scholarly journals Family firms, expropriation and firm value: Evidence of the role of independent directors’ tenure in Malaysia

2017 ◽  
Vol 6 (1) ◽  
pp. 42-64 ◽  
Author(s):  
Chee Yoong Liew ◽  
Ervina Alfan ◽  
Susela Devi
Keyword(s):  
Firm Value ◽  
Family Firms ◽  
Independent Directors

scholarly journals Limiting role of resource dependence: an examination of director interlocks, board meetings and family ownership

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Vidya Sukumara Panicker ◽  
Rajesh Srinivas Upadhyayula
Keyword(s):  
Board Of Directors ◽  
Resource Dependence ◽  
Family Firms ◽  
Emerging Market ◽  
Resource Provisioning ◽  
Independent Directors ◽  
Family Ownership ◽  
Independent Director ◽  
Content Type

PurposeThis paper attempts to examine the activity and involvement of board of directors in internationalization activities of firms in emerging markets, by evaluating the resource provisioning roles of interlocks provided by board of directors, and the frequency of board meetings. We demonstrate that the effectiveness of board involvement is contingent upon the levels of family ownership in firms since family ownership could impact the firm’s ability to utilize the presence of different types of board members.Design/methodology/approachThe authors test our hypotheses on a sample of listed Indian companies, extracted from the Prowess database published by the Centre for Monitoring Indian Economy (CMIE), a database of the financial performance of Indian companies. On a panel of 3,133 firm years of 605 unique Indian firms with foreign investments, over a time period of 2006–2017, the authors apply different estimation techniques.FindingsThe results demonstrate that both board meeting frequency and director interlocks are instrumental in supporting internationalization activities in emerging market firms. However, family ownership moderates the role of insider and independent interlocks on internationalization investments in different ways; the authors find that interlocks provided by independent directors support internationalization activities in family firms, whereas those provided by insider directors do not. Further, the study also finds that board meetings are less effective in internationalization of family firms.Practical implicationsThe authors conclude that family firms aiming at international diversification require to develop more connected and networked independent directors to enable internationalization in firms. While independent director interlocks enhance the international investments, it is also useful to know that board meetings are ineffective in utilizing the resources in family firms. This points to the possibility that family firms should device mechanisms to integrate family meetings with board meetings so that they can utilize the within-family processes to aid in their internationalization decisions.Originality/valueThe study contributes to resource dependence theory by understanding its limiting role in family firms. Theoretically, it helps delineate the limiting resource provision role of the insider directors vis-à-vis independent directors. The authors argue that the resource provision role of insider director interlocks does not effectively help in internationalization in comparison to independent director interlocks in family-dominated firms. Consequently, the study shows the limiting role of resource provision and utilization by family-owned firms in comparison to non-family-owned firms.

scholarly journals PENGARUH PERUSAHAAN KELUARGA DAN PERAN KOMISARIS INDEPENDEN TERHADAP PRAKTIK MANAJEMEN LABA DI INDONESIA

2017 ◽  
Vol 11 (1) ◽  
Author(s):  
Go Meliana Indah Lestari ◽  
Senny Harindahyani
Keyword(s):  
Earnings Management ◽  
Family Firms ◽  
Stock Exchange ◽  
Independent Directors ◽  
Multiple Linear Regressions ◽  
Banking And Finance ◽  
Linear Regressions ◽  
Problem Data

Family firms don’t have effective oversight, therefore they tend to do earnings management higher compare than others. This study aims to prove whether this phenomenon true or not and whether the role of independent commissioners have been effectively overcome the problem. Data used in this research covers all firms listed in Indonesian Stock Exchange for the period of 2012 to 2014, except for banking and finance sector. The study is conducted using multiple linear regressions. The result shows that there is no significant different between family firms and non-family firms to manage earnings, and the role of independent directors can’t decrease the earnings management in family firms.

scholarly journals Family Firms, Directors’ Remuneration, Expropriation and Firm Value: Evidence of the Role of Independent Directors’ Tenure within the Remuneration Committee in Malaysia

2018 ◽  
Vol 2 (2) ◽  
pp. 5-8
Author(s):  
Chee Yoong Liew ◽  
Young Kyung Ko ◽  
Bee Lian Song ◽  
Saraniah Murthy
Keyword(s):  
Firm Performance ◽  
Firm Value ◽  
Family Firms ◽  
Emerging Market ◽  
Negative Relationship ◽  
Moderating Effect ◽  
Policy Implications ◽  
Problem Type ◽  
Significant Negative Relationship

