Corporate Governance

All full, developmental, workshop and symposia papers for this track are listed below.

Paper Types

All full, developmental, workshop and symposia papers for this track are listed below. 

DEVELOPMENTAL PAPERS

Trust: The Critical Factor In Theory And Practice, From Banks To Cakes (376)

Author/sNigel Garrow Nigel Somerset Ifedapo Francis Awolowo Murray Clark

Track: Corporate Governance

Paper Type: Developmental Papers

KeywordsCorporate Governance, Leadership Behaviour, Forensic Accounting, Financial Crisis, Audit

Abstract: This paper suggests that due to the incidence of leadership behaviours that are detrimental to many organisational stakeholders', more should be done in terms of corporate governance and auditing to address this. For stakeholders (such as pensioners, staff, and creditors) their relationship with organisational leaders is built on implicit trust. Any damage to that trust can have catastrophic repercussions for many stakeholders, be it emotional through stress or financial. Agency Theory provides a rationale for a basis on which trust can be broken. Rebuilding trust can be a herculean task, so it is important to seek ways in which any potential risk to trust can be avoided. Good governance practice is essential in the quest to maintain trust and protect stakeholders. Tighter guidelines for the content of Annual Reports, more insightful information on the skills, background, and behaviours of organisation leaders, and the use of forensic accounting techniques in the preparation of Audit reports will all facilitate maintaining trust and avoiding risks. 

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The ETHICS RASCI Governance Landscape Model (444)

Author/sNigel Brown

Track: Corporate Governance

Paper Type: Developmental Papers

Keywordsethics, governance, internal, external, model

Abstract: A proposed framework specific to the areas of governance ethics to help individuals, organisations and governments describe and understand a complex network of entities which make up an organisations internal and external governance landscape.

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An Analysis of Bank Efficiency and Corporate Governance Using Random Forest Regression for Second Stage DEA (483)

Author/sKeyur Thaker Vincent Charles Abhay Pant

Track: Corporate Governance

Paper Type: Developmental Papers

KeywordsMachine Learning, Data Science, Random Forest Regression, Data Envelopment Analysis, Performance, Banking, Corporate Governance

Abstract: Using the DEA at the first stage, our study examines the Indian bank's technical, cost and profit efficiency across public and private ownership groups for the 2008-16 time period. In the second stage, we examine impact of corporate governance in terms of board characteristics on bank efficiency. We first use the conventional OLS and Fractional regression and then demonstrate the use of methodological superior Random forest regression. We found that the average Technical efficiency was very high (0.957) while cost efficiency was marginally lower (0.947) and profit efficiency was much lower (0.790) for all the banks. Interestingly largest number of banks were on the frontier of profit efficiency. In the second stage, we find Board independence to be stronger predictor of cost efficiency; and all variables namely board size, meetings, gender diversity, board independence has been stronger predictors of profit efficiency. Furthermore, we observe that the RF model explained the highest variance for Profit Efficiency and tuning lead to further improvement. Our study also pointed out the limitations of the conventional OLS and fractional regressions and demonstrated the use of methodological superior random forest regression. Thus our study has important policy and well methodological implications. Ours is a pioneering study using the Random Forest to examine determinants of bank efficiency and exploring corporate governance in India, and its impact on three different types of bank efficiency.

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The Challenges Affecting Tax Collection in Nigerian Informal Economy (510)

Author/sNobert Osemeke Robert Okere David Nzekwu

Track: Corporate Governance

Paper Type: Developmental Papers

KeywordsInformal economy, informal sector, tax collection, Nigeria

Abstract: Despite government efforts, tax compliance in Anambra State has remained low. Despite the introduction of Anambra Social Security ID (ANSSID) in Anambra State, taxpayers are not willing to pay tax. This study identified why employees and traders in the IE in Nigeria are not willing to pay tax. Semi-structured interviews were used and 35 business owners, managers, accountants, and employees from different industries were interviewed in Anambra State. The reason for using Anambra state is that in the past few years, the state government has been looking for strategic ways to increase revenue in the informal economy, including tax reforms with the introduction of Anambra State Social Service Identity (ANSSID) number which the state has adopted as part of his strategies to pull all taxable adult into the tax-net. This research contributes and offers guidance to policy makers on how to improve tax revenue in the state.

