Risk assessment in the context of internal audit in Greek listed companies at Athens stock exchange

The objective of this paper is to highlight the strength of risk assessment within the framework of internal audit and the value could be added to modern enterprises, through its role, as a major component in modern corporate governance. Reviewing literature we concluded in applying four logistic models (logit regression), using three sets of variables for fiscal year 2010. According to our estimations, risk assessment within the framework of internal audit is positively affected by the existence of a risk management committee, the board of directors' size, the percentage of non-executive members of the board, compliance risk and environmental and security risk. These findings are partially consistent with literature. In addition, it is not affected by any other kind of risk, entity’s size or subsidiaries and affiliated companies which do not match with literature. Possible explanatory factors could be either, that Greek Listed companies may be staffed with law skilled executives, or the rapid fall of the index in Athens Stock Exchange, after global recession of 2008. As far as we know there is no other research for Greek firms in risk assessment within the framework of internal audit. So, this paper contributes to research in this field.peer-reviewe

Cash and ownership on firms’ market value : evidence from Greek panel data

We implement panel data econometrics on non-linear empirical models to investigate how the firms’ market value is related with cash holdings and ownership concentration, on non-financial listed companies in Greece, before (2000-2009) and during the Eurozone crisis 2010-2015. It is confirmed the existence of an optimum level of cash (CASH) and the top 5 major shareholders ownership (OWN5) at which firms’ return on equity (ROE) has been maximized (concave function), especially over the crisis period and the total one. Yet, a convex function of the Tobin’s Q ratio (Q) on OWN5 has also been revealed significant for all sample periods. The findings support the tradeoff theory and the new kind of agency cost literature on expropriation effects of the minority by the majority. Interaction terms have also been found statistically significant, confirming that the special context of the Eurozone has influenced business, in the narrow Athens Stock Exchange (ASE). The estimated averages that maximize firms’ market values (for instance ROE), in relation to either CASH (0.83 of net assets, during the whole sample period 2000-’15, while 0.77 in the crisis one 2010-’15) or OWN5 (0.10 of equity, during 2000-’15, while 0.36 in the crisis one 2010-’15) could be useful for both investors and policy makers in Greece, a member-country of “sui generis” Eurozone, with an unsustainable public debt.peer-reviewe

Gender wage gap : evidence from the Hellenic maritime sector 1995-2002

Problem Statement: Gender wage gap has already been researched in the Hellenic (Greek) economy or within its public and private aggregate sectors, but, this was the first study ever done, especially for the maritime sector. Traditionally in Hellas, maritime industry income is the biggest one after tourism, while both industries covered approximately 30% of GDP or financed more than 35% of the trade balance deficit, during the last decade. We also investigated the correlation and dependence of wages (total, males, females) on attributes of the human capital theory, such as age, educational level and work experience. Approach: The data for the characteristics in question of the Hellenic maritime companies have been drawn from the European Structure of Earnings Surveys of 1995 and 2002 (Eurostat and National Statistical Service of Hellas). The statistical analysis comprised two steps; first, using summary statistics we described the relevant frequency distributions; second, the implemented non-parametric test-statistics (Mann-Whitney’s, Spearman’s rank correlation and 2-test of independence), answered the aforementioned questions, like, “is there any difference in the two populations?, e.g. male-hourly wage rate (HWR) against female-HWR, which is equivalent to “is there any gender pay gap?” or “what is the direction and the degree of linear relationship between, for instance, total HWR and the level of education?” or “are they independent of each other, e.g. males HWR and work experience?”. Results: The male-female wage distributions were not identical in 1995, so the discrimination was present, though, we did not find evidence of this gap in 2002. Hourly wage rate proved to be independent of educational level, while, dependent on work experience and age and for both latter characteristics, much more for females than for males. Conclusions/recommendations: The last results may explain the elimination of the gender pay gap at the end of the investigation period. Further research is needed so as to determine causal relationships.peer-reviewe

Translating the service quality gaps into strategy formulation : an experimental case study of a Greek academic department

