bluuebunny/crossref_metadata_2025 huggingface dataset:
How is firm performance related to family ownership in Malaysia and does board independence moderate the relationship?
Authors: Ng Sin-Huei , Ong Tze San , Heng Teh Boon , Soh Wei Ni
Published: December 2016

This paper explores whether the performance of publicly-listed family-controlled firms in Malaysia is related to the extent of the families’ ownership. It also explores whether there are any moderating effects from the various attributes of board independence on the ownership-performance relationship of these firms. The findings indicate that increasing families’ ownership is related to better firm performance under the condition that the families do not have absolute ownership and control over their firms. However, giving more control via majority ownership that causes the families to become the only dominant party might enhance their ability to expropriate and cause firm performance to deteriorate. Therefore, proposal to increase ownership as a mean to reduce the classical agency-theory problems should be caveated under the principal-principal perspective. It is also found that the various board independence attributes do not exhibit any moderating influence on the family ownership-firm performance relationship. This finding may indicate the powerlessness of the boards of director in Malaysia when encountered with the influential controlling families whom the directorship tenures and opportunities of the non-family directors depend on. Decisions made by the controlling families which have bearing on firm performance may not have been effectively counter checked by the boards due to the lack of truly independent nature of the boards
The benefits and pitfalls of employees working from home: Study of a private company in South Africa
Authors: Garg Ajay K , van der Rijst Jan
Published: December 2016

Working from home is a worldwide trend and effect companies in various ways. This study focussed on South African circumstances and examined the cost saving implications for a private company and their employees if they would be able and allowed to work from home. Further, relationships between structural and relational factors with experience with virtual work were studied. Based on the data collected from 48 respondents, study found that majority of the employees were willing to work from home and the savings to company was estimated at R1 058.25 per month on rental, electricity, levy, rates, sewer and water expenses, while employees could save an average of R8 822.06 per month if they do not travel to work. On the other hand employees will spend only R347 per employee if they work from home. Relationship between structural factors and relational factors with perceived virtual work experience was found positive. Professional isolation and job performance was found highly negatively correlated.
Specific performance as a primary remedy in the South African law of contract
Authors: Kanamugire Jean Chrysostome
Published: December 2016

Specific performance is a primary remedy for breach of contract available for the aggrieved party. This order emphasises the performance of contractual obligations. Although the plaintiff can elect to claim specific performance from the defendant, the court has a discretion to grant or decline the order of specific performance. The discretion must be exercised judicially and does not confine on rigid rules. Courts decide each case according to its own facts and circumstances. Plaintiff has a right of election whether to claim specific performance from the defendant or damages for breach of contract. The defendant does not enjoy any choice in this matter. As a general rule, specific performance is not often awarded in the contract of services. However, recent developments have demonstrated that specific performance will usually be granted in employment contracts if there is equality of bargaining power among contracting parties and such order will not produce undue hardship to the defaulting party. Public policy generally favours the utmost freedom of contract and requires that parties should respect or honour their contractual obligations in commercial transactions. Public policy is rooted in the constitution and can sparingly be used to strike down contracts. Specific performance should not continue to be a primary remedy for breach of contract. Contracting parties should be allowed to resile from the contract and use damages as a remedy for breach of contract.
Sustainable responsible business conscience as derived from the Chumash: Hermeneutic phenomenological perspective
Authors: Mashingaidze Sivave
Published: December 2016

The Chumash (Five books of Moses) has potential from which conventional models and theories could leverage for public wellbeing. Considering the moral and ethical magnitude of business/corporate social responsibility (CSR) or Sustainable Responsible Business, understanding this concept from the religious stand-point could help strengthen CSR compliance, where religions play direct and indirect role in corporate governance and people’s lifestyle. This article explores epigraphic sources to provide answer to the questions: Does CSR have theological foundation from the Chumash? Can faith strengthen CSR and fortify compliance? The researcher sourced the required qualitative data from journal articles, Judaic sources and Chumash (Bible) texts as well as relevant online resources on the subject. The extractions from epigraphic sources were critically and methodically examined carefully using hermeneutic from which answers to the two questions were established. The findings indicate that CSR has theological foundation in the Chumash, and religious ethics and values have great influence for strengthening CSR.
Impact of corporate social responsibility on employee engagement: A case of Eskom in South Africa.
Authors: Kweyama Fortunate Slindile , Cassim Shahida , Munapo Elias , Mutambara Emanuel
Published: December 2016

