Board Nominations Research Articles

The journey to building a diverse, equitable, and inclusive American Medical Informatics Association.

The American Medical Informatics Association (AMIA) Task Force on Diversity, Equity, and Inclusion (DEI) was established to address systemic racism and health disparities in biomedical and health informatics, aligning with AMIA's mission to transform healthcare. AMIA's DEI initiatives were spurred by member voices responding to police brutality and COVID-19's impact on Black/African American communities. The Task Force, consisting of 20 members across 3 groups aligned with AMIA's 2020-2025 Strategic Plan, met biweekly to develop DEI recommendations with the help of 16 additional volunteers. These recommendations were reviewed, prioritized, and presented to the AMIA Board of Directors for approval. In 9 months, the Task Force (1) created a logic model to support workforce diversity and raise AMIA's DEI awareness, (2) conducted an environmental scan of other associations' DEI activities, (3) developed a DEI framework for AMIA meetings, (4) gathered member feedback, (5) cultivated DEI educational resources, (6) created a Board nominations and diversity session, (7) reviewed the Board's Strategic Planning for DEI alignment, (8) led a program to increase diversity at the 2020 AMIA Virtual Annual Symposium, and (9) standardized socially-assigned race and ethnicity data collection. The Task Force proposed actionable recommendations that focused on AMIA's role in addressing systemic racism and health equity, helping the organization understand its member diversity. This work supported marginalized groups, broadened the research agenda, and positioned AMIA as a DEI leader while reinforcing the need for ongoing transformation within informatics.

CRITICAL FACTORS AFFECTING THE SUCCESS OF SHARI‘AH GOVERNANCE: INSIGHTS FROM ISLAMIC FINANCIAL INSTITUTIONS

This study examines the critical role of Shariah governance, particularly the impact of Shariah supervisory boards (SBBs) within the corporate governance framework of Islamic financial institutions (IFIs). SSBs, as critical components of Shariah governance mechanisms, significantly influence Shariah compliance processes within IFIs. This study explores the unique systemic risks inherent in the Islamic financial environment, focusing on the complexities and elements defining SSB legitimacy. The IFSB recommends four essential components for Shariah governance systems, emphasizing the importance of SSBs. However, SSBs face challenges balancing SharÊ‘ah adherence and market dynamics, highlighting a conflict between business objectives and Shariah rules. This study acknowledges the limited strength of Shariah governance, advocating for universally adopted standards to address issues such as conflicts of interest within SSBs and the need for diversified skill sets. This paper assesses the effectiveness of Shariah governance and SSBs in IFIs. For this purpose, a survey was conducted among middle and senior-level managers and employees employed in IFIs or associated regulatory entities across diverse nations. The results highlight the critical role of SSB members, specific standards for board nominations, and the moderate influence of stakeholders' interests on Shariah governance success. Shareholders’ and customers’ interests show no significant correlation with Shariah governance success.

Guide Board Nominations Committee's Efforts

Guide Board Nominations Committee's Efforts

Debate: Board nominations of MOCs—Does politics come before expertise?

Debate: Board nominations of MOCs—Does politics come before expertise?

What motivates independent directors to join or leave boards? The interplay between director incentives, director decisions, and firm outcomes

AbstractReputation, monetary, risk, and workload incentives affect independent directors' decisions to join new or leave existing board of directors' seats, impacting their directorship portfolios. Using a director's perspective and relative incentive proxies, we find that directors strategically relinquish less prestigious board seats to increase their reputation. Similarly, we hypothesize and find that accepting an additional board nomination is incentivized by a director's goal to achieve higher reputation growth. Lastly, by taking on a firm's perspective, we find a positive association between the board's aggregated portfolio reputation and risk propensity with firm performance and earnings management.

