Board Composition and Companies’ Performance: Does Political Affiliation Moderate the Relationship?

Leong, Mike Siew Wei; Paramasivam, Anand; Sundarasen, Sheela; Rajagopalan, Usha

doi:10.5539/ijbm.v10n10p216

Cited by 8 publications

(7 citation statements)

References 133 publications

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“…These indicators would be: Tobin's Q, price-to-book ratio-PBR, Return on capital employed-ROCE, Return on own-funds -ROE and ROI. Relevant measures were used for the politic experience (Leong et al, 2015), strategic experience (Lambert and Ghaya, 2016), demographic variables (Muller, 2014), structural variables (Arora and Sharma, 2016) and control variables (Terjesen et al, 2015). The study variables were chosen from previous studies by characterizing them in terms of availability and measurement.…”

Section: Methodsmentioning

confidence: 99%

“…Likewise, Dou et al (2015) show that firms with government-owned managers have a significantly lower return on assets ROA than those with no political linkage, particularly in non-regulated industries (Leong et al, 2015). This negative political affiliation's impact is explained by the diversion of resources and their inefficient use since they have been attained from corruption and favoritism.…”

Section: Political Experiencementioning

confidence: 95%

“…Political experience: Defined as the percentage of directors with political experience (Faccio, 2006;Leong et al, 2015).…”

Section: Political and Strategic Experiencementioning

confidence: 99%

See 2 more Smart Citations

The composition of board of directors and performance: Impact of the political experience after the Tunisian revolution

Bouaine¹,

Hrichi²

2022

J. Account. Taxation

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This paper investigates the impact of directors' political experience, acquired on the financial performance of listed companies, after the Tunisian revolution of 2011. We also emphasize the directors' strategic experience, and the board of directors' demographic and structural characteristics. Our data are based on a sample of 22 Tunisian companies listed on the Tunisian stock exchange during the period 2012 to 2018. This period is characterized by a high corruption. We use two different regression models to examine the impact of the directors' political experience on the firm's performance. Especially, two measures of the financial performance, namely the ROE and the Tobin's Q are considered. The results show that political experience is insignificant when considering the ROE while it has a negative impact on performance when it is measured by the Tobin's Q. Nevertheless, strategic experience, the presence of women and the frequency of meetings moderate this negative impact and increase performance.

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Section: Methodsmentioning

confidence: 99%

Section: Political Experiencementioning

confidence: 95%

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The composition of board of directors and performance: Impact of the political experience after the Tunisian revolution

Bouaine¹,

Hrichi²

2022

J. Account. Taxation

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“…A high level of heterogeneity was found in a study conducted by Sharif and Rashid (2014) where particular board composition variables were examined in the light of CSR quantity and quality. From agency theory perspective, Leong et al (2015) found an impact of board composition on firm's performance and reporting. Significant influence of different board attributes on CSR is evidenced by several studies (Huang, 2010).…”

Section: Literature Reviewmentioning

confidence: 99%

Board Composition Diversity and Corporate Social Reporting: An Empirical Study in Bangladesh Perspective

Chakraborty¹

2017

ijafr

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The study examines the relationship between diversity of firm's board composition and corporate social responsibility reporting of Bangladeshi listed commercial banking firms in the period from 2011 to 2015. Corporate social responsibility disclosure index indicates lower level of disclosure issues with extensive narrative discussion. The study finds significant positive relationship of board activity, board expertise with corporate social responsibility disclosure. It is also found that board ownership and CEO/ chairman duality are negatively associated with corporate social responsibility disclosure having negative impact on bank's corporate social performance and reporting. The study did not find any evidence related with independent board members to have significant positive impact on CSR disclosure of banking firms. The findings of the study are expected to have important implications for wider stakeholder society and will create further research scope in future.

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“…13, No. 5; 2018 26 the internal auditors (Leong, Paramasivam, Sundarasen, & Rajagopalan, 2015). The possibility of attributing the functions of the supervisory body to the board of statutory auditors has been stated; wherever the choice is to maintain a distinction between the two bodies, the college has to obtain the information relating to the organizational model adopted by the company from the supervisory body.…”

mentioning

confidence: 99%

The Internal Control Systems Integrated into the Various Profiles of Governance, Audit, Risk and Compliance

Rija¹,

Rubino²

2018

IJBM

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It is necessary to distinguish the internal controls from external ones: the former are the responsibility of the appropriate bodies and business functions belonging to the organization of the companies, while the latter are exercised by subjects who fall outside the company and the functional structure of the company (audit company, Consob, Bank of Italy, etc.). In recent decades there have been several scandals that have hit large enterprises, also Italian ones, which have increased interest in the issue of corporate governance and in the inefficiencies presented in internal corporation controls (Munroa & Stewart 2011). Enhancing the effectiveness of controls, in particular the internal ones, has become a need increasingly felt by international and national legislators. Internal controls are an essential tool to achieve business goals (operating constantly in terms of efficiency and effectiveness), and at the same time to avoid wastage of resources, to safeguard corporate assets, producing accounting information and reliable management, to observe the strategies, the policies and the corporate procedures and, especially, to ensure compliance with laws and regulations. in this work, it will discuss, in the italian context, the role of the board of directors and the board of statutory auditors within the (SCIGR) System of Internal Control and Risk Management (Jaggi, Allini, Manes Rossi, & Caldarelli, 2016). Moreover, the study moves the analysis to other corporate figures well determined and in constant evolution, including the head of internal audit, the activity of compliance, the supervisory body ex D.Lgs.231/2001 and the manager in charge of drafting corporate accounting documents.Keywords: corporate governance, auditing, compliance, risk The System of Internal Control and Risk Management: The Literature ReviewThe organizational structures of a company, of which the adequacy must be taken care of, evaluated and controlled by the organization bodies, are certainly part of the internal control system, understood as the set of directives, procedures and operational practices defined and adopted by the company to reach, through a proper process of identification, measurement, management and monitoring of the main risks, strategic, operational objectives, of reporting and of compliance. (Bertoli & Perotta, 2013). The internal controls in capital companies is one of the fundamental pillars of the structure of corporate governance in the legal systems of advanced industrial countries (Montalenti, 2015). The first models of integrated control were conceived in the American market in the early nineties, with the development of the COSO framework, which had the aim to support the companies in the evaluation and improvement of the system of internal controls. This model was subsequently updated in 2004 by a second framework in the field of Enterprise Risk Management, the so-called COSO Report II, which inserts the internal control system in the context of the more general process of risk management. Subsequentl...

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Board Composition and Companies’ Performance: Does Political Affiliation Moderate the Relationship?

Cited by 8 publications

References 133 publications

The composition of board of directors and performance: Impact of the political experience after the Tunisian revolution

The composition of board of directors and performance: Impact of the political experience after the Tunisian revolution

Board Composition Diversity and Corporate Social Reporting: An Empirical Study in Bangladesh Perspective

The Internal Control Systems Integrated into the Various Profiles of Governance, Audit, Risk and Compliance

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