International returnees as outside directors: A catalyst for strategic adaptation under institutional pressure

Lee, Ji‐Hwan; Roberts, Michael Joseph Dominic

doi:10.1016/j.ibusrev.2014.10.015

Cited by 33 publications

(28 citation statements)

References 78 publications

(84 reference statements)

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“…Such a finding allows deducing that if institutional investors make an attempt to assess the director in terms of strategic control, this procedure would motivate them to increasingly venture to support even more questionable situations. This result turns out to be consistent with those documented by the studies elaborated by Lee and Roberts (2015) and Lacoste et al (2009). According to Table 5, the FAM variable regression coefficient sounds to have a negative and insignificant value at the threshold of 10% compared with the dependent variable (a = −0.003 and p is greater than 10%).…”

Section: Multivaried Analysissupporting

confidence: 93%

“…Choi, Sun, Zhang & Grandjean, 2012;Dahlquist & Robertson, 2001;Kang & Stulz, 1997). Concerning the micro and macro level changes, Ahmadjian and Robbins have argued that, in the 1990s, foreign institutional investors led Japanese companies to adopt massive restructuring, and even started to jeopardize a firmly established tradition undertaken by stakeholding parties, capitalism in the country (Lee & Roberts, 2015). All this leads to formulate the following hypothesis:…”

Section: Presence Of Institutional Investor Control Blocksmentioning

confidence: 99%

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Institutional investors’ role in diversifying orientation decision across Tunisian companies

Gharbi

Jarboui

2017

Cogent Economics & Finance

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Abstract:The present work's major objective consists in examining the impact of institutional investors' presence on corporate diversification decision. For this sake, a theoretical framework based on the corporate governance contractual approach has been advanced highlighting the idea that the presence of institutional enjoys a diversification-oriented strategic decision. For this purpose, a model is used and applied to Tunisian firms' sample observed over the period 2011-2013. In fact, the study maintains that the presence of institutional investors helps in directly influencing corporate strategic decisions. The reached results, conducted on a sample of 111 Tunisian commercial companies and service-providing firms, appear to reveal the persistence of a significant impact of the institutional investors on diversification decision.

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Section: Multivaried Analysissupporting

confidence: 93%

Section: Presence Of Institutional Investor Control Blocksmentioning

confidence: 99%

Institutional investors’ role in diversifying orientation decision across Tunisian companies

Gharbi

Jarboui

2017

Cogent Economics & Finance

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“…Institutional directors are receiving attention from academic researchers (Baums, Buxbaum, & Hopt, ; Bhojraj & Sengupta, ; Black, ; Gillan & Starks, ) due to the monitoring role they play while sitting on boards, their active behaviour in response to the corporate governance problems of firms (Brickley, Lease, & Smith Jr., ; Pucheta‐Martínez & López‐Zamora, ) and their capacity as disciplinary managers (Lee & Roberts, ). Furthermore, Lee and Roberts () argue that such directors have many incentives “to prefer firms with better corporate governance mechanisms.” Thus, it is logical to consider that firms with institutional directors on boards will be more likely to be transparent and encourage CSR reporting, as the costs associated with their monitoring role will be lower in responsible companies. This argument is supported by previous research (Charitou, Louca, & Panayides, ; Ljungqvist, Marston, Starks, Wei, & Yan, ; Wan‐Hussin, ), which shows that institutional directors raise corporate transparency and reduce fraudulent accounting practices, inter alia.…”

Section: Theoretical Background and Hypothesesmentioning

confidence: 99%

Female directorship on boards and corporate sustainability policies: Their effect on sustainable development

Pucheta‐Martínez

Olcina‐Sempere

López‐Zamora

2019

Sustainable Development

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We aim to explore whether board gender diversity—specifically, women directors representing institutional ownership—improves the sustainability development of listed firms by affecting corporate social responsibility (CSR) policies. Moreover, among female directors representing institutional shareholders, we can differentiate between those working for banks and insurance companies (pressure‐sensitive female institutional directors) and those working for mutual funds, investment funds, pension funds, and venture capital firms (pressure‐resistant female institutional directors). The effect of these categories of directors on CSR policies is also analysed. Our evidence suggests that women directors representing institutional ownership positively affect CSR policies, which is the same as for pressure‐resistant female institutional directors, and pressure‐sensitive institutional directors do not impact CSR policies. This research provides a new framework for the role played by certain types of female directors (female institutional directors, female pressure‐sensitive directors, and female pressure‐resistant directors) in relation to CSR policies, and thus, it may help policymakers to promote CSR policies and to take action to promote responsible behaviour among listed firms.

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“…First, the literature on board internationalization suggests that foreign directors improve board monitoring by contributing independent thinking, raising controversial issues, and consequently reducing managerial entrenchment (Masulis et al, 2012;Ruigrok et al, 2007;Van Veen et al, 2014). Empirical evidence supporting this argument shows that the presence of outsider Anglo-American board membership enhances the market value of listed firms (Oxelheim and Randøy, 2003), and international returnees as outside directors reinforce corporate restructuring efforts (Lee and Roberts, 2014). Extending this argument to the context of MNEs, when headquarters country nationals are present on the board of a local implementer subsidiary, they are likely to be independent and have the requisite power and incentives to control the subsidiary management.…”

Section: Subsidiary Strategy Headquarters Country Directors and Thementioning

confidence: 99%

The Roles of Subsidiary Boards in Multinational Enterprises

Deloof

Jorissen

2015

Journal of International Management

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Available online xxxxIn recent years, shareholders, regulators, and academics have become increasingly interested in how multinational enterprises (MNEs) can ensure sound corporate governance throughout all entities within a firm. One important mechanism available to MNEs for improving their global governance is the subsidiary board of directors. However, to date scant academic research has focused on the roles of subsidiary boards and the factors that influence their involvement in different roles. Using survey data from a sample of MNE subsidiaries operating in Belgium with headquarters in 14 different countries, we find that a subsidiary board performs four roles: control, strategy, coordination, and service. Further, a subsidiary board is more involved in control, strategy, and service roles if the subsidiary operates only in the local market, independently from the headquarters (the local implementer subsidiary). In particular, the board of the local implementer subsidiary is more involved in strategy and coordination roles when more directors are headquarters country nationals. Our findings collectively suggest that the subsidiary board facilitates a subsidiary's pursuit of its strategic objective and helps to manage the headquarters-subsidiary agency problem. Moreover, subsidiary directors' characteristics influence the subsidiary board's ability to perform its roles.

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International returnees as outside directors: A catalyst for strategic adaptation under institutional pressure

Cited by 33 publications

References 78 publications

Institutional investors’ role in diversifying orientation decision across Tunisian companies

Institutional investors’ role in diversifying orientation decision across Tunisian companies

Female directorship on boards and corporate sustainability policies: Their effect on sustainable development

The Roles of Subsidiary Boards in Multinational Enterprises

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