Download or read book Ownership Structure Board and Manager Discretion on Performance written by Vincent Ongore and published by LAP Lambert Academic Publishing. This book was released on 2011-02 with total page 196 pages. Available in PDF, EPUB and Kindle. Book excerpt: The study investigated the combined effects of ownership structure, board effectiveness and managerial discretion on firm performance using agency theory as an analytical framework. Measures of performance used in the study were Return on Assets, Return on Equity and Dividend Yield. Using Pearson s Product Moment Correlation and Logistic Regression, Step-wise regression and ANOVA to analyze data obtained from companies listed at the Nairobi Stock Exchange, the study found out that Ownership Concentration and Government Ownership have significant negative relationships with firm performance. On the other hand, Foreign Ownership, Diffuse Ownership, Corporation Ownership, and Manager Ownership were found to have significant positive relationships with firm performance. The results of this study have indicted the Board of Directors for not playing any meaningful role in corporate governance in Kenya. On the other hand, the results support the need for managers to bear more responsibility of their mismanagement and also share in the residual income of the firms they manage.

Download or read book Managerial Discretion and Performance in China written by Hagen Wülferth and published by Springer Science & Business Media. This book was released on 2013-04-17 with total page 557 pages. Available in PDF, EPUB and Kindle. Book excerpt: ​The theoretical and empirical literature to date has fallen short of reaching a consensus as to whether granting more managerial discretion to managers tends to enhance, not alter or diminish organizational performance (the discretion puzzle). This book aims to build a bridge between these contradictory results by synthesising principal-agent theory, stewardship theory, and managerial discretion theory into a new empirically-validated model. Using a representative sample of 'double-blind' interviews with managers of 467 firms in China and applying partial least squares path modelling (PLS), the study identifies a potential cause of the discretion puzzle: the failure of the extant literature to account for granularity in the way that managers use their discretion. This generates far-reaching implications for theoretical and empirical research as well as practical recommendations for managing managers in multinationals and Chinese companies.

Download or read book Discussion of Accounting Discretion Corporate Governance and Firm Performance written by Wayne R. Guay and published by . This book was released on 2011 with total page 13 pages. Available in PDF, EPUB and Kindle. Book excerpt: Bowen, Ragjopal, and Venkatachalam (2008) explore whether managers, on average, use accounting discretion for reporting objectives that are in the interests of shareholders (e.g., signaling, tax minimization, etc.), or alternatively whether managers use discretion opportunistically in the presence of governance structures that allow greater discretion. The authors find that although accounting discretion is positively related to governance structures that allow managers greater discretion in decision-making, there is no evidence that the portion of accounting discretion related to governance structures is negatively associated with firm performance.In this discussion, I emphasize the importance of decision rights allocation within widely held corporations, and how this allocation naturally leads to cross-sectional variation in the degree of discretion afforded managers. In contrast to much of the existing governance literature, I argue that governance structures that allow managers greater discretion in making decisions do not necessarily imply weak/poor governance. For example, it is difficult to see why a firm that allocates the least possible decision-making rights to their board or executives is necessarily the firm with highest quality governance. I also discuss why the observed relation between accounting discretion and firm performance may be uninformative about whether accounting discretion is used for opportunistic purposes. If shareholders/boards thoughtfully select an appropriate amount of overall decision-making discretion to allow managers, it will be difficult to determine whether specific types of discretion are used opportunistically.

Download or read book Inside the Boardroom written by Richard Leblanc and published by John Wiley & Sons. This book was released on 2010-02-10 with total page 340 pages. Available in PDF, EPUB and Kindle. Book excerpt: Distinguished governance experts offer cures for what ails our boards of directors In light of corporate malfeasance in recent years, the governance of corporations has been receiving great attention from regulators, researchers, shareholders, and directors themselves. Based on Richard Leblanc's in-depth five-year study of 39 boards of directors of both for- and not-for-profit organizations, Building a Better Board goes behind the scenes to reveal the inner workings of boards of directors, including how they make decisions. Recently chosen as one of Canada's "Top 40 Under 40"(TM), Dr Richard Leblanc is an award-winning teacher and researcher, certified management consultant, professional speaker, professor, lawyer and specialist on boards of directors. He can be reached at [email protected]. James Gillies, PhD (Toronto, Ontario, Canada), is Professor Emeritus at the Schulich School of Business, York University, where he serves as Chair of the Canada-Russia Corporate Governance Program.