This study found that lack of provision of amenities and infrastructural development are among the reasons traders and employees do not pay taxes, as they have to bear the burden for the provision of such amenities themselves. Lack of accountability, embezzlement, poor accounting records, lack of empowerment programs and lack of awareness are the reasons why IE do not pay tax. Recommendations were made to help policy makers improve their tax revenue.

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Corporate Leaders Values and the 2030 Agenda for Sustainable Development (763)

Author/sLisanne J Veter Harry R Commandeur Jatinder S Sidhu Henk W Volberda

Track: Corporate Governance

Paper Type: Developmental Papers

KeywordsGovernance, Values, Social Class, Political Orientation, Sustainable Development Goals

Abstract: This paper studies the influence of social class and political ideology on Dutch board

directors preferences regarding the United Nations Sustainable Development Goals SDGs. Social class relates to one's position in society, with the associated opportunities and experiences affecting ones worldview. Political ideology is a manifestation of underlying values, as it considers how one wants society to be and often considers how this should be achieved. A survey will be held that measures social class, political ideology, and SDG preferences. This research contributes to the existing literature by jointly studying social class and political ideology, by studying political ideology in a multi-party context outside of the U.S and by researching SDG preferences of directors specifically.

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Japanese Corporate Governance in the Age of Investor Stewardship (787)

Author/sChristoph Frederic Biehl

Track: Corporate Governance

Paper Type: Developmental Papers

KeywordsJapan, Corporate Governance, Institutional Investors, Active Ownership, Stewardship Code

Abstract: Responsible investment has grown globally over the last two decades, with a movement from screening strategies towards active ownership. In the UK this development was accelerated by the launch of the Stewardship Code. Not part of the global development, however, was Japan. The Japanese financial market was the only developed financial market globally that did not see a surge in assets under management invested in responsible investment products. In 2014, the Financial Service Authority (FSA) Japan launched the Japanese version of the Stewardship Code, the Principles for Responsible Institutional Investors (PRII) in order to boost responsible investment, focusing especially on active ownership and therefore an increase in accountability. This paper analyses the changes to corporate governance and its underpinning accountability through active ownership. The paper is based on semi-structured in-depth interviews with experts in the Japanese market. Findings include a renaissance of the Japanese network approach to corporate governance and accountability with long-term stable investors taking over corporate governance functions formerly fulfilled by the house bank.

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Corporate Governance and Firms Financial Decisions The Role of Managerial Heuristics and Biases (791)

Author/sMuhammad Sajid

Track: Corporate Governance

Paper Type: Developmental Papers

KeywordsCorporate Governance, Corporate Financial Decisions, Heuristics-and-Biases, Moderator variable.

Abstract: Corporate governance in relation to firm capital structure choices is well documented in corporate finance literature. Less known is that managerial heuristics and biases, such as availability and illusion of control, also relates to financing structures. Research show that business managers that are overconfident optimistic of their companies future are likely to choose more levered financing structures, which may result in higher prospects of financial distress and higher costs of capital. Thus, the aims of this study are 1 to investigate the influence of firm level corporate governance practices on firms financing structure pattern, to examine the effects of a large number of well known heuristics and biases on the executives choice of financing debt or equity, and to test the relationship between firm level corporate governance mechanisms and corporate financial structure in the presence of well known managerial heuristics and biases. This research contributes to behavioural corporate finance literature: by illuminating the effects of a large number of wellknown heuristicsand biases on managers financing choices from an emerging market perspective, Pakistan, and by illuminating the significant links between firm level corporate governance attributes and debtequity choices of firms in the presence of managerial heuristics and biases in Pakistan.

