Role Of Board Characteristics Research Articles

Regaining Legitimacy Post Product Recalls and Role of Board Characteristics

Regaining Legitimacy Post Product Recalls and Role of Board Characteristics

On the road to sustainability: The role of board characteristics in driving ESG performance in Africa

This paper investigates the relationship between board characteristics and environmental, social, and governance (ESG) performance by analyzing 109 firms listed in the African Stock Exchanges from 2016 to 2022. Our findings indicate that board independence, as well as board gender diversity and specific skills, are associated with higher levels of ESG performance. In contrast, larger boards tend to diminish ESG performance in Africa. We also found that the presence of a sustainability committee and a corporate governance committee contributes to driving positive ESG outcomes. This study provides relevant insights and yields significant implications for policymakers and companies, suggesting the need to increase sustainability concerns in their agendas to foster sustainable economic growth in Africa.

The Impact of Climate Risk Disclosure as Risk Management Tool on Firm Financial Performance: The Role of Board Characteristics “Evidence from an Emerging Environmental Regime”

The Impact of Climate Risk Disclosure as Risk Management Tool on Firm Financial Performance: The Role of Board Characteristics “Evidence from an Emerging Environmental Regime”

Corporate Social Responsibility and Company Performance: The Role Of Board Characteristics

This research seeks to explore how the implementation of social responsibility practices impacts a company's performance and to investigate whether certain characteristics of the board play a moderating role in this relationship. The study collected data from 43 companies listed on the Indonesia Stock Exchange (IDX) that engaged in social responsibility activities during the period from 2017 to 2022. The analysis employed panel regression techniques. The findings of the study indicate a noteworthy negative correlation between corporate social responsibility (CSR) and return on assets (ROA). Conversely, the relationship between CSR and Tobin's Q is found to be statistically insignificant and positive. Moreover, the number of directors does not appear to moderate the relationship between CSR and company performance, whether measured by ROA or Tobin's Q. Similarly, independent commissioners do not seem to moderate the relationship between CSR and company performance when measured by ROA, but they do exhibit a moderating effect in the context of Tobin's Q.

Corporate governance and the choice between bank debt and public debt

Purpose This study aims to examine the impact of board characteristics on debt choice. Design/methodology/approach The sample comprises of unique nonfinancial firms listed in the FTSE 350 over the period 2011–2018. This study uses Tobit and OLS regressions to check the impact of board characteristics on debt choice. The results are robust to the battery of robust checks. Findings This study finds that board size and board independence are positively associated with public debt. However, CEO duality and board meetings frequency are inversely associated with public debt. Overall, the findings are consistent with the “financial intermediation theory” that the firms with weak governance rely on bank financing, and firms with better corporate governance go for public debt. Research limitations/implications This study offers significant insights for investors and policymakers. Originality/value This study offers new insights regarding the role of board characteristics in firms’ debt choice by showing the significant impact of board characteristics on debt choice. The findings indicate that the board’s efficient internal monitoring may substitute external monitoring by the bank.

Environmental disclosures by Indian companies: role of board characteristics and board effectiveness

Environmental disclosures by Indian companies: role of board characteristics and board effectiveness

Corporate Environmental Information Disclosure in India: Role of Board Characteristics

This research paper intends to observe the influence of board characteristics, namely, Board Size (BS), Board Independence (BI), Board meetings (BM), CEO duality (CD), firm-size (FS), Tobin Q, and ROAon environmental information disclosure. Environmental information has been measured through their availability in annual reports of particular companies. We have used panel data of 60 environmentally most polluted companies listed on the Bombay Stock Exchange from 2017 to 2021. The data has been analyzed using a regression model and tested through the feasible generalized least square (FGLS) regression technique. Our study indicates that Board Size (BS), CEO duality (CO), Board Meetings (BM), Tobin Q & ROAhave a substantial influence on environmental information disclosure, whereas board independence and size of firms do not influence environmental information disclosure. Agency theory discusses that board size (BS) has a negative association with environmental information, but it opposes the empirical work of Ezhilarasi & Kabra (2017) & Pareek et.al. (2019).Further, Al-Janadi et al. (2012) argue that CEO Duality (CD) and environmental information disclosure have significantly positively linked. The study recommends that environmental information disclosure is obligatory, specifically for environmentally sensitive companies in their periodic reports. In addition, governmental establishments should offer a transparent and standard guideline on disclosing environmental information to ensure responsible business.

