scholarly journals Firm complexity and corporate board size: testing the moderating effect of board leadership structure

2010 ◽  
Vol 7 (4) ◽  
pp. 114-126 ◽  
Author(s):  
Hayam Wahba ◽  
Khaled Kadry Elsayed
Keyword(s):  
Corporate Governance ◽  
Organizational Adaptation ◽  
Corporate Board ◽  
Board Size ◽  
Policy Makers ◽  
Listed Firms ◽  
Board Leadership ◽  
The Board Of Directors ◽  
Leadership Structure ◽  
Board Leadership Structure

Most prior studies have argued that the relationship between firm complexity and board size is a monotonic one: complex firm tend to have a large board size. Contrary to previous work, it is hypothesized in this study that this relationship is more likely to be moderated by board leadership structure. Using a sample of 92 Egyptian listed firms over the period from 2000 to 2004, we found that firm complexity exerted a positive and significant coefficient on board size when the firm adopts a leadership structure that separates the roles of CEO and chairman. However, the incremental effect of firm complexity on board size was negative and significant for firms that combine the roles of CEO and chairman (i.e., CEO duality). This study provides supportive evidence for the argument that firms are more likely to manipulate their boards’ characteristics to attain organizational adaptation at the minimum total cost. Thus, studying of one main characteristic of the board of directors without taking into account the expected effect of other characteristics may lead to inconclusive evidence. This study offers insights to practising managers and policy makers. If practising managers want to maximize the value of their firms, they need to broaden their insight to understand that board characteristics are multidimensional, contingent and dynamic in their nature and differ not only across firms and industry, but also across countries. Moreover, before developing and launching new and additional corporate governance reforms, policy makers need to realize that differences in corporate governance systems cannot be fully explained outside their institutional environments.

scholarly journals Board leadership structure and firm risk-taking behaviour.

2008 ◽  
Vol 6 (2) ◽  
pp. 52-60
Author(s):  
Yi Wang ◽  
Trevor D. Wilmshurst
Keyword(s):  
Board Of Directors ◽  
Risk Taking ◽  
Firm Risk ◽  
Listed Firms ◽  
Board Leadership ◽  
The Board Of Directors ◽  
Leadership Structure ◽  
Potential Impact ◽  
Board Leadership Structure ◽  
Archival Study

In this paper the conceptual frameworks, which make different predictions about the effect of board leadership structure on firm risk-taking behaviour, are examined. From a sample of 243 Australian listed firms, it is found that leadership structure does not have any significant influence on firm risk; higher blockholder ownership or lower dividend payout is related to increased performance variance. This research suffers from some limitations; the archival study of the functional background of board chairman may not reveal the underlying relationship between the board of directors and firm risk-taking behavior. We only test the influence of leadership structure on performance variance; further research could investigate the potential impact of board composition on firm risk-taking propensity.

scholarly journals Corporate governance, cultural factors and voluntary disclosure: Evidence from selected companies in Bangladesh

2012 ◽  
Vol 8 (1) ◽  
pp. 48-61 ◽  
Author(s):  
Md. Akhtar Uddin ◽  
Md. Abdur Rouf
Keyword(s):  
Corporate Governance ◽  
Voluntary Disclosure ◽  
Audit Committee ◽  
Listed Companies ◽  
Cultural Factors ◽  
Board Size ◽  
Management Ownership ◽  
Board Leadership ◽  
Leadership Structure ◽  
Board Leadership Structure

