Impact Of Board Characteristics Research Articles

Unpacking sustainability reporting dimensions: the impact of board characteristics

Purpose This paper aims to document international evidence of the impact of a board-level governance bundle [size, independence, CEO duality, gender diversity and sustainability committee (SC)] on sustainability reporting (SR) and, separately, on its three dimensions (economic, environmental and social). Design/methodology/approach The sample includes 370 listed firms from 50 countries. A GRI standards-based disclosure index was constructed to quantify SR across various reporting media. Findings The baseline findings show that SC positively affects SR and its three dimensions. Board size also has a significant and positive impact on SR and two of its dimensions (economic and social). Similarly, board independence and CEO duality have a significant but negative association with SR and the same two dimensions. Finally, board gender diversity has no significant impact on SR and all its three dimensions. Practical implications The findings that only SC significantly influences SR, and its three dimensions, have important implications for corporate governance reforms internationally to improve SR in countries where such committees are not yet part of the board of directors’ sub-committees. Originality/value Overall, this study contributes to board characteristics–SR literature and holds significant theoretical and practical implications.

Board of directors, COVID-19, and corporate social responsibility monetary performance: direct and interaction effects analysis

Purpose This study aims to provide archival evidence on the impact of board characteristics on corporate social responsibility (CSR) monetary performance and how they interact with the COVID-19 pandemic in the context of CSR monetary performance. Design/methodology/approach This study analyzes listed companies in Oman’s capital market from 2016 to 2021, using pooled ordinary least squares and unique CSR performance measures such as budgeting and spending. Findings The study finds that companies with more expertise and frequent meetings are more likely to allocate a larger budget for CSR activities. However, this does not apply to larger boards or to independent directors. During the COVID-19 pandemic, the effect of independent directors on CSR budgeting and spending is more pronounced, and boards with more expertise and meetings show a negative interaction with the pandemic. The interaction of board characteristics with COVID-19 in terms of CSR monetary performance varies depending on company size. Board independence and expertise show a significant reaction to COVID-19 infection and death cases when setting CSR budgeting and spending. Research limitations/implications The findings of this study are stimulating, but stem from an emerging country with unique cultural and institutional characteristics. Methodological issues were also encountered during the analysis, so readers should exercise caution when applying the results to other settings. Practical implications This study highlights board involvement in deciding a company’s CSR investment, as it was believed that chief executive officers are considered responsible for CSR activities. Additionally, this research underscores the significance of incorporating the financial aspects of CSR into reporting. Originality/value This study examines the seldom explored relationship between corporate boards and CSR monetary aspects during regular and irregular times, offering theoretical and practical insights that benefit multiple stakeholders.

Board Characteristics and Bank Performance after the Global Financial and Economic Crisis – Do People Matter?

The study focuses on the impact of board characteristics on the performance of major international banks following the global financial crisis of 2008. Aspects such as the stability of governance structures, gender equality policies, and the correlation between board composition and key success indicators are analyzed. The relationships between efficiency, age, and gender of board members are explored, emphasizing the significance of dynamics in these structures for successful financial institution management. The study refrains from explicitly mentioning specific banks, providing insights into the broader issues surrounding governance in the post-crisis banking sector.

The Impact of Board Characteristics on Corporate Performance: A Case of Unilever PLC

The Impact of Board Characteristics on Corporate Performance: A Case of Unilever PLC

Adopting a social purpose in for-profit firms: the role of the board of directors

AbstractThe debate on the purpose of corporations has intensified over the past decade, compelling businesses to reassess their societal roles. To effectively integrate sustainability into corporate strategies, for-profit firms are increasingly encouraged to adopt a pro-social purpose (SP).However, adopting and integrating an SP is a substantial shift that necessitates an internal push from corporate actors. In particular, due to its function of strategic decision-making, the board of directors represents a pivotal player in promoting the adoption of an SP.This research delves into the impact of board characteristics on the likelihood of adopting an SP in for-profit firms. We examined 580 European firms employing propensity score matching and logistic regression methodologies. Our findings offer initial insights on the effect of the board composition on adopting an SP. In particular, we found that cultivating the directors’ network with employees, fostering gender and age diversity, and welcoming highly qualified directors on board are key factors in facilitating the adoption and implementation of an SP in EU for-profit firms.Our study represents the first attempt to quantitatively examine the relationship between the board and SP. By doing so, we contribute to the theoretical advancement of the complementarity of corporate governance and corporate purpose. Moreover, we encourage practitioners to accrue awareness of the board characteristics that facilitate the adoption of an SP within their firms.

