Corporate governance and board accounts: exploring a neglected interface between boards of directors and management

There is an absence of research about what information boards of directors have access to and how they use that information. The purpose of this paper is to explore and theorize about the content and use of information to boards of directors. The paper introduces and elaborates on the concept of ‘board accounts’, which is defined as the information supplied to boards of directors by top-management. The paper locates the board accounts in the Swedish institutional setting and demonstrates how the concept can be operationalized in an empirical setting. On the basis of a unique material of archived board records in a Swedish company, the paper explores the board accounts over a period of 10 years (1989–1998). It is found that while use of the board accounts in the case study company changes considerably over time, the content of the board accounts remains largely unchanged. This raises questions about where and when directors receive information, the reliability of the information in the board accounts, and recent attempts to integrate corporate governance and management accounting (CIMA, Performance reporting to boards: a guide to good practice, 2003; CIMA strategic scorecard: boards engaging in strategy, 2005; Seal, Management Accounting Research 17(4):389–408, 2006). Finally, the paper discusses the merits of historical archive-based approaches in this field and possibilities for future research.

Reviewing performance: an analysis of the structure and functions of performance management reviews

This article proposes an analytical framework for conceptualising performance management reviews (PMRs). Drawing on multiple literatures, the article applies Pettigrew et al.'s (Pettigrew, A., Whipp R., and Rosenfield R., 1989. Competitiveness and the management of strategic change processes. In: A. Francis, and P.K.M. Tharakan, eds. The competitiveness of European industry: country policies and company strategies. London: Routledge) framework to develop our understanding of the context, process and content of PMR. The process elements of PMRs are the levers for managerial intervention as they determine the immediate outcome of PMR. They accomplish this task by acting on the content elements, transforming the subject of PMR into specific outcomes. The scope of the intervention, however, is constrained by factors in the organisation's context. This framework sheds light on various functions of PMRs, most notably strategy implementation.     

Quality management and performance: a comparison between the UK and Turkey

Purpose: The aim of this article is to detail the correlation between quality management, specifically its tools and critical success factors, and performance in terms of primary operational and secondary organisational performances.

Design/methodology/approach: Survey data from the UK and Turkey were analysed using exploratory factor analyses, structural equation modelling and regression analysis.

Findings: The results show that quality management has a significant and positive impact on both primary and secondary performances; that Turkish and UK attitudes to quality management are similar; and that quality management is widely practised in manufacturing and service industries but has more statistical emphasis in the manufacturing sector. The main challenge for making quality management practice more effective lies in an appropriate balanced use of the different sorts of the tools and critical success factors.

Originality/value: This study takes a novel approach by: (i) exploring the relationship between primary operational and secondary organisational performances, (ii) using service and manufacturing data and (iii) making a cross-country comparison between the UK (a developed economy) and Turkey (a developing economy).

Limitations: Detailed contrast provided between only two countries.     

A cyclical view of the relationship between corporate governance and strategic management

The vast majority of research on the relationship between corporate governance and strategic management focuses on the impact of corporate governance on strategic management. In this article we propose a cyclical model, highlighting that strategic decisions can also affect corporate governance through shaping firm ownership structure. We discuss the impacts of strategic decisions on firm ownership structure and corporate governance in the contexts of publicly traded firms, private firms, and the privatization of state-owned enterprises. We hope that our cyclical model can promote researchers to develop a more complete view about the relationships between strategic management, ownership structure, and corporate governance.     

Enterprise governance and value-based management: a theoretical contingency framework

In an attempt to provide a better understanding of the tension between conformance and performance in the governance context, this study develops a conceptual model for enterprise governance (EG) from the contingency theory perspective. The study argues that the value-based management (VBM) approach can achieve the objectives of EG, keeping the right balance between conformance and performance. Therefore, the study investigates the implications of fit between four contingency factors and VBM on organisational performance using corporate governance (CG) mechanisms and corporate entrepreneurship as mediating factors. The study contributes to the literature by linking a performance management system, i.e. VBM, to the EG framework aiming to bridge the gap between management accounting, CG, and entrepreneurship disciplines.     

The relation between board size and firm performance in firms with a history of poor operating performance

Focusing on a sample of smaller firms with a history of poor operating performance, this paper posits that increases in board size will be associated with better share price performance. Notably, board sizes studied here are, on average, much smaller than those typically studied by prior research. Mostly consistent with predictions, board size is found to be positively correlated with firm value in between-firms tests, and changes in board size are found to be positively associated with annual stock returns. Last, event study results suggest that the market responds favorably to board size increases and unfavorably to large board size decreases. Together, these results identify a setting in which larger board sizes appear to be positively related to shareholder value.     

