Internal Governance Mechanisms and Pension Fund Performance

PurposeThis study aims to examine the interplay between ownership structure (organisational form) and management control system (MCS) design as governance structures within Australian primary health-care organisations (PHOs), seeking support for the suggestion that professional services will be most efficiently and effectively provided in organisations that have internal governance that is matched to their ownership form.Design/methodology/approachThe analysis is based on a series of in-depth investigations into the MCS choices made by seven Australian PHOs. Arguing that the degree of information impactedness is inversely related to the level of general practitioner (GP) ownership, organisations where more than 50 per cent of the GPs working within the practice are owners are classified as “high ownership” (“low information impactedness”). The adoption by high-performing organisations of their predicted MCS archetype according to Speklé’s development is then interpreted as representing empirical support.FindingsThe findings provide uniform support for the importance of the match between ownership structure and internal governance mechanisms. As predicted, the two high-performing, high member-owned organisations reported MCS resembling exploratory archetypes, the three high-performing, low member-owned organisations reported MCS consistent with a boundary archetype and the two low-performing organisations reported little emphasis on any control.Research limitations/implicationsThis study provides evidence of the importance of the appropriate match between ownership structure and internal governance mechanisms for PHOs.Practical implicationsThis study has potential to assist managers, owners and advisors to optimise MCS design in professional services organisations where there is heterogeneous ownership by professionals.Originality/valueThis study is one of the few attempts to provide empirical support for the assertion of the importance of a match between ownership structure and MCS design. It also represents one of the few attempts to provide empirical support for Speklé’s (2001) control archetypes, here the boundary and exploratory archetypes, archetypes that are applicable within important sectors of the economy, notably the professional services sector.

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Executive stock option repricing, internal governance mechanisms, and management turnover

Journal of Financial Economics ◽

10.1016/s0304-405x(03)00111-9 ◽

2003 ◽

Vol 69 (1) ◽

pp. 153-189 ◽

Cited By ~ 91

Author(s):

N.K. Chidambaran ◽

Nagpurnanand R. Prabhala

Keyword(s):

Stock Option ◽

Governance Mechanisms ◽

Management Turnover ◽

Internal Governance ◽

Executive Stock Option ◽

Internal Governance Mechanisms ◽

Option Repricing ◽

Stock Option Repricing

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The mechanisms of governance in nonprofit organizations

Corporate Ownership and Control ◽

10.22495/cocv4i2p8 ◽

2007 ◽

Vol 4 (2) ◽

pp. 83-88

Author(s):

Cláudio Machado Filho ◽

Adalberto Fischmann ◽

Luciana Rocha de Mendonça ◽

Sandra Guerra

Keyword(s):

Nonprofit Organizations ◽

Agency Theory ◽

Theoretical Framework ◽

Governance Mechanisms ◽

Internal Governance ◽

For Profit ◽

Internal Governance Mechanisms ◽

The Relationship ◽

Performance Comparisons ◽

For Profit Organizations

This paper discusses the governance issues in nonprofit organizations (NPO). The theoretical framework of agency theory is used to analyze the relationship between agents and principals (donors and volunteers) in such kinds of organizations. Similarly to the for-profit organizations, the mechanisms of incentives and monitoring are crucial to the alignment of interests among principals and agents. However, considering the NPO’s intrinsic characteristics, due to the difficulty to implement external and internal governance mechanisms, the challenges of alignment are far more complicated. The NPOs are idiosyncratic, being in many situations complex to establish performance comparisons with similar organizations

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Internal governance mechanisms and the performance of decentralized financial systems in Niger

International Journal of Social Economics ◽

10.1108/ijse-11-2016-0342 ◽

2018 ◽

Vol 45 (4) ◽

pp. 629-643 ◽

Cited By ~ 1

Author(s):

Hamadou Boubacar

Keyword(s):

Social Performance ◽

Successful Outcome ◽

Governance Mechanisms ◽

Financial Systems ◽

Board Size ◽

Internal Governance ◽

Content Type ◽

Internal Governance Mechanisms ◽

Key Skills ◽

The Impact

Purpose The purpose of this paper is to study the effect of internal governance mechanisms on the financial and social performance of Niger’s decentralized financial systems (DFS). Design/methodology/approach This paper investigated the impact of the board size and the CEO/chairman duality on financial performance and sustainability, respectively, measured by the return on assets (ROA) and operational self-sufficiency on one side and social performance measured by the size of loans granted and the percentage of female borrowers on the other side. Findings The results show that board size positively and significantly affects the ROA. The author also concludes that the duality of decision and control functions promotes the financial viability of the DFS. Regarding the impact of internal governance on social performance, the author finds that board size positively and significantly affects loan size. Research limitations/implications This study focuses on Niger’s 13 largest DFSs. However, an analysis that also includes smaller firms may show different results. Practical implications A board size of between 5 and 15 members is recommended. This would help to incorporate key skills and the active involvement of all members. Originality/value This research highlights the importance of including internal governance mechanisms, underscores an interesting problem and answers questions raised in the existing literature by invalidating or confirming the results that have been obtained thus far. As the players in the microfinance sector recognize that sound governance is an important factor for a successful outcome in any microfinance institution objective, the paper helps shed some light on the situation of DFS in Niger.

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