CEO compensation and performance evaluation has become a highly contention issue in the business world. Several
factors appear to be behind the image problem but the uppermost is the dramatic increase in CEO reward in recent
decade. Wage efficiency theory argues higher compensation would increase the performance but on the evaluation of
CEO performance many issues are faced in selecting performance measurement indicators. The purpose of this paper
is to extend discussions in evaluating the CEO performance in research domain. Based on agency theory, the model
of this research is developed. The cross-sectional data was collected by questionnaires. By applying regression
model, this study revealed that independent directors and female directors on the use of non-financial measures in
CEO performance evaluation, are found to be positively associated with the use of non-financial measures which
reinforce the findings of prior studies in regarding their influence on the use of non-financial measures in CEO and
corporate performance evaluation. The ratio of female directors on the BOD is significantly and positively associated
with the use of non-financial measures in the evaluation of CEO performance. This study contributes economically,
socially and politically
This document summarizes a study that examined the effects of internal factors and stock ownership structure on dividend policy and company value for manufacturing companies listed on the Indonesia Stock Exchange between 2005-2010. The study found that: (1) free cash flow, company size, and return on equity influence dividend policy and company value in different ways; (2) debt, asset growth, and financial risk affect both dividend policy and company value; (3) managerial ownership does not affect dividend policy but does affect company value, while institutional ownership positively influences both; and (4) dividend policy positively impacts company value. The study used factors like cash flow, size, debt, growth, and ownership structure to analyze their relationship with dividend policy and company
Effects of balanced scorecard on performance of firms in the service sectorAlexander Decker
This study examined the effects of the Balanced Scorecard (BSC) on performance in firms in the service sector in Kakamega Municipality, Kenya. A survey of 200 service firms found that the BSC integrates both financial and non-financial performance measures across four perspectives: financial, customer, internal processes, and innovation and learning. The study revealed that non-financial criteria are as important as financial criteria in measurement systems and that integrating both measures leads to superior results. Common methods firms used to enhance employees' skills and performance included training, better rewards, team building, and employee participation in decision making.
Hay Associates developed a job evaluation system called the Hay System to help Megalith determine equitable compensation. The Hay System evaluates jobs based on three factors: know-how, problem solving, and accountability. It provides a systematic approach to measure relative job content and compare compensation based on job content rather than titles. While it helps establish clear career paths and pay structures, it is also complicated, emphasizes management know-how, and may be biased or not address team-based roles. Megalith used the Hay System to analyze its finance group and address issues around compensation not matching performance.
This document discusses strategic environmental scanning and its impact on organizational performance. It analyzes two companies - Nestle Nigeria Plc and Cadbury Nigeria Plc - to understand this relationship. The findings show that 30% of variations in effective organizational performance and productivity are caused by variations in strategic environmental scanning and external environmental factors respectively. Thus, strategic environmental scanning helps companies identify opportunities to seize and threats to avoid, leading to improved profitability. The document recommends that organizations strategically and continuously scan their environment to stay aware of changing political, economic, social, technological and other external factors impacting their business.
This document discusses strategic management and the strategic management process. It defines strategic management as consisting of analysis, decisions, and actions to create and sustain competitive advantages. It then outlines the six steps of the strategic management process as identifying the organization's mission and objectives, conducting external and internal analysis including a SWOT analysis, formulating strategies, implementing strategies, and evaluating results. It emphasizes that strategic management directs the organization towards goals, involves stakeholders, and considers both short-term and long-term perspectives.
The document summarizes a study that examined the influence of top management team (TMT) characteristics on the performance of companies listed on the Nairobi Securities Exchange. The study found a moderate positive relationship between TMT characteristics (functional background, tenure, age, gender, education) and company performance. Specifically, it was found that functional background had the strongest influence on performance, followed by education, tenure, gender, and age. The results support the theory that TMT characteristics impact strategic decision-making and innovation, thereby affecting company performance. The study concludes that appointing TMT members with relevant values, qualifications, and characteristics is important for driving business success.
Determining project performance the role of training and compensationAlexander Decker
This document discusses a study that assessed whether training and compensation of project team members are linked to project performance. The study collected data from 73 employees working on a project in Pakistan. Exploratory factor analysis and reliability testing were conducted on the data. Path analysis using structural equation modeling found that both training and compensation of project team members were positively associated with project performance. The document reviews literature supporting the relationships between training/compensation and performance, and proposes hypotheses that training and compensation would positively impact project performance.
The Influence of Corporate Governance and Corporate Social Responsibility on...inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
This document summarizes a study that examined the effects of internal factors and stock ownership structure on dividend policy and company value for manufacturing companies listed on the Indonesia Stock Exchange between 2005-2010. The study found that: (1) free cash flow, company size, and return on equity influence dividend policy and company value in different ways; (2) debt, asset growth, and financial risk affect both dividend policy and company value; (3) managerial ownership does not affect dividend policy but does affect company value, while institutional ownership positively influences both; and (4) dividend policy positively impacts company value. The study used factors like cash flow, size, debt, growth, and ownership structure to analyze their relationship with dividend policy and company
Effects of balanced scorecard on performance of firms in the service sectorAlexander Decker
This study examined the effects of the Balanced Scorecard (BSC) on performance in firms in the service sector in Kakamega Municipality, Kenya. A survey of 200 service firms found that the BSC integrates both financial and non-financial performance measures across four perspectives: financial, customer, internal processes, and innovation and learning. The study revealed that non-financial criteria are as important as financial criteria in measurement systems and that integrating both measures leads to superior results. Common methods firms used to enhance employees' skills and performance included training, better rewards, team building, and employee participation in decision making.
Hay Associates developed a job evaluation system called the Hay System to help Megalith determine equitable compensation. The Hay System evaluates jobs based on three factors: know-how, problem solving, and accountability. It provides a systematic approach to measure relative job content and compare compensation based on job content rather than titles. While it helps establish clear career paths and pay structures, it is also complicated, emphasizes management know-how, and may be biased or not address team-based roles. Megalith used the Hay System to analyze its finance group and address issues around compensation not matching performance.
This document discusses strategic environmental scanning and its impact on organizational performance. It analyzes two companies - Nestle Nigeria Plc and Cadbury Nigeria Plc - to understand this relationship. The findings show that 30% of variations in effective organizational performance and productivity are caused by variations in strategic environmental scanning and external environmental factors respectively. Thus, strategic environmental scanning helps companies identify opportunities to seize and threats to avoid, leading to improved profitability. The document recommends that organizations strategically and continuously scan their environment to stay aware of changing political, economic, social, technological and other external factors impacting their business.
This document discusses strategic management and the strategic management process. It defines strategic management as consisting of analysis, decisions, and actions to create and sustain competitive advantages. It then outlines the six steps of the strategic management process as identifying the organization's mission and objectives, conducting external and internal analysis including a SWOT analysis, formulating strategies, implementing strategies, and evaluating results. It emphasizes that strategic management directs the organization towards goals, involves stakeholders, and considers both short-term and long-term perspectives.
The document summarizes a study that examined the influence of top management team (TMT) characteristics on the performance of companies listed on the Nairobi Securities Exchange. The study found a moderate positive relationship between TMT characteristics (functional background, tenure, age, gender, education) and company performance. Specifically, it was found that functional background had the strongest influence on performance, followed by education, tenure, gender, and age. The results support the theory that TMT characteristics impact strategic decision-making and innovation, thereby affecting company performance. The study concludes that appointing TMT members with relevant values, qualifications, and characteristics is important for driving business success.
Determining project performance the role of training and compensationAlexander Decker
This document discusses a study that assessed whether training and compensation of project team members are linked to project performance. The study collected data from 73 employees working on a project in Pakistan. Exploratory factor analysis and reliability testing were conducted on the data. Path analysis using structural equation modeling found that both training and compensation of project team members were positively associated with project performance. The document reviews literature supporting the relationships between training/compensation and performance, and proposes hypotheses that training and compensation would positively impact project performance.
The Influence of Corporate Governance and Corporate Social Responsibility on...inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
Performance Related Pay - Is it fair, transparent, behaviour-changing?Hedda Bird
A presentation designed to help HR professionals understand how Performance Related Pay can reward effort, support talent management and re-think the way the organisation rewards its people
strategic factors in organisational analysisEr Sharma
This document discusses various factors that impact corporate strategy for different business functions. It outlines strengths and weaknesses for production/operations, finance, marketing, human resources, information systems, general management, and research and development. For each function, it identifies relevant factors and lists examples of potential strengths and weaknesses an organization may have.
Equity theory proposes that individuals judge the fairness of their outcomes and inputs relative to the outcomes and inputs of others. When individuals perceive inequity, they may feel distressed and be motivated to restore equity.
The case study examines issues with executive compensation at a large bank. Equity theory suggests executives likely compared their compensation to others inside and outside the company. However, the board failed to properly consider all relevant referents when setting pay. This likely led to perceptions of inequity.