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Corporate Governance and CEO Gender on the Relation between Innovation and Firm Performance in the UK financial sector (957)

Author/sAmina Ouarda Senoussi Wafi Al-Karaghouli

Track: Corporate Governance

Paper Type: Developmental Papers

KeywordsCorporate Governance, Gender, CEO, Innovation, Financial performance

Abstract: Corporate Governance was a matter of focus of many studies during the last decade, especially after the financial crisis in 2007. With a particular emphasis on whether the quality of Corporate Governance practices does impact a companies innovative investments and performance. In the same context, This Study will focus on gender diversity within a corporation, due to its relation to corporate choices which has seen light in recent years, by scholars arguing of a positive relation between female board representation and firm performance.

However, the effect of both corporate Governance and CEO gender on the relation between Innovation and firm performance remains unclear. The current study will investigate the roles of these two variables on the relation between innovation and firm performance in the period of pre and post financial crisis of 2007, to explore whether there is a difference in their effect based on the environment in which the company operates.

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The Relationship between Board Structure, Innovation and Firm Efficiency: Empirical Evidence from the Chinese Listed Firms (1071)

Author/sXihui Chen Kienpin Tee

Track: Corporate Governance

Paper Type: Developmental Papers

KeywordsCorporate governance, Innovation, Firm Efficiency, Chinese listed firms, Moderating effects

Abstract: Abstract

This study explores the relationship between board structure, innovation and firm efficiency amongst Chinese listed firms. Particularly, whether board structure moderates the relationship between innovation and firm efficiency. Drawing from a multi-theoretical approach, this empirical study is based on a panel data analysis of 9,768 firm-year observations (2007-2017). We are currently organising the data and aiming to have the results discussed in April 2019.

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Investigating the Effects of Managerial Compensation Incentives on Investment and Financing Decisions (1077)

Author/sEmmanuel Adu-Ameyaw Cynthia Akwei

Track: Corporate Governance

Paper Type: Developmental Papers

KeywordsManagerial compensation incentives, Investment, Financing decisions

Abstract: Primarily the agency concern has long been shared by both academics and non academics alike as a fundamental causative element affecting the way corporate managers conduct business operational activities on behalf of their principals. Such divergence of interests among managers and shareholders widely held by corporations may consequently affect corporate value maximisation via poor investment selections and inappropriate financing choices. This study aims to investigate how executives compensation influence investment activities, and, the extent to which inefficient compensation excess pay induces investment distortions, financial leverage and the extent to which compensation excess affect sub optimal financing decision.

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The role of Ethics in Executive Compensation and its impact on Sustainable Development (1105)

Author/sCynthia Akwei

Track: Corporate Governance

Paper Type: Developmental Papers

Keywords: N/A

Abstract: Board of directors compensation of executives has been around a long time however, it has attracted significant attention in recent times. With factors such as the recession, non performance of companies and ethics of compensation have prompted the rise in debates about excessive executive pay, which could have numerous impacts on directors at present, and in the near future. Employing a qualitative research approach, this study explores the possible impacts of executive compensation and the role ethics plays in addressing some of these contemporary issues of executive compensation.

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Effect of Mood Variables on Investors Decision Making: An Exploration (1176)

Author/sNada El bijri

Track: Corporate Governance

Paper Type: Developmental Papers

KeywordsDecision Making, Morocco, Mood, Behavioral Finance

Abstract: This paper is produced to elaborate a study on the relation of the effects of life on the mood of the investors. More specifically, we are trying to understand according to investors what are the factors that impact their mood and therefore impact their decision to buy or sell in the stock market.

