Academic literature on the topic 'And the size of the board of directors'

AbstractM-Tec is a high-tech computer company based in Geneva, Switzerland. Its shares have traded at values consistently higher than the listing price.The recent acquisition of a rival business of equal size resulted in an additional, positive movement in the share price.Despite the positive performance, however, a major challenge has arised at the board level.Three directors opposed the acquisition based on their conviction that the purchase price was too high.

Today, the Upper Echelon and Power theories are widely used to explain firm performance. These theories relate the size of top management and the power of managers (especially the CEO) to firm performance. However, no research has been found in the Turkish literature examining how senior management structure and CEO power affect firm performance. The aim of the study was determined as "detection of the effect of the structure of the board of directors and the characteristics of the CEO on the financial performance of the companies". In the research, a data set was created by considering the tenure of CEOs (7 years and above) in companies traded in the Borsa Istanbul 100 Index. The research data set includes 16 companies covering the period between 2016-2022, and the variables were obtained from the Thomson Reuters Eikon database. The dependent variables of the research are ROA, ROE and Tobin's Q, and the independent variables are CEO age, CEO duality, number of CEO titles, board size and board independence. Data were analyzed by the panel data analysis method. According to the research findings, CEO duality Tobin's Q, CEO age has a negative effect on ROA. Board size and CEO age have a positive effect on ROE. The number of titles held by the CEO and the board of directors' independence does not significantly affect firm performance. Research findings are important in showing the effect of board structure and CEO characteristics on firm performance.

The topic of this study falls within that line of research that seeks to understand whether corporate governance and in particular the composition and activity of a company’s board of directors can influence its ESG performance. This study seeks to fill gap in the literature by analyzing the relationship between bank board composition (the main independent variables are gender diversity, independence, size, activity, and ESG/CSR committee) and performance of the ESG dimensions.

The erosion of trust has put pressure on corporations to improve their performance. Due to widespread corporate scandals and failures around the world, there has been a renewed interest in the effect of corporate governance on firm performance. This study investigated the effect of corporate governance dimensions particularly board size and ownership concentration on performance and market share of selected listed companies in Nigeria. The study utilized secondary data for fifteen companies from the Financial Services, Consumer Goods and Industrial Goods Sectors of the Nigerian Stock Exchange for the period of 2014 to 2019. For data analysis, the study adopted the ordinary least multiple regression analysis. The study found that as board size and ownership concentration increase, ROE decreases. However, the study found that, to a significant extent, market share of listed firms in Nigeria increases as both board size and ownership concentration increase. This study concluded that board size and ownership concentration do not have significant effect on return on equity (ROE) of listed firms in Nigeria. Also, it concluded that board size and ownership concentration has significant effect on market share of listed firms in Nigeria. Although without significant effect, the study specifically found that as board size increases, return on equity (ROE) of listed firms in Nigeria decreases and as ownership concentration increases, ROE of listed companies in Nigeria also decreases.The study recommended that the board of the companies should always be of a size relative to the scale of its operation, allow for diversity and formation of necessary board committees in order to improve performance. Also, board of directors should ensure that ownership concentration is not too high even as board of the companies needs to ensure that they continuously subject themselves to ownership diversity and board size appropriateness in order for the business to be profitable and increase market share. Keywords: Board Size, Board Ownership, Corporate Governance, Performance, Nigeria

Corporate governance is a crucial mechanism for the organizations’ actions to maintain market successful adequate and targeted policies and long-term strategies that ensure the maximization of shareholders’ benefits. The board of directors is appointed by organizations’ shareholders and its main role is to be responsible and accountable and to ensure enforcement of the top management acts concerning the fulfillment of the shareholder’s interests. For this to be achieved, it is important for the board to be efficient, effective, and focused on protecting the organization and shareholder’s interests. Good corporate governance and more specifically, board characteristics play a central role in companies’ management, coordination, and control mechanisms. The paper analyses various theoretical and empirical findings regarding the prominence of various board characteristics within companies and particularly evaluates the impact of board characteristics on the financial performance of listed companies in the insurance industry in the Republic of North Macedonia. The financial ratio ROA is used as a proxy and as a variable for firm performance while the board experience, CEO duality, board size, board composition, and gender diversity are set to be as independent variables. Based on the variables related to board characteristics, hypotheses are developed and their impact upon firm performance is examined with the use of Generalized Methods of Moments (GMM), a pairwise correlation matrix, as well as with multicollinearity VIF test. In that direction, this paper aims to determine the level of effectiveness of current governance mechanisms and based on the results, propose measures and actions for successfully handling agency costs while maximizing governance capability and performance in the insurance sector in the Republic of North Macedonia.

