Journal Corporate Ownership and Control-
Corporate Ownership and Control; doi:10.22495/coc
Corporate Ownership and Control, Volume 17, pp 92-107; doi:10.22495/cocv17i3art7
Although the role of innovation and digitalization represents critical factors to succeed in the international context, there is a lack of empirical evidence on how they impact on the international propensity of family firms. We address this gap investigating to which extent family firms adopt digitalization tools and their effect on export-orientation, as well as whether the innovation can play a boosting role for family decision makers. Based on a survey of 2,500 Italian firms carried out in 2015 by Italian Chambers of Commerce, we find that family firms face more difficulties in undertaking digital transformation decisions, since they can weaken family SEW endowment but digitalization solutions enable the international propensity of family firms, bridging the gap with their non-family counterparts. Theses results advance the current debate on risk preferences of family firms, taking into account firm conditions, in terms of digitalization and innovation equipment, under which family owners make strategic decisions.
Corporate Ownership and Control, Volume 17, pp 84-91; doi:10.22495/cocv17i3art6
Corporate Ownership and Control, Volume 17, pp 71-83; doi:10.22495/cocv17i3art5
This study examines the effects of board gender diversity on a bank’s risk by applying a moderate multiple regression analysis on a dataset covering the years 2008-2017 and comprising 110 banks from Germany, Italy, Spain, and Switzerland. Masculinity, a country-level cultural dimension incorporating the behavioural expectations surrounding men and women in a society, is used as a moderator. Results suggest that high country-level masculinity stresses the risk-aversion of a bank’s women directors, therefore compromising financial performance. To mitigate the negative effects of high country-level masculinity, this paper provides several suggestions. First, banks should change their stereotypical depiction of the “ideal worker”. Second, banks should question the cultural motives underpinning the entrance of women directors in the “boy’s club”. Last, banks should create a more egalitarian workplace where the distribution of rewards does not strengthen the privileges of the established elites.
Corporate Ownership and Control, Volume 17, pp 46-70; doi:10.22495/cocv17i3art4
According to the literature review, the analysis results of the impact of ownership structure quality on financial performance within conventional and Islamic financial institutions are contradictory. In our study, we performed a fine differential analysis aimed at resolving this ambiguity. The financial performance and ownership structure variables of conventional and Islamic banks were collected from 16 countries located in three continents: Europe, Asia, and Africa. Two samples were collected that each of them is composed of 63 banks. By using the OLS method, these panel data were compared to the impact of ownership structure on the financial performance between both types of banks in the agency theory framework during the period 2010-2018, giving us 567 bank-year observations in each sub-sample. Results revealed that the ownership structure of conventional banks has had an explained ambiguous impact on its financial performance, whereas that of Islamic banks has a positive effect. Overall, the impacts of the Chief Executive Officer (CEO) shareholding and the board’s chairman shareholding are more significant on the financial performance of conventional banks than those of impacts related to Islamic banks.
Corporate Ownership and Control, Volume 17, pp 34-45; doi:10.22495/cocv17i3art3
A new strand of corporate governance literature on ownership is developing the next generation of the concept of active ownership: responsible ownership. This paper aims to contribute to this strand of literature by addressing an inchoate element of responsible ownership: collective action by owners. We introduce an ownership strategy as a governance mechanism for collective action and responsible ownership and ask how an ownership strategy improves corporate governance. Using data from semi-structured interviews with owner representatives, board members, and non-executive insiders, together with observation and documentary analysis, we find support for the theoretical construction and an answer to the research question. Specifically, we find that the ownership strategy functions as a collaboration pact, which cultivates long-termism, and that the outcome is improved agency, i.e. that both the relationship between owners and directors and between directors and management is improved due to better alignment. The findings indicate that an ownership strategy establishes a much-needed long-term focus and commitment of owners while creating a sense of security and understanding among the members of the board of directors, i.e. that they are working with the will of their owners. As such, it suggests new avenues of research for corporate governance literature.
Corporate Ownership and Control, Volume 17, pp 27-33; doi:10.22495/cocv17i3art2
We investigate the case of Small-Medium Enterprises (SMEs) in Italy trying to understand if key performance indicators obtained from the financial statement are able to predict possible distress in a company with enough time to take some corrective actions. In order to test the hypotheses, a nonparametric supervised classification algorithm has been applied to a random sample of 100 non-listed SMEs, considering 50 companies that filed for bankruptcy during the period 2000-2011 and 50 companies still active on the market at the end of 2011. Results describe the Italian picture for SMEs during an economic crisis period. They show that, for the Italian case, it is possible to predict with enough time (4-5 years prior to failure) a distress situation in a firm through classification methods. Anyway, these methods are not predicting the health of a company but the possibility of the firm to access the credit system. The results are limited to the Italian SMEs context which is quite particular if compared with other countries in Europe. The dataset is limited in size but has been chosen to be representative of non-listed Italian companies.
Corporate Ownership and Control, Volume 17, pp 8-26; doi:10.22495/cocv17i3art1
Corporate Ownership and Control, Volume 17, pp 4-6; doi:10.22495/cocv17i2_editorial
This volume of the journal “Corporate Ownership and Control” is focused on corporate governance, corporate social responsibility, earnings and performance management, ownership concentration, institutional ownership, audit fees, audit quality and independence, cross-cultural management and cultural dimensions, financial instruments risk disclosure, equity incentives, firm performance, shareholder composition and monitoring effects, etc. The topics addressed in this issue highlight the continuing need for knowledge present in academic and non-academic research. The papers published in this issue offer an additional point of view with regard to the most important corporate governance issues.
Corporate Ownership and Control, Volume 17, pp 183-193; doi:10.22495/cocv17i2art15
Numerous mergers and acquisitions, and the rise of MNCs with global customer bases have exposed the German board of directors to a variety of cultures. Despite the obvious relevance for corporate governance, the effect that cultural diversity of boards exerts on firm performance, Germany has been a blank spot in this literature. Using a sample of 101 German publicly listed companies, this empirical study answers if the level of cultural variety and cultural distance in boards of directors have an influence on firm performance. The results of this study indicate that cultural variety in boards of directors has a linear, negative influence on operational firm performance (as measured by ROI and ROE). This reinforces the fundamental assertion that executives’ cultural values shape their mindsets and orientations, and thus influence their decision-making. The results of this study, therefore, indicate that cultural diversity is an important diversity dimension that further on should be given careful consideration in research. Based on the findings, we argue against the blindfold implementation of (political) regulations in the area of board diversity.