An analysis of corporate board networks in South Africa

Durbach, Ian; Parker, Hamieda

doi:10.4102/sajbm.v40i2.537

Cited by 15 publications

(20 citation statements)

References 42 publications

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“…Based on literature focusing on the measurement of direct networks, these degree calculations can be used to assess managerial or power influences (Bonacich, 1987; Brass, 2011; Horton & Serafeim, 2012; Renneboog & Zhao, 2011). Both calculations ( DEGREE-IN and DEGREE-EX ) represent network size and connectivity (Durbach & Parker, 2009; Fracassi, 2017).…”

Section: Methodsmentioning

confidence: 99%

Director Networks, Political Connections, and Earnings Quality in Malaysia

et al. 2020

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This article investigates the relationship between director networks and earnings quality in Malaysia. Using data on 4,416 individual directors who served on the boards of 745 firms listed on Bursa, Malaysia during 2011, we map the entire network of directors and generate measures to reflect the size and quality of information within the network. We find a negative and significant relationship between the overall connectedness of a director's network and the firm's earnings quality. In addition, we find a negative and significant relationship between the political connectedness of the director's network and earnings quality. Our results are robust for different measures of earnings quality.

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Section: Methodsmentioning

confidence: 99%

Director Networks, Political Connections, and Earnings Quality in Malaysia

et al. 2020

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“…Commentators have argued for and against whether the NEDs provide effective monitoring and promote firm value. Durbach and Parker (2009), Bozec (2005) and Gupta and Fields (2009) argue that it is not always the NEDs that act independently; at times, they have significant conflict of interest due to relationships and connections with inside executives and thereby compromise their independence. When the independence is affected, these directors lose their monitoring effectiveness and this can lead to a decrease in company value.…”

Section: Percentage Of Non-executive Directorsmentioning

confidence: 99%

Corporate governance mechanisms and risk-taking in South Africa

Singh

Halari

Satoh

2019

IJBGE

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This study examines the relationship between the quality of corporate governance score and the risk-taking behaviour of firms using data from 120 companies listed on the Johannesburg Stock Exchange (JSE) from 2010 to 2016. More specifically, this study analyses the way in which (i) compliance to corporate governance, (ii) percentage of non-executive directors on the board, (iii) total number of board members, (iv) percentage of debt and (v) firm size affect risk-taking behaviour in South African firms. Using a dynamic panel data regression model, the research found that corporate governance score and leverage are significant and negatively related with risk. This contradicts prior studies in other markets. Furthermore, the percentage of NEDS, board size and firm size, though positively related, were found to be insignificant risk factors. This can have useful implications for managers in assessing risk behaviour of South African firms.

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“…When central actors persist in perceiving and selecting certain patterns, they tend to ignore information with potentially greater adaptive value. The social construction of dynamic capabilities is, therefore, constrained by the perceptual framings that signal opportunities and threats, as when CEOs of poorly performing firms seek advice from their network of close friends rather than from individuals at the periphery of their network (McDonald & Westphal, 2003;Durbach & Parker, 2009). The study of how discrepancies between potential and realized competitive advantage are created and resolved is a fruitful but underexplored area in the literature on dynamic capabilities.…”

Section: Micro-foundationsmentioning

confidence: 99%

Assessing dynamic capabilities: Mintzberg’s schools of thought

Arndt

2011

SAJBM

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A growing body of research in strategic management has focused on dynamic capabilities as a central source of firms' competitive advantage. The theoretical roots of dynamic capabilities can be found in many of the schools of thought identified by Mintzberg, Ahlstrand and Lampel (1998). In this paper, we identify three aspects of dynamic capabilities that, we believe, require more detailed attention: Process, cognitive and decision-based micro-foundations, and human agency. We explore each of these areas from an evolutionary perspective to emphasize the fact that dynamic capability is essentially an evolutionary construct. By highlighting the evolutionary implications of these areas, we add important detail to the way “evolution” has been used in this field of research.

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An analysis of corporate board networks in South Africa

Cited by 15 publications

References 42 publications

Director Networks, Political Connections, and Earnings Quality in Malaysia

Director Networks, Political Connections, and Earnings Quality in Malaysia

Corporate governance mechanisms and risk-taking in South Africa

Assessing dynamic capabilities: Mintzberg’s schools of thought

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