The impact of board size on firm performance: evidence from the UK

We examine the impact of board size on firm performance for a large sample of 2746 UK listed firms over 1981-2002. The UK provides an interesting institutional setting, because UK boards play a weak monitoring role and therefore any negative effect of large board size is likely to reflect the malfunction of the board's advisory rather than monitoring role. We find that board size has a strong negative impact on profitability, Tobin's Q and share returns. This result is robust across econometric models that control for different types of endogeneity. We find no evidence that firm characteristics that determine board size in the UK lead to a more positive board size-firm performance relation. In contrast, we find that the negative relation is strongest for large firms, which tend to have larger boards. Overall, our evidence supports the argument that problems of poor communication and decision-making undermine the effectiveness of large boards

Mayfly production in a New Zealand glacial stream and the potential effect of climate change

Abstract In contrast to the northern hemisphere where species of Chironomidae are usually the dominant benthic invertebrates in the coldest upper reaches of glacial streams, mayflies (Deleatidium spp.: Leptophlebiidae) predominate in equivalent conditions in New Zealand. We examined the life histories and annual production of Deleatidium spp. at two sites on the Matukituki River (South Island, New Zealand) and at three sites in its glacier-fed tributary, Rob Roy Stream. Mean annual water temperature at the five sites ranged from 2.1 to 7.0°C. Monthly sampling showed that mayfly populations were poorly synchronised at all sites but were probably univoltine. The large Deleatidium cornutum was the dominant mayfly species found at the upper sites (Sites 1 and 2) on Rob Roy Stream, whereas above the confluence with Matukituki River (Site 3) it co-existed with a complex of smaller species we refer to as D. ''angustum''. Deleatidium ''angustum'' also dominated at the Matukituki sites. Deleatidium production calculated for the five sites, assuming an 11-month nymphal life, ranged from 0.48 g dry weight/m 2 /year (Site 1) to 3.07 g dry weight/m 2 /year (Site 3). The values for D. cornutum at Sites 2 and 3 are high for a species of Deleatidium and reflect its large size. This species appears to be strongly adapted for growth at low temperatures. Climate change scenarios for New Zealand predict the gradual and ultimate loss of small South Island glaciers and a consequent warming of streams as runoff from rainfall and snow melt becomes more dominant in spring. As a result, suitable habitats will be lost for cold-water specialists such as D. cornutum, and they are likely to suffer reductions in their distributional range and local extinction. In contrast, species such as those in the D. ''angustum'' complex may extend their ranges into streams formerly dominated by glacial meltwater

Beyond shareholder primacy? Reflections on the trajectory of UK corporate governance.

Core institutions of UK corporate governance, in particular the City Code on Takeovers and Mergers, the Combined Code on Corporate Governance and the law on directors’ duties, are strongly orientated towards the norm of shareholder primacy. Beyond the core, however, stakeholder interests are better represented, in particular at the intersection of insolvency and employment law. This reflects the influence of European Community laws on information and consultation of employees. In addition, there are signs that some institutional shareholders are redirecting their investment strategies, under government encouragement, away from a focus on short-term returns, in such a way as to favour stakeholder-inclusive practices by firms. On this basis we suggest that the UK system is currently in a state of flux and that the debate over shareholder primacy has not been concluded

Europeanization and the soft law process of EU corporate governance: how has the 2003 action plan impacted on national corporate governance codes?

This study explores Europeanization, the interrelationship between domestic and EU-level policy activity. Specifically, it asks how domestic policy is affected by EU-level (soft-law) policy processes. This contrasts with the hard-law focus of most Europeanization research. Our empirical analysis seeks to determine the extent to which the European Commission's 2003 plan to enhance corporate governance delivered on its aim of 'co-ordinating corporate governance efforts of member states'. This study thus differs from most others on convergence in corporate governance regimes, which look for evidence of convergence perse, rather than convergence towards a specified set of principles. Applying content analysis and econometric tests to 95 corporate governance codes issued between 1992 and mid-2010, we find that the Action Plan has influenced member states' corporate governance policies. However, the degree of national policy alignment to the Action Plan's priorities depends on when the corporate governance code was issued, here, and by whom

Appointments, pay and performance in UK boardrooms by gender

This article uses UK data to examine issues regarding the scarcity of women in boardroom positions. The article examines appointments, pay and any associated productivity effects deriving from increased diversity. Evidence of gender-bias in the appointment of women as non-executive directors is found together with mixed evidence of discrimination in wages or fees paid. However, the article finds no support for the argument that gender diverse boards enhance corporate performance. Proposals in favour of greater board diversity may be best structured around the moral value of diversity, rather than with reference to an expectation of improved company performance

Pulses of Class I PI3kinase activity identify the release and recapture of prey from neutrophil phagosomes

Class I PI3kinases coordinate the delivery of microbicidal effectors to the phagosome by forming the phosphoinositide lipid second messenger, phosphatidylinositol (3, 4, 5)-trisphosphate (PIP3). However, the dynamics of PIP3 in neutrophils during a bacterial infection are unknown. We have therefore developed an in vivo, live zebrafish infection model that enables visualisation of dynamic changes in Class 1 PI3kinases (PI3K) signalling on neutrophil phagosomes in real-time. We have identified that on approximately 12% of neutrophil phagosomes PHAkt-eGFP, a reporter for Class 1 PI3K signalling, re-recruits in pulsatile bursts. This phenomenon occurred on phagosomes containingstructurally and morphologically distinct prey, including Staphylococcus aureus and Mycobacterium abscessus, and was dependent on the activity of the Class 1 PI3K isoform, PI3kinase γ. Detailed imaging suggested that ‘pulsing phagosomes’ represent neutrophils transiently reopening and reclosing phagosomes. This finding challenges the concept that phagosomes remain closed after preyengulfment and we propose that neutrophils occasionally use this alternative pathway of phagosome maturation to release phagosome contents and/or to restart phagosome maturation if digestion has stalle

The market for non-executive directors: does acquisition performance influence future board seats?

This paper investigates whether non-executive directors associated with good (bad) board decisions are subsequently rewarded (penalized) in the market for directors. This question is addressed by assessing whether the post-acquisition performance of acquiring companies influences the number of non-executive directorships that non-executives involved in these acquisitions hold subsequent to the acquisition. We find that non-executives on the boards of acquirers that increase (omit or cut) their dividend subsequently hold more (fewer) non-executive directorships in listed companies. Our findings suggest that the non-executive labor market is efficient and rewards (penalizes) non-executives for good (bad) acquisitions

Communitarian perspectives on social enterprise

Concepts of social enterprise have been debated repeatedly, and continue to cause confusion. In this paper, a meta-theoretical framework is developed through discussion of individualist and communitarian philosophy. Philosophers from both traditions build social theories that emphasise either consensus (a unitarist outlook) or diversity (a pluralist outlook). The various discourses in corporate governance reflect these assumptions and create four distinct approaches that impact on the relationship between capital and labour. In rejecting the traditional discourse of private enterprise, social enterprises have adopted other approaches to tackle social exclusion, each derived from different underlying beliefs about the purpose of enterprise and the nature of governance. The theoretical framework offers a way to understand the diversity found within the sector, including the newly constituted Community Interest Company (CIC).</p