Board members' influence on resource investments to start-ups and IPO outcomes: Does prior affiliation matter?

Takahashi, Hidenori; Yamakawa, Yasuhiro; Mathew, Prem G.

doi:10.1016/j.pacfin.2018.03.004

Cited by 6 publications

(7 citation statements)

References 37 publications

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“…The majority of Saudi Arabian research has concentrated on female entrepreneurship (Islam et al, 2018), post-materialistic ideals (Alammari et al, 2019), female entrepreneur environmental problems (Alkhaled & Berglund, 2018), and characteristics that influence the entrepreneurial success (Al-Tit et al, 2019). Only one research (Abdulghaffar & Akkad, 2020) (Takahashi et al, (2018); Lall et al, (2020); Croce et al, (2018)) have also been emphasized by certain academics. This adds to our understanding of how industrial and market conditions, as well as relationships and resources, impact startup sustainability.…”

Section: Discussion and Limitationsmentioning

confidence: 99%

Investigation of startups’ sustainability: empirical evidence from Saudi Arabia

Alqahtani¹

2022

JESI

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Despite many government attempts, it is still unclear how individual startups grow and promote their sustainability-oriented market innovations and alter markets toward sustainable growth in Saudi Arabia. This research aims to uncover the factors that contribute to a startup's long-term viability and establish interrelationships among them. A two-phased method was used in this study. Empirical research on startups' sustainability was undertaken in the first phase to identify the most critical enablers from a list of factors found after a thorough literature review. A hierarchy-based model is built among the most critical enablers in the second phase, utilizing interpretative structural modeling (ISM). The study discovers that: (1) there are ten factors influencing entrepreneurial startups' sustainability that play different hierarchical roles; (2) the startup product/service & market position, as a key influencing factor of entrepreneurial startups' sustainability, can be cultivated and improved by enriched startup partnerships & resources, industrial and market; and (3) regulatory & political may indirectly affect startups' sustainability by affecting the entrepreneurial environment. Policymakers in Saudi Arabia might utilize the methodology described in this paper to design appropriate policies for enhancing startup sustainability.

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Section: Discussion and Limitationsmentioning

confidence: 99%

Investigation of startups’ sustainability: empirical evidence from Saudi Arabia

Alqahtani¹

2022

JESI

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“…First, we selected sample companies from Japanese firms that went public on the three representative IPO markets in Japan, namely JASDAQ, MOTHERS, and HERCULES. IPO firms listed on Tokyo Stock exchanges and other exchanges are not included, as their listing standards differ from the three representative IPO markets [55,56]. Following TSE 33 industry classifications, our sample included 294 firms that went public in non-financial sectors during the period of 2009-2016.…”

Section: Methodsmentioning

confidence: 99%

“…There are several independent variables that explain the cross-sectional variations in underpricing. Board characteristic variables are the board size [56] and board composition, which measure the proportion of outside directors in relation to total directors. The monitoring and supporting role of the VC provides a lower degree of underpricing [62,63].…”

Section: Methodsmentioning

confidence: 99%

“…A dummy of three representative underwriters (Underwriter) was used to measure the underwriter reputation, including Nomura, Daiwa, and Nikko Securities [65]. Following previous studies [18,56,57,64], we adopted several control variables such as offer size, firm age, return on assets (ROA), CEO age, management ownership, and leverage. We also used industry dummies in conjunction with the TSE industry classifications (IT/communications, wholesale, retail, real estate, services, and other industries), since high-tech start-ups are considered high-risk firms [56].…”

Section: Methodsmentioning

confidence: 99%

“…Following previous studies [18,56,57,64], we adopted several control variables such as offer size, firm age, return on assets (ROA), CEO age, management ownership, and leverage. We also used industry dummies in conjunction with the TSE industry classifications (IT/communications, wholesale, retail, real estate, services, and other industries), since high-tech start-ups are considered high-risk firms [56]. We provide definitions and measurements of the variables in Appendix A (Table A1).…”

Section: Methodsmentioning

confidence: 99%

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The Board Structure and Performance in IPO Firms: Evidence from Stakeholder-Oriented Corporate Governance

2022

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This study investigates the internal mechanisms as an important factor for shareholders and stakeholders in initial public offering (IPO) firms with stakeholder-oriented corporate governance. Over the period of 2009–2016, we examine the role of independent directors in Japanese stakeholder-oriented corporate governance. According to previous research, the monitoring role of independent directors is strengthened in countries with a market-based financial system. Our empirical analyses show that independent directors do not effectively mitigate conflicts among shareholders such as IPO underpricing in a stakeholder-oriented corporate governance framework. Alternatively, accounting expertise may contribute to mitigating IPO underpricing in accordance with U.S. corporations. The participation of bank-affiliated directors in IPO firms further contributes to the mitigation of underpricing. Accordingly, these findings imply that bank ties through Horizontal Keiretsu’s bank-appointed directors are critical for mitigating conflicts among shareholders in IPO firms. These results imply that stakeholder-oriented corporate governance systems contribute to reducing conflicts among stakeholders.

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Empowering change: The role of gender diversity in steering ESG integration into executive compensation

Ahmed,

Tessema,

Hussain

2024

Corp Soc Responsibility Env

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This study investigates the influence of boardroom gender diversity (BGD) on the adoption of Environmental, Social, and Governance (ESG) metrics in executive compensation, a concept emerging from the stakeholderism debate. Prior research has focused on the impact of BGD on traditional compensation metrics, but the role of BGD in ESG‐linked compensation remains underexplored. Our research fills this gap by examining whether BGD contributes to the incorporation of ESG considerations in executive pay structures. Additionally, we analyze how board members' external affiliations might moderate this relationship, considering that these affiliations can provide diverse perspectives and insights into ESG issues. Using data from 14 countries, our findings reveal a positive and significant association between BGD and ESG metrics in executive compensation, suggesting that women directors significantly influence the integration of sustainability and ethical considerations in corporate strategic planning. Moreover, the impact of BGD on ESG‐linked compensation is found to be more pronounced with higher levels of board members' affiliations. Our results are robust to alternate estimation techniques such as propensity score matching (PSM) and generalized methods of moments (GMM). Our study contributes to the existing literature on gender diversity, corporate governance, and sustainability, offering insights for policymakers and corporate boards on aligning corporate strategies with ESG goals.

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Board members' influence on resource investments to start-ups and IPO outcomes: Does prior affiliation matter?

Cited by 6 publications

References 37 publications

Investigation of startups’ sustainability: empirical evidence from Saudi Arabia

Investigation of startups’ sustainability: empirical evidence from Saudi Arabia

The Board Structure and Performance in IPO Firms: Evidence from Stakeholder-Oriented Corporate Governance

Empowering change: The role of gender diversity in steering ESG integration into executive compensation

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