New issue of the Corporate Board: Role, Duties and Composition journal
The editorial team of Virtus Interpress is happy to introduce the first issue of the journal “Corporate Board: Role, Duties and Composition” in 2024. This issue comprises papers dedicated to important issues of corporate governance such as gender diversity, corporate performance, innovation, sustainability, corporate social responsibility, etc.
The first paper in the issue authored by Silje Marie Svartefoss and Antje Klitkou studies the existence of board interlocks between wood-based firms in the Norwegian construction supply chain and firms in other industries, and their role in enabling increased use of wood in construction. It was found that the role of interlocks between boards of directors is mainly to ensure access to intangible resources, such as knowledge, skills, and abilities, which enable companies to engage in processes (detection, seizure, and reconfiguration) that they are important for their dynamic capabilities and, therefore, closely linked to their ability to innovate.
Ahmad Saiful Azlin Puteh Salin, Zubaidah Ismail, and Malcolm Smith in their study argue that the ultimate responsibility of the board of directors is to adequately fulfill its duties as required by the laws and prohibit any unnecessary actions and decisions that are harmful to the company. This study finds that only sustainability policies had a significant positive relationship with firm performance, which is consistent with many previous empirical findings. It concludes by arguing that the board’s responsibility in terms of sustainability influences corporate performance which, by adopting a good sustainability policy and strategy, can improve overall management efficiency and create long-term values, increasing the relative value.
The paper by Saeed Alshaiba and Bashar Abu Khalaf discusses the topic of gender diversity on boards and how it is becoming increasingly significant globally. It explains how investors are increasingly taking into account environmental, social and governance (ESG) considerations, such as gender diversity and sustainability reporting when making investment decisions. The study highlights the strategic importance of adopting gender diversity and sustainability reporting as a means to improve corporate reputation. This paper recommends including more women on boards of directors to improve companies’ performance on SDG reporting.
Francesco Paolo Ricapito’s study aims to analyze whether the impact of COVID-19 on the manipulation of corporate profits and whether corporate governance has a mitigating effect. Using STOXX Europe 600 data for the European capital market, it was found that the level of manipulation of companies’ earnings increased during the pandemic resulting in poorer reporting quality. The results show that a larger board helps mitigate the positive relationship between COVID-19 and earnings manipulation, while no attenuating effect was found for board independence, board diversity, and CEO duality.
The paper authored by Titi Suhartati, Sabar Warsini, and Riky Rizki Junaidi provides useful ideas for future studies regarding the literature on CSR and company value. In particular, the findings enable new researchers to quickly identify the theoretical underpinnings, trends, and findings of studies on corporate social responsibility (CSR) and corporate value.
Zhangzhong Huang, Shengxiang She, Surachai Triwannakij, Yaoping Liu, and Khoirul Anwar explored the complex dynamics of talent incentive strategies and their profound impact on the innovative performance of employees. The research found that talent incentive policies influenced innovation performance, mediated by organizational climate and amplified by employee identification with the organization. This information can inform strategies to optimize talent incentives, cultivate an innovative culture, and increase overall performance.
The final paper in this issue authored by Abdul Ghofar, Muhammad Muhammad, and Parichart Maneemai investigates the role of women as a moderating variable in the relationship between governance and ESG performance during the COVID-19 crisis. The results show that the presence of women in a board structure has a positive impact on ESG performance during the normal era but did not prove to strengthen the relationship between governance and ESG performance during the pandemic. The authors argue that this could be caused by the fact that in the COVID-19 era, companies need to focus more on short-term profits to survive.
The full issue of the journal is available at the following link .
We are grateful to all the scholars who have contributed to this issue, and we hope that you find this issue of the journal useful, informative and interesting!
