Governance of director and executive remuneration in leading firms of Australia

Riaz, Zahid; Kirkbride, James

doi:10.18559/ebr.2017.4.5

Cited by 4 publications

(4 citation statements)

References 72 publications

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“…The dependent variable is the extent of disclosed EDP information in the annual financial statements of SOEs for each year. As in other studies in the private and non‐profit sector (Clarkson et al, 2006; Laksmana, 2008; Riaz & Kirkbride, 2017), this study measures the extent of EDP disclosure using a score. The score is based on the requirements formulated in German Commercial Law and is supplemented by recommendations given by the German Corporate Governance Code for listed firms.…”

Section: Methodsmentioning

confidence: 99%

Understanding self‐regulation for political control and policymaking: Effects of governance mechanisms on accountability

Papenfuß

Schmidt

2020

Governance

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Self‐regulation has become a crucial governance mechanism for policymaking and political control. Although governments have increasingly implemented self‐regulation, its effects are under‐researched. International policymakers highlight the role of self‐regulation in extending accountability and political control of state‐owned enterprises (SOEs). A key accountability area—attracting widespread public interest—is the level of executive directors' pay. Drawing on agency theory, this study analyzes 2,112 pay disclosures of 700 executive directors employed in 289 German SOEs between 2014 and 2017. The results indicate that both self‐regulation and its quality have significant effects on behavior control. Further, the complementary adoption of self‐regulation and law has the strongest effects on principals' and agents' behavior and awareness. For the debate on board composition, it is important to note that a higher proportion of politicians as directors on SOE boards weakens the effects of self‐regulation. Overall, this study enhances the theoretical understanding of self‐regulation and provides important policy implications.

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Section: Methodsmentioning

confidence: 99%

Understanding self‐regulation for political control and policymaking: Effects of governance mechanisms on accountability

Papenfuß

Schmidt

2020

Governance

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“…This responsibility is performed by persons who are collectively chosen to visualize and influence the performance from the corporate level (Caperchione et al, 2017). By implication, the board is responsible for drawing the strategic roadmap for a given strategic period, based on the knowledge, skill and expertise brought by its members (Riaz and Kirkbride, 2017;Grillo-Espinoza et al, 2018). It is mandatory to create a conducive internal environment, demonstrate commitment and operate with an organisational culture that is acceptable and understood by the entire organisation.…”

Section: Leadershipmentioning

confidence: 99%

Corporate Governance Issues in the Public Sector: Board Perspective and Peculiarities

Lartey

Kong²,

Afriyie³

et al. 2020

BJO&PM

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Goal: The objective of the paper is to extend the discussions on corporate governance to the public sector and examine good governance from a Ghanaian institutional context. Design / Methodology / Approach: Literature is based on relevant theoretical concepts and seven explanatory variables of corporate governance. Primary data was abstained through structured questionnaires administered to public servants from the Ministries, Departments and Agencies-MDA's in Accra. Ordinary Least Square multiple regression was employed to analyze a total valid sample of 568. The findings represent the opinions of board of directors, internal auditors, senior management and employees. Results: The empirical result shows that audit committees, leadership, board effectiveness, accountability and directors' qualification are strong determinants of good governance in public organizations. However, board size has no impact on good governance when board independence is negative. There is evidence that international corporate governance principles are reasonably visible without any significant deviations. Limitation of the investigation: The study is empirically limited with the absence of key variables such as corruption, ethnicity and tribal politics in public organizations in Ghana. These are major factors associated with institutional governance in developing countries. Practical implications: The study observed a negative relationship between board independence and good governance attributed to lack of board diversity. The study implies that gender balanced boards composed of higher ratio of female directors could enhance decision-making and guarantee board effectiveness. Originality / Value: The study emphasizes that public and private organizations share almost similar governance indicators, considering the model estimation. There is evidence that corporate governance is gaining popularity in the public sector, a discussion that is often limited to the private sector. The study contributes to the limited existing findings on the subject from a Ghanaian institutional context. Finally, the results validate many empirical opinions about the negative relationship between good governance and board size from different institutional environments.

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“…It sounds judgemental, but Sykes’ observation that “corporate collapses tended to occur in waves […] corporate scandals were not the result of economic cycles as generally assumed, but were the outcome of the ‘greed and folly of the people who ran them’” seems to have some truth in it. In the USA, there was a spate of collapses such as Enron, WorldCom and Lehman Brothers, whereas in Australia, the Health International Holdings (HIH) and One.Tel corporate scandals occurred, together with a host of other business collapses, in the same year (Riaz and Kirkbride, 2017).…”

Section: Australiamentioning

confidence: 99%

“…The findings further revealed what Riaz and Kirkbride call “excessive corporate lavishness”, including immense bonuses for executives. Incomplete disclosure of financial information between management and the corporate board, including details of remunerations and bonuses, were also revealed to be major factors in the fall of HIH (Riaz and Kirkbride, 2017, pp. 66-68).…”

Section: Australiamentioning

confidence: 99%

Corporate governance: on the crossroads of meta-regulation and social responsibility

Al-Tawil

Younies

2020

JFC

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Purpose The purpose of this paper is to discuss incongruities in the corporate entity over the matter of agency. In lieu of the traditional notion of moral agency theory, the stakeholder model offers congruent grounding to corporate governance. Socially irresponsible or unethical corporate activities are perceived to increase expenses, diminish shareholder value and tarnish business reputations. In contrast, socially responsible corporate practices contribute to positive attitudes to the company and contribute to the creation of competitive advantage. Design/methodology/approach This paper follows the ongoing evolution of the regulatory changes instituted after the scandalous corporate fiascos of the present century, such as those of Enron and WorldCom in the USA, Polly Peck in the UK, HIH Insurance and One.Tel in Australia, and Siemens in Germany, inter alia. The exposition also touches on the regulatory metamorphosis of corporate governance in its convergence towards “meta-regulation” with corporate social responsibility at the core. Findings While meta-regulation has so far worked in many countries, caution is expressed over the perils of over-reliance on a meta-regulatory approach. Industries or market sectors should also attempt to operate from the start within the confines of self-regulation and government regulation. Market sectors and industries need to find the framework of regulation that is best suited to their operations. Originality/value The paper concludes by discussing the observed challenges and implications of such convergence, as well as future directions for law practitioners, academics and researchers in the realm of corporate conduct.

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Governance of director and executive remuneration in leading firms of Australia

Cited by 4 publications

References 72 publications

Understanding self‐regulation for political control and policymaking: Effects of governance mechanisms on accountability

Understanding self‐regulation for political control and policymaking: Effects of governance mechanisms on accountability

Corporate Governance Issues in the Public Sector: Board Perspective and Peculiarities

Corporate governance: on the crossroads of meta-regulation and social responsibility

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