Selection Management Research Articles

The Differential Effect of Regulatory Signals on Shareholder Dissent: The Case of Shareholder Voting in Director Elections

ABSTRACTResearch Question/IssueIn the Japanese context of shareholder voting in director elections, this study examines how regulatory signals differently influence shareholder dissent depending on their resource dependence relationship with regulatory bodies.Research Findings/InsightsWe find that the effect of a regulatory change in the disclosure of voting records on shareholder dissent is strengthened as shareholdings by domestic institutional investors increase, while it is mitigated as shareholdings by foreign institutional investors increase. Moreover, we find that this effect is pronounced under conditions where directors seemingly fail to fulfill or to qualify for their role.Theoretical/Academic ImplicationsThis study develops a resource dependence perspective of shareholder dissent and argues that shareholder dissent can be shaped by regulatory signals from regulatory bodies who provide them with legitimacy. This study enriches the existing insights on corporate governance role of institutional investors by focusing on their resource dependence on regulatory bodies.Practitioner/Policy ImplicationsThis study sheds light on the dynamic nature of shareholder behavior and suggests that shareholder preferences are not only heterogeneous but also mutable over time in response to regulatory signals. This implies that managers need to pay attention not only to current shareholder preferences but also to future anticipated shareholder preferences to successfully manage their relationships with shareholders.

Climate Disclosure and Director Elections

Climate Disclosure and Director Elections

Environmental Background Directors and ESG Performance: A Perspective on Green Governance

ESG has gradually become a key indicator to measure the corporate sustainable development performance in various countries. More and more business managements are integrating sustainable development goals into corporate strategies. The board of directors is the strategy and decision maker of the enterprise and has the primary responsibility for ESG governance. The green governance of the board of directors is an important guaranteed mechanism to promote ESG performance. We use text analysis to identify environmental background directors (EBDs) and analyze the impact and mechanisms of EBDs on ESG performance, drawing on data from Chinese-listed companies between 2010 and 2022. The results indicate that EBDs significantly enhance overall corporate ESG performance at the 1% level. Specifically, EBDs significantly improve social (S) performance at the 1% level and environmental (E) and governance (G) performance at the 5% level. Mechanism analysis finds that EBDs enhance ESG performance by fostering management’s green awareness and promoting the enterprise’s green innovation. Heterogeneity analysis shows that EBDs have a greater impact on green governance in regions with weak environmental regulation, cleaning industries, and after the implementation of the New Environmental Protection Law. Our findings contribute to the literature on factors influencing ESG performance and green governance. They also provide novel empirical evidence supporting the selection and cultivation of directors with environmental backgrounds, enhancing board diversity and fostering corporate sustainable development.

The Election of Independent Directors

The Election of Independent Directors

Paradoxical oddities in two multiwinner elections from Scotland

If you were a candidate in an election, would you prefer more support from voters or less? Put another way: would you prefer that your campaign staff persuade more voters to vote for you, or fewer? These questions seem silly, because of course you would want more support from voters. Surprisingly, when using certain voting methods it is actually possible for more voter support to produce a worse result for a candidate; such an outcome is a type of monotonicity paradox. In [1], we searched for various types of monotonicity paradoxes in 1079 single-transferable vote (STV) elections from a database of Scottish local government elections. The purpose of this article is to present in detail two of the most interesting elections revealed by our search. These two elections are arguably the most paradox-riddled real-world political ranked choice elections ever documented, perhaps rivalled only by four single-winner examples from the United States: the 2009 mayoral election in Burlington, Vermont ([2, 3]); a 2021 city council race in Minneapolis, Minnesota [4]; the 2022 Special Election for US House in Alaska [5]; and the 2022 District 4 School Director election in Oakland, California [6]. The first election we present is the 2017 council election in the Buckie Ward of the Moray Council Area, which demonstrated the most extreme instance of a committee size monotonicity paradox ever observed in an actual election. The second election is the 2012 council election in the Steòrnabhagh a Tuath Ward of the Nah-Eileanan Siar Council Area, which demonstrated upward and downward monotonicity paradoxes, as well as a no-show paradox. To contextualise these elections, as part of our discussion we indicate how often these kinds of paradoxes occur in Scottish local government elections.

