Managerial entrenchment and payout policy : A catering effect

We thank Collins Ntim for useful comments. We also thank seminar participants at Massey University, Coventry University, and the 28th EBES Conference (2019).Peer reviewedPostprin

Religiosity, Borrower Gender and Loan Losses in Microfinance Institutions : A Global Evidence

Peer reviewedPostprin

Boardroom gender diversity and CEO pay deviation: Australian evidence

© 2020 Accounting and Finance Association of Australia and New Zealand We study whether boardroom gender diversity affects CEO pay. Specifically, we investigate the association between boardroom gender diversity and CEO pay deviation from the optimal level of CEO pay based on firm characteristics and market performance. Using a sample of 2,288 firm-year observations for the period 2006–2014, we find that boardroom gender diversity is negatively associated with CEO pay deviation, suggesting that firms with gender-diverse boards are cautious about the consequences of CEO pay deviation (under/overpayment), and thus likely to bridge the gap between CEO actual pay and expected pay. These findings provide important insights to the global discussion on executive compensation. Our findings are robust to alternative variable specifications, propensity score matching, difference-in-differences estimations, and generalised method of moments

Board gender diversity and environmental, social, and economic value creation: Does family ownership matter?

© 2019 John Wiley & Sons, Ltd and ERP Environment Prior literature on firm value creation for stakeholders has oversimplified and narrowed the concept of value down to “economic returns.” Although economic returns are fundamental to a firm\u27s core stakeholders (i.e., shareholders), other legitimate stakeholders want “value” beyond economic returns. We define stakeholder value as the financial and nonfinancial returns a firm can offer to its legitimate stakeholders, and empirically investigate whether board gender diversity (BGD) improves our multidimensional measure of value. Using Thomson Reuters\u27 ASSET4 data for U.K.-listed firms available from Eikon for the period 2007–2017, we report a significant positive relationship between BGD and stakeholder value creation. In particular, BGD increases social and environmental value creation in addition to economic returns. Furthermore, our results suggest that even though gender-diverse boards are associated with stakeholder value creation in family firms, this is only conspicuous for environmental value creation. The findings suggest that although female directors cater to the interests of broader stakeholder groups, family ownership causes them to mainly focus on environmental stakeholders. The study provides important implications for regulators, stakeholders, and academic scholars

The effect of corruption on microfinance loan portfolio: A semiparametric analysis

In this paper, we examine the extent to which corruption affects the loan portfolio of microfinance institutions (MFIs). We employ robust econometric estimation on a sample of 507 MFIs across 63 countries from 2005 to 2018. Our results show that corruption is negatively associated with the loan portfolio. However, in semiparametric analysis, we find that lower‐level corruption is beneficial to increase the loan portfolio while higher‐level corruption is detrimental. The results imply that it is not just corruption that matters as far as its effect on MFIs\u27 loan portfolio is concerned; what matters is the degree of corruption. In further analyses, we find that corruption reduces both the number of active borrowers and average loan per borrower indicating that corruption reduces both coverage and amount of credit extension. The results suggest that the effect of corruption on the loan portfolio is gender‐sensitive. Corruption facilitates an increase in loans to female borrowers. Our results are robust to alternative variable measurements and different identification strategies, including two‐stage least square

The asymmetric role of corporate governance in CEO pay determination: evidence from South Africa

© 2019, © 2019 Informa UK Limited, trading as Taylor & Francis Group. Previous studies suggest that CEOs may be incentivised to pursue actions aimed at restoring equity when pay deviates from the predicted CEO labour market compensation rate. This study investigates the effect of corporate governance (CG) quality on CEO pay deviation in an emerging economy characterised by weaker external corporate regulatory environment. Using a unique hand-collected data of 185 South African listed firms over a six-year period, We document that whereas CG quality impacts negatively on total CEO pay deviation, this is only conspicuous when the CEO is overpaid. CG quality has no effect on CEO compensation when the CEO is underpaid. We find that CEO underpayment reduces firm value in poorly-governed firms. In contrast, CEO overpayment has no effect on firm value irrespective of the level of CG quality. The findings imply that recent CEO pay level agitations have resulted in the design of CG mechanisms that reduces the tendency of CEO pay to adjust upwards. The results are robust to alternative econometric techniques and endogeneity concerns

Product differentiation, market dynamics and the value relevance of trade payables: Evidence from UK listed firms

This paper provides a comprehensive evidence on how product and market dynamics affect the value relevance of trade payables. Using a sample of 2559 UK listed firms over the period 2005–2014, we find a positive relationship between trade payables and firm performance. Our evidence suggests that trade payables increase (decrease) performance in firms with differentiated products and demand uncertainty (larger market share). We demonstrate that the relative value relevance of bank credit versus suppliers’ credit is dependent on the nature of the product, the level of sales volatility, and market share. We use an innovative approach to assess the robustness of our results to omitted variable bias

