Public–private versus public ownership and economic performance: evidence from Italian local utilities

In the last century local public services have often been reformed. The declared outcome of the most recent reforms is the privatization and liberalization of the sector. However, in almost all European countries, the privatization of local public services has been only partial, because local governments have sought to privatise a minority stake in the public owned-companies, while remaining committed to retaining public ownership and control over the longer-term as a means of protecting public interest. The phenomenon of mixed public–private companies emerged as a result of this process. In this context, the article investigates whether differences in financial performance can be found between public–private companies and totally public-owned enterprises. Empirical quantitative studies on this particular topic are quite lacking at the moment. The present study tries to fill this gap through an empirical analysis on a sample of 623 Italian local utilities. The results of the study suggest that there are differences in economic performance between local utility companies with varying degrees of public ownership. In particular, public–private utilities show better economic performance than publicly owned firms, especially in terms of profitability. The results also seem to suggest that the majority private ownership is not necessary for better performance. In other terms, public–private partnership—and not private majority ownership—seems to be the key point for good performance.     

Effects of Executive Characteristics and Venture Capital Involvement on Board Composition and Share Ownership in IPO Firms*

Combining the agency perspective, resource‐based view and upper echelon research, this paper examines factors affecting board selection and share ownership in initial public offerings (IPOs). In line with socio‐cognitive and behavioural research, it shows that board independence, cognitive capacity and the incentives of non‐executive directors are negatively associated with the experience and power of executive directors, and that large‐block share ownership is positively associated with the intensity and diversity of non‐executives' experience. However, the retained equity by venture capitalists negatively affects board independence and non‐executive directors' interests. The paper suggests a number of avenues for a future contextual analysis of the board development process in ‘threshold’ firms.     

基于机构投资者的董事会效率变化研究

利用面板数据模型研究了机构投资者对董事会效率的影响。研究结果发现,机构持股比例与当期的董事会规模、董事会独立性、领导权机构、董事会激励机制和董事会会议次数无显著相关关系,但与后期的董事会独立性和董事会会议次数之间存在显著相关性,从而证实了机构投资者对董事会效率的提高有积极作用,这对目前我国监管机构提倡大力培育机构投资者的政策有一定的参考意义。     

International corporate social responsibility and post-entry performance of developing market INVs: The moderating role of corporate governance mechanisms

Building on the stakeholder, agency, and resource dependence theories; this paper investigates the role of international corporate social responsibility (CSR) for the post-entry performance of developing market international new ventures (INVs) in the presence of corporate governance mechanisms to overcome their agency and environmental problems. We test and validate the conceptual model using survey data collected from 110 INVs operating in the developing market of Pakistan. Our results show that international CSR promotes the post-entry performance of developing market INVs. Further, we found that this association is moderated by corporate governance mechanisms of ownership, board independence, and returnee board members. Specifically, the relationship between international CSR and post-entry performance is weaker when ownership is concentrated but stronger when outsider and returnee board members are present in developing market INVs. The findings of this study have important theoretical and practical implications for INVs' social strategies and international performance contingent upon corporate governance.     

Board attributes and shareholder wealth in mergers and acquisitions: a survey of the literature

The question of whether a “good” corporate board structure can optimize performance and minimize conflicts between managers and shareholders has been widely debated. Because mergers and acquisitions represent major managerial investment decisions that are subject to board scrutiny, the effectiveness of a board’s structure is especially visible in the context of corporate acquisitions. With that in mind, in this paper, we examine the abundant literature in the fields of strategic management, economics, and finance in order to identify which board attributes contribute to the ability of corporate boards to create value through mergers and acquisitions. In particular, we discuss the impact of four board attributes: (1) board independence, (2) board size and director-specific attributes, (3) board ownership and compensation, (4) multiple directorships. As a result of our analysis, we conclude that the impact of board attributes on shareholder wealth in mergers and acquisitions is specific to each firm. Therefore, board regulations that do not reflect a firm’s specific needs may in fact hinder the creation of a board that is capable of responding effectively to the firm’s unique needs and circumstances.     

What Makes Better Boards? A Closer Look at Diversity and Ownership

This study investigates the joint effect of corporate ownership and board of directors' diversity configurations on the success of strategic merger and acquisition (M&A) decisions. Board diversity is defined as the extent to which its demographic diversity as measured by the culture, nationality, gender and experience of its directors complements its statutory diversity. A theoretical framework linking ownership, board diversity and M&A strategic decision making is proposed and tested. Based on a sample of 289 M&A decisions undertaken by Canadian firms over the period 2000–2007, demographic diversity is found to have a clear and non‐linear effect on M&A performance while statutory diversity is of limited influence. Ownership is found to influence the effect of diversity, making the relation finer and more precise. This has practical implications. First, statutory diversity is not sufficient for well‐performing boards. Also, ownership is an important factor. The most advocated board diversity aimed at insuring the board's independence is not valid across all ownership configurations. From a public policy perspective, results provide support for the principles‐based approach in governance. Governance regimes should encourage the search for a balance between board diversity and the need for cohesion that best serves the firm's purpose and obligations.     

