bluuebunny/crossref_metadata_2025_split huggingface dataset:
Cooperation patterns between capital owners and managers in the strategic management process: Case Estonia
Authors: Elenurm Tiit , Terk Erik , Andresoo Jan 
Published: January 2010

PurposeThe purpose of this research is to empirically describe the division of strategic roles between owners and managers and its change when moving from the post‐privatisation transition stage of 1995‐1999 to the European integration stage of 2000‐2004.Design/methodology/approachThe design takes the form of interviews with owners and top managers, questionnaire on managers' risk aversion, discussions in focus groups. A peculiarity of the study was a broad approach to owners‐managers interplay in strategy building and strategic decision making.FindingsAt least three patterns of role distribution could be observed in the owners' and managers' strategy development cooperation. Corporate governance (CG) culture in enterprises has improved, but the managers' freedom of action in strategy forming, especially in foreign‐owned companies, has not increased with the improvement and stabilisation of business environment, contrary to what could be presumed.Research limitations/implicationsAny limitations are due to predominantly qualitative nature of the research.Practical implicationsThe paper enables one to better understand limitations to firms' behaviour caused by CG and to better target respective consulting and training programmes.Originality/valueThe paper presents joint treatment of CG and strategy issues. It is one of the first attempts in post‐socialist countries to determine dynamics of CG beyond publicly traded companies.
Leading corporate citizenship: governance, structure, systems
Authors: Morgan Guy , Ryu Kwang , Mirvis Philip 
Published: January 2010

PurposeThe purpose of this paper is to benchmark how 25 companies in five industries are addressing corporate citizenship through their governance, structures and systems. The paper aims to look at patterns of leadership practice developing in firms in this regard and what might be shaping them. It also seeks to consider current practices in light of movement toward next‐generation corporate citizenship.Design/methodology/approachThe study surveyed a representative sample of Fortune 500 companies. To benchmark how companies are embedding citizenship into their governance, structure, and systems, two scorecards were devised measuring practices pertaining to: Corporate Board Governance; and Operational Management of Corporate Citizenship. Criteria chosen represent Board and management policies, behaviors, and/or public commitments.FindingsIt was found that, while corporate Boards are assuming more responsibility for oversight of conduct and taking account of specific social and environmental issues, citizenship is not yet fully embedded into Boards or the operating structures and systems of most firms.Research limitations/implicationsCompanies appear to be moving through developmental stages as they integrate citizenship into their governance and operations, with several developmental patterns emerging. While there seem to be specific patterns of development that link to the industry, issues faced, and culture of firms, it is difficult to generalize specific influences within industry from the relatively small sample. Further benchmarking is needed to better understand these issues and which ideas represent best practices going forward.Practical implicationsA next generation approach to corporate citizenship requires more than top down advocacy – this needs to be backed up by Board oversight and engagement and by layered management structures, systems, processes, and policies that make citizenship part of every employee's remit, across the company's value chain.Originality/valueThe paper provides a unique set of frameworks to assess company performance in relation to governing and managing corporate citizenship. It provides much needed data from companies across a number of industries to prompt further discussion on next generation corporate citizenship, where responsible business practices are woven into the corporate DNA.
Do better governed firms enjoy a lower cost of equity capital?: Evidence from Spanish firms
Authors: Reverte Carmelo 
Published: January 2010

PurposeThe purpose of this paper is to investigate the relationship between corporate governance and cost of equity capital for a set of Spanish firms.Design/methodology/approachThe paper focuses on five board characteristics that have received widespread attention in corporate governance literature (board independence, board size, existence of both audit and nomination/remuneration committees, CEO duality, and independence of board committees) in order to construct a summary corporate governance measure for each firm. Then, by using regression analysis, it examines whether higher governance quality is associated with a lower cost of equity capital.FindingsThe results show that stronger governance firms have a lower cost of equity capital with respect to firms with weaker governance, even after controlling for differences in Fama and French's risk factors (i.e. beta, size and market‐to‐book).Research limitations/implicationsThe dependent variable, i.e. the cost of equity capital, is an unobservable measure and, as such, it has to be estimated. Therefore, the results can be sensitive to the estimation method chosen.Practical implicationsThere is a growing literature showing that corporate governance enhances firm valuation. However, these studies typically assume that corporate governance affects firm valuation by reducing expropriation by insiders and improving the expected cash flows that can be distributed to shareholders. Whether those mechanisms also affect the other determinant of firm value – i.e. the cost of equity capital – remains largely unknown. Moreover, there is no evidence of this issue for the case of Spain.Originality/valueIt is hoped that the results from the paper will provide additional information concerning corporate governance to interested parties.
Corporate governance and intellectual capital: evidence from an academic institution
Authors: Safieddine Assem , Jamali Dima , Noureddine Sarah 
Published: January 2010

