Director attributes and institutional investor choices: evidence in Latin America

PurposeThis paper examines how the board of directors' attributes in terms of educational and professional backgrounds –that is board capital-, and demographics influence institutional ownership across listed companies in Latin America.Design/methodology/approachBased on unique hand-collected information of directors' educational and professional attributes across 427 firms in Latin America, the authors analyze the effects of directors' educational attainment, professional experience and demographic diversification on institutional investors' holdings.FindingsResults show that grey investor ownership favors directors with graduate studies and diverse boards regarding gender and nationality. Independent investors value the directors' professional experience like former founders of a firm. Grey investors are more concerned with firm corporate governance mechanisms, consistent with the agency view. In contrast, independent institutional investors focus on business opportunities following the board of directors' resource-based view.Research limitations/implicationsThis study shows that board capital becomes a key determinant for institutional ownership in emerging markets.Originality/valueThis study extends previous literature on institutional investor preferences by providing empirical evidence that firm board capital becomes a collective asset that is central for institutional investors' investment choices for an emerging market case.

Board Capital Effect on Firm Performance: Evidence from Indonesia

Human capital effects have been ignored as important resources to induce the organization’s performance in firm-level research. The proponents of human capital theory and resource-based view theory argue that the human resources attached to each board member, such as networking, education, and experience, might induce the performance. Yet, agency theory argues those strategic resources might bring higher transaction costs and entrenchment costs. Therefore, this study aims to examine the board's capital effect on firm performance for a sample of 252 listed firms in Indonesia over 2011–2017. Using dynamic GMM panel regression, we confirm the hypothesis about board capital and performance. The results imply that board members’ networking and experience are two important factors for firm performance. However, boar members’ education does not give any impact. It confirms prior theories whereby the capability and competency of directors are an important source for the firm to achieve its objective. Networking and experience might help the firm to avoid financial distress. It furthers implies that shareholders should choose board members with a high level of networking and experience, not education.

Board Capital and Board Effectiveness: An Examination of Florida Community Foundations

Community foundations have considerable potential for positive social change in the communities they serve yet are understudied in nonprofit management literature. This exploratory study considers board capital of community foundations and the impact this has on board effectiveness. Based on survey data from 71 community foundation board members and executive directors representing 13 community foundations, the study uses regression to test hypotheses. The study finds that board capital, measured by human capital, structural capital, and social capital, plays a factor in board effectiveness. Further, community foundation boards in the survey population are highly effective and have unique attributes that make them distinct from other types of boards. Findings have potential for significant insight on an important segment of nonprofit sector organizations.

Determinant of The Corporate Social Responsibility Disclosure: Evidence of Indonesian Manufacturing Companies

Following the necessity to provide transparent information on social activities, corporate social responsibility (CSR) disclosure is important for companies in Indonesia. This study aims to examine and analyze the effect of information ofCEO Power (CEOP), Board Capital (BCAPDUM), Media Disclosure (PMED), and Profitability (ROA) on CSR. This research usedmanufacturing companies listed on the IDX in 2016 as the subject. Using thepurposive sampling method, 26 companies were selected as the research sample. Research findings showed thatCEOP, PMED, and ROA haveastatistical effect on CSR disclosure, whereas BCAPDUM has no effect on CSR disclosure. Therefore, CEOP, PMED, and ROA have a positive and significant effect on CSR disclosure. Keywords: CEO Power, Board Capital, Media Disclosure, Profitability, CSR

Does Gender Diversity on Board Promote Corporate Social Responsibility? An Empirical Analysis of Sustainable Development Goals

Recent regulatory changes in India require the firms to improve the appointment of female directors on corporate boards, and it is believed that such a regulation would prove to be a boon in terms of strategic decision making. The Board Capital Theory advocates that the appointment of women directors on board shall enhance various dimensions of the board capital breadth and help in better decision making. With growing consciousness for sustainable practices throughout the globe, it is pertinent to see whether the gender diverse boards can promote corporate social responsibility and create a business case for their upsurge, as it would give room for policy implications. This study investigates the impact of gender diverse boards on promoting corporate social responsibility, using multivariate regression with a sample of NIFTY 50 Index for the period 2014-2019. The study found insignificant positive relation among gender-diverse boards and sustainability. To check for the robustness of the study, we have used two diversity indices, Blau & Shannon index, to supplement our results.

Empirical Study on the Influence of Cultural Distance and Board Capital on the Performance of Foreign Direct Investment of Beijing’s Cultural and Creative Enterprises

Based on the background that China enterprises are becoming more and more active in capital operation in the international scope, this paper selects 14 cultural and creative enterprises in Beijing as the research objects, and analyzes the relationship between cultural distance, geographical distance, capital elements of the board of directors and enterprises' FDI performance. This paper crawled data from the stock exchange and other websites, and further used SPSS data processing software to model and analyze the data obtained, and obtained the empirical research results as follows. The empirical results showed that cultural distance and geographical distance were significantly negatively correlated with FDI performance, which was consistent with the original research hypothesis of the paper. And among the capital factors of the board of directors, the gender diversity, education level, scale and internationalization degree of the board are significantly positively correlated with FDI performance. Finally, the corresponding conclusions and Suggestions are put forward according to the empirical analysis results.