The emergence of Corporate Social Responsibility (CSR) as a business management concept in the fifties ushered in a new error in the way business view its various stakeholders. Chief among the stakeholders are the employees by virtue of being the brains behind the organization. This study assesses the impact of CSR programmes on Employee Engagement (EE) in the South African State Owned Power Company, Eskom. In particular, the study interrogates the impact of the three CSR dimensions of awareness, involvement and environmental awareness vis-a-vis the two dimensions of EE, namely, Job Engagement (JE) and Organizational Engagement (OE). A total of 380 Eskom employees were used as participants. The major findings were that organizational leaders are eager to implement CSR strategies. The study further revealed realistic and practical practises to broaden understanding of the current status of the organization, understanding EE and understanding the role CSR could play as a potential Human Resources (HR) tool to engage employees for Eskom and other organizations in general. The study concludes by recommending further research across industries to address the relationship between CSR initiatives and EE.
Examination of employee factors influencing organisational productivity: Perspective of a public entity
Authors: Green Paul , Adekanmbi Oluwole
Published: December 2016

The influence of employees’ challenges on productivity at a provincial department in KwaZulu-Natal has been notably affecting the overall provision of houses and sanitation (service delivery). According to the Annual Performance Plan 2013/14 – 2015/16, the improvement of efficiency and quality of human settlements’ services is one of the strategic goals which focuses on the overall organisational productivity; however, it fails to consider employees’ day-to-day challenges. Thus, the primary purpose of this paper is to investigate challenges at an operational level and determine the impact they have on productivity. Using a quantitative approach, a questionnaire was distributed to a convenience sample of 180 employees within the department. Applying factor analysis, the findings indicate Leadership as having the highest impact while Work-Life Balance displayed the least impact on Organisational Productivity. The results of this study are beneficial to other local, provincial and national public entities.
Human rights disclosure practices. Does ownership matter? (Evidence from Indonesia)
Authors: Probohudono Agung Nur , Sudibyo Yudha Aryo , Atmaji Atmaji , Noor Kholid Muhammad
Published: December 2016

The aim of this study is to determine the extent Human Rights disclosure practices in Indonesia. This study examines the impact of Ownership on Human Rights disclosure. Ownership is characterized by Foreign Ownership, Managerial Ownership, Institutional Ownership, and Public Ownership. This study analyse disclosure by an agregated disclosure index score from Human Rights Disclosure.
This study examines of Human Rights disclosure practices in the annual reports of listed companies in Indonesia. The sample of this study are 328 firm year annual reports listed companies in Indonesia in the period of 2009 to 2012. The technique used is purposive sampling technique. The results show that foreign ownership and size are associated with Human rights disclosure in Indonesian listed companies.
Does family involvement on board of the directors contribute to firm profitability? An empirical evidence from Saudi Arabia
Authors: Al-Dubai Shehabaddin Abdullah A. , Ku Ismail Ku Nor Izah , Amran Noor Afza
Published: December 2016

Literatures view board of the directors as the cornerstone of firm’s success. Therefore, family involvement on the board and its impact on firm profitability is an issue of interest and need to be addressed. The purpose of this paper lies in the fact that it extracts new empirical evidence from a promising area in the world. The study proceeds with a cross-sectional time-series analysis based on a data of 75 Saudi non-financial public listed firms from 2007-2011(375 firm-year observations) to examine family representing on board of the directors, family chairman, and founder chairman and its impact on firm performance (ROA). The study concludes the outperformance of firms in which family represents heavily on the board. In addition, the results suggest that not all family members are good stewards. Strictly speaking, founder chairman only found to be beneficial to the firm profitability rather than others. However, the results confirmed its robustness against different indicator (EPS) and when family firms only being selected.
Interaction of resources, networks and technology to create social value
Authors: Mohapeloa Matshediso , Garg Ajay K.
Published: December 2016

Technologies, networks and resources are business model elements that act as core structures underpinning activities and yield economic outcome. South African context was used to explore how these elements create and retain social value for diverse groups of people and to determine how this influence the development of new products and services. A cross-sectional qualitative design method was used; cases were selected from registered network of social entrepreneurs as members of the African Social Entrepreneur Network. The data was analysed using NVIVO 10 where effects were identified and emerging patterns and themes were categorise to determine relationships. Key findings highlighted the use of partnerships for networking to complement each other’s resources, while technologies are considered a major resource. The findings suggest that partnerships and collaboration are used as the platforms for connection and communication between businesses, and technologies. These are converted to strengthen the existing resources in a way that benefits stakeholders, the social business and its partners.
Coexistence of contrasting principles in corporate governance: Two tales of Japanese firms
Authors: Yoo Taeyoun
Published: December 2016