PurposeThe purpose of this paper is to examine the relationship between intellectual capital (IC) and corporate governance (CG) in a university setting. In particular, the aim is to argue that the lack of good CG can lead to an inability to attract and retain IC.Design/methodology/approachThe article tests the CG/IC relationship at the American University of Beirut (AUB) by surveying the perceptions of full‐time faculty members. The survey addresses, in particular, the factors that attract IC to AUB and their perception of several aspects of CG at the institution.FindingsThe results suggest that CG and IC are indeed related and that faculty members view CG as a major factor for IC attraction. Respondents also consider that existing IC enhances the institution's ability to attract more IC. However, the mixed perceptions of the governance structure in place at AUB, as revealed by faculty responses, weaken the support for a strong relation between CG and IC at the university. The results also unveil some areas to be improved in the way resources are run.Research limitations/implicationsThe response rate for the survey was limited. The findings may be more substantive and conclusive if the sample was larger. As the study was done for one organization only, more research is needed to further explore the relationship between CG and IC.Originality/valueThe paper is the first to provide empirical evidence on the influence of CG practices on attracting and retaining IC from a general as well as from an academic institution perspective.
Inculcating the ethos of public‐sector codes of ethics in Sweden: a longitudinal approach
Authors: Svensson Göran , Wood Greg 
Published: January 2010

PurposeThe purpose of this paper is to examine the measures put in place by the largest public sector organizations in Sweden in order to communicate the ethos of their codes of ethics to their employees.Design/methodology/approachThis paper is based upon a longitudinal survey approach.FindingsIn the public sector organizations of Sweden the use of regulations and staff support is rather modest in respect to the inculcation of codes of ethics artefacts into the organisations. This longitudinal approach indicates an overall increase across the examined areas in the usage of measures to support the ethos of public sector codes of ethics.Research limitations/implicationsThe artefacts to support the ethos inherent in public sector codes of ethics are rarely explored in the literature. This paper helps to fill this gap with the present longitudinal approach.Practical implicationsOne could speculate that society at large and its public sector organizations may have been influenced not only by the scandalous happenings of recent years in Swedish business, but also by the impact of an Anglo‐Saxon style of “corporatisation”, whereby public authorities take on the form of a corporation or business brought on by globalisation.Originality/valueThe present paper may be used as a point of reference for further research efforts.
Corporate social responsibility in the UK gambling industry
Authors: Jones Peter , Hillier David , Comfort Daphne 
Published: January 2010

PurposeThe purpose of this paper is to offer a preliminary case study exploration of the corporate social responsibility issues being addressed and reported by a number of the UK's major gambling operators.Design/methodology/approachThe paper begins with a short discussion of the characteristics and origins of CSR and this is followed by a brief outline of the structure of the gambling industry within the UK. The paper draws its empirical material from the CSR reports and information posted on the world wide web by a number of the major gambling operators and by a small number of organisations concerned with the regulation and social impact of gambling.FindingsThe findings reveal that there are substantial variations in the nature and the extent of reporting. Four companies produced CSR reports while others produced more limited information confined largely to responsible gambling. More specifically, the paper focuses upon four sets of CSR issues namely those relating to the marketplace; the workplace; the environment; and the community and then provides some reflections on these issues.Research limitations/implicationsCSR within the UK's gambling industry has received relatively little attention from academics but the paper suggests a number of fertile grounds for future enquiry and research. The paper offers a preliminary exploration of CSR issues as reported on the world wide web and more in depth work will be needed before more definitive conclusions can be drawn.Originality/valueThe paper provides an accessible review of the CSR issues and agendas being reported by some of the UK's major gambling operators and as such it will interest academics and practitioners working on and in the gambling industry and those professionals who work with the industry.
Roles of academic directors on US Fortune 500 boards
Authors: Peterson Craig A. , Philpot James 
Published: January 2010

