Corporate governance and turnaround: Evidence from Australia

Miglani, Seema; Ahmed, Kamran; Henry, Darren

doi:10.1177/0312896220902225

Cited by 15 publications

(20 citation statements)

References 102 publications

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“…Corporate social responsibility in general and sustainability reporting, in particular are the areas that are addressed and decided upon by the board of directors (Tibiletti et al, 2021). Thus, the bonds between governance structure and corporate social responsibility are of paramount importance in terms of determining the strategic progression of the firm (Andreu-Pinillos et al In the latest years, more and more studies appeared concentrating on various aspects of the composition of boards of directors aiming to ascertain the determinants of efficacy for sound business management (Miglani et al, 2020). The abovementioned studies have focused on board's diversity from various angles be it gender (Kao et al, 2020), race (Field et al, 2020), professional background (Chen et al, 2020), and personal characteristics (Arnaboldi et al, 2020) to name only a few.…”

Section: Introductionmentioning

confidence: 99%

Do sustainability reporting conduct and corporate governance attributes relate? Empirical evidence from China

Pasko

Zhang²,

Tuzhyk

et al. 2021

Problems and Perspectives in Management

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Adopting agency and stakeholders theories, this study aims to investigate the relationship between corporate governance attributes (board size, board independence, female directors, and CEO duality) and sustainability reporting conduct in China. The empirical analysis is based on a sample of 10,330 firm-year observations of Chinese listed companies over the period from 2015 to 2018. Data are supplied by WIND and CSMAR databases, whilst regression analysis is applied to test the hypotheses. Results indicate that board size and board independence were found to be positively associated with the sustainability reporting conduct, while female directors and CEO duality both do not have a significant effect on sustainability reporting conduct in the Chinese institutional settings. This paper advances on arguments of the agency and stakeholders theories with these findings. The larger and more independent board facilitates better monitoring of the managers, what leads to decision-making based on a more appreciation of stakeholders’ perspectives. The study is premised on the presence/absence of sustainability reporting, and it does not take into consideration the quality aspect, which can result in erroneous interpretation. The results should not be generalized as the sample was based on China’s companies for 2015–2018. This study has policy implications for managers and policymakers alike concerning designing board composition conducive to sustainability reporting conduct.

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Section: Introductionmentioning

confidence: 99%

Do sustainability reporting conduct and corporate governance attributes relate? Empirical evidence from China

Pasko

Zhang²,

Tuzhyk

et al. 2021

Problems and Perspectives in Management

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“…Importantly, the Australian setting is characterised by key differences relative to other countries including the United States and the United Kingdom which are the subject of most extant research in this area. Specifically, there is agreement that agency costs of listed firms are higher in Australia than in other western jurisdictions including the United States and the United Kingdom (Miglani et al, 2015(Miglani et al, , 2020. For example, while Australia has implemented strong shareholder protection legislation, Australian firms feature greater levels of ownership concentration among non-institutional blockholders who tend to be relatively passive in monitoring management (Khan et al, 2014;La Porta et al, 1999).…”

Section: Introductionmentioning

confidence: 99%

Managerial ownership, audit committees and non-audit services

Shan

Troshani

Loftus

2020

Australian Journal of Management

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We extend prior research on corporate governance and non-audit services (NAS) by distinguishing between the management entrenchment region of management ownership and regions in which the interests of management and shareholders converge. Management entrenchment and convergence-of-interests regions were estimated for our sample of 5198 Australian firm-years. NAS is negatively (positively) associated with management ownership in the convergence-of-interests (entrenchment) regions. However, using a sub-sample based on firms that have audit committees, we find the association between NAS and management ownership is confined to the entrenchment region, while audit committee strength is negatively associated with NAS fees across all management ownership regions. JEL Classification: M42, M48

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“…Furthermore, several papers have revealed the impact of corporate governance indicators (such as composition and the mandated duration of the main governance -and control -bodies, changes in majority shareholders; etc.) on default probability (Elloumi & Gueyi, 2001;Switzer et al, 2018;Lin et al, 2020;Fernando et al, 2020) and on the turnaround outcome (Miglani et al, 2020). However, previous studies have not yet thoroughly investigated the impact of governance variables in predicting the default of a company using new machine learning models, like Random Forest.…”

Section: Literature Reviewmentioning

confidence: 99%

Corporate governance and financial distress: lessons learned from an unconventional approach

et al. 2022

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Using a and a unique set of Italian non-listed Unlikely to Pay (UTP) positions, that consist in the phase that precedes the insolvency but where it is still possible for the company to succeed in restructuring, this paper aims to analyze the relationships between corporate governance characteristics and financial distress status. We compare the performance of corporate governance variables in predicting corporate defaults, using both the Logit and Random Forest models, which previous researchers have deemed to be the most efficient machine learning techniques. Our results show that the use of corporate governance variables – especially with regards to CEO renewal and stability in the composition of the board of directors – increases the accuracy of the Random Forest technique and influences the success of the turnaround process. This paper also confirms the Random Forest technique’s ability to significantly outperform the Logit model in terms of accuracy.

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Corporate governance and turnaround: Evidence from Australia

Cited by 15 publications

References 102 publications

Do sustainability reporting conduct and corporate governance attributes relate? Empirical evidence from China

Do sustainability reporting conduct and corporate governance attributes relate? Empirical evidence from China

Managerial ownership, audit committees and non-audit services

Corporate governance and financial distress: lessons learned from an unconventional approach

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