Board Independence Research Papers - Academia.edu (original) (raw)

We present a model of CEO compensation where a board of directors which is not completely independent from the CEO set CEO pay. We show that the board’s monitoring intensity and the equilibrium pay-performance sensitivity of CEO’s pay are... more

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- Monitoring, Board Independence

The study aimed to establish the moderating effect of audit committee competence on the relationship between board of directors' attributes and financial sustainability of municipalities. The study used a survey approach and census balanced panel data design. The pri 1 mary data using structured questionnaire was distributed to 621 chief audit executives and board of directors and audit committee chairpersons in 207 out of the 260 municipalities. The study sampled observations for a five-year period (from 2016 to 2020) with 1035 observations for 207 municipalities. Data collected were analysed using partial least square-structural equation modelling. The findings indicated that all the variables (board size, board independence, board gender diversity, and audit committee competence) have a direct significant relationship with financial sustainability. The findings also showed that audit committee competence significantly moderates the relationship between board gender diversity and financial sustainability. However, audit committee competence does not have a significant moderating effect on the relationship between board size, board independence and financial sustainability.

- by Prof Cameron Modisane
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- Financial Accounting, Local Government, Gender Equality, Internal Audit

The study aims to identify the effect of corporate governance factors on financial institution performance in Bangladesh. This study employs annual data for 20 financial institutions, including banks, NBFIs, and insurance companies, data is collected from 2011 to 2022. Here, three corporate governance indicators are utilized – board size, board independence, and director’s ownership. The performance of the financial institutions is measured using return on assets (ROA), return on equity (ROE), and net asset value (NAV). Apart from the corporate governance variables, three company specific factors, i.e., firm age, financial leverage, and firm size, are used as the control variables. Panel data analysis is conducted through the dynamic Feasible Generalize Least Square (FGLS) method, and the robustness is performed using the random effect model. The results show that corporate governance parameter such as board size has a significant positive influence on financial institution performance in Bangladesh, where board independence and director ownership do not have a significant influence on the performance of financial institutions. Thus, the performance of financial institutions increases when board size increases. This indicates that board members are actively engaged in strategic decision-making and ensure the rights of all stakeholders, which helps improve financial institutions’ overall performance. Therefore, financial institutions may increase their board size to the maximum level to ensure better corporate governance practices in the organizations, which ultimately increases performance.

- by Tawfiq T Tawfiq
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- Corporate Governance, Performance, Panel Data, Financial Institutions

The general objective of the study is to investigate the moderating role of firm size on the relationship between liquidity management and profitability of listed consumer goods companies in Nigeria covering from 2013 to 2022. Data were obtained through secondary sources. Liquidity management was measured by debt ratio and current ratio; firm size was the moderating variable while profitability was measured by return on assets. The study used panel data and fixed effect regression model was found to be appropriate. Findings revealed that debt ratio and current ratio have positive and significant effect on return on assets, firm size has no direct relationship with return on assets. Similarly, firm size has negative significant moderating effect on the relationship between debt ratio, current ratio and profitability. It was recommended that companies should carefully manage their debt ratios, maintain an optimal current ratio and firms should optimize their debt management strategies to avoid potential negative effects on profitability.

- by Amiru L A W A L Balarabe
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- Corporate Finance

In agency relations, the goal of the owners is to maximize wealth and therefore in order to achieve this goal, they monitor the agent's work and evaluate his performance. In this study, the relationship between board errors and the value of the company's cash assets The securities listed on the Tehran Stock Exchange have been examined. This research is in the field of positive accounting research and based on real information in terms of quasi-experimental and post-event research methods. The statistical population of the research is the companies listed on the Tehran Stock Exchange. In order to test the research hypotheses, a sample of 148 companies was selected during the years 1399-1390. In this research, multivariate linear regression model has been used to test the hypotheses and combined data method and Eviews and Stata software package have been used to perform the necessary analyzes. The results of the hypothesis test showed that public ownership has a significant effect on the relationship between board error (appointment of a manager with a dual role) and the value of cash resources.