This research aims to test empirically the relationship between corporate governance, cultural factors and voluntary disclosure by the listed companies in Bangladesh. The corporate governance factors examined are proportion of independent non-executive directors (INDs), board leadership structure, management ownership, board size and audit committee size. The extent of voluntary disclosure level is measured using 68 items of information. Data are taken from annual reports of the listed companies in Bangladesh. The result shows a positive association between board size, board leadership structure, audit committee size and voluntary disclosure. However, no evidence is found to support the contention that independent directors are associated with increased disclosure, consistent with previous studies. Higher education of the CEO and CFO is positively related to the level of voluntary disclosure. The result also indicates that the extent of voluntary disclosures is negatively associated with a higher management ownership

scholarly journals Board leadership structure and earnings quality

2018 ◽  
Vol 3 (1) ◽  
pp. 82-111 ◽  
Author(s):  
Chinedu Francis Egbunike ◽  
Augustine N. Odum
Keyword(s):  
Earnings Quality ◽  
Main Concern ◽  
Board Structure ◽  
Executive Directors ◽  
Board Size ◽  
Ceo Duality ◽  
Content Type ◽  
Board Leadership ◽  
Leadership Structure ◽  
Board Leadership Structure

Purpose One main concern and issue affecting earnings quality is the extent to which managers manipulate earnings to mislead stakeholders about the underlying economic performance of the company or to influence contractual outcomes that depend on reported accounting numbers. This study builds on prior research and examines empirically the relationship between board leadership structure and earnings quality of manufacturing firms in Nigeria. The purpose of this paper is to specifically focus on four board structure characteristics: board size, composition, proportion of non-executive directors and CEO duality. Design/methodology/approach Data used for this investigation were collected from secondary sources, i.e. annual reports and accounts. The study used the Pooled OLS regression model to examine the effect of the board structure on earnings management for a sample of 45 non-financial listed Nigerian companies (conglomerates, consumer goods and industrial goods firms) for the years 2011 to 2016. Findings Based on the analysis, board size and board composition were positive and significant. However, proportion of non-executive directors was negative and significant; while, CEO duality was positive and statistically significant. It was consequently recommended that audit firms should review their audit business model and become more circumspect of their client, e.g. provide fraud assessment and checks for earnings quality. Boards should not just reflect size but rather the skills and expertise of individuals appointed to the board. Furtherance to this, the effectiveness of boards can be improved by committees and sub-committees allocation of duties. Originality/value Few studies have addressed this area in the country.

Board Size and Corporate Performance: An Empirical Investigation

Think India ◽  
2013 ◽  
Vol 16 (1) ◽  
pp. 1-8 ◽  
Author(s):  
Shivan Sarpal ◽  
Fulbag Singh
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Governance Mechanism ◽  
Corporate Board ◽  
Board Size ◽  
Return On Equity ◽  
Operating Profit ◽  
Leadership Structure ◽  
Corporate Governance Mechanism ◽  
And Performance

The subject of corporate governance has always been of keen interest to the researchers in the area of management and finance. This paper basically concentrates on the corporate board of directors which is an internal corporate governance mechanism. Since the effectiveness of boards counts on several characteristics such as board size, board composition, leadership structure etc, therefore considering this viewpoint, the present study is based on the analysis of board size of BSE listed companies in India. This analysis broadly embraces the relationship between board size and performance as represented by various indicators such as Operating Profit Margin, Return on Assets, Return on Equity, Earnings per Share and Tobin’s Q. Spearman’s rho correlation, One Way ANOVA and Kruskal-Wallis tests were applied to draw the inferences. Results of the study remained robust and thus concluded that both board size and firm performance were independent of each other as board size was not found to be associated with firm performance.

scholarly journals Exploring the Role of Board Characteristics on Enhancing Financial Performance of Jordanian Listed Companies

2017 ◽  
Vol 9 (7) ◽  
pp. 99
Author(s):  
Laith A Alaryan
Keyword(s):  
Financial Performance ◽  
Annual Reports ◽  
Board Composition ◽  
Board Size ◽  
Positive Role ◽  
Board Characteristics ◽  
Board Leadership ◽  
Leadership Structure ◽  
Board Leadership Structure

Corporate governance considered important topic at the local and international levels, especially after many financial crises and corporate failures and such as Enron and World Com This paper aims to explore the role of board characteristics, (i.e. board size, board composition and board leadership structure) on enhancing firms’ financial performance; this study used the non-financial companies’ annual reports for 6 years (2011-2016) to extract the needed information. The non- financial sector consisted form 167 companies, only 139 companies are included in this study due the lack of data during study’s period. The results revealed that there is a positive role for board composition, board leadership structure, board size, on enhancing financial performance, while there is no significant role for board tenure, on financial performance. These mixed results on the relationship between board characteristics and financial performance have opened up possible research area in the future. For instance, extending the sample to comprise more sectors from Amman Stock Exchange is worthwhile to further support or refute the results of this study.

