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The research aims to examine the impact of board composition on the ESG performance of Latin American companies. 390 companies located in Argentina, Brazil, Chile, Colombia, Mexico, and Peru, between 2016 and 2021, were analyzed. The board size, gender diversity, independence of the members and the duality of the executive director and chairman of the board were used as characteristics of the board of directors. Through symmetrical (panel data regression) and asymmetrical (fuzzy set qualitative comparative analysis) approaches, the findings showed that larger, more diverse and more independent boards contribute positively to higher ESG performance. The presence of duality in the position of executive director and chairman of the board of directors was not a relevant driver, both for ESG performance and for its dimensions in isolation. This study has important theoretical, managerial and governmental implications. [ABSTRACT FROM AUTHOR]

Purpose: The effects of board composition on performance have long been discussed in management research using fractionalization measures. In this study, we propose an alternative measurement approach based on board polarization. Design/methodology/approach: Using an exploratory analysis and applying the polarization measure to German Deutscher Aktienindex (DAX)-, Midcap-DAX (MDAX)- and Small Cap-Index (SDAX)-listed companies, this paper applies the polarization index to examine the relationship between board diversity and performance. Findings: The results show that the polarization concept is well suited to measure principal-agent problems between the members of the management and supervisory boards. We reveal that board polarization is negatively associated with firm performance, as measured by return on investment (ROI). Originality/value: This exploratory study shows that the measurement of board polarization can be linked to performance differences between companies, which offers promising starting points for further research. [ABSTRACT FROM AUTHOR]

Boards of directors play important roles when responding to one of the biggest challenges for companies today: environmental sustainability. Research has mainly been focused on the separate impacts of board structure, composition, and processes on corporate environmental performance. Understanding how these three dimensions of the board, which help to successfully fulfill the board roles, interact in complementary or substitutive ways is crucial for improving companies' environmental performance. Using a fuzzy‐set qualitative comparative analysis on a sample of 86 European‐listed companies in greenhouse gas (GHG)‐intensive sectors, our study shows that board dimensions and the attributes that shape them have complementary or substitutable effects on corporate environmental performance. Specifically, we identified four board archetypes that arise from different configurations promoting environmental performance. Finally, we considered CEO‐Board interaction, showing that both longer and shorter CEO tenures together with certain combinations of board attributes could be linked to higher environmental performance. [ABSTRACT FROM AUTHOR]

While a vast amount of literature demonstrates the importance of having a board of directors (BoD) for positive firm outcomes, our empirical study based on a wide sample of family firms suggests this is not always the case, and that its impact on firm resilience is contingent on family social capital (FSC). When FSC is high, family members focus on internal governance and frequently reduce the BoD to a symbolic role. Thus, a BoD represents a cost rather than a benefit. In contrast, a BoD is very effective when a firm is poor in FSC and the family firm most resembles a non‐family firm. Consequently, the question is not whether to have a BoD but in which case it can benefit the family firm. Our analysis concludes that family members' involvement in the BoD per se does not enhance a firms' resilience as they have other informal mechanisms that play a similar role. However, executive and independent directors as key board members lead us to conclude that, together with the FSC, the composition of the board affects family firm resilience. [ABSTRACT FROM AUTHOR]

This study addressed a gap in the literature by investigating the link between corporate strategy and board composition and how it connects to firm value. Most studies have explored whether board structure predicts firm outcomes rather than the other way around even though firm strategy plays a significant role in structuring the board. The sample covered the period between 2013 and 2018 and included 20,677 firm‐year observations, on which we executed country‐industry‐year fixed‐effects regression analysis. We found that, first, cost leadership strategy was positively associated with board size, board independence, board gender diversity, and board tenure, whereas it was negatively associated with board skills. Second, differentiation strategy was positively associated with board size and board gender diversity. Third, the moderating effects revealed that while board size and board tenure negatively moderated between cost leadership and firm value, board skills positively moderated between cost leadership and firm value. On the other hand, while board size, board gender diversity, and board tenure positively moderated between differentiation and firm value, board skills negatively moderated between differentiation and firm value. The results were robust to an alternative firm value proxy and endogeneity concerns. These findings provide firms with the opportunity to better shape their board structure in line with their corporate strategies and shareholder expectations. [ABSTRACT FROM AUTHOR]