Procedural justice principles also were not fully followed in determining compensation. To promote motivation and fairness, organizations should structure executive pay to link it to firm performance while avoiding a focus only on short-term gains. Government intervention in compensation risks
This document discusses the balanced scorecard (BSC) approach to measuring organizational performance. It provides background on BSC, noting that it integrates financial and non-financial metrics to help organizations translate strategy into tangible objectives. The document then outlines the typical phases of BSC implementation, including strategy synthesis, measure synthesis, technical implementation, organizational integration, technical integration, and ongoing operation. It also discusses linking department-level BSCs to the overall organizational BSC and strategy. Finally, the document reviews prior literature on BSC and performance measurement.
This document discusses various methods organizations use to recognize employee contributions through pay, including merit pay, individual incentives, profit sharing, ownership, gainsharing, group incentives, and balanced scorecards. It describes theories around how compensation influences individual performance and issues around executive pay. Effective pay strategies consider factors like the organization's goals, risk tolerance, and whether work is individual or team-based. Both financial rewards and communication are important for motivating employees.
Environmental analysis - strategic management - Manu Melwin Joymanumelwin
Why Does the Environment Matter?
First, the environment provides resources that an organization needs in order to create goods and services.
Second, the environment is a source of opportunities and threats for an organization.
Third, the environment shapes the various strategic decisions that executives make as they attempt to lead their organizations to success.
Effect of managerial ownership, financial leverage, profitability, firm size,...Alexander Decker
- The document discusses a study that examined the effect of various firm characteristics (managerial ownership, financial leverage, profitability, firm size, and investment opportunity) on dividend policy and firm value.
- The study found that managerial ownership and investment opportunity significantly affect dividend policy, while financial leverage, profitability, and firm size do not significantly affect dividend policy.
- The study also found that all the firm characteristics, as well as dividend policy, significantly affect firm value.
This document provides an overview of various environmental analysis techniques:
STEEPLED analysis is used to identify attributes of key external factors (social, technological, economic, environmental, political, legal, ethical, demographic) that can impact an organization. Each factor is analyzed to determine its implications and impact over time.
Scenario analysis involves developing potential future scenarios based on trends and uncertainties, and evaluating their implications.
Issue analysis examines issues in detail without focusing on other issues. It identifies background, alternatives, evaluation criteria, and impact of each alternative to recommend a course of action.
Stakeholder analysis identifies the interests, relationships, and potential implications of action for relevant stakeholders, to determine what an organization needs to
The document discusses various types of organizational control systems including feedforward, concurrent, and feedback control. It describes how these different control systems can be used to anticipate problems, monitor ongoing processes, and evaluate outputs. Specific examples are given of how different organizations implement various control strategies like budgeting, quality management programs, and financial reporting.
The document discusses executive compensation, including its purposes and typical elements. It aims to attract, retain, and motivate executives. Compensation usually includes salary, bonuses, stock options, and benefits. Critics argue CEO pay has increased much more than average workers' pay, with CEOs now earning 263 times a typical worker versus only 8 times in the 1950s. Questions are raised around using peer benchmarks and whether the government should regulate compensation. Performance-based pay may better motivate executives if tied closely to firm performance.
Here are some potential responses students could provide:
1. Describe your role and responsibilities in the organization.
- I was an intern in the accounting department. My main responsibilities included assisting with monthly financial reporting, analyzing variances between budget and actual results, and preparing forecasts.
2. What types of managerial accounting information did you use in your role?
- I used budget reports, income statements, balance sheets, and cash flow statements to analyze financial performance and identify areas for improvement. I also looked at cost reports and analyzed overhead allocation.
3. How did the managerial accounting information help managers make decisions?
- The financial reports helped identify areas where costs were higher than expected so managers could take
Strategic Management Accounting for Business and Career SuccessKen Witt
Identifies the skills and competencies that accountants need in order to contribute to the strategic success of their employer in a complex, global business environment.
This document discusses environmental scanning and analysis for organizations. It defines the environment as all external factors that influence an organization. It describes doing a SWOT analysis to understand internal strengths and weaknesses as well as external opportunities and threats. It outlines different environmental sectors including economic, political, technological, and socio-cultural factors. It recommends that organizations systematically monitor their environment to identify threats and opportunities for strategic decision making. Environmental scanning approaches include systematic ongoing monitoring, ad-hoc studies, and using processed information from external sources.
The document discusses the strategic management process and environmental scanning. It describes the external environment as consisting of the societal environment made up of PEST factors (political, economic, social, technological), and the task environment including stakeholders. The internal environment includes analyzing a company's strengths, weaknesses, opportunities, and threats. Environmental scanning involves analyzing these external and internal factors. Strategies are then formulated using SWOT analysis and considering strategic groups within the industry.
The document discusses key concepts in strategic management including:
1) Strategic management involves setting long-term plans to manage opportunities/threats based on strengths/weaknesses and determining corporate performance.
2) The strategic management process includes environmental scanning, strategy formulation, implementation, and evaluation.
3) Strategic flexibility and becoming a learning organization are important for adapting to changing environments.
4) Different levels of strategy include corporate, business unit, and functional strategies.
The document provides an overview of key concepts in strategic management, including:
1. Strategic management involves formulating, implementing, and evaluating cross-functional decisions to achieve organizational objectives.
2. The strategic management process includes developing a vision/mission, assessing external opportunities/threats and internal strengths/weaknesses, setting long-term objectives, and selecting/implementing strategies.
3. Benefits of strategic management include improved financial performance, enhanced problem solving, and better coordination.
Supermarkets have strong bargaining power over Coca-Cola as they:
- Buy in large volumes
- Control access to end customers
- Can threaten to stock substitute/competitor brands
- Have the ability to negotiate lower prices
Therefore, supermarkets can demand lower prices or better trade deals from Coca-Cola compared to smaller retail channels like convenience stores or soda shops. This gives supermarkets strong buyer power over Coca-Cola in the distribution channel. Meeting their demands impacts Coca-Cola's profits.
This summary analyzes a research document about earnings management and the impact on the relevance of accounting information like earnings and book value:
1. The study examines how earnings management through short-term discretionary accruals, long-term discretionary accruals, and total discretionary accruals impacts the relevance of earnings and book value using a sample of 822 listed companies in Indonesia from 2013-2015.
2. The researcher aims to test if earnings management reduces the relevance of earnings while increasing the relevance of book value, and also to determine if short-term vs long-term discretionary accruals have different effects.
3. Previous studies have shown mixed results on the impact of earnings management
5s Implementation Affect Company PerformanceMilan663669
5S can be viewed as a system of workplace rules devised to create a safe and productive work environment and to provide efficient and effective realization of business tasks. Its implementation is expected to reduce defects, improve quality, increase safety and the morale of the employees, and improve employees' productivity. In the present paper, over the period of seven years, we investigate the case of a rubber goods manufacturer from Serbia which has implemented 5S in one of its subsidiaries. To assess the effects of the 5S implementation we use operational and financial performance indicators. Our results suggest that the implementation of 5S can contribute to performance of an organization in the short and medium term. In the case we analyze here, effects of 5S were not evident in longer term due to the influence of some external factors (increase in raw material prices and decrease in purchasing power of demand) and strong investment activity of the subsidiary. We argue that the performance of the subsidiary under the influence of these factors would be weaker if it did not implement 5S. In addition, subsidiary in our study implemented TDABC to make possible preparation of reports important for efficient decision making in the new business environment. This finding points to the importance of the management accounting system improvements after the continuous improvements implementation.
This document discusses methods for measuring corporate performance, including the balanced scorecard and stakeholder measures. It outlines the advantages and limitations of each. The balanced scorecard takes a holistic view across four perspectives: learning and growth, internal business processes, customers, and financials. It aims to align business activities with organizational strategy but can fail if not properly communicated. Stakeholder measures evaluate performance based on key stakeholder groups' priorities but balancing different stakeholders' interests can be challenging. The document provides an in-depth examination of these two approaches to corporate performance assessment.
Performance Related Pay - Is it fair, transparent, behaviour-changing?Hedda Bird
A presentation designed to help HR professionals understand how Performance Related Pay can reward effort, support talent management and re-think the way the organisation rewards its people
strategic factors in organisational analysisEr Sharma
This document discusses various factors that impact corporate strategy for different business functions. It outlines strengths and weaknesses for production/operations, finance, marketing, human resources, information systems, general management, and research and development. For each function, it identifies relevant factors and lists examples of potential strengths and weaknesses an organization may have.
Equity theory proposes that individuals judge the fairness of their outcomes and inputs relative to the outcomes and inputs of others. When individuals perceive inequity, they may feel distressed and be motivated to restore equity.
The case study examines issues with executive compensation at a large bank. Equity theory suggests executives likely compared their compensation to others inside and outside the company. However, the board failed to properly consider all relevant referents when setting pay. This likely led to perceptions of inequity.
Procedural justice principles also were not fully followed in determining compensation. To promote motivation and fairness, organizations should structure executive pay to link it to firm performance while avoiding a focus only on short-term gains. Government intervention in compensation risks
This document discusses the balanced scorecard (BSC) approach to measuring organizational performance. It provides background on BSC, noting that it integrates financial and non-financial metrics to help organizations translate strategy into tangible objectives. The document then outlines the typical phases of BSC implementation, including strategy synthesis, measure synthesis, technical implementation, organizational integration, technical integration, and ongoing operation. It also discusses linking department-level BSCs to the overall organizational BSC and strategy. Finally, the document reviews prior literature on BSC and performance measurement.