The underlying logic that shapes the coexistence of contrasting mechanisms in a firm’s governance system remains unclear. We examine the logic that promotes a hybrid form of corporate governance in functional terms. The empirical analysis of Japanese firms shows that a firm’s reliance on capital markets for resource acquisition facilitates its adoption of shareholder-oriented mechanisms, such as committee systems. In contrast, corporate performance is still influenced by some of Japanese society’s characteristic governance mechanisms, such as bank ownership. This finding illustrates that contrasting governance mechanisms coexist in a given system owing to their respective or interacting contributions to corporate performance.
Reputational dynamic capability – What’s board got to do with it
Authors: Tipurić Darko , Tomšić Dina
Published: December 2016

The power of intangible corporate assets, on disposal to board and management provide immense possibilities to enhance corporate performance. Dynamic capabilities and corporate reputation are the most salient of a kind, beside knowledge. While the relevant literature about both phenomena is ample, their synergic impact on the corporate performance is lacking. The main challenge of the paper is to seal this important gap by proposing an integrated framework of dynamic capabilities and corporate reputation. In particular, by examining the mediating role of corporate reputation in corporate interactions, the reputational capability is shaped to enhance the corporate sensibility to changes in its operating ecosystem, prior to its competition, therefore assuring corporate fitness. This new breed of dynamic capability is designed as a driver of the firm’s market and non-market based competitiveness. In order to empirically verify this new mechanism, the research results conducted in Croatia are presented. The model is designed as generic in nature, hence is suitable for applying to other intangible corporate assets and dynamic capabilities interaction analysis
Corporate social investment and a company’s image: A case of a CSI initiative in a South African low income community
Authors: Muzindutsi Paul-Francois , Sekhampu Tshediso Joseph
Published: December 2016

One of the goals of corporate social investment (CSI) is to ensure that a company becomes a responsible entity which acts as a conscientious citizen within a society. CSI plays an important role in enhancing how a company is perceived within the community it operates in. This paper used a combination of qualitative and quantitative research designs to investigate the effect of a specific CSI initiative on a company’s image within a low income community in South Africa. Semi-structured interviews and survey questionnaire were used to collect data from community members in the township of Bophelong, South Africa. Results show that, if adequately managed, CSI initiatives tend to enhance company’s image as well as its relations with the community it operates in. However, if not adequately managed CSI can created unreachable expectations that can negatively affect a company’s image. Thus, companies better manage their CSI initiatives have an increased opportunity to enhance their reputation within the community they operate in.
Piercing the corporate veil: An incursion into the judicial conundrum
Authors: Nwafor Anthony O
Published: December 2016

Once a company is incorporated, it enjoys, by the power of the law, a personality which is distinct from those of the incorporators. This invariably implies that those running the affairs of the company do not incur personal liability in the course of doing so. The same legal might which forms the basis for corporate existence also regulates its purpose to afford protection to those dealing with the company by ensuring that the controllers of those corporations do not use them to pursue improper personal agenda. The courts have shown the willingness to disregard the corporate entity and impose personal liabilities on the controllers when such improprieties occur. The paper examines the judicial authorities especially in South Africa and the United Kingdom. They reveal a significant level of inconsistencies in the exercise of this equitable power of the court. The paper further examines the recent legislative intervention in South Africa and argues that unless specific guidelines are provided by parliament on when the corporate veil could be pierced, the courts will continue to address this issue as a matter of judicial discretion and which is at the root of the inconsistent and conflicting judicial pronouncements in this vital area of corporate governance.
The challenges of “acting” CEOs in state-owned enterprises: The case of South African airways
Authors: Makoni Patricia Lindelwa
Published: December 2016

The purpose of this study was to examine the recent spate of suspensions, resignations and interim chief executive appointments at the helm of the national airline, South African Airways. This challenge in the instability of management and leadership has resulted in low stakeholder confidence in the country, as it portrays an image of economic instability and political interference, particularly when the underlying reasons for the various suspensions and acting appointments are examined. This paper is purely qualitative in nature, and gives presents a critical analysis and perspective the challenges and impact of political interference in South African state owned enterprises. The study contributes not only to governance and accountability in the public sector, but also how politics can cause reputational risk for itself and CEOs in state owned enterprises and other key Government departments which are considered to be of national importance.
Corporate citizenship reporting and managers pay: A study of senior management and board influence.
Authors: Nulla Yusuf Mohammed
Published: December 2016