Transnational NGOs (TNGOs) often claim to speak and act on behalf of diverse communities, yet many are governed by boards that may not reflect the sector’s rhetorical commitments to inclusive governance. This apparent gap between rhetoric and practice has led to growing pressure for leading TNGOs to engage in governance reforms. This exploratory article evaluates the composition of the boards of 25 leading TNGOs in the United States with a combined 395 board members to assess the extent to which this rhetoric is associated with board composition. A latent class analysis of board member data measuring demographic, competency, and cognitive background indicators identifies a distinction between “inclusive” and “traditional” board types. We find that the inclusive board type is associated with rhetorical commitments to diversity, equity, and inclusion, whereas the traditional board type is not. We conclude with recommendations for research to inform TNGO governance reforms.

This study investigates the connection between the governance structure of a public research institute (PRI) and its inclination towards entrepreneurship and patenting, in the form of spin-offs and granted patents, in Romania, an emerging economy. Employing a combination of negative binomial and Firth logistic regressions, the research examines the links between the composition of the board of directors (BD) and PRI's knowledge and technology transfer (KTT) and entrepreneurial efforts over a period of eleven years (2012–2022). The results show that gender diversity in the BD does not impact the establishment of new firms and patenting. Moreover, the likelihood of spin-off creation in female-led PRIs is lower than in male-led ones, while the general director's gender has minimal impact on the patenting process. On the other hand, BD diversity in terms of external directors, namely the industry representatives, strongly influences the entrepreneurial orientation of the PRI. The same connection is shown with the existence of technology transfer offices. Scientific excellence is slightly complementary with patenting. Finally, geographic location has a weak mixed effect on the creation of spin-offs and patenting. Our paper contributes to the industrial organisational literature, which has not paid enough attention to the role of research institutes in science commercialisation, especially in emerging economies.

The global pandemic has weakened the company’s financial stability and slowed the economy. Using 241 Indian-listed companies of the BSE (A Group) for 5 years (i.e., 2017–2021), the study aims to examine the moderating role of the pandemic crisis on the dividend policy and its determinants associations. Applying the regression technique, the study reveals that profitability, liquidity, leverage, firm size and board independence have significant impact on dividend policy for the Indian listed businesses. However, the overall findings of the study suggest that the instability in the economic condition that occurred for the years 2020 and 2021 has weakened the association of free cash flows, the board size, CEO duality, and board independence with the dividend policy in India. The study also reports the positive impact of the crisis on dividend policy; accordingly, it implies that Indian firms may prefer to pay dividends during the crisis period to calm investors and restore their confidence. Relatively a low relationship between free cash flows and the state of the economy with the dividend policy is an indicator of serious agency problems. [ABSTRACT FROM AUTHOR]

This study examines the relationship between women directors and the cost of equity (COE). Investigating the French firm's sample, we find a significant negative effect of women directors on the COE. Our results also document that the effect of women directors on reducing the COE is significant for firms that have a critical mass of at least four women directors. Using the difference‐in‐difference (DID) and propensity score matching (PSM) approach, we find that the relationship between female directors and lower equity costs is significant for the period following the Copé–Zimmermann gender quota law. The results show that women directors' presence on corporate boards is also supported by economic reasons. The study provides implications in relation to the Copé–Zimmermann law in France. [ABSTRACT FROM AUTHOR]

In the corporate governance literature, it has been long debated on whether boards can effectively monitor executives' behavior. Drawing on the factional faultlines research, this study proposes that the greater the magnitude of the faultline between inside and outside directors, the lower the likelihood of corporate financial fraud; this effect is weaker when outside directors sit on more other boards. An analysis of a sample of Chinese publicly-listed firms for 2003–2015 renders support to our predictions. Our results are robust for various model specifications and alternative measures of key variables. The implications of our findings to the corporate governance and faultline literatures are discussed. [ABSTRACT FROM AUTHOR]

The number of women serving on the executive boards of large companies in Germany once again increased in 2023: Around 18 percent (153 of 875) of executive board members at the 200 largest companies were women as of late fall 2023, two percentage points higher than in 2022. Thus, growth has slightly picked up again. In some of the groups of companies analyzed, the figure was even higher. Around 23 percent of executive board members at the DAX 40 companies, for example, are women. The largest banks and insurance companies, which in the past years have lagged considerably behind other private sector companies and companies with government-owned shares, managed to catch up a bit. In many places, this growth is due to the fact that companies have appointed a woman to their executive board for the first time. Beyond that, there is currently not much progress. In addition, the number of women holding the position of CEO has decreased in many groups of companies. More commitment is needed from companies, both internally (e.g., from the supervisory board) and externally (e.g., from investors) to achieve gender parity in senior leadership positions. [ABSTRACT FROM AUTHOR]