Download or read book Pay Without Performance written by Lucian A. Bebchuk and published by Harvard University Press. This book was released on 2004 with total page 308 pages. Available in PDF, EPUB and Kindle. Book excerpt: The company is under-performing, its share price is trailing, and the CEO gets...a multi-million-dollar raise. This story is familiar, for good reason: as this book clearly demonstrates, structural flaws in corporate governance have produced widespread distortions in executive pay. Pay without Performance presents a disconcerting portrait of managers' influence over their own pay--and of a governance system that must fundamentally change if firms are to be managed in the interest of shareholders. Lucian Bebchuk and Jesse Fried demonstrate that corporate boards have persistently failed to negotiate at arm's length with the executives they are meant to oversee. They give a richly detailed account of how pay practices--from option plans to retirement benefits--have decoupled compensation from performance and have camouflaged both the amount and performance-insensitivity of pay. Executives' unwonted influence over their compensation has hurt shareholders by increasing pay levels and, even more importantly, by leading to practices that dilute and distort managers' incentives. This book identifies basic problems with our current reliance on boards as guardians of shareholder interests. And the solution, the authors argue, is not merely to make these boards more independent of executives as recent reforms attempt to do. Rather, boards should also be made more dependent on shareholders by eliminating the arrangements that entrench directors and insulate them from their shareholders. A powerful critique of executive compensation and corporate governance, Pay without Performance points the way to restoring corporate integrity and improving corporate performance.

Download or read book Corporate Governance Strengthening Latin American Corporate Governance The Role of Institutional Investors written by OECD and published by OECD Publishing. This book was released on 2011-07-01 with total page 78 pages. Available in PDF, EPUB and Kindle. Book excerpt: This report reflects long-term, in-depth discussion and debate by participants in the Latin American Roundtable on Corporate Governance.

Download or read book Corporate Boards That Create Value written by John Carver and published by John Wiley & Sons. This book was released on 2002-10-10 with total page 231 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book applies John Carver's highly successful Policy Governance model to corporate boards. Carver and boardroom consultant Caroline Oliver explain the world's only conceptually coherent operating system for boards. This simple yet profound system clarifies roles, empowers directors and senior management alike, and makes accountability feasible to a previously unattainable degree. The authors suggest a redefinition and elevation of the value that boards should create and show how to apply the Policy Governance design to commanding company performance. Corporate Boards That Create Value gives corporate directors and all who care about governance a powerful tool for success.

Download or read book Board Structure Ownership Structure and Firm Performance written by Mohamed Belkhir and published by . This book was released on 2010 with total page 23 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the interrelations among five ownership and board characteristics in a sample of 260 bank and savings-and-loan holding companies. These governance characteristics, designed to reduce agency problems between shareholders and managers, are insider ownership, blockholder ownership, the proportion of outside directors, board leadership structure, and board size. Using two-stage least squares regressions, we present evidence of interdependencies between board and ownership structures. The results suggest that banks substitute between governance mechanisms that align the interests of managers and shareholders. These findings suggest that cross-sectional OLS regressions of bank performance on single governance mechanisms may be misleading. Indeed, we find statistically significant relationships between performance and insider ownership and blockholder ownership when using OLS regressions. However, these statistically significant relationships disappear when the simultaneous equations framework is used. Together, these findings are consistent with optimal use of each governance mechanism by banks.