Corporate Governance and Tobin's Q as a Measure of Organizational Performance

This empirical study examines the relationship between corporate governance and organizational performance (OP), measured using Tobin's Q (TQ) in the context of an emerging economy for which, as yet, only a handful of studies have been conducted. We employ a system generalized method of moments approach controlling for endogeneity and test it on a newly created dataset comprising 324 listed firms in Pakistan. We find that board size, number of board committees and ownership concentration are positively linked with high TQ ratio, whilst board independence and CEO duality display a negative relationship. In terms of moderating effects, we find that ownership concentration negatively moderates the relationship between board independence and OP, as well as that of CEO duality and OP. The relationship between the number of board committees and OP is positively moderated by ownership concentration. Our findings contribute towards a better articulation and application of a more concrete measure of OP ? that of the TQ ratio ? whilst, at the same time, testing the board composition–performance relationship in the context of an upcoming and increasingly important emerging market. Wider applicability of results and policy implications are discussed.     

Expectations and the performance of governance functions between a board,management and other stakeholders: the case of Robotdalen

Previous research has called for an enhanced understanding of the dynamic and interactional aspects of board work in public sector governance. Using a longitudinal case study of Robotdalen, this paper attempts to meet this call through a processual and qualitative study of board work in public organisations. The aim of the paper is to enhance our understanding of the human side of governance and the interactions between a board, the management in the governed organisation and other stakeholders. We do this by addressing the theoretical concept of an expectations gap. The results demonstrated how funding regimes influence governance functions, structures and practices at the organisational level, and how internal actors such as managers also carry out governance functions. Moreover, the results show how an expectations gap shifts and changes over time. In this way we have contributed a more nuanced theoretical understanding of how the governance function is co-produced and the importance of understanding the expectations gap to further understand the dynamics of public sector board work.     

When Municipality is Partner in Business: A Mapping of Italian Experience

Municipal ownership of companies in Italy is a common phenomenon that underlines the attitude of local bodies towards the supply of particular local services, frequently with a correlation of public and private interests. This article addresses key features of the companies involved. The focus is on their location, legal status, spread of ownership, work, governance and economic performance, as a lead into more comprehensive future research on how municipal ownership can affect company performance and markets in different service areas and territories.     

What do board members in art organizations do? A grounded theory approach

This paper explores the characteristics and activities of board members in art organizations. It describes two case studies within international artists’ residencies in France and Germany. Adopting a grounded theory approach, our study identifies the different characteristics of board members such as friendship, competence and diversity, together with board activities such as controlling, advising, legitimating, helping, exchanging and deciding. The contributions of this research are twofold. First, contrary to most governance literature, the independence of board members and board monitoring roles do not seem to be important issues for the two art organizations involved. Instead, friendship and networking appear to be key factors for the board, helping the organizations to be successful by giving them more chance to survive and grow. Second, as specific board members in the two cases studied, executive directors play a continual role of “governance entrepreneurs,” building and managing various board-related organs to counterbalance the influence of fund providers. In this way, executive directors attempt to satisfy their predominant public fund providers and to help the artists’ residencies survive.     

Does the presence of independent and female directors impact firm performance? A multi-country study of board diversity

This study empirically analyzes whether gender diversity enhances boards of directors’ independence and efficiency. Using data from 3,876 public firms in 47 countries and controlling for a wide set of corporate governance mechanisms, we find that firms with more female directors have higher firm performance by market (Tobin’s Q) and accounting (return on assets) measures. The results also suggest that external independent directors do not contribute to firm performance unless the board is gender diversified. These results hold with respect to different estimation models and robustness tests. Overall, our findings provide evidence that the female directors enhance boards of directors’ effectiveness. Finally, we find that firms that are concerned with board independence, and that firms in more complex environments are more likely to have gender-balanced boards.     

Do ownership and size affect the performance of water utilities? Evidence from Estonian municipalities

Concerns regarding rising water and sewerage prices have generated a renewed interest in measuring and assessing water utility performance. An efficiency analysis can serve as a basis for price setting decisions. This article examines the influence of ownership structure and corporate size on the efficiency of Estonian water companies, and assesses the empirical efficiency gaps through the lens of corporate governance and natural monopoly theories. To assess efficiency and the influence of ownership and corporate size on efficiency, we use a Data Envelopment Analysis and truncated regression with maximum likelihood estimation as well as an ANOVA test. The study sample consists of 43 water utilities, serving more than 68% of the Estonian population. One main finding of the study reveals that ownership structure does not affect the efficiency of Estonian water utilities, while efficiency does increase with corporate size: large water utilities outperform small utilities. An additional conclusion is that the Estonian water sector is too fragmented.     