This document discusses various methods organizations use to recognize employee contributions through pay, including merit pay, individual incentives, profit sharing, ownership, gainsharing, group incentives, and balanced scorecards. It describes theories around how compensation influences individual performance and issues around executive pay. Effective pay strategies consider factors like the organization's goals, risk tolerance, and whether work is individual or team-based. Both financial rewards and communication are important for motivating employees.
Environmental analysis - strategic management - Manu Melwin Joymanumelwin
Why Does the Environment Matter?
First, the environment provides resources that an organization needs in order to create goods and services.
Second, the environment is a source of opportunities and threats for an organization.
Third, the environment shapes the various strategic decisions that executives make as they attempt to lead their organizations to success.
Effect of managerial ownership, financial leverage, profitability, firm size,...Alexander Decker
- The document discusses a study that examined the effect of various firm characteristics (managerial ownership, financial leverage, profitability, firm size, and investment opportunity) on dividend policy and firm value.
- The study found that managerial ownership and investment opportunity significantly affect dividend policy, while financial leverage, profitability, and firm size do not significantly affect dividend policy.
- The study also found that all the firm characteristics, as well as dividend policy, significantly affect firm value.
This document provides an overview of various environmental analysis techniques:
STEEPLED analysis is used to identify attributes of key external factors (social, technological, economic, environmental, political, legal, ethical, demographic) that can impact an organization. Each factor is analyzed to determine its implications and impact over time.
Scenario analysis involves developing potential future scenarios based on trends and uncertainties, and evaluating their implications.
Issue analysis examines issues in detail without focusing on other issues. It identifies background, alternatives, evaluation criteria, and impact of each alternative to recommend a course of action.
Stakeholder analysis identifies the interests, relationships, and potential implications of action for relevant stakeholders, to determine what an organization needs to
The document discusses various types of organizational control systems including feedforward, concurrent, and feedback control. It describes how these different control systems can be used to anticipate problems, monitor ongoing processes, and evaluate outputs. Specific examples are given of how different organizations implement various control strategies like budgeting, quality management programs, and financial reporting.
The document discusses executive compensation, including its purposes and typical elements. It aims to attract, retain, and motivate executives. Compensation usually includes salary, bonuses, stock options, and benefits. Critics argue CEO pay has increased much more than average workers' pay, with CEOs now earning 263 times a typical worker versus only 8 times in the 1950s. Questions are raised around using peer benchmarks and whether the government should regulate compensation. Performance-based pay may better motivate executives if tied closely to firm performance.
Here are some potential responses students could provide:
1. Describe your role and responsibilities in the organization.
- I was an intern in the accounting department. My main responsibilities included assisting with monthly financial reporting, analyzing variances between budget and actual results, and preparing forecasts.
2. What types of managerial accounting information did you use in your role?
- I used budget reports, income statements, balance sheets, and cash flow statements to analyze financial performance and identify areas for improvement. I also looked at cost reports and analyzed overhead allocation.
3. How did the managerial accounting information help managers make decisions?
- The financial reports helped identify areas where costs were higher than expected so managers could take
Strategic Management Accounting for Business and Career SuccessKen Witt
Identifies the skills and competencies that accountants need in order to contribute to the strategic success of their employer in a complex, global business environment.
This document discusses environmental scanning and analysis for organizations. It defines the environment as all external factors that influence an organization. It describes doing a SWOT analysis to understand internal strengths and weaknesses as well as external opportunities and threats. It outlines different environmental sectors including economic, political, technological, and socio-cultural factors. It recommends that organizations systematically monitor their environment to identify threats and opportunities for strategic decision making. Environmental scanning approaches include systematic ongoing monitoring, ad-hoc studies, and using processed information from external sources.
The document discusses the strategic management process and environmental scanning. It describes the external environment as consisting of the societal environment made up of PEST factors (political, economic, social, technological), and the task environment including stakeholders. The internal environment includes analyzing a company's strengths, weaknesses, opportunities, and threats. Environmental scanning involves analyzing these external and internal factors. Strategies are then formulated using SWOT analysis and considering strategic groups within the industry.
The document discusses key concepts in strategic management including:
1) Strategic management involves setting long-term plans to manage opportunities/threats based on strengths/weaknesses and determining corporate performance.
2) The strategic management process includes environmental scanning, strategy formulation, implementation, and evaluation.
3) Strategic flexibility and becoming a learning organization are important for adapting to changing environments.
4) Different levels of strategy include corporate, business unit, and functional strategies.
The document provides an overview of key concepts in strategic management, including:
1. Strategic management involves formulating, implementing, and evaluating cross-functional decisions to achieve organizational objectives.
2. The strategic management process includes developing a vision/mission, assessing external opportunities/threats and internal strengths/weaknesses, setting long-term objectives, and selecting/implementing strategies.
3. Benefits of strategic management include improved financial performance, enhanced problem solving, and better coordination.
Supermarkets have strong bargaining power over Coca-Cola as they:
- Buy in large volumes
- Control access to end customers
- Can threaten to stock substitute/competitor brands
- Have the ability to negotiate lower prices
Therefore, supermarkets can demand lower prices or better trade deals from Coca-Cola compared to smaller retail channels like convenience stores or soda shops. This gives supermarkets strong buyer power over Coca-Cola in the distribution channel. Meeting their demands impacts Coca-Cola's profits.
This summary analyzes a research document about earnings management and the impact on the relevance of accounting information like earnings and book value:
1. The study examines how earnings management through short-term discretionary accruals, long-term discretionary accruals, and total discretionary accruals impacts the relevance of earnings and book value using a sample of 822 listed companies in Indonesia from 2013-2015.
2. The researcher aims to test if earnings management reduces the relevance of earnings while increasing the relevance of book value, and also to determine if short-term vs long-term discretionary accruals have different effects.
3. Previous studies have shown mixed results on the impact of earnings management
5s Implementation Affect Company PerformanceMilan663669
5S can be viewed as a system of workplace rules devised to create a safe and productive work environment and to provide efficient and effective realization of business tasks. Its implementation is expected to reduce defects, improve quality, increase safety and the morale of the employees, and improve employees' productivity. In the present paper, over the period of seven years, we investigate the case of a rubber goods manufacturer from Serbia which has implemented 5S in one of its subsidiaries. To assess the effects of the 5S implementation we use operational and financial performance indicators. Our results suggest that the implementation of 5S can contribute to performance of an organization in the short and medium term. In the case we analyze here, effects of 5S were not evident in longer term due to the influence of some external factors (increase in raw material prices and decrease in purchasing power of demand) and strong investment activity of the subsidiary. We argue that the performance of the subsidiary under the influence of these factors would be weaker if it did not implement 5S. In addition, subsidiary in our study implemented TDABC to make possible preparation of reports important for efficient decision making in the new business environment. This finding points to the importance of the management accounting system improvements after the continuous improvements implementation.
This document discusses methods for measuring corporate performance, including the balanced scorecard and stakeholder measures. It outlines the advantages and limitations of each. The balanced scorecard takes a holistic view across four perspectives: learning and growth, internal business processes, customers, and financials. It aims to align business activities with organizational strategy but can fail if not properly communicated. Stakeholder measures evaluate performance based on key stakeholder groups' priorities but balancing different stakeholders' interests can be challenging. The document provides an in-depth examination of these two approaches to corporate performance assessment.
The Influence of the Audit Committee, the Board of Commissioners, And Institu...AJHSSR Journal
ABSTRACT : This research was conducted to determine the supporting factors that influence company
performance based on agency theory with corporate governance variables. This study uses secondary data,
namely banking companies listed on the Indonesia Stock Exchange (IDX) in 2019-2021. The population in this
study was 45 companies. Using a purposive sampling method, with a total sample of 26 companies for 3 years.
Methods of data analysis using multiple linear regression. Based on the results of the study it was concluded that
the variables of the audit committee and the board of commissioners have a positive effect on company
performance, while ownership has no effect on company performance.
KEYWORDS: Audit Committee, Board of Commissioners, Institutional Share Ownership, Tobin's Q
Key performance ratios indicate the underlying level of performance and health of the enterprise. Therefore,
understanding the components of the final accounts and their performance ratios is important because of the crucial
nature of ROE. Even though PRA represents one of the best ways to compare the performance of a business and its
peers in the same industry it could be highly distorted due to taxation challenges, hidden gains or losses as well as
the issues of window-dressing. Generally, ratios look at the path an enterprise appears to be moving towards as well
as its recent performance and current financial situation so as to guide management actions with the aim of
enhancing ME. The exploratory research design was used for the study. There were 66 participants in the study and
data were collected from both primary and secondary sources. The multiple method of data generation made it
possible for data of the study to be compared and contrasted with each other. Data were analyzed through descriptive
and regression statistical methods. The result showed a strong positive correlation between PRA and ME. The study
was not exhaustive; therefore, further study could examine the relationship between PRA and Trade Debt in Nigeria
as a way of helping firms chart a way of meeting their debt obligations. On the basis of the result of this study it was
suggested that management of companies should institutionalize effective PRA mechanism adequate enough to track performance at regular intervals.