Antecedents of Lead Director Selection

ABSTRACTResearch Question/IssueThis paper investigates the antecedents of lead director selection in the US context. Specifically, how do rational and social factors influence the likelihood of being selected as the lead director?Research Findings/InsightsResults for independent directors in S&P 1500 firms from 2000 to 2021 support the positive effect of both board capital (human capital and social capital) and social embeddedness with the CEO (university ties and demographic similarity) as factors in the selection of lead directors. Results also show that among late adopters, the effect of human capital (board experience) on selection is strengthened, and the effect of demographic similarity to the CEO on selection is weakened.Theoretical/Academic ImplicationsFirst, building on the director selection model, this paper further differentiates the rational and socialized perspectives by integrating the diffusion model. Specifically, among late adopters, rational factors play a larger role, and socialized factors play a smaller role in the lead director selection. Second, for the literature on the boards of directors, this paper provides unique individual‐level insights about directors' attributes and their interactions with firm‐level timing of practice adoption.Practitioner/Policy ImplicationsThe new governance practice of having a lead director, a leader of independent directors, has emerged and spread in the United States since 2000. As attention to the lead director governance practice increases, this paper focuses on the complexity of its adoption. Specifically, both rational (board capital) and socialized (social embeddedness with the CEO) factors can play a role in the lead director selection. Related stakeholder groups such as directors, investors, and policymakers should be aware of the potential symbolic adoption of this new governance practice.

The Functions and Regulatory Approaches of Shareholders’ Proposal Right Related to the Election of Directors–Thoughts on Individual Issues under Common Rules

The Functions and Regulatory Approaches of Shareholders’ Proposal Right Related to the Election of Directors–Thoughts on Individual Issues under Common Rules

Implementasi Metode Analytical Hierarchy Process untuk Keputusan Pemberian Ijin Operasional Sekolah Tingkat SMA/SMK di Kabupaten Sumba Barat

In order for students to actively develop their potential for religious spiritual strength, self-control, personality, intelligence, morality, life sciences, general knowledge, and the skills they need for society based on the law, education is a planned basic effort to create a learning atmosphere and learning process. Invite. Although it can also be autodidactic, education frequently takes place with the assistance of other people as well as biological parents. Preschool, elementary school, middle school, high school, and finally college, university, or apprenticeship are the typical phases of education. Another important factor in a region's development is education. Therefore, a decision support system that can make suggestions for choosing state institutions and study programs is required for West Sumba Regency SMA/Vocational Schools. The Analytical Hierarchy Process (AHP) approach is used to weight the value of each criterion, and the Simple Additive Weighting (SAW) method is used to calculate the weighted total or to order the alternatives from best. The weights of each alternative—a state university or study program—along with all of its features are added up to determine recommendations for selecting one. The chosen option will be indicated by a higher value. This system generates a report on the outcomes of management decisions, which includes the management's selections based on all options arranged from greatest to smallest SAW value. MySQL and Microsoft Visual Studio 2008 were used to develop the decision support system suggestions for choosing state colleges and study programs for the database.

The Saudi Endodontic Society Board of Directors elections [2024-2028

The Saudi Endodontic Society Board of Directors elections [2024-2028

Shaping Organizational Performance via Employee Participation and Vetting in Managerial Selection

Shaping Organizational Performance via Employee Participation and Vetting in Managerial Selection

Meet the Candidates: Division VII Director Elections [Society News]

Meet the Candidates: Division VII Director Elections [Society News]

Analisa Faktor Yang Mempengaruhi Financial Sustainability Ratio Sektor Perbankan Di Bei Periode 2019-2022

Financial Sustainability in banking is one of the important things to measure the bank's sustainability in the future, especially from a financial perspective. The sustainability of the banking sector must be a concern because there are many parties who will have an impact if a bank experiences failure to operate, especially in its finances. This research aims to examine the influence of BOPO, DebtToEquity, ReturnOnAsset, LDR, Directors, Commissioners on the Financial Sustainability Ratio (FSR) in Idx banking sector companies -Ic Period 2019-2022. Sampling was carried out using purposive sampling technique. This type of research uses multiple linear regression methods. The object of this research is the Idx-Ic banking sector financial report for the 2019-2022 period. The research results show that only the Director variable of the six independent variables used has an influence on the Financial Sustainability Ratio (FSR) and the research model is suitable for use. Companies that want to maintain the FSR value should pay attention to the number and selection of directors they have.