Corporate governance has been widely debated for over a decade with the collapse of the financial and capital market under the prejudicial roles of regulatory bodies. Therefore, the study examined the impact of corporate governance on firm value in Bangladesh. A total of 63 DSE-listed companies from 2005 to 2019 consisting of 8,505 observations on an average of 15 years were chosen. The subsequent tests for the given data were conducted to identify the appropriate panel data analysis method for adjusted diagnostic problems. In the specific panel data, the Panel Corrected Standard Error (PCSE) was utilised following the application of the random effects method to control econometric limitations. It was revealed that corporate governance lowered firm value when the board structure was familially and politically affiliated and led by CEO-duality. Moreover, the inclusion of dynamic professionals and independent members in the board structure increased the firm value. The use of the corp...

- by Mosharrof Mosharrof Hosen
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- Business, Accounting, Accountability, Corporate Governance

This study primarily purposes to empirically examine the impact of stakeholder engagement mechanism in the form of professional shareholders on the corporate social responsibility (hereafter CSR) disclosure and how the previous nexus is shaped and moderated by the level of board independence within a dynamic framework. An agency theory framework is adopted to understand the extent to which professional shareholders, such as government, institutional, and foreign, influence the firm's CSR reporting. To the best of our knowledge, most of the prior studies in the CSR field have not yet provided a profound analysis of the moderating effect of board independence on the relationship between ownership structure and CSR disclosure. Hence, working on this sensitive issue merits our attention and deserves our recognition. Due to endogeneity bias, our reported results vary in their significance level across the three econometric models: pooled ordinary least square, fixed effects, and two‐...

- by mohammad zaid
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- Business, Corporate Social Responsibility, Corporate Governance, Agency Theory

The board of directors, represented by the company's shareholders, supervises and controls the company. In the governance of the company, which is efficient and responsible for all those who communicate with the stakeholders, it is the director who is responsible for coordination and ensures the existence of culture and proper atmosphere in the system. The purpose of this research is to study the effect of the characteristics of the board of directors on the modified audit opinion of the company. The output of this research is limited to the years 2013-2020, and this research has one main hypothesis and four sub-hypotheses. The purpose of the research is applied research, and the research method is correlational in nature. The research was done in inductive analogical reasoning and panel elimination was used to analyze the hypotheses. The results of the research hypothesis test showed that the size of the board of directors has a positive and significant effect on the modified audit opinion of the company. Board independence has a negative and significant impact on the modified audit opinion. However, the impact of tenure and gender diversity on the modified audit opinion is not significant.

- by Alade Sule Omoye
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- Business, Accounting, Corporate Governance, Earnings Management
- by Mohamad Nizam Jaafar
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- Business, Accounting
- by Irene Koskei
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- Business, Marketing, Philosophy of Agency, Accounting
- by Irene Koskei
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- Business, Marketing, Philosophy of Agency, Accounting
- by Trang Lê Thị
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- Business, Accounting, Corporate Governance, STOCK EXCHANGE

This study investigates the critical role of corporate governance in facilitating positive organisational transformations and countering the detrimental impacts of egocentric leadership. By embracing a qualitative descriptive methodology, a comprehensive systematic review of literature was conducted, exploring the myriad facets of corporate governance, including its principles, processes, systems, legal frameworks, regulations, and corrective mechanisms. Findings from the review reveal an inverse relationship between robust corporate governance and the prevalence of egocentric leadership. A significant challenge identified is the limitation faced by boards of directors, metaphorically described as being "without a spare wheel", which hinders their capacity to address these governance challenges effectively in today's dynamic work environment. Furthermore, conflicts of interest were found to severely compromise the integrity of governance practices. It is recommended that boards failing to rectify non-compliance within their tenure should be subject to dissolution, contingent upon the specifics of the case. Additionally, it is imperative that organisations conduct thorough assessments and reviews of the effectiveness of their corporate governance, enhancing internal controls to enforce governance principles rigorously. This study is pioneering in integrating the transformation of corporate governance while delineating the obstacles encountered, concluding that organisations can promote and uphold exemplary governance by implementing stringent measures against violations and by rewarding adherence among stakeholders.