The document presents a conceptual model for performance measurement systems (PMS) with the following key points:
1) It outlines the main stages in developing and maintaining an effective PMS: design, implementation, use, review, and learning.
2) Within each stage, it provides recommendations from literature on important actions organizations should take, such as aligning the PMS with strategy, defining appropriate measures, and systematically reviewing results.
3) A conceptual model is proposed to guide organizations through the PMS process, listing actions for each stage to prevent critical steps from being missed.
4) The goal is for the conceptual model and literature review to facilitate both creating and improving an organization's PMS over time
Potential Big Bath Accounting Practice in CEO Changes (Study on Manufacturing...Mercu Buana University
This Research aims to compare the earnings management which is big bath accounting model while CEO Changes in Indonesia. This research is using Secondary data which is Financial Statement from the Indonesian Stock Exchange. CEO change is classified either as routine or non-routine based on RUPS (General Shareholders Meeting) and RUPSLB (Extraordinary General Shareholders Meeting) information. The purposive sampling was used in this research by sampling 14 listed company of CEO Change non-routine and 34 listed company of CEO Change routine. These samples are observed from 2004 to 2014. To identify the big bath accounting practice. Although CEO Change non-routine made a high correlation in this study, the study provides there is no difference in earnings management big bath accounting model while CEO Changes between routine and non-routine changes.
The present study aimed to examine the effect of the entrepreneurial orientation (EO) on organizational performance (OP). This study was motivated by the mixed findings in literature regarding the relationships between EO and organizational performance. Owing to the mixed results, a novel stream of research was created and this motivated further examining of the impact of other variables that may shed a light on the nature of the relationship. Several theories have been proposed in literature posit the direct relationships among strategies, resources and capabilities as antecedents of success. In this study, copies of questionnaires were distributed to 300 Libyan banks branches, where 200 copies of questionnaires were returned and analyzed. The proposed hypothesis was tested through PLS-SEM and the study results showed that EO positively predicted organizational performance.
This document summarizes a research study that analyzed the impact of good corporate governance and financial performance on predicting financial distress using a modified Altman Z-score model. The study used secondary data from 169 manufacturing companies in Indonesia. It developed a financial distress prediction model by adding factors like managerial ownership, institutional ownership, and financial ratios to the original Altman Z-score model. Based on the results, managerial ownership, institutional ownership, debt ratio, return on equity, retained earnings to total assets, earnings before interest tax to total assets, and return on assets were found to have a large impact on predicting financial distress. The modified model was found to perform better than the original Altman Z-score model according to statistical tests.
The document discusses measuring organizational performance through a holistic framework. It examines existing performance measurement models like the balanced scorecard, performance pyramid, performance prism, and action-profit linkage model. These models share similarities like linking customer satisfaction to organizational performance. The document outlines challenges to effective performance measurement like organizational resistance, poorly chosen measures, and lack of data availability. It emphasizes the importance of measuring the right things through a collaborative process and communicating measurements to align performance across departments.
This study examines the impact of corporate governance and investor confidence on earnings management of firms listed on the Stock Exchange of Thailand. It uses annual data from 2015 for a sample of 408 Thai listed companies, excluding financial firms. Structural equation modeling is used to analyze the direct and indirect relationships between variables. Corporate governance factors examined include the largest shareholder, CEO duality, institutional ownership, board size, and auditor (Big 4 firm). Earnings management is measured using discretionary accruals. Investor confidence is represented by return on equity. The results found that the largest shareholder influences earnings management and investor confidence the most. Institutional ownership influences both earnings management and investor confidence. Having a Big 4 auditor influences investor confidence. However,
A proposed model of balance score cards for enterprise governanceAlexander Decker
This document proposes a model for a balanced scorecard approach to enterprise governance. It begins by defining enterprise governance and discussing existing governance frameworks. It then reviews balanced scorecards, which use financial and non-financial metrics across four perspectives - financial, customer, internal processes, and learning and growth. The document suggests that a balanced scorecard could provide a framework to evaluate an enterprise's governance across conformance with standards and policies, as well as performance and strategic objectives. It proposes testing a model that applies the balanced scorecard approach to comprehensively assess an enterprise's governance arrangements and outcomes.
11.a proposed model of balance score cards for enterprise governanceAlexander Decker
This document proposes a model for balanced scorecards for enterprise governance. It consists of two parts:
1. The conformance balanced scorecard with 5 dimensions: financial indicators, customer satisfaction, operations systems, employee factors, and compliance.
2. The performance balanced scorecard with 6 dimensions: SWOT analysis, strategy implementation, technology needs, HR decisions, mergers and acquisitions, and risk management.
The model is intended to help boards of directors evaluate enterprise governance in terms of both accountability (conformance) and value creation (performance). It draws on prior literature discussing balanced scorecards and their use in assessing strategic decision making, resource allocation, and risk management at the enterprise level.
[24508829 - Central European Management Journal] The Effect of Corporate Gove...IslanMuza
This document summarizes a study analyzing the influence of corporate governance mechanisms on the financial performance of manufacturing companies listed on the Indonesia Stock Exchange. Specifically, it examines the effects of board of directors size, audit committee size, institutional ownership, and managerial ownership. The results found that board of directors size had a positive effect on performance, while the other factors had no effect individually. However, when analyzed together the four factors did influence performance. The study adds to the literature on corporate governance and performance in emerging markets.
Performance management is important for bank profitability in Nigeria. It ensures that employee contributions are directed towards organizational growth and profitability. Performance management embraces key financial performance indicators like return on assets, return on equity, and net interest margin that help drive bank profitability. The study found that performance management has a positive correlation with bank profitability in Nigeria. Banks should regularly monitor performance to ensure continued profitability.
Utilizing the BSC and EFQM as a Combination Framework; Scrutinizing the Possi...Waqas Tariq
Increasing the competition between organizations in the field of productions and services leads them to use the samples and patterns to assess their activities and performance. Appearing this kind of needs and inefficiency of measuring systems with traditional activities assessment causes to create new models of activities assessment in organizations. These models could be divided in two groups. The first group is based on self assessment and the second group is based on measurement and improvement of business trade process. Among mentioned models, Balanced score Card (BSC) and European Foundation for Quality Management (EFQM) have had more chance to be used by many companies. Regarding the high acceptance of these two models in the world and existence many similarities between them; this study is going to present exact glance of these two models and present a comparison between them. Moreover, after recognizing the weaknesses and powers of them, the possibility of using them at the same time will be evaluated. In order to gain this goal, an automobile company’s performance has been assessed based on BSC and EFQM and the results are analyzed with TOPSIS method.
The document discusses the adoption and use of the Balanced Scorecard performance measurement tool in Indian companies. It finds that around 45% of corporate India has adopted the Balanced Scorecard, which is comparable to its adoption rate in the US. Indian companies tend to focus most on the financial perspective but also include other perspectives like customers, internal processes, and learning/growth. The document evaluates the key benefits and challenges of implementing the Balanced Scorecard in Indian firms.
The document analyzes how ownership structure, capital structure, dividends, and auditors impact firm performance. It presents a literature review on relevant theories and concepts, and describes the research methodology used. The study uses secondary data from 32 Indonesian manufacturing firms between 2016-2019. It measures firm performance using Tobin's Q and earnings per share, and tests the impact of independent variables while controlling for firm age, size, and earnings per share. Preliminary results found no autocorrelation or multicollinearity issues in the data.
The effects of corporate governance on company performance evidence from sri ...Alexander Decker
This document examines the relationship between corporate governance and company performance in Sri Lanka's financial services industry from 2008-2011. It reviews literature showing mixed results on relationships between governance factors like board size/composition and performance measures like return on assets/equity. The study analyzes 20 randomly selected banks/insurers, finding no significant relationships between governance variables and performance. This is consistent with prior Sri Lankan research finding corporate governance does not affect financial performance metrics.
Although performance appraisal is concerned with the evaluation of workers job performance, it at the same time serves to highlight the specific objectives of an organization. As the employee is being evaluated the organization is also evaluating itself by comparing objectives and standards of performance, reviews the whole appraisal framework and design as well as organizational values and culture. Performance appraisal is a veritable tool for organizations to evaluate and increase the quality of education and training of their workforce with a view to developing lifelong learning patterns and strategies to sustain productivity throughout longer working periods. Motivation as it relates to employee productivity is often behind the drive for performance and self-actualization and provides opportunities for higher productivity. Productivity is an important measure of goal achievement because getting more done with less resources increases organizational profitability. Using the exploratory research design and 109 participants the result of the study indicates a strong positive correlation between performance appraisal and employee productivity. It suggests that the issue of performance appraisal in charitable organizations should be addressed. In view of the result of the study, the paper recommends that performance appraisal should carefully review employee’s strengths and weaknesses against requirements for possible future higher responsibilities.
