bluuebunny/crossref_metadata_2025_split huggingface dataset:
The association between corporate governance and audit fees of bank holding companies
Authors: Boo El'Fred , Sharma Divesh 
Published: January 2010

PurposeThe purpose of this paper is to investigate whether corporate governance structures influence the audit process in terms of audit fee pricing for regulated companies.Design/methodology/approachThe paper first reviews prior literature and identifies factors within the categories of client size, audit risk, audit complexity, auditor‐related issues and corporate governance characteristics that are likely to influence audit fees of banking clients. It then regresses these variables on audit fees using an ordinary least square regression model for a sample of US listed bank holding companies (BHC).FindingsThe paper finds no significant association between most corporate governance variables and audit fees, suggesting that governance agents do not require additional assurance from the auditor, given close oversight by regulators. It also observes a negative association between audit committee independence and audit fees, implying that auditors reduce their effort and thus audit fees in the presence of an independent audit committee because they perceive that such committees reduce control and financial reporting risks.Originality/valueIn contrast with prior findings based on non‐regulated companies, governance agents in regulated companies such as BHC do not demand a more extensive audit. This reflects a substitution effect of regulatory oversight for internal governance monitoring. The paper also shows that BigN auditors modify their audit strategies in response to corporate governance mechanisms. Modifying audit strategies in accordance with the strength of governance mechanisms is consistent with recommendations in professional standards and would enable auditors to address risks more appropriately, thereby increasing audit quality and efficiency.
Corporate governance and the relationship between EVA and created shareholder value
Authors: El Mir Ali , Seboui Souad 
Published: January 2010

PurposeThe purpose of this paper is to find out whether governance mechanisms approximated by the board of directors' characteristics, auditors' quality, ownership structure and compensation mix, can help bridge the gap between economic value added (EVA) and market values approximated by created shareholder value (CSV).Design/methodology/approachBased on a sample of US firms and using available data for EVA, discriminant analysis and stepwise regression are used to test whether governance characteristics explain the differences between the results provided by the two measures of performance.FindingsThe results show that governance characteristics are important in explaining the differences between the results provided by CSV and EVA and that board independence, the auditors' expertise and reputation, the ownership structure and the stock‐options contribute significantly in explaining these differences.Originality/valueThe results are very relevant to academicians and practitioners concerned with performance measurement. They basically underline the importance of including governance characteristics in any evaluation formula.
Critiquing and contrasting “moral” stakeholder theory and “strategic” stakeholder: implications for the board of directors
Authors: Maharaj Rookmin 
Published: January 2010

PurposeThis paper aims to critique moral stakeholder theory (MST) and to contrast it to earlier strategic stakeholder approach (SSA).Design/methodology/approachInterview data were gathered from top executives at 12 companies in the energy sector in Canada and an in‐depth literature review was conducted on MST and SSA.Findings“Value” for shareholder and stakeholder may not be mutually exclusive in some instances. MST may hold the key to giving the board a more useful, comprehensive framework of the firm's utility and purpose to society.Practical implicationsOrganizations may be selected on their ethical performance by investors. Depending on whether ethical criteria are included in the definition of “firm's value”, decisions about which stakeholder theory to use become an issue of strategic importance to all organizations.Originality/valueThe paper illustrates how the board of directors as the governing body of the organisation may find that continuous assessment of the company's stakeholders is valuable in reducing risks.
Corporate governance and chief executive officer compensation
Authors: Petra Steven T. , Dorata Nina T. 
Published: January 2010

PurposeThis paper aims to examine whether there is an association between the level of performance‐based incentives offered to CEOs and the composition of firms' boards of directors and the compensation committee.Design/methodology/approachUnivariate tests are used to test the relation between the level of performance‐based incentives and corporate governance structures. A logistic regression analysis is used to predict the probability of CEOs receiving low performance‐based incentives when various characteristics of firms' boards of directors and compensation committees exist.FindingsThe authors find the presence of CEO duality reduces the likelihood of lower levels of performance‐based incentives offered to CEOs. Additionally, the authors find CEOs are more likely to receive lower levels of performance‐based incentives when the majority of the compensation committee members serve on less than three other boards, and when the size of the board is less than or equal to nine members.Research limitations/implicationsThis study is limited by the fact that the sample may not be representative of the general population of companies in the US.Practical implicationsShareholders who desire to keep CEO compensation levels low may consider supporting the separation of the positions of CEO and Chairperson of the Board, as well as supporting limiting the number of other boards directors may serve, and reducing or keeping the size of the board to a maximum of nine members.Originality/valueThe authors have documented an association between board structure and CEO compensation. It appears that company boards are able to monitor and control the compensation level offered to CEOs.
Rethinking directors' duties in changing global markets
Authors: Waring Peter 
Published: January 2010

