Effect Of Board Characteristics Research Articles

The Effect of Board Characteristics on the Effectiveness of Internal Controls in Municipal Investment Firms: The Mediating Role of Risk Management

The Effect of Board Characteristics on the Effectiveness of Internal Controls in Municipal Investment Firms: The Mediating Role of Risk Management

The Effect of Board Characteristics and Audit Report Delay on Future Earnings Management

The Effect of Board Characteristics and Audit Report Delay on Future Earnings Management

The Effect of Board Characteristics on Firm Performance: Evidence from Egypt

The Effect of Board Characteristics on Firm Performance: Evidence from Egypt

Board Characteristics and Disclosure of Environmental Sustainability Reports in Indonesia: Moderation Effects of Political Connection

The purpose of this study is to examine whether the characteristics of the board of commissioners in Indonesia affect the level of corporate environmental sustainability reporting, as well as to examine the moderating effect of political connections on the disclosure of environmental sustainability reports. The sample used was 80 companies listed on the Indonesia Stock Exchange in 2019-2021. The analysis technique used is Moderated Regression Analysis to examine the moderating effect of political connections and the effect of board characteristics on the disclosure of environmental sustainability reports. The results show that the board size variable has a significant positive effect on the disclosure level of environmental sustainability reports. Additionally, this study found that political connections weaken the influence of gender diversity on the disclosure of environmental sustainability reports. These findings provide valuable insights and evaluation for stakeholders aiming to implement good corporate governance practices to enhance environmental sustainability reporting performance. They can also serve as input for the government in developing guidelines for corporate sustainability reporting.

What drives firms' commitment to fighting corruption? Evidence from the UK

AbstractThe recent leak of the FinCEN files has highlighted the widespread presence of corruption in developing and developed economies, including the UK. Accordingly, this study aims to investigate the factors that drive companies to implement measures for preventing corruption in developed countries using FTSE 350 nonfinancial firms. Specifically, the research examines the influence of corporate social responsibility (CSR) commitments, board structure, and shareholding structure on adopting strategies, policies, and procedures aimed at countering corruption. Drawing upon agency, stakeholder, and legitimacy theories, our empirical evidence supports that CSR commitments and board independence positively influence firms' engagement in anticorruption measures. Conversely, institutional and managerial shareholdings are found to have a negative association with firms' efforts to combat corruption. In addition, the study shows that the effect of board characteristics became more pronounced following the enactment of the UK Bribery Act 2010, indicating risk‐averse behavior. Various models, including cross‐sectional and two‐stage least squares (2SLS), are employed to analyze the data. Our findings have significant implications for understanding the complex relationship between CSR, corporate governance, and the ethical infrastructure of organizations. Ultimately, our results provide valuable insights for policymakers, companies, and other stakeholders in developing effective strategies, policies, and procedures to combat corruption activities.

M&A transactions in the Russian market: The impact of corporate boards’ attributes

The paper delves into the impact of corporate boards’ attributes on the efficiency of mergers and acquisitions (M&A) transactions in the Russian market and formulates recommendations on improving corporate governance practices in Russia. The article bridges a gap in research on boards of directors whose characteristics serve as strong signals to the capital market about the quality of corporate governance and protection of investors’ interests. Methodologically, the study rests on agency theory and the theories of mergers and acquisitions. The research hypotheses about the effect of board characteristics on M&A transactions were tested using the least square method to construct a linear regression. The transaction efficiency was assessed using the cumulative abnormal return (CAR) model. The empirical data were retrieved from Annual Reports and ZEPHYR Bureau van Dijk and covered 55,436 mergers and acquisitions from 2000 to 2020, of which 659 transactions satisfied the strict criteria and were selected for further analysis. We found a statistically significant relationship between the board characteristics of the acquiring company and the efficiency of mergers and acquisitions. The obtained results contribute to the development of a new research avenue on network-based interaction between boards of the companies participating in transactions and the involvement of boards of other firms.

Do board characteristics moderate capital adequacy regulation and bank risk-taking nexus in Sub-Saharan Africa?

PurposeThe purpose of this paper is to examine whether board characteristics moderate the relationship between capital adequacy regulation and bank risk-taking of universal banks in Sub-Saharan Africa (SSA).Design/methodology/approachThe paper uses 700 bank-year observations of universal banks in SSA between 2009 and 2019. The paper further uses the two-step generalized method of moments as the baseline estimator.FindingsThe paper finds that capital adequacy regulation is positively related to overall bank and liquidity risks. Nonetheless, capital adequacy regulation increases credit risk in the sampled banks. The paper further reports that board characteristics individually and significantly moderate the relationship between capital adequacy regulation and risk-taking.Practical implicationsThe findings have implications for regulators of universal banks that board characteristics matter for capital adequacy regulation to impact risk-taking behavior.Originality/valueThe paper extends the existing literature on the effect of board characteristics on the capital adequacy regulations and risk-taking behavior nexus of universal banks.

