scholarly journals Does CEO duality affect board independence? Moderating impact of founder ownership and family blockholding

2021 ◽  
Author(s):  
Shashank Bansal ◽  
M. Thenmozhi
Keyword(s):  
Board Independence ◽  
Ceo Duality

Board diversity and firm risk-taking in the tourism sector: Moderating effects of board independence, CEO duality, and free cash flows

2021 ◽  
pp. 135481662110143
Author(s):  
Ozgur Ozdemir ◽  
Ezgi Erkmen ◽  
Fatemeh Binesh
Keyword(s):  
Risk Taking ◽  
Composite Index ◽  
Cash Flows ◽  
Board Independence ◽  
Firm Risk ◽  
Board Diversity ◽  
Ceo Duality ◽  
Reduction Effect ◽  
Task Oriented ◽  
Free Cash Flows

This study examines the effect of board diversity on risk-taking for tourism firms and analyzes the moderating effect of board independence, CEO duality, and free cash flows in this proposed relationship. Using a composite index of board diversity and a sample of tourism firms from the US hotel, restaurant, and airline industries, we find that greater board diversity leads to lower risk-taking, measured in standard deviation of return on assets. Moreover, we report that the risk-reduction effect of board diversity is more profound when tourism firms have less board independence and less free cash flows for investments. When board diversity is decomposed into relation-oriented and task-oriented diversity attributes, we find that only the task-oriented diversity is influential in reducing firm risk-taking for tourism firms. Akin to main analysis, the board independence and free cash flows are significant moderators of the relationship between task-oriented diversity and firm risk-taking.

scholarly journals Board Attributes and Corporate Social Responsibility Disclosure: A Meta-Analysis

2018 ◽  
Vol 10 (12) ◽  
pp. 4808 ◽  
Author(s):  
Jaime Guerrero-Villegas ◽  
Leticia Pérez-Calero ◽  
José Hurtado-González ◽  
Pilar Giráldez-Puig
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Meta Analysis ◽  
Negative Relationship ◽  
Board Independence ◽  
Board Size ◽  
Ceo Duality ◽  
Capital Costs ◽  
Corporate Social Responsibility Disclosure ◽  
Corporate Social

Many studies have examined the relationships between board attributes (board independence, CEO duality, board size, and women on boards) and corporate social responsibility disclosure (CSRD) as a means to improve a firm’s reputation. This research was performed in various international settings and uneven outcomes were obtained. We therefore meta-analyzed 88 studies to summarize scattered evidence and found that CEO duality had a significantly negative relationship with CSRD, while board independence, board size and women representation had a significantly positive relationship with CSRD. These relationships were more significant in countries with low levels of commitment to sustainable goals. Thus, our study revealed differences in the relationship between board attributes and CSRD, and that these differences were conditioned by the institutional contexts in which firms operate. Our research has practical implications for practitioners and policy makers alike as we offer guidelines on the most suitable corporate governance mechanisms to achieve lower capital costs and better access to finance.

Firm ownership and board characteristics

2015 ◽  
Vol 6 (2) ◽  
pp. 138-165 ◽  
Author(s):  
Mohammad Badrul Muttakin ◽  
Nava Subramaniam
Keyword(s):  
Developing Economies ◽  
Positive Impact ◽  
Foreign Ownership ◽  
Board Independence ◽  
Government Ownership ◽  
Ceo Duality ◽  
Content Type ◽  
Firm Ownership ◽  
Board Characteristics ◽  
Csr Disclosure

Purpose – This paper aims to examine whether the extent and type of corporate social responsibility (CSR) disclosures made by Indian public listed companies are associated with firm ownership and board characteristics. Design/methodology/approach – Data analysis is based on the top 100 companies listed on the Bombay Stock Exchange (2007-2011) using a 17-item CSR disclosure measure. Findings – The extent of CSR disclosure is positively associated with foreign ownership, government ownership and board independence and negatively associated with CEO duality. Promoter ownership has a negligible effect on the extent of CSR disclosure. In terms of the type of CSR disclosure, community information increases with government ownership and board independence, while environmental information expands with foreign ownership and board independence. Information on employees/human resources has a positive association with foreign ownership but decreases with CEO duality. The amount of product and services information increases with promoter ownership, foreign ownership and board independence and CEO duality. Practical implications – Given the positive impact independent directors have on the extent of CSR disclosure, their role can be further strengthened in terms of overseeing quality of information disclosed. Stakeholders and regulators will need to develop greater awareness of firm CSR disclosure biases associated with ownership and more carefully scrutinize firm CSR activities that firms are “not” reporting on. Originality/value – Empirical evidence on the link between corporate governance and CSR disclosure from a developing nation context is limited. This paper provides much needed evidence in this area from India – one of the largest, rapidly developing economies in the world.

