scholarly journals Editorial note: Theory and practices of the corporate board in the international context

2019 ◽  
Vol 15 (2) ◽  
pp. 4-6
Author(s):  
Montserrat Manzaneque-Lizano
Keyword(s):  
Corporate Governance ◽  
Editorial Note ◽  
Corporate Board ◽  
International Context ◽  
Interdisciplinary Dialogue ◽  
Governance Practices

Nowadays, literature and practitioners, from a theoretical and empirical focus, agree that corporate governance efficiency is essential to achieve the long-term sustainability of firms and institutions. This issue of the journal marks another step in this area, providing an interdisciplinary dialogue on diversity in corporate governance practices.

scholarly journals Benchmarking boards of directors for better corporate governance

2020 ◽  
Vol 16 (2) ◽  
pp. 8-18
Author(s):  
Hugh Grove ◽  
Mac Clouse ◽  
Tracy Xu
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Boards Of Directors ◽  
Success Factors ◽  
Market Performance ◽  
Lessons Learned ◽  
Future Research ◽  
Corporate Board ◽  
Governance Practices

The key question and major lessons learned in this research are that individual companies and their boards of directors could use the board director benchmarking information compiled in the Conference Board Report to assess their own boards of directors’ corporate governance practices. For an initial benchmarking approach, this paper compared a poor long-term market performance company (Grove & Clouse, 2019) with a strong long-term market performance company (Grove & Lockhart, 2019). The following benchmarked differences in the boards of directors of these two companies were key success factors for constellation: specific industry knowledge, younger directors, coaching/nurturing, involved roles, long-term compensation of directors, no board entrenchment, board assessment, and board committee rotation. The major sections of this paper are literature review, corporate board practices, benchmarking board of directors: poor long-term market performance example, benchmarking board of directors: strong long-term market performance example, conclusions, and future research. A major limitation of this paper, which could be investigated in future research, is to analyze benchmarked board categories to see if they help explain differences in comparative long-term market performances by many companies since companies and their markets are diverse.

scholarly journals The Impact of Corporate Governance on Company Performance: A Study among Medium and Large Enterprises in Kosovo

2018 ◽  
Vol 9 (6) ◽  
pp. 207-212
Author(s):  
Saxhide Mustafa ◽  
Hajdin Berisha ◽  
Shyqyri Llaci
Keyword(s):  
Corporate Governance ◽  
Company Performance ◽  
Governance System ◽  
Market Experience ◽  
Corporate Governance System ◽  
Governance Practices ◽  
The Impact ◽  
Proper Balance ◽  
Large Enterprises

Abstract An effective corporate governance system is established to ensure proper balance of long-term interests of different stakeholders (primarily: owners, employees and management) and improve company's performance and its competitive position in the market. This paper provides a theoretical discussion and empirical evidence on the interdependence between corporate governance and company performance among medium and large enterprises in Kosovo. A questionnaire survey was employed for data collection purposes. The study included a sample of 87 managers from 87 medium and large enterprises. Results indicate that effects of corporate governance on the performance tend to be greater in larger companies. Regarding the determinants, the theoretical expectations are confirmed. Results confirm that the size of the company, the level of investment, export activities and company life expectancy are statistically significant determinants of the adoption of corporate governance practices. As a result, larger companies with large scales of investment and longer market experience tend to adopt more corporate governance practices. The study suggests that corporate governance will inevitably affect companies’ performance and further research is needed in this context.

scholarly journals The relationship between corporate governance and firm performance revisited: where do we stand?

2010 ◽  
Vol 7 (3) ◽  
pp. 124-137 ◽  
Author(s):  
Stefan Hilger
Keyword(s):  
Corporate Governance ◽  
Business Models ◽  
Corporate Performance ◽  
Holistic Approach ◽  
Governance Mechanisms ◽  
Governance Practices ◽  
The Usa ◽  
The Impact ◽  
The Relationship

How is corporate governance measured, and what is the relationship between corporate governance mechanisms and corporate performance? This paper aims to shed light on these questions by providing an overview of the most important research findings in this area with a focus on the USA and Germany. My analysis gives rise to the following remarks. First, studies examining the impact of singles governance mechanisms are inconclusive and mixed in their findings, and especially the question of causality is still unanswered. Second, when a holistic approach is used, the proposition that good corporate governance enhances long-term performance is supported. However, corporate governance practices alone cannot assure long-term corporate performance and good standards of corporate governance are no substitute for the solidity of business models.