This study examined the link between board composition and environment, social and governance (ESG) investment, and how financing decisions moderate this nexus. The study constructed hypotheses using insights derived from stakeholder and agency theories. We used secondary data from 2010 to 2022 to conduct an empirical analysis using the system Generalized Method of Moments (GMM) and Fixed Effect (FE) estimators. This study found a positive and significant relationship between board independence, sustainability committee, gender diversity, managerial ownership, board meetings and ESG investment. We also found a negative connection between CEO duality, board size, foreign nationals on the board, annual remuneration, and ESG investment. Furthermore, financing decisions significantly moderated the relationship between board composition and ESG investment. The results confirm the importance of board composition and financing decisions in ESG investment in Chinese manufacturing firms. The results show that splitting the CEO and chairperson roles and frequent board meetings can improve a company's ESG investment. Policymakers should facilitate company operations by providing regulations for ESG investment.

Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This comprehensive study delves into the intricate relationship between corporate governance and Corporate Social Responsibility Disclosure (CSRD) within the framework of China’s institutional landscape. By analyzing an extensive dataset comprising 35,435 firm-year observations from 3,889 A-share listed companies spanning the years 2006 to 2019, the research scrutinizes various governance mechanisms, including board size, independence, CEO duality, and ownership concentration.The investigation affirms that larger boards and a higher proportion of independent directors exert a positive influence on CSRD. In contrast, a substantial shareholding ratio held by the largest shareholder proves to be a hindrance to the transparent disclosure of CSR initiatives. While the impact of CEO duality on CSRD is noted, the statistical significance of this relationship remains inconclusive.These findings underscore the nuanced dynamics of governance and ownership structures in shaping CSR initiatives. The findings highlight the nuanced impact of governance and ownership structures on CSR initiatives, offering valuable insights for managers and policymakers navigating CSR strategies in China’s business landscape. The insights garnered from this study hold valuable implications for both corporate managers and policymakers navigating the landscape of CSR strategies within the unique contours of China’s business environment. AcknowledgmentThis paper is co-funded by the European Union through the European Education and Culture Executive Agency (EACEA) within the project “Embracing EU corporate social responsibility: challenges and opportunities of business-society bonds transformation in Ukraine” – 101094100 – EECORE – ERASMUS-JMO-2022-HEI-TCH-RSCH-UA-IBA / ERASMUS-JMO-2022-HEI-TCHRSCH https://eecore.snau.edu.ua/Oleh PASKO expresses sincere gratitude for the support received from the Kirkland Research Program, generously provided by the Leaders of Change Foundation established by the Polish-American Freedom Foundation.

This study investigates the relationship between family ownership, board composition, and the performance of family businesses, with a focus on unlisted family enterprises. While much attention has been given to studies on listed family firms versus non-family firms, unlisted family businesses play a significant role in economies worldwide. The research used the PRISMA statement 2020 to select relevant articles and employed VOS viewer software for data analysis. The results reveal four significant research areas: interlocking directorates, family ownership, board composition, and performance of unlisted firms. Interlocking directors positively influence the performance of unlisted family firms, and the presence of knowledgeable board directors positively impacts strategic planning decisions. Notably, differences arise between family firms led by the first generation and those by subsequent generations. Independents and affiliates on the board enhance performance when the first generation runs the firm. The findings provide new insights into the role of board directors in the corporate governance of unlisted family businesses.

The objective of the study was to determine the influence of board composition on performance of non-governmental organizations (NGOs) in Ethiopia through descriptive survey and correlational research designs. The study achieved 72.6% response rate from 276 chief executives and 199 board chairpersons analysed through descriptive and inferential statistics. The findings showed a positive relationship between board composition and performance of local NGOs. The results also showed that majority of the boards are characterized by limited diversity (male dominated), lack clearly constituted board committees and challenged on enablers of board function (infrequent meetings). Nonetheless, board diversity, effectiveness of the boards in carrying out their functions, and the existence of board committees were all important factors for determining performance of NGOs. With these findings, the study recommends setting of clear eligibility criteria for board appointments/elections, setting term limits, holding regular elections, regular appraisal of board and CEOs performance, induction of new board members, providing clear terms of references and encouraging gender diversity. Since the study was based on views of the board chairpersons and chief executive officers, secondary data and assessments of the external stakeholders can be used to triangulate the findings.