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FULL PAPERS

Does Active Return of Indian Mutual Funds Maximize Investors Return (214)

Author/sDebaditya Mohanti

Track: Corporate Governance

Paper Type: Full Papers

KeywordsReturn-Based Style Analysis, Rolling-Period Exposure Analysis, Style Benchmarks, Large-cap Equity Mutual Funds

Abstract: While investing in mutual funds made it possible for retail investors to cherish the benefits of diversification and competencies of fund managers however, these benefits have not been without costs. Therefore, investors whether retail or institutional must scrutinize and evaluate the performances of various mutual funds particularly where the investments have been made in order to create the most effective asset mix. The purpose of the present study is to examine the investment style of the large cap equity mutual funds in India using Style-Exposure analysis proposed by Sharpe 1992. The study uses the constrained quadratic optimization factor model on the monthly returns of large-cap Indian equity mutual funds and their relevant style indices for analyzing the investment style and stock picking ability of the fund managers over a period from January 2011 to April 2015. To capture the style of these funds, eighteen mutually exclusive domestic and international asset classes have been taken as the style benchmarks in the present study.

Further, to assess the dynamic drift in the style of a fund, a rolling period exposure style analysis of the funds have been carried out by using a thirty six month rolling period window computed monthly. The study analyses the selection capability of each of the fund manager by computing a mean statistics of excess active return of the funds referred as Mean Selection Return. The results of the study show that the fund managers exhibit some level of active management rather than passively tracking the style benchmarks and also depicted a good selection capability. However, results also portray that active management and good selection skills are in conjunction with the higher expense ratio of these funds. Further, the rolling period exposure analysis displayed a good amount of style consistency among all these mutual funds over the given period of time.

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The Commercialisation of Microfinance Institutions (MFIs) in Developing Countries and Financial and Social Performance (216)

Author/sSanjib Sherpa Tolu Olarewaju

Track: Corporate Governance

Paper Type: Full Papers

KeywordsMicrofinance, Commercialisation, Developing Countries, Panel Data Analysis, GMM

Abstract: In recent years, microfinance institutions MFIs have grown rapidly. Traditionally, it was set up as a strategy to fill the gap between the supply and demand for credit to poor households that enable income generating activities and eventually improve living standard. Therefore, it was mostly non government organisations NGOs. However, in the last decade, there has been an increasing trend of commercialisation in the microfinance industry. As a result, a lot of commercial MFIs started to appear but little is known about whether the industry and clients are benefited from commercialisation. Therefore, this study has investigated the relationship between the commercialisation and performance of MFIs of microfinance using comprehensive data drawn from 114 countries over the period 2002 to 2016 using a dynamic panel data analysis method. This study finds that commercialisation does not have a significant effect on the financial performance of MFIs but have a significant negative effect on social performance. Further, this study has also examined the factors that drive the performance of MFIs.

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Whos in Charge In whose Interest The Experience of Ownership and Accountability in the Charity Sector (273)

Author/sDonald Nordberg

Track: Corporate Governance

Paper Type: Full Papers

KeywordsCharity boards, non-profit organisations, directors, trustees, boards

Abstract: In the UK as in other countries, charities are companies, bound by company law as well as regulatory constraints of the non profit sector. Many are tiny, micro businesses, but others are sizeable enterprises and several hundred employees and thousands of beneficiaries. All but a few are led by voluntary boards of directors trustees, and in many of those the trustees are also the members of the company, that is, the legal owners of the business, as shareholders are in conventional companies. This paper explores the literature of charity boards and governance and reflects on recent personal experience of boards to develop a research agenda to expand our understanding of the puzzles associated with the question Who's in charge?, as well as to elaborate a typology of interests the governance of the sector serves.

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Why Does CEO Turnover Lead To CFO Turnover? (517)

Author/sBakhtear Talukdar Sabur Mollah Suchismita Mishra

Track: Corporate Governance

Paper Type: Full Papers

KeywordsCEO turnover, CFO turnover, CEO succession

Abstract: After the enactment of SOX 2002, the role of CFO has become increasingly important. An extant body of literature suggests that CFOs leave office within 6 12 months of the CEOs departure, but the literature is scarce on why CEO turnover leads to CFO turnover. The aim of the study is to investigate whether CFO turnover is a matter of a course of CEO turnover or is a consequence of CEO succession. We show that CFO forced turnover is not merely an effect of CEO turnover, but rather a consequence of forced CEO turnover. We also find that professionally qualified CFOs are mostly likely to be forced out of office within a year of forced CEO turnover. We also reveal that dependent CFOs are most likely to experience forced turnover following CEO forced turnover. We also show that externally succeeding CEOs are unlikely to remove the CFOs immediately after they take office because they need time for their learning curve. Our study makes important contributions to both power circulation theory of control and upper echelons theory of CEO succession. Our study indicates that appropriate governance reforms can help establish effective executive disciplinary mechanisms in US firms.

