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Purpose: The aim of this paper is to examine the effect of structural and demographic board diversity as well as board tenure on family firms' environmental performance, by analyzing the differences between family and non-family businesses and within family firms. Design/methodology/approach: Tobit regressions are applied to investigate the effect of independent directors, CEO non-duality, board gender diversity and board tenure on environmental performance. The study also controls for other board and firm characteristics, as well as for time, industry and country-fixed effects. In doing so, the authors rely on a sample of non-financial listed firms from France, Germany, Italy, Spain and Portugal over the period 2014–2021. Findings: The authors find that women on the board positively influence environmental performance and this effect is significant only in family firms, although board tenure negatively moderates the relationship. Board independence significantly affects environmental performance only in non-family firms. A strong presence of family directors has a negative effect on family firms' environmental performance, especially when directors' turnover is low. Originality/value: This paper examines the unexplored relationship between structural board diversity and environmental performance in family companies. This study provides empirical evidence on the association between gender diversity and family firms' environmental performance focusing for the first time on a European setting. Moreover, this study provides evidence of a different effect of board tenure in family and non-family businesses. [ABSTRACT FROM AUTHOR]

Existing research separately examines factors like qualification, tenure, and independence in relation to financial performance, overlooking the potential combined or interactive effects. This research intends to determine the role of the board of directors in addressing future challenges encountered by Indonesian state-owned enterprises. The research methodology involves quantitatively correlating independent and dependent variables, with or without variable control, utilizing nine financial ratios to assess firm conditions. The study utilized secondary data from financial statements and annual disclosures of Indonesian state enterprises from 2009 to 2016. The findings indicated that firstly, the degree, whether with or without control variables, is associated with Return on Asset and Fixed Asset Turnover. Secondly, board tenure, with or without control variables, does not exhibit a correlation with financial performance. Thirdly, the size of the independent board of directors, with control variables, does not correlate with financial performance, whereas without control variables, it is correlated with Net Profit Margin and Cash Ratio. This study introduces a new concept of board performance to predict bankruptcy indicators in companies, considering their Return on Assets (ROA) and Fixed Asset Turnover. [ABSTRACT FROM AUTHOR]

Purpose: As elsewhere in the world, family firms (FFs) play a critical role in the South African economy. There is, however, scant research on how, if at all, listed South African FFs differ from their non-family counterparts concerning board composition and independence. The purpose of this study was to address this knowledge gap by investigating director and chair independence, chair-chief executive officer (CEO) role duality, board race and gender diversity, as well as board rotation at FFs listed on the Johannesburg Stock Exchange (JSE) over the period 2006 to 2022. The study was informed by the agency, socioemotional wealth, and stewardship theories. Design/methodology/approach: Data were collected on 753 directors who served on the boards of 37 JSE-listed FFs. Data sources included Bloomberg and the FFs’ integrated reports and websites. Data were analysed by examining trends in the considered variables over time. Findings/results: While family involvement at board level remained relatively constant, considerably fewer family members served as board chairs and CEOs towards the end of the research period. Board independence increased significantly over the research period. Practical implications: Shareholder activists’ requests for improved board governance of JSE-listed FFs seem justified. Activists should, however, also consider the benefits of family stewardship when evaluating director and chair independence in these firms. This study also identifies practical implications for nomination committees and investor education. Originality/value: The use of multiple theoretical lenses provides a balanced view of board governance at JSE-listed FFs. The study contributes to the scant body of knowledge on board composition and independence in listed FFs in South Africa, which will enable future FF research.

The board of directors, represented by the company's shareholders, supervises and controls the company. In the governance of the company, which is efficient and responsible for all those who communicate with the stakeholders, it is the director who is responsible for coordination and ensures the existence of culture and proper atmosphere in the system. The purpose of this research is to study the effect of the characteristics of the board of directors on the modified audit opinion of the company. The output of this research is limited to the years 2013-2020, and this research has one main hypothesis and four sub-hypotheses. The purpose of the research is applied research, and the research method is correlational in nature. The research was done in inductive analogical reasoning and panel elimination was used to analyze the hypotheses. The results of the research hypothesis test showed that the size of the board of directors has a positive and significant effect on the modified audit opinion of the company. Board independence has a negative and significant impact on the modified audit opinion. However, the impact of tenure and gender diversity on the modified audit opinion is not significant.