This manuscript is about the influence of directors’ remuneration on firm performance and whether independent directors’ tenure in the remuneration committee moderates this relationship. The results show that within family corporations in industries which are not exclusive, non-executive directors’ remuneration have a significant negative relationship with firm performance. Family firms have a stronger significant negative relationship than non-family firms. Within family firms in non-exclusive industries, there is also a positive moderating effect of independent directors’ tenure within the remuneration committee on the influence of non-executive directors’ remuneration on firm performance. In this case, corporations owned by families have a stronger positive moderating effect compared to non-family firms. Our study has significant policy implications with respect to how the Securities Commission (SC) should design and implement proper rules and regulations to govern remuneration of non-executive directors’ remuneration as well as how the SC should govern the tenure of the independent directors within the remuneration committee in East Asian emerging market firms where Agency Problem Type II is prevalent and ownership is highly concentrated

scholarly journals Does Gender Heterogeneity Matters: The Moderating Role of Women Directors' Independence in the Indian Corporate Sector

2021 ◽  
Vol 14 (28) ◽  
pp. 87-105
Author(s):  
Pradeep KAUR ◽  
◽  
Poonam MAHAJAN
Keyword(s):  
Firm Value ◽  
Fixed Effects ◽  
Negative Impact ◽  
Generalized Method Of Moments ◽  
Independent Directors ◽  
Women Directors ◽  
Role Of Women ◽  
The Relationship ◽  
Moderating Role

This study aims to examine the moderating role of the independent status of women directors on the relationship between gender heterogeneity and firm value. The empirical analysis is performed on the panel data of BSE 100 companies for the period of 10 years from the year 2009 to 2018. Generalized Method of Moments is employed along with Fixed Effects Model while controlling for firm and board-specific variables to examine the relationship between gender heterogeneity and firm value. Moderation impact on this relationship is also analyzed empirically as well as graphically. Results show a negative impact of board gender heterogeneity on the value of a firm. Also, there is a negative moderation effect of women independent directors on the relationship between gender heterogeneity and firm value. Empirical findings of the present study contribute to the current discourse of gender heterogeneity and depict the Indian scenario of corporate boards in this context. This is the first study examining the moderating role of women independent directors on the relationship between board gender heterogeneity and the value of a firm in the Indian climate.

The role of independent directors at family firms in relation to corporate social responsibility disclosures

2015 ◽  
Vol 24 (5) ◽  
pp. 890-901 ◽  
Author(s):  
Beatriz Cuadrado-Ballesteros ◽  
Lázaro Rodríguez-Ariza ◽  
Isabel-María García-Sánchez
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Family Firms ◽  
Independent Directors ◽  
Corporate Social

Peran kepemilikan institusional, perencanaan pajak dan dewan komisaris asing terhadap nilai perusahaan

2019 ◽  
Vol 8 (2) ◽  
Author(s):  
Anita Ade Rahma ◽  
Lisa Nabawi ◽  
Ronni Andri Wijaya
Keyword(s):  
Significant Influence ◽  
Firm Value ◽  
Stock Exchange ◽  
Investment Decisions ◽  
Total Sample ◽  
Tax Planning ◽  
Purposive Sampling ◽  
Institutional Leadership ◽  
Company Value

The purpose of this study is to analyze the role of institutional leadership, tax planning and foreign board of commissioners on firm value. The population in this study were 615 companies listed on the Indonesia Stock Exchange in 2015-2017. The sample was chosen using purposive sampling to get a total sample of 325 companies with a total of 975 observations of company data. The results of this study indicate that institutional leadership and tax planning have no role in increasing company value. While the foreign board of commissioners showed a significant influence on the value of the company. This proves that there is a need for diversity in the structure of the board that can trigger an increase in the value of the company. In addition, the presence of a foreign board is needed for the progress of the companyKeywords: Investment decisions; funding decisions; dividend policy; company value

Making gender visible in family business: past and present

2012 ◽  
Vol 13 (1) ◽  
Author(s):  
Paloma Fernández Pérez ◽  
Eleanor Hamilton
Keyword(s):  
Family Business ◽  
Family Firms ◽  
Business Leadership ◽  
Legal Rules ◽  
Developed Economies ◽  
The Family ◽  
Interdisciplinary Synthesis ◽  
Complex Forms ◽  
Rules Of The Game

This  study  contributes  to  developing  our understanding of gender and family business. It draws on studies from the business history and management literatures and provides an interdisciplinary synthesis. It illuminates the role of women and their participation in the entrepreneurial practices of the family and the business. Leadership is introduced as a concept to examine the roles of women and men in family firms, arguing that concepts used  by  historians or economists like ownership and management have served to make women ‘invisible’, at least in western developed economies in which owners and managers have been historically due to legal rules  of  the  game  men,  and  minoritarily women. Finally, it explores gender relations and  the  notion  that  leadership  in  family business  may  take  complex  forms  crafte within constantly changing relationships.

Sign in / Sign up

Export Citation Format

Share Document