Effectiveness Of Corporate Boards Research Articles

Measuring the impact of corporate governance on non-financial reporting in the top HEIs worldwide

PurposeThis study aims to measure the relationship between corporate governance and non-financial reporting (NFR) in higher education institutions (HEIs). Board effectiveness, student engagement, audit quality, Vice-Chancellor (VC) pay and VC gender are targeted for analysis.Design/methodology/approachThis study is based on content analysis. The authors used the EU NFR Directive (2014/95/EU) to measure NFR. This includes environmental, corporate social responsibility, human rights, corporate board effectiveness and corruption and bribery. Cross-sectional data was collected from 89 HEIs worldwide across 15 different countries over three years. Content analysis, the weighted scoring method and panel data analysis are used to obtain the results.FindingsThrough a neo-institutional theoretical lens, this study provides a broader understanding of NFR content disclosure practices within HEIs. The findings reveal that the audit quality, VC pay and VC gender are significantly and positively associated with NFR content disclosure. However, board effectiveness has a significant negative impact on NFR content disclosure. More interestingly, the findings reveal that student engagement has an insignificant association with NFR content disclosure and there significant difference on the level of NFR content disclosure across universities situated in the different geographical region such as the USA, Australia, the UK and EU, Asia and Canada. The findings have important implications for regulators and policymakers. The evidence appears to be robust when controlling for possible endogeneities.Originality/valueThe study contributes to the literature on corporate non-financial disclosure as it provides new insights of corporate governance mechanisms and NFR disclosure within HEIs.

Ethical leadership and corporate board effectiveness: The role of team reflexivity and environmental dynamism.

Ethical leadership and corporate board effectiveness: The role of team reflexivity and environmental dynamism.

Board Effectiveness, Entrepreneurial Orientation and Corporate Culture: Evidence from an Emerging Economy

There is a dearth and mixed empirical evidence regarding the relationship between corporate board effectiveness and entrepreneurial orientation in a large-scale organizational setting. The purpose of this paper is to address this deficiency by investigating the link between board effectiveness and entrepreneurial orientation including the possible moderators that influence such a connection in an emerging country context. A quantitative survey was conducted representing the top 100 listed non-financial companies in Sri Lanka. Correlation and hierarchical regression analysis were employed in testing the hypotheses of the study. Study findings indicated that entrepreneurial orientation is significantly associated and predicted by board effectiveness in Sri Lankan context. The relationship between board effectiveness and firm innovative behavior is significantly moderated by the corporate cultural characteristics measured via competing value framework. The study is noteworthy due to, (1) the adoption of a multi-theoretic perspective to conceptualize board effectiveness, (2) an attempt to link resource-dependency theory and the resource-based view of entrepreneurship to understand the aforementioned link between board effectiveness and entrepreneurial orientation, (3) an attempt to understand the role of corporate culture to strengthen the aforementioned link. The study has a momentous value for theoretical advancement in corporate governance and entrepreneurship literature. The study findings provide a notable practical value for board members, senior decision-makers, and policymakers in emerging countries.

Directors’ Perceptions of Board Effectiveness and Internal Operations

We contribute to the growing literature on the effectiveness of corporate boards by examining the effect of two insights that have been largely unexplored in prior studies that use public data. First, since boards’ responsibilities are wide-ranging, more holistic performance measures may better capture the full range of their duties than specific public actions and outcomes (e.g., disclosure of risk management processes, financial restatements, acquisition returns, CEO turnover). And second, because corporate boards share many characteristics of other types of teams, their effectiveness is likely to be influenced by their internal operations. To examine the performance effects of these insights, we use data from 577 directors of U.S. public firms that responded to a survey we conducted in 2015–2016 and qualitative data from interviews of 75 directors. Our study establishes a strong relation between director perceptions of board performance effectiveness and internal board operations. Further, by highlighting the critical role of internal operations, identifying areas of relative strength and weakness in boards’ effectiveness in various activities, and probing director perceptions of their primary responsibilities, we are able to offer concrete suggestions for future research on board effectiveness. This paper was accepted by Shiva Rajgopal, accounting.