This research study explores the determinants of the executive compensation from a social, sustainability, governance, and financial perspectives. The quantitative research method is used for this research study. This research finds that there is a significant positive correlation between executive compensation, social and environmental performance, corporate governance, employee participation, and market and financial performance. However, it also finds that there is a weak negative correlation between executive compensation and sustainability costs. The negative correlation between social performance and sustainability costs. The negative correlation between sustainability costs and corporate governance. The positive correlation between social performance, corporate governance, and stock price.
The management of change in a changing environment – To change or not to change?
Authors: Brauns Melody
Published: December 2016

Any organisation operating in today’s uncertain economic climate needs to know how to manage change in order to survive. For businesses to withstand today’s competitive environment, organisations must frequently examine its processes and performance strategies to better understand what changes need to be made. The pace of change has considerably increased. Change nowadays is a reality for businesses and organisations, those which resist change, risk losing their competitive edge. Change is one of the most significant aspects that affect organisations. The ability therefore to manage change effectively has become vital. It is crucial that organisations understand the implications that change may have on the employees’ culture, history, goals, aims, objectives and so on? Change is essential for business survival and growth. In today’s complex and competitive global business environment, organisations must adjust to changing environmental conditions by constantly introducing changes in order to remain competitive and profitable. Change is important because managers and organisations that do not bring about timely change in appropriate ways are unlikely to survive. Managers and organisations are faced with highly dynamic and complex operating environments. Any organisation that ignores change does so at its own risk.
Manipulation effects of managerial discretion on executive-employee pay gap: A comparative study between the senior CEOs and the fresh CEOs
Authors: Zhang Chang-zheng , Zhuo-qin Gao Xin Mu
Published: December 2016

The relationship between managerial discretion and executive-employee pay gap (EEPG) has received widespread attention both in the theoretical research and business practices of the corporate governance all over the world. However, the working motives’ differences of managerial discretion between the fresh CEOs and the senior CEOs in determining EEPG and many other business issues have been theoretically ignored to a large degree. Therefore, it is of great meanings to investigate the link between managerial discretion and EEPG by taking such motives’ differences into account in this study. Using the data set taken from the Chinese listed companies, the study empirically analyzes and confirms the following results: First, the manipulation effects of each dimension of managerial discretion on EEPG have distinctive intensity or strength because of different motives of the CEOs; Second, both the senior CEOs and the fresh CEOs have the motives and capabilities to manipulate EEPG positively, but they have very different motives; Third, the fresh CEOs, out of the greater firm-serving motives, are less intending to enlarge EEPG than the senior CEOs, who have the greater self-serving motives; Fourth, the fresh CEOs would like to link firm performance more closely with EEPG, while the senior CEOs would like to link firm size more closely with EEPG. Theoretical and practical implications of the study are discussed in the end.
Retaining and properly developing employees: Could this impact professional conduct?
Authors: Kappo-Abidemi Christiana , Gervase Iwu Chux , Allen-Ile Charles
Published: December 2016

Human resource retention and development (HRRD) relationship with public servants’ professionalism is examined in this study. Variables such as performance appraisal, training and motivation are used to measure HRRD and the effect on professional output of public service employees are examined. Both quantitative and qualitative methods of data collection were adopted; four hundred and seventy six (476) useable questionnaires were retrieved from respondents and used in the quantitative analysis, while three different groups consisting of between eight to twelve people were involved in focus group discussions. Inferential statistics was used to analyse the quantitative data, while the qualitative data was organised into themes. Findings indicate among others a lack of motivation among Nigerian public servants in terms of salaries and other incentives that could have enhanced performance output. Likewise, training and developmental strategy embarked on presently is not problem targeted. Therefore, a revamp of the current performance appraisal system is suggested amongst many others.
Liquidity, ownership and corporate governance in Caribbean firms
Authors: Jackson Marcia
Published: December 2016

This paper examines the liquidity, ownership and corporate governance relationship in a Caribbean setting. Results show that concentrated ownership reduces liquidity and large shareholdings have implications for liquidity. As the largest shareholder, government and foreign holding companies are less liquid; whilst liquidity is linked to foreign institutions. Firms with holding company (domestic and foreign) as the second largest shareholder are less liquid. Other results show that some corporate governance standards improve stock liquidity. This study shows that the results are unlikely confounded by endogeneity; are robust to different measures of liquidity; and the interaction of large shareholdings and corporate governance is not significant – hinting that large shareholdings substitute for corporate governance rather than complement it.
Impact of defense spending on unemployment in five countries from Asia
Authors: Qayyum Khan Abdul , Azam Muhammad , binti Samsi Aznita , Emirullah Chandra , Usman Mustofa
Published: December 2016

