Board Of Directors Research Articles

Personal Bankruptcy Prediction Using Logistic Regression Model

According to the Insolvency Department of Malaysia, as of December 2023, 233,483 Malaysians are currently involved in bankruptcy cases due to their defaults on hire purchase loans, credit card loans, personal loans, housing loans, and business loans. This is indeed a critical issue because the growing number of personal bankruptcy cases will hurt the Malaysian economy as well as society. From an individual's economic perspective, bankruptcy minimizes their chances of getting a job. Apart from that, their accounts will be frozen, they will lose control of their properties and assets, and they will not be allowed to start any business or be a part of any company's Board of Directors. Bankrupts also will be rejected from any loan application. This paper examines this problem by developing a personal bankruptcy prediction model using the logistic regression technique. This paper defines "bankrupt" as terminated members who failed to settle their loans. The sample comprised 24,546 cases with 17% settled cases and 83% terminated cases. The data included a dependent variable, i.e., bankruptcy status (Y=1(bankrupt), Y=0(non-bankrupt)), and 12 predictors. Upon completion, this paper succeeds in coming out with a reliable personal bankruptcy prediction model and significant variables of personal bankruptcy. The findings of this paper are very beneficial and significant to creditors, banks, the Malaysia Department of Insolvency, potential borrowers, members of AKPK, and society in general in raising awareness of personal bankruptcy risks and such information may help them to take preventive measures in minimizing the number of personal bankruptcy cases.

Red, blue, and green? The association between CEOs' political ideologies and green new product introductions

AbstractNot all firms exhibit the same level of commitment to green new product introductions (GNPIs), yet our understanding of the factors underlying these disparities remains incomplete. Prior research has primarily focused on firm‐level factors, paying little attention to individual‐level antecedents of GNPIs. This imbalance in the GNPI literature contrasts with the broader innovation and general management literature, which displays an ever‐growing interest in the “human side of innovation,” acknowledging the relevance of Chief Executive Officers' (CEOs') political ideologies for organizational outcomes. Addressing this imbalance, our study examines the relationship between CEOs' political ideologies and their firms' GNPIs, along with the conditions that shape this influence. Grounded in social identity theory, our study first argues that the more liberal CEOs are, the more GNPIs their firms are likely to generate and that this association is amplified by CEO power. It then proposes that the more liberal CEOs are, the more likely they are to respond to adverse situations beyond their control (a Republican presidency or lower levels of consumer green sentiment) by initiating more GNPIs. It finally posits that the more liberal CEOs are, the fewer GNPIs they tend to initiate in response to adverse situations for which they are accountable (involvement in sustainability‐related scandals). We integrate data from seven databases into a longitudinal dataset comprising 89 firms and 192 CEOs over the period 2010–2020 to test our theoretical framework empirically. Time‐lagged panel regression analyses strongly support our theoretical arguments. Our findings contribute to the emergence of an individual‐level, microfoundational perspective on sustainable innovations, our knowledge about the organizational implications and boundary conditions of CEOs' political ideologies, and the treatment of multiple identities within social identity theory, especially the relationship between political and occupational identities. The implications of our findings extend to business practitioners, offering valuable insights for CEOs, boards of directors, and investors.

Compensation for Losses in Latvian Groups of Companies Law

The main purpose of the legal regulation of groups of companies, i.e. the Groups of Companies Law of Latvia, is to protect rights and legitimate interests of the dependent company, its creditors and minority shareholders. A controlling enterprise is entitled to pursue its own economic interests by exerting the decisive influence on a dependent company. There is no general prohibition for a controlling enterprise to induce the dependent company into entering transactions or carrying out measures that are disadvantageous to the dependent company. Disadvantageous transactions have to be reflected in the yearly dependency report submitted by the board of the dependent company. As a general principle, the controlling enterprise shall compensate the dependent company for losses arising from disadvantageous transactions or undertakings. If a group contract between the controlling enterprise and the dependent company exists, legal representatives (board members) of the controlling company are jointly responsible for the losses of the dependent company. If a group contract has not been concluded and a de facto group of companies exists, the controlling enterprise itself has to compensate for the losses of the dependent company. Besides the controlling enterprise, the legal representatives of this enterprise are jointly responsible.

Halal Purchasing Strategies of MSEs in the Malaysian Food Industry: An Exploratory Study on the Potential Use of CAQDAS in the Qualitative Evaluation of Multiple Case Studies

This paper explores the potential of computer-assisted qualitative data analysis software (CAQDAS), specifically Nvivo 14, in facilitating the qualitative evaluation of multiple case studies. The focus is on halal purchasing strategies within micro and small enterprises (MSEs) in the food industry, a critical issue from a Shariah perspective that ensures halal integrity from source to consumer. The issue highlights that MSE leaders in Malaysia’s food industry failed to optimize halal purchasing in their management practices, which undermines their ability to increase probability. The objective is to explore the strategies for optimizing halal purchasing performance of MSEs in Malaysia’s food industry, on how these businesses navigate the requirements of halal compliance in their operational practices. Through an exploratory study, 10 MSEs were examined to investigate their halal purchasing structures, involving interviews with key stakeholders such as brand owners, company directors, halal executives, and CEOs. In-depth, semi-structured interviews provided insights into company structures, challenges, and halal purchasing strategies. Thematic analysis was employed, using an inductive pattern coding approach where codes emerged organically from the data and were categorized into themes and sub-themes. Findings revealed a variety of business types, with six individually owned companies and four family-run businesses, highlighting differences in employee numbers, business longevity, and owner demographics. The study also suggests a trend of generational succession in family-owned businesses. This research demonstrates the utility of CAQDAS in managing and analyzing complex qualitative data in case study research.

