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Full-Text Articles in Business
Too Many Peas In A Pod? How Overlaps In Directors’ Local And Global Status Characteristics Influence Board Turnover In Newly Public Firms, Abhijith G. Acharya, Timothy G. Pollock
Too Many Peas In A Pod? How Overlaps In Directors’ Local And Global Status Characteristics Influence Board Turnover In Newly Public Firms, Abhijith G. Acharya, Timothy G. Pollock
Research Collection Lee Kong Chian School Of Business
Drawing on status characteristics theory, we explore how boards’ social structures influence board turnover. We theorize that (1) understanding directors’ relative standing and spheres of influence in the local status hierarchy creates deference structures that reduce conflict and enhance stability, thereby reducing board turnover; and (2) shared performance expectations and attraction based on homophily in the global status hierarchy can also reduce conflict and enhance stability, and thus serve as another means of reducing board turnover. Using data on the five years following the initial public offerings (IPOs) of 218 firms that went public between 2001 and 2005, we find …
Is Corporate Social Responsibility An Agency Problem?, Hao Liang, Luc Renneboog
Is Corporate Social Responsibility An Agency Problem?, Hao Liang, Luc Renneboog
Research Collection Lee Kong Chian School Of Business
This chapter examines whether CSR investments occur mostly in firms with severe agency problems, which suggests that CSR is an agency issue. We demonstrate that this is not the case: CSR investments and performance are higher when dividends are high, leverage is high, cash flows and cash holdings are low, and when there is a high managerial pay-for-performance sensitivity. All these variables combined represent managerial discipline in terms of corporate investing. We also document that better legal protection of shareholder rights is positively related to CSR performance. This implies that when shareholders are more powerful relative to the management, the …
Governance And Post-Repurchase Performance, Gary Caton, Jeremy Goh, Yen Teik Lee, Scott Linn
Governance And Post-Repurchase Performance, Gary Caton, Jeremy Goh, Yen Teik Lee, Scott Linn
Research Collection Lee Kong Chian School Of Business
Payout policies based on share repurchase programs provide greater flexibility than do those based on cash dividends. We develop and test an empirical model in which strongly governed companies outperform weakly governed companies after announcing share repurchase programs. Our findings include positive associations between strong governance and both post-announcement adjusted operating performance and abnormal stock returns. The results are robust to sample selection bias, different sample criteria, governance measurement, and various control variables. In addition, governance strength is associated with larger post-announcement changes in CEO incentive compensation and merger and acquisition activity, both of which we argue are consistent with …
Governance Matter: Morningstar Stewardship Grades And Mutual Fund Performance, Jerry X. Cao, Aurobindo Ghosh, Jeremy Goh, Wee Seng Ng
Governance Matter: Morningstar Stewardship Grades And Mutual Fund Performance, Jerry X. Cao, Aurobindo Ghosh, Jeremy Goh, Wee Seng Ng
Research Collection Lee Kong Chian School Of Business
Mutual fund investors have the arduous task of disentangling luck from ability of mutual fund managers’ performance. In this paper we investigate the role of mutual fund corporate governance (measured by Morningstar Stewardship grade) in mutual fund performance. We propose an objective data-driven corporate governance score based on principal components of Morningstar Stewardship Grades. Furthermore, we establish corporate governance scores have Granger Causality on long-term risk-adjusted returns. The findings suggest that corporate governance grades of mutual funds carry information content beyond the usual star rating measures for predicting long-term mutual fund performance and provide an effective tool for selecting funds.
Communicating Corporate Social Responsibility In Singapore: Towards More Effective Media Relations, A. Pang, Angela Ka Ying Mak, Joanne M. H. Lee
Communicating Corporate Social Responsibility In Singapore: Towards More Effective Media Relations, A. Pang, Angela Ka Ying Mak, Joanne M. H. Lee
Research Collection Lee Kong Chian School Of Business
Organizations face several impediments when it comes to communicating their corporate social responsibility (CSR) engagement to the public via the media. This paper examines practitioners’ and journalists’ perception of CSR communication using the agenda-building model (Qiu Q, Cameron GT, Communicating health disparities: building a supportive media agenda. VDM Verlag, Saarbruecken, 2008) by examining news coverage of how practitioners and journalists understand CSR, what types of CSR stories get covered in the media, and how are CSR stories portrayed in the media. News coverage of Singapore’s mainstream publications, The Straits Times, The Business Times, and The New Paper, were analyzed. The …