Download or read book The Economics of Corporate Governance and Mergers written by K. Gugler and published by Edward Elgar Publishing. This book was released on 2008-01-01 with total page 373 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book provides an insightful view of major issues in the economics of corporate governance (CG) and mergers. It presents a systematic update on the developments in the two fields during the last decade, as well as highlighting the neglected topics in CG research, such as the role of boards, CG and public interest and the relation of CG to mergers. Two important conclusions can be drawn from this book: the first is that corporate governance systems that better align shareholders and managers interests lead to better corporate performance; second, there is an important relationship between CG structures and the quality of firm decision-making, one of the most important being the decision to merge or take over another firm. Focusing on some of the often-neglected aspects of corporate governance such as non-profit organizations and public interest, as well as mergers and acquisitions from a CG perspective, this book will be a valuable resource for both academics and postgraduate students of finance, business and economics.

Download or read book The Board of Directors written by Ettore Croci and published by Springer. This book was released on 2018-12-04 with total page 158 pages. Available in PDF, EPUB and Kindle. Book excerpt: Boards of directors are a central feature of any corporate governance regime. The role of directors and how they affect firm value and policies is examined in depth in academic literature. However, it is easy to get both lost and overwhelmed when searching through the literature review that investigates several characteristics, often one at the time. This book provides a careful and concise look at corporate finance literature, specifically with regard to the board of directors, summarizing the main findings and reconciling them. This book documents the pros and cons associated with the various attributes of the board and the directors as found in the current literature and provides sections geared specifically to practitioners in this space, as well, allowing for a better and more comprehensive description of this important corporate governance mechanism. The resulting book aims to facilitate the interpretation of changes in corporate governance through the lens of the recent academic literature.

Download or read book Handbook on Responsible Leadership and Governance in Global Business written by Jonathan P. Doh and published by Edward Elgar Publishing. This book was released on 2005 with total page 429 pages. Available in PDF, EPUB and Kindle. Book excerpt: Reading these various non-technical articles is undeniably valuable for any person (teachers, executives, students) who is concerned about the behaviour of major companies managers in the context of globalisation and economy liberalisation. Gestion 2000 A profoundly important book for scholars and leaders alike that makes a vital timely contribution to the behavioral perspectives on leadership and governance. Doh and Stumpf, along with their world-renowned contributors, apply solidly anchored academic wisdom to offer fresh ideas on restoring faith in the integrity of American enterprise. Jeffrey Sonnenfeld, Yale School of Management, President and CEO, Chief Executive Leadership Institute and author of Leadership and Governance From The Inside Out Ethics, social responsibility, leadership, governance. These terms are heard in the classroom, in the boardroom, and viewed on the front page of newspapers and magazines. Yet serious attention to the relationships among these concepts is lacking. Although commitments to leadership, ethics, and social responsibility are evident, individuals and companies are falling short in combining these duties into policies and cultures that guide behavior and decisions. The missing element is a broad-based and integrated approach to responsible leadership and governance. This volume provides the leading thinking on these issues and includes a discussion of emerging areas that require future attention. The contributors leading scholars in the fields of leadership, governance and social responsibility summarize the state of the literature, identify complementary insights and perspectives, discuss areas of conflict and disagreement, and include a provocative and stimulating agenda for further investigation. They point up practical consequences of these perspectives in light of developments that have exposed the shortcomings in practice. Several contributors focus specifically on the challenges faced by global companies in developing and maintaining leadership and governance practices that are responsive to different national institutional and cultural settings. Thorough coverage and insightful discussion make this an essential reference for scholars and students of leadership, corporate responsibility and professional ethics, as well as for all those directly responsible for establishing the ethical codes and practices of their organizations.

Download or read book New Corporate Governance written by Martin Hilb and published by Springer Science & Business Media. This book was released on 2005-09-02 with total page 234 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book presents an innovative and integrated approach to the theory and practice of corporate governance. Central to this approach is a set of instruments that can be used by boards to offer effective strategic direction and control to their organizations. The board instruments can be readily applied to the targeted selection, review, remuneration and development of board members, and for conducting board self-evaluations. This new approach to corporate governance is based on four guiding principles that together form the basis of an integrated approach that addresses all key aspects of corporate governance.

Download or read book The Corporate Governance Structure and Corporate Performance written by and published by . This book was released on 2005 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This study examines the effectiveness of the corporate governance mechanisms and their impact on corporate performance, using the data of one industry sector? China?s listed real estate companies. The studies include four parts: (1) the ownership structure; (2) the board structure; (3) the manager compensation; and (4) the agency costs measured by asset utilization efficiency and manager discretionary expenses.