The objective of this study is to examine empirically the impact of defense spending on unemployment along with a number of control variables for a set of five selected countries from Asia which include Cambodia, China, Malaysia, Pakistan, and the Philippines. For empirical investigation annual data over the period of 1992 to 2013 are used. While, prior to regression analysis, the data were sensibly checked using sundry of relevant tests. The empirical results reveal that defense spending is not a better option to overcome unemployment problem in most of the sample countries. Thus, the findings suggest that lower defense budget allocation will provide more resources for other sectors which are relatively more productive and can help to improve economic and social welfare of these selected countries from Asia. Besides decreased military expenditures, encouraging domestic investment and discouraging population growth can help reduce unemployment. Remittance appears to have a positive relation with unemployment, the implications of which need to be addressed by policymakers.
Board characteristics and corporate social responsibility disclosure in the Jordanian banks
Authors: Ghabayen Mohammad Ahid , Mohamad Nor Raihan , Ahmad Norsiah
Published: December 2016

This paper aims to examine the impact of board characteristics on the level of corporate social responsibility disclosure (CSRD) in the Jordanian banking sector for a sample of 147 banks/years during a period of 10 years (2004-2013). A checklist consisting of 100 items is developed to measure the disclosure level and the result indicates a relatively low level of disclosure in Jordanian banks. Multiple regression analysis is employed to examine the developed hypotheses. The results indicated that the larger board size and higher level of disclosure are correlated. However, low level of disclosure is associated to higher proportion of independent directors and institutional directors. In addition, female director is found to negatively affect the level of disclosure. This study has filled some of the previous studies’ gaps; the study is conducted in a new business environment. Besides, previous CSRD’s studies have not considered some of the board characteristics such as institutional directors. Thus this study investigates their impacts on the level of CSRD. In addition, this study provides some guidelines for the future works. Furthermore, the findings of this study might be interested to several groups of shareholders and stakeholders such as government, regulators, potential investors and CSR agencies.
Women on boards and corporate social responsibility
Authors: Gennari Francesca
Published: December 2016

Data by EU Commission show a low representation of women on boards. The scope of this article is to read contemporary and according to a managerial approach the possible causes of this situation: the availability of skills possessed by women to cover top positions, the presence of binding or self-regulatory rules and the corporate culture towards CSR approach. Our research is focused on EU countries, where the gender equality on board is currently matter of attention and regulatory interventions. We conclude that the scarce presence of women in the boardrooms is not ascribable to a scarcity of expertise, but it is associated with a social background and a corporate culture not inspired by corporate global responsibility values. Regulatory interventions may accelerate the consciousness of gender balance on boards, but without companies’ commitment in CSR matters and without a clear vision of corporate global responsibility (including economic, social and environmental aspects), they tend to become additional tasks in the management of corporate compliance risk.
State ownership, agency conflict and effective tax rates: Evidence from China
Authors: Jianfu Sun , Sudibyo Yudha Aryo
Published: December 2016

Agency conflict between minority and controlling shareholders in state owned firms has to be considered in order to examine the variability on effective tax rates. In China, state ownership helps the government to achieve its social objectives by optimizing corporate income tax. We provide a significant result to prove that state owned firms paid higher corporate income taxes than private firms. Our results also indicate that corporate effective tax rates are positively associated with firm sized and inventory intensity. However, we have no strong evidence to support the association with leverage, return on assets and capital intensity.
“Outside” directors in SME boards: A call for theoretical reflections
Authors: Gabrielsson Jonas , Huse Morten
Published: December 2016

Good governance for SMEs is critical for economic development and growth in both developed and developing economies. In this paper we focus on boards and governance in small and medium sized enterprises (SMEs) by investigating the role and contribution of “outside” directors in this setting. By contrasting board role theories against different types of SMEs, firms are expected to recruit “outside” board members for various reasons. Illustrated by 52 empirical studies of “outside” directors in SMEs we show how agency theory, resource based view of the firm, and resource dependence theory can be applied to understand the multiple roles that “outside” directors can play in family firms, venture capital-backed firms and other SMEs. The illustration shows that the concept “outside” director is not the same in different theories and in different empirical settings. Based on this finding, we argue for the need to have a conscious and balanced use of theories for understanding the role and contribution of “outside” directors in SMEs.
Between controlled co-option and direct election
Authors: Goodijk Rienk
Published: December 2016