PurposeThis paper aims to examine the prevalence of directors of US Fortune 500 firms who come from an academic background, and possible unique reasons for their appointment.Design/methodology/approachBased on extant theory of the resource‐dependence roles of non‐management directors, this study proposes and tests three hypotheses concerning distinctive reasons firms may appoint an academic to their boards. Academic directors may serve unique roles in increasing board demographic diversity, increasing firm intellectual capital, and providing links to local geographic constituents. Using year 2002 data from the US Fortune 500 firms, this study presents descriptive statistics and uses t‐tests and χ2 tests to examine hypotheses.FindingsFirms having academics on their boards have greater board demographic diversity than firms without an academic director. Firms with academic directors have the same average emphasis on knowledge‐based earnings as other firms. Academics associated with US top‐ranked universities tend to be more likely to hold board seats. Firms tend to select academic directors from the geographic regions where the firm is headquartered and have a slight tendency to use them on public affairs committees.Research limitations/implicationsThis study's findings highlight a unique non‐monitoring advantage of academic directors for firms seeking increased board diversity, and potential community/stakeholder liaisons.Practical implicationsFirms wishing to increase board diversity or improve relationships with other stakeholder groups may find academic directors useful to such efforts. Academic directors appear to be just as capable as other outside directors in developing firm intellectual capital.Originality/valueThis paper extends the present literature in resource dependence by examining academic directors, a new director subset. The paper is also unique in that it uses data collected from proxy statements, rather than survey data.
Corporate governance structure and firm performance in developing economies: evidence from Nigeria
Authors: Ehikioya Benjamin I. 
Published: January 2010

PurposeThe purpose of this paper is to examine the link between corporate governance structure and firm performance in Nigeria.Design/methodology/approachThe present study uses the regression model to analyze publicly available data for a sample of 107 firms quoted in the Nigerian Stock Exchange for the fiscal years 1998 to 2002.FindingsThe empirical investigations showed that ownership concentration has a positive impact on performance. Although the results revealed no evidence to support the impact of board composition on performance, there is significant evidence to support the fact that CEO duality adversely impact firm performance. The result also suggests firm size and leverage to impact on firm performance. A new variable, identified as more than one family member on the board, is found to have an adverse effect on firm performance.Research limitations/implicationsThe study relied much on publicly available data for a sample of 107 listed firms in Nigeria for the fiscal years 1998 to 2002. Thus, effort should be made to look at this study in a more elaborate viewpoint and across borders.Practical implicationsGood corporate governance standards are imperative to every organization and should be encouraged for the interest of the investors and other stakeholders.Originality/valueInterestingly, from a developing country perspective, especially in sub‐Saharan Africa, the paper is the first of its kind and offers evidence on the impact of corporate governance structure on firm performance. The paper provides useful information that is of great value to policy makers, academics and other stakeholders.
Agrícola Ebro's tender offer for Campos Chilenos to control Iansa
Authors: Parisi Franco , Nail Lance , Sciaraffia Vito 
Published: January 2010

PurposeThe purpose of this paper is to describe the wealth expropriation from minority to majority shareholders due to the lack of legislation protecting the interests of minority shareholders in an acquisition deal, validating the claims made on studies made by Zingales and by La Porta et al.Design/methodology/approachDespite an overall takeover premium of nearly 250 percent, most minority shareholders actually suffered wealth losses ranging from US$ 7.1 to 31.14 millions. These losses are measured using different methodologies, such as accounting value; liquidation value; and economic value.FindingsThe Campos Chilenos case study presented here serves as a testing platform for the relationship between well‐developed legal systems and economic development in both a current and future sense. In a current sense, the case illustrates how inadequate minority shareholder protection led to minority shareholder wealth expropriation, discouraging minority investment from both domestic and foreign investors (and limiting economic development).Practical implicationsFuture implications lay in the corporate governance regulation reforms passed in the aftermath of the Campos Chilenos case. If the Chilean government actively enforces new regulations, the level of economic development in Chile will exceed that of its peers in Latin America and other emerging economies, as claimed by La Porta et al.Originality/valueThis study will be useful for governance makers and regulators in emerging countries.
The effect of CEO ownership and shareholder rights on cost of equity capital
Authors: Huang Henry , Wang Quanxi , Zhang Xiaonong 
Published: January 2010