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Ambiguity in The Regulation-Corruption Interface: The Development a Philosophically- Based Holistic Model (591)

Author/sDavid, Alastair Coldwell

Track: Corporate Governance

Paper Type: Full Papers

Keywordscorruption, regulations, holistic model, philosophical

Abstract: Discussions on governance often focus on regulations without much consideration of the individuals responsible for implementation, and the socio-economic and sociopolitical circumstances in which they arise. The issue of effective governance is unlikely to be simply a question of the quantity or quality of regulations built to maintain and protect corporate governance. The general genuflection of economic and political authorities to simply increase the amount of regulations when confronted by financial and economic corruption needs to be changed, and the moral characteristics of managers, interpersonal trust, the prevailing socioeconomic and sociopolitical circumstances of a country at a particular moment in time, all need to be carefully considered and analysed. To this end, the study develops a holistic regulations-corruption conceptual model and illustrate its utility with examples of specific countries.

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The Quality of Board Decision Making Processes in Higher Education Institutions: UK and European Experiences. (592)

Author/sOliver Marnet Teerooven Soobaroyen

Track: Corporate Governance

Paper Type: Full Papers

KeywordsHEI, board-governance, decision-making, bias.

Abstract: We review governance (CG) practices in Higher Educational Institutions (HEIs) in the UK and in selected European Union countries with a focus on the quality of strategic decision-making processes at the level of governing boards. To this end, we interviewed key players in HEI governance, supported by board observations, discussions with board members, and secondary data analysis. With direct insights gained from over 30 semi-structured interviews with board level individuals of six UK and five EU HEIs, supported by passive observations of board meetings, we examine factors affecting the quality of strategic decision-making, with a particular focus on board member awareness of the impact of heuristics and cognitive biases on their judgement.

In a context of increasing challenges, uncertainties and expectations facing the UK and the EU HEI sector, we seek to establish whether boards regularly adopt active processes to mitigate bias in reviewing or approving plans set out by executive university management. After reviewing the evidence collected, we conclude that instances of reflection on ways to arrive at better decisions, constructive reflections on past outcomes, learning from past mistakes, and awareness of the importance of bias mitigation procedures during deliberations appear haphazard in nature, isolated in occurrence, and almost exclusively accidental.

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Exploring Why Organisations Differ in Board Configuration Do Organisations Age, Size And Their Years Being Public Matter Findings From Greek Listed Manufacturing Organisations (601)

Author/sIoannis Gkliatis Konstantinos Athanasiadis Dimitrios Koufopoulos Eleftheria Florou

Track: Corporate Governance

Paper Type: Full Papers

Keywordsboard configuration, organisational characteristics, independent directors, board leadership structure, organisational age, organisational size

Abstract: In this paper building upon several theories agency theory, stakeholder theory and resource dependence theory and by utilising data from 161 Greek manufacturing companies that were listed in the Athens Stock Exchange on the 31st December 2008, we explore the relationships between the organisational characteristics of the firms organisational age, organisational size and years listed in the stock market and the Board configuration board size, board leadership structure and directors dependence independence. Both descriptive and inferential statistics ANOVA tests were utilised to answer the research questions. Interestingly and in alignment with the literature, the findings showed that larger organizations tend to have larger boards and greater proportions of external and independent directors. However, no more strong relationships have been identified between the organisational characteristics and the board configuration. Finally, it is worth mentioning that this study examines the listed Greek manufacturing companies during very turbulent times, the start of the financial crisis in Greece, which may have an impact on the configuration of the boards at that time.

