Analisis Karakteristik Dewan Direksi dan Struktur Kepemilikan terhadap Manajemen Laba Perusahaan di BEI 2016-2020

This study aims to investigate the influence of women's boards of directors on earnings management. The dependent variable in this study is earnings management using the Discretionary Accruals measurement method with the Modified Jones Model. The independent variables used are women board of directors, board size, board independence, audit quality, family ownership, blockholder ownership, leverage, Return on Assets (ROA), and firm size. This study used a data sample of 381 companies with the period of 2016 to 2019 with a purposive sampling method. The research data tested by panel regression testing using Eviews and SPSS application. The results of this study are women board of directors, board size, board independence, audit quality, family ownership, blockholder ownership, and firm size do not have a significant effect on earnings management. Meanwhile, leverage has a significant negative effect on earnings management and Return on Assets (ROA) has a significant positive effect on earnings management.

Corporate board structures and intellectual capital: evidence from banks in Africa

PurposeThis study examines the nature of the relationship between board structures (BSs) and intellectual capital (IC) of banks in Africa.Design/methodology/approachUsing annual data from financial statements of 366 banks from 26 African countries from 2007 to 2015, the study estimates IC using the value-added intellectual coefficient (VAIC) and BSs using board size, board independence and board gender diversity. The system generalized method of moments and panel-corrected standard error estimation strategies are used to estimate panel regressions.FindingsThere is a significant negative relationship between board independence and intellectual capital. The results also indicate that the IC of banks does not depend on board size and board gender diversity.Practical implicationsThe study's findings provide evidence of the extent to which BSs have been instituted to support investments in intellectual capital as a means of improving the performance of banks in Africa.Originality/valueThis study provides some empirical evidence from Africa's banking sector to justify that banks with better IC have boards that are less independent. This study is one of the few studies that employs many countries' data.

Increasing shareholder focus: the repercussions of the 2015 corporate governance reform in Japan

The corporate governance reform promulgated in 2015 in Japan has contributed to a substantial increase of board independence and a reduction of average board tenure. Our empirical analysis covering 3405 public companies demonstrates that reinvigorated corporate oversight and an increasing post-reform shift towards prioritization of shareholder value have led to a persistent increase of corporate profitability, asset productivity, dividend payouts, acquisitions’ value, and valuation multiples. We also document a significant increase of sensitivity of executives’ and directors’ compensations to the dynamics of firms’ bottom lines. The positive changes are the most pronounced within companies where independent directors constitute a majority on the board. The most notable drawbacks of the reform are a significant reduction in net employment creation and in employee turnover within the largest companies. These might be a possible reason for the documented improvement in corporate performance. The number of part-time employees has also seen a significant increase. While being prima facie focused on reinvigorating the private sector, the corporate governance reform may implicitly undermine the established social contract based on job security. Therefore, our study is important from the perspective of sustainable development of the corporate sector as it demonstrates that while concentrating on improving corporate governance, it is also necessary to consider the business’ social responsibility.

COVID-19 Disclosure: A Novel Measurement and Annual Report Uncertainty

This paper provides a unique COVID-19 disclosure measurement and investigates the association between the level of COVID-19 disclosure and uncertainty within annual reports for UK FTSE-All share non-financial firms. We used automated textual analysis to score the sampled annual reports. The results show that the level of COVID-19 disclosure varies from industry to industry. Furthermore, there is a positive relationship between COVID-19 disclosure and uncertainty in annual reports. Firms with larger boards exhibit more significant uncertainty in annual reports with COVID-19 disclosure. However, the significance of uncertainty in annual reports with COVID-19 disclosure remains at the same level with different board independence percentages. The unique findings of this paper are extremely relevant to governments, shareholders, policymakers, suppliers, and creditors.