Copyright of Deutsches Institut für Wirtschaftsforschung: DIW-Wochenbericht is the property of DIW Berlin and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The main focus of this study was to analyse the relationship between board composition and the financial performance of farmers' cooperative societies in Kericho County, Kenya. The study was based on the Stakeholder Theory and adopted a correlational research design. The target population consisted of accounting officers, auditors, chief executive officers, directors, managers, and employees from the 51 farmers' cooperative societies registered by the Ministry of Cooperatives in Kericho County. A sample size of 303 participants was determined through Yamane's (1967) formula. Data was collected using a structured questionnaire, and subject experts were consulted to enhance the validity of the research instrument. The instrument's reliability was measured using Cronbach's alpha coefficient, which yielded a result of 0.8999, indicating sufficient reliability for the study. A pilot study was conducted in Bomet County, using 10% of the sample size to evaluate the research instrument's validity. The data from the study was analysed using descriptive statistics, that is, mean and standard deviation, and inferential statistics using correlation and multiple regressions. The results were presented using frequency tables. The study found that board composition was statistically significant (Beta=0.431; p=0.000<0.055) and positively influenced the financial performance of farmers' cooperative societies. Overall, the study concluded that board composition had a positive statistically significant relationship with the financial performance of the farmer cooperative societies. The findings from this study could be used to improve the delivery of services to farmers by cooperative society management. It can also help policymakers, such as the government and other stakeholders, make informed decisions and policies to enhance the performance of cooperative societies across the country. Finally, the study's findings will benefit researchers interested in studying the relationship between board composition and the financial performance of farmers' cooperative societies. [ABSTRACT FROM AUTHOR]

Copyright of Jurnal Reviu Akuntansi dan Keuangan (JRAK) is the property of Universitas Muhammadiyah Malang and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This study examines the impact of board composition on the financial technology of banks listed on the stock exchanges of the Gulf Cooperation Council (GCC) countries. The study focuses on the size of the board, the independent members, the number of board meetings, and their impact on mobile banking, automated teller machines, point-of-sale terminals, and Mada Atheer, which are used as proxies for financial technology. In addition to the Ordinary Least Squares (OLS) method, the study uses the Generalized Method of Moments (GMM) system to control the endogeneity and heteroscedasticity issues. The sample consists of all banks listed in the GCC over eleven years from 2010 to 2020. The study found that the size of the board, the independent directors, and the number of board meetings are all positively and significantly associated with banks' financial technology. Regarding the financial characteristics of banks, the study found that banks' age and financial performance are positively and significantly associated with financial technology, while financial leverage is negatively related to financial technology. The findings of this study have implications for boards of directors of banks, which should continue to invest in banks' financial technology to improve their profitability and competitiveness. [ABSTRACT FROM AUTHOR]

This study explores the association between board composition and the financial performance of the companies listed on the BSE-500 Index. The authors also analyse whether financial performance mediates the relation between board composition and executive compensation or not. The authors utilised a sample of 319 non-financial firms from the BSE-500 Index from 2010–11 to 2019–20. This time period was purposely chosen to eliminate the consequences of the 2007–2008 global financial crisis to reduce any uncertainty that may influence the company's financial performance. OLS regression techniques with firm fixed and time effects have been incorporated to test the hypotheses. To address the issues of reverse causation and endogeneity, regression models were employed with one-year lagged values for all predicted variables. In addition to OLS, the GMM technique is also used to validate the findings of the study. The findings show that financial performance fully mediates the link between board composition variables, except gender diversity, and executive compensation. These results suggest that a successful corporate governance system relies on the board's composition and how well it supervises its executives. Thus, the board may devise a fair compensation structure which is linked to financial performance to reduce managerial opportunism. This could help in aligning the interest of managers and shareholders, therefore lowering agency costs and boosting financial performance. Although executives are held accountable for the organisation's growth, sometimes they may act in their interest instead of the shareholders. Therefore, this study contributes to the literature on executive compensation and provides insights into reducing the opportunistic behaviour of managers through compensation design. In the pre-existing literature, limited studies are available that examine the direct or indirect effect of financial performance on the association between board composition and executive compensation among Indian companies. This study adds evidence to the literature on board composition of companies, financial performance, and executive compensation. This study is helpful for executives of the company and regulatory authorities while making decisions regarding board composition and executive compensation. This study encourages future researchers to conduct longitudinal studies with a larger sample and a longer time horizon. [ABSTRACT FROM AUTHOR]