Selecting Nomination Committee Members—Stakeholders’ Perspective

Sustainability is a critical issue for businesses today, and corporate boards and nomination committees play a vital role in promoting sustainable practices within organizations. Nomination Committees (NCs) have become important mechanisms for what has been coined as good or sustainable governance. Stakeholders, however, have different opinions on the merits of these committees. Amongst other things, there is disagreement about whom to select for NCs and the criteria for selection. The composition of NCs can influence board nominations and determine whether the necessary knowledge and skills reside within a board to deal with sustainability and good corporate governance. The aim of this research is to provide insights into stakeholders’ perspectives on what matters when profiling nomination committees’ members. The literature on NCs is underdeveloped, and this research importantly addresses the issue by interviewing 13 individuals who are either shareholders, board members of listed companies, or members of NCs. Additionally, a questionnaire was sent to shareholders, board members, and NC members of the 300 largest companies in Iceland. A total of 138 responses were received. The results show that stakeholders believe it is important to decide upon an NC’s composition prior to electing its members. NC members should have either management or board membership experience. Diversity within the committees is also seen to be important, as it can influence diversity and inclusion overall at the board level. These research results provide important insights and understanding for shareholders and boards of directors when composing nomination committees.

Board Effect and the Moderating Role of CEOs/CFOs on Corporate Governance Disclosure: Evidence from East Africa

Synopsis The research problem This study examines the effects of board size and board independence, as well as the interaction effect between board independence and CEOs/CFOs on corporate governance disclosure practices. Motivation Despite corporate governance (CG) reforms around the world, research evidence indicates that the levels of corporate governance disclosures (CGDs) in developing countries remain poor due to weak institutions and corporate governance systems. In particular, the corporate boards as a key mechanism of CG and the board nomination processes in East Africa remain largely opaque and dominated by majority shareholders, chief executive officers, and chief finance officers (CEOs/CFOs), giving rise to opportunistic behaviors that may be detrimental to firm value. The distinctive feature of the board nomination process/CG system in East Africa has implications for monitoring and corporate governance disclosure practices and compliance and calls for systematic research in this under-explored subject. Hypotheses H1: The association between board size and corporate governance disclosure will be positive. H2: The association between board independence and corporate governance disclosure will be positive. H3a: The presence of the CEO on the nomination/remuneration committee will negatively moderate the relationship between board independence and corporate governance disclosure. H3b: The presence of the CFO on the nomination/remuneration committee will negatively moderate the relationship between board independence and corporate governance disclosure. H3c: The presence of the CEO and CFO on the nomination/remuneration committee will negatively moderate the relationship between board independence and corporate governance disclosure. Target population Stakeholders including firm managers, practitioners, regulatory authorities, policymakers, and investors. Adopted methodology Ordinary least squares (OLS), fixed-effects model, and system generalized method of moments (GMM). Analyses Using a large and hand-collected dataset comprising 1000 firm-year observations from 2007 to 2017 in East Africa, this study develops a corporate governance disclosure index (CGDI) of East Africa consisting of 164 provisions. To test our hypotheses, this study adopts three analytical approaches, namely OLS and fixed-effects (FE) regressions and the two-stage system GMM to address the endogeneity concerns. Findings We find that large boards and independent directors are associated with greater disclosure of CG information. Our analysis suggests that CEO/CFO power negatively moderates the link between board independence and corporate governance disclosure, unlike those environments with stronger institutions and corporate governance systems. Thus, firms whose CEO and CFO are involved in remuneration or nomination committees disclose less CG information. The combined effect of the CEO and CFO on selection and remuneration committees and an independent board in reducing corporate disclosure appears more pronounced for the post-financial crisis period compared with the crisis period.