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Conceptualising Corporate Governance and Corporate Social Responsibility: A case study of Crude Oil Corporations in the Niger Delta Region of Nigeria (617)

Author/sRobert Okere Nobert Osemeke

Track: Corporate Governance

Paper Type: Full Papers

KeywordsNigeria, Corporate governance, CSR, Stakeholders

Abstract: Although there are some similarities in the conceptualisation and application of the notion of Corporate Governance and CSR, there are also key differences as revealed in the 31 interviews conducted in Nigeria and the UK involving a diverse range of people and organisations including, policy makers and regulators, politicians, senior managers and crude oil company executives, community leaders, academic experts, practitioners, business men, NGOs and Church leaders. The data collected were analysed using content analysis leading to key thematic findings linked to the meaning of corporate governance, and the development of a framework which provides a deeper conceptual and empirical understanding of the nature of corporate governance in the Nigerian context. The responses from participants provide deeper insights into how they understood corporate governance and corporate social responsibility in the context of organisational purpose vis a vis the performance of the Multinational Oil Corporations operating in Nigerias crude oil industry. This study found that the Multinational Oil Corporations definition of corporate governance was flawed. While the study argues that corporate governance should not only enable managers to maximise profit, it concludes that visible engagement in CSR for host communities is paramount for long term survival of crude oil corporations in the Niger Delta region and the rest of the world.

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An Examination of Governance Typology in Nigeria Higher Education System (667)

Author/sAbdulazeez Abioye Lawal Waid Adeniyi Akingbade Hameed Omotola Ojodu

Track: Corporate Governance

Paper Type: Full Papers

KeywordsKeywords: Corporate governance, Nigeria higher education institutions, Stakeholders, Education system, Performance

Abstract: Nigeria higher education institutions (NHEIs) are facing several challenges that border on corporate governance (CG) practices. This paper explores CG culture and its challenges in NHEIs. A qualitative research method was employed through structured interviews of some NHEIs stakeholders and extensive desk-based research. The results of the interviews and content analysis of operational documents such as the enabling laws, government directives and policies, institutional websites and some media releases of these institutions revealed the adoption of a number of internal and external corporate governance structures and non-existence of disclosure of application of CG principles. Challenges such as inadequate funding, excessive interference by government, domineering influence of unions, faulty composition of CG constituents and leadership to mention just a few are affecting effective governance in these institutions. Hence, proper funding, leadership training, empowerment of these institutions and complete disclosure of application of CG practices are recommended.

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Entrepreneurial financing under uncertainty :Performance Comparison Between ROMCA and Conventional Microloans using Agent Based Simulation (725)

Author/sAdil ELFakir Mohamed Tkiouat Khalid Allam

Track: Corporate Governance

Paper Type: Full Papers

KeywordsROMCA, social value, PLS contract, Conventional lending, Microfinance.

Abstract: In this research we create a complex simulation environment where we compare the performance of two micro-financing modes in a group lending context under uncertain market and price conditions : A classical conventional mode and a proposed Profit and loss sharing model called ROMCA (Rotating Musharakah). Both models are based on group lending of entrepreneurs over a specified period. We identify four cases of market and price conditions and use Netlogo as a simulation tool to assess the performance of the two modes in terms of employment , enterprises , investment , tax proceeds and wealth creation. We found a simulation evidence that ROMCA performs better than conventional lending in terms of creating wealth, new enterprise (and therefore new employment opportunities) and better consumption level even under adverse market conditions. On the other hand, Conventional lending is found to dominate ROMCA in terms of employment under favorable market condition.