The present research endeavors to examine the moderating effect of firm size on the relationship between the tenure of the audit committee chair and the board of directors with sustainability disclosure. Data from 592 non‐financial firms listed on the ASE from 2014 to 2021 were analyzed. The findings indicated that a longer tenure of a board of directors leads to increased sustainability disclosure, and firm size positively moderates this relationship. Moreover, the research outcomes indicated that the audit committee chair tenure had a positive yet non‐significant correlation with sustainability disclosure, with no moderating effect of firm size on this relationship. This study provides valuable insights for stakeholders, including investors, managers, and regulators, particularly in developing economies, by demonstrating the influence of corporate governance (CG) on sustainable development. The examination of firm size as a moderating factor offers a unique contribution to the existing literature, thus providing a deeper understanding of the indirect impact of CG on sustainability reporting. [ABSTRACT FROM AUTHOR]

The growing number of corporate scandals globally highlights the importance of effective corporate governance mechanisms. Many of the corporate governance frameworks that are rooted in the agency theory advocate the election of independent non-executive directors, an independent chairperson, and a lead independent director. Shareholder voting on the election or re-election of directors (hereafter referred to as 'director re-elections') has been largely unexplored in South Africa—a country widely recognised as a pioneer in the corporate governance field and yet marred by several corporate scandals in recent years. In this study, an unbalanced panel data set was thus constructed comprising voting outcomes and board-level characteristics of companies listed on the Johannesburg Stock Exchange from 2014 to 2020. Significant positive relationships were noted between shareholder voting opposition to director re-elections and both board size and board tenure. Shareholders who cast opposing votes mainly did so because of their concerns about the lack of director independence, at board, committee, and nominee level. The findings of this study were explained in the context of the agency, stakeholder, stewardship, and resource dependence theories. It is recommended that nomination committees use more robust selection criteria for directors. Shareholders are also encouraged to vote more actively on director re-elections to monitor these monitors. [ABSTRACT FROM AUTHOR]

The study aimed to compare the effect of sound corporate governance on manufacturing companies in South Africa, Nigeria, and Ghana on financial performance. The study used a purposive sampling method to select 60 manufacturing companies, of which twenty-nine (29) were from South Africa, 17 were from Nigeria, and 14 were from Ghana. The study employed GMM and FMOLS to estimate the effect of corporate governance on the firm's financial performance. According to the study, South Africa has the longest average board tenure at 7.85 years, followed by Nigeria at 4.7 years and Ghana at 3.9 years. The average board tenure was found to have a positive and statistically significant effect on the return on invested capital (ROIC) of the firms in South Africa and Ghana, and a positive and statistically insignificant effect was found for the firms in Nigeria. The study indicated that the firms in South Africa have the highest percentage of female directors at 24.26%, followed by Ghana at 17.8% and Nigeria at 17.3%. The study showed that female representation on the corporate board has a positive and statistically significant effect on all firms' return on net operating assets (RONOA). The study provides policy implications for shareholders, boards of directors, and other stakeholders by enabling them to build confidence in the corporate governance structure of manufacturing companies in the three countries. [ABSTRACT FROM AUTHOR]

This study aims to board online exposure, board tenure, and firm performance to change of director in 50 non-financial indexed companies listed on the Indonesia Stock Exchange (IDX) during the 2015-2019 period. This research is quantitative research using secondary data in the form of annual reports and financial reports. This study uses Pooled Least Square (PLS) with panel regression data processed through STATA 16. The results of this study found that exposure had a positive effect on the decision to add library members. The term of office simultaneously has a negative effect on the decision to add and remove members of the board of commissioners and the library. The company's performance has a positive effect on the reduction of commissioners. Online exposure and firm performance correlate with director turnover as a corporate governance control mechanism. This research has an implication to practitioners considering that one determining factor of director turnover is their exposures.

The article examined corporate governance's effects on the performance of cement-producing companies in Zambia. Assessing the performance of one of the manufacturing segments of the manufacturing industry because of the effects of corporate governance was detrimental to findings on why there is limited growth in the industry. The study specifically assessed the effects of board size, board independence, CEO duality, multiple directorships, and board tenure on the company's performance. A deductive approach strategy was used, which focused on four leading cementproducing companies in Zambia: Lafarge, Dangote, Sinoma, and Zambezi Portland. A sample population of 150 participants was targeted. Questionnaires collected primary and secondary data from the company's audited reports. This study used the principal components analysis, correlation, and regression analysis using SPSS version 27. The study found and concluded a positive correlation and effect between multiple directorships and board independence on the company's performance. CEO duality positively impacted the company's performance, but it was not statistically significant. On the other hand, it was concluded and found that board tenure and board size had a negative effect on the company's performance. This implied that they had a reducing impact on the performance of the companies in the cement manufacturing industry. Cement companies should tailor the size of their boards to meet their unique requirements, even though board size and tenure have a negative and statistically significant effect on performance. [ABSTRACT FROM AUTHOR]

