scholarly journals The Impact of Shariah Board on the Performance of Islamic Banks and the Relevance of Shariah Committee (BNM) New Ruling on the Restructuring of Islamic Financing Facility during the Pandemic Crisis

2021 ◽  
Vol 8 (Special Issue) ◽  
pp. 423-443
Author(s):  
Razali Haron ◽  
Nur Ermiedza Radzali ◽  
Naji Mansour Nomran
Keyword(s):  
Panel Data ◽  
Agency Theory ◽  
Resource Dependence ◽  
Social Performance ◽  
Resource Dependence Theory ◽  
Stewardship Theory ◽  
Islamic Banks ◽  
Performance Measurements ◽  
Dependence Theory ◽  
The Impact

This study examines the impact of Shariah Board (SB) characteristics on the financial and social performance of Islamic banks (IBs) from the perspectives of Agency Theory (AT), Stewardship Theory (ST) and the Resource Dependence Theory (RDT). To meet its objective, GMM is employed on a panel data of 15 IBs in Malaysia from 2010 to 2018 covering the pre and post implementation of IFSA 2013 with three performance measurements; ROA and ROE (financial performance) and Zakat over Equity (social performance). SB education, SB reputation, and SB expertise are positively related to IBs performance; while SB remuneration and SB cross membership are negatively related to performance. SB size is found to be insignificant. The study therefore concludes SB is relevant to the performance of IBs. The study also discusses the response of SB at the central bank (SAC-BNM) via its new ruling on financing restructuring in alleviating the hardship of IBs’ customers during the pandemic crisis.

Do board interlocks support monitoring effectiveness?

2019 ◽  
Vol 42 (11) ◽  
pp. 1278-1296 ◽  
Author(s):  
Franziska Handschumacher ◽  
Maximilian Behrmann ◽  
Willi Ceschinski ◽  
Remmer Sassen
Keyword(s):  
Panel Data ◽  
Resource Dependence ◽  
Pay For Performance ◽  
Resource Dependence Theory ◽  
Risk Governance ◽  
Data Set ◽  
Content Type ◽  
Board Interlocks ◽  
Performance Sensitivity ◽  
The Impact

Purpose This paper aims to investigate the relationship between board interlocks and monitoring effectiveness for listed German companies in a context of risk governance. While agency-theory and resource-dependence-theory suggest a positive association between board interlocks and monitoring effectiveness, reasons such as limited temporal resources of busy board members may suggest a negative association. Design/methodology/approach By using panel data regression, the authors examined the association between board interlocks and monitoring effectiveness, which was approximated by excessive management compensation, pay-for-performance-sensitivity and CEO turnover-performance-sensitivity. The data set comprises 3,998 directorships for 132 listed German companies covering the period 2015-2017. Findings The authors find that board interlocks are associated with not only a more excessive management pay and less performance-sensitive turnover but also a higher pay-for-performance-sensitivity. Originality/value The study examines the impact of multiple directorships based on a German panel data set that includes both multiple appointments of members to national supervisory boards and all other appointments to national and international executive and supervisory bodies. The authors compile three measures to operationalize monitoring effectiveness.

scholarly journals Does Board Size Really Matter? Evidence from Australia

2008 ◽  
Vol 10 (3) ◽  
pp. 331 ◽  
Author(s):  
Lukas Y. Setia-Atmaja
Keyword(s):  
Panel Data ◽  
Agency Theory ◽  
Random Effects ◽  
Inverse Relationship ◽  
Positive Relationship ◽  
Resource Dependence ◽  
Tobin’S Q ◽  
Board Size ◽  
Tobin's Q ◽  
The Impact

This study examines the impact of board size of Australian firms on Tobin’s Q. Agency theory suggests that there is an inverse relationship between board size and Tobin’s Q (Yermack 1996; Eisenberg et al. 1998). The resource dependence argument, however, hypothesizes that larger boards can lead to higher performance as the CEO’s need for advice is a function of the complexity of the organization (Pfeffer 1972; Klein 1998). Analyzing a panel data of 1,530 firm-year observations using random effects technique, this study finds a positive relationship between board size and Tobin’s Q. The random effects regression results also reveal that the positive relationship between board size and Tobin’s Q is driven by firm size as this positive relationship is only found in larger firm sample but not in the smaller firm sample. The overall results support the resource dependence argument.

scholarly journals The Effect of Audit Committee Characteristics on the Profitability: Panel Data Evidence

2019 ◽  
Vol 11 (4) ◽  
pp. 104
Author(s):  
Yazan Oroud
Keyword(s):  
Panel Data ◽  
Agency Theory ◽  
Audit Committee ◽  
Resource Dependence ◽  
Stock Exchange ◽  
Fixed Effect Model ◽  
Resource Dependence Theory ◽  
Annual Reports ◽  
Industrial Firms ◽  
Industrial Companies

This study attempts to investigat the relationship between audit committee characteristics (size, independence, meeting and financial expertise) and the profitability of industrial companies listed on the Amman Stock Exchange (ASE) for the years 2013 to 2017. The model of this study is theoretically founded on both the agency theory and the resource dependence theory. To examine the developed model, the data were gathered from the annual reports of 51 listed industrial firms. To analyse the data, this study utilized the panel data methodology on 51companies with 255 observations. Moreover, this study used company size and leverage as control variables. Based on the panel data results, the fixed-effect model was used to examine the effect of the experimental variables on profitability, measured by return on investment (ROI) and return on equity (ROE). The results show that the audit committee characteristics have a significant effect on profitability of the industrial companies listed on the ASE. This study evinces that the RD theory is more significant compared to the agency theory when describing CG practices in Jordan.

