The effects of Shariah board composition on Islamic equity indices' performance

This paper examines how independent and institutional women directors on boards affect corporate social responsibility (hereafter CSR) reporting. Most of the previous empirical evidence has shown a linear association between female directors and CSR disclosure, but to the best of our knowledge, no research has investigated the individual effect of independent and institutional female directors on CSR reporting. Therefore, the analysis of how the disclosure of CSR information is affected by independent and institutional women directors in a separate way merits our attention. Thus, we posit that there is a nonlinear association, concretely quadratic, between independent and institutional female directors on boards and CSR reporting. Our results demonstrate that, in line with the monitoring hypothesis, as the presence of independent and institutional women directors on boards increases, the CSR disclosure improves, but when their presence on boards reaches a tipping point (20.47% and 13.32%, respectively), CSR reporting decreases, which is consistent with the collusion hypothesis. This research contributes to the existing literature on the relationship between board gender diversity and CSR disclosure by suggesting that board structures formed by institutional and independent female directors have an effect on CSR reporting. Hence, female directors play a relevant role on boards since they may influence the CSR disclosure.

Section: Theoretical Frameworkmentioning

confidence: 99%

Commitment of independent and institutional women directors to corporate social responsibility reporting

Pucheta‐Martínez

Bel‐Oms

Olcina‐Sempere

2018

“…In addition, under the principles of an IWE, employees display a high sense of responsibility, transparency, and competition (Ali & Al‐Owaihan, ) which encourages them to achieve the desired objectives through consistent effort and to complete their job tasks in a timely manner (Vogelgesang, Leroy, & Avolio, ; Hassan, Miglietta, Paltrinieri, & Floreani, ). Further, Islam prohibits dishonesty and wrong (deviant) behavior in all aspects of business operations.…”

Section: Theoretical Background and Hypothesis Developmentmentioning

confidence: 99%

Impact of abusive supervision on deviant work behavior: The role of Islamic work ethic

Javed¹,

Fatima

Yasin³

et al. 2018

In this article, we examined the relationship between abusive supervision and deviant workplace behavior and the moderating role of an Islamic Work Ethic. Three hundred and thirty‐six employees in different organizations (specializing in software development, medicine, law enforcement, telecommunication, pharmaceutics, and banking) across Pakistan completed our questionnaire. The results revealed that abusive supervision was positively related to deviant workplace behavior. Moreover, the moderation of an Islamic Work Ethic on the relationship between abusive supervision and deviant work behavior was confirmed. The study contributed in many ways. It expanded literature by revealing a weaker relationship between abusive supervision and deviant behavior when Islamic Work Ethic (IWE) was high. It also tested the conservation of resources theory by providing a plausible reasoning of the role of IWE in employee motivation. By integrating IWE as a resource in the workplace, practitioners would learn that the proper use of resources would produce satisfied workers who would not indulge in deviant workplace behaviors.

“…These governance recommendations increased the demand of outside directors but at the same time reduced the supply of directors due to a higher workload and risk (Linck, Netter, & Yang, 2008). Consequently, some profiles of directors are in greater demand, leading to an increase in the phenomenon of multiple directorships (Hassan, Miglietta, Platrinieri, & Floreani, 2018). This observation raises the question of whether directorship appointments to multiple boards are beneficial or detrimental for board effectiveness and firm performance.…”

Section: Introductionmentioning

confidence: 99%

Multiple directorships in emerging countries: Fiduciary duties at stake?

Latif

Voordeckers

Lambrechts

et al. 2020

This study investigates the effect of multiple directorships on firm performance, using a database of non-financial firms listed on the Pakistan stock exchange. Prior literature provides inconsistent evidence on the relationship between multiple directorships and firm performance in an emerging country context, which may be the result of overlooking both the large differences in institutional environments among emerging countries and the dynamic endogenous relationships between board variables and firm performance. We aim to contribute to this academic debate by focusing on directorship appointments to multiple boards in a weak institutional context.Corporate governance practices, such as boards with outside directors exercising their fiduciary duties, are crucial for effective governance in weak institutional environments. However, serving in multiple directorships is expected to compromise the execution of director duties. Using a dynamic system Generalized Method of Moments model, our findings show, indeed, a negative effect of multiple directorships on firm performance in a weak institutional environment. Building on the premise that corporate governance is conditional in nature, we also tested the moderating influence of firm size on this relationship, but we did not find supporting evidence in a dynamic model setting. Our results have important practical implications for policy makers as well as firms.