Nexus among Corporate Governance, Intellectual Capital Disclosure, and Firm Performance

Objective - This study conceptually examines a link between corporate governance, intellectual capital disclosure, and firm performance. With the support of signaling theory, this paper develops propositions for the relationship among corporate governance, intellectual capital disclosure, and firm performance. Methodology/Technique - The development and conclusion of this discursive paper as a conceptual one point out the possible relationship among corporate governance, intellectual capital disclosure, and firm performance. The underlying methodology of institutional discourse and integration with dynamic parameters is formalized. Findings - The results of the conceptual framework of this paper on corporate governance are contrasted with the approach to corporate governance in mainstream literature. Also examined is the theoretical and philosophical background of corporate governance, intellectual capital disclosure, and firm performance. Novelty - Although the importance of intellectual capital to firm performance is well established, the triple relationship between the board nomination and governance committee and the board remuneration committee, intellectual capital disclosure, and firm performance is exposed based on the effect of one on another. Type of Paper - Empirical. Keywords: Corporate Governance, Intellectual Capital Disclosure, Nomination Committee, and Firm Performance. JEL Classification: M40; M41; M49

Nexus among Corporate Governance, Intellectual Capital Disclosure, and Firm Performance

Objective - This study conceptually examines a link between corporate governance, intellectual capital disclosure, and firm performance. With the support of signaling theory, this paper develops propositions for the relationship among corporate governance, intellectual capital disclosure, and firm performance. Methodology/Technique –The development and conclusion of this discursive paper as a conceptual one point out the possible relationship among corporate governance, intellectual capital disclosure, and firm performance. The underlying methodology of institutional discourse and integration with dynamic parameters is formalized. Findings - The results of the conceptual framework of this paper on corporate governance are contrasted with the approach to corporate governance in mainstream literature. Also examined is the theoretical and philosophical background of corporate governance, intellectual capital disclosure, and firm performance. Novelty - Although the importance of intellectual capital to firm performance is well established, the triple relationship between the board nomination and governance committee and the board remuneration committee, intellectual capital disclosure, and firm performance is exposed based on the effect of one on another. Type of Paper: Empirical. Keywords: Corporate Governance, Intellectual Capital Disclosure, Nomination Committee, and Firm Performance. Reference to this paper should be referred to as follows: Nasir, A.M; Mustapa, I.R; Pirzada, K. (2022). Nexus among Corporate Governance, Intellectual Capital Disclosure and Firm Performance, Acc. Fin. Review, 7(3), 135 – 148. https://doi.org/10.35609/afr.2022.7.3(1)

Editorial: There Are Promises to Keep and Miles to Go Before I Leave…

Editorial: There Are Promises to Keep and Miles to Go Before I Leave…

Board Nomination Committee Independence: A Decade of Evidence

Nomination Committee (NC) is one of the least research committees among the other committees that audit, remuneration. The primary role of the nomination of an established working body is to recommend the director to the board, such recommendations could be unbiased with respect to the attributes, skills, race, education, nationality, and gender of the directors. This research study particularly emphasizes the counteracting involvement of directors who have a stake in the organization or part of the management and same time member of the nomination committee. This opens the power struggle between the directors that are neutral and members of the nomination committee. The research study is working on big data to critically examine such influence over a period of time. The finding of the paper will be useful to make a contribution to practice by transforming the extensive academic research into policymaking. Keywords: Board-NC Independence, Directors Demographics, Board Composition, Big Data

Predictors of Board Gender Diversity: A Systematic Review and Meta-analysis

Drawing on macro (country), meso (industry and organizational), and micro (board) level literature related to board gender composition, we provided a systematic review and meta-analysis of factors predicting gender diversity on boards (k = 62 independent samples; N = 632,185 firm-year observations). Results showed that at the macro-level, representation of women on boards is lower in countries that place higher value on masculinity (r = -0.30), have greater power distance (r= -0.15), and higher levels of religiosity (r= -0.30). The presence of women in politics and government rankings was also positively associated with increased board gender diversity (r= 0.47). Positive associations were also found between board gender diversity and meso-level factors which included female work-force participation (r= 0.18), firm size (r= 0.20), board size (r = 0.22) and ownership structure (r = 0.23). At the micro-level, we found positive associations between board gender diversity and the presence of network opportunities and mentoring (r = 0.25), board development practices (r = 0.29), chair of the board being a woman (? = 0.26), and female presence on board nomination committees (r= 0.23). Overall, findings address the previous calls for research investigation (e.g., Hillman, Shropshire, & Cannella, 2007; Terjesen & Singh, 2008) of the endogenous causes of underrepresentation of women on boards.