Corporate Governance

2018 ◽  
Author(s):  
Jackie Krafft ◽  
Jacques-Laurent Ravix
Keyword(s):  
Corporate Governance ◽  
High Risk ◽  
Empirical Evidence ◽  
Negative Relationship ◽  
Positive Relationships ◽  
Shareholder Primacy ◽  
Innovative Performance ◽  
Governance Practices ◽  
The Impact

Little attention has been devoted to the impact of corporate governance practices on firms’ innovative performance. This chapter reviews the literature to show that there is theoretical ambiguity. There is the argument that corporate governance and new forms of finance realign managers’ interests, with greater efficiency for all types of investments. However, some argue that innovative R&D has distinctive characteristics, like high risk and long-term horizon, that may modify the efficiency effect. The issue has generated many studies where the long tradition of positive relationships between governance and efficiency is now contrasted by some recent empirical evidence suggesting a negative relationship. The chapter argues that shareholder primacy or owner activism in corporate governance and new forms of finance represent a potential mismatch with innovation.

Corporate board for innovative managerial control: implications of corporate governance deviance perspective

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Irfan Saleem ◽  
Mujtaba Nasir Ali Khan ◽  
Rashedul Hasan ◽  
Muhammad Ashfaq
Keyword(s):  
New York ◽  
Corporate Governance ◽  
Stock Exchange ◽  
Management Control ◽  
Corporate Board ◽  
Managerial Control ◽  
Governance Mechanisms ◽  
Content Type ◽  
Governance Practices ◽  
The Impact

Purpose Drawing from the firm’s entrepreneurial identity and ecology perspectives, this study aims to explain why the firms deviate from standard corporate governance practices and apply innovative management control. Design/methodology/approach The authors used a panel of 2,538 public companies listed with the New York Stock Exchange to explain the impact of corporate governance deviance on firm’s performance. The authors relied on unique governance variables extracted from the Bloomberg database to develop the governance deviance index. Findings Study unveils that deviance from governance practices influences firm’s performance. Consequently, it can be said that the firms which use innovative governance mechanisms, usually stay ahead of the market by leading the governance trends. The findings also generalise the firm’s entrepreneurial identity and organisational ecology perspectives. Research limitations/implications Research implies that the firm’s entrepreneurial identity demands innovative managerial control. This study is focused on the US financial market, but in future, researchers could revalidate the deviance index. Scholars can also use mixed methods to test the need for innovative governance mechanisms in emerging markets. Practical implications The firms should focus on innovative governance practices not only to safeguard the firm’s entrepreneurial identity but also to pursue the growth objectives. Such innovative mechanisms and managerial controls are helpful to deal with industrial transformations to satisfy key stakeholders. Originality/value The study contributed to governance and management control research by sharing insights and catering the potential endogeneity problem faced to measure corporate governance measures. The study also proposes an alternative testing tool to measure governance deviance to add methodological uniqueness and reduce knowledge gap.

scholarly journals Editorial: Advancing research on good corporate governance practices: The role of the board

2020 ◽  
Vol 16 (2) ◽  
pp. 4-6
Author(s):  
Giorgia Profumo
Keyword(s):  
Corporate Governance ◽  
Risk Taking ◽  
Board Structure ◽  
Corporate Board ◽  
Good Corporate Governance ◽  
Governance Practices ◽  
Board Director ◽  
Innovation Governance ◽  
Information Board

The latest issue (volume 16, issue 2) of the journal Corporate Board: Role, Duties and Composition is exploring the topics of board director benchmarking information, board gender and risk-taking, board structure and firm performance, corporate veil and innovation governance. Overall, the articles in the present issue are dealing with timely topics and their results call for further research as, in some cases, they are challenging traditional corporate governance theories.

scholarly journals Editorial: Advances in corporate governance practices

2021 ◽  
Vol 17 (1) ◽  
pp. 4-6
Author(s):  
Sabri Boubaker
Keyword(s):  
Corporate Governance ◽  
Internal Audit ◽  
Codes Of Ethics ◽  
The United States ◽  
Auditor Independence ◽  
Management Control ◽  
Corporate Board ◽  
High Quality Research ◽  
Public Company ◽  
Governance Practices

Corporate governance has gone through three decades of profound changes in terms of new regulations, new practices, and environmental conditions. Many countries drafted guidelines for best corporate governance practices following Cadbury report (Cadbury, 1992). These practices were mainly related to the board of directors (composition and functioning), internal controls, and internal audit. The Enron scandal followed by the collapse of Arthur Andersen, one of the big five audit firms, and the enactment of the “Public Company Accounting Reform and Investor Protection Act” (Sarbanes-Oxley law) in 2002 were other milestones in the evolution of corporate governance. This law brought about significant changes related to public company accounting oversight, auditor independence, financial disclosure, and corporate responsibility. The financial crisis in 2008 started in the United States and has shaken the world economy. This crisis was due to weak corporate governance that led to fraudulent financial reporting and excessive risk-taking. Grove and Victoravich (2012) consider CEO duality, lack of board independence, weak management control systems, short-termism, weak codes of ethics, and opaque disclosures among the main drivers of this crisis. The COVID-19 has consistently shown that firms with better corporate governance and corporate social responsibility practices were the most resilient entities during the first quarter of the pandemic (Ramelli & Wagner, 2020). All these topics are addressed in this collection of high-quality research papers of this year’s first issue of Corporate Board: Role, Duties, and Composition.