Download or read book Ownership Structure and Firm Performance written by Malla Praveen Bhasa and published by . This book was released on 2007 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper attempts to review literature on corporate governance on the ownership structure from a firm performance perspective. The dominant paradigm of corporate governance is based on the argument of Berle and Means (1932) that separation of ownership and control affects the reported level of income of firms, either positively or negatively. Subsequent studies have taken off from this concept of separation of ownership and control or in what is otherwise more famously known as 'conflict of interests' theory. Seven major arguments that have emerged within the context of 'conflict of interests' theory are explained in this paper. These arguments are basically considered to have emerged as an explanation to discuss the motivations that govern the managers and owners running the corporations. The uniqueness of the paper is in the way the literature is organized. As alluded earlier, corporate governance within the conflict of interests framework is subject to behavioral motivations of those who run the corporations. The profoundness of conflict of interests lies in where the locus of control is - with the managers, the owners, the institutional investors or with the markets. Hence, the literature has been classified under a few major headings to explain the importance of 'locus of control' and its impacts on firm's performance. Finally, some concluding remarks are offered in the summary.

Download or read book Corporate Governance and Its Implications on Accounting and Finance written by Alqatan, Ahmad and published by IGI Global. This book was released on 2020-09-25 with total page 425 pages. Available in PDF, EPUB and Kindle. Book excerpt: After the global financial crisis, the topic of corporate governance has been gaining momentum in accounting and finance literature since it may influence firm and bank management in many countries. Corporate Governance and Its Implications on Accounting and Finance provides emerging research exploring the implications of a good corporate governance system after global financial crises. Corporate governance mechanisms may include board and audit committee characteristics, ownership structure, and internal and external auditing. This book is devoted to all topics dealing with corporate governance including corporate governance characteristics, board diversity, CSR, big data governance, bitcoin governance, IT governance, and governance disclosure, and is ideally designed for executives, BODs, financial analysts, government officials, researchers, policymakers, academicians, and students.

Download or read book Corporate Governance the Environment written by Luis Diestre and published by . This book was released on 2008 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper brings together the two important topics of corporate environmental management and corporate governance by exploring the impact of various governance mechanisms on the level of environmental performance that is realized by firms. Specifically, we hypothesize that anti-takeover amendments and provisions that restrict managers' personal liability create a sphere of "bad" discretion that allows managers to shirk by underinvesting in potentially financially beneficial levels of environmental performance. On the other hand, we suggest that corporate governance structures that emphasize higher levels of performance pay and lower degrees of monitoring create a degree of "good" discretion that enhances environmental firm performance. We find strong and robust support for these hypotheses in a sample of U.S. manufacturing firms, suggesting that different corporate governance mechanisms can serve as important tools for public policy and corporate board level efforts to enhance environmental performance.

Download or read book Transforming Corporate Governance and Developing Models for Board Effectiveness written by Yasser, Qaiser Rafique and published by IGI Global. This book was released on 2020-12-25 with total page 345 pages. Available in PDF, EPUB and Kindle. Book excerpt: Corporate governance can be considered as an environment of trust, ethics, moral values, and confidence as a synergistic effort of all the constituent parts, including stakeholders, the public, service provides, and the corporate sector. The actions of an organization and the consequences of those actions has become increasingly concerned with corporate governance. As such, it is essential to examine the latest concepts and trends that can lead to the development of effective models for corporate boards. Transforming Corporate Governance and Developing Models for Board Effectiveness is an essential reference source that contains forward-thinking research intended to facilitate effective, entrepreneurial, and prudent management that can deliver the long-term success of the company. The book discusses the different theories and practices surrounding boards of directors’ responsibilities and innovative strategies for the governance of their companies that allow them to become and remain successful. Highlighting topics that include board diversity and independence, business ethics, and family business governance, this book is intended for corporate boards, board of directors, executives, managers, business professionals, academicians, researchers, policymakers, and students.