PurposeThis paper aims to examine whether directors duties, as they are typically presented in Anglo‐American corporations law, remain appropriate and relevant given recent corporate governance developments and trends in global product and capital markets.Design/methodology/approachThe paper employs a comparative approach, examining aspects of corporate governance developments in the UK, the US and Australia.FindingsThe paper finds that product and capital markets are increasingly placing a premium on good corporate social responsibility and hence, Anglo‐American corporations law should be reformed to clarify directors' capacity to address broader stakeholder concerns.Originality/valueThe paper provides a comprehensive summary of important currents in contemporary corporate governance and provides a market‐driven justification for changing corporations law.
Corporate governance and the external monitoring of banks in Lebanon
Authors: Chahine Salim , Safieddine Assem 
Published: January 2010

PurposePrior research suggests that corporations in countries with a weak and illiquid stock market rely either on internal resources or on loans from the banking system, while family businesses, in their desire to maintain control, prefer debt to equity. Owing to the weak external monitoring role played by the financial markets in Lebanon, this paper aims to goes beyond the financial role played by Lebanese banks by investigating their role in monitoring corporate clients.Design/methodology/approachA survey was conducted which included 12 questions and focused on the role of banks in Lebanon in fostering proper practices of governance amongst their corporate clients. The completed surveys represent 24 banks, with more than 85 percent of the total deposits, 89 percent of the total loan portfolio, and spanning all bank groupings.FindingsThe paper finds that, in addition to their financing role, Lebanese banks are both active monitors of and resource providers to their corporate clients, which is consistent with Hillman and Dalziel.Originality/valueThe paper contributes to prior research on the role played by the banking system in supporting economic growth in developing countries, as well as the large number of reports and recommendations on corporate governance in the MENA region. The empirical findings indicate that developing‐country banks have a substitution role that allows them to act as channels for implementing good corporate governance practices. Specifically, the greater involvement of banks with their larger corporate clients may ensure better oversight of the risks encountered by banks in their clients' operating activities.
Complex accountability and power in global governance: issues for global business
Authors: Keohane Robert O. 
Published: January 2010

PurposeFirms and their executives need to recognize the political complexity of accountability demands, so that they are prepared by training to recognize the signs of change, analyze the strength of the forces behind various and often competing demands, and devise a response that is not only responsive to valid and strongly supported demands, but consistent with their organization's mission and ethic of responsibility toward broader publics and the public‐spirited values that we should all share. This paper aims to investigate these issuesDesign/methodology/approachThe paper identifies seven types of accountability mechanisms and considers their applicability to multinational corporations.FindingsThe paper finds that, to be able to respond quickly and effectively, firms need to be linked institutionally with advocacy groups as well as other firms, so that they get information about demands in a timely fashion and are able to communicate with the relevant actors to devise responses.Originality/valueThe paper gives an overview about different types of accountability in global governance and discusses how firms could face the challenges of complex accountability demands.
Global collaborative governance: there is no alternative
Authors: Zadek Simon 
Published: January 2010

PurposeEmerging collaborative arrangements between public and private institutions provide the potential for novel ways of enhancing the provision of public goods. This paper aims to explore the question whether formal mechanics rooted in complex institutional alliances are today's prototype of tomorrow's mainstream approaches to governance, or such mechanics are transitory stages or symptoms of governance challenges that will eventually be resolved through more traditional means.Design/methodology/approachThe paper focus on the role of business in these governance micro‐climates, although the analysis carries implications for public institutions and civil society organizations, and the final sections extend the country case analysis to related public policy strategies.FindingsCollaborative governance could be the common currency of decision making in the future and is preferable if it provides a means to overcome existing institutional constraints to effectively addressing social and environmental challenges.Originality/valueThe paper brings together the phenomena of collaborative governance and corporate responsibility.
CSR legislation in France and the European regulatory paradox: an analysis of EU CSR policy and sustainability reporting practice
Authors: Delbard Olivier 
Published: January 2010