Board Attributes and Corporate Social Responsibility: A Systematic Literature Review and Future Research Perspectives

The relationship between board attributes and corporate social responsibility (CSR) has gained considerable attention from academicians and researchers in the past few decades. This systematic literature review paper aims to analyse empirical evidence on the impact of board characteristics on CSR. A content analysis of 159 articles extracted systematically from the Scopus and WOS databases revealed a significant upsurge in the area in the last decade mainly in the past three years. It was found that a large majority of the existing works were single-country studies mainly from the developed nations; though cross-country works and research from developing countries have gained momentum in recent years. The study highlighted important trends in publication in the area, the most researched as well as less analysed board attributes, various measures of CSR variables, the type of sample organisations considered, and commonly used research techniques. The study makes a useful contribution to the extant literature by providing insight into the existing works and indicating knowledge gaps and future research perspectives. The findings of the study would also be useful for the policy makers and regulators in further strengthening the corporate governance codes and regulations, so as to help organisations in improving their social performance.

Board diversity and export intensity: the moderating role of firm size

PurposeBuilding on resource dependence theory and contingency theory (CT) and focusing on an emerging market setting, this study investigates how demographic board diversity (BD) influences the export intensity (EI) of firms listed on Borsa Istanbul (BIST), with the moderating effect of firm size, as a contingency factor, on this interaction.Design/methodology/approachUsing a sample of 65 exporting firms listed on the BIST Industrials Index, this study explores how demographic attributes of board members, represented by the board diversity index (BDI), affects EI by employing panel data analysis over the period of 2016–2020.FindingsThe results suggest that there is a negative relationship between BD and EI, but firm size has a positive moderating effect on the association of BD and EI, indicating that large firms with diverse boards are more prone to access foreign markets and make export. The findings further indicate that board size and CEO duality have a negative and significant effect on EI, while marketing intensity has a positive and significant impact.Research limitations/implicationsThe sample covers only public companies listed on the BIST Industrials Index, and the impact of board characteristics on the EI is analyzed for a limited time frame, i.e. from 2016 to 2020.Practical implicationsThe findings help business executives better understand the contribution of the firm size on the interaction of BD and EI and offers valuable insights to companies to gain a competitive edge in international markets.Originality/valueThe study provides evidence on the effects of board attributes on the EI from the perspective of emerging countries. It also helps to gain a deeper understanding of how board dynamics contribute to the internationalization of companies.

The Impact of Board Characteristics on R&D Intensity: The Case of Chinese Machinery Industry

The Impact of Board Characteristics on R&D Intensity: The Case of Chinese Machinery Industry

The impact of board characteristics and ownership structure on earnings management: Evidence from a frontier market

The impact of board characteristics and ownership structure on earnings management: Evidence from a frontier market

Impact of board characteristics on firm green, sustainability and competitiveness performances

This explores the association between corporate governance mechanisms and firm green, sustainability and competitiveness performances in the Philippines. To evaluate the association between board characteristics and firm green, sustainability and competitiveness performances, a two-step system generalized method of moments (GMM) was utilized. Board size, board independence, CEO duality, management shareholding, and multiple directorships are the characteristics examined. Firm green, sustainability and competitiveness performances is measured using indicators such as return on assets (ROA) and Tobin’s Q ratio. Outcomes denote that board size, multiple directorships, and leverage have negative statistical relationships with firm green, sustainability and competitiveness performances using ROA as a financial measure. Moreover, firm size has a positive statistical relationship with ROA. This accords with the recent literature on corporate governance mechanisms. Enigmatically firm size has negative and statistical relation with firm green, sustainability and competitiveness performances using Tobin’s Q ratio as a measure of financial performance. Leverage has also been found to be positively related to firm performance. The consequence of this study clamps significant implications for practitioners and policymakers in developing countries, specifically in the Philippines. This will postulate insights into the crucial role of corporate governance practices in improving the green, sustainability and competitiveness performances of firms and accentuate the necessity to establish and enforce strong corporate governance mechanisms and regulations.