This paper first describes the complex Dutch corporate governance system and the functioning of the Supervisory Board under the rules of the structure regime and co-option model up to the present time. The critiques of the parties and stakeholders involved in this model are investigated next, followed by a description and explanation of the recent developments of the Dutch model and a discussion of the pros and cons of the alternatives with regard to the interests of the various stakeholders. Finally, some key factors for improving the boards’ functioning in the – changing – Dutch corporate governance system are presented. The findings and recommendations are based on case-studies and interviews conducted in large Dutch companies over several years and on extensive analyses of documents and recent evolutions. This research method however, is only suitable for a process of exploration, clarification and development of hypotheses.
The Kostyuk report: Executive compensation practices in Ukraine
Authors: Kostyuk Alexander
Published: December 2016

The main research question of this research is: "Does an ownership structure influence performance of executive compensation in Ukraine?". A very detailed investigation of the most active Ukrainian joint stock companies has been undertaken. Total number of the companies under research is 50. Period of investigation is from 1998 to 2003. Fixed-based compensation is still the major form to reward executives at Ukrainian companies. From this perspective, Ukrainian practices for rewarding executives belongs to Continental model, developed in Germany. It can be explained by lack of: appropriate legislation, allowing stock based compensation; liquid stock market; lack of knowledge of directors (members of supervisory boards) on incentive based compensation; lack of control and executive monitoring functions by supervisory board
Is there a relationship between directors remuneration and firm performance?
Authors: Rahman Rashidah Abdul , Zawawi Siti Noor Hayati Mohamad
Published: December 2016

The primary objective of the study is to determine whether there is a positive relationship between directors’ fees with the size of the firm and performance, based on the annual report of 246 listed firms. The results indicate a weak positive relationship between directors’ remuneration, corporate size (total assets) and corporate performance (operating cash flow on asset). The weak positive relationship between director fees and performance indicates that other factors, such as the director’s yearly performance, may also account for the determination of the director’s remuneration. The findings support the notion of agency theory and corporate governance that remunerating the top management should be based on individual and corporate performance. In contrast, other performance variables such as return on assets (ROA) and earning per share (EPS) measured indicates no statistical association.
New orientations for a European framework of corporate governance
Authors: de Beaufort Viviane
Published: December 2016

The comparative study of Corporate Governance Codes relevant to the European Union and its Member-States[1], finalised in March 2002, establishes that differences remain at a national scale on corporate governances issues. Beyond the identities of national firms in European Union lies the question: is there a European corporate governance identity? At the present time, European legislation does not cover certain essential aspects of the firm: that is where the shoe pinches! What a company is and what its aims are remain a national question; in the same time transparency requirements are established on a global dimension at least for quoted companies and some new projects of Directives and Recommendations dealing with corporate governance issues attempt to create common rules or principles. This article tries to synthesise the European action in this field and to a certain extend to criticise it not to have a more ambitious project.
Intellectual capital performance and cash-based incentive payments for executive directors: Impact of remuneration committee and corporate governance features
Authors: Van der Zahn Mitchell , Singh Inderpal , Brown Alistair
Published: December 2016

We use a sample of 964 executive directors representing 354 Singapore publicly listed firms to examine linkage between firm performance and cash-based bonus payments. As a pooled OLS regression model may hide different models that characterize subsets of observations we use latent class analysis to further examine the data and to identify more specifically the influence of corporate governance features. Our latent class analysis results indicate that remuneration committees with members having their interests better aligned with shareholders (such as presence of a significant owner) appear more likely to consider the incremental value of tying executive director compensation to intellectual capital performance. Remuneration committees with a lower risk of influence from managerial power were also found to be more likely to support a compensation linkage for executive directors to intellectual capital performance. The influence of the remuneration committee features is evident for both entrepreneurial and traditional firms. Overall, our findings are consistent with both the optimal-contract pricing and managerial power views of executive compensation setting.
Supervisory board and works council in the Netherlands opportunities for the works council to influence the composition of the board: Context, conditions and effects
Authors: Goodijk Rienk
Published: December 2016

In this paper, we present our first research findings on the opportunities for works councils and their practices to influence the supervisory board member(s) election under the ‘old’ co-option system. When and under which conditions works councils are really using their right to propose supervisory board candidates and what kind of effects could be expected from that? The conceptual framework for our research work is presented next, finally followed by a description of the first research findings. The research findings to date, reveal what sort of conditions and factors have a stimulating impact on the works councils’ behaviour to use the formal right to propose supervisory board candidates, to influence the composition of the supervisory board and to build up a relationship with that board. The research also shows the perceived effects of proposing candidates. The findings confirm the expectation that the attitude of the parties involved is very dominant and that works councils which are really striving for a better strategic position at the corporate level, are more actively involved than other works councils.
Impact of gender and ethnic composition of South African boards of directors on intellectual capital performance
Authors: Van der Zahn Mitchell
Published: December 2016