Board Independence, Nomination and Remuneration Committee, and Compensation in Indonesia

This article aims to examine the relationship between independent commissioners and nomination and remuneration committee (KNR) and their interaction with directors’ compensation using companies listed on the Indonesia Stock Exchange (BEI) and ordinary least square regression analysis technique. This study found that independent commissioners negatively associated with directors' compensation which showed that companies with a higher ratio of independent commissioners provide less directors' compensation due to optimal supervision of management’s opportunistic behavior. In contrast, KNR is positively associated with directors' compensation which means that companies with KNR provide greater compensation because, according to the "optimal contracting approach", the board is assumed to design compensation schemes to provide managers with efficient incentives to maximize shareholder value. Meanwhile, the interaction between the two variables is not associated with directors' compensation because of the negating effect which shows that companies with independent commissioners and KNR do not have a tendency for directors' compensation.

Society on board? External board members and the embedding of Swedish higher education organizations in society, 1998–2016

ABSTRACT Boards in higher education organizations (HEOs) play multiple roles. While they govern, boards are also expected to embed HEOs in society. Indeed, recent higher education reforms in Europe have emphasized the embedding role of HEO boards more than their governing role. But, although these reforms are widespread, we still know little about the ways in which boards are affected by ambitions of embedding HEOs. The aim of our paper is to explore how such ambitions are expressed through HEO board nominations and compositions. We address this aim by turning to Sweden, whose higher education system has, during the past three decades, undergone recurrent reforms that emphasize the embedding role of boards at public HEOs. Our study builds on a longitudinal dataset of external HEO board members’ positions, employers, and simultaneous board seats, collected for 1998, 2007, and 2016 so as to accompany Swedish reforms. We find that external board members, over time, embedded HEOs in expanding and sprawling networks of ties to organizations from the public, private, and civil society sectors. Our findings push the literature beyond its focus on private sector ties by showing how governmental reforms lead HEOs to embed among public and civil society organizations as well.

Call for editorial board nominations

Call for editorial board nominations

INSAR's Strategic Planning Meeting, 2021 Dues, Board Nominations, Autistic Researchers Committee, Memorials, INSAR 2021 Hybrid 20th Anniversary Annual Meeting.

Autism ResearchVolume 13, Issue 11 p. 2030-2031 SOCIETY NEWS INSAR's Strategic Planning Meeting, 2021 Dues, Board Nominations, Autistic Researchers Committee, Memorials, INSAR 2021 Hybrid 20th Anniversary Annual Meeting First published: 20 November 2020 https://doi.org/10.1002/aur.2429Read the full textAboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onFacebookTwitterLinkedInRedditWechat No abstract is available for this article. Volume13, Issue11November 2020Pages 2030-2031 RelatedInformation

Analysis of Pre and Post-MCCG 2017: Leadership Effectiveness Through the Board Nomination Committee of Top 50 Malaysian PLCs

Purpose – This paper investigates the impact of the two main aspects on selecting the right Board candidate including best practices within the position and structure along with the recruitment activities proposed under the Malaysian Corporate Governance Code (Code) compared across 2012 and 2017.Design/ methodology approach - For this analysis, a target list of the top 50 PLCs based on market capitalization was gathered from 784 Malaysian PLCs as of 14 August 2020. In the annual review of the reports, this study includes statistical methods to quantify and interpret the disclosures.Originality - This study reviews the developments of the policies from the Code in 2012 to the Code in 2017. Also applicable to other PLCs other than the top 50 Malaysian PLCs would be the Board Nomination Committee – Role and Structure and the Board Nomination Committee – Recruitment Activities scoring indices designed.

