Management characteristics and corporate investment efficiency

Lai, Shu Miao; Liu, Chih-Liang

doi:10.1080/16081625.2016.1266270

Cited by 47 publications

(34 citation statements)

References 39 publications

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“…Arena et al (2019) proved that TMT size has a significant negative effect on the company's financial performance. Lai and Liu (2018) also showed that a greater TMT size has a negative effect on the company's investment efficiency. Based on the previous arguments, the following hypotheses are proposed:…”

Section: Tmt Size and Cspmentioning

confidence: 96%

“…Thus strategy and innovation become less efficient. A study by Lai and Liu (2018) in Taiwan proved that the big size of the TMT has a negative effect on the company's investment efficiency because the interaction between the members is inefficient and biased. Similar reasons might be applied to Indonesia, proving that the bigger the size of the TMT, the more complicated the communication and interaction process.…”

Section: Effect Of Tmt Size On Economic Environmental and Social Susmentioning

confidence: 99%

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Good corporate governance and corporate sustainability performance in Indonesia: A triple bottom line approach

Tjahjadi

Soewarno

Mustikaningtiyas

2021

Heliyon

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This study aims to investigate the effect of good corporate governance (GCG) on corporate sustainability performance (CSP) using the Triple Bottom Line (TBL) approach in a two-tier GCG system. GCG is measured by the size and education background of board of commissioners (BoC) and top management team (TMT). CSP consists of economic, social, and environment sustainability performance. As many as 117 sample data were collected from the financial statements, annual reports and sustainability reports of non-financial companies listed on the Indonesia Stock Exchange (IDX) for the period of 2013-2017. Multiple regression analysis was employed to test the hypotheses studied with the following results. First, BoC education has a negative effect on economic and environmental sustainability performance and no effect on social sustainability performance. Second, BoC size has a positive effect on economic sustainability performance, a negative effect on social sustainability performance and no effect on environmental sustainability performance. Third, CEO's education has a negative effect on economic sustainability performance, and no effect on environmental and social sustainability performance. Fourth, TMT size has a negative effect on economic and environmental sustainability performance and no effect on social sustainability performance. Contributions, limitations and implications of the study are also discussed.

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Section: Tmt Size and Cspmentioning

confidence: 96%

Section: Effect Of Tmt Size On Economic Environmental and Social Susmentioning

confidence: 99%

Good corporate governance and corporate sustainability performance in Indonesia: A triple bottom line approach

Tjahjadi

Soewarno

Mustikaningtiyas

2021

Heliyon

View full text Add to dashboard Cite

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“…Investment efficiency also improves when auditors have industry specialization or superior knowledge because knowledgeable and specialized auditors improve the quality of financial reporting, which enhances corporate governance and, ultimately, investment efficiency (Elaoud and Jarboui, 2017). Managerial traits such as reputable and good-quality top management teams enhance monitoring and reduce agency conflict between managers and owners, thus improving investment efficiency (Lai and Liu, 2018). Governance tools and managerial opportunism are the principal contributing factors that shape (efficient) investment decisions.…”

Section: Hypothesis Developmentmentioning

confidence: 99%

Female CEOs and investment efficiency: evidence from an emerging economy

Ullah

Majeed

Fang

et al. 2020

PAR

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Purpose This study aims to investigate how the presence of female CEOs (FCEOs) affects investment efficiency in emerging economy, where female participation in business activities is limited. Design/methodology/approach This paper investigates the impact of CEO gender on investment efficiency by using investment efficiency measures proposed by Biddle et al. (2009), Chen et al. (2011) and Chen et al. (2013). Findings The findings suggest that FCEOs are associated with high level of investment efficiency. FCEOs improve corporate governance, streamline management and reduce inefficient investment decisions. In addition, FCEOs focus more on curbing underinvestment than overinvestment when making investment decisions. Furthermore, high financial reporting quality (FRQ) strengthens the effect of FCEOs on investment efficiency. The results suggest that FCEOs do not ameliorate the investment efficiency of state-owned enterprises. Originality/value This study enhances our understanding of the effects of FCEOs on corporate investment decisions in a male-dominated society. Efficient use of resources is vital from corporate and societal perspectives. Emerging economies are characterized by the unstable political and economic environment and low participation of females in decision-making. Hence, these economies require efficient utilization of resources. This study also sheds light on the role of FCEOs in curtailing underinvestment in emerging economies. It proves that FRQ is important in emerging economies because it strengthens the governance role of FCEOs.

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“…First, more competent internal auditors (i.e. those with a higher educational level) are better able to acquire and analyze relevant information (Lai and Liu, 2018). Hence, they are more likely to identify opportunities to improve firms' operational efficiency by assessing potential risks, enhancing cost savings or increasing firm operational effectiveness (Anderson, 2003).…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

Can internal audit functions improve firm operational efficiency? Evidence from China

Chen

Lin²,

Lü

et al. 2020

MAJ

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Purpose The purpose of this study is to examine the effects of internal audit function (IAF) quality on the operational efficiency of Chinese firms. Design/methodology/approach The authors use regression models with a sample of Chinese listed companies to test their research hypotheses. Findings The authors find that IAF quality is positively associated with firm operational efficiency. The result is unchanged after correcting for endogeneity via the instrumental variable method and using an alternative measure of firm operational efficiency. The authors show that IAF competence improves firm operational efficiency, but the relationship between IAF independence and firm operational efficiency is insignificant. Additionally, they find that IAF quality can only significantly improve firm operational efficiency in the presence of effective corporate governance at the firm level and strong institutions at the province level. Using path analysis, the authors find that an IAF can improve firm operational efficiency directly or indirectly by promoting firm internal control quality. Practical implications The findings of this study suggest the need for a balance between IAF competence and independence to achieve the goals of IAF. Additionally, the authors study suggests that the effectiveness of IAF is contingent on corporate governance and market-based institutions. Originality/value The study’s findings contribute to the burgeoning literature on the relationship between IAF and firm operational performance and deepen the authors’ understanding of the role of IAF in an emerging economy whose government plays a major role in promoting and enforcing internal audits. The study also empirically support the Internal Audit Governance Maturity Model proposed by the Institute of Internal Auditors.

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Management characteristics and corporate investment efficiency

Cited by 47 publications

References 39 publications

Good corporate governance and corporate sustainability performance in Indonesia: A triple bottom line approach

Good corporate governance and corporate sustainability performance in Indonesia: A triple bottom line approach

Female CEOs and investment efficiency: evidence from an emerging economy

Can internal audit functions improve firm operational efficiency? Evidence from China

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