Business Commons^™

Performance Of Gender Diversity On Board Of Directors: The Case Of Indonesia, Juniarti, Ferry Jie

Research outputs 2022 to 2026

This study further explores women’s role in top management in Indonesia, where men still dominate that position. This study underlines the role of women’s boards of commissioners in producing better financial performance in the specific sectors, manufacturing and service sectors, where the power of women to lead these sectors is more optimal. The sample is selected from the Indonesia Stock Exchange for the period 2009–2018. The final sample is 780 observations. This study applies panel data, which is more robust when controlling heterogeneity. Data panel regression is applied to analyze data. This study finds that gender diversity harms market-based performance, …

Toward A Synthesis Of The Board-Strategy Relationship: A Literature Review And Future Research Agenda, Pieter-Jan Bezemer, Amedeo Pugliese, Gavin Nicholson, Alessandro Zattoni

Research outputs 2022 to 2026

Research Question/Issue

The strategy role of the board of directors is a contentious topic in both theory and practice and the debate on what boards should or should not do around firm strategy has intensified with changes in global corporate governance. Boards face interventionist regulatory developments, calls for changes in their composition, growing owner engagement, and societal questioning on the corporation's very purpose. With this review, we aim to assess how the research agenda in this area has evolved with these developments.

Research Findings/Results

Our analysis of 152 articles published in 45 high-quality journals between 2008 and 2020 reveals that …

Yung Kee: A Roast Goose Chase, Singapore Management University

Perspectives@SMU

How a Hong Kong culinary landmark emerged stronger following a bitter family feud over succession disputes

Corporate Social Responsibility And Financial Performance: Does Board Diversity Matter?, Ozgur Ozdemir, Murat Kizildag, Tarik Dogru, Ilhan Demirer

Journal of Global Business Insights

In this study, the moderating effect of board diversity on the complex relationship between corporate social responsibility (CSR) performance and financial performance is examined. The resource-based view of the firm and stakeholder theory are used as the theoretical foundation of the study. The hypotheses of the study are tested via fixed-effects regression using data for a sample of 1,234 firms and 5,102 firm-year observations for the period 2009–2013. The study finds evidence that CSR performance and financial performance are positively related, and the magnitude of this relationship is contingent on the level of board diversity. As corporate boardrooms become more …

The Old Boys Club In New Zealand Listed Companies, Chen Chen, David K. Ding, William R. Wilson

Research Collection Lee Kong Chian School Of Business

The board of directors plays an important role in implementing corporate governance in the firm, as directors have a fiduciary duty to the firm’s shareholders. The effectiveness of directors is a key determinant of corporate value and they need to bring a range of skills and experience to the boardroom. This skill and experience cannot be developed solely within the firm, and most boards incorporate non-executive directors who are or have been directors of other firms. Current research on the benefits of interlocking directorships is mixed between the claim that they bring outside feedback to the table and open decision …

Independent Directors' Dissensions And Firm Value, Wonseok Choi, Monika K. Rabarison, Bin Wang

Finance Faculty Research and Publications

Using a novel dataset of independent directors’ voting activities on items proposed by managers of Korean firms, we investigate whether independent directors’ dissension in board meetings plays an effective role in enhancing firm value through improved corporate governance. Our results indicate that dissension improves firm value. This finding is robust to different measures of firm value and alternative model specifications including subsample, propensity score matching, and instrumental variable analyses. Overall, we contribute to the understanding of the relation between corporate governance and firm value. Specifically, we provide new evidence that the monitoring by independent directors enhances firm value.