CPDD election results

The College on Problems of Drug Dependence (CPDD) has a new president‐elect: Wendy Lynch Ph.D., of the University of Virginia School of Medicine. The results of the 2024 Officers and Board of Directors election also included new board members Cecelia Bergeria Ph.D. of the Johns Hopkins University School of Medicine, Bethea “Annie” Kleykamp Ph.D. of the University of Maryland, Aron Lichtman Ph.D. of Virginia Commonwealth University, and Judith Tsui M.D. of the University of Washington.

Credit default swaps and shareholder monitoring

The paper examines how the initiation of credit default swaps (CDSs) influences shareholders' monitoring intensity. Prior studies show that CDSs decrease lenders' monitoring over the referenced firm (Morrison, 2005; Parlour and Winton, 2013). However, there is scant literature on how shareholders react after the initiation of CDSs. Given that the reduced lenders' monitoring could be detrimental to shareholders, we predict that shareholders will directly increase their monitoring intensity. Using a difference-in-differences design, we document that the sensitivity of the voting approval rate on director elections to firm performance increases significantly after the initiation of CDSs. The effect is more evident for firms with higher risk, lower existing shareholders' monitoring intensity, and higher existing lenders' monitoring intensity. Collectively, the results provide direct evidence that shareholders step in after the initiation of CDSs by enhancing their monitoring intensity.

Long‐term value versus short‐term profits: When do index funds recall loaned shares for voting?

AbstractResearch Question/IssueIn this paper, we examine the effects of share lending or recall on proxy voting, with a particular focus on the role of index funds.Research Findings/InsightsOur study reveals that higher index ownership in a firm is associated with an increased likelihood of share recall, particularly in the presence of higher institutional ownership, lower past return performance, smaller firm size, and when more shares are held by younger fund families with higher turnover ratios or higher management fees. Using the Russell 1000/2000 Index reconstitution as an exogenous shock, we establish a causal relationship between index ownership and share recall through instrumental variable (IV) analysis. Furthermore, we find a positive correlation between index ownership and share recall for proxy voting proposals related to compensation, director election, and those sponsored by management. In subsequent proxy votes, shareholder‐sponsored proposals and environmental, social, and governance (ESG) proposals receive more support in firms with higher index ownership, especially when share recall is more prevalent. Our analysis does not provide evidence to support the conjecture that firms with higher index ownership are more vulnerable to empty voting issues.Theoretical/Academic ImplicationsOur study enhances the understanding of how index funds recall shares during proxy voting and the impact of index ownership on voting outcomes. The findings support the practice of index funds recalling shares to actively engage in proxy voting, effectively addressing the conflict between short‐term profit‐seeking through securities lending and long‐term governance responsibilities.Practitioner/Policy ImplicationsWe contribute to a better understanding of the role of index funds in corporate governance and shed light on the consequences of securities lending in proxy votes. These findings have important implications for investors, policymakers, and market participants in managing the potential conflicts arising from securities lending activities and promoting effective corporate governance practices.

Shareholder voting on golden parachutes: Effective governance or too little too late?

AbstractThe Dodd–Fank Act mandated shareholder votes on executive's change‐in‐control (golden parachute) payments at the time the firm is sold. We study bid premiums surrounding the introduction of the vote and find that they are lower in the post‐period. Moreover, there is a positive association between the relative size of parachute payments and premiums, particularly after the parachute vote was required. In contrast, we observe no association between premiums and parachute features questioned by many shareholders. Additionally, we find lower voting support for parachutes with features that are (i) of concern to shareholders, (ii) amended in the lead‐up to the vote and (iii) identified as problematic in proxy advisor analyst reports. However, we find little evidence that directors overseeing payments with opposition from shareholders or a leading proxy advisor are penalized with lost board seats, fewer key board committee memberships or increased shareholder opposition in subsequent director elections at other firms. Overall, our findings suggest that the parachute vote requirement is too little too late.