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Non-financial Information Disclosure: Corporate Government and new challenges (796)

Author/sHerenia Gutierrez-Ponce Julian Chamizo-Gonzalez Nuria Arimany-Serrat

Track: Corporate Governance

Paper Type: Full Papers

Keywordsnon-financial information, financial information, IBEX 35, corporate governance, Directive 2014/95/EU, public-interest entities

Abstract: Directive 2014/95/EU on Disclosure of Non-Financial Information requires public-interest entities (PIE) and large companies with over 500 employees to present a non-financial report in 2018 on environmental, social, and corporate governance aspects relating to the 2017 fiscal year. The study details the transposition of Directive 2014/95/EU into the Spanish legal system and demonstrates the current visibility of such non-financial information on the websites of the IBEX 35 companies in line with international, European and national regulations, with special reference to corporate governance. In addition, it evidences the need for a non-financial report with greater web transparency by these entities. It also analyses whether the IBEX 35 companies with the best financial indicators have better non-financial indicators and web communication.

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The Management Control Portfolio Set to Handle Our Governance Challenges (915)

Author/sAlf Westelius Ann-Sofie Westelius

Track: Corporate Governance

Paper Type: Full Papers

KeywordsGovernance challenges, Governance ideals, Management-control families, Human-centred organising

Abstract: We present an ecology view of management control tools and concepts as a way to capture the dynamics in the field and grasp where they come from. In so doing, we propose an alternative way of structuring management control terms into families, according to governance challenges addressed, to provide an overview of the field and facilitate an analysis of the dynamics. We start on such an analysis with both historical examples and attempts at looking forward. The proposed structure does not reveal any clear group of concepts or tools for sustainable management control. Therefore, we draw on a model for human-centred organising to guide the assessment of imbalances and the sustainability of management control packages. Exemplifying with current organisations, we demonstrate that from a narrow organisational perspective, human-centred control is not necessary for success or survival; strict economism can work for a high-profiled company, even if it appears to be detrimental for society. And value-based, trusting, non-monitoring management control also seems to be for particular, high-profiled (and possibly not very large) companies, rather than a realistic mainstream alternative in our mainstream world. We end by identifying plausible trends and future challenges for management control.

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Relationship Between Corporate Governance And Managerial Efficiency In Nigeria Public Corporations (1002)

Author/sBarbara Ofuani Sunday Adebisi

Track: Corporate Governance

Paper Type: Full Papers

KeywordsCorporate Governance, Managerial efficiency, Public Corporations, Stakeholders

Abstract: Corporate governance importance in ensuring compliance with procedures, rules and regulations for efficient delivery of public corporation in developing nation has become a very important discussion among scholars, due to growing governance failure, indicated by collapses of erstwhile large state corporations across the globe. Unethical business conduct, corporate governance abuses and managerial inefficiencies have been seen to pervade most operations of public corporations in Africa. This paper therefore addressed corporate governance practices and managerial efficiency in some selected public corporations in Nigeria. Data were obtained from the Lagos offices of the selected six public sector establishments with a questionnaire instrument, using a multi staged sampling technique purposive and stratified. Data were analysed using Duncans Post Hoc tests, Correlation Regression models and ANOVA test. The results of the tests showed that Nigerian Public corporations partially comply with code of corporate governance practices and that there exists a positive relationship between corporate governance and managerial efficiency. The paper concludes that strict compliance with existing code of corporate governance is important and that, structures should be established to ensure sound ethical climate for managerial efficiency to the satisfaction of all stakeholders.

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Ethics in Stakeholder Engagement for Successful Organizational and Project Management- A Systematic Review (1073)

Author/sKamil Okedara Paul Chan Bill Collinge Obuks Ejohwomu

Track: Corporate Governance

Paper Type: Full Papers

KeywordsEthics, stakeholder engagement, business management

Abstract: Stakeholder engagement or management (SE) has been variously discussed. Most studies tend to view the discussion on ethics and stakeholder engagement at a point in time. However, what is less known and which has significantly not been studied is how ethics in stakeholder engagement changes overtime for benefits of both projects, business and organizations. This paper therefore examines how ethics is considered in studies of stakeholder engagement in the management of business, organizations and projects.