The integration between innovation and business is a key factor in competitiveness between organizations. That is, innovation applied to a business makes no sense if not considered as an integral tool for the processes of the organization. Companies should therefore adopt a policy where innovation plays a strategic role in the design of business models to become lean, effective and competitive entities (Moraleda, 2004). The objective of this paper is to show the importance of innovation within companies, identifying the concept, the various models that different entities might adopt in order to develop better processes of innovation, as well as indicators that represent innovation at global and national levels in order to develop strategies that lead to an increase in competitiveness. For this work the method used was a bibliographical review of relevant articles from a range of authors was conducted.
The practitioners and academicians in the business arena are highly concern about the enhancement of employee performance in this competitive age for achievement of business goals. Considering the issue, this study aimed to measure the influence of Human Resource Management (HRM) practices on the performance of employees. The data of this study have been collected from 392 on-the-job operational level employees using survey method who are working at different garment factories in Bangladesh. The collected data are analyzed through structural equation modeling to partial least square method. The study empirically proves that employee training and development, promotion opportunity, and job security has significant influence on the employees’ performance. Theoretically, this study proves that training and development, job security and promotion opportunity together influence on the performance of employees in the developing economy. The practitioners and policy makers of the organizations are expected to make necessary adjustments in their existing HRM practices based on the findings of this study in the context of Bangladesh for enhancing the employees’ performance level so that their whole-hearted efforts can be gained for the achievement of business goals.
Child labor is one of the issues receiving much attention from researchers and scholars around the world. Child labor still occurs in most countries around the world. Viet Nam is also one of the countries with relatively high child labor and increasing trend. This article is based on critical discourse analysis and data from the General Statistics Office of Vietnam to analyze some fundamental issues of child labor in Vietnam, thereby giving policy suggestions to the Vietnam government in minimizing the current child labor situation.
The rapid trend of changes and social issues in managing the global workforce has forced organizations to look for innovative ways of enhancing the job satisfaction of employees. Among these innovative approaches is the provision of Flexible Working Arrangements (FWAs). The purpose of this exploratory research was to identify the effects of FWAs, i.e., flextime schedule, compressed workweek, and telecommuting on job satisfaction from the perspective of the Ethiopian national employees of the United Nations Economic Commission for Africa (ECA) in Addis Ababa. To achieve this objective both descriptive and inferential statistics were conducted. The total population of the study was 250; out of which, 71% of responses were collected. A primary data collection method was implemented using a structured questionnaire. The analysis showed that there is significant positive effect of flextime schedule (R = .39, R2 = .264, p = .001) and compressed workweek (R = .39, R2 = .159, p = .039). This means that increase in the use of flextime schedules and compressed workweek enhances job satisfaction for employees of the ECA in Addis Ababa. The independent variables reported R = .39 and R2 = .15 which means that 15% of corresponding variations in employee job satisfaction can be explained by flexible working arrangements. Nevertheless, this study found out that there are no significant relationship of telecommuting (R = .39, R2 = .065, p = .398) on job satisfaction. Therefore, since the provision of FWAs is at the nascent stage, further studies on the effect of telecommuting on job satisfaction from Ethiopian employees context are highly recommended.
This study evaluates the impacts of urban road investment and operation in China, especially the spillover effect attributable to the investment of urban road projects. Using the synthetic control method and difference-in-differences technique and taking the opening of Jiaozhou Bay Bridge and its Subsea Tunnel in China on 30 June 2011 as a natural experiment, this paper investigates the causal effect between urban road investment and its economic impacts. Results show that the project has a positive externality in terms of its contribution to the output and employment: taken the industrial relative output as outcome variable, no matter whether the covariates are controlled or not, the parameters of the interactive terms are positive; taken the industrial relative employment rate as outcome variable, the gap between the treated unit and its counterpart indicates a direct program effect for the treated city as well as a spillover effect across the cities within the sample province. Furthermore, the permutation test ascertains that the probability of achieving a spillover effect as large as the treated city is around 5.88 per cent. Overall, the investment and operation of urban road transportation infrastructure has a noticeable spillover effect. Our results are robust across a series of placebo tests.
Poor public management defined by corruption and lack of prudence in public life continues to hold Nigeria hostage and makes good governance difficult. Since the 1980s government has been using many methods including the processes of privatization and commercialization as means of re-engineering the public sector for total quality management, and to increase the share of the public sector’s contribution to the gross domestic product. The experiment never achieved the desired level of success partly due to lack of political will on the part of government to wedge a total war against corruption, and also partly because the public sector is a large scale administration that has many entry and revolving doors which government finds difficult to close. These limitations provide the incentives for widespread public corruption that is recognized as one of the greatest challenges of government in carrying out its mandate. 110 respondents participated in this study conducted through the exploratory research design. The participants provided useful data that were triangulated with data from secondary sources for the purpose of the study. To achieve the objective of the investigation, data were analyzed through statistical techniques and the result showed significant positive correlation between good governance and good management. It was recommended that appointments in the public sector should feature a combination of people from private and public sectors of the economy to enhance competence with the aim of reducing public sector corruption. Further study should examine the reasons behind rising budget deficits as a way of reducing cost of governance in Nigeria.
This document analyzes shareholding in companies in Mali based on data from the 2015 census of industrial enterprises by Mali's Ministry of Trade and Industry. The key points are:
- Since Mali's economic opening in the 1980s and privatization programs in the 1990s, the private sector has grown while many state-owned enterprises have disappeared.
- Most companies in Mali are privately owned, young (less than 15 years old), and small individual/family businesses rather than corporations.
- Between 2010-2014, the majority of shareholders were in the agri-food sector, and the gender distribution of shareholders was nearly equal.
- The document discusses different concepts of shareholding structure and
This paper’s objective is to present the importance of the strategic planning in business management. Speaking of strategic planning is always speaking in general terms and how to fix paths of behavior will necessarily affect deeply and significantly in the future evolution of the company or organization that adopts it. Today we think of the organization as part of an environment and in terms of options or choices based on what you have, of its surroundings and the opportunities or pathways that can lead to achieving the objective, (Garrido, 2009). For this work the method used was a bibliographical review of relevant articles from a range of authors was conducted. The conclusions were that the be properly analyzed and adapted to the precise conditions and characteristics of the small business or, more generally, to any type of business for which the planning is intended. Strategic planning brings multiple benefits (which exceed its disadvantages) if applied in the right way, however, there are inherent risks, which can be overcome with proper monitoring and control.
The study examined the relationship between non-financial incentives and workers’ motivation in Akwa Ibom State Civil Service exploring five key variables of continuing professional development, performance feedback, employee employment, employee participation in decision-making and task autonomy. Survey research design was adopted involving the use of questionnaire to gather data from 392 respondents drawn from a population of 20465 civil servants in state using Taro Yamene Sample Size Determination Table. The sample was drawn across all ministries and departments through stratified and convenience sampling techniques. Data collected were analysed using descriptive and inferential statistics. Hypotheses were tested at 0.05 level of significance. The five dimensions of non-financial incentives were positively correlated with workers’ motivation from the results of the analysis. Continuing Professional Development (CPD) had the highest correlation value (r = 0.33, P<0.01). Also, the five null hypotheses were rejected implying that the variables of study influence workers’ motivation in Akwa Ibom State Civil Service, Nigeria with beta coefficients and t-values of CPD (0.29;4.313); PF (0.117; 3.500); EE (0.2.141); PDM (0.182; 2.935), and TA (0.231;2.817). It was concluded that since workers’ motivation is a vital tool to organizational effectiveness and growth, employers should explore more of non-financial incentives in formulating and implementing employee benefits related policies.
This literature review is organized in five sections. Firstly, we begin with general ideas and continue with the origin of the fraudulent. Secondly, we discuss the struggle of the phenomena, insisting on the available mechanisms. Finally, we’ll discuss the link between audit and fraud.
Accounting function aims at providing accurate and sufficient accounting information to facilitate proper financial reporting and management performance. Accounting information is usually in the form of periodic or annual financial statements which are products of costing, financial and management accounting prepared for the benefit of a number of external interest groups. Accounting has its roots in the stewardship approach and as a management performance tool to guide the agent and the principal over the exact status of the going concern. Accounting function also involves financial statement analysis, interpreting the accounts by computing and evaluating ratios which relate pairs of financial information or items with one another. This analysis of ratios can be cross-sectional comparing the results of one company with another or trend. In doing so close attention is usually paid to profitability ratio to help keep pace with effective management performance. The exploratory research design was adopted for the study and result showed positive correlation between accounting function and management performance. The study was not exhaustive, therefore, further study should examine the relationship between audit failure and business failure as a matter of finding a solution to the problem. It was recommended that management should always carefully study audit reports to enhance decision making and management performance.
This study examines the effect of the trademark on consumer behavior of consumers of air conditioners in Sudan, in order to know the dimensions of the trademark that affect consumer behavior in Sudan, and provide information to companies on the dimensions of the trademark that affect the purchasing decision of the customer and contribute to customer satisfaction. The study adopted descriptive analytical method using a sample of 230 individuals who consume air conditioners in Sudan. The results showed that there is a positive significant relationship between the trademark of air conditioning and consumer behavior as well as a positive significant relationship between the trademark name of air conditioning and consumer behavior and finally there is a positive significant relationship between the trademark logo and consumer behavior.