Internationalization of family SMEs: the impact of ownership, governance, and top management team

Family small and medium-sized enterprises (SMEs) internationalize their business after consolidating their position in their domestic market. Once family SMEs have built up the necessary resources and capabilities for their growth in the domestic market, they may leverage it later on for further expansion abroad. This paper seeks to examine the determinant factors that may explain the internationalization of family SMEs. More specifically, this study will examine the relationship between ownership, governance, top management team (TMT) and internationalization in family SMEs. Family SMEs may reap the benefit of stewardship orientation. This study seeks to examine the potential moderating role of stewardship orientation and TMT behavioral integration. The main contribution of this study is in examining theoretically and conceptually the relationship between ownership, governance, TMT and internationalization in the family SME context.     

Formal governance,interfirm coordination,and performance in partnerships: An empirical investigation of a mediation model

This study investigates the extent to which formal governance mechanisms such as contracts and equity ownership affect interfirm coordination and partnership performance. We analysed data from a survey of 301 Korean firms to show that interfirm coordination partially mediates the relationship between contract completeness, defined as the extent to which a contract specifies task operations and contingencies, and partnership performance. Furthermore, we find that more complete contracts can attenuate the negative effects of equity ownership on coordination, and that this effect is particularly strong when partner tasks are interdependent and relational norms are weak.     

Scrutinising the interplay between governance and resilience in supply chain management: A systems thinking framework

Supply chain disruptions recurrently challenge end-to-end operations owing to the ambiguous understanding of the role of governance in impacting supply network resilience. This paper scrutinises the relevant literature to understand the plethora of interpretations in supply chain governance and resilience while further providing a new perspective on the representation of the interplay between governance and resilience in supply chains. In this regard, the Systems Thinking lens is adopted to pull together the typologies and constructs of supply chain governance and resilience from the literature. Methodologically, System Dynamics modelling principles are leveraged to capture the underpinning structural interdependencies in a causal loop diagram. The study reveals that endogenous and exogenous supply chain governance processes and mechanisms support the intrinsic and extrinsic resilience in networks. Overall, this research contributes to the supply chain risk management domain by synthesising the interplay between governance and resilience, identifying pertinent typologies, and articulating research propositions that can inform decision-making at policy and management levels.     

Economic reforms, corporate governance and privatization method as determinants in performance changes of new privatized firms: the case of MENA countries

This paper aims to provide the determinants of how privatization works in some selected Middle East North Africa countries. Using a sample of 75 new privatized firms we examine the performance changes in countries namely Egypt, Morocco, Tunisia and Turkey. We document a significant increase in profitability, efficiency and output as well as a decrease in leverage. We also identify that these improvements vary with economic reforms and environment, effectiveness of corporate governance and the privatization method used. In particular, financial liberalization and control relinquishment by the government are associated with higher efficiency and output. Furthermore, foreign participation and the use of share issue privatization as divestment method appear to have a positive impact on efficiency and output changes. Additionally, the use of private sales is related to a significant decrease in leverage. Finally our results highlight the importance of economic reforms, corporate governance and the choice of privatization method in explaining the post privatization changes in performance.     

Religion,governance and performance: evidence from Islamic and conventional stock exchanges

Based on a dataset of 31 conventional and Islamic stock exchanges we compare financial performance across these two groups for 2007–2011 period. Our results suggest that CEs and IEs are differently exposed to institutional constraints and have different drivers of profitability. Islamic stock exchanges’ performances are essentially driven by traditional listing and trading services and are affected by institutional factors such as the degree of foreign trading openness of their economies and measures of society development. Furthermore, they ensure greater stability during crisis, although Shari’ah compliant investments don’t affect their revenue generation. Conventional stock exchanges have higher trading intensity, higher level of revenues’ diversification and high capital investments, as they operate with different business models. Our results could have relevant business and strategic implications for further convergence between the two groups. Moreover our analysis could be significant for firms wishing to list their shares into Shari’ah Compliant Stock Exchanges or into Conventional ones and traders choosing the most convenient trading venue.     

Supply system structure, management and performance: a conceptual model

This paper contributes to the debate within the supply chain management field on the structure, operational management and performance measurement of supply systems. It draws on influential work from these fields in order to support the presentation of a conceptual model. This represents a synthesis of the ideas and concepts discussed, and acts as a focus for subsequent discussion. After presentation and explanation of the model, the structure of supply systems is considered. The relationships are explored between this and both the type of product that is exchanged and the nature of the demand profile. Conclusions are drawn that suggest that the architecture of the supply network should be determined once those factors are clarified and understood in the context of specific supply situations. The role of intermediary organizations within supply systems is discussed. It is then argued that a number of key variables influence the success of the management of the supply system and of its performance. Issues relating to these variable classes are discussed. Conclusions are drawn that highlight directions for further research.     

新企业创业团队的治理机制与团队绩效的关系

现有研究主要从团队构成和合作过程两个视角来解释创业团队对新企业绩效的影响.论文从创业团队治理这个新的视角研究新企业中的上述问题,通过大样本实证研究表明:1)新企业创业团队既需要正式契约、股权安排等正式治理机制,也需要团队建设性争论等非正式治理机制;2)签订正式契约对创业团队绩效的影响具有企业阶段特性,它在企业创立2年之后有显著的正向影响作用,但在创立不超过2年时期,影响较弱;3)绝对控股权安排对创业团队绩效的影响也具有企业阶段特性,在企业创立不超过2年时期,存在显著正向影响,但在创立超过2年之后,影响变为不显著;4)创业团队遵循团队建设性争论能显著提高创业团队绩效.     