The Financial Impact Of Gender Diversity On Corporate Boards, Elizabeth Hamilton

Undergraduate Theses

The purpose of this study is to investigate the relationship between gender diversity and firm financial performance, using a data set of 50 S&P 500 companies during 2015-2019. Gender diversity was measured through the percentage of women on the board and whether the board has a “critical mass” (of at least three women). In the results of the regression analyses, some significant relationships between variables were found. The regression between ROA and the percentage of women indicated a positive, significant relationship for ROA to the percentage of women. For the regression between ROA and the critical mass variable, no significant …

Ceo Gender-Based Termination Concerns: Evidence From Initial Severance Agreements, Felice B. Klein, Pierre Chaigneau, Cynthia E. Devers

Management Faculty Publications and Presentations

We theorize that female candidates considering CEO roles will perceive greater termination vulnerability in such roles than their male counterparts. We further theorize that indicators of recent organizational distress will exacerbate female CEO candidates’ perceptions of termination vulnerability, while the presence of female leaders will mitigate these concerns. To test our arguments, we examine the initial values of newly appointed female and male CEOs’ severance agreements from 2007 to 2014. Results support our arguments and begin to shed light on the factors that influence female executives’ concerns about CEO roles and ultimately firms’ ability to appoint female CEOs.

Too Unsafe To Monitor? How Board-Ceo Cognitive Conflict And Chair Leadership Shape Outside Director Monitoring, Dennis B. Veltrop, Pieter-Jan Bezemer, Gavin Nicholson, Amedeo Pugliese

Research outputs 2014 to 2021

Research into boards of directors has provided mixed support for the view that outside directors' independence or leadership by an independent chair improves monitoring. In this study, we use a micro-level approach to provide a better understanding of why outside directors have difficulty in monitoring the CEO. We highlight that an important reason for this lies in the boardroom dynamics associated with (a) outside directors' cognitive conflict with the CEO and (b) the chair's leadership of the board. Our inductive analyses of video observations of board meetings in five Australian corporations revealed the importance of chair participative leadership during disagreement …

Social And Human Capital Contributions Of Diverse Board Members, Sharifa Ife Batts

Theses and Dissertations

While most firms serve a diverse population, many have no minorities or women serving as Members on their board. Boards are disadvantaged when their composition fails to align with Their employee population or the stakeholder groups they serve; they are neglecting the Contributions of women and minorities as their voices are unheard. The purpose of this multiple Case comparison study builds on current boardroom diversity and board effectiveness research by Exploring how the unique human and social capital contributions of women and minority board Members increase the boards’ capabilities and impact board governance. I qualitatively examined Six boards of varied …

Board Of Director Composition: An Examination Of How Director Age And Board Innovation Committees Impact Corporate Social And Financial Performance, Sami Ghaddar

2021

This dissertation explores how director age affects a firm’s social domain, and how board-level oversight of firms’ innovation activities affects financial performance. Specifically, the dissertation points to board configurations that can potentially improve social and financial performance. The first chapter reviews the literature by examining two research streams linking board composition to corporate social performance (CSP) and innovation. The chapter presents the theoretical and empirical underpinnings of these two streams. It details the descriptive and thematic findings and offers an understanding of the different contexts in which board composition relates to both CSP and innovation. This chapter also discusses inconsistencies …

An Attention-Based View Of Strategic Human Resource Management, Soo-Hoon Lee

Management Faculty Publications

In spite of the designation, research in strategic human resource management (SHRM) has largely focused on tactical rather than strategic issues. These studies have attempted to explain whether firm performance is associated with “best-practice” or “best-fit” human resource management (HRM) practices. The focus on internally consistent (horizontal fit) HRM practices is better characterized as tactical implementation than as strategic formulation. In the latter, HRM leads rather than follows the firm’s long-term responses to shifts in the firm’s competitive and market environment. In this paper, I propose an attention-based view of the firm to reframe SHRM research and policy to support …

Renegotiation Of Joint Venture Contracts: The Influence Of Boards Of Directors And Prior Ties As Alternative Governance Mechanisms, Valérie Duplat, Elko Klijn, Jeffrey Reuer, Henri Dekker

Management Faculty Publications

Research on alliance governance has pointed out that joint ventures (JVs) are particularly complex forms of collaboration. Partnering firms therefore often face difficulties in anticipating contingencies and collaborative behaviors at the contract negotiation stage. When initial JV contracts are incomplete, renegotiation represents a key strategic opportunity for enhancing contractual safeguards or coordination guidelines over the course of the joint venture. Costs and risks entailed by renegotiating JV arrangements at a later stage are far from trivial, however. Existing research on alliances suggests that practitioners have alternative relational and formal governance solutions at their disposal for handling possible inefficiencies caused by …

