Intellectual capital myths: Comments on literature review

This article contributes to the growing body of literature exploring the important role that information transparency plays in strengthening the national corporate governance regime. We review the 2007 amendments to the Canadian reporting legislation with the particular emphasis on sections pertaining to executive compensation and boards of directors. Taking into consideration the specificities of the „comply-or-explain‟ system in Canada, we seek to uncover the extent to which publicly-listed firms comply with these newly amended standards of corporate governance reporting. Based on a comparison of 403 proxy circulars issued in the post-amendment period, we identified important cross-firm variations in the type and format of disclosed information on executive compensation and corporate boards of directors. In order to address the problems that inter-organizational disclosure discrepancies generate for governance researchers and analysts, we provide several recommendations on how Canadian publicly-traded companies can improve their reporting practices.

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Executive compensation and board of directors’ disclosure in Canadian publicly-listed corporations

Corporate Ownership and Control ◽

10.22495/cocv10i3c1art3 ◽

2013 ◽

Vol 10 (3) ◽

pp. 188-199 ◽

Cited By ~ 5

Author(s):

Martin Spraggon ◽

Virginia Bodolica ◽

Tor Brodtkorb

Keyword(s):

Corporate Governance ◽

Executive Compensation ◽

Boards Of Directors ◽

Corporate Boards ◽

Publicly Traded ◽

Information Transparency ◽

Publicly Traded Companies ◽

Listed Firms ◽

Reporting Practices ◽

Governance Regime

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Boards of directors in Russian publicly traded companies: the gender aspect

Voprosy Ekonomiki ◽

10.32609/0042-8736-2018-2-142-155 ◽

2018 ◽

pp. 142-155 ◽

Cited By ~ 1

Author(s):

T. A. Garanina ◽

A. A. Muravyev

Keyword(s):

Boards Of Directors ◽

Company Performance ◽

Corporate Boards ◽

Publicly Traded ◽

Publicly Traded Companies ◽

Representation Of Women ◽

Female Directors ◽

Female Director ◽

Gender Aspect ◽

Longitudinal Dataset

This article studies the gender composition of corporate boards of Russian companies, including its relation to company performance. The analysis is based on a unique longitudinal dataset of virtually all Russian companies whose shares were traded on the stock market in 1998-2014. It shows a relatively small representation of women, just 12% of all the seats, while about 40% of the companies did not have any female director. At the same time, both the share of companies that appoint female directors and the share of female directors on boards show a clear upward trend. The econometric analysis suggests a positive link between the presence of female directors on boards and company performance, especially when firms appoint several, rather than one, female directors.

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Implementing the board of directors’ mechanism – An empirical study of the listed firms in Libya

Corporate Board role duties and composition ◽

10.22495/cbv14i1art2 ◽

2018 ◽

Vol 14 (1) ◽

pp. 22-33 ◽

Cited By ~ 6

Author(s):

Jill Atkins ◽

Mohamed Zakari ◽

Ismail Elshahoubi

Keyword(s):

Corporate Governance ◽

Board Of Directors ◽

Boards Of Directors ◽

Listed Companies ◽

Board Members ◽

Corporate Boards ◽

Listed Firms ◽

Stakeholder Groups ◽

The Board Of Directors ◽

Executive Managers

This paper aims to investigate the extent to which board of directors’ mechanism is implemented in Libyan listed companies. This includes a consideration of composition, duties and responsibilities of the board directors. This study employed a questionnaire survey to collect required data from four key stakeholder groups: Boards of Directors (BD), Executive Managers (EM), Regulators and External Auditors (RE) and Other Stakeholders (OS). The results of this study provided evidence that Libyan listed companies generally comply with the Libyan Corporate Governance Code (LCGC) requirements regarding the board composition: the findings assert that most boards have between three and eleven members, the majority of whom are non-executives and at least two or one-third of whom (whichever is greater) are independent. Moreover, the results indicate that general assemblies in Libyan listed companies are practically committed to the LCGC’s requirements regarding the appointment of board members and their length of tenure. The findings provide evidence that boards in Libyan listed companies are carrying out their duties and responsibilities in accordance with internal regulations and laws, as well as the stipulations of the LCGC (2007). Furthermore, the stakeholder groups were broadly satisfied that board members are devoting sufficient time and effort to discharge these duties and responsibilities properly. This study helps to enrich our understanding and knowledge of the current practice of corporate boards as a significant mechanism of corporate governance (CG) by being the first to address the board of directors’ mechanism in Libyan listed companies.