In recent years, retired workers eligible for social security receive their emoluments from the appropriate regulatory agency and this provides more realistic evidence on the better living standard of the aged (retirees) under the scheme. Empirically, this paper examines the impact of social security on economic growth in Ghana using time series secondary (monthly) data ranging from 2000 – 2018. The author answers in two questions: 1) how significant are pensioners benefit payments dependent on economic growth and also, 2) how business environmental policy is contributing to economic performance as far as pensioners well-being are concerned. Using STATA analytical software, the findings show a positive significant relationship between social security and economic growth. The study concludes by outlining appropriate policy measures to help strengthen the current social security scheme in Ghana.
This research begins by showing the different meanings attributed to the term cluster by different currents and authors, which suggests definitions that are found around its spatial framework. Next, the factors that intervene in the competitiveness of a region and its growth are shown, for the development of these, Porter’s model of competitiveness which was taken as reference, and the contexts: geographical and economic. Therefore, the methodology was used based on a qualitative design, with descriptive and correlational scope since it will analyze differences of each cluster, with respect to the factors of dimensions, establishments, growth, economic impact and policies. To do this, the information-gathering tool was two semi-structured interviews with cluster leaders in both countries, because the approach is based on data collection methods that are not completely standardized or predetermined. And finally, the results of the comparison of the Mexican Bajío automotive cluster with the German cluster located in Baden-Württemberg are presented.
This research aims at identifying the impact of excellence in drawing up the following four marketing mix strategies (Product, Pricing, Promotion and Distribution) of the small and medium enterprises in Jordan, in terms of their marketing performance in its dimensions (Sales Growth, Profit Growth, Customer Attraction and Customer Retention).In order to reach the results of this study, A total of (187) valid questionnaire surveys were collected from companies belong to the SME Association in Jordan. The Statistical Package for the Social Sciences (SPSS) approach was used to analyze the collected data. The empirical results indicated there is a significant relationship between the building of marketing strategies of the marketing mix elements in the Jordanian SME and their marketing performance, by (sales growth, profit growth, customer attraction, and customer retention) dimensions. Consequently, decision makers in small and medium organizations need to choose strategies based on their target market to the positive impact on the mind of the consumer, which in turn could improve modern scientific methods in SME to divide their markets into sub-market sectors.
The study investigates the impact of team building on organisational productivity. The objective of this study is to evaluate the impact of team building among the members of the selected case study and to assess the effect of training and retraining of team members on organisational productivity. The study also x-rayed the absence of team building in a workplace which led to low levels of turnover and productivity. the total population of the study was 750 while researcher employed Yaro Yamane sampling technique to select sample size of 261 because of the large population and hypothesis were tested using Pearson correlation. The finding revealed that if members of the team can work in synergy without considering the differences in the likes of level of educational background and others, the expected productivity will be very high. It was also observed that capabilities of team leader in carrying out the assigned task determined its output especially if the team leader understands the technical knowhow of job and he is friendly with co-team members with a lot of motivation, that this would definitely enhance employees’ efficiencies and productivities. The study recommends that team members should trust, support and respect one another individual differences in order to accomplish group common goals and tasks.
Compared with general commercial reverse logistics operators, the recovery and treatment of expired drugs and medical waste is a complex and highly technically difficult project. The qualifications required by the relevant service providers are also more stringent. For medical institutions, the selection of reverse logistics operators is always a critical issue. On the perspective of sustainability, this paper aims to investigate and explore the critical factors of selecting a medical reverse logistics service provider. Through the process of the Delphi method, the experts’ assessments were collected, and 24 factors affecting the selection of medical reverse logistics service provider were screened and summarized. Then, Decision-Making Trial and Evaluation Laboratory (DEMATEL) was employed to calculate the total influence values and net influence values between factors that could be used to draw the visual causal map. Referring the causal map, “Green process operation level” and “Recycling process greening degree” are significantly higher than other factors in terms of total influence value and net influence value. Therefore, they can be regarded as crucial factors. This finding implies that medical reverse logistics providers must have the ability to improve the greening of facilities, as well as equipment, integrating existing processes to make it greener and environmentally friendly.
The major objective of any firm is to maximize the shareholders wealth. This is evidence through dividend yield and payout ratio and this encapsulate into the dividend policy of a company. The research purpose aimed at examining the influence that dividend policy has on the volatility of share prices among the listed insurance corporations in Kenya. Research design, approach and method: Data was collected from listed insurance corporations over a 10-year period with a total of 49 data points. The Pearson correlation and ordinary regression analysis were employed. The results reveal the existence of a positive link among the study variables. The correlations were found to be substantial at ninety-five percent confidence level. It is worth noting that the model summary shows forty-three-point one percent of changes in the volatility of stock price are explicated by dividend yield and payout ratio. ANOVA statistics which examines whether the analytical model as set out in the study explains variations in the dependent variable concluded that the model is analytically substantial. The outcome revealed a statistically significant positive link between stock price variations and the ratio of dividend payout. Research also established a statistically substantial negative interrelation between volatility of stock prices and dividend return. Results therefore recommend that companies should have dividend policies which are mapped to shareholders wealth maximization objective. The study suggests further studies be undertaken to determine whether there exists an analytically substantial difference between the dividend policies of various sectors in the economy.
This study is about the impact of selected macroeconomic variables on economic growth of Bangladesh. Economic growth of Bangladesh is measured in terms of annual nominal GDP growth rate. Least squared regression model has been employed considering exchange rate, export, import and inflation rate as independent variables and gross domestic product as the dependent variable in this study. The results reveal that export and import have significant positive impact on GDP growth rate. The other variables (exchange rate and inflation) are not significant, indicating that there exists no significant relationship among the variables. The findings will help the policy makers to make policies concerning the country’s economic growth to remain robust in the near future.
More from Business, Management and Economics Research (20)
NIMA2024 | De toegevoegde waarde van DEI en ESG in campagnes | Nathalie Lam |...BBPMedia1
Nathalie zal delen hoe DEI en ESG een fundamentele rol kunnen spelen in je merkstrategie en je de juiste aansluiting kan creëren met je doelgroep. Door middel van voorbeelden en simpele handvatten toont ze hoe dit in jouw organisatie toegepast kan worden.
SATTA MATKA DPBOSS KALYAN MATKA RESULTS KALYAN CHART KALYAN MATKA MATKA RESULT KALYAN MATKA TIPS SATTA MATKA MATKA COM MATKA PANA JODI TODAY BATTA SATKA MATKA PATTI JODI NUMBER MATKA RESULTS MATKA CHART MATKA JODI SATTA COM INDIA SATTA MATKA MATKA TIPS MATKA WAPKA ALL MATKA RESULT LIVE ONLINE MATKA RESULT KALYAN MATKA RESULT DPBOSS MATKA 143 MAIN MATKA KALYAN MATKA RESULTS KALYAN CHART
SATTA MATKA DPBOSS KALYAN MATKA RESULTS KALYAN CHART KALYAN MATKA MATKA RESULT KALYAN MATKA TIPS SATTA MATKA MATKA COM MATKA PANA JODI TODAY BATTA SATKA MATKA PATTI JODI NUMBER MATKA RESULTS MATKA CHART MATKA JODI SATTA COM INDIA SATTA MATKA MATKA TIPS MATKA WAPKA ALL MATKA RESULT LIVE ONLINE MATKA RESULT KALYAN MATKA RESULT DPBOSS MATKA 143 MAIN MATKA KALYAN MATKA RESULTS KALYAN CHART
SATTA MATKA DPBOSS KALYAN MATKA RESULTS KALYAN MATKA MATKA RESULT KALYAN MATKA TIPS SATTA MATKA MATKA COM MATKA PANA JODI TODAY BATTA SATKA MATKA PATTI JODI NUMBER MATKA RESULTS MATKA CHART MATKA JODI SATTA COM INDIA SATTA MATKA MATKA TIPS MATKA WAPKA ALL MATKA RESULT LIVE ONLINE MATKA RESULT KALYAN MATKA RESULT DPBOSS MATKA 143 MAIN MATKA KALYAN MATKA RESULTS KALYAN CHART KALYAN CHART
The report *State of D2C in India: A Logistics Update* talks about the evolving dynamics of the d2C landscape with a particular focus on how brands navigate the complexities of logistics. Third Party Logistics enablers emerge indispensable partners in facilitating the growth journey of D2C brands, offering cost-effective solutions tailored to their specific needs. As D2C brands continue to expand, they encounter heightened operational complexities with logistics standing out as a significant challenge. Logistics not only represents a substantial cost component for the brands but also directly influences the customer experience. Establishing efficient logistics operations while keeping costs low is therefore a crucial objective for brands. The report highlights how 3PLs are meeting the rising demands of D2C brands, supporting their expansion both online and offline, and paving the way for sustainable, scalable growth in this fast-paced market.