The Impact of Board Characteristics on Firm Performance of Largest Listed Companies in Sri Lanka

The purpose of this study is to examine the relationship between selected board characteristics and firm performance on listed companies on the Colombo Stock Exchange (CSE) in Sri Lanka. The study is performed on 41 non-financial and financial year’s ended on 31st March listed companies of CSE according to the highest market capitalization as of 20th January 2020. Descriptive statistics, correlation analysis and multivariate regression analysis are used to analyze the relationship between selected board characteristics and firm performance. As per the findings of this study, board composition is positively associated with Return on Asset (ROA) and Return on Equity (ROE). However, the gender diversity of the board shows a negative relationship between ROA and ROE. Other selected board characteristics of this study (Board size, CEO duality, frequency of board meetings, directors’ shareholding, presence of nomination committee) demonstrate ambiguous results with ROA and ROE. The findings of the study are supportive for policymakers, especially the top-level management, and decision-makers in respect of obtaining strategic decisions about the firm to establish an effective board and evaluate the effectiveness of the board inside the firm. Moreover, it will be useful for regulators to strengthen prevailing governance mechanisms attributed to the board of directors (BOD). Additionally, the finding will contribute to narrowing the existing indefinite results regarding the relationship between board characteristics and firm performance.

Board Characteristics and Company Performance: A Case Study for the U.S.

This research aims to investigate corporate board structures and compositions, as well as their interrelationships. An empirical analysis on a sample consisting of 6,962 public traded U.S. corporations was conducted and the "isolation" consequences of board characteristics such as independence, financial expertise, and tenure on a company's earnings quality were examined. Furthermore, it was investigated whether and to what extent the tenure of outside directors influences the "isolation" effects of financial expertise and independence on earnings quality. The Modified Jones model was used to generate discretionary accruals, which were subsequently used to generate accrual-based earnings management. Firms with a more independent board and a higher proportion of outside directors with financial experience are found to have no effect on the degree of accrual-based earnings management. Outside directors' average tenure, on the other hand, has a negative and significant impact on earnings management. The study demonstrates that the average tenure of outside directors affects their independence as well as their financial expertise. Both have a statistically significant positive influence on accrual-based earnings management. This indicates that, even if outside directors are independent and there is at least one outside member with financial expertise on the board, the effectiveness of their monitoring decreases over time. In this study, the quality of earnings is examined using accrual-based earnings management models. The influence of these board qualities on real earnings management, however, has not been studied. As the usage of real earnings management has expanded in the post-SOX era, the utilization of these models is intriguing for future study pertaining to the effect of these characteristics. Furthermore, this study utilized and analyzed only a sample of large public U.S. enterprises, which are larger companies. Due to the SOX requirements to which these larger organizations are subject, this might contribute to a lack of diversity in the board makeup of these companies. This may have an effect on the regression findings by displaying low or non-significant effects. Future research may find it interesting to determine if there are differences between the effects of these governance qualities on earnings management for smaller and larger companies. Based on the findings, it is possible to conclude that when evaluating a firm's profits quality, it is critical to evaluate both the structure and makeup of the board, as well as the individual features of the outside members, such as their tenure. This study adds to the expanding corpus of research on the impact of board characteristics on corporate performance. It focuses on corporations situated in the United States, where corporate governance is a hotly debated topic, particularly after the enactment of SOX. It not only looks at the effect of these characteristics on earnings quality in "isolation", but it also responds to recent calls for researchers to look at the interaction of various board traits. It examines whether and to what extent outside directors' tenure influences the "isolation" consequences of financial expertise and independence on earnings management.

The impact of Board Characteristics on Firm Performance in Turkey

Objective: How to increase firm performance? This paper seeks to answer this question by analyzing the effect of some variables, especially board size and board independence with firm performance. In this regard, the current paper uses non-financial firms listed on Borsa Istanbul stock change between the period of 2013 and 2015.
 Methodology: On the other hand, the current research used random sampling of abovementioned firms which was listed on BIST. Correspondingly, to address the association among board characteristics (e.g. interlocking directors, size, and independence) and firm performance the present research adopted an agency theory as well as resource dependency theory. Plus, utilizing the descriptive statistics, relationship matrix tests, and linear multiple regression as the principal statistical tests via (STATA V.14 and SPSS V25).
 Findings: As a consequent, the current paper pointed out a various conclusion, most significant one shows that there is a positive association among the (board size, interlocking directors, board independence, and firm performance).
 Implications: Lastly, the current research suggested for future studies might address bigger sample, wider time frame, and further board of director’s characteristics for instant, age and nationality.