Corporate governance and credit rating in Islamic banks: Does Shariah governance matters?

We investigate whether Islamic banks with strong corporate governance benefit from higher credit ratings relative to Islamic banks with weaker governance and whether Shariah governance can affect the credit ratings of Islamic banks or not. We document, after controlling for Islamic bank-specific risk characteristics, that credit ratings are negatively associated with the number of blockholders, CEO power, the supervisory role of the Shariah board and investment deposits; and positively associated with share listing ownership, board independence, women directors, board directors expertise and Shariah board expertise. As well as, credit rating is higher for Southeast Asian Islamic banks and weaker for GCC Islamic banks.     

公司治理机制互动的实证研究

解决公司中的委托代理问题和有效监督管理层需要各种治理机制共同发挥作用.利用2002年～2005年中国上市公司的平衡面板数据,研究大股东股权竞争、董事会构成、经营者股权激励和监事会行为4种公司治理机制的互动关系.实证结果显示,大股东股权竞争与董事会构成之间存在替代效应,大股东股权竞争与经营者股权激励、董事会构成与监事会行为之间存在互补效应,这表明中国上市公司的治理机制关系呈现出复杂的特性.这一研究结论为继续深化中国的公司治理改革提供了经验证据,提高公司治理水平需要理顺各种公司治理机制的关系.实现治理机制的协同发展.     

中小商业银行公司治理机制与经营绩效关系的实证分析

理论和实证研究证明,良好的公司治理对金融体系稳健运行有十分重要的作用.商业银行公司治理的研究和实践既是银行业改革的迫切要求,也是银行业改革的核心内容之一.本文用36家商业银行2005年的截面数据,对股权结构、董事会、监事会和高管人员薪酬激励等四个治理机制与银行绩效之间的关系进行了实证研究.结果表明,国有与非国有控股商业银行绩效不存在显著差异,第一大股东对银行绩效的影响并不显著,但外部大股东能显著地提高银行绩效.董事会与监事会规模与银行绩效正相关,但独立性难以得到保证.此外,高管人员薪酬激励不能改善银行绩效.     

Symbolic Management and the Glass Cliff: Evidence from the Boardroom Careers of Female and Male Directors

This paper uses archival board data to demonstrate that women who take positions as directors of UK companies have shorter tenures than their male counterparts. The authors show that female directors face a much higher risk of dismissal as they approach nine years of service on the board, when their long service deprives them of the all‐important classification as ‘independent’. At this point, their position on the board becomes precarious. Male directors do not suffer the same increase in boardroom exit. This gender‐specific difference is clearly shown to be linked to the independence status. It is argued that these observations are consistent with the notion that female directors are being used in the symbolic management of corporate governance and that, at nine years, when the cloak of independence disappears, women directors are then exposed to the biases that arise from role congruity issues.     

所有权结构与影响因素分析

本文以821家上市公司1999-2001年的观察值为样本,研究分析了一些决策公司所有权结构的要素,即公司价值最大化规模、潜在控制和系统管制,并引入公司的特殊风险等作为与不稳定考核的因素.本文的研究发现公司所有权结构的变化,始终以与价值最大化相一致的方式进行,受管制公司所有权的平均集中程度比其他公司更重要,公用事业类公司的所有权结构受管制的影响比金融业更大.本文的研究为国有股减持和股权多元化提供了经验证据.     

上市公司治理:理论与现实的距离——基于1250份上市公司“自查报告和整改计划”的分析

本文根据1250家上市公司所公布的"自查报告和整改计划",重点从大股东、董事会/监事会、经理层以及投资者法律保护等四个方面对"自查报告和整改计划"的调查问题进行全面归纳、整理、分解和剖析,通过统计分析和理论文献对比,综合反映出目前我国上市公司治理现状和问题.调查分析结果表明,虽然我国目前已基本上建立了一整套与上市公司治理相关的法律法规,上市公司在大股东、董事会、经理层和投资者保护等方面的行为得到了一定的规范约束.但是,我国上市公司治理仍然处在不断完善过程中,如何强化大股东的信托义务和法律责任,从根本上解决大股东侵占中小股东利益的问题、保证董事会制度的独立性和有效性、培育经理人市场,积极推进股权激励机制、落实投资者法律保护制度等成为今后完善我国上市公司治理的重要任务.     

Was tun Lektoren?

What is the work of editors? Counselling of a ?service in background“The work of editors as employees in publishing houses or as free lancers is a ?service in background“ and hence it is less well-known in comparison with other media professionals. Nevertheless, editors have an important role as intermediary between authors and the reading public. The author delineates the profession of editors and the technical aspects of their work and explains some typical conflicts which may be relevant to a coaching of editors.