This study examines the association between the gender and ethnic composition of boards of directors and firm performance in a transitional nation. In contrast to prior research that largely focuses on firm performance within a financial context, this study concentrates on intellectual capital performance. Using data collected from 84 South African, empirical results indicate a positive association between the percentage of female and non-white directors on the board and a firm’s intellectual capital performance. Additional analysis shows the designation of female directors as an insider has a negative effect of intellectual capital performance. Designation of female and non-white directors as outsiders, meanwhile, has a positive influence on a firm’s intellectual capital performance. Finally, there was no association between the percentage of non-white inside directors on the board and intellectual capital performance.
Self-and external evaluation of supervisory boards
Authors: Hilb Martin
Published: December 2016

Objective, systematic and useful Supervisory Board performance reviews, both individually and collectively, are becoming more and more recommended by national corporate governance guidelines (as well as new EU recommendations). In this paper, the author portrays two evaluation tools which he has actually developed and implemented with success in Supervisory Boards.
Misleading outside directors in public companies – The Israeli case
Authors: Frenkel David A. , Lurie Yotam
Published: December 2016

The external directors, who serve by law on the board of directors, are responsible for ensuring that, in addition to protecting the interests of stakeholders, the company will take the public interest into consideration. In this research we critically assess this system of corporate governance, and examine whether the external directors can actually succeed in looking out for the public’s interest. The research is based on in-depth interviews with external directors of leading public companies in Israel, representing different sectors. The issue at stake is both conceptual and practical: Conceptually there is an issue of how the notion of "the public interest" is understood and whether the legal construct of "outside directors" is capable of manifesting the public interest. Practically the issue at stake has to do with organisational sociology and how the relations within the Board are set and who are the outside directors.
The role of non-executive directors in the Ghanaian SME sector
Authors: Sarpong-Kumankoma Emmanuel , Amidu Mohammed , Abor Joshua
Published: December 2016

This paper reports on the role of NEDs among Ghanaian SMEs. The results of this study revealed that less than half of the SMEs sampled engage the services of NED. The study also revealed that relatively larger SMEs are more likely to employ the services of NEDs. We also found that over 80% of the SMEs with NEDs were either growing or growing rapidly. NEDs’ contributions were also found to be multi-various and cut across the range of SME board functions. The study showed that most SMEs acquire NEDs mainly through informal personal contacts such as family, friends of a director, business friends rather than through formal arrangements.
Inside boardrooms: Restoring corporate governance
Authors: Ayogu Melvin D.
Published: December 2016

Recent bold changes in corporate governance proceedings suggest that business and regulators are ahead of scientists in addressing the role of informal constraints. We argue that economics and management sciences alone are no longer sufficient to advance our understanding of how to make corporate boards effective. Our proposal for a multidisciplinary approach comes with an appeal for a radical rethink of current limits of existing empirical methodology.
Characteristics of CEOs and corporate boards with women inside directors
Authors: Zelechowski Deborah Dahlen , Bilimoria Diana
Published: December 2016

Women corporate inside (executive) directors constitute an elite minority of leaders of large corporations. This study examines the characteristics of CEOs and boards of Fortune 1000 firms that had women who held the dual leadership positions of corporate director and executive officer in 1998 in order to determine whether firms with women insiders had substantially different characteristics than firms without. We find that compared with firms without women inside directors, firms with women inside directors were characterized by CEOs with longer board tenure, more family ties, and fewer director interlocks, and by boards that were larger, with more insiders, and that utilize a management Chair of the board. Corporate governance implications are drawn for the presence of women at the top of the executive hierarchy.
The codification of directors’ duties: Capturing the essence of the corporate opportunity doctrine
Authors: Lowry John
Published: December 2016

It is suggested in the paper that section 176 is too compendious in its drafting. A consequence of this is that the declared objectives of the CLR to make the law comprehensible and, therefore, accessible is undermined. It fails to capture the essence of the principles that have emerged from the case law on the no-conflicts rule and the corporate opportunity. Further, the differing approaches towards the determination of liability by the Court of Appeal in Bhullar, on the one hand, and the more open textured approach towards the issue in Pyke, illustrates the dichotomy of the case law surrounding the corporate opportunity doctrine which the language of section 176 fails to resolve.
A practitioner’s research: Director remuneration in Ukraine
Authors: Kostyuk Alexander N.
Published: December 2016