The impact of board characteristics on classification shifting: evidence from Germany

PurposeThis paper aims to examine the relationship between board characteristics (BCs) on classification shifting (CS) among listed non-financial German firms.Design/methodology/approachUsing 870 firm-year observations of German non-financial firms from 2010 to 2019 listed on DAX, MDAX and SDAX index, this paper examines the relationship between BCs (board size [BS], board meetings [BM], board independence [BI] and board gender diversity [BGD]) and CS.FindingsThis study found that managers of German firms use CS and move recurring expenses to non-recurring expenses to inflate their core earnings. Also, this study found that BCs including BS, BI and BGD have a mitigating effect on CS practices of German non-financial firms. However, the number of BMs does not influence earnings management.Practical implicationsThis paper recommends that German firms’ board must be constituted with more independent members and female representation because these board mechanisms help to curb CS.Originality/valueThe focus of this study is Germany, which is a bank-oriented economy with low transparency and investor protection. This paper provides new evidence on how BCs impact CS among German firms, whereas previous CS studies focused mainly on market-oriented economies like the USA and the UK.

The Impact of Board Characteristics on Earnings Management Practices Through Real Activities: Evidence from The Egyptian Environment

This research aims to demonstrate the relationship between the board of directors’ characteristics and the practices of real earnings management in the companies operating in the market. results: The existence of a statistically significant relationship between the board of directors characteristics and earnings management with real activities through sales, the existence of a statistically significant relationship between the board of directors characteristics and real earnings management activities through production, the necessity of establishing the National Authority for Governance of Business and Governmental Establishments with the aim of eliminating financial, administrative, economic and political corruption at the level of The state.

The impact of board characteristics on firm's financial performance: A study on non-bank financial institutions of Bangladesh

The impact of board characteristics on firm's financial performance: A study on non-bank financial institutions of Bangladesh

Research on the Impact of Board Governance Model Based on Multi-Internet of Things Perception System on System Risk of Large Business Institutions in China

Corporate governance structure is a subject of great theoretical and practical significance, especially the impact of board characteristics on corporate performance, which has been the focus of scholars’ attention. However, due to the particularity of China’s commercial institutions, especially the state-owned commercial institutions in the transition economy, which have a strong government-led color in system, commercial institutions mainly rely on strengthening the governance of the board of directors to improve the effectiveness of their internal governance. Based on the basic principles of the Internet of Things (IOT) business environment, this paper divides the architecture of multiple IOT perception system into perception domain and business domain. This paper studies the development mode of the economic and business perception system stage of the Internet of Things: the primary stage, the growth and maturity stage, and the integration stage. Strengthen the establishment of an independent director system, create an environment in which independent directors exercise full power, strengthen penalties for violations of directors, strengthen the integrity of directors, and establish a scientific and reasonable board evaluation mechanism. The effective operation of enterprises is based on the perfect market rules and a good market order. The reform of state-owned enterprises with the core of establishing a modern enterprise system and improving corporate governance structure must be carried out simultaneously with the construction of market systems.

Impact of board characteristics and ownership structure on firm performance: empirical evidence from India

This study attempts to assess the empirical relationship between corporate governance and the financial performance of firms in the Indian context by using a set of board and ownership characteristics as representatives of corporate governance practices. We employ a panel dataset comprising of a large sample of 1,347 Indian non-financial companies for the period 2010 to 2018. For studying firm performance, we use both accounting-based performance measures like return on assets (ROA) as well as market-based performance measures like Tobin's Q (TQ). Starting from the basic static panel estimation approach using the fixed-effects estimator, we gradually move on to dynamic panel estimation using different GMM and system GMM estimators to examine the various board characteristics that influence firm performance in India. Based on our final model estimated using system GMM, we infer that on one hand, board size, board activity, and promoter ownership are found to positively influence firm performance while on the other hand, board meetings are found to be negatively related to firm performance. For policymakers and corporates, our study provides valuable insights into the specific aspects of corporate governance that can be targeted and implemented effectively to improve the financial performance of firms.

The Impact of Board Characteristics on Audit Quality, Evidence-based on Listed Firms in Ghana

This paper examines board characteristics' impact on audit quality, evidence from Ghana Stock Exchange. The study employed a panel regression model to examine the effect of board characteristics (board size, board independence, gender diversity, and CEO duality) on audit quality (DAC) for the period of 2012 to 2019 for twenty-five (25) listed firms in Ghana. The regression analysis results revealed that board size, board independence, and board gender diversity have a positive relationship with audit quality by reducing discretionary accruals. In contrast, a negative relationship was recorded between CEO duality and audit quality in the form of an increase in discretionary accruals. The shareholder accountability system and minority protection system in most enterprises in Ghana seem to exist only but need more improvement. Therefore, it is recommended that a more independent board of directors is appointed and also the engagement of auditors from the big4 audit firms to provide quality audit reports.

The Impact of Board Characteristics on Earnings Management Practices: Evidence from Egypt

The Impact of Board Characteristics on Earnings Management Practices: Evidence from Egypt