Board Demography And Divestitures: The Impact Of Gender And Racial Diversity On Divestiture Rate And Divestiture Returns, Kalin Kolev, Gerry Mcnamara

Management Faculty Research and Publications

Drawing on resource dependence theory and group diversity research, this paper examines how board gender and racial diversity impact corporate divestitures. We argue that due to the diverse experiences, knowledge, and perspectives that female and racial minority directors bring to the boardroom, it is more difficult and time-consuming for the board to reach a consensus and pursue a common course of action. Consistent with this argument, our results indicate that board gender and racial diversity lead to longer divestiture completion times and a lower divestiture rate. Additionally, we argue that due to their cognitive heterogeneity, diverse boards likely exchange a …

Increasing Gender Diversity On Corporate Boards: Voices Of Male And Female Directors In The United States, Vasilia Vasiliou

2020

An emerging literature highlights the lack of gender diversity on corporate boards, its implications, and the need for more scholarship and theoretical development on board diversity. According to this literature, to better understand the reasons behind the persistent underrepresentation of women on boards (WOB), of particular importance is the need to access boards directly for data, as opposed to focusing solely on human capital, firm, and board characteristics. This dissertation research directly accesses both male and female board directors using a qualitative interview approach and employs grounded theory techniques to investigate (a) how and why corporate boards appoint members, and …

Crashing The Boards: A Comparative Analysis Of The Boxing Out Of Women On Boards In The United States And Canada, Diana C. Nicholls Mutter

The Journal of Business, Entrepreneurship & the Law

This paper will first provide a critical, comparative look at the Canadian and the federal American responses to the under-representation of women on boards of large, publicly traded corporations. There will be a discussion about the competing conceptions which emerge in addressing the regulation of women on boards in the United States and Canada and why each jurisdiction implemented its policy when it did. The conceptions arising out of questions about under-representation of women on boards tend to fall within two categories: business case rationales and normative rationales. Given the competing conceptions of this issue, this paper will attempt to …

Using A Decision-Making Placemat To Inform Strategy, Christine Baker Mitton, Adrienne Mundorf, Kris Putnam-Walkerly, Susanna Krey

The Foundation Review

Strategic planning in philanthropy allows board and staff to articulate and commit to their priorities and set a plan for how to accomplish a foundation’s goals. To do so requires the processing and sharing of complex internal and external information amid the competing priorities and commitments of multiple stakeholders.

This article explores the development and use of a decision-making placemat tool to inform the strategic shift of the Sisters of Charity Foundation of Cleveland's place-based program area. The foundation has focused its work on housing, health, education, and disparities in outcomes for Cleveland, Ohio, residents who are living in poverty, …

“Can Entrepreneurs Sell Their Firms And Still Own Them?”: The Adoption Of Dual-Class Structures And Their Effects On Ipo Performance, Nitin Kumar Singh

Management Dissertations

Dual-class Structures enable entrepreneurs to separate voting rights and cash-flow rights in arbitrary proportions to exercise control of the firm. Dual-class structures allow entrepreneurs to retain the benefits of being private and reap the benefits of going public. This dissertation identifies the governance, firm-specific, and strategic antecedents of firms that adopt dual-class structures and determines its effect on IPO performance. This study finds that firms that adopt fewer governance mechanisms, have a greater number of insiders, are younger, have a higher level of sales, pursue risky strategies (such as internationalization, acquisition, and innovation) are more likely to adopt dual-class structures. …

The Transparency And Disclosure Of Corporate Governance System In The Regard Of Investors, O. K. Iminov, A. B. Gafurov

Central Asian Problems of Modern Science and Education

The corporate is a form of business that attracts capital and expands it. The shareholders of corporations as investors fund their money in order to get profit from their ownerships. However, there is a relationship that lies on between shareholders and managers. As we know, the shareholders receive income in the form of dividends from the managers can gain profit over the shareholders‘ ownership. As we know, shareholders receive income in the form of dividends from the profits of companies, while managers receive income from the invested works in the company. It turns out a disagreement between them and the …