Networks in policy,management and governance: a comparative literature review to stimulate future research avenues

Policy networks, network management and network governance have received particular attention in the public sector literature over the last 20 years. Networks have been studied from different perspectives resulting in the creation of various concepts and definitions. However, the proliferation of definitions, metrics and language is responsible for a confusing picture, where policy networks, network management and network governance are used both as synonyms and to define different concepts. We review the existing literature with two aims: firstly, to compare the three streams of literature, by highlighting their similarities and differences; secondly, to propose a guide for network scholars that identifies the importance of each stream in analyzing specific issues.     

Inter-organizational governance: a review,conceptualisation and extension

Abstract

Although the concepts of relational and contractual governance in inter-organizational relationships have attracted academic and practitioner interest over the last decades, to date there have been limited comprehensive and systematic efforts to review, analyse and synthesise extant literature. We review and analyse 1,415 publications identified from a wide range of management disciplines and journals from 1990 to 2018. We deploy bibliographic and content analyses to offer a comprehensive literature analyses and synthesis and subsequently develop and position a multidimensional framework of exchange governance. The proposed framework covers existing conceptualisations of exchange governance and its diverse mechanisms, environmental dimensions influencing the use of exchange governance mechanisms and performance implications. We uncover areas that are currently under-studied and draw out fruitful future research avenues.     

Utilization management, case management, and you

Historically, most monitoring functions have been carried out by insurance companies. Monitoring costs was considered their fiduciary obligation to their customers. The exercise of this fiduciary obligation kept premiums low, while increasing or maintaining the benefit levels. Risk (the assumption of losses generated by services costing more than the income received from premiums) was assumed by the insurance company and eventually passed to the customer or the payer. Today, risk is being transferred more and more to the provider. This transfer was started by the creation of DRGs, the main purpose of which was to transfer risk from payers (insurance companies, employers, state and federal government, etc.) to provider health care organizations (physician groups, individual practitioners, hospitals, clinics, etc.).     

Corporate governance and management practices: stakeholder involvement, quality and sustainability tools adoption

Local public services are the field in which New Public Management (NPM) and Public Governance issues are most in evidence. The local public services are characterized by the rethinking of the role played by local government in the provision of services. An evolution has taken place. From a traditional configuration in which local public services were managed by local governments they moved to a configuration where a separation has taken place between the local government role (which continues to be the guarantor of the satisfaction of public needs) and the role of local public utilities (LPUs) (responsible for delivering the services). This transformation implies both the delegation of resources and authority to lower organisational levels within the public sector and the reconfiguration of accountability chains between the state institutions and the society. In recent years, an intense debate has developed regarding the introduction of new tools and control systems. Particular attention has been paid to planning and control systems, human resources management systems, and performance management systems, leaving a few pioneers to develop their analysis on corporate governance mechanisms with regard their relationships with both the external (stakeholders) actors and the internal (management) ones. On one hand, the OECD wrote guidelines in order to ensure good corporate governance practices, focusing on relations with stakeholders. On the other hand, the dialogue between corporate governance and stakeholders has been already tackled by a number of International organizations guidelines or principles, following a debate on corporate governance that has progressively combined a stakeholder perspective with a more classic shareholder-maximizing model of governance. This article contributes to the debate on the stakeholder involvement process. By means of both a theoretical discussion and an empirical research conducted on 37 Italian LPUs, this paper attempts to analyse specific management tools which can be used to improve the quality of corporate governance in LPUs, by extending the stakeholder involvement. Some NPM’s tools, such as quality standards and sustainability tools imply an effort to offer new forms of organizational behaviour in the decision-making processes (i.e. the choice of the performance indicators and the reporting tools) and to create a dialogue between the enterprise and its stakeholders. In particular, in our study we focus on the adoption of quality standards (ISO 9000 and Customer Satisfaction) and sustainability tools (sustainability reports and ISO 14000 standard) as NPM’s tools to facilitate the stakeholder involvement practices.     

Corporate governance and performance of microfinance institutions: recent global evidences

Journal of Management and Governance - Using a global data set of 456 MFIs, this study investigates whether a MFI’s ownership structure and corporate governance influences its social...     

Minority and majority private equity investments: firm performance and governance

This paper adds to the literature on the determinants of the effects of private equity (PE) investments. Using an original dataset of 191 target firms in Italy, we study the effects on performance and governance of the stakes acquired by the PE investor. We employ a difference-in-differences approach and compare target and control firms sharing similar characteristics and performance in the years preceding the deal. We find that PE investment has a positive effect on profitability, sales, and employment; these effects are larger for minority investments. We argue that this signals effective governance that follows from complementing rather than substituting incumbent managers in minority investments.