Corporate governance refers to the way in which a company is being organized, and contains laws, regulations, principles and codes which the organization is based on and guided by. Two primary systems of corporate management can be differentiated: the monistic model (one-tiered) which originates from and is used in the United Kingdom, USA and Canada, and the dual model (two-tiered) that is mostly implemented in the countries of Western Europe, and more recently in European countries in transition. This study will be dealing with the two-tier system of corporate governance, as well as the differences and similarities in its application in Europe through the course of challenging and unstable business conditions. The supervisory board as a management body is a control body that supervises, directs and controls the work of the executive board. Certain factors such as the size of the board, independence, composition and diversity of the supervisory board are considered crucial for successfully fulfilling its role. The contemporary approach to business encourages the constant need to review and redefine the role of supervisory boards and search for solutions that would contribute to efficient corporate governance.

In Colombia, as well as in the rest of the world, the Covid-19 pandemic has seriously damaged the health and well-being of the people. In order to limit the damage, local and national authorities have had to order large sectors of the population to be confined at their homes for long periods of time. An inevitable consequence of isolation has been the collapse of economic activity, expenditure, and employment, a phenomenon that has hit many countries of the world affected by the disease. It is an unprecedented crisis in modern times, not so much for its intensity (which is undoubtedly immense), but because its origin is not economic. That is what makes it so unpredictable and difficult to manage. Naturally, its economic consequences are enormous. Governments and central banks from all over the world are struggling to mitigate them, but the final solution is not in the hands of the economic authorities. Only science can provide a way out. In the meantime, the economic indicators in Colombia and in the rest of the world cause concern. The output falls, the massive loss of jobs, and the closure of businesses of all sizes have become daily news. Added to this, there is the deterioration in global financial conditions and the increase in the risk indicators. Financial volatility has increased and stock indexes have fallen. In the face of the lower global demand, export prices of raw materials have fallen, affecting the terms of trade for producing countries. Workers’ remittances have declined due to the increase of unemployment in developed countries. This crisis has also generated a strong reduction of global trade of goods and services, and effects on the global value chains. Central banks around the world have reacted decisively and quickly with strong liquidity injections and significant cuts to their interest rates. By mid-July, such determined response had succeeded to revert much of the initial deterioration in global financial conditions. The stock exchanges stopped their fall, and showed significant recovery in several countries. Risk premia, which at the beginning of the crisis took an unusual leap, recorded substantial corrections. Something similar happened with the volatility indexes of global financial markets, which exhibited significant improvement. Flexibilization of confinement measures in some economies, broad global liquidity, and fiscal policy measures have also contributed to improve global external financial conditions, albeit with indicators that still do not return to their pre-Covid levels.

The Board of Directors of the Central Bank, as per the provisions of Article 5 of Law 31 of 1992, submits a report to the Congress of the Republic that describes the macroeconomic performance for the first half of 2019 and its prospects for the remainder of the year. The last two chapters report on the composition of the country’s international reserves and the projection of the financial situation of Banco de la República for 2019. The last chapter analyzes the payment systems in the cou

In compliance with Act of Congress 31/1992, Article 5, the Board of Directors of Banco de la República hereby submits to the Congress of the Republic of Colombia a detailed report on the measures that Banco de la República has taken in the emergency situation generated by Covid-19 and presents the macroeconomic results for 2020 and the outlook for 2021 for its consideration. Furthermore, the breakdown of the Foreign Reserves and their performance, the financial position of the Bank and its forecasts, and the Bank’s Cultural management are described.

In compliance with Act of Congress 31/1992, Article 5, the Board of Directors of Banco de la República hereby submits to the Congress of the Republic of Colombia a detailed report on the measures that Banco de la República has taken in the emergency situation generated by Covid-19 and presents the macroeconomic results for 2020 and the outlook for 2021 for its consideration. Furthermore, the breakdown of the Foreign Reserves and their performance, the financial position of the Bank and its forecasts, and the Bank’s Cultural management are described. Sincerely, Leonardo Villar Gómez Governor