scholarly journals Passive investors: Implications for corporate governance

2020 ◽  
Vol 4 (2) ◽  
pp. 8-17 ◽  
Author(s):  
Hugh Grove ◽  
Mac Clouse ◽  
Thomas King
Keyword(s):  
Corporate Governance ◽  
Stock Prices ◽  
Research Question ◽  
Theory And Practice ◽  
Investment Horizon ◽  
Short Term ◽  
Valuation Model ◽  
Governance Practices ◽  
Passive Investors

The key research question of this paper is to explore the major implications for corporate governance from the emergence and perspective of passive investors. Passive investors care more about long-term governance practices than short-term financial metrics. They do not trade shares when accounting balances or stock prices fluctuate since they have a long-term perspective. They desire a new investor relations approach, based upon independent directors discussing key corporate governance topics of board refreshment, sustainability, and compensation with the stewardship officers of passive investors. Thus, financial accounting is moving back to a stewardship purpose of accounting versus an investment valuation model. The corporate governance literature relating to investors has only focused on active, not passive, investors. The emergence and perspective of passive investors are relevant for updating the theory and practice of corporate governance as follows. Passive investors have a long-term sustainability perspective, not a short-term focus to make financial analysts’ quarterly predictions. Passive investors focus upon three board of directors’ committees: nominating, audit, and compensation, with emphasis on a stewardship officer, a lead director, board refreshment, an indefinite investment horizon, and sustainability risks.

scholarly journals Editorial: Strategy development for uncertain times

2021 ◽  
Vol 17 (2) ◽  
pp. 4-6
Author(s):  
Pedro B. Água
Keyword(s):  
Corporate Governance ◽  
Ethical Leadership ◽  
Boards Of Directors ◽  
Corporate Strategy ◽  
Strategy Development ◽  
Corporate Board ◽  
Strategy Formulation ◽  
Competitive Edge ◽  
Fit For Purpose

Corporate strategy is considered a central driver of a firm’s long-term orientation, a key influencer in corporate performance, and nowadays being impacted by an increasing business endeavour where complexity is the new normal. Corporate governance suggests that boards of directors have the duty to govern the firms they are responsible for, and doing so in a sustainable way. Hence, boards are supposed to make relevant decisions on corporate strategy. How is, however, strategy translated into the board agenda? Corporate governance faces a new set of challenges as a great deal of countries are progressively getting out of the pandemic constraints that have slowed economic performance for most businesses. The way strategies will be developed will dictate their fit for purpose. Such strategies will have to cope with increasing sustainability goals; provide a competitive edge against competitors’ technological edges and innovation in general. Such strategies will have to deal with innovative usages of IT and potential business disruptions that may be triggered by digital transformation. All such paradigm changes will demand more effort from boards, and force them to dive into unusual fields, such as learning about complexity and systems thinking. As important as strategy formulation is ethical leadership for strategy deployment and sustainability. Overall, such topics are placed high on boards agendas and are addressed in the current issue of Corporate Board: Role, Duties and Composition.

International Integration and Corporate Governance Practices in Russia

2015 ◽  
pp. 239-267
Author(s):  
Andrey Yukhanaev ◽  
Thuyuyen Nguyen ◽  
Dilek Demirbas ◽  
Peter Galvin
Keyword(s):  
Corporate Governance ◽  
Institutional Environment ◽  
Good Governance ◽  
International Standards ◽  
Corporate Board ◽  
Public Companies ◽  
Corporate Development ◽  
Foreign Companies ◽  
Governance Practices ◽  
International Convergence

This chapter considers the institutional environment in Russia, its potential impact upon governance practices, and the attitudes of Russian executives towards the alignment of governance processes relative to international standards. Focusing on corporate board directorship, the research addresses the extent that the harmonization of governance to international standards may assist boards of directors to improve their corporate development. Using a survey questionnaire, the authors explore perceptions of directors of public companies concerning the challenges of corporate governance development in the country. The study illustrates unanimity among the respondents about the reforms needed for international convergence of corporate governance standards. The results reveal that institutional alignment with good governance principles will foster strategic corporate development in the Russian economy. The study offers insights to policymakers in terms of enhancing legitimacy of corporate governance in the Russian context and provides a perspective for executives of foreign companies considering investment in the country.

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