Effect of board characteristics on firm value in Nigeria

Effect of board characteristics on firm value in Nigeria

Board characteristics and firm resilience: Evidence from disruptive events

AbstractResearch Question/IssueWe study the contribution of board characteristics such as independence, size, busyness, and CEO duality, to firm resilience at times of firm‐specific crises.Research Findings/InsightsBased on manually collected US data, we document that board‐related variables affect the short‐term market reactions around disruptive events. Board independence exacerbates the negative share price effect, whereas the converse is true for director busyness and board size. However, the negative impact of board independence is attenuated in complex firms. We do not find that CEO duality affects market reactions. By contrast, in the long run, we do not observe stable and significant relationships between board‐related variables and firm performance with the exception of a negative impact of board independence.Theoretical/Academic ImplicationsOur paper contributes to different strands of the literature. First, it contributes to the literature on the effects of board characteristics by showing how they affect stock price reactions at the time of firm‐specific crises. Second, our results on board attributes provide a new take on the two monitoring and advisory functions of the board. Third, we add to the literature that measures the value of directors. More generally, the paper contributes to the literature on the role of corporate governance, and in particular the board of directors, in crises situations.Practitioner/Policy ImplicationsWe show that three board‐related attributes affect market reactions at the time of a firm‐specific shock. Board independence exacerbates the negative share price effect of disruptive events, whereas the reverse is true for director busyness and board size. These reactions imply that, in times of crisis, advice‐oriented boards fare better than monitoring‐oriented boards. More specifically, information flows less easily within independent boards. In addition, busy directors and large boards are more talented, respectively more effective in complex situations. However, these results do not hold for industry‐wide shocks.

Effects of Board Characteristics on Accruals Earnings Management in the Wake of Financial Crisis

This paper investigates the association between corporate governance and earnings management. More specifically, the effects of board characteristics on earnings management are examined. A proxy of earnings management, namely discretionary accruals (Modified Jones Model, 1995) is used to measure the level of earnings management. A sample of 103 firms listed on the Athens Stock Exchange during the period 2015-2019 was employed. Using panel data regressions, the authors explore the relationship between the discretionary accruals and five board characteristics as identified in the literature (independence, family directors, female directors, foreign directors, and CEO duality). The main findings of the study suggested that earnings management is restricted in firms with more independent directors and firms in which the same person takes the role of the CEO and the chairman of the board. Empirical results also indicate that in high performing firms earnings management is reduced while in firms with high levels of debt the opposite appears to be the case. The findings of the study have implications for many stakeholders such as regulators, managers, shareholders, etc. This paper contributes to the academic debate on earnings management by complementing the work of other researchers on the impact of corporate governance on earnings management in the wake of a financial crisis.

The effects of board characteristics and firm size on firm value and financial performance

This research was conducted to see the influence of board characteristics, the firm size on firm value, and financial performance on companies with completed mergers and acquisitions on the Indonesian stock exchange. This study was used to look at financial performance, specifically in 7 years after the company made a merger from 2013-2020. This research instrument uses quantitative analysis data by testing predetermined hypotheses. The study also found that not all variables significantly impact the company's firm value and financial performance when conducting mergers. The main finding is that the more excellent board characteristic of the merger company will result in no improvement in the company's financial performance; this is due to a large number of improper decision-making actions because the rules issued by the board hinders it.

Effect of Board Characteristics, Capital Structure on Firm Performance and Value

The board of directors is one of the components of corporate governance used by the company to improve the firm's performance both in the long and short term so that the characteristics of the board become one of the key factors to running a good governance system for the company, even though having a good board composition is not always makes the company have a good performance because of the conflict of interest that occurs between the principal and the manager of the company so that there is a need for an in-depth study of the impact of capital structure on company performance. This study attempts to assess specifically the characteristics of the board (board size, board diversity, and audit committee) owned by the company to capital structure, then confirmed the effect of capital structure on firm performance and firm value by using ROE for performance and Tobin’s Q for firm value. Was used in the study sample 25 a company that had always entered into the LQ45 index within a time frame of 2015-2019. The technique of analysis that was used in this study was Path Analysis. The results of the testing of hypotheses found that board size and audit committee had a positive impact on capital structure, while board diversity had a negative effect on capital structure, then capital structure had a positive effect on firm performance, otherwise, the capital structure had a negative effect on firm value

The Effect of Board Characteristics on Earnings Management in Differently-Sized European Firms

The effectiveness and the monitoring potentials of the board are crucial parameters for the management in the decision-making process. This study investigates the effect of board characteristics on the level of earnings management in EU listed firms. The findings indicate that the oversized boards function as a restricting determinant to the level of real and accrual-based manipulations. Also, the average board tenure is negatively correlated with real earnings management measures. An additional research query of this research is whether the effect of the board characteristics is diverse in different sized firms. In smaller firms, the board size impacts the accrual-based measures positively, while in the bigger firms, there is a positive association only with real earnings management measures. Furthermore, in smaller firms, an increase in board tenure seems to facilitate the manipulations using accounting policies and limit the manipulations of real activities. Finally, the results demonstrate that CEO-chairman duality is negatively related to the level of real earnings management.