In 2023, the Colombian economy made progress in the macroeconomic adjustment required to achieve growth compatible with its productive capacity and external and price stability. This adjustment was reflected in the beginning of the convergence of inflation towards the target, which closed the year at 9.3%. This adjustment is an important step forward in the Board of Directors’ (BDBR) intention to drive inflation toward its target by mid-2025. Net foreign reserves increased and at the end of 2023 reached USD 59,608.3 million, and Banco de la República’s (the Central Bank of Colombia, Banrep) profit amounted to COP 9,226 billion. International Macroeconomic Environment IMF measurements indicate that global gross domestic product (GDP) growth was reduced from 3.5% in 2022 to 3.1% in 2023, and according to World Bank estimates, from 3.3% to 3.0%. This is due to the contractionary monetary policy of many central banks, fiscal tightening in most advanced countries, and high international uncertainty due to the conflicts between Russia and Ukraine and in the Middle East, among others. Global total inflation moderated in 2023 as a result of lower energy prices, normalization of global supply chains, lower food prices, and reduced demand dynamism in many countries resulting from the synchronized cycle of contractionary monetary policy and less expansionary fiscal policies. Thus, by December 2023, annual inflation for OECD members stood at 6.0%, after the maximum level observed in October 2022 (10.7%). The various international agencies forecast global economic growth for 2024 to be equal to or marginally lower than that recorded in 2023. Thus, according to the IMF, world growth in 2024 would remain unchanged at 3.1%; for the World Bank, it would fall from 3.0% to 2.9%, and according to the OECD, it would decrease from 3.1% to 2.9%. For Latin America and the Caribbean, after an estimated growth of 2.5% in 2023, the IMF forecasts a slowdown to 1.9% in 2024. Economic Activity in Colombia According to the information from DANE (National Administrative Department of Statistics), the Colombian economic growth in 2023 was 0.6%, which was below all forecasts. This slowdown was caused by a combination of factors after recording all-time high growth in 2021 (10.7%) and 2022 (7.3%) that led the GDP to levels higher than those recorded before the pandemic. The reasons for this slowdown include contractionary monetary policy, moderation of expenditure towards levels compatible with the economy's productive capacity, and a lower dynamism of all types of credit. Likewise, the adjustment in public finances related to an increase in tax collection that caused a 4-point decrease in the General Government deficit, the contraction in civil works, and the uncertainty that affected investment decisions. The technical staff's growth projections foresee a moderate expansion in 2024 of around 0.8% and forecast that by 2025, the economy will enter a significant recovery phase, achieving an annual growth of 3.5%. Employment The national unemployment rate decreased in 2023 to 10.4% at the end of the year, driven by the urban area. This was partially offset by the increase in unemployment in other municipalities and the rural area as of the third quarter. Salaried and formal employment was the most dynamic segment during 2023, with an increase of 2.9%. This was reflected in a decrease of the informality rate from 57.1% at the end of 2022 to 55.1% in December 2023, reaching all-time lows. Forecasts on the evolution of the unemployment rate for this year suggest that urban unemployment will average between 9.0% and 12.1%, with 10.5 % being the most likely value. In turn, the national unemployment rate could be between 9.3% and 12.4%, with 10.8% being the most likely value. Inflation and Monetary Policy Annual consumer price inflation in Colombia peaked at 13.34% in March 2023, and as of April, it began a downward trend, reaching a level of 9.28% at the end of 2023. Thereby, the annual inflation rate returned to single-digit territory after 17 months of remaining above 10%. In January 2024, inflation continued to decline, at 8.35% yearly, below the technical staff's expectations. This meant a new and important step forward in the process of inflation convergence towards the target. With clear signs of lower inflationary pressures, the BDBR proceeded to cut the policy rate by 25 bps in each of its December and January sessions, bringing it to 12.75%. Balance of Payments According to the information on the balance of payments the current account deficit during 2023 stood at 2.7% of GDP, 3.5 pp of GDP lower than that recorded in the same period of 2022 (6.2% of GDP). All components of the current account contributed to this correction. The largest adjustment occurred in the trade balance of goods, whose deficit was USD 5,310 million lower than a year ago. This is explained by the significant fall in imports, which exceeded the reduction in the value of exports. By 2024, Banco de la República's technical staff projects a current account deficit close to 3.0% of GDP in an environment of low economic growth and moderate recovery of domestic demand. Public Finances The General Government (GG) deficit was reduced from 6.5% of GDP in 2022 to 2.5% in 2023. This important correction was possible due to the adjustment made in most of the components of this level of government, particularly in the Fuel Price Stabilization Fund (FEPC in Spanish) and in the Central National Government (CNG). In 2023, the CNG achieved a substantial adjustment to its finances due to the increased tax collections derived from the 2021 and 2022 tax reforms, the higher oil revenues, increased dividends from Ecopetrol, and increased profits from Banco de la República. By 2024, the CNG’s total and primary deficits are projected to widen by 5.3% and 0.9% of GDP, respectively. The tax revenues would increase from 16.6% of GDP in 2023 to 17.3% in 2024, reaching an all-time high. Foreign Reserves Net foreign reserves at the end of 2023 totaled USD 59,608.3 m, i.e., an increase of USD 2,339 m during the year. The main factor explaining this increase is the interests received on investments. The return on foreign reserves during 2023, excluding the foreign exchange component, was 4.0% (USD 2,355 m). In the last months of the year, there was an increase in investment prices due to the reduction in short and medium-term interest rates in the main markets in which foreign reserves are invested. The indicators that evaluate foreign reserves suggest that as of December 2023, their level are adequate. Profits of Banco de la República At the end of 2023, the Bank's profit was at an all-time high and amounted to COP 9,226 billion, resulting from revenues of COP 14,798 billion and expenses of COP 5,572 billion. Revenues observed in 2023 were COP 10,350 billion higher than in 2022, mainly due to the yield of foreign reserves. Expenses were COP 2,630 billion higher than those of the previous year, mainly due to the increase in the remuneration of the Colombian Government's deposits in Banrep, given the increases in the interest rate of the monetary policy and higher average balances. For 2024, profit is projected at COP 10,345 billion, higher than that observed for 2023. This result would be the product of revenues of COP 15,620 billion and expenses of COP 5,275 billion.