Gender diversity on corporate boards: importance of female traits/characteristics as perceived by university students

PurposeThis study aims to contribute to the literature on board gender diversity by soliciting university students' views on several perceptions raised by academics concerning the suitability of women to serve on corporate boards. In particular, if the opinions of male students differ from those of female students, this showing any gender bias.Design/methodology/approachThe study is part of a much more comprehensive investigation into board gender diversity. It adopts a questionnaire approach, with this paper focussing on twelve research statements. Two hundred and ninety-six university students completed the questionnaires at a public university in the Czech Republic during March–April 2023. A pilot questionnaire was conducted in February 2023, resulting in minor changes being made. The data is analysed using SPSS and MedCalc® statistical software.FindingsWhilst, in some respects, it supports the literature in relation to the observations highlighted in the research statements concerning female traits/characteristics, there is unmistakable evidence of gender bias in the respondents' opinions regarding the qualities women can bring to corporate boards. Overall, this research shows a negative bias by male respondents towards the positive attributes females can bring to the boardroom. This bias may influence the selection of female directors in the future. This research suggests that the apparent discrimination against women is not just because they are female but from a perceived mismatch between inferred female characteristics and male stereotype leadership requirements. There is, however, no gender bias with respect to students' leadership aspirations.Practical implicationsThe findings of this research should help with policy-making decisions concerning the selection of future corporate board directors and help break down any negative gender selection bias. The paper adds to the discussion and debate about ethical issues related to business and broader society concerning gender diversity in senior management roles. It also adds to the political debate on the issue of legislative gender initiatives.Originality/valueThe research respondents' perceptions may well influence the decision-making process for the selection of future corporate directors. Whilst these current perceptions may, and invariably will, change over time, it is important to identify them at an early stage in the respondents' careers. This research gives a better understanding of the perceived qualities that women bring to corporate boards from an inexperienced perspective.

Director Selection: Drivers for the Adoption and Design of Nomination Committees by New Zealand National Sport Organizations

Nomination committees (NCs) are a critical, yet under-researched, part of the good governance equation. This study contributes to baseline knowledge of NC adoption and design. Underpinned by critical realism, four national sports organization case studies explain the “why” and “how” of NC adoption through a multitheoretical lens. Change strategies are identified using Hampel et al.’s mechanisms (symbolic, relational, and material) approach to institutional (creation) work outcomes. Archer’s morphogenetic cycle helps to demonstrate the interplay between structure, culture, and agency in achieving the change with the study, providing a timely reminder of the power of morphostasis (inertia). The results are important for future NC design to better inform national sport organization NCs’ structures and processes (including case-appropriate balance between community and corporate logics in national sport organization governance re-configurations) and aid future evaluations of NC effectiveness. A critical realism multitheoretical and multicase approach is modeled for future sport management studies.

Selection and development of operational directors’ critical competencies in light of the research conducted

Selection and development of operational directors’ critical competencies in light of the research conducted

Interlocking boards and firm outcomes: a review

PurposeThis paper explores the relationship between board interlocks and firm outcomes by reviewing the most recent peer-reviewed articles examining this research theme.Design/methodology/approachA systematic and bibliometric methodology of assessing 369 peer-reviewed articles from the Web of Science (WoS) database was applied. The study also leverages key R-packages litsearchr and Bibliometrix software to enhance the descriptive and thematic literature analysis to identify gaps and opportunities for new research.FindingsThis study confirms a rapid increase in articles on this thematic area, over the last decade, with increasing collaboration occurring among researchers in the United States, Europe, China, South Korea and India. Four core research clusters are identified. The first and largest cluster links interlocked directors to issues related to corporate governance and firm outcomes. The second cluster links social network theory, interlocking directorates and firm outcomes. Smaller emerging research clusters include topics related to ownership structure, board size, political connectedness and impacts on firm outcomes. The final cluster examines the influence of board interlocks on market value and firm innovation.Practical implicationsInterlocked directors can have both positive and negative impacts on a wide variety of firm outcomes. This study places great interest in the selection of new directors, ensuring that the selection has aligned with the needs and interests of the company and disclosures of potential competing interests are declared and considered. Equally important are the governance practices used to monitor directors' behavior and to protect the interest of shareholders and the firm. This is particularly relevant in the internal appointment of interlocked directors to critical positions, such as audit committees or instances where interlocked directors may simultaneously hold CEO or executive leadership positions in other companies.Originality/valueThis paper examines the board interlocks literature related to firm outcomes. Additionally, this review identifies several topics and disciplines which, if pursued, could enrich the literature and promise new avenues for future research.