Search Results (10)

This study aims to provide new evidence linking director tenure to corporate misconduct by analyzing the sample of publicly listed companies in China from 2009 to 2022. The findings reveal a significant positive correlation between director tenure and corporate misconduct, which is negatively moderated by director network position. Further analysis shows that both independent and non-independent directors’ tenure increases the likelihood of corporate misconduct, while the centrality of independent and non-independent director networks negatively moderates these corresponding effects. Moreover, external audit quality plays a mediating role in the relationship between director tenure and corporate misconduct. This study elucidates the boundary conditions and mechanisms of corporate misconduct, supporting the management friendliness hypothesis. It offers practical implications for regulators and policymakers to strengthen board governance and audit oversight, thereby contributing to the research on the prevention of corporate misconduct. The limitations of the study include its geographical focus on the Chinese market, suggesting that future research should explore cross-national differences. These findings provide valuable insights for preventing corporate misconduct and promoting corporate sustainability. Full article

Rarely do so many areas of society change as quickly as now. This study analyses the disruptive transformation of HR/qualification in small and medium-sized enterprises (SMEs) in the leading sectors of mechanical and plant engineering and the automotive industry in Lower Franconia, Bavaria. More precisely, this study is about the Mainfranken region. Administratively, it comprises the two independent cities of Würzburg and Schweinfurt as well as seven administrative districts. This paper researches the long-term transformation of the world of work in terms of skill shortages, procurement strategies and employee performance. This study is based on quantitative and qualitative findings from the funding project transform.RMF in the form of an overarching literature review, a commissioned online survey, stakeholder workshops to identify regional trends and self-conducted expert interviews. Unsurprisingly, the shortage of skilled labour is a serious problem for regional SMEs. Managing directors are aware of the need to act in the acquisition and retention of recruited specialists. This includes in-house benefits, New Work models and competitive acquisition strategies. We must overcome the biggest obstacle to transformation—a lack of qualified personnel—together, structurally. Based on our insights, we create recommendations for action and connecting the potential in the network. In the future, the aim will be to intensify cooperation between society, business, science and politics at the regional level—transform.RMF’s mission in the interests of its members. Full article

Green innovation is an important driver for the sustainable development of the real economy and the realization of a green transformation. Previous studies have paid less attention to the relationship between dividend payments and the persistence of green innovation and neglected the mechanism of knowledge management on the relationship between the two. Using Chinese listed non-financial companies from 2007 to 2022, this paper empirically investigates the effect and mechanism of dividend payment on corporate green innovation persistence based on two perspectives: principal–agent theory and incentive theory, using Tobit and negative binomial models. It was found that there is a non-linear inverted U-shaped relationship between dividend payments and the persistence of green innovation. Dividend payments influence the persistence of green innovation through agency costs and knowledge management capabilities. Both independent director networks and knowledge spillovers have a positive impact on the relationship between the two. Based on firms’ characteristics, the inverted U-shaped relationship between dividend payment and green innovation persistence is found to be more significant for non-state-owned firms and high-tech firms. Depending on the shareholder type, the inverted U-shaped curve between dividend payments for shareholding managers and green innovation persistence is the steepest. This study enriches the relevant literature on green innovations. In addition, it provides companies with a reference for formulating appropriate dividend policies, improving knowledge management capabilities, and improving the persistence of green innovation at a firm level. Full article

The face of corporate governance is changing as new technologies in the scope of artificial intelligence and data analytics are used to make better future-oriented decisions on performance management. This study attempts to provide empirical results to analyze when the impact of diversity on the board of directors is most evident through the multi-breaks model and artificial neural networks. The input data for the simulation includes 853 electronic companies listed on the Taiwan Stock Exchange from 2000 to 2021. The empirical results show that the higher the percentage of female board members, the more influential the company’s performance is, which is only evident when the company is in good business condition. By integrating ANNs with multi-breakpoint regression, this study introduces a novel approach to management research, providing a detailed perspective on how board diversity impacts firm performance across different conditions. The ANN results show that using the number of business board members for predicting Return on Assets yields the highest accuracy, with female board members following closely in predictive effectiveness. The presence of women on the board contributes positively to ROA, particularly when the company is experiencing favorable business conditions and high profitability. Our analysis also reveals that a higher percentage of male board members improves company performance, but this benefit is observed only in highly favorable and unfavorable business conditions. Conversely, a higher percentage of business members tends to affect performance during periods of high profitability negatively. The power of the board of directors and significant shareholders is positively correlated with performance, whereas CEO power positively impacts performance only when it is not extremely low. Independent board members generally do not have a significant effect on profits. Additionally, the company’s asset value positively influences performance primarily when the return on assets is high, and increased financial leverage is associated with reduced profitability. Full article