To date, not much research has been devoted to analyzing the impact of some corporate governance mechanisms (board diversity and CEO duality) on corporate risk. Consequently, we believe that it is necessary to study such topic in greater depth. The aim of this research is to provide further evidence of the impact that board diversity, specifically board specific skills, board tenure and board cultural diversity, as well as CEO duality, have on corporate risk. Additionally, our study also examines the moderating role of the state‐owned enterprises (SOEs) on the association between the three characteristics of board diversity and corporate risk, and between CEO duality and corporate risk. The theoretical framework used in this research is based on agency theory and resource dependence theory. The findings show that board specific skills and board cultural diversity have a negative effect on corporate risk, while board tenure does not affect it. On the other hand, CEO duality has a negative effect, which is against the prediction of our hypothesis. Our evidence also reveals a negative moderating effect of SOEs on the impact of board specific skills, board tenure and board cultural diversity on corporate risk. Additionally, SOEs do not moderate the negative impact of CEO duality on corporate risk. Our research contributes to past literature on corporate risk by concluding that some corporate governance mechanisms like board specific skills, board cultural diversity and CEO duality lessen it. The moderating role performed by SOEs with the relationship between board specific skills, board culture diversity, board tenure and corporate risk is also a relevant contribution. [ABSTRACT FROM AUTHOR]

This paper investigates whether board tenure is associated with corporate cash holding and whether country-level political stability moderates the effect of board tenure on corporate cash holding. Using 16,351 firm-year observations across 39 countries, our main results show that firms with higher average board tenure exhibit lower cash holding. Furthermore, strong political stability mitigates the negative relationship between the average board tenure and corporate cash holdings. Our results are robust to various specifications, including endogeneity issue, weighted least-square regression, global financial crisis effect, and alternative measures for corporate cash holding and country-level institutional factors. Overall, our results imply the need to strengthen the institutional environment, given that countries with stable politics are those with incentives for the board to function effectively. JEL Classifications: G38; G18; M41; M43; M44. [ABSTRACT FROM AUTHOR]

The investors' weakening confidence towards corporate risk management particularly after the crisis has made corporate governance a top priority for the board. The awareness of risk is growing and firm practices have increasingly become organized around risk. The purpose of this paper is to investigate determinants of corporate risk management by taking into consideration board size and board tenure. The study was informed by Modern Portfolio Theory while panel approach was deemed to be appropriate. Based on inclusion-exclusion criteria, 49 firms were sample from 2013-2019 giving a total of 343 firm-year observations. The findings revealed that board size had a positive and insignificant effect while board tenure was significant and positively related to corporate risk management. The longer the experience of managers, the more knowledgeable they become thus more capable of managing corporate risk. This study contributes by providing additional empirical evidence regarding determinants of corporate risk management.

Studies addressing the impact of board capabilities on CSR reporting are scarce. The aim of this research is to provide further evidence of the impact that certain board capabilities, such as board specific skills, board tenure and board cultural diversity have on CSR disclosure. Additionally, the moderating impact of CEO power on the association between these three board competences and CSR reporting is examined. The paper draws on resource dependence theory and agency theory, which are highly relevant in analysing how board competence influences CSR disclosure. The findings show that board specific skills, board tenure and board cultural diversity have a positive effect on the disclosure of CSR information. Moreover, our evidence also shows that CEOs with greater power can negatively moderate the positive effect of the three board competences considered on CSR reporting.

This paper examines how company board characteristics (directors' quoted boards to date, quoted boards currently, board tenure and age) influence firm performance in a sample of Spanish listed companies for the period 2005–2015. Among the main contributions of the paper are that it analyses the boards of companies operating under a Continental, as opposed to Anglo-American, governance system characterized by high ownership concentration and low investor protection, and that it differentiates between inside and outside board members based on the role each type plays on the board. The results reveal differences between inside and outside board members in terms of the performance impact of some board characteristics. Thus, while for inside directors age has no significant effect on firm performance, for outsiders it has a negative one. Similarly, longer tenure on the board is associated with higher performance levels just in the case of outsiders, whereas we find a positive influence of directors' number of current board positions for insiders; finally, we do not find any evidence concerning the influence of board positions to date on performance for any of them. [ABSTRACT FROM AUTHOR]