This paper aims to investigate the impact of board characteristics on the risk-taking and performance of Indonesian and Malaysian Islamic banks. It proposes an idea of ideal board governance in an Islamic bank institution. Based on hand-collected data of board characteristics in 27 Islamic banks in Indonesia and Malaysia from 2006 to 2016, this study utilises panel data analysis for its empirical approach. The authors used random effect Generalized Least Square (GLS) regression and Generalised Method of Moments (GMM) to ensure the robustness of the results. The regression results indicate that the Sharia Supervisory Boards (SSB) and Board of Commissioners (BoC) play a crucial role in Islamic banks' risk-taking and financial performance. The paper highlights several significant findings: (1) the presence of female directors in SSB and BoC tend to improve performance, and the presence of female BoC tend to reduce risk-taking; (2) the presence of foreign BoC members induce performance and reduce bank's risk-taking; (3) SSB members with not only Islamic but also finance/economics type of education background tend to reduce risk-taking, while BoC members with Islamic education is likely to decrease the four type of risks: insolvency risk, funding risk, credit risk, and Sharia non-compliance risk; (4) SSB and BoC members with financial or economics educational background are likely to increase Islamic bank's performance; (5) SSB and BoC members that are older tend to improve performance, and SSB that are busy tend to reduce risk-taking of Islamic banks. These results are robust to different estimation techniques. [ABSTRACT FROM AUTHOR]

Copyright of Riwayat: Educational Journal of History & Humanities is the property of Riwayat: Educational Journal of History & Humanities and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Board composition has received increasingly more attention from scholars as an important determinant of environmental, social and governance (ESG) performance. Two factors of board composition receive attention as they strongly relate to sustainability issues: gender diversity and board independence. The aim of this study is to test whether the presence of a critical mass of women in boardrooms correlates with firm ESG performance. In addition, we aim to study whether women receiving appointment as executive rather than nonexecutive directors may positively influence ESG performance. Using a sample of Italian companies listed on the Mercato Telematico Azionario during 2003–2019, the empirical results show that a critical mass of at least three female directors is necessary to improve ESG performance and that executive women directors represent a crucial component of board mechanisms, in terms of aligning the needs of stakeholders, since they increase ESG performance. Because the advising and monitoring functions impact firm value, we support the idea that female directors in strategic positions in the boardroom may benefit ESG performance. Thus, we support the idea of increasing women's presence on corporate boards and across executive leadership as a measure and a signal of how firms can respond to ESG challenges. [ABSTRACT FROM AUTHOR]

Strategic emphasis is a critical decision reflecting a firm's relative proclivity toward value creation versus value appropriation. Despite the increasing role of the board in setting the strategic priorities of firms, there is a dearth of research examining board‐level influences on strategic emphasis. Drawing on the cognitive perspective of corporate governance, we posit that exposure to external information via board interlocks provides competing incentives to pursue value creation and value appropriation strategies. We hypothesize that political ideological diversity among directors facilitates the utilization of external information for novel purposes, thus increasing firms' value creation focus. Combining data on directors' political ideologies with network analysis, we test these hypotheses in 584 large U.S. firms between 2000 and 2018. We find that political ideological diversity influences strategic emphasis both directly and in interaction with board interlock network centrality: politically ideological diverse boards exhibit a greater focus on value creation, and this effect is strengthened when the board is well connected to others. These results have implications for the director selection process, and for executives advocating for value creation strategies and the requisite R&D investments under differing conditions of board composition and information exposure. [ABSTRACT FROM AUTHOR]

This paper seeks to contribute to the board gender diversity debate by introducing a tool to capacitate women for effective and impactful board participation. The tool was developed using principal component analysis and incorporated the conceptual domain of board gender diversity and the lived experiences of board participants in South Africa. To validate the instrument, interviews were conducted with 19 participants from the boards of companies from three industry sectors; namely; oil and gas, mining and pharmaceutical sectors. The instrument was then completed by 193 respondents from the three sectors. The newly developed tool was found to be a 16-item tool with five dimensions named as: (1) valuability; (2) distinctiveness and confidence; (3) technical expertise; (4) worldly wisdom; and (5) industry and leadership experience. The tool introduced should be seen as a practical reference point to prepare women for effective board participation.