Corporate fraud poses a significant obstacle for sustainable business development. Drawing on social network analysis, this paper used data originated from Chinese-listed companies from 2009 to 2022 and found that directors’ network position significantly mitigates corporate fraud. Mechanism tests indicated that the quality of external auditors and internal control play a mediating role in this relationship. Further analysis showed that the network positions of independent directors, non-independent directors, and female directors individually inhibit the inclination of corporate fraud when considering various types of directors. Of note, the busy director hypothesis was not applicable in explaining the impact of directors’ network position on corporate fraud. This study provides a new approach to improving the sustainability of enterprises in newly emerging markets via the analysis of director networks. It is also beneficial to the research on director networks and corporate fraud in companies, offering insights for corporate governance and fraud prevention in companies and regulatory agencies. Full article

Green innovation is a potent driver of sustainability. Drawing on social network theory, this paper used data from Chinese listed companies from 2010 to 2020 as a sample and found that independent directors’ interlocking network position significantly enhanced corporate green innovation. Additionally, digital transformation positively moderated this impact, while environmental regulations exhibited a U-shaped influence on this relationship. Further analysis revealed that independent directors’ interlocking network position can enhance green innovation through leveraging information, resource advantages, and environmental responsibilities. The network position of companies with lower pollution levels and diligent independent directors notably amplified green innovation. This study clarifies the boundary conditions and mechanisms of corporate green innovation, offering new ideas and evidence for sustainability. Full article

Board gender diversity literature has demonstrated the positive influence of female leaders’ traits, such as openness to negotiation and collaboration, greater flexibility in approaching professional tasks, and improved quality of life, on the business development strategy and consequently on the performance of the companies. This study aims to investigate gender diversity’s link to business performance through bibliometric network analysis, highlighting the scientific literature dynamics through a scientific mapping of the existing knowledge. The temporal evolution of the gender diversity and business performance nexus in the scientific publications selected from Web of Science was examined for 1996–2021, investigating more than 2000 documents and focusing on author, keyword, paper, journal, and topic analysis. The statistical processing of publications was performed in R using Bibliometrix and Biblioshiny software, revealing the most influential and prolific authors and also the most representative journals. Results of the panoramic synopsis analysis revealed outstanding research trends, topics related to women and business performance including women directors, firm performance, issues of board diversity including size, structure, board gender diversity, and independence of members, and issues connected to leadership and gender with items such as gender equality, diversity management, women on boards, and culture. Full article

Gender diversity, one of the core streams of top management team (TMT) diversity research, poses a theoretical argument valuable for firms—whether gender diversity among board members can lead to improved performance. Increased research attention on the relationship between gender diversity and the financial and governance performance of firms has produced inconclusive results. This study shapes the gender diversity of corporate boards by defining six compounding elements, which is the major contributor to the literature of gender diversity. This study aims to provide a more complete and precise assessment of the impact of gender diversity on a firm’s performance and corporate governance performance from the Taiwanese experience. The evidence in Taiwan suggests that increased board gender diversity does not have a positive effect on financial and governance performance. Only the ratio of female independent directors is found to have a significantly positive association with a firm’s performance, supporting prior findings that directors with greater independence are better able to perform their monitoring function and thus contribute to performance. The results also demonstrate that female directors having concurrent posts is a critical factor in enhancing corporate governance performance. Female directors with prior experience as serving directors or supervisors in other companies can offer diverse opinions and network ties, thus contributing to improved cohesion and corporate governance. The findings of this research can contribute to both literature and practice in board gender diversity issues and can serve as an empirical basis for enterprises in optimizing their board composition. Full article

The purpose of this paper is to examine the association between activities related to corporate social responsibility (C81SR) and firm value, and whether social ties between outside and inside directors within the board (social ties) affect this association. We analyzed a sample of non-financial firms with fiscal year-end in December listed in the Korea Stock Exchange market for the period of 2012–2017, measuring the intensity of social ties based on region and school relations using the concept of density from social network theory. Using environment, social, and governance (ESG) scores from the Korea Corporate Governance Service to measure CSR activities, we find that, on average, firms can increase their value through CSR activities in Korea. In addition, in firms with strong social ties, the positive association between CSR activities and firm value is attenuated, indicating that boards with strong social ties are ineffective in monitoring CSR activities. Although the government has made great efforts to improve corporate governance with a focus on independence of outside directors, the results of our analysis indicate that there is room for firms to improve board independence substantively in a society where nepotism is widespread. Full article

The purpose of this study is to examine the impact of social relations among the board members on earnings management in Pakistani listed companies. Specifically, we have analyzed the social networks between CEO and outside board members. The modified Jones model has been used in this study to measure earnings management and we have captured social relations through SOCIAL (Social networking index). Our results suggest that firms with more connected boards show a positive relationship between board independence and earnings management. Further, we have shown that firms with CEO duality exhibit a higher association between social connections of the board and earnings management than firms with non-duality. Social relations among the board members undermine monitoring ability of outside directors and the impact becomes more severe in the presence of CEO duality. Full article