Board structure and firm technical efficiency: Evidence from Canadian state-owned enterprises

Bozec, Richard; Dia, Mohamed

doi:10.1016/j.ejor.2005.10.001

Cited by 98 publications

(67 citation statements)

References 61 publications

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“…The ineffectiveness of independent directors was also reflected in the mixed results regarding the impact of outside directors on firm performance in SOEs (when facing market competition). found that the more outside directors on the board, the poorer the firm performance, while Bozec and Dia (2007) observed the opposite. This tendency was consistent with the study of small-cap firms by Switzer (2007), who reported an insignificant impact of outside directors on firm performance over the years 1997 to 2004.…”

Section: Discussionmentioning

confidence: 61%

“…In addition, the results of studies regarding the relationship between CEO playing a dual role and firm performance in state-owned enterprises further confirmed this trend. found that a CEO holding the board chair was only significantly and negatively associated with two out of five firm performance indicators, while Bozec and Dia (2007) observed an unclear directional sign between CEO playing a dual role and firm efficiency. Taken together, there seems no significant connection between firm performance and firms in which the CEO is also the board chair.…”

Section: Summary For Canadian Empirical Evidencementioning

confidence: 93%

“…Interestingly, a similar study conducted by Bozec and Dia (2007), 1828 investigating the impact of board independence on firm performance in 14 Canadian SOEs, 1829 had opposite results. The authors found that the proportion of outside directors 1830 on the board was positively related to firm performance (firm technical efficiency) 1831 when SOEs were exposed to market competition 1832 , suggesting that SOEs with a more independent board are more effective at coping with a complex and uncertain environment.…”

mentioning

confidence: 88%

“…1964 In addition, a mixed relationship between board size and firm performance was found to exist in state-owned enterprises. found a mixed relationship between board size and firm performance, 1965 while Bozec and Dia (2007) reported no connection between board size and firm performance. 1966 Taking the accumulated evidence together, it appears that the number of directors on the board did not have a significant impact on firm performance.…”

Section: Board Sizementioning

confidence: 99%

“…1833 However, without the impact of market discipline, no significant correlation was found between board independence and firm technical efficiency. 1834 The results of Bozec and Dia (2007) suggest that board independence is important for SOEs when they are subject to market competition (i.e. they are in a position similar to It is worth noting that the results of and Bozec and Dia (2007) should not be overemphasized, because their samples merely contain 25 and 14 SOEs, respectively, which may be generalized to SOEs in Canada and may not represent the whole business sector.…”

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confidence: 99%

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Are Independent Directors Effective Corporate Monitors? An Analysis of the Empirical Evidence in the USA and Canada

Lai

2014

SSRN Journal

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This thesis explores whether independent directors in the USA and Canada are effective in holding management accountable by: (1) analyzing how the policy of relying on independent directors developed and operates; (2) introducing the main theoretical critiques of independent directors' monitoring effect; and (3) examining whether empirical studies in the field of management science and financial economics support the policy in both countries of relying on independent directors as corporate monitors.Empirical evidence shows that boards with a majority of independent directors, in some circumstances, were associated with better firm performance (in the post-SOX period) and fulfilled certain board tasks effectively in the United States. Canadian studies, however, have not shown a positive association with improved firm performance. Audit committees composed entirely of independent directors have been effective in ensuring the quality of financial reporting in the United States, but this effect has not been found in Canada. Compensation committees composed fully of independent directors neither constrained the level of executive compensation nor tied CEO pay to firm performance in either country. US firms with an audit committee member who had accounting expertise, rather than financial analysis or supervisory expertise, were associated with a higher quality of financial reporting, while Canadian firms with an audit committee member who has financial expertise, instead of financial literacy, were associated with a similar effect. Studies also showed that independent directors perform better in certain circumstances.Based on empirical evidence, US regulators should consider: (1) changing the current mandatory requirements for an independent board and a completely independent compensation committee to a comply-or-explain requirement; (2) narrowing the qualification of a financial expert to an individual who has accounting expertise; and (3) recruiting independent directors who have two or fewer outside directorships, hold more of the corporation's shares, have lower cost of acquiring corporate information, and have no social connections with the CEO. In Canada, weak evidence of the monitoring effectiveness of independent directors supports the existing comply-or-explain approach. Canadian regulators may only need to require or recommend that at least one audit committee member has financial expertise, instead of only financial literacy.ii

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Section: Discussionmentioning

confidence: 61%

Section: Summary For Canadian Empirical Evidencementioning

confidence: 93%

mentioning

confidence: 88%

Section: Board Sizementioning

confidence: 99%

mentioning

confidence: 99%

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Are Independent Directors Effective Corporate Monitors? An Analysis of the Empirical Evidence in the USA and Canada

Lai

2014

SSRN Journal

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Do female directors influence firms' environmental innovation? The moderating role of ownership type

Liao

Zhang

Wang

2018

Corp Soc Responsibility Env

100

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As more and more females join boards of directors, their decisions concerning environmental innovation have also become the focus of scholars. Based on the upper echelons theory, feminist caring theory, and social role theory, this study constructed a relationship model between female directors and firms' environmental innovations and chose ownership type as the moderating variable. Selecting 688 listed companies in the Chinese manufacturing industry as the research sample and adopting multiple regression analysis methods, the study found that, when the proportion of female directors on the board of directors increased, the level of a firm's environmental innovation also increased significantly. After female directors were divided into independent and nonindependent directors, we found that female independent directors had a significant effect on the firms' environmental innovations. However, female chairpersons had no significant effect on the firms' environmental innovations. In addition, the effect of female directors and female independent directors on a firm's environmental innovation was stronger for state-owned listed companies.

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It’s Not Only About Value for Money: Evolution and Development of SOEs and the Making of State-Led Economic Development in Ghana

Zaato

2023

International Series on Public Policy

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Board structure and firm technical efficiency: Evidence from Canadian state-owned enterprises

Cited by 98 publications

References 61 publications

Are Independent Directors Effective Corporate Monitors? An Analysis of the Empirical Evidence in the USA and Canada

Are Independent Directors Effective Corporate Monitors? An Analysis of the Empirical Evidence in the USA and Canada

Do female directors influence firms' environmental innovation? The moderating role of ownership type

It’s Not Only About Value for Money: Evolution and Development of SOEs and the Making of State-Led Economic Development in Ghana

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