- by Normah Mutongerwa and +1
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- Corporate Governance, Internal Controls and Corporate Governance in the Public Sector

- by Hlalele Matebese and +1
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- Corporate Governance

This research examines the relationship between corporate governance and firm performance in listed companies within China's Greater Bay Area (GBA), analyzing data from the Hang Seng and Shenzhen Component Indices from 2015 to 2021 (Alzubi & Bani-Hani, 2021). A sample of 30 firms from Hong Kong and Shenzhen is investigated, considering corporate governance as the independent variable and return on assets (ROA), return on equity (ROE), and Tobin's Q as dependent variables. Control variables include firm size, age, board size, and the engagement of an external auditor from the Big Four. Findings reveal a 58 percent governance level in the Hong Kong and Shenzhen exchanges, consistent with prior studies (Buallay et al., 2017). Despite this, the research shows no significant impact of corporate governance on operating and financial performance, and factors such as the largest shareholder's ownership, board independence, and board size do not significantly influence firm performance. In light of these findings and limitations such as aggregated data and limited sample size, the necessity for further research is underscored.

- by Mariella Cavalcanti
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- Physics, Economics, Accounting, Estrutura de Capital
- by Keryn Chalmers
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- Business, Accounting, Corporate Governance, China

Earnings management is often investigated from the opportunistic perspective and rarely from the informational perspective. This study investigates earnings management from the informational perspective by incorporating underinvestment as a moderating variable in the relationship between earnings management and information asymmetry. A panel data regression analysis on firms listed on the Main Board of Bursa Malaysia reveals that earnings management reduces information asymmetry. We also provide evidence that underinvestment moderates the relationship between earnings management and information asymmetry. This finding suggests that earnings management among underinvesting firms reduces information asymmetry. Therefore, underinvestment motivates managers to convey informational earnings management.

- by Norman Mohd Saleh
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- Economics, Earnings Management, Panel Data, Asymmetry
- by Patrick Velte
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- Business, Corporate Social Responsibility, Accounting, Corporate Governance
- by Patrick Velte
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- Business, Finance, Corporate Social Responsibility, Accounting
- by Hudson Fernandes AMARAL
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- Physics, Economics, Accounting, Estrutura de Capital
- by Liliane Segura
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- Business, Sociology, Corporate Social Responsibility, Accounting
- by Henrique Formigoni
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- Business, Sociology, Corporate Social Responsibility, Accounting
- by Nurhazrina Mat Rahim
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- Business, Accounting, Corporate Governance, Working Capital
- by Purna Chandra Padhan
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- Economics, Hospitality, Capital Structure, Panel Data
- by Angus Corbett
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- Business, Publishing, Corporate Social Responsibility, Climate Change

Este trabalho procurou investigar se a independência dos Conselhos de Administração apresenta-se como fator condicionante da estrutura de capital de empresas de capital aberto, transacionadas na BOVESPA. Para alcançar o objetivo proposto, utilizou-se da modelagem de dados em painel estimados a partir da abordagem dos Efeitos Fixos (EF) e dos Efeitos Aleatórios (EA), para um horizonte temporal compreendido entre 2007 e 2011. Para se mensurar a independência dos Conselhos de Administração, foram levantados e analisados os seguintes dados: tamanho do Conselho de Administração; se o presidente do Conselho de Administração e o presidente da empresa são pessoas distintas; e se o Conselho de Administração possui apenas membros externos. Com relação à estrutura de capital das empresas, definiu-se como variáveis a serem analisadas: a relação Capital de Terceiros e Capital Próprio; relação Capital de Terceiros/Passivo Total; relação entre Dívida Bruta e Patrimônio Líquido; e Dívida Total Brut...

- by Guilherme Pedrosa
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- Humanities, Political Science

The purpose of this study was to enhance the understanding of the factors determining the existence of a "Corporate Social Responsibility" (CSR) committee on the board. Focusing the attention on board composition, this paper explores how female directors influence the existence of a CSR committee, and how this effect can be moderated by the independence of board members. To be able to test the aims of the study, an international sample of analysis of 4,168 firm-year observations from 2012 to 2016 was used, proposing several models for panel data. The findings revealed that female directors exert a positive influence on the existence of a CSR committee, although this commitment is limited when in addition to women, they are independent directors on the board. Therefore, it can be said that board gender diversity and board independence are not complementary mechanisms that favour the existence of a specific committee on CSR. This study is one of a limited number of studies to focus on the antecedents of existence of a CSR committee in firms. In addition, the study obtains benefit by considering the independence of board of directors as a moderating variable on the relationship female directors-sustainability. In contrast with previous studies based on the cross-sectional data from a single country, the data set of the current study includes a panel data comprising of a period between 2012 and 2016 and an international sample from 44 countries in six continents.