Strategic Vigilance in Sports Clubs: Insights and Practices

Objectives: This study explores the reality of strategic vigilance practices in sports clubs in Oman. Methods: A questionnaire was administered to a random sample of 162 participants which included members of boards of directors, club managers, sports activity directors, coaches, and players in Oman. Result: Institutions show significant gaps in competitor analysis and communication with authorities, leading to a shortage of technological expertise that negatively impacts service promotion. Sports institutions prioritize continuous service development to retain existing clients and attract new ones. Conclusions: The study revealed a need to promote a culture of strategic vigilance among all employees in sports institutions in Oman. It emphasizes the necessity of engaging marketing specialists to address weaknesses within the institutions and contribute to the development of marketing vigilance

Exploring the Impact of Board Structure and Governance Practices on Integrated Reporting Quality: CSR as A Moderating Variable

Presentation report integrated (IR) in Indonesia is still naturally voluntary and partly big studies previously conducted in developed country capital markets, and studies conducted in emerging country markets Still seldom as well as companies that voluntarily choose to adopt IR possible to own Lots of flexibility in matter disclosure information. Purpose study this is to influence a positive board of directors and Governance Company to quality reporting moderated integratedcorporate social responsibility (CSR). Study this uses agency and stakeholder theory which emphasizes that governancecompanies can increase quality reporting integrated that can strengthen connection with the existence of CSR and companies obliged to give report as information to stakeholders. Retrieval technique sample uses method purposive sampling. Sample in study this is the incoming companythe LQ-45 index is listed on the Indonesia Stock Exchange (IDX) with as many his observations as many as 175 observations. For the test, the hypothesis used analysis regression multiple and MRA using application stata. The results of the research show the board of directors and governance companies are influential in the quality of reporting integrated and corporate social responsibility (CSR) strengthens the connection between the board of directors and governance companies in the quality of reporting integrated.

The mediator effect of financial performance on the relationship between board of directors’ size and corporate social responsibility disclosure: a case study of Palestinian listed companies

The mediator effect of financial performance on the relationship between board of directors’ size and corporate social responsibility disclosure: a case study of Palestinian listed companies

Disclosures in integrated reporting in Indonesia: Do corporate governance and ownership structures matter?

This study aims to analyze the impact of corporate governance and ownership structure on implementing elements of integrated reporting (IR) in the annual reports and sustainability reports of firms in Indonesia. This study includes corporate governance elements such as the size of the board of directors, the independence of the board of commissioners and the presence of audit and risk management committees. Meanwhile, the ownership structures examined in this study are institutional ownership and managerial ownership. The data were obtained through the content analysis of firms’ annual and sustainability reports. This research uses secondary data from the firms' websites and the Indonesia Stock Exchange (IDX) website. The data were then analyzed further using multiple regression analysis. The results show that only the risk management committee positively affects IR disclosure. At the same time, other independent variables do not affect IR disclosure. All control variables positively affect IR disclosure. This study adds to the literature by demonstrating that the risk management committee, firm size, profitability and leverage influence the extent of integrated reporting disclosure. This research contributes to corporations by illustrating that a risk management committee can enhance the importance of IR disclosure in Indonesia.

Retirement of two Editorial Board Members

Retirement of two Editorial Board Members

The impact of female board membership and firm performance on the environmental management system

This paper examines the effect of gender diversity on the Environmental Management Systems (EMS) measured as ISO 14001 adoption among Saudi-listed companies. In this study, we propose that female board members significantly influence EMS adoption by employing agency theory, stakeholder theory and resource dependency theory to predict the relationship. The final sample of this study consists of 44 firm-year observations for non-financial companies listed on the Saudi Stock Exchange with ISO 14001 certification from 2016 to 2019. The logistic regression results show that higher representation of women on boards is associated with more extensive use of EMS indicating the importance of gender diversity in enhancing corporate environmental responsibility. Moreover, companies with better financial performance are less likely to adopt comprehensive ecological management practices. This paper contributes to the existing body of knowledge by revealing how board diversity is related to financial performance and environment management systems among firms operating in emerging markets. These findings have policy implications for policymakers, business leaders and researchers engaged in sustainable development initiatives to enhance governance mechanisms.

The 2023 American Burn Association Research and Advocacy Summit: Our Roadmap.

Research is one of the American Burn Association's (ABA) strategic priorities. Advocacy is required not only to promote burn research, but also, the ABA's other strategic priorities (Prevention, Quality, and Education). The ABA convened a two-day Research and Advocacy (R&A) Summit in September 2023, to develop a roadmap for the organization's research and advocacy efforts. The in-person summit identified fourteen key R&A initiatives. A multidisciplinary workgroup then developed strategies to achieve each initiative. The initiatives and strategies were then approved by the ABA's Board of Trustees as our organization's roadmap for research and advocacy. The next task will be to implement the initiatives. This will require not only oversight from the ABA's Board of Trustees, but also, effort from and collaboration between several of the ABA's committees and panels, including the Burn Science Advisory panel (BSAP), the Research Committee, the Prevention Committee, The Governmental Affairs Committee, The Organization and Delivery of Burn care Committee, the Quality and Burn Registry Committee, the ad hoc Coding Committee, and the ABA's Central Office.

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.