Does director capital influence board turnover after an incident of fraud? Evidence from Italian listed companies

D’Onza, Giuseppe; Rigolini, Alessandra

doi:10.1007/s10997-016-9372-2

Cited by 7 publications

(4 citation statements)

References 78 publications

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“…A strand of literature relates the presence of independent directors with robust and effective governance practices (Weisbach, 1988; Byrd and Hickman, 1992; Brickley et al , 1994). The presence of independent directors brings about alignment between equity-holders and managers of a firm (D’Onza and Rigolini, 2017) as they provide much-needed skills and experience in diverse fields such as finance, law, management, sales and marketing.…”

Section: Literature Review Theoretical Framework and Development Of H...mentioning

confidence: 99%

Influence of independent directors on the market risks of Indian banks

Shukla

Narayanasamy

Ayyalusamy

et al. 2020

JABS

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Purpose The purpose of this paper is to empirically explore the influence of independent directors (non-executive directors) on the market risks of the Indian banks. Design/methodology/approach This paper is based on the data collected over a period of seven years (2009-2016) for a set of 29 Indian banks that are the constituents of the National Stock Exchange 500 Index. The data for independent directors of the sample banks are extracted from the annual reports of the banks, whereas the data relating to the dependent and control variables are compiled from the Ace equity and the Reserve Bank of India databases. The study uses the panel data method for analysis of the collected data for the sample banks. Findings This study concludes that independent directors increase the market risks for Indian banks (measured through equity beta). Originality/value This is, perhaps, the first paper to look into the impact of independent directors on the market risks of Indian banks. The policymakers and banks may need to be aware of the risk implications of the findings of the study in the Indian context, such that the independent directors enable their banks in reducing the market risks.

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Section: Literature Review Theoretical Framework and Development Of H...mentioning

confidence: 99%

Influence of independent directors on the market risks of Indian banks

Shukla

Narayanasamy

Ayyalusamy

et al. 2020

JABS

View full text Add to dashboard Cite

show abstract

“…D'Onza and Rigolini, 2017 [194] The rotation that occurs in non-executive directors in Italian companies after the detection of fraud is studied. There is a negative relationship between the departure of the company by the manager and his experience.…”

Section: Melé Et Al 2017 [63]mentioning

confidence: 99%

Research Topics in Accounting Fraud in the 21st Century: A State of the Art

2019

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Companies play a role in society that clearly goes beyond mere economic interest. Their contribution to social development and to the sustainability of the territory where they are located seems unquestionable. However, after the great financial scandals of companies such as ENRON, WorldCom or AHOLD, interest groups require accurate and transparent financial information. The development of more demanding financial reporting standards seems, however, not to have been up to scratch, since accounting fraud continues to be detected all over the world. The search, therefore, for possible causes that may induce companies to act unethically was the main motivation behind this research. To do this, a review of the literature in high-impact journals that has dealt with accounting fraud, covering the main lines of research, was carried out. The findings of the literature review highlight the importance of responsible corporate governance and good accounting practices, as well as the importance of certain psychological characteristics of managers and employees as enhancers of the lack of ethics. It is clear that the social cost of accounting fraud should be minimized, and governments should develop specific policies that combine responsible corporate governance in companies with the sustainability of their environment.

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“…2015). Directors' human capital positively influences firm performance (Volontè and Gantenbein, 2016), board turnover after an incident of fraud (D'Onza and Rigolini, 2017), and compensation after IPO (Williams et al, 2018). The level of human capital can also positively influence internationalization (Cerrato and Piva, 2012).…”

Section: When Citing Please Refer To the Published Versionmentioning

confidence: 99%

A critical validation of the value added intellectual coefficient: use in empirical research and comparison with alternative measures of intellectual capital

et al. 2019

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The measurement of intellectual capital (IC) constitutes a major challenge in managing intangible resources. Among the various models proposed in prior literature, the Value Added Intellectual Coefficient (VAIC) is used by many studies to measure IC. Assuming a perfectly competitive market, this study decomposes the VAIC and demonstrates that it is not directly related to IC. Conversely, the main components of VAIC are the labor share, physical capital share, and interest rate. These results are extended to a non-perfectly competitive setting through a multivariate analysis of a cross-country panel of 50,310 firm-year observations for 2000-2017. The results show that the VAIC still largely depends on exogenous factors being negatively (positively) associated with the labor (physical capital) share. Nevertheless, in this non-perfectly competitive setting, the VAIC also captures a firm's ability to generate profits, which may be attributable to multiple factors, including IC. To reduce potential measurement biases in empirical research using the VAIC, this study suggests controlling for a firm's interest rate, labor and capital shares. Adopting this suggestion, this study investigates the association between VAIC and firm performance. The results show that this association is significantly weaker when including the interest rate, labor and capital shares. The theoretical and empirical results suggest future researchers to select the VAIC to measure IC after having conscientiously examined the alternative models proposed in recent literature.

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Does director capital influence board turnover after an incident of fraud? Evidence from Italian listed companies

Cited by 7 publications

References 78 publications

Influence of independent directors on the market risks of Indian banks

Influence of independent directors on the market risks of Indian banks

Research Topics in Accounting Fraud in the 21st Century: A State of the Art

A critical validation of the value added intellectual coefficient: use in empirical research and comparison with alternative measures of intellectual capital

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