Committee on board: Does it matter? A study of Indonesian Sharia-listed firms

Fauzi, Fitriya; Basyith, Abdul; Foo, Dani

doi:10.1080/23322039.2017.1316547

Cited by 15 publications

(19 citation statements)

References 52 publications

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“…18 relationship in model 2, using a market variable to capture performance, corroborating hypothesis 3, according to Dakhlallh et al (2020) and Fauzi et al (2017). This result suggests that the market appreciates the company's investment in managerial bodies, revealing transparency in the disclosure of financial information.…”

Section: Portugalsupporting

confidence: 69%

“…Concerning studies that analyze the impact of the audit committee on the companies performance, there are uncertain results. Some studies verify a positive effect on performance measured by ROA or Tobin's Q since the audit committee will promote greater internal control, reduce risks and fraud in organizations, increasing the performance of companies (e.g., Dakhlallh et al, 2020;Fauzi et al, 2017;Hussein Mohammed et al, 2019).…”

Section: Audit Committeementioning

confidence: 99%

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The influence of corporate governance and corporate social responsibility on corporate performance: an Iberian panel data evidence

Neves

Santos

Proença

et al. 2022

EMJB

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PurposeThe main goal of this paper is to study the influence of some corporate governance, corporate social responsibility (CSR), and corporate-specific characteristics on the performance of Iberian-listed companies.Design/methodology/approachTo achieve the paper's aim, the authors have used data from 33 Portuguese-listed companies, and 60 Spanish-listed companies, for the period 2011 to 2018. To test the hypotheses, the authors employed the generalized method of moments (GMM) estimation method, developed by Arellano and Bover (1995) and Blundell and Bond (1998).FindingsThe results point out that the performance determinants vary depending on the country under analysis and the variable used to measure performance. Despite being neighbors and historically commercially close, these countries have differences in their governmental, social and economic structure that lead to different stakeholder perceptions on the determinants of corporate performance. Specifically, when the authors use Tobin's Q as a market performance variable, board independence and the existence of a CSR committee have different signs in the two countries. The same happens when return on assets (ROA) is used as an accounting variable for internal management, implying that both, managers and potential investors of the two countries have different understandings about the variables that influence their performance.Originality/valueTo the best of the authors' knowledge, this is the first study to comparatively analyze the two countries of the Iberian Peninsula, analyzing the effect of corporate governance and social responsibility characteristics on the performance. The authors' results show that managers and potential investors have different points of view regarding the importance of corporate governance and social responsibility characteristics in corporate performance.

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Section: Portugalsupporting

confidence: 69%

Section: Audit Committeementioning

confidence: 99%

The influence of corporate governance and corporate social responsibility on corporate performance: an Iberian panel data evidence

Neves

Santos

Proença

et al. 2022

EMJB

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“…According to several studies, the presence of women on boards of directors and in top management positions is beneficial for companies. In fact, women increase the diversity of opinions voiced, influence leadership styles and decision-making, and improve a company’s image and durability (Fauzi et al , 2017). The gender diversity of the boards of directors also improves the quality of corporate governance through the variety of knowledge and experience board members bring to companies.…”

Section: Literature Reviewmentioning

confidence: 99%

Women’s presence in top management and the performance of microfinance institutions in West Africa

Boubacar

2019

IJSE

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Purpose The purpose of this paper is to investigate the relationship between the presence of women in senior management and the performance of microfinance organizations in the West African Economic and Monetary Union (WAEMU). Design/methodology/approach Using a data set of 266 microfinance institutions (MFIs) for the period 2013–2017, the study assesses the impact of women’s representation in senior management and on the boards of West African MFIs on these institutions’ financial and social performance. Findings The results indicate that board size and diversity positively and significantly affect the social performance of MFIs, particularly in relation to women’s participation in decision-making regarding expanding services to poor people. In essence, greater gender diversity at the board and management levels promotes the social orientation of MFIs. Research limitations/implications The low representation of women on boards and as managers makes it difficult to more accurately determine the true impact of women in senior positions on MFIs performance. Practical implications The author recommends minimum quotas for women in the top management of MFIs. This would help these institutions incorporate key skills and actively involve all members. Also, regulation places constraints on the ability of West African MFIs to mobilize deposits and this negatively impacts their financial performance. Originality/value This investigation highlights the importance of including women in the top management of MFIs to improve these institutions’ performance. It also underscores an interesting problem and answers questions raised in the existing literature by either rejecting or confirming the findings. As players in the microfinance sector recognize that board diversity is important for the success of any microfinance institution, this paper helps shed light on the situation of these organizations in the WAEMU. Peer review The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-06-2019-0365

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“…The nomination committee is responsible for identifying, selecting and evaluating suitable candidates for specific positions in the firm. Several authors have emphasised the influence of the nomination committee on firm value (Chaudhry et al, 2020; Fauzi et al, 2017; Fauzi & Locke, 2012; Lam & Lee, 2012; Zraiq & Fadzil, 2018). The existence of audit, nomination and compensation committees positively influences firm value due to the fact that these committees allow corporate boards to have greater insight into their companies (Chan & Li, 2008).…”

Section: Theoretical Framework and Hypothesesmentioning

confidence: 99%

Do board subcommittees boost European firm value? The moderating role of gender diversity on boards

Grau

Bel

2022

Business Ethics Env & Resp

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The main objective of this study is to analyse the moderating effect of corporate board gender diversity on firm value for 1490 European listed companies between 2016 and 2018. The aim is to investigate whether companies that have different subcommittees (Audit, Corporate Governance, Nomination and Compensation), or that have financial expertise on the audit committee, see increases or decreases in firm value due to the moderating effect of gender diversity. The most striking evidence reveals that the effect of gender diversity on corporate boards, considering all countries in the European sample, could positively impact firm value by moderating the corporate governance and compensation committees. In contrast, when grouped by governance structure, only in the case of one‐tier boards is the moderating effect on the governance committee determinant. Likewise, this moderating effect on the compensation committee may increase firm value, but only in countries with two‐tier corporate boards. On the other hand, our results suggest that the moderating role of women directors on the audit committee with financial expertise and on the nomination committee, while not increasing firm value, could prevent its further decline by acting as a shield for the Nordic and two‐tier groups, respectively. Our findings have important implications for company managers, as these subcommittees could exert a positive influence on the decision‐making process, such as reducing information asymmetries and agency costs.

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Committee on board: Does it matter? A study of Indonesian Sharia-listed firms

Cited by 15 publications

References 52 publications

The influence of corporate governance and corporate social responsibility on corporate performance: an Iberian panel data evidence

The influence of corporate governance and corporate social responsibility on corporate performance: an Iberian panel data evidence

Women’s presence in top management and the performance of microfinance institutions in West Africa

Do board subcommittees boost European firm value? The moderating role of gender diversity on boards

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