Building The Board: Result Of The 2019 Hr@Moore Survey Of Chief Human Resource Officers, Patrick M. Wright, Donald J. Schepker, Anthony J. Nyberg, Kenneth R. Carrig, Spenser Essman

Reports

The 2019 HR@Moore Survey of Chief HR Officers examined a number of aspects of the Board of Directors (BOD). This report describes the results of this survey. We find that 64% of the companies surveyed have an independent Chair of the board with the other 36% having the CEO also hold the Chair title. CHROs do not evaluate boards as being particularly effective regarding the major tasks entailed in CEO succession. We found that responsibility for CEO succession is most often housed with the board chair/ lead director (rather than a committee), both as an ongoing process and as the …

A New Standard For Governance: Reflections On Worker Representation In The United States, Julian Constain

Fordham Journal of Corporate & Financial Law

The contemporary state of corporate law in the United States is one that is skewed toward the archaic principle of shareholder primacy. This narrow conception of corporate purpose has resulted in governance mechanisms that tend to overlook the many stakeholders that are affected by, and, in turn, affect the bottom line of modern corporations. In the wake of the recently proposed Accountable Capitalism Act, this Note investigates the viability of adopting a system of mandated worker board representation—codetermination—in the United States. The Note employs a comparative analysis of the German and Swedish experiences with codetermination, and then evaluates the policy, …

How Does Interpersonal Justice Affect Outside Directors’ Governance Behavior? A Cross-Cultural Comparison, Esther B. Del Brio, Rosa M. Hernandez-Maestro, Toru Yoshikawa

Research Collection Lee Kong Chian School of Business

We examine the impact of interpersonal justice among outside directors on the board and between a director and the CEO regarding the director’s monitoring and resource provision behaviors in different cultural contexts. We argue that directors from individualistic countries are more influenced by CEO interpersonal justice while directors from collectivistic countries are more affected by the board interpersonal justice. Our main effect results indicate that interpersonal justice with board members is positively related to both monitoring and resource provision by a director, while CEO interpersonal justice is related only to resource provision. Our results also show different effects on the …

Defying The Tone At The Top: An Analysis On The Effects Of Board Characteristics On The Level Of Tax Avoidance Across Philippine Publicly Listed Firms, John Ryan G. Ledesma, Chester T. Herrera, Sharlene Camille A. Li, Angelo A. Unite, Ailyn A. Shi, Michael J. Sullivan

Angelo King Institute for Economic and Business Studies (AKI)

Over the years, the growing culture of tax avoidance among multinational companies around the world has shed light on the importance of improving corporate governance mechanisms. In the Philippines, poor tax collection due to tax leakages has contributed to chronic fiscal deficits in the country. The literature argues that good corporate governance mechanisms (e.g., the structure of the board of directors) play a significant role in ensuring that the management acts in the best interest of the firm and shareholders, thus eventually helping to mitigate the incidences of corporate tax avoidance. Specifically, agency theory argues that the presence of more …

Hearts And Minds: An Analysis Of Checks And Safeguards, Monitoring, And Performance Review Of Executive Boards And Their Executive Directors Within Select Nonprofit Corporations., John Michael Wagner

UNLV Theses, Dissertations, Professional Papers, and Capstones

Horror stories of ineffective nonprofit organization management arise in the media far too often. When these stories emerge, the public demands accountability from those responsible. Ultimately, accountability rests with the fiduciaries of the organization. For nonprofit

organizations in the United States, fiduciary responsibility and accountability reside with the board of directors.