Remuneration of members of the supervisory boards in Ukrainian joint-stock companies is the most controversial issue of the corporate board practices.
Despite the firm belief of the shareholders that the director remuneration is one of the most important factors influencing the board performance, there are still many companies (21 per cent) where directors are not remunerated for their work on the supervisory board. This report examines practices of the director’s remuneration in Ukraine.
An effective board from a team perspective
Authors: Jonsson Eythor , Powell Taman
Published: December 2016

This paper looks at boards from a team perspective, where insights from research on teams are used to discuss some classical problems of corporate governance. The Enron-case is used as an underlying theme as it portrays some of the biggest challenges that boards face today. Theories developed within the team literature emphasise that for boards to become more effective they need more time and better access to information as a source of knowledge, more structure and purposeful roles for directors and for the board in general, and they need to become smaller and more focused. In effect, the culture of teams could have avoided some of the blunders of the Enron board.
Ignorance is no excuse for directors minimizing information asymmetry affecting boards
Authors: Jonsson Eythor Ivar
Published: December 2016

This paper looks at information asymmetry at the board level and how lack of information has played a part in undermining the power of the board of directors. Information is power, and at board level, information is essential to keep the board knowledgeable about the failures and successes of the organization that it is supposed to govern. Although lack of information has become a popular excuse for boards, the mantra could –and should –be changing to, “Ignorance is no excuse” (Mueller, 1993). This paper explores some of these information system solutions that have the aim of resolving some of the problems of information asymmetry. Furthermore, three case studies are used to explore the problem of asymmetric information at board level and the how the boards are trying to solve the problem. The focus of the discussion is to a) describe how directors experience the information asymmetry and if they find it troublesome, b) how important information is for the control and strategy role of the board and c) find out how boards can minimize the problem of asymmetric information. The research is conducted through semi-structured interviews with directors, managers and accountants. This paper offers an interesting exploration into information, or the lack of information, at board level. It describes both from a theoretical and practical viewpoint the problem of information asymmetry at board level and how companies are trying to solve this problem. It is an issue that has only been lightly touched upon in the corporate governance literature but is likely to attract more attention and research in the future.
Audit committee: Some evidence from Malaysia
Authors: Sori Zulkarnain Muhamad , Hamid Mohamad Ali Abdul , Mohd Saad Siti Shaharatulfazzah , Evans Jonathan Gerard , Nassir Annuar Md
Published: December 2016

This study aimed to investigate the perceptions of senior managers of Malaysian publicly listed companies on issues relating to audit committee authority and effectiveness. Questionnaire survey technique was employed to seek the respondents perceptions on five issues, namely audit committee appoints the auditor, audit committee determines and reviews audit fees, audit committee determines and reviews the auditor’s scope and duties, and audit committee’s reports and meetings. The majority of respondents agreed that auditor would be more effective and independent if audit committee assumed the responsibility to appoint the auditor, determine and review the audit fees, and determine and review the external auditor’s scope and duties. It is also found that disclosure of audit committee report and quarterly meeting would enhance the perceptions of users of financial statement concerning the effectiveness of the committee.
Pay for performance: Beating "best practices"
Authors: Hodak Marc
Published: December 2016

Widespread criticism of CEO pay packages have spurred directors to engage in a diligent search for best practices. This vigilance is transforming the process of executive compensation design, administration and oversight at many major public companies. But have all these process changes improved the compensation plans? We conducted empirical research on the way various compensation structures work for or against shareholder value creation. We looked at S&P 500 executive compensation plan data, supplemented by conversations with hundreds of executives and consultants. Against this standard, the evidence indicates that certain practices prove out favorably; some with plausible rationales have questionable value, at best, and some are clearly counter productive.
Supervisory board in an emerging economy: Meetings of the board
Authors: Kostyuk Alexander N.
Published: December 2016

It should note and take into account the dual structure of the boards in Ukraine, i.e. supervisory and management board and the process of the separation of ownership and control in Ukraine that still lasts as the result of privatization of the state property the supervisory board practices in the part of the board meetings are very unique and need a very thorough classifications before its investigating. Moreover, the legislation development in Ukraine is very weak from the point of view of the putting the various board practices in order. From this perspective we apply the following criteria to investigate the supervisory board meeting practices in Ukraine: Frequency of the meetings; The meeting duration; The meeting agenda; The meeting place; The meeting time; The meeting openness; Information.