Board characteristics and foreign equity ownership: evidence from Bangladesh

Rashid, Mamunur

doi:10.1108/jaee-10-2019-0199

Cited by 6 publications

(10 citation statements)

References 114 publications

(231 reference statements)

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“…Yeh (2018) investigated the association between foreign institutional ownership and board size in Taiwan listed tourism firms and found that board size negatively and significantly influenced the ownership proportion of foreign institutional investors. Similarly, Rashid (2020) found the same result. Thus, the following hypothesis can be stated as following:…”

Section: Hypotheses Developmentsupporting

confidence: 64%

“…Finally, price-to-book value is used as a market performance measure for growth opportunity. Rashid (2020) found significant relationship between foreign ownership and price-to-book value, while Min and Bowman (2015) found no significant impact of price-tobook value in the Korean market.…”

Section: Control Variablesmentioning

confidence: 85%

“…In addition, return on assets (ROA) is measured as net income divided by total assets. Yeh (2018) and Rashid (2020) reported a significant impact of ROA on foreign ownership using Taiwanese listed tourism firms. Finally, price-to-book value is used as a market performance measure for growth opportunity.…”

Section: Methodsmentioning

confidence: 99%

“…This finding confirms that foreign ownership is not a homogenous group, and their behavior differs according to the foreign investor type. Recent clue by Yeh (2018) and Rashid (2020) found there is a negative insignificant relationship between board independence and foreign ownership.…”

Section: Hypotheses Developmentmentioning

confidence: 98%

“…Empirical studies provide mixed evidence regarding the impact of board directors and ownership structure on foreign investments (Covrig et al , 2006; Leuz et al , 2009; Min and Bowman, 2014; Miletkov et al , 2014; Das, 2014; Yatim et al , 2016; Yeh, 2018; Badawi et al , 2019; Rashid, 2020). Covrig et al (2006) studied similarities and differences in the stock preferences of domestic and foreign fund managers for 11 developed countries.…”

Section: Introductionmentioning

confidence: 99%

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Board governance, ownership structure and foreign investment in the Saudi capital market

Bajaher

Habbash

Alborr

2021

JFRA

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Purpose This paper aims to examine whether board governance mechanisms and ownership structure play a role in foreign investors’ decisions when buying shares in Saudi listed companies Design/methodology/approach Foreign investment in the Saudi capital market started in 2015 and reached a peak in 2019, with corporate governance regulations having been updated in 2017. The authors tested the proposed relationships using hand collected data for all Saudi non-financial firms in 2019. Findings This study found that it does not play a role in attracting foreign investment in the Saudi capital market. Foreign investors also seem to avoid firms with concentrated ownership that either have high government or director ownership; however, accounting and market variables show significant impact on foreign investors' decisions. The outcomes of this study provide empirical evidence that current foreign investors in the Saudi stock market do not place enough merit on board governance and their investment decisions tend to depend on share performance. Thus, the results show that the current governance changes and capital market regulations in Saudi Arabia may not have been sufficient to stimulate the inflow of institutional foreign investment to the country to date, but rather they have attracted individual retail foreign investors. Originality/value This empirical study is one of only a small number of studies to investigate the impact of internal corporate governance on foreign ownership in developing countries and the first in the Saudi context. In fact, most previous governance research in Saudi Arabia focused on how board governance and ownership structure influences firm performance. A review of the prior studies found that only Badawi et al. (2019) examined the determinants of foreign ownership among Saudi listed firms. Thus, the present investigation extends that study by examining the role of board governance in attracting foreign investors.

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Section: Hypotheses Developmentsupporting

confidence: 64%

Section: Control Variablesmentioning

confidence: 85%

Section: Methodsmentioning

confidence: 99%

Section: Hypotheses Developmentmentioning

confidence: 98%

Section: Introductionmentioning

confidence: 99%

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Board governance, ownership structure and foreign investment in the Saudi capital market

Bajaher

Habbash

Alborr

2021

JFRA

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Women in top echelon positions and firm internationalisation strategies: What do we know? How do we know? Where should we be heading?

Bannò,

Filippi

2024

J Manag Gov

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While women in top echelon positions and firm internationalisation have been investigated separately for an extended period, the intersection between the two has seldom been explored. This study reviews 55 publications analysing the effect of women in top echelon positions on firm internationalisation. Our review relies on the ADO–TCM framework and the microfoundational approach. Following the Theories–Contexts–Methods (TCM) framework, previous research is outlined describing: (1) theories, i.e., gender-related theories; (2) contexts, i.e., women’s top echelon position and country where women operate; (3) methods, i.e., research methods, the consideration and measurement of gender, sample, and years. Following the Antecedents–Decisions–Outcomes (ADO) framework and the microfoundational approach, emerging findings are classified into: (1) antecedents of firm internationalisation by distinguishing between those related to microfoundation (i.e., characteristics of women in top echelon positions), the discrete context (i.e., firm characteristics), and the omnibus context (i.e., characteristics of the countries of origin, destination and public stimulation programmes); (2) characteristics of the decisions regarding firm internationalisation (i.e., entry mode, export propensity, and propensity to foreign direct investments); (3) outcomes of firm internationalisation (i.e., export intensity, percentage of foreign equity ownership, number of foreign direct investments, number and characteristics of destination countries, investment success and performance, and other outcomes). Based on this, research gaps are identified and a research agenda is offered.

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The nexus of tax avoidance and firms characteristics – does board gender diversity have a role? Evidence from an emerging economy

Hossain,

Islam,

Ali

et al. 2024

APJBA

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PurposeThis study examines the moderating role of female directors on the relationship between the firms’ characteristics and tax avoidance in an emerging economy.Design/methodology/approachThis study employs the second-generation unit root test and the generalised method of moments (GMM) techniques. The Kao residual cointegration test corroborates a long-run cointegration among variables.FindingsFemale directors demonstrate mixed and unusual findings. No significant impact of female directors on tax avoidance is found. In addition, the presence of female directors does not show any negative or significant moderating impacts on the relationship between leverage, firm age, board size and tax avoidance. However, having more female directors can negatively and significantly moderate the relationship between more profitable firms, larger firms and tax avoidance. These findings show that the board of directors could use the presence of female directors to maximise their opportunistic behaviour, such as to avoid tax.Research limitations/implicationsResearch limitations – The study is limited by considering only 62 listed firms. The scope could be extended to include non-listed firms.Practical implicationsResearch implications – There is increasing pressure for female directors on boards from diverse stakeholders, such as the European Commission, national governments, politicians, employer lobby groups, shareholders, and Fortune and Financial Times Stock Exchange (FTSE) rankings. This study provides input to decision-makers putting gender quota laws into practice. Our findings can help policy-makers adopt regulatory reforms to control tax avoidance practices and enhance organisational legitimacy. Policymakers can change their policy to include female directors up to the threshold suggested by the critical mass theory.Originality/valueThis is the first attempt in Bangladesh to explore the role of female directors in the relationship between the firms' characteristics and tax avoidance. The current study has significant ramifications for bringing gender diversity into practice as a component of good corporate governance.

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Board characteristics and foreign equity ownership: evidence from Bangladesh

Cited by 6 publications

References 114 publications

Board governance, ownership structure and foreign investment in the Saudi capital market

Board governance, ownership structure and foreign investment in the Saudi capital market

Women in top echelon positions and firm internationalisation strategies: What do we know? How do we know? Where should we be heading?

The nexus of tax avoidance and firms characteristics – does board gender diversity have a role? Evidence from an emerging economy

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