Corporate governance reporting in Bangladesh

2019 ◽  
Vol 36 (1) ◽  
pp. 42-57 ◽  
Author(s):  
Abdur Rouf ◽  
M. Akhtaruddin
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Securities And Exchange Commission ◽  
Annual Reports ◽  
Stock Exchanges ◽  
Content Type ◽  
Management Accountants ◽  
Board Leadership ◽  
Leadership Structure ◽  
Board Leadership Structure

Purpose This study aims to investigate the extent and nature of corporate governance reporting (CGR) in corporate annual reports of Bangladesh. The aim of the study to test empirically the relationship between corporate governance (CG) and CGR by the listed companies in Bangladesh. The CG examined the proportion of independent directors, board leadership structure, board size, ownership structure and audit committee size. Design/methodology/approach The study is based on a sample of 86 listed non-financial companies in Dhaka stock exchanges (DSE) from the period of 2015-2017 and all the companies are selected by judgment Sampling. The study has been used as an unweighted relative disclosure index for measuring CGR. Findings The empirical results indicate that board leadership structure (BLS) is positively associated with the level of CGR. In contrast, the percentage of equity owned by the insiders to all equity of the firm is negatively associated with the level of CGR. Practical implications Findings of this study have important implications for regulatory authority, enforcement agencies such as Institute of Cost and Management Accountants of Bangladesh, Institute of Chartered Accountants of Bangladesh, Bangladesh Securities and Exchange Commission, DSE, policymakers, shareholders and others who have an interemaammast in CG. Originality/value Finding of the study will be a benchmark for policymakers and implementers in torching the avenues of improvement in raising the level of CG reporting.

scholarly journals Implementing the board of directors’ mechanism – An empirical study of the listed firms in Libya

2018 ◽  
Vol 14 (1) ◽  
pp. 22-33 ◽  
Author(s):  
Jill Atkins ◽  
Mohamed Zakari ◽  
Ismail Elshahoubi
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Boards Of Directors ◽  
Listed Companies ◽  
Board Members ◽  
Corporate Boards ◽  
Listed Firms ◽  
Stakeholder Groups ◽  
The Board Of Directors ◽  
Executive Managers

This paper aims to investigate the extent to which board of directors’ mechanism is implemented in Libyan listed companies. This includes a consideration of composition, duties and responsibilities of the board directors. This study employed a questionnaire survey to collect required data from four key stakeholder groups: Boards of Directors (BD), Executive Managers (EM), Regulators and External Auditors (RE) and Other Stakeholders (OS). The results of this study provided evidence that Libyan listed companies generally comply with the Libyan Corporate Governance Code (LCGC) requirements regarding the board composition: the findings assert that most boards have between three and eleven members, the majority of whom are non-executives and at least two or one-third of whom (whichever is greater) are independent. Moreover, the results indicate that general assemblies in Libyan listed companies are practically committed to the LCGC’s requirements regarding the appointment of board members and their length of tenure. The findings provide evidence that boards in Libyan listed companies are carrying out their duties and responsibilities in accordance with internal regulations and laws, as well as the stipulations of the LCGC (2007). Furthermore, the stakeholder groups were broadly satisfied that board members are devoting sufficient time and effort to discharge these duties and responsibilities properly. This study helps to enrich our understanding and knowledge of the current practice of corporate boards as a significant mechanism of corporate governance (CG) by being the first to address the board of directors’ mechanism in Libyan listed companies.

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