New issue of the Corporate Board: Role, Duties and Composition journal
The editorial team of Virtus Interpress is honored to introduce a new issue of the journal Corporate Board: Role, Duties and Composition in 2024 (volume 20, issue 2). This issue of the journal includes 12 useful articles devoted to the major issues of corporate governance, such as the board of directors, CEO practices, compensation, board and gender diversity from numerous countries such as the UAE, China, Iceland, Greece, Morocco, and other emerging economies.
In particular, the published papers analyse such crucial issues as earning management, board of directors, audit committee, women entrepreneurs, internationalization, competitive advantage, integrated reporting, CEO compensation, governance disclosures, firm values, agency cost, executive compensation, duality, board competence, board independence, bank efficiency, productivity, human capability, nomination committees, subcommittees, corporate performance, critical mass theory, gender equity, international business strategies, financial ratios, corruption control, internal auditing, ethical conduct, fraud detection, risk assessment, compliance monitoring, etc.
The full issue of the journal is available at the following link .
Dhini Suryandari, Retnoningrum Hidayah, Desti Ranihusna, Ivan Aulia, Sara R. Basher, Ima Nur Kayati, Salma Ibtidaul Hasna, Sifa Aura Amalia Nugraha, and Fian Tri Rohmah aim to examine the association between the board of directors’ meetings and the gender of the board of directors on earning management. In addition, their research has novelty by adding a moderating variable, namely the audit committee. This research provides empirical evidence that earnings management does not depend on the number of board meetings or the gender of the directors. Therefore, this research contributes to company policy to improve the effectiveness of the audit committee in implementing good corporate governance.
Denada Liça and Silvana Gashi investigate the crucial role played by women entrepreneurs in the process of firm internationalization, with a specific focus on the Albanian context. The findings underline the main role women entrepreneurs play as facilitators in the internationalization process, showing their ability to drive firms towards expanded global reach. This study analyses the challenges faced by women entrepreneurs in this process, offering valuable insights into the obstacles they pass and the opportunities they seize. By exploring the experiences of women entrepreneurs in a specific geographic and socio-economic context, this study provides a perspective on the challenges and opportunities inherent in the internationalization process.
Stephanus Dwiarso Utomo and Zaky Machmuddah aim to prove empirically the effect of CEO compensation and governance disclosure on firm value moderated by integrated reporting (IR). This study gives the result that firm value is influenced by governance disclosure and IR moderates the effect of governance disclosure on firm value, while CEO compensation has no effect on firm value. The practical implications of this study are to confirm the importance of corporate governance disclosure, the role of IR in increasing the value of companies, and its impact on investment decisions.
Ta Thu Phuong, Tran Phi Long, Nguyen Trung Kien, Nguyen Van Anh, Dam Khanh Chi, Le Quynh Chi, Pham Huong Giang, and Nguyen Thi Minh Nguyet explore the interplay between managerial compensation, agency costs, and corporate governance and investigate how CEO duality (combined CEO and chairman roles) moderates the relationship. The research reveals that under weak governance (CEO duality), compensation has no significant impact on agency costs. However, with strong governance (separate CEO and chairman roles), compensation’s influence on agency costs weakens.
The research by Aqil Waqar Khan and Adil Shahzad Khan delves into the importance of a competent board structure in improving firm performance and mitigating financial crises. The findings suggest that an optimal board structure, characterised by competence, enables effective strategy implementation, thereby providing organisations with a competitive edge. Independent directors, devoid of personal affiliations or biases, can exercise impartial judgment and demonstrate competence. While academic qualifications are often prioritised in the selection of board members, they do not always ensure superior performance.
Sofia Benjakik and Badr Habba investigate the relationship between board independence and bank efficiency. The findings reveal that board independence significantly enhances technical efficiency. Additionally, CEO duality, gender diversity on boards, and the presence of committees positively influence bank efficiency. The results also highlight the role of bank capitalization in improving overall bank efficiency. These findings suggest that adopting good governance mechanisms, such as increasing the number of independent administrators, female board members, and board committees, plays a crucial role in boosting bank efficiency.
Shirley Mo Ching Yeung increases the awareness of educators, entrepreneurs, policy-makers, and management in business organizations and non-governmental organizations that are familiar with the elements of SDGs and ESG for social inclusion and women’s development with business sustainability. The research results showed that some of the factors such as management board duties (women) and quality issues on supply chain management were cited the most frequently, while employee productivity (men) was cited less frequently in comparison. This is managerially relevant to organizations which are working on sustainable development with employee productivity and organizational effectiveness.
This study by Hildur Magnusdottir, Audur Arna Arnardottir, and Throstur Olaf Sigurjonsson attempts to elicit stakeholders’ perspectives on which form is sensible when deciding whether a nomination committee should be under the shareholder’s committee or a subcommittee of the board and examine the advantages and disadvantages seen by stakeholders in each form, as well as other related aspects concerning the operation of nomination committees, such as the appointment of committee members.
Tran Thi Hong Lien and Phan Thi Thu Thuy examine the association between the gender diversity of a company’s board of directors and top management and its corporate performance controlled for corporate capabilities and other governance aspects. The authors found that gender diversity in terms of female CEO presence, percentage of women on boards, and a minimum of three female board members have significant positive effects on corporate performance measured by return on assets (ROA).
Sofia Kourtesi, Aikaterini Chasiotou, Christos Konstantinidis, and Stylianos Kafestidis analyze a specific international merger involving a Greek publicly traded company in the recent post-COVID-19 and post-sovereign debt crisis era in the Greek market. The primary research aim is to assess the corporate performance of a Greek company listed on the Athens Stock Exchange (ASE) after it underwent an international merger in 2019. The research results revealed that the merger deal has led the examined Greek-listed sample company to a better performance in profitability, but not in liquidity and leverage, thus signalizing some mixed results for the international merger transaction.
Fajar Gustiawaty Dewi investigates the causal relationship between a comprehensive reporting system (balanced scorecard — BSC) and managerial time allocation when incentives are involved. The study examines whether managers adjust their time according to different performance areas when both financial and non-financial indicators are used for evaluation and reward. The study concludes that BSC and financial incentives do not significantly affect managerial time allocation as expected.
Ayad Hadi Abdul Bari, Rajaa Ali Abed, Roaa Mohammed Kahdim, Hussein Falah Hasan, Hussein Kadhim Sharaf, and Ali Saad Alwan explore how internal auditing regulates corruption, enhances corporate governance, and investigates the potential of internal auditing as a means to combat corruption. The specific function of internal auditors in identifying control defects, preventing and detecting fraud, and promoting ethics is examined. The findings of the study demonstrate that internal auditing is an essential component in the fight against corruption and the maintenance of good corporate governance. In doing so, it highlights the significance of having strong internal audit functions as well as a culture that is both ethical and open.
We hope that reading this issue will be pleasant and informative for you!