Does Going Public Affect the CEO-Employee Pay Disparity? The Role of Board Characteristics

We examine how going public via an IPO impacts the compensations of the CEO and average employees and the resulting pay disparity, and what board characteristics matter for this relation. Using a sample of Swedish firms from 2005 to 2017 and the difference-in-difference method, we find that pay levels of employees and the CEO is higher after IPO compared to the pre-IPO in IPO firms than in matched private firms, but the increase in the compensation of the CEO is substantially higher than that of average employees, leading to an increase in the CEO-employee pay dispersion. Examining the board characteristics, we find that venture capital board membership and board IPO experience can mitigate the increase in CEO-worker pay dispersion after the IPO. The results suggest the board characteristics that allow for more effective monitoring of the firm compensation system during and after IPO and have important theoretical implications for the literatures on IPO and pay disparity.

The Role of Board Characteristics in Effective Corporate Governance: The Case of Airbus Group

Recent financial crises, economic collapses, and the fall of giant corporations due to accounting fraud and governance irregularities has brought corporate governance to the limelight especially with regard to the role of the board of directors. The board of directors is charged with monitoring and advising management and likewise providing strategic direction for the corporation. Board characteristics are instrumental towards the effective implementation of corporate governance principles in firms. This study evaluates the influence of board characteristics of; board composition and independence, board size, board diversity, board meetings and committee structure on effective corporate governance practices in Airbus group. This paper adopts a qualitative approach through which secondary data obtained from the corporate governance report of the board of directors for 2015 is analyzed. The findings of the study highlight the significance of key board characteristics features in ensuring effective corporate governance practices. Therefore the implication of this study is for corporations to apply recommended board characteristic features which serve as a catalyst towards effective corporate governance in corporations.

The Role of Board Characteristics in Effective Corporate Governance: The Case of Airbus Group

Recent financial crises, economic collapses, and the fall of giant corporations due to accounting fraud and governance irregularities has brought corporate governance to the limelight especially with regard to the role of the board of directors. The board of directors is charged with monitoring and advising management and likewise providing strategic direction for the corporation. Board characteristics are instrumental towards the effective implementation of corporate governance principles in firms. This study evaluates the influence of board characteristics of; board composition and independence, board size, board diversity, board meetings and committee structure on effective corporate governance practices in Airbus group. This paper adopts a qualitative approach through which secondary data obtained from the corporate governance report of the board of directors for 2015 is analyzed. The findings of the study highlight the significance of key board characteristics features in ensuring effective corporate governance practices. Therefore the implication of this study is for corporations to apply recommended board characteristic features which serve as a catalyst towards effective corporate governance in corporations.

Is top-management remuneration influenced by board characteristics?

Purpose– The purpose of this article is to examine if certain board characteristics have an impact on the total remuneration of top management and the ratio of stock-based remuneration to total top-management remuneration.Design/methodology/approach– The study draws on data from the largest public Canadian companies, the constituents of the TSX/60 index. The study controls for firm size and profitability.Findings– The authors concludes that total remuneration of top management is directly linked to board-member total remuneration and the board average number of director-tenure years. The study also shows that the ratio of stock-based to total top-management remuneration is positively affected by the percentage of independent directors, total remuneration of board directors, the ratio of stock-based remuneration of directors to their total remuneration and the average number of tenure years of the board of directors.Practical implications– If regulators are determined to curb the excesses in top-management remuneration by means of promoting boards with certain characteristics, they should implement measures facilitating the control of directors’ remuneration and tenure, to discourage cronyistic behavior. Good corporate governance requires that the board act as a counterbalance to top management, ensuring that a substantial percentage of top-executive total compensation is variable, and not fixed. According to our findings, the boards that are the most likely to hold managerial avoidance of variable pay in check are those favoring director independence, variable director remuneration and longer director tenures.Social implications– The present article examines specifically the latter aspect, namely, the role of board characteristics (independence, size, compensation, board director ownership and tenure, etc.) in the determination of top-management compensation. This relationship is important because it allows us to further the analysis of corporate governance. If the above-mentioned traits of boards have a meaningful relationship with the compensation of the top management, one might conclude that certain practices in the composition of boards could influence good corporate governance practices. This is relevant for regulatory agencies, for investors and for corporations.Originality/value– The article adds to the extant literature in a number of ways. Firstly, it considers the role of the traits of the board in the determination of the compensation of the top-management teams, and not only of the chief executive officer, as is the focus of previous literature. Secondly, the article focuses on the power interplay between boards and managers, and, more particularly, on the ability of boards to be an effective mechanism of corporate governance. Finally, the article examines the potential impact of board traits in the determination of top-management compensation in the context of Canadian firms, a subject that has received less attention from academic research, which has mostly concentrated on analyzing the issue in the US context.