- by MOHAMMED NUHU
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- Business, Accounting, Corporate Governance, Composition
- by Arfan Ali
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- Business, Accounting, Corporate Governance, Panel Data
- by DR MARJAN MOHD NOOR
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- Business, Marketing, Economics, Accounting
- by Md. Tariqul Islam
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- Business, Accounting, Corporate Governance, STOCK EXCHANGE

Este artigo tem como objetivo investigar a relacao entre independencia do conselho de administracao e maturidade da divida em empresas com acoes listadas na BM&FBOVESPA, considerando o periodo de 2010 a 2014. Fundamentado na teoria da agencia, este artigo fez uso de abordagem explicativa e documental. Foram utilizados modelos baseados em dados em painel, sendo considerada a possibilidade de endogeneidade no modelo econometrico. Os resultados dos testes nao trouxeram evidencias estatisticas que pudessem corroborar a existencia de relacao entre independencia do conselho de administracao e maturidade da divida. Os achados deste artigo ainda contribuem com outras pesquisas relacionadas, na medida em que mostra os resultados do estudo desta relacao, aplicado em uma amostra de empresas brasileiras, ambiente ainda carente de pesquisas neste tema tao importante para a governabilidade das empresas. Cabe ressaltar que as objecoes conclusivas desta pesquisa se aplicam apenas ao conjunto de emp...

- by Ademir Clemente
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- Physics, Political Science

The paper aims to review studies dealing with audit report lag or audit delay and the Audit Committee in accounting literature over the period of 2006-2022. Research on factors related among audit report lag and audit committee has become more widespread in recent years and there was a considerable upsurge in these papers. This study combines electronic and manual searches to identify relevant studies. The search was performed using keywords such as “audit committee” and “audit report lag” or "audit delay" or "audit lag" and in total, 35 published studies were identified. The findings show that the majority of research studies the relevance of audit report lag / audit delay to the effectiveness of the Audit Committee which represented by its key characteristics (size, independence, member financial expertise, frequency of meetings, presence of women). The future shows that researchers are turning to additional characteristics of Audit Committee members to check w...

- by Alkiviadis T Karagiorgos
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- Business, Accounting, Internal Audit, Audit
- by Donna L.street
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- Business, Accounting, Corporate Governance, The Internet

The study aimed to assess the influence of corporate governance on social responsibility, applied on the Palestinian Investment Fund. The study utilized a quantitative analytical approach and gathered essential data from the Investment Fund's annual financial reports spanning the period from 2006 to 2020, available on its official website. The content analysis method, employing a checklist for measuring the social responsibility disclosure index, was applied to the annual financial reports. Data processing was carried out using SATAA. The study's findings revealed that corporate governance, particularly in its dimensions of board size, double CEO, independence, and gender diversity, significantly impacted social responsibility across dimensions combined, including society, environment, employees,

- by Dr-Bahaa Awwad and +1
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This paper investigates the effect of the economic value added (EVA) performance evaluation on the value of the cash holdings of Tehran Stock Exchange firms. The aim of this study is to investigate the influence of the underinvestment modification and overinvestment restraint on cash holding. To do so, Pinkowitz and Wiliamson model was used to investigate 127 companies between 2004 and 2013. This study is applied in purpose and descriptive correlational in method. Eviews software was used to analyze the data. The results of the study show that economic value added performance evaluation decreases the underinvestment and the overinvestment of Tehran Stock Exchange firms and on the other hand, economic value added performance evaluation increases the value of cash holding. This study contributes to the emerging literature related to cash holdings and the economic consequences of the economic value added performance evaluation policy. It expands the literature related to investor prote...

