Population Ecology Theory of Organizations

Ford, Michael T.

doi:10.1007/978-3-319-31816-5_74-1

Cited by 1 publication

(1 citation statement)

References 12 publications

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“…On the one hand, organizational ecologists address the directors' importance for a firm. Their belief lies in the fact that a firm's success is based on the products quality, life cycle, firm's competency, and even luck; not the directors' skills or expertise (Cohen et al, 1972;Hannan & Freeman, 1977). On the other hand, the up upper echelon theory argues that directors are the ones who have an impact on a firm's performance (Hambrick & Mason, 1984;Harris & Helfat, 1997;Hayes & Schaefer, 2000).…”

Section: Education Level and Degreementioning

confidence: 99%

Board compensation and disclosure quality: corporate governance interference

Salehi¹,

Jamalikazemini²,

Farhangdoust

2018

CyA

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This paper investigates the impact of financial information disclosure quality on board compensation in various corporate governance mechanisms in Iran. A unique data set from a sample of 176 Iranian listed firms over the period 2010-2016 is used in order to address the following questions: as an incentive mechanism for managers, is there any relationship between compensation and disclosure quality of financial information while some corporate governance factors are interfered? Duality on board, educated members, females, and independent members are the aspects that are considered as corporate governance interference. Along with these issues, we investigate whether firm complexity is likely to affect the mentioned relationship. We find that corporate governance mechanisms including educated board members, independent members, females, and board members duality are not some reward-enhancing methods. This lends support to the conjecture that directors neglect the quality of information they provide, and as a consequence, they adjust their bonuses via other methods. Our findings indicate that there is a significant and positive relationship between board compensation and disclosure quality in firms which have complex activities and foreign sales. Finally, we indicate that disclosure quality has no significant impact on compensation in firms which have complex activity of controlling some subsidiaries.

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