PurposeThe purpose of this paper is to investigate whether managerial ownership affects the association between shareholder rights and the cost of equity capital.Design/methodology/approachPrior literature has shown that strong shareholder rights are associated with a lower level of cost of equity capital. This paper empirically tests the interaction between managerial ownership and shareholder rights on affecting the cost of equity capital, using Gompers et al.'s governance score and Ohlson and Juettner‐Nauroth's estimate of cost of equity capital. To mitigate the endogeneity arising from other governance variables affecting both shareholder rights and the cost of equity capital, the paper adopts both OLS and two‐stage regression.FindingsThe results indicate that managerial ownership aligns managers' interests with those of shareholders, leading to a lesser degree of agency problems and lower cost of equity capital. Furthermore, the evidence suggests that managerial ownership could substitute for shareholder rights in affecting the cost of equity capital, making strong shareholder rights less important in a high managerial ownership setting.Research limitations/applicationsFindings in this paper suggest that firms need to consider the interaction between managerial ownership and shareholder rights in designing their governance structure to minimize their cost of equity capital.Originality/valueThis paper reveals the interaction between two major governance variables in affecting firm valuation.
CEO compensation as a process and a product of negotiation
Authors: Yao Yongheng , Appelbaum Steven H. 
Published: January 2010

PurposeThe purpose of this paper is to extend our understanding of CEO compensation by looking into the CEO pay‐setting process. Particularly, a process model is proposed to specify the interaction between situational indicators, process variables, contextual factors and CEO pay.Design/methodology/approachA modest review the major theories that are driving the field of CEO compensation study reveals several interesting findings. These models or perspectives provide valuable but incomplete understanding of the multifaceted phenomenon. Especially, the realm of CEO pay‐setting process is still unexplored. A process model of CEO compensation is developed to fill in this gap.FindingsCEO compensation is a negotiation between a CEO and a principal. Negotiated CEO pay is better predicted by CEO aspirations and principal reservations, rather than economic indicators. CEO power and the institutional environment have a moderating effect.Practical implicationsThe study suggests that a better theory is critically in demand in order to improve effectiveness of corporate governance. This paper underscores that a real challenge for a principal in influencing CEO pay is to anticipate CEO aspirations and to monitor the gaps between CEO aspirations and principal reservations, rather than to control economic indicators. Unfortunately, until now there has been very limited information about principal reservation and CEO aspiration.Originality/valueThis inquiry seeks to make a difference by moving CEO compensation research into a fruitful direction. To our knowledge, this inquiry is the first attempt that provides systematic explanation as to how and why situational indicators do not directly influence the negotiated CEO pay. The newly proposed model is much realistic, much integrative and much dynamic, compared with existing conceptualizations. Eight propositions are presented to guide empirical research as well as future theory development.
Towards an internal change management perspective of CSR: evidence from project RESPONSE on the sources of cognitive alignment between managers and their stakeholders, and their implications for social performance
Authors: Zollo Maurizio , Minoja Mario , Casanova Lourdes , Hockerts Kai , Neergaard Peter , Schneider Susan , Tencati Antonio 
Published: January 2010

PurposeThis paper aims to juxtapose two separate perspectives on corporate social responsibility (CSR) in terms of their ability to explain the cognitive alignment between managers and stakeholders on what constitutes the social responsibility of the focal firm, and to explain social performance.Design/methodology/approachThe authors take two perspectives: that of stakeholder engagement, which has historically characterized the debate on CSR; and that of internal change processes required to integrate CSR in a firm's operations. The authors analyze data from 427 interviews, of which 209 were with managers and 219 with stakeholders of 19 multinational firms in eight sectors, to assess the extent of cognitive alignment between managers and stakeholders on the conceptualization of CSR for the relevant firm, to determine which of the two theoretical perspectives is connected with the degree of cognitive alignment, and to determine which of the two is connected with the perception of corporate social performance (CSP).FindingsThe data examined show no evidence that the degree of sophistication in stakeholder engagement practices is connected with either the magnitude of cognitive gaps, or the level of CSP; whereas the degree of integration in internal operations is connected with both narrower cognitive gaps and higher CSP.Originality/valueThis paper tackles for the first time the problem of measuring and explaining the gaps between managers and stakeholders about their cognitive representations of CSR. The key result of the analysis is that the standard conceptualization of CSR as a stakeholder engagement process does not suffice neither to explain the variation across firms in their managers' cognitive alignment with stakeholders, nor to explain inter‐firm variation in social performance. The strongest explanation for both alignment and performance comes from the extent to which the firm has actually invested in internal change processes aimed at integrating the principles of CSR in the operations and strategies of the firm.