New issue of the Corporate Board: Role, Duties and Composition journal
We are pleased to present the second issue of the journal in 2018. The recent issue of the journal Corporate Board: role, duties and composition is devoted to is devoted to the issues of interlocking directorates, corporate governance, social network analysis, corporate networks, power structure, financial distress, sustainability, liquidation, corporate law, decision making, cognitive science, behavioural finance, executive compensation, firm performance, commercial banks, board of directors etc. More details are given below.
Salvatore Esposito De Falco, Nicola Cucari and Federica Di Franco, by using the social network analysis, map the network structure of interlocking boards and employ centrality measures like degree, eigenvector and betweenness centrality along with the network density and average degree. The authors interpret eigenvector centrality as a measure of “effective power” of the connections because it can be seen as a weighted sum of not only direct connections but indirect connections, while betweenness centrality as a measure of “potential power” because it is a proxy of the volume of information that passes through the nodes. In this way, the authors provide a framework for selecting Italian firms with effective and potential power – around whom interactions and processes can be traced and analysed. In addition, it is found that the position assumed by the controlling group of the Mediobanca Galaxy is definitely downsized.
Kudzai Mpofu, Anthony O. Nwafor and Koboro J. Selala investigate, through doctrinal approach, the efficacy of the statutory provisions relating to the role of the business rescue practitioner in the business rescue process and argue against the disqualification of juristic persons from appointment as business rescue practitioners. While respecting the subjective decision of the practitioner in the preparation of the rescue plan, the paper considers that such subjective decision should withstand some level of objective assessment to enjoy credibility, just as the practitioner should conform to a high level of judicial scrutiny as an officer of the court to be absolved from any liability arising from a breach of duty.
Daisuke Asaoka explores the behavioural aspects of corporate law by drawing on recent developments in the field, and so to deepen understanding of the corporate organization. The literature of behavioural science shows that group decision making does not necessarily produce better outcomes than individual decisions. In fact, a model of a group decision making shows that it can cause underinvestment at firms. The three-or-more requirement was formed with path dependency dating back to the late 19th century when Japan transplanted legal systems from overseas, but it was by no means the standard. Giving managers flexibility in organizational design is desirable in that it can accommodate firms’ internal characteristics and tendencies and facilitate the establishment of start-ups, new subsidiaries and joint ventures.
Majd Iskandrani, Hadeel Yaseen and Asma’a Al-Amarneh examine the relationship between CEO compensation and corporate performance among commercial banks operating in a small emerging market, namely Jordan. Primary data were collected for a sample of 13 Jordanian commercial banks listed at Amman Stock Exchange (ASE) during the period of 2010-2016. The findings of this paper suggest that corporate performance measured by return on equity (ROE) and return on assets (ROA) has no influence on CEO compensation. Furthermore, this paper examines the impact of a firm’s size on the relationship between CEO compensation and corporate performance. The results reveal a significant relationship between executive compensation and firm’s performance among the smaller sample firms.
To browse the issue visit this page.