our findings suggest that the effect of PII ownership may become less negative beyond a certain level of ownership and that PIIs may play a positive role in enhancing board experience and shareholder equity policies. Restricting PIIs may not necessarily be beneficial for the CG of companies they invest in.