The purpose of the current research is to develop a strategic service quality focused framework in a Greek Academic Department, translating its service quality (SQ) gaps into specific strategic directions from a “student-focused” perspective. The research is separated in two parts and follows the recommendations of Tan and Pawitra (2001), using various SQ measurement techniques and management tools. In the first part a SWOT analysis is conducted and a SWOT matrix is produced in order to assess the Department’s position, mission and vision as well as to construct the “Academic” questionnaires based on the SERVQUAL method and the Kano’s Model. The proposed questionnaires were applied in 180 undergraduate students. The second part incorporates the Quality Function Deployment (QFD) framework which is able to translate the customers’ voice (WHATs) into specific processes and measurable actions (HOWs), generating a realistic approach for successful management. The incorporation of SERVQUAL-Kano’s model in the QFD rated the importance of the WHATs, identifying the gaps which function as obstacles in the attainment of the Academic Department’s superior SQ. With the assistance of the SWOT matrix the main strategies of the Academic Department were generated, feeding the HOWs in the QFD. According to the findings, through the student priority level of SERVQUAL and Kano model, the most important SQ dimensions were found to be: Facilities/Equipment/Services, Abilities and Capabilities of Faculty, Educational/Course Content and Department’s Reliability and Reputation. Finally, with the assistance of QFD correlations, a set of strategic directions were proposed such as Accredited Programs, Proactive Partnerships with Corporations, Well-Maintained and Attractive Buildings etc.peer-reviewe

Is there a non-linear relationship of market value with cash and ownership?

The paper provides new evidence on the way that both the cash and ownership influence firms' market value in the Athens Stock Exchange (ASE) within the Eurozone (2000-2015). Based on corporate governance theory and critical analysis we use the dynamic panel data econometrics, in order to get consistent estimations of the impact of firms' cash and ownership upon either the return on equity or the Tobin's Q ratio. It is confirmed the dominance of the ownership pattern on these determinants of firms' value. Actually, we have found an inverse-U-shape value-ownership relationship, while practically, there's no-effect of cash on business efficiency. Unlike the previous studies, the findings support not only the interest alignment hypothesis, or the ownership could be a substitute for weak legal and institutional environment, but also the expropriation of outright majority ownership (large shareholder) against the minority one. In addition, the constantly changing optimal level of cash due to the unstable economic environment is a possible explanation of the insignificant cash variable. The estimated 40% of the equity as optimal level of ownership concentration maximizing market value of firms in the ASE could be useful for candidate investors

Does board gender diversity really improve firm performance? Evidence from Greek listed firms

In recent decades, the contribution of board gender diversity to corporate performance has drawn the interest of researchers, politicians and regulators. This paper examines whether board gender diversity affected the financial performance of 111 Greek listed firms from 2008 to 2020. We use the two-step system GMM estimator to address the endogeneity problem, which is the appropriate method used in governance literature. Our main empirical finding supports the existence of a positive relation between board gender diversity and firm performance. This finding remains robust to three different proxies of gender diversity and under two alternative performance measures, i.e., return on assets and Tobin's Q. We also find that there is an inverted U-shaped relation between the proportion of female directors and firm performance (measured by Tobin's Q). Moreover, we find that gender diversity could lead to maximization of corporate performance when female participation in the boardroom reaches 33%. Thus, the imposition of an ad-hoc 25% female representation in corporate boardrooms, dictated by the new Law 4706/2020 on corporate governance, could most probably be an underproductive policy. Our findings have practical implications for Greek regulators and legislators and contribute to the governance literature for the case of companies that operate in a small open economy

Does Board Gender Diversity Really Improve Firm Performance? Evidence from Greek Listed Firms

In recent decades, the contribution of board gender diversity to corporate performance has drawn the interest of researchers, politicians and regulators. This paper examines whether board gender diversity affected the financial performance of 111 Greek listed firms from 2008 to 2020. We use the two-step system GMM estimator to address the endogeneity problem, which is the appropriate method used in governance literature. Our main empirical finding supports the existence of a positive relation between board gender diversity and firm performance. This finding remains robust to three different proxies of gender diversity and under two alternative performance measures, i.e., return on assets and Tobin’s Q. We also find that there is an inverted U-shaped relation between the proportion of female directors and firm performance (measured by Tobin’s Q). Moreover, we find that gender diversity could lead to maximization of corporate performance when female participation in the boardroom reaches 33%. Thus, the imposition of an ad-hoc 25% female representation in corporate boardrooms, dictated by the new Law 4706/2020 on corporate governance, could most probably be an underproductive policy. Our findings have practical implications for Greek regulators and legislators and contribute to the governance literature for the case of companies that operate in a small open economy