The Impact of Technological, Governance, and Political Capabilities on Firms' Performances Under Economic Turbulence

2019 ◽  
pp. 337-354
Author(s):  
Beste Altınçubuk
Keyword(s):  
Competitive Advantage ◽  
Transaction Cost ◽  
Resource Dependence ◽  
Resource Dependence Theory ◽  
Transaction Cost Theory ◽  
Dependence Theory ◽  
Political Capabilities ◽  
The Impact ◽  
Recessionary Periods ◽  
Resource Based Theory

Although there have been various studies exploring the effects of capabilities on firms' performances, it is not clear whether particular capabilities would create more competitive advantage for firms under recessionary periods compared to expansionary periods. The main focus in this chapter is to examine the impacts of technological, governance, and political capabilities on firms' performances under recessionary and expansionary periods. The aim of this chapter is to explore these effects by drawing upon resource-based theory, transaction cost theory, and resource dependence theory.

scholarly journals Corporate Philanthropy and Innovation Performance

2018 ◽  
Vol 13 (4) ◽  
pp. 173
Author(s):  
Shaoyan Jiang ◽  
Jingwen Mi ◽  
Xiaohui Tao ◽  
Wanwan Hu
Keyword(s):  
Information Disclosure ◽  
Theoretical Basis ◽  
Quantitative Data ◽  
Resource Dependence ◽  
Corporate Philanthropy ◽  
Resource Dependence Theory ◽  
Innovation Performance ◽  
Quantitative Data Analysis ◽  
Dependence Theory ◽  
The Impact

Corporate Philanthropy and innovation performance are the focuses of enterprise research in recent years. Based on resource dependence theory and information disclosure theory, the paper explores the impact of philanthropic donations on innovation performance. Through the quantitative data analysis of 319 enterprises in China, the results show that: (1) There is an obviously positive correlation between philanthropic donations and innovation performance, which will be affected by the scale of enterprises. (2) The disclosure of philanthropic information will weaken the promotion effect of philanthropic donation on innovation performance. The conclusion of the study made a useful extension of the existing philanthropic donation literature and provided a theoretical basis for the philanthropic practice of the enterprise.

Does Board Size Matter for Taiwanese Hotel Performance? Agency Theory or Resource Dependence Theory

2017 ◽  
Vol 59 (4) ◽  
pp. 317-324 ◽  
Author(s):  
Jie Wang ◽  
Ming-Hsiang Chen ◽  
Chin-Yi Fang ◽  
Li Tian
Keyword(s):  
Agency Theory ◽  
Resource Dependence ◽  
Positive Impact ◽  
Hotel Industry ◽  
Resource Dependence Theory ◽  
Board Size ◽  
Return On Equity ◽  
Hotel Performance ◽  
Dependence Theory ◽  
Size Matter

Due to the fast growing hotel industry in Taiwan, recent hospitality studies has paid attention to how various factors affect the Taiwanese hotel performance and offered interesting and valuable findings. To expand the financial literature of the Taiwanese hotel industry and the hospitality literature as a whole, this article is the first hospitality study to investigate how board size affects firm performance of publicly traded hotels in Taiwan. Panel regression test results reveal an interesting finding. Specifically, there is an inverted U-shaped relationship between board size and hotel performance in terms of return on assets, return on equity, and Tobin’s Q with an optimal value of board size equal to 10. This indicates that while board size up to 10 has a positive impact on hotel performance (supporting the resource dependence theory), board size can deteriorate hotel performance when it is larger than 10 (supporting the agency theory).

Subsidiary power: Loaned or owned? The lenses of agency theory and resource dependence theory

2019 ◽  
Vol 9 (4) ◽  
pp. 491-501 ◽  
Author(s):  
Alvaro Cuervo‐Cazurra ◽  
Ram Mudambi ◽  
Torben Pedersen
Keyword(s):  
Agency Theory ◽  
Resource Dependence ◽  
Resource Dependence Theory ◽  
Dependence Theory

scholarly journals Moral Resources, Political Capital and the Development of Environmental Protection Organizations in China: A Case Study of City J

2015 ◽  
Vol 6 (3) ◽  
pp. 395-423
Author(s):  
Ying Xu ◽  
Evaon C. Wong-Kim
Keyword(s):  
Environmental Protection ◽  
Resource Dependence ◽  
Resource Dependence Theory ◽  
Political Capital ◽  
Chinese Government ◽  
Dependence Theory ◽  
The Government ◽  
The Impact ◽  
To Receive

AbstractThis article combines the moral resources and political capital perspective with the theoretical arguments of guanxi and resource dependence theory to explore the strengths and weaknesses of both the Chinese government-organized and the grassroots environmental protection organizations (ENPOs). Qualitative methods were applied in this study, and the impact of these two entities on environmental protection was also analyzed. The findings mainly include: First, the ascribed political capital can ensure good guanxi with governmental departments, and thus improve an NPO’s opportunities to receive resources. Second, although the ascribed political capital enables government-organized ENPOs to run smoothly, their transparency and management need to be improved. Third, though grassroots ENPOs have little of political capital, they possess advantages in terms of the self-chosen moral resource, which can help them become relatively independent from the government and assume responsibility for monitoring the environment. The article concludes with a discussion of implications for policy highlighted by the findings.

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