AbstractFollowing the lead of recent literature showing the vital role played by institutional directors in influencing organizational outcomes, this study contributes to the body of research on auditing delays by examining the question of if and to what extent institutional directors have any connection to the on-time completion of audit reports. The study also looks into how having directors who have been approved by the central bank can speed up audit reporting. In addition, the research article goes on to explore concerns regarding the potential negative effects that changing partners could have on auditing results due to the impairment of client-specific knowledge. Our study provides pioneering empirical evidence supporting the idea that institutional directors and financial institution directors significantly improve audit timeliness in emerging audit economies. Furthermore, this study finds little evidence to support the contention that a long-tenured audit partner improves financial reporting timeliness. Therefore, being scared of mandatory partner rotation leads to an impairment of knowledge and understanding specific to customers, and the postponement of declarations of audited financial results is unwarranted and unnecessary.

AbstractThis study investigates the impact of board composition and gender diversity on capital structure using a dataset comprising 30 publicly traded Ghanaian firms from 2008 to 2018. By employing the system generalized method of moments (GMM) as the analytical technique and controlling for firm size and profitability, the study unveils several noteworthy findings. Firstly, the presence of inside directors demonstrates a significant negative influence on leverage, aligning with the principles of agency theory, suggesting that inside directors with privileged access to internal information adopt a cautious approach to debt financing to minimize conflicts between managers and shareholders. Secondly, the positive and significant effect of independent or outside directors on leverage syncs with resource dependency theory, implying that these directors bring valuable expertise and perspectives to firms’ capital structure decisions. Surprisingly, the study reveals that gender diversity on boards exerts a significant positive impact on leverage, supporting resource dependency theory, as gender-diverse boards enhance a firm’s reputation and attractiveness to lenders. Moreover, firm size demonstrates a negative and significant effect on leverage, indicating that larger firms possess greater access to internal financing sources, reducing reliance on external debt. Overall, the study underscores the importance of carefully considering board composition for optimal capital structure decisions, highlighting the benefits of maintaining a balance between inside and outside directors and promoting gender diversity on boards for improved decision-making and enhanced firm value.

Boards of directors play an important role in one of the biggest challenges facing companies today: environmental sustainability. While research has mainly focused on the individual and isolated impacts of board composition characteristics on environmental sustainability, we aim to provide an understanding of what combinations of these characteristics result in its high/low levels and why. Using a fuzzy‐set qualitative comparative analysis of a Spanish company's sample over the period 2014–2019, we find that the characteristics of board composition could be complemented or substituted among them, having a similar impact on environmental sustainability performance. We also find that large boards, with a high presence of women and a low presence of family members, led to high environmental sustainability while having no dedicated sustainability committee and a lack of independence with no family presence yielded a low one. Finally, we draw four strategies for the design of the board composition. [ABSTRACT FROM AUTHOR]

Research Question/Issue: Motivated by the agency theory and the findings of linguistic studies, we analyze the association between the internationalization of a firm's audit committee and its corporate governance. Research Findings/Insights: Based on data from 2159 publicly traded European firms from 15 countries for the period 2000–2018, we find that firms with foreign directors on their audit committees are associated with lower financial reporting quality. The association is mitigated by stronger country‐level investor protection and a higher similarity among intra‐committee languages. We further find that foreign directors on the audit committee are related to stock prices being less informative about future earnings. Theoretical/Academic Implication: In this study, we argue that language differences create communication difficulties that weaken social integration between foreign directors and the other parties involved in overseeing financial reporting, thus hampering their ability to monitor effectively. Practitioner/Policy Implications: The results indicate that foreign directors on a corporate board increase its independence. However, appointing foreign directors to the firm's audit committee may compromise the board's monitoring function. [ABSTRACT FROM AUTHOR]