Effect of Board Characteristics on Financial Performance of Listed Healthcare Firms in Nigeria

Abstract: Purpose: This study was conducted to investigate the relationship between board characteristics and the financial performance of listed healthcare firms in Nigeria. Research methodology: The study, which covered a seven-year period from 2015-2021, made use of secondary data sourced from published annual reports and accounts of five purposively selected companies on the Nigerian Stock Exchange. Data analysis was done by means of descriptive statistics, a correlation matrix, and some diagnostic tests using STATA 13. Results: The findings show that board characteristics consisting of board size, board independence, board gender diversity, and board meetings have a negative, non-significant relationship with performance. This study concludes that board size should be increased, the number of non-executive members of the board should be increased with members having vast knowledge and competency in governance, the number of women on the board should be increased, and frequent and necessary board meetings should be encouraged and possibly regulated in order not to create room for waste of resources and time. Limitations: The study’s main limitations are that it did not use other financial-based measurements for financial performance, used incomplete data, and used a small sample size. Contribution: The results of the study, based on the findings, will assist firms in the recommendation of the board size number and how its effectiveness should be increased and sustained. The study also contributes to other extant literature, as not many studies have been conducted in this area of the healthcare firms listed on the Nigerian Stock Exchange. Keywords: 1. Board independence 2. Board meeting frequency 3. Board gender diversity 4. Healthcare firms 5. Financial performance

The Effect of Board Characteristics on Corporate Social Responsibility Disclosure in the Jordanian Banks

A research was conducted to assess the influence of board member characteristics on corporate social responsibility disclosure (CSRD) within banking industries in Jordan where a total number of 155 banks per annum were sampled between the years 2010 and 2020. A hundred items have been developed as a checklist to evaluate the level of disclosure and the analysed results were comparatively low in terms of the level of disclosure for the selected banks in Jordan. To test the model, data from a time series and the ordinary least squares model have indicated the influence of three (3) factors that impacted positively on the disclosure of corporate social responsibility (concerning the board's size, board of foreign members and the audit committee). The present research thereby proposed that the directorate boards of commercial banks in Jordan need to create more awareness about corporate social responsibility, and implement proper monitoring activities in disclosing information on regular by the Central Bank of Jordan. However, any commercial bank that fails to comply with the rules and regulations should be sanctioned severely for indiscipline. This study became relevant by contributing meaningfully to literature where the quality of information of the banking industries could be improved to meet the novel trend by worldwide economic analysts. Furthermore, this research successfully carried out investigations on the impacts of CSRD level within the context of a new business environment, thereby projecting more guidelines for future works in a related discipline. However, the overall outcome from this study could be made to attract groups of stakeholders and shareholders like moderators, potential investors, and CSR and government officials.

The Effect of Board Characteristics on Real Activities Manipulation in Tunisian Banks

The succession of financial scandals and resounding bank failures that characterized the economic environment over the past three decades have given more weight to governance mechanisms. As such, considered to be one of the most important internal governance mechanisms, the board of directors has shown its strengths in controlling earnings manipulation, in particular those linked to real activities. The aim of this paper is to examine the effect of board characteristics on real earnings management. Using panel data econometrics, on all Tunisian commercial banks over the period 2008-2019, we show that board gender diversity has a disciplinary role in real earnings management as measured by discretionary revenue on equity securities. However, we show that board independence increases the real earnings management. As for board size, board duality, as well as the number of meetings carried out per year by the board of directors, we prove that they have no significant effect on real earnings management.

The Effect of Earnings Management, Board Characteristics, and Firm Size to Firm Performance on Manufacturing Companies

Abstract. This study aims to examine the effect of earnings management, board characteristics, and firm size on firm performance by measuring Tobin's Q (TQ). In this study, we examine the effect of earnings management using accrual-based earnings management and real earnings management, the effect of board characteristics using the variable the board of directors size and board of commissioners size, and also examine the effect of firm size by means of the natural log of firm assets. The results of this study indicate that accrual-based earnings management and firm size have a significant positive impact on firm performance while for real earnings management variables, the board of directors size, and the board of commissioners size are not significant on firm performance in this research topic.

Effect of Board Characteristics and Ownership Concentration on Financial Reporting Timelines of Quoted Oil and Gas Companies in Nigeria

Effect of Board Characteristics and Ownership Concentration on Financial Reporting Timelines of Quoted Oil and Gas Companies in Nigeria

Do Board Characteristics Matter for Growth Firms? Evidence from China

Previous research on the effect of board characteristics mostly examines established firms. This raises the question of whether the findings from the board characteristics literature are applicable to rapidly growing enterprises, as their corporate governance landscape can be very different from that in large, mature companies. Our paper extends the corporate governance literature by investigating the performance implications of board characteristics in startups using a unique set of firms: 121 startups operating in the information technology industry listed on the Growth Enterprise Market (GEM) in China. Using a firm performance indicator constructed through the factor analysis method, we find significant correlations between firm performance and board size, age structure, board meeting frequency, and board ownership of shares. Our findings contribute to the corporate governance literature by shedding new light on the performance implications of board characteristics for startups operating in fast-paced industries.

The Effect of Board Characteristics on Intellectual Capital: Case of Iran and Iraq

The Effect of Board Characteristics on Intellectual Capital: Case of Iran and Iraq