PurposeThe aim of this paper is to investigate the corporate social responsibility (CSR) policy orientations in the Euopean Union (EU) by focusing on the specific case of the French legislation on compulsory sustainability reporting for publicly‐listed companies.Design/methodology/approachThe approach is mostly exploratory and based on secondary literature review as well as empirical classroom work on reporting.FindingsThis exploratory paper provides findings about the relevance of the French law, thus highlighting some critical aspects of sustainability reporting practices. It also raises the broader issue of the consistency of the European CSR approach.Research limitations/implicationsThis research needs to be completed by field studies on sustainability reporting practices both in France and in all EU members.Practical implicationsThis paper may help firms improve their sustainability reporting practices.Originality/valueThere have been hardly any papers on the impact of the French NRE law so far. Another original feature is the issue raised about the somewhat unclear links between environmental legislation and CSR policy in the EU. The paper provides a case for regulation in CSR, showing the possible positive impacts on corporate behavior.
Partnered governance: aligning corporate responsibility and public policy in the global economy
Authors: Midttun Atle 
Published: January 2010

PurposeThe purpose of this paper is to note the remarkable expansion of corporate social responsibility (CSR) throughout the late 1990s and early 2000s. Taking this as point of departure, it aims to discuss the potential for aligning CSR‐oriented industrial self‐regulation with public governance to fill some of the governance gap in the global economy.Design/methodology/approachThe paper provides a conceptual discussion, empirically underpinned by three case studies.FindingsThe paper finds that it is plausible, and empirically supported by the case studies, to conceive of a considerable role for CSR based self‐regulation in the global economy. A central precondition is the ability of civil society organizations to establish “moral rights” as credible voices for “just causes” in a media‐driven communicative society, and thereby put pressure on brand sensitive industry. The paper finds that corporate self‐regulation may fill a larger part of the governance gap if public policy is oriented to engage with industry in a partnered mode.Research limitations/implicationsThe paper establishes a conceptual base for exploring the governance implications of CSR, casuistically underpinned by three case studies. Further studies are needed, however, to explore the scale and scope of partnered governance in the global economy.Practical implicationsThe paper provides insights into an approach to increase governability of the global economy.Originality/valueThe originality of the paper lies in exploring the implications of CSR for governance, and for highlighting how the governance potential may be enhanced by reorientation of public policy.
Assessing corporate responsibility as a contribution to global governance: the case of the UN Global Compact
Authors: Arevalo Jorge A. , Fallon Francis T. 
Published: January 2010

PurposeThe changing nature of the interaction between multilateral institutions and the private sector, such as the one extended by the United Nations (UN) through the Global Compact, has raised profound questions about authority and legitimacy in international relations. This paper seeks to provide the criteria for fairly assessing corporate citizenship initiatives as these form an integral part of the changing nature of corporate governance.Design/methodology/approachThis paper uses the Global Compact's 2007 annual review as a point of reference and critical evaluation. The paper refers to the gap found among participants and their inability to answer to the relevant questions of corporate social responsibility (CSR) as originally set forth by the UN.FindingsThere has been a substantial increase in both scale and impact by this type of private sector initiative: a 50‐fold growth in just seven years – unlike any other international collaborative partnership. Based on the assessment, the ongoing question regarding its legitimacy, its operationality and efficiency for improving global governance still remains a challenge at large.Originality/valueEmpirical research on the impact, accountability, challenges and successes of the Global Compact is limited. The aim of this study is to progress understanding of both the limitations on, and opportunities for, the role of business in global governance when CSR is used as an international tool for community involvement. To this end, in addition to a critique of the UNGC's self‐assessment, the paper proposes a researcher's model for assessing corporate citizenship initiatives.
Contributing to sustainable development through multi‐stakeholder processes: practical steps to avoid the “resource curse”
Authors: McPhail Kathryn 
Published: January 2010

PurposeThis paper aims to identify the factors that have allowed some counties to avoid the so‐called “resource curse”; to determine practical steps that can be taken by companies, governments, local communities and aid agencies in collaboration to enhance mining's contribution to poverty reduction.Design/methodology/approachResearch was conducted collaboratively with the UNCTAD and the World Bank Group, overseen by an independent advisory group, and tested through two multi‐stakeholder workshops. Industry involvement in the initiative took place through an ICMM working group comprising around 20 companies and chambers of mines.FindingsSuccess depended on three factors: reformed mineral legislation, improved macroeconomic management and some improvements in governance.Research limitations/implicationsAlthough the robust nature of the processes employed can be demonstrated, the explicit aim of identifying factors that allow certain “successful” countries to avoid the resource curse has inherent limitations.Practical implicationsCompanies, governments, donors and other actors need to work together to help strengthen capacity in mining countries and regions, particularly at the sub‐national level.Originality/valueMining and metals companies have been at the forefront of some of the most innovative multi‐stakeholder processes of any industry sector. The paper outlines the causes, such as its poor reputation among stakeholder groups, and explores how the industry has sought to become more accountable to its stakeholders by demonstrably improving its sustainable development performance.
Business engagement in public programs: the pharmaceutical industry's contribution to public health and the millennium development goals
Authors: Sturchio Jeffrey L. 
Published: January 2010