L'indice de performance des ports à conteneurs de l'année 2023SPATPortToamasina
Une évaluation comparable de la performance basée sur le temps d'escale des navires
L'objectif de l'ICPP est d'identifier les domaines d'amélioration qui peuvent en fin de compte bénéficier à toutes les parties concernées, des compagnies maritimes aux gouvernements nationaux en passant par les consommateurs. Il est conçu pour servir de point de référence aux principaux acteurs de l'économie mondiale, notamment les autorités et les opérateurs portuaires, les gouvernements nationaux, les organisations supranationales, les agences de développement, les divers intérêts maritimes et d'autres acteurs publics et privés du commerce, de la logistique et des services de la chaîne d'approvisionnement.
Le développement de l'ICPP repose sur le temps total passé par les porte-conteneurs dans les ports, de la manière expliquée dans les sections suivantes du rapport, et comme dans les itérations précédentes de l'ICPP. Cette quatrième itération utilise des données pour l'année civile complète 2023. Elle poursuit le changement introduit l'année dernière en n'incluant que les ports qui ont eu un minimum de 24 escales valides au cours de la période de 12 mois de l'étude. Le nombre de ports inclus dans l'ICPP 2023 est de 405.
Comme dans les éditions précédentes de l'ICPP, la production du classement fait appel à deux approches méthodologiques différentes : une approche administrative, ou technique, une méthodologie pragmatique reflétant les connaissances et le jugement des experts ; et une approche statistique, utilisant l'analyse factorielle (AF), ou plus précisément la factorisation matricielle. L'utilisation de ces deux approches vise à garantir que le classement des performances des ports à conteneurs reflète le plus fidèlement possible les performances réelles des ports, tout en étant statistiquement robuste.
Tired of chasing down expiring contracts and drowning in paperwork? Mastering contract management can significantly enhance your business efficiency and productivity. This guide unveils expert secrets to streamline your contract management process. Learn how to save time, minimize risk, and achieve effortless contract management.
Presentation by Herman Kienhuis (Curiosity VC) on Investing in AI for ABS Alu...Herman Kienhuis
Presentation by Herman Kienhuis (Curiosity VC) on developments in AI, the venture capital investment landscape and Curiosity VC's approach to investing, at the alumni event of Amsterdam Business School (University of Amsterdam) on June 13, 2024 in Amsterdam.
AI Transformation Playbook: Thinking AI-First for Your BusinessArijit Dutta
I dive into how businesses can stay competitive by integrating AI into their core processes. From identifying the right approach to building collaborative teams and recognizing common pitfalls, this guide has got you covered. AI transformation is a journey, and this playbook is here to help you navigate it successfully.
The Steadfast and Reliable Bull: Taurus Zodiac Signmy Pandit
Explore the steadfast and reliable nature of the Taurus Zodiac Sign. Discover the personality traits, key dates, and horoscope insights that define the determined and practical Taurus, and learn how their grounded nature makes them the anchor of the zodiac.
Efficient PHP Development Solutions for Dynamic Web ApplicationsHarwinder Singh
Unlock the full potential of your web projects with our expert PHP development solutions. From robust backend systems to dynamic front-end interfaces, we deliver scalable, secure, and high-performance applications tailored to your needs. Trust our skilled team to transform your ideas into reality with custom PHP programming, ensuring seamless functionality and a superior user experience.
Prescriptive analytics BA4206 Anna University PPTFreelance
Business analysis - Prescriptive analytics Introduction to Prescriptive analytics
Prescriptive Modeling
Non Linear Optimization
Demonstrating Business Performance Improvement
Adani Group's Active Interest In Increasing Its Presence in the Cement Manufa...Adani case
Time and again, the business group has taken up new business ventures, each of which has allowed it to expand its horizons further and reach new heights. Even amidst the Adani CBI Investigation, the firm has always focused on improving its cement business.
Sustainable Logistics for Cost Reduction_ IPLTech Electric's Eco-Friendly Tra...
The Influences of Independent and Female Directors on the Use Non-Financial Measures in the Evaluation of CEO Performance in Malaysia
1. Business, Management and Economics Research
ISSN(e): 2412-1770, ISSN(p): 2413-855X
Vol. 5, Issue. 1, pp: 16-25, 2019
URL: https://arpgweb.com/journal/journal/8
DOI: https://doi.org/10.32861/bmer.51.16.25
Academic Research Publishing
Group
*Corresponding Author
16
Original Research Open Access
The Influences of Independent and Female Directors on the Use Non-Financial
Measures in the Evaluation of CEO Performance in Malaysia
Rezgalla Abdalla*
Department of Accounting, University of Nizwa, Oman
Kausar Yasmeen
Department of Economics and Finance, University of Nizwa, Oman
Talib Alsaadi
Department of Accounting, University of Nizwa, Oman
Abstract
CEO compensation and performance evaluation has become a highly contention issue in the business world. Several
factors appear to be behind the image problem but the uppermost is the dramatic increase in CEO reward in recent
decade. Wage efficiency theory argues higher compensation would increase the performance but on the evaluation of
CEO performance many issues are faced in selecting performance measurement indicators. The purpose of this paper
is to extend discussions in evaluating the CEO performance in research domain. Based on agency theory, the model
of this research is developed. The cross-sectional data was collected by questionnaires. By applying regression
model, this study revealed that independent directors and female directors on the use of non-financial measures in
CEO performance evaluation, are found to be positively associated with the use of non-financial measures which
reinforce the findings of prior studies in regarding their influence on the use of non-financial measures in CEO and
corporate performance evaluation. The ratio of female directors on the BOD is significantly and positively associated
with the use of non-financial measures in the evaluation of CEO performance. This study contributes economically,
socially and politically.
Keywords: CEO performance; Non-financial measures; Agency theory; Independent directors; Female directors.
CC BY: Creative Commons Attribution License 4.0
1. Introduction
CEO compensation is under the spotlight more than ever before, particularly, after the recent financial crises
(Albert and Valerie, 2018; Farid et al., 2011). The main criticism of CEO compensation is that, CEOs receive high
compensation, both in absolute terms and in comparison with compensation received by employees lower down the
hierarchy (Ball et al., 2018; Yatim, 2012). According to the wage efficiency theory, if the wage is higher than
equilibrium, CEO’s level the performance will increase, but at the same time, the matter of evaluation of
performance arises. There are several methods to evaluate (Tahir et al., 2018). According agency theory, Non-
financial measures in CEO performance evaluation is considered as a good corporate governance practice.
Therefore, former studies focused on the use of non-financial measures in CEO performance evaluation and how
corporate governance variables influence the use of non-financial measures in CEO compensation plan.
Non-financial measures are credited with being long-term oriented, leading indicators of financial performance,
reflecting performance related to different stakeholders, and harder to manipulate (Ibrahim S. and Lloyd, 2010; Itter
et al., 2003a); (Fitzgerald, 2007). Therefore, most studies attempted to investigate the determinants which increase
the use of non-financial measures from corporate governance perspective.
Generally, the Board of Directors (BOD) is responsible to evaluate CEO's performance (Epstein and Roy,
2005a; Fee et al., 2017);(Epstein and Roy, 2005b; Heineman, 2009; Kaufman, 2008; Rivero, 2004; Smith, 2010;
Thomas, 2001). Through evaluating CEO’s performance, BOD can extract clear signal on the company’s potential
ability to achieve the strategic goals of the company as set by BOD (Fee et al., 2017);(Rivero, 2004).
In a conventional business setting, the performance evaluation of businesses is almost always about bottom-line
and therefore performance is considered in terms of profits and shareholders' wealth (Schiehll and Bellavance, 2009;
Zorn et al., 2017); (Ahrens et al., 2011). Therefore, executives may engage in management practices which are
short-term oriented and unethical because they are profit driven (Ibrahim S. and Lloyd, 2010); (Lipton et al., 2009).
So, assessing businesses performance in terms of financial measures only has received many criticisms (Govindan et
al., 2012) (Assaf et al., 2012; Lee et al., 2012). Accounts manipulation are said to be promoted when financial
measures that are short-term focused; historical; incongruent with strategic mission; and rely on cost information are
linked to the reward systems (Azar et al., 2018; Itter et al., 2003a; Kaplan and Norton, 2004); (Chenhall and Smith,
2007; Jusoh et al., 2008).
However, previous studies documented that generally BODs evaluate and compensate their CEOs mainly based
on financial measures which are short-term oriented, not strategic and could be manipulated (Epstein and Roy,
2005a; Nyberg et al., 2018; Siciliano, 2002); (Kaufman, 2008). Hence, most previous studies which examined the
2. Business, Management and Economics Research
17
influences of corporate governance variables on the use non-financial measures in the evaluation of CEO
performance assume that board characteristics such as independence and size would increase the use of non-financial
measures (Balsam et al., 2010; Bushman et al., 1996; Ibrahim S. and Lloyd, 2010; Schiehll and Bellavance, 2009);
(Eduardo and Paul, 2003; Itter et al., 1997). Therefore, the intention of this study is to examine the impact of
independent directors and female directors on the use of non-financial measures in CEO performance evaluation in
the Malaysian context because the Malaysian Code of Corporate Governance put too much emphasis of them.