Female directors on boards. The impact of faultlines on CSR reporting

PurposeThis paper aims to analyze the role of female directors on CSR disclosure. It assumes the existence of faultlines when studying gender diversity and classifies female directors into three categories: industry experts, advisors and community leaders. It also examines the influence of the power of female directors as a moderator on the association between female director categories and CSR disclosure.Design/methodology/approachThe paper bases on a dynamic generalized method of moments panel estimator which allows controlling for the unobservable heterogeneity and endogeneity and reduces the estimation bias.FindingsResults confirm the double-sided nature of gender diversity, noting different behavior among female directors according to their experience and backgrounds. Moreover, the dominating owner position of female directors can balance and moderate the effect of female directors appointed for their technical knowledge or political and social ties. The results also confirm the necessity to not consider all women directors as a homogeneous group and explore the influence and interrelations of female faultlines on CSR disclosure.Practical implicationsThe paper highlights the need to consider the specific skills, expertise, and connections of female board members when analyzing the effect of board composition, and supports the view that firms should emphasize the unique human and social capital of directors to understand how boards impact on firm strategies. Specifically, the authors support the recommendations of the European Commission (2011) regarding the need to increase skills and expertise when selecting new non-executive female board members.Social implicationsAt a time when most governments are introducing active policies that require firms to nominate women to boards, the understanding of the consequences of women’s presence on boards and the interrelations between female power and the diverse categories of female directors is timely and important.Originality/valueTo the best of the authors’ knowledge, this is the first paper that provides empirical evidence to the scarcely studied area of the human and social capital of female directors’ roles in CSR disclosure, providing an alternative view of the role of women in corporate board effectiveness.

Board gender composition and marketing effectiveness in the female consumer market in Zimbabwe

Purpose The purpose of this paper was to examine the difference in the effect on external marketing effectiveness of gender similar boards and gender dissimilar boards in the agro-manufacturing industry in Zimbabwe. Design/methodology/approach Based on a multi-item construct of external marketing effectiveness, data were gathered from 56 agro-manufacturing firms. The significant differences in the effect of marketing activities designed by male, gender-diverse and female boards on the level of external marketing effectiveness of the firms were examined using MANOVA. Findings The results suggest significant differences on the levels of external marketing effectiveness between all female boards and all male and gender-diverse boards. Female boards indicated high levels of external marketing effectiveness on customer-perceived value, loyalty, satisfaction, brand performance and symbolic meaning. The study concludes that marketing effectiveness will only be achieved by firms that develop relevant marketing strategies for the female consumer market. Research limitations/implications The sample for this research was drawn from agro-manufacturing firms in Zimbabwe. Therefore, the applicability of these findings to other countries should be done with caution. In addition, the sample for the research was rather small, with only a few female boards. If conducted with a larger sample, the results could be different. The developed scale to measure external marketing effectiveness may require to be tested by other researchers in different settings to confirm its applicability in measuring the construct in multiple settings. Originality/value Prior research shows that corporate board effectiveness has tended to be measured in terms of corporate financial performance. This research measures board effectiveness from the extent to which its gender composition has an effect on the ability of manufacturing firms to serve emerging needs of female consumers.

DIRECTIONS OF CHANGE IN THE POLISH TWO-TIER BOARD MODEL

Purpose: This paper is devoted to the eff ectiveness of corporate boards. Its aim is to present the board models found in European companies and to propose changes that would lead to better performance of Polish corporate boards. Approach: The article presents an analysis of European corporate board models, as well as their advantages and disadvantages. Based on this analysis, the author pointed out possible directions of change in the Polish two-tier board model. Implications: The author suggests that the introduction of an optional model, whereby the shareholders can choose between the one-tier board model (board of directors) and the two-tier board model (supervisory board and management board), would enable better use of the social and intellectual capital present in the corporate boards of Polish companies.