PurposeThere is growing awareness that global public health problems are so complex, and require such major resources, that neither states nor other stakeholders can tackle them and achieve the millennium development goals (MDGs) on their own. This paper aims to examine the relevance of the MDGs to the pharmaceutical sector and summarizes the industry's contributions to helping achieve the MDGs in the context of its business goals.Design/methodology/approachThe paper reviews the MDGs for which industry has made significant contributions, particularly goal 4: reduce child mortality; goal 5: improve maternal health; goal 6: combat HIV/AIDS, malaria and other diseases; and goal 8: develop a global partnership for development. The paper focuses on two public‐private partnerships (PPPs) in particular – the Merck MECTIZAN® Donation Program, for the elimination of river blindness as a public health problem, and the African Comprehensive HIV/AIDS Partnerships to address the HIV/AIDS epidemic in Botswana – and outlines some lessons learned. The paper also offers some considerations for PPPs to contribute further to public health and the MDGS in the future.FindingsThe pharmaceutical industry has made some major contributions to addressing public health challenges. Along the way, companies such as Merck & Co., Inc. (Whitehouse Station, New Jersey; Merck operates in most countries outside the USA as Merck Sharp & Dohme) have learned useful lessons that can be shared to inform the approach and practices of other PPPs in global health.Originality/valueRelatively few overviews document the industry's contributions to public health, especially in relation to the MDGs. This paper provides a first step to fill that gap at a time when interest in PPPs is increasing.
Strategic planning and millennium development goals in Brazilian companies
Authors: Mokrejs Paro Roberta , Bruzzi Boechat Cláudio 
Published: January 2010

PurposeThis paper seeks to verify both the incorporation level of the Brazilian social and environmental challenges associated with the millenium development goals (MDGs) in the strategic planning of companies and the discrepancies found in the perceived interface between the business and those challenges.Design/methodology/approachThe paper analyses the incorporation into strategic planning, business impact and importance to business of each MDG‐related issue. The universe comprises companies formally engaged with sustainability from various sectors. Data are based on web‐based quantitative investigation.FindingsThe results point out that the MDGs perceived as important to business – environmental issues and education – are also those most incorporated in strategic planning. Poor housing supply and conditions and public health are at the bottom of both the importance and the incorporation lists. Negative impacts of business are hardly perceived.Research limitations/implicationsThe results found a call for a better elaboration on governance structures and on the roles of the state and of the business in tackling certain social issues, besides a reflection on the necessary conditions to build the capacity of the state.Practical implicationsUnclearly perceived interface between companies and social issues signal that further work is needed by business schools on that matter.Originality/valueThe paper indicates how much the MDG‐related issues permeate strategic planning. While these issues are associated with weak governmental performance, the paper identifies their limitations along the private sector by revealing which issues are more easily absorbed, and which might need other approaches to be tackled by society.
Quasi‐privatisation and corporate governance: a process perspective
Authors: Mador Martha , Springdal Kent , Dixon Sarah 
Published: January 2010

PurposeThe purpose of this paper is to evaluate the usefulness and relevance of a four stage model of privatisation, based in institutional theory, to quasi‐privatised organisations.Design/methodology/approachThe paper studies a UK organisation with changing ownership, governance, and boundaries. Historic Royal Palaces is intrinsically interesting, and resembles many quasi‐privatised organisations placed within charitable frameworks. Application of the process model reveals the governance challenges HRP faces.FindingsThe study suggests that the model is holistic and dynamic, and useful as an analytic template. It is inclusive of competitor, behavioural, and resource‐based views of the firm, and recognises that firms and their governance change over time.Research limitations/implicationsThe report adds validity to the model developed by case studies from a different national context. The small number of cases is a limitation. Future research could include other types of quasi‐privatised organisation, and organisations in different national settings.Practical implicationsThe model provides a helpful template for interpreting and explaining the changes enacted by organisations and their members through privatisation. Further, although largely descriptive, the model also has some predictive power. It can help policy makers and managers predict some of the key limitations of the privatisation process of a particular organisation based on the specific nature of its context and settings.Originality/valueThe detailed discussion of a quasi‐privatised organisation – an increasingly common, but little researched organisational type is significant. The development of a holistic approach for understanding organisational changes is also significant.