Cyber Democracy Versus Controlling Shareholders: The Implications of E-Voting System for Corporate Governance

Based on the ideology of cyber democracy, Taiwan government has just begun to require the publicly-listed companies to implement the practice of e-voting system in stockholder meetings since 2012. One of the objectives of this mandate is to promote stockholder's activism to rectify the phenomenon of excess control associated with controlling shareholders, who dominate the boards of directors but own disproportionate ownership, to comply with the principle of one-share-one-vote. Though with good intention, the effectiveness of the e-voting system remains a question, given that it has been implemented only for a short period of time. In addition, the function of some auxiliary practices to supplement e-voting system such as director nomination also needs to be tested. This study proposes three hypotheses regarding the relationships among e-voting, board nomination, excess control, and firm performance. Using the data of 829 Taiwanese publicly-listed companies across the time period between 2012 and 2014, this study finds that the separate adoption of e-voting and board nomination increases the level of excess control and is, thus, detrimental to firm performance. On the other hand, the simultaneous adoption of the two practices can significantly decrease the level of excess control of controlling shareholders, which, in turn, contributes to firm performance. The findings bring important implications to corporate governance and policy formulation of the administration.

Improving corporate governance with functional diversity on FTSE 350 boards: directors’ perspective

PurposeBoards presently are considered the most critical component in improving corporate governance (CG). Board diversity is increasingly being recommended as a tool for enhancing firm performance. Academic research and regulatory action regarding board diversity are focussed mainly on gender and ethnic composition of boards. However, the perspective of board members on board diversity and its impact is mostly missing. Moreover, while strategic leadership perspective suggests that a broader set of upper echelon’s characteristics may shape their actions, empirical evidence investigating the impact of less-explored attributes of diversity is almost non-existent. While the research on the input–output relationship between board diversity and firm performance remains equivocal, an intervening relationship between board diversity and board effectiveness needs to be understood. The purpose of this paper is to address all three limitations and explore the subject from board members’ perspective.Design/methodology/approachThe paper presents the findings of qualitative, exploratory research conducted by interviewing 42 board members of FTSE 350 companies. The data are analysed thematically.FindingsThe findings of the research suggest that board members of FTSE 350 companies consider the diversity of functional experience to be a critical requirement for boards’ role-effectiveness. Functionally diverse boards manage external dependencies more effectively and challenge assumptions of the executive more efficiently, thus improving CG. The findings significantly contribute to the literature on board diversity, as well as to strategic leadership theory and other applicable theories. The research is conducted with a relatively small but elite and difficult to approach set of 42 board members of FTSE 350 companies.Practical implicationsThe paper makes a unique and significant contribution to praxis by presenting the perspective of practitioners of CG – board members. The findings may encourage board nomination committees to seek board diversity beyond the gender and ethnic characteristics of directors. The findings may also be relevant for policy formulation, as they indicate that functionally diverse boards have improved effectiveness in a range of board roles.Social implicationsBoard diversity is about building a board that accurately reflects the make-up of the population and stakeholders of the society where the company operates. The aim of board diversity is to cultivate a broad range of attributes and perspectives that reflects real-world demographics as boards need to continue to earn their “licence to operate in society” as organisations have a responsibility to multiple constituents and stakeholders, including the community and the wider society within which they exist. Building social capital through diversity has value in the wider context of modern society and achieving social justice.Originality/valueThe paper makes an original and unique contribution to strategic leadership theory by strengthening the argument of the theory. The paper explores beyond widely researched attributes of gender and ethnicity on boards and explores the impact of a less-researched characteristic of directors – their functional experience. Moreover, the paper opens the “black box” of CG – boards, and presents the perspectives of board members. The findings indicate that board members in FTSE 350 boards define diversity more broadly than academics and regulatory agencies often do.

Call for Editorial Board Nominations

Call for Editorial Board Nominations