Board Characteristics and Financial Performance of Government-Owned Sugar Manufacturing Companies in Kenya

The board of directors is tasked with the obligation and the responsibility of administering changes and operations that support the mission of the organization to realize its vision. Kenya in the recent past, has witnessed a number of organizations listed in the NSE collapsing with the board of directors taking the blame. Specifically, the study sought to establish the association between; board diversity, board independence, board size and financial performance of government-owned sugar manufacturing companies in Kenya. The study sought to determine whether firm attributes have a moderating impact on the relationship between board characteristics and financial results of Kenyan government-owned sugar manufacturing companies. The study adopted the Agency Theory and Stewardship Theory. The study targeted the Government-Owned Sugar manufacturing companies in Kenya during the years 2000 to 2016 when the companies were operational. The study used secondary data where panel data was used. The findings indicated that board diversity and financial performance of government-owned sugar manufacturing companies. In addition, board independence and financial performance of government-owned sugar manufacturing companies was also significant. Board Size had a positive but insignificant relationship with financial performance of government-owned sugar manufacturing companies in Kenya. Firm attributes had no significant moderating effect on the relationship between board characteristics and financial performance of government-owned sugar manufacturing companies. The study recommended that the board members should consist of at least half gender diversity of the board members as determined by the board based on the requirements stipulated by the trade authority. Further, the study recommended that the board members must be independent directors, and their independence should be continuously maintained and reviewed at least annually. Keywords: Board Diversity, Board Independence, Board Size, Firm Attributes & Financial Performance

Analyze the Determining Factors of Manager Efficiency in the Generation of Operating Cash Flow

According to the objectives of financial reporting, particularly stewardship objective, the aim of this study is to assess the manager's efficiency of listed firms in the Tehran Stock Exchange in the generation of operating cash flow on the basis of data envelopment analysis (DEA) during the period 2013 to 2019. In this survey, for research hypotheses testing, multivariate regression was employed. The research results indicated that the level of manager efficiency in the generation of operating cash flow is very low and has a decreasing trend. Also, the evidence demonstrated that factors including profitability, CEO's financial knowledge, and percentage of shares owned by institutional shareholders have no significant correlation with the managers' efficiency. Nevertheless, company size, financial leverage, board independence, and competitiveness have a significant correlation with the managers' efficiency in the generation of operating cash flow. Meanwhile, company size has a negative correlation with managers' efficiency and a positive correlation with the remaining items.

Corporate governance and firm value: a study on European financial institutions

PurposeThe purpose of this paper is to examine the impact of the characteristics of two corporate governance mechanisms, namely, board of directors and ownership structure, on the firm value of European financial institutions.Design/methodology/approachUsing the market-to-book ratio calculated by the Thomson Reuters Eikon ASSET4 database, this study measures the firm value of 111 financial institutions belonging to 12 European countries listed on the stock exchange during the period 2007–2019. Multivariate regression analysis on panel data is used to estimate the relationship between corporate governance attributes, such as board size, board independence, board gender diversity, ownership concentration and CEO ownership, and the firm value of European financial institutions.FindingsThe empirical results reveal that board gender diversity and CEO ownership are positively related to the firm value, whereas board size and ownership concentration are negatively related. Furthermore, the findings suggest that board independence is insignificantly correlated with the firm value. Regarding the control variables, the results show that financial institutions' size, age and legal system are significant factors in changing the firm value. Nevertheless, financial institutions' leverage and activity sector are not significantly correlated with their value.Originality/valueThis research contributes to the literature by providing the significant links between some corporate governance mechanisms and the firm value of companies from the financial industry, by addressing the information gap for this critical industry in the context of a developed market like Europe.

BOARD INDEPENDENCE, CORPORATE SOCIAL RESPONSIBILITY AND FIRM PERFORMANCE: EVIDENCE FROM CHINA

The purpose of this paper was to investigate the relationship between board independence and the firm performance of Chinese firms listed in the Shanghai Stock Exchange, under the moderating role of Corporate Social Responsibility (CSR). A total of 860 firm-year observations over a period of ten years, that is from 2010 to 2019 was collected. The panel data regression technique was employed to analyze the data and determine the relationship between board independence and the firm performance of the Chinese firms under investigation. After a robustness check, the empirical results showed that the level of the CSR moderated (reduced) the positive relationship between board independence and firm performance. Therefore, the results seemed to imply that although the CSR has been seen as a useful business strategy, the level of the CSR in China still needed to be improved. In order to improve firm performance through practicing the CSR, the Chinese government and enterprises should be encouraged to continuously improve the level of the CSR.