Family Ownership, Board Independence, and R&D Investment

2009 ◽  
Vol 22 (4) ◽  
pp. 347-362 ◽  
Author(s):  
Hsiang-Lan Chen ◽  
Wen-Tsung Hsu
Keyword(s):  
Corporate Governance ◽  
Investment Decisions ◽  
Family Influence ◽  
Family Ownership ◽  
Board Independence ◽  
Independent Director ◽  
Asian Countries ◽  
Ceo Duality ◽  
D Investment

Family influence is central in Asian countries; however, little research exists regarding the effects of family ownership and corporate governance on corporate investment decisions. This article examines the relationships among family ownership, board independence, and R&D investment using a sampling of Taiwanese firms. The finding of the negative family ownership—R&D investment relationship suggests that family ownership may discourage risky long-term R&D investment. Such a finding may also suggest that firms with high family ownership may use R&D investment more efficiently and thus need less R&D in relation to firms with low family ownership. In addition, the interaction of family ownership and CEO duality/independent director ratio is negatively/positively related to R&D investment, suggesting that firms with high family ownership may increase R&D investment when the CEO—chair roles are separated or when more independent outsiders are included in the board.

scholarly journals The effect of corporate governance on financial performance of rural banks in Ghana

2021 ◽  
Vol 2 (4) ◽  
pp. 305-319
Author(s):  
Alhassan Musah ◽  
Mavis Yaa Adutwumwaa
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Gender Diversity ◽  
Secondary Data ◽  
Positive Association ◽  
Board Independence ◽  
Governance Structures ◽  
Board Size ◽  
Ceo Duality ◽  
Board Gender Diversity

Purpose: The study examined the influence of various corporate governance structures such as board size, board independence, board gender diversity and CEO duality on the financial performance of rural banks in Ghana. Research methodology: The study collected secondary data from the annual report of 30 rural banks for a 10-year period spanning 2010 to 2019. The data was coded into excel and exported into STATA where descriptive statistics, correlation analysis and regression analysis were adopted to answer the research questions. Results: The result shows that there was a positive but statistically insignificant association between CEO duality and ROA and ROE. The study further reveals a positive association between board size and ROA and ROE even though that of ROA was statistically insignificant. Also, board independence was found to be a significant determinant of rural bank financial performance In addition to the above, the study reported a negative association between gender diversity on the boards of the rural bank and ROA and ROE and both associations were statistically significant. Limitations: As a result of the lack of publicly available data on rural banks in Ghana, the study relied on only 30 out of the over 100 rural banks currently operating across the country. Contribution: The result of the study will help the Bank of Ghana and the ARB Apex Bank in their formulation of an appropriate corporate governance framework for rural banks in Ghana and enlighten managers of rural banks on corporate governance structures that enhance their financial performance in Ghana. Keywords: Corporate governance, Rural banks, Return on Assets, Return on Equity, Ghana

scholarly journals The Impact of Governance Rules on Earnings Management: Applied Study on Industrial and Service Companies Listed on Palestine Stock Exchange

2019 ◽  
pp. 103-136
Author(s):  
Yousef Alrayyes ◽  
Nahed Al Khaldy
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Stock Exchange ◽  
Negative Influence ◽  
Positive Influence ◽  
Board Independence ◽  
Independence Property ◽  
Ceo Duality ◽  
Board Directors ◽  
The Impact

The aim of the study is to analyze the impact of corporate governance rules on earnings management for companies listed on Palestine Exchange. A number of corporate governance variables was selected to achieve this aim, including size of board of directors, CEO duality, board of director’s independence, property rights, number of board directors’ meetings. Modified Jones Model has been used to detect earnings management. Panel Data Model has also been involved in the study, where the population study consists of the 48 companies listed on Palestine Exchange, and which are distributed across five main sectors. The study sample included 13 industrial and services companies listed on Palestine Exchange. This study found that there was a negative influence between board size and CEO duality, and between earnings management. The study also showed that there is a positive influence between board independence and earnings management. Moreover, it showed that no relationship between board directors meetings and internal ownership with earnings management. The study stressed on the need for continued reinforcement of the governance rules, in order to avoid the negative impacts resulted from failure to apply these rules, taking into consideration the support of board independence in their relationship with areas of executive work to avoid taking decision that may affect earnings management. It also recommended that doing other researches on the same subject should be continued, taking into account the examination of variables other than those in this study to get to the variables that have the greatest impact on earnings management for companies listed on Palestine Exchange. 

scholarly journals Relation of Corporate Governance with Financial Performance

2014 ◽  
Vol 40 ◽  
pp. 35-40
Author(s):  
Naveed Ahmad ◽  
Nadeem Iqbal ◽  
Muhammad Sulaman Tariq
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Audit Committee ◽  
Insurance Industry ◽  
Board Independence ◽  
Positive Direction ◽  
Ceo Duality ◽  
Return On Equity ◽  
Firm Financial Performance

The intention of the work is to prove that corporate governance is essential to uninterrupted operation of any corporation, while more consideration to the process such that governance. Hence it is transparent what is commonly intermediate by corporate governance. This work proves a link with the corporate governance and firm financial performance in insurance industry of Pakistan. It included three variables which are Audit committee independence, board independence and CEO duality for corporate governance. The degree of firm’s performance is limited by return on equity and asset. This work gives a positive direction for exploring this concept.

scholarly journals The effects of board mechanisms and ownership on the relationship between CEO duality and earnings management in China’s listed companies

2014 ◽  
Vol 11 (4) ◽  
pp. 18-27
Author(s):  
Philip T. Lin
Keyword(s):  
Factor Analysis ◽  
Earnings Management ◽  
Audit Committee ◽  
Positive Relationship ◽  
Board Independence ◽  
Ceo Power ◽  
Ceo Duality ◽  
Management Board ◽  
Conflicting Evidence ◽  
The Relationship

The question of whether CEO duality contributes to or constrains earnings management has been debated for decades. Yet there is conflicting evidence in previous literature, this paper firstly finds that CEO duality are positively related to earnings management in China’s unique environment. Secondly our empirical evidence suggests that internal and external board mechanisms can moderate CEO duality’s effects on earnings management. Board mechanisms, i.e. board independence level and audit committee can moderate the positive relationship between CEO duality and earnings management. Furthermore, the factor analysis shows that certain combination of board mechanisms can also mitigates the effects of CEO power on earnings management.

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