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Gender Diversity in the Boardroom: Raising Questions About the "Comply or Explain" Model and Targets in Canada

Western Journal of Legal Studies ◽

10.5206/uwojls.v9i2.8073 ◽

2019 ◽

Vol 9 (2) ◽

Author(s):

Rima Halabi

Keyword(s):

Corporate Governance ◽

Boards Of Directors ◽

Gender Diversity ◽

Business Case ◽

Gender Disparity ◽

Publicly Traded ◽

Publicly Traded Companies ◽

Representation Of Women ◽

Meta Analyses ◽

Comply Or Explain

Effective corporate governance requires diversity in perspectives. Nevertheless, gender disparity continues to be a long-standing and prevalent problem on Canadian boards of directors and in executive roles. A “business case” argument that asserts that diverse leadership achieves better financial results has been put forward in support of rectifying gender disparity; however, recent meta-analyses research denies the validity of the “business case” argument. This paper argues that conclusions regarding the invalidity of the business case should be approached with caution. In 2014, securities regulators in Canada implemented amendments to Form 58-101F1 Corporate Governance Disclosure in order to address gender diversity. Unfortunately, progress has been slow because the new diversity disclosure rules are not based on a true “comply or explain” model. This paper argues that securities regulators should require publicly traded companies to adopt a policy relating to the representation of women on their boards. Furthermore, this policy should include a target percentage, chosen by the company, for women on a company’s board of directors and in their executive officer positions.

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The Composition Of Corporate Boards Of Directors: Does Industry Matter?

Journal of Business & Economics Research (JBER) ◽

10.19030/jber.v10i3.6854 ◽

2012 ◽

Vol 10 (3) ◽

pp. 157 ◽

Cited By ~ 6

Author(s):

Dan Marlin ◽

Scott W. Geiger

Keyword(s):

Boards Of Directors ◽

Retail Trade ◽

Future Research ◽

Corporate Boards ◽

Font Size ◽

Corporate Board ◽

Publicly Traded ◽

Trade Finance ◽

Board Characteristics ◽

Publicly Traded Firms

The purpose of this study is to identify and examine differences in corporate board characteristics across four industries. Using a sample of 2592 US publicly traded firms, eleven board characteristics were identified and then examined across manufacturing, retail trade, finance/insurance, and services industries. Our analyses revealed significant differences in each of the eleven board characteristics examined. Implications and areas for future research are discussed.

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Relationship Between Free Cash Flows and Corporate Governance Levels in the Light of Agency Theory

REVISTA CATARINENSE DA CIÊNCIA CONTÁBIL ◽

10.16930/2237-7662202132062 ◽

2021 ◽

Vol 20 ◽

pp. e3206

Author(s):

Glaysson Aguilar de Araújo ◽

Lara Alves Corrêa ◽

Valéria Gama Fully Bressan ◽

João Estevão Barbosa Neto ◽

Bruna Camargos Avelino

Keyword(s):

Corporate Governance ◽

Stock Market ◽

Cash Flows ◽

Least Square ◽

Publicly Traded ◽

Potential Conflict ◽

Return On Equity ◽

Publicly Traded Companies ◽

Corporate Governance Mechanisms ◽

Free Cash Flows

This research analyzes the relationship between free cash flows (FCFs) and the different levels of Corporate Governance present in the Brazilian stock market. To this end, the sample was composed of 212 Brazilian publicly traded companies listed on Brasil, Bolsa, Balcão [B]³, in the period from 2010 to 2018. The methodology consisted of estimating a regression for panel data, using the random effects model, estimating by generalized least square (GLS) and assuming adjustments for autocorrelation and robust standard errors for heteroscedasticity. The results found, for the sample studied, suggest that Corporate Governance levels are positively related to the FCFs. In synergy, when compared to the Traditional level of [B]³, companies listed on the Novo Mercado and Level 2 levels tend to present higher FCF values. In addition, the larger the size of the companies and the higher their return on equity, the higher their FCFs tend to be, just as companies in stages of maturity tend to present lower FCF values. The relevance of this research is based on analyzing, in a stock market subject to imperfections, factors that may affect decisions about the level of cash maintenance of companies, more specifically by evaluating how Corporate Governance mechanisms relate to the theory of FCFs, in a context of potential conflict of interest.

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Corporate governance and corporate investment: an exploratory research in the Brazilian publicly traded companies listed in Bovespa

Corporate Ownership and Control ◽

10.22495/cocv9i1c5art4 ◽

2011 ◽

Vol 9 (1) ◽

pp. 545-557

Author(s):

Nádia Sousa ◽

Flávia Zóboli Dalmácio

Keyword(s):

Corporate Governance ◽

Institutional Investors ◽

Market Value ◽

Institutional Investor ◽

Capital Cost ◽

Exploratory Research ◽

Statistical Relation ◽

Publicly Traded ◽

Publicly Traded Companies ◽

Governance Practices

This paper aims to study the influence of Corporate Governance practices in the institutional decision to invest. It was developed a Governance Index (iGov), a descending rank was prepared and a test was applied to check if the companies in the first 25% of this rank have the highest number of institutional investors among their biggest investors than the companies of the last 25%. For the validation of IGov it was tested if the companies with the best marks present highest Returns, lowest Capital Cost, highest Market Value, and highest Competiveness within the sector, lowest Beta, highest EVA® and lowest Share concentration. It has been proved that the best Corporate Governance practices do not have any statistical relation with the presence of more Institutional Investor.