Buffer capital, loan portfolio quality and the performance of microfinance institutions: A global analysis

© 2019 Elsevier B.V. Using a sample of 625 microfinance institutions (MFI) across 40 countries from 2010 to 2015, we empirically examine the effect of buffer capital on the performance of MFIs and how this effect varies with loan portfolio quality. We find a negative relationship between buffer capital and MFIs’ performance. We further document that loan portfolio quality positively moderates the buffer capital-MFI performance relationship. We demonstrate that the buffer capital-loan portfolio quality relationship does not vary for deposit-taking, profit-making, and regulated MFIs. Our findings shed new light on the value relevance of capital in microfinance institutions. We use a novel approach to evaluate our results in light of the effects of omitted variable bias

Extent of Integration of Priority Interventions into General Health Systems: A Case Study of Neglected Tropical Diseases Programme in the Western Region of Ghana

Background The global health system has a large arsenal of interventions, medical products and technologies to address current global health challenges. However, identifying the most effective and efficient strategies to deliver these resources to where they are most needed has been a challenge. Targeted and integrated interventions have been the main delivery strategies. However, the health system discourse increasingly favours integrated strategies in the context of functionally merging targeted interventions with multifunctional health care delivery systems with a focus on strengthening country health systems to deliver needed interventions. Neglected Tropical Diseases (NTD) have been identified to promote and perpetuate poverty hence there has been global effort to combat these diseases. The Neglected Tropical Diseases Programme (NTDP) in Ghana has a national programme team and office, however, it depends on the multifunctional health delivery system at the regional and district level to implement interventions. The NTDP seeks further health system integration to accelerate achievement of coverage targets. The study estimated the extent of integration of the NTDP at the national, regional and district levels to provide evidence to guide further integration. Methodology/Principal Findings The research design was a descriptive case study that interviewed key persons involved in the programme at the three levels of the health system as well as extensive document review. Integration was assessed on two planes—across health system functions–stewardship and governance, financing, planning, service delivery, monitoring and evaluation and demand generation; and across three administrative levels of the health system–national, regional and district. A composite measure of integration designated Cumulative Integration Index (CII) with a range of 0.00–1.00 was used to estimate extent of integration at the three levels of the health system. Service delivery was most integrated while financing and planning were least integrated. Extent of integration was partial at all levels of the health system with a CII of 0.48–0.68; however it was higher at the district compared to the national and regional levels. Conclusions/Significance To ensure further integration of the NTDP, planning and finance management activities must be decentralized to involve regional and district levels of the health system. The study provides an empirical measure of extent of integration and indicators to guide further integration. Author Summary Two main strategies have been used to address diseases that affects large sections of populations. One strategy called targeted or vertical programme sets up separate system from the general health system with its own human resources, management, implementation, data reporting and evaluation systems. Integrated (also called horizontal) strategy on the other hand uses existing health system structures to implement activities to control target health problems. Integrated strategy is preferred because it strengthens country health systems. The Neglected Tropical Diseases Programme (NTDP) in Ghana has a dedicated management structure at the national level but uses general health system structures at the regional and district levels to implement activities. This study assessed the extent of integration of the NTDP into the health system at the national, regional and district levels. It was found that the NTDP activities were better integrated at the district compared to the regional and national levels of the health system. Furthermore, it also found that service delivery activities were most integrated while financing and planning activities were least integrated at all levels of the health system. These findings provide points to guide efforts to make the NTDP more integrated and can be applied to other health programmes

Corporate voluntary greenhouse gas reporting: Stakeholder pressure and the mediating role of the chief executive officer

© 2020 The Authors. Business Strategy and The Environment published by ERP Environment and John Wiley & Sons Ltd The study sheds light on the extent to which various stakeholder pressures influence voluntary disclosure of greenhouse gas (GHG) emissions and how the impact is explained and moderated chief executive officer (CEO) characteristics of 215 FTSE 350 listed U.K. companies for the year 2011. The study developed a classification of GHG emission disclosure based on the guidelines of GHG Protocol, Department for Environment, Food and Rural Affairs, and Global Framework for Climate Risk Disclosure using content analysis. Evidence from the study suggests that some stakeholder pressure (regulatory, creditor, supplier, customer, and board control) positively impacts on GHG disclosure information by firms. We found that stakeholder pressure in the form of regulatory, mimetic, and shareholders pressure positively influenced the disclosure of GHG information. We also found that creditor pressure also had a significant negative relationship with GHG disclosure. Although CEO age had a direct negative effect on GHG voluntary disclosure, its moderation effect on stakeholder pressure influence on GHG disclosure was only significant on regulatory pressure