Board diversity and corporate innovation: New evidence from the Canadian context

Abtahi, Zahra; Chkir, Imed; Benkraiem, Ramzi

doi:10.1016/j.frl.2023.103826

Cited by 8 publications

(2 citation statements)

References 37 publications

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“…There are limited studies that have examined the impact of board education on earnings management practices. Nevertheless, prior studies document how board education affects various of corporate operations including corporate innovation (Abtahi et al, 2023), firm performance (Alalwani & Al Hadi, 2021;Boshnak et al, 2023;Hatane et al, 2023), and corporate social responsibility (Katmon et al, 2019). In general, board director education significantly influences earnings management practices within companies by enhancing financial literacy, promoting ethical oversight, enabling effective monitoring, fostering professional scepticism, and facilitating strategic decision-making.…”

Section: Hypotheses Developmentmentioning

confidence: 99%

Corporate Governance And Real Earnings Management: Evidence From Indonesian Fraudulent And Non-Fraudulent Listed Companies

2024

APMAJ

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Corporate governance mechanisms provide a framework to mitigate managerial misbehaviour, including the manipulation of earnings. Despite their intended functions, the persistence of earnings management practices remains, ultimately contributing to instances of financial reporting fraud. Thus, this study aimed to examine how corporate governance attributes may affect the occurrence of earnings management, in particular real earnings management among Indonesian fraudulent and non-fraudulent listed companies. Using 192 firm-year observations, in the span of 2012-2021, the findings showed that educational background of the board of commissioners and board of directors significantly affected real earnings management practices. Nevertheless, this study failed to find a significant relationship between real earnings management and other corporate governance attributes, including changes in the board of commissioners (BOC), changes in the board of directors (BOD), the independence of BOC, the size of the audit committee, and the occurrence of auditor change. The findings of this study provide preliminary evidence on the importance of board education to influence real earnings management practices.

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Section: Hypotheses Developmentmentioning

confidence: 99%

Corporate Governance And Real Earnings Management: Evidence From Indonesian Fraudulent And Non-Fraudulent Listed Companies

2024

APMAJ

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“…On the one hand, directors carry out decision-making powers on behalf of shareholders under major shareholder's appointment, charting the future strategic goals and developmental direction of the corporation. The quality of innovation, critical to the enterprise's fate and development prospects, presents a key strategic focus for directors (Abtahi et al, 2023;Konadu et al, 2022). On the other hand, through constructing a "motivating-limiting" dual governance mechanism, directors can influence, and to an extent, guide the decision-making inclinations and choices of managers, thereby sparking the creative vitality of managers (Fama and Jensen, 1983;Sun et al, 2023;Xia et al, 2022).…”

Section: Introductionmentioning

confidence: 99%

Board's informal hierarchy: influences on enterprise innovation quality

Meng,

Li,

Wang

2023

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PurposeUtilizing the expectation states theory in sociology, this study probes into the influence of the board's informal hierarchy on the quality of enterprise innovation, originating from the perspective of internal directorial interactions, while analyzing the boundary effects exhibited by the nature of property rights and the intensity of geo-culture.Design/methodology/approachThe study selects China's A-share listed companies from 2008 to 2021 as the research sample, employing the Tobit regression analysis method to scrutinize the hypotheses presented in the text.FindingsThe regression results demonstrate a positive correlation between the board's informal hierarchy and the enterprise innovation quality (EIQ). Upon introducing variables specific to property rights and geographical culture, the authors found that in comparison to non-state-owned enterprises (non-SOEs), the influence of the board's informal hierarchy on the quality of corporate innovation is diminished in SOEs. Conversely, the intensity of geo-culture across Chinese provinces enhances their mutual positive influence. In the additional analysis, the authors also found that the elevation of corporate risk tolerance is a significant pathway for the positive effect of the board's informal hierarchy on EIQ. Moreover, this positive influence is more profound in high-tech enterprises, businesses implementing equity incentive plans and companies that have subscribed to director and officer liability insurance.Originality/valueThe findings not only deepen the understanding of how the board's internal status characteristics influence corporate decision-making but also enrich the application scope of expectation states theory. Furthermore, this study offers valuable guidance for optimizing innovation decision-making by adjusting the personnel structures of corporate boards.

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