- by ghazaleh razeghi
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- Business, STOCK EXCHANGE
- by 晉嘉胡
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- Economics, Econometrics, Corporate Social Responsibility, Corporate Governance

Finansal raporlamada amaç, raporlayan işletmenin finansal durumunu ve performansını ortaya koymak; bu suretle tüm paydaşların ekonomik kararlarına yarar sağlayacak nitelikli finansal bilgiyi sunmaktır. Nitekim kavramsal çerçevede finansal bilginin taşıması gereken niteliksel özellikler sıralanmıştır. Teorik olarak finansal bilginin niteliksel özellikleri taşıması bir gereklilik olsa da pratikte kamuoyu ile paylaşılmış olan raporların belirtilen bu nitelikleri gerçekten haiz olup olmadığı önemli bir araştırma sorusu olmaktadır ve literatürde de bu soruya cevap arayan çok sayıda çalışma yer almaktadır. Bu çalışmanın amacı da ikincil niteliksel özelliklerden biri olan zamanlılık bağlamında, 2015 – 2019 yılları arasında Borsa İstanbul (BIST) Sınai Endeks’te kesintisiz olarak işlem gören 136 şirketin anılan 5 hesap dönemindeki, yıllık finansal raporlarından oluşan örneklem ile (680 gözlem ile) finansal raporların kamuoyuna açıklandığı tarih üzerinde etkili olan faktörlerin incelenmesi ve...

- by Prof. Dr. Fevzi Serkan OZDEMIR
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- Business, Accounting, Earnings Management, Audit
- by Muideen Adeseye Awodiran
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- Business, Corporate Social Responsibility, Accounting, Multidisciplinary
- by Patrick Velte
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- Business, Finance, Corporate Social Responsibility, Accounting
- by Joy Elly Tulung
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- Business, Accounting, Corporate Governance, Top Management Teams
- by Joy Elly Tulung
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- Business, Accounting, Corporate Governance, Top Management Teams
- by olfa maalaoui chun
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- Business, Risk Management and Insurance, Finance, Accounting

This study sought to investigate the connection among board
gender diversity and earnings management of listed industrial goods
companies in Nigeria for the period of 2018-2022. The study used
retrospective research design and stakeholder theory to anchor the
work. The predictor variable of the study board gender diversity was
proxies with male board members (MBM) and female board members
(FBM) while the dependent variable earnings management had its
dimension as earning per share (EPS). The data obtained from the
audited annual report of the company used were analysed using
descriptive statistics and regression techniques. The finding depicted a
positive significant connection amid female board members and
earnings per share. Likewise, a significant negative relationship was
found between male board members and earnings per share. The study
concludes a significant relationship between board gender diversity
and earning management of listed industrial goods companies in
Nigeria. The study recommended that more competent and educated
females should be appointed to the board of the corporation and that
the number of male board members currently should be reduced to
improve earnings in the corporation.

- by Jonah Ngbomowa Moses
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- Financial Accounting

Inevitably, an accurate and timely financial statement contributes enormously to the success of many organizations. Therefore, accuracy and availability about financial information is vital for investors and shareholders in order to ease their decision making process. This paper aims to analyze the relation between the characteristics of corporate governance; board independence, ownership concentration, audit committee independence, expertise, meeting, size, internal audit investment and audit report lag among companies listed under Bursa Malaysia. The samples covered are among 180 companies listed at Bursa Malaysia for 2009 and 2010. The samples were chosen randomly from 843 companies, the population. Descriptive statistics have been used to provide better perception of the length of time needed by an auditor, to complete an audit. The results show that in average, the companies took about 100 days to complete their audit report with maximum and minimum days of 148 days and 26 days respectively. In addition, regression analysis was used to provide empirical evidence on which variables had strong bonding with audit report lag. The outcomes elicit that audit committee size, ownership concentration; organization size and profitability are significantly associated with audit report lag. However the other six variables (audit committee independence, meetings, expertise and types of auditors) were found to have insignificant relationship with audit report lag.

- by Marjan Mohd Noor
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- Accounting and Auditing
- by Ivy Eklemet
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- Business, Accounting, Gender Diversity, Endogeneity
- by Taekjin Shin
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- Business, Accounting, Shareholder, Dismissal

Using a sample of private manufacturing small-and medium-sized enterprises (SMEs) in the period 2007-2015, this paper examines the effect of government support on firms' financial performance in Vietnam. Contrary to many previous studies, the study finds that government assistance affects firms' financial performance after controlling for heterogeneity, unobservable factors, and dynamic endogeneity. The finding supports the viewpoint of institutional theory. The study also reveals that assistance measures, such as tax exemptions, soft loans, and investment incentives to promote financial performance, are vital for the development of Vietnamese private SMEs.

- by Nguyen Thi Thu Hoai
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