To be able to generate findings for both academics and practitioners, we have employed a systematic reviews of 57 studies across geographical locations, spanning various fields to discover the gap. This is in addition to studying the evolution of definitions and perspectives studies have come up with over the years

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Using Distribution Strategy as a Complementary Corporate Governance Instrument for the Insurance Industry, How Efficient in the UK? (1093)

Author/sTony Abdoush

Track: Corporate Governance

Paper Type: Full Papers

KeywordsIndependent Intermediaries, Distribution Strategy, DEA Efficiency Scores, Corporate Governance, United Kingdom

Abstract: Distribution for an insurance company is considered one of the key success factors, where the chosen distribution strategy would significantly affect an insurers profitability on the long run. Applying the non parametric data envelopment analysis DEA, the aim of this study has been taken a different perspective to examine the extent to which the choice of a specific distribution strategy, namely Independent Intermediaries, would improve firm efficiency, by reducing agency conflicts between policyholders, managers, and shareholders. In other words, would a specific distribution strategy act as complementary corporate governance instrument in insurance companies, in the UK during the period 2004 2013 The main findings show that a significant positive association between corporate governance, estimated by the newly built corporate governance index UKCGI, and firm performance, measured by the DEA efficiency scores, has been confirmed in stock companies. In the second stage, the results revealed that although multi channel insurers have higher scale efficiency compared to other single strategies, using Independent Intermediaries as a distribution strategy does play a vital role as a complementary corporate governance instrument, which improve firm efficiency, with strong evidence for stock companies, but with weaker evidence for mutuals.

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Corporate Governance Practices and Firm Performance in the UK Insurance Industry, Does This Relationship Hold True During Financial Distress? (1117)

Author/sTony Abdoush

Track: Corporate Governance

Paper Type: Full Papers

KeywordsCorporate Governance, Firm Performance, Insurance, Listed and Non-Listed, Financial Crisis

Abstract: Past empirical studies in corporate governance have focused on non financial companies, and mostly in the US, while few within financial firms have investigated corporate governance in the banking industry, and much fewer in the UK. However, a scarce number of studies, with no recent studies, have attempted to systematically explore the effect of corporate governance in the UK insurance industry, taking into account the Comply or Explain approach to corporate governance, compared to legislation based approach in the US. In this study, the main aim is to examine the impact of corporate governance arrangements on firm performance of the UK insurance industry, and whether listing status and or financial distress make any difference

This study contributes to the literature first by a manually collected dataset for both listed and non-listed insurance companies in the UK over a longer period of time stretching between 2004 and 2013. As far as the researcher is aware, this study is also the first to using two new insurance-related performance measures, revenue growth ratio and adjusted combined ratio, in order to compare the effects of corporate governance arrangements implemented among listed and non-listed insurance companies, as well as before, during, and after the Financial Crisis of 2008.

Using a sample of 67 UK insurance firms during the period 2004-2013, the main findings show that board non-duality and the presence of a majority shareholder, but with a local audit firm with less independence ratio, improve firm performance in insurance companies. Furthermore, the findings for the sub-samples indicate a stronger association between corporate governance and firm performance in listed insurance companies during the financial crisis of (2007-2009), and afterwards.

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The moderating role of Negative Media Spotlight on the relationship between Accrual Based Earnings Management and Real Earnings Management: Evidence from the UK Listed Companies (1190)

Author/sSaadia Irfan

Track: Corporate Governance

Paper Type: Full Papers

Keywords: N/A

Abstract: This paper empirically tests the substitution hypothesis of a negative relationship between the amount of real earnings management and accrual based earnings management on a sample of UK firms from 2003 to 2017. I show that contrary to prediction, the higher level of accrual based earnings management is associated with higher level of real earnings management. However, this relationship is moderated by negative media spotlight; suggesting that firms with negative media coverage tend to substitute real earnings management with accrual based earnings management while firms without negative media spotlight do not. These results hold true for various robustness checks. Further analysis reveals that the moderating effect is only pronounced in firms with positive profitability; thereby suggesting that firms with losses tend to engage in both real earnings management and accrual based earnings management even in the presence of negative media limelight.

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