Evidence from 1992 to 2019 on the dynamics of managerial authority and CEO remuneration during company crises

We investigate the dynamics of two governance constructs, management influence over the board of directors and CEO remuneration, in enterprises in crisis from 1992 to 2019. Data reveal a strong trend of improving governance over time, which confounds the conclusion concerning the impact of distress on governance. Using a bias-corrected matching estimator to control for secular trends, we find that distressed businesses cut management board appointments and CEO compensation, deepen managerial incentive alignment, and increase CEO turnover. The performance-related component of CEO remuneration accounts for the majority of changes in CEO compensation in troubled businesses, which is consistent with the "shareholder value" perspective on CEO compensation.

Reformulation of the Function of the Board of Directors as an Organ of Persero Company in the Framework of Legal Development

This article discusses the urgency of reformulation of the function of the Board of Directors as an organ of persero company in carrying out the company's business activities to obtain profits that are further deposited to the state as non-tax state revenues. This research is normative research. The results of this study show that the transfer and guarantee actions carried out by Directors against persero's assets are one form of legally valid management as long as it is in accordance with the laws and regulations, its basic budget and the interests of persero. In order to achieve legal certainty, it is necessary to reformulate the function of the Board of Directors of Persero in the laws and regulations into the function of management, ownership and representing persero both in and in court as long as it is in accordance with the laws and/or articles of association of Persero.

PENGEMBANGAN SOP (STANDART OPERATING PROSEDURES) PELAPORAN GANGGUAN DENGAN METODE GAP ANALYSIS

PT.XYZ Pekanbaru sector was formed through the decision of the board of directors number 001.k/023/DIR/1996 dated February 7, 1996. It can be seen that one of PT.PLN's service activities is receiving reports of disturbances from service units. In reporting the disturbances received by the Operations and Maintenance Department (OPHAR), there were still several problems with disturbances from each service unit (UL), namely (ULPTG) Teluk Lembu, (PLTA) Koto Panjang, and (PLTG/MG) Duri, in reporting disturbance, the information provided is not detailed so that the information received is not in accordance with the needs of the operation and selection department, there is no schedule for sending disturbance reports, disturbance reports are past schedule when there is a disturbance and long delivery times, and there is no evaluation report and recommendation report from the unit. services as well as the absence of a chronology of disturbance validation reports. By conducting a gap analysis, we will compare the current conditions with the ideal conditions expected by the OPHAR department regarding the current SOP for reporting disturbances. From the results of the gap analysis, it can be concluded that there are 2 (two) SOP procedures that have gaps because they are not in accordance with the company's EAM standards.

The effect of ownership structure, dividend policy, composition of the board of directors on financial performance and share return

The purpose of this study is to examine and analyze the direct and indirect effects of the variable ownership structure, board composition, dividend policy, and financial performance and stock returns in the manufacturing industry on the Indonesia Stock Exchange. The population of this research is manufacturing industrial companies on the IDX since 2015 and was still active until 2019. The sample obtained is 92 issuers who continuously distribute dividends. Testing the research hypothesis, using the structural equation model (SEM) with the Partial Least Square (PLS) software approach. The results show that the ownership structure significantly affected the composition of the board of directors and dividend policy. Ownership structure has no significant effect on stock returns and financial performance. The composition of the board of directors has a significant effect on dividend policy and financial performance but has no significant effect on stock returns. Dividend policy has a significant effect on financial performance but has no significant effect on stock returns. Financial performance has no significant effect on stock returns.

What Are Companies For?

Management by missions (MBM) starts by asking a fundamental question: What is your company for? It seems reasonable to assume that an organization and its members should have a clear idea of why they exist. In practice, however, that is not always the case. Very often, there is great confusion and conflict of opinion on this point, even within the board of directors or executive committee. In this chapter, we explore this fundamental question first by discussing the role of profit in business (as a mean or an end). Then we propose a specific definition of purpose as the synthesis of the ends of a company. We then introduce the three dimensions of an effective purpose: Authenticity, Coherence and Integrity. Finally, we discuss the relationship between personal and corporate purpose.

Corporate Governance Efficiency

Since the time of the first corporations, shareholders have expected boards to manage corporate governance processes in the best way. At the same time, the era of digital technology can significantly increase the effectiveness of corporate governance procedures through automation of corporate governance procedures as business processes. The board of directors and the corporate secretary can rely on performance indicators and manage the effectiveness of corporate governance processes. This chapter discusses opportunities for improving the business processes, including automation and analytics. The author considers approaches to project management of corporate governance procedures automation and its limitations.

Künstliche Intelligenz im Rahmen unternehmerischer Entscheidungen des Vorstands der AG

The use of Artificial Intelligence (AI) in the context of business decisions of the AG's board of directors brings the company not only opportunities but also major challenges. The first question that arises is whether it is legally permissible to delegate business decisions to AI systems. It is then necessary to consider what skills and knowledge the board of directors should possess to fulfill the new AI-related tasks, and which obligations they should obey to ensure that AI systems will properly and successfully perform the tasks assigned to them. Last but not least, the board of directors must ensure the company’s IT-security when using AI.

CORPORATE GOVERNANCE THEORY AND MODEL : A CONCEPTUAL OBSERVATION

This paper outlines the conceptual, contextual and disciplinary scope of the rapidly evolving topic of corporate governance. The aim of this paper is to make a study of different theories and models of corporate governance that have been used globally by analysing strengths and weaknesses for each one. This is to determine which one is the best theory and model and if it can be adopted to different economic systems. Corporate governance theory has tended to look to this theory to guide the decisions of the board of directors in curbing excessive executive power in the hands of management. While useful for this purpose, the Agency Theory provides limited guidance on corporate governance in real life situations which are far more complex. With the blurring of the roles of the principal and the agent, the currently prevalent governance framework, based on the Agency Theory has become self limiting and ineffective. Efforts to supplement the Agency Theory with alternative theoretical frameworks such as the Stakeholder Theory and the Stewardship Theory have, at times, tended to place the board of directors in conflict with their legal obligations to work in the interests of the shareholders. A governance model based on the concept of Trusteeship, while providing fresh insights, suffers from problems in implementation and remains a goal . These alternative frameworks have, therefore, not been of much practical use to the board members in helping them to decide what constitutes the “right” decision. We need new theoretical insights that will take us towards a comprehensive theory of governance. This paper seeks to highlight the various theoretical frameworks for corporate governance.