Purpose- The study investigates the moderating role of Chief Executive Officer Duality onboard attributes and firm performance of companies listed in Kenya. Design/Methodology- The research used a longitudinal research design. Panel data were derived from published accounts for sixteen years that is from 2002-2017. IGLS regression models were used to test the hypothesis. Findings- The empirical results indicated that the independence of the board, the size of the board, and the duration in which the board member served the organization positively influence the firm performance. However, CEO duality does not moderate the relationship. Practical Implications- Regulatory bodies such as NSE and CMA in Kenya should ensure that listed firms have more independent directors serving a board, ensure a reasonable size of the board and increase the board tenure to enhance firm performance. Further, the combined roles of the CEO and chairman may not influence the efficiency of the board in the Kenyan context.

ABSTRACT: We show that board tenure exhibits an inverted U‐shaped relation with firm value and accounting performance. The quality of corporate decisions, such as M&A, financial reporting quality, and CEO compensation, also has a quadratic relation with board tenure. Our results are consistent with the interpretation that directors’ on‐the‐job learning improves firm value up to a threshold, at which point entrenchment dominates and firm performance suffers. To address endogeneity concerns, we use a sample of firms in which an outside director suffered a sudden death, and find that sudden deaths that move board tenure away from (toward) the empirically observed optimum level in the cross‐section are associated with negative (positive) announcement returns. The quality of corporate decisions also follows an inverted U‐shaped pattern in a sample of firms affected by the death of a director. [ABSTRACT FROM AUTHOR]

An independent audit committee is an audit committee on which all members are independent directors. This study examines whether independent audit committee members' board tenure affects audit fees. On the basis of the prior literature, we formulate an unsigned hypothesis. This is because on the one hand, long board tenure audit committee members (defined as members with board tenure of 10 or more years) have greater incentives to protect their reputational capitals by purchasing increased audit effort, which positively affects audit fees. On the other hand, audit pricing reflects audit committee quality. Long board tenure audit committee members may have less need for increased audit effort because they can effectively oversee the financial reporting process themselves, which negatively affects audit fees. We find that audit fees are negatively associated with the proportion of long board tenure directors on the independent audit committee, consistent with the notion that audit committee members' long board tenure results in lower audit effort. [ABSTRACT FROM AUTHOR]

[Display omitted] • We examine the trade-off between knowledge accumulation and independence on the Shariah governance-firm performance nexus. • We utilise Shariah board tenure as our proxy of Shariah governance. • Shariah board tenure is a robust linear predictor of Islamic financial firm performance. • There are curvilinear impacts of Shariah board tenure and Islamic financial firm performance. • We argue that learning facilitates a symbiosis of formal education and firm-specific situations over time. Adopting a resource dependence lens, this study examines the impact of the trade-off between knowledge accumulation and independence on the Shariah governance-firm performance nexus through a detailed examination of Shariah supervisory board tenure. Utilizing a unique, hand-collected dataset of 140 of the largest Islamic financial institutions over the period 2011–2015 and across 16 nations, we discover that Shariah supervisory board tenure is a positive, linear predictor of firm performance and that there is curvilinear relationship between tenure and the performance of Islamic financial institutions. Our findings provide novel contributions to the literature by disentangling the role and characteristics of the Shariah supervisory board and provide evidence for the existence of a trade-off between firm-based learning and independence of Shariah boards thus further highlighting the channels of transmission of these Shariah governance characterizations. [ABSTRACT FROM AUTHOR]

• IT boards are often in a state of flux. • Board structure and flux have significant lag effects on organizational performance. • Presence of independent members on the board mitigates the negative impact of flux. Corporate governance mechanisms in the Information Technology (IT) industry are viewed as pivotal for the success of IT organizations. While corporate governance, particularly in terms of board characteristics, has been extensively studied in other disciplines, it has not received as much attention in the Information Systems discipline. This study investigates the effects of board structure and its changes (i.e., board flux) on organizational performance. Results show that board size, gender diversity, and board age have curvilinear effects while board independence has a positive effect and board flux has a negative impact on performance. However, the negative relationship between board flux and performance was weaker for firms with a higher, as compared with those with fewer, number of independent directors. In addition to making a useful contribution to the sparse literature on the role of corporate governance in IT organizations, our study has strong implications for research and practice. [ABSTRACT FROM AUTHOR]