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Female directors on corporate boards and their impact on corporate social responsibility (CSR): evidence from China

Management Research Review ◽

10.1108/mrr-09-2020-0560 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Waqas Bin Khidmat ◽

Muhammad Danish Habib ◽

Sadia Awan ◽

Kashif Raza

Keyword(s):

Corporate Governance ◽

Corporate Social Responsibility ◽

Gender Diversity ◽

State Ownership ◽

Corporate Boards ◽

Female Representation ◽

Content Type ◽

Listed Firms ◽

Self Selection ◽

Corporate Social

Purpose This study aims to examine the determinants of the female representations on Chinese listed firm’s boards. This study also investigates the effect of gender diversity on corporate social responsibility activities. Design/methodology/approach The Tobit regression model is used because the data is censored and using ordinary least square regression can give spurious results. For robust check, the authors also used Heckman’s (1979) two-stage self-selection model to remove the sample self-selection bias. Findings The authors find that the female representations on the corporate board are positively associated with firm age, firm performance, corporate governance, family ownership, institutional ownership and managerial ownership while negatively related to firm size and state ownership. This study also incorporates predictors of the critical mass of women on the Chinese listed firm’s board. The study also tests the female-led hypothesis and concludes that the female representation increases in firms with female chief executive officer (CEO) or female chairpersons. The Chinese listed firms with gender-diverse board are socially responsible. Research limitations/implications The importance of diversity in corporate boards has been demonstrated in light of the agency theory and the resource dependence framework. The results contribute to the previous literature by documenting the determinants of female representations on board, robust by alternative measures of gender diversity, firm size, corporate governance and estimation techniques. Practical implications The economic significance of gender diversity stirred the firms to increase female representation. The policymakers can understand the reasons for female underrepresentation in Chinese boards and can reform the regulation to enhance governance quality, non-state ownership and risk aversion among the listed firms. Originality/value This study contributes to the literature by providing empirical evidence on the key predictor of the world’s largest emerging economy, specifically the study focuses on the firm specific determinants, different governance attributes, ownership structure and firm risk measures. This study also seeks to answer if the presence of a female in the Chairperson or CEO position encourages the firms to hire more female directors or not?

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6. Corporate governance—board structure and shareholder engagement

Company Law ◽

10.1093/he/9780198787709.003.0006 ◽

2018 ◽

Author(s):

Brenda Hannigan

Keyword(s):

Corporate Governance ◽

Board Structure ◽

Publicly Traded ◽

Publicly Traded Companies ◽

Board Committees ◽

Shareholder Engagement ◽

Good Corporate Governance ◽

Starting Point ◽

The Uk ◽

And Control

This chapter discusses corporate governance in publicly traded companies with widely dispersed shareholdings. Most shareholders are not involved in the management and control of a company's affairs. Thus, a separation usually develops between those who collectively own the company through their combined shareholdings (the shareholders) and those who manage it (the directors). Problems can arise from this separation of ownership and control as distance from the day-to-day running of the business makes it difficult for shareholders to restrain any managerial excesses. The starting point of good corporate governance is internal mechanisms (such as shareholders' rights and board structures). The discussions cover the UK corporate governance code, corporate governance requirement, board committees, and shareholder engagement.

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Corporate governance mechanisms for publicly-traded companies

Corporate Ownership and Control ◽

10.22495/cocv5i4c2p4 ◽

2008 ◽

Vol 5 (4) ◽

pp. 309-314 ◽

Cited By ~ 2

Author(s):

Sean M. Hennessey

Keyword(s):

Corporate Governance ◽

Board Of Directors ◽

Best Interests ◽

Minimal Cost ◽

Publicly Traded ◽

Senior Managers ◽

Compensation Plans ◽

Publicly Traded Companies ◽

Corporate Governance Mechanisms ◽

The Board Of Directors

The resolution of conflicts between shareholders and managers, at minimal cost, is the goal of corporate governance. This paper discusses four mechanisms, two internal, two external, that attempt to ensure managers act in the best interests of shareholders: 1) the board of directors, 2) management compensation plans, 3) the market, and 4) takeovers. Theoretically, these four forms of corporate governance should ensure management maximizes shareholder value. But, agency costs are real for shareholders. In practice each the mechanisms may be severely limited in their ability to protect shareholders. The best protection is an independent, credible board of directors. Without good boards, shareholders are left to the mercy of the agents. In such cases, it is very difficult, and expensive, to discipline the senior managers of a publicly-traded company

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