Board governance has been widely studied in the for-profit sector. Due to the critical nature of the work nonprofits perform, there has been an increasing effort to study board governance in nonprofit organizations. Employing in depth interviews, with both executive

directors and board members, checks and safeguards such as …

The Impact Of Ceo And Board Hr Expertise: Results Of The 2018 Hr@Moore Chro Survey, Patrick M. Wright, Frank I. Mullins, Donald J. Schepker, Anthony J. Nyberg, Spenser Essman

Reports

As aspects of a firm’s human capital, such as talent, executive compensation, executive succession, and culture, become more prominent on the radar screens of Boards of Directors (BODs), the role of the Chief Human Resource Officer (CHRO) has grown in importance. Correspondingly, in recent years boards have been increasing the number of CHROs who serve as directors to ensure that at least one human capital expert is part of the board mix. This report attempts to determine the extent to which some HR expertise exists with either the CEO or the board, and if so, the extent to which it …

Organisational Citizenship Behaviors Of Directors: An Integrated Framework Of Director Role-Identity And Boardroom Structure, Toru Yoshikawa, Helen Wei Hu

Research Collection Lee Kong Chian School Of Business

While directors’ task boundaries are usually ambiguous, some of their activities or behaviors clearly constitute their formal duties, whereas others are usually perceived as organizational citizenship behavior (OCB). Applying identity theory, we present a theoretical model that demonstrates one of the key drivers for directors to engage in OCB with a focus on their role identity. We argue that an individual director’s role identity is one of the key factors that motivate directors to engage in OCB. Furthermore, we propose that two board-level contingencies, board capital, and informal board hierarchy order, can moderate the effect of directors’ role-identity salience on …

Inside The C-Suite: The Ceo, The Board, And The Elt, Patrick M. Wright, Anthony J. Nyberg, Donald J. Schepker, Ormonde Cragun, Christina Hymer

Reports

The 2017 HR@Moore Survey of Chief HR Officers asked respondents to provide information on the relationships among those in the C-suite and the board. The results revealed that half of the respondents reported that their CEO also served as the Chairman of the Board (indicating there is a separate Lead Director), while the other half had an Non-Executive Independent Chairman of the Board (Non-executive Chair). Non-executive Chairs tended to exert greater monitoring of the CEO and provide more advice relative to Lead Directors. There did not seem to be any differences in the effectiveness of the relationship or the level …

Corporate Power Is Corporate Purpose Ii: An Encouragement For Future Consideration From Professors Johnson And Millon, Leo E. Strine Jr.

All Faculty Scholarship

This paper is the second in a series considering the argument that corporate laws that give only rights to stockholders somehow implicitly empower directors to regard other constituencies as equal ends in governance. This piece was written as part of a symposium honoring the outstanding work of Professors Lyman Johnson and David Millon, and it seeks to encourage Professors Johnson and Millon, as proponents of the view that corporations have no duty to make stockholder welfare the end of corporate law, to focus on the reality that corporate power translates into corporate purpose.

Drawing on examples of controlled companies that …

Research Insights About Risk Governance: Implications From A Review Of Erm Research, Therese R. Viscelli, Mark S. Beasley, Dana R. Hermanson

Faculty and Research Publications

In recent years, expectations for increased risk governance have been placed explicitly on boards of directors. In response, boards are being held responsible for not only understanding and approving management’s risk management processes, but they are also being held responsible for assessing the risks identified by those processes as part of overseeing management’s pursuit of value. These increasing responsibilities have led a number of organizations to adopt enterprise risk management (ERM) as a holistic approach to risk management that extends beyond traditional silo-based risk management techniques. As boards, often through their audit committee, consider management’s implementation of ERM as part …

Two Essays On The Internationalization Speed Of New Ventures, Orhun Guldiken

Management Theses & Dissertations

This dissertation comprises two essays on the internationalization speed of new ventures and contributes to the international entrepreneurship literature at several levels. The first essay reviews and critiques the internationalization speed literature and proposes a multi-dimensional conceptualization of speed of internationalization. In particular, previous studies that examined internationalization speed implicitly assumed that INVs need to enter new countries to grow fast in foreign markets. The key tenet of the first essay is that INVs can also grow fast in foreign markets by expanding rapidly in previously entered host countries. Consequently, the first essay uses three theoretical perspectives — organizational learning, …