2. Literature Review
2.1. Financial and Non-Financial Performance Measures Debate
Albert and Valerie (2018) states that non-financial performance measures are often used for performance
evaluation. They are especially relevant if the available financial performance measures not completely reflect the
manager's contribution to the firm's total value. Then, non-financial performance measures serve as an indicator for
the firm's long-term performance and may therefore be included in incentive contracts. Various scholars have
debated the use of financial and non-financial measures in performance measurement and most scholars advocate
using both (Jusoh et al., 2008). Therefore, it is not possible to rely solely on financial measures and traditional
methods of matching revenue to costs and consequent short-term measures of profits as measures of performance
(Kaplan and Norton, 2004). Annual bonus plan that are linked only to financial measures will promote an over-
emphasis on short-term accounting returns and discourage long-term investments (Bushman et al., 1996; Ibrahim S.
and Lloyd, 2010; Kaplan and Norton, 1992). While accounting returns may represent a reasonable measure of
CEO’s current management of assets in place, they do not reflect the benefits of CEO’s current strategic planning,
growth opportunities identified, business initiatives, or investment in the discovery and development of new
products or technologies with differed returns (Bushman et al., 1996; Schiehll and Bellavance, 2009); (Verbeeten
and Boons, 2009). Financial measure are backward looking, over relying on cost information, short term in nature,
and do not focus on long term value creation activities, which are intangible in nature and helpful in generating
future growth of the company (Jusoh et al., 2008). Non-financial measures increase measure diversity which in turn
reduces the dysfunctional impact of accounting measures (Van der Stede et al., 2006). They also may enhance the
opportunity of contracting by including information on managerial actions which are not captured by accounting and
financial measures (Datar et al., 2001).
On the other hand, non-financial measures are expected to provide a wider picture of performance that go
beyond financial aspects of performance to cover other aspects of organizational performance. For example, non-
financial measures capture key strategic performance dimensions which are not captured by financial measures (Itter
et al., 2003a). These strategic performance dimensions are related to wide range of areas such as market share,
customer satisfaction, acquisitions, employee training, stakeholders’ satisfaction, corporate reputation, ethics, values
and other dimensions. Other benefits of using non-financial measures are that they improve the alignment between
corporate strategic objectives and the performance measurement system as a whole (Kaplan and Norton, 2000). This
is because non-financial measures provide more information regarding the actions which have been taken in order to
achieve the strategic objectives of the company (Firfiray et al., 2018).
Therefore, the debate between financial and non-financial measures takes the form of critique on over reliance
on financial measures and argues for the involvement of non-financial measures as well. In addition to that, the
discussion indicated that non-financial measures are important measures to provide a more precise and bigger picture
of organizational performance. Also, it was observed that non-financial measures could be used to capture
information which is related to the management of corporate activities and regarding non-shareholder’s stakeholders
such as employees and customers among others.
3. Board of Directors Use of Performance Measures in CEO Performance
Evaluation
Most studies which empirically examine the use of non-financial measures are executed in the Balanced
Scorecard (BSC) framework. The BSC is a strategic tool which helps to communicate strategic intent and motivate
performance towards strategic goals (Itter and Larcker, 1998a). Jusoh et al. (2008) found in the Malaysian
manufacturing industry the use of non-financial measures in BSC especially internal business processes and
innovation and learning measures enhances corporate financial performance. Generally the results confirmed that the
use of multiple performance measures via BSC is positively related to financial performance (Crabtree and DeBusk,
2008). Hoque and James (2000) found a significant positive relationship between the overall usage of the BSC and
organizational performance. Itter et al. (2003b) found that in the financial industry companies which use BSC earn
higher stock prices than companies which does not use BSC. These findings reinforce the idea that non-financial
measures are leading indicators of financial performance.
Itter et al. (2003a) explored the use financial and non-financial measures in a subjective BSC bonus plan, and
the results indicated that the use of BSC to reward managers overcomes the short-comings of the use of traditional
accounting based measures. Banker et al. (2004) in an experimental study of judgment influences of performance
measures and strategy, found that managers use non-financial measures when those measures are linked to strategy
more than the ones which are not linked to strategy (Kaplan and Norton, 2004); (Malina and Selto, 2001).
Various scholars have examined the use of non-financial in CEO compensation plans in order to find out
whether non-financial measures are used with financial measures in CEO performance evaluation as a sign of
effective performance evaluation practices. For instance, Schiehll and Bellavance (2009) using a sample of 184
3. Business, Management and Economics Research
18
Canadian companies, found that 55% of the CEO bonus plans use non-financial performance measures. Ibrahim S.
and Lloyd (2010) in a sample of 329 companies found that 28% employ both financial and non-financial measures in
executive compensation, while 72% percent employ only financial measures. Epstein and Roy (2005a) using a
sample of 59 U.S. companies found that 43% of the companies use non-financial measures with financial measures
in the evaluation of CEO performance in the compensation committee reports. Also, Itter et al. (1997) found
evidence of the use of non-financial measures in CEO bonus plans in a sample of 317 companies in which 36% of
the companies used non-financial measures in the evaluation process. Also, Hassab et al. (2005) in a longitudinal
study found that 38% of the sample of 240 used non-financial measures in the evaluation of CEO performance.
Also, most of the above mentioned studies are carried out in advanced countries and therefore there is no
information about the measures which are used in the performance evaluation of CEOs in Malaysia. This would be
important because the new reforms in Malaysia such as the CG Blueprint of 2011 and the MCCG 2012 both of
which focus on BOD practices in ensuring integrity, long-term performance and considering the interests of non-
shareholder stakeholders which are all non-financial issues in nature, beside that the new reforms focus on
independent directors and female directors in such context. Therefore, it is very timely to explore the effects of such
reforms in the Malaysian context.
4. Determinants of the Use of Non-Financial Measures in CEO Performance
Evaluation
Several studies have provided empirical evidence about the evaluation of CEO and executive performance in a
compensation context using quantitative research methods (Balsam et al., 2010; Bushman et al., 1996; Davila and
Venkatachalam, 2004; Eduardo and Paul, 2003; Hassab et al., 2005; Ibrahim S. and Lloyd, 2010; Ittner et al., 1997;
Schiehll and Bellavance, 2009; Silva and Tosi, 2004; Veen-Dirks, 2010). Within these studies, there is a stream of
research in corporate governance literature which attempts to examine the determinants of the use of non-financial
measures in CEO compensation plans and these determinants are CEO tenure, stock price, growth, BOD
independence, and CEO ownership among others (Balsam et al., 2010; Bushman et al., 1996; Caranikas-Walker et
al., 2007; Davila and Venkatachalam, 2004; Eduardo and Paul, 2003; Hassab et al., 2005; Ibrahim S. and Lloyd,
2010; Ittner et al., 1997; Schiehll and Bellavance, 2009). Other studies examine various other issues such as
anonymity of CEO performance evaluation, earnings management, and the purpose of the evaluation such as reward
and mid-year evaluation (Ibrahim S. and Lloyd, 2010; Veen-Dirks, 2010); (Silva and Tosi, 2004). Balsam et al.
(2010), Schiell and Bellavance (2009), Caranikas-Walker et al. (2007), Hassab et al. (2005) and Eduardo and Paul
(2003) using a sample of 67 companies identified that the use of non-financial measures in CEO compensation
scheme is associated with BOD independence. Davila and Venkatachalam (2004) found that passenger load factor,
an important non-financial measure which is used in cash compensation contracts, is positively related to cash
compensation decision. This finding reinforces the idea that non-financial measures provide incremental information
about CEO performance over financial measures and therefore, is positively significant in compensation contract.
Veen-Dirks (2010) investigated how the importance which is attributed to a variety of financial and non-
financial performance measures depends on the type of use “evaluation versus reward”. Based on a survey in a
sample of industrial companies they found that consistent evidence of a difference in the importance attached to
performance measures for these two uses. More weight is attached to both financial and non-financial performance
measures for the mid-year performance evaluation than for reward performance evaluation. They also provide
evidence that production strategy and departmental interdependence influence the importance attached to
performance measures differ for evaluation and reward uses. A production strategy focused on differentiation by
product-performance has a negative effect on the importance attached to financial measures for variables rewards but
no effect on their importance for the mid-year performance evaluation. Ayuso et al. (2007) introduced a BOD
composition as an approach to stakeholder corporate governance which includes the representation of independent
directors, and female directors on the BOD. Therefore, this study considers examining the influences of independent
directors and female directors on the use of non-financial measures in CEO performance evaluation.
Generally, from the literature it is clear there is a limited research on the influences of independent directors and
female directors on the use of non-financial measures in CEO performance evaluation. Additionally, most former
studies are executed in advanced countries and there is limited research which addresses these issue in Malaysia
where the institutional settings are totally different from developed countries. It would also be important to examine
the influences of independent directors and female directors on the use of non-financial measures to see whether
independent and female directors are in line with the MCCG 2012 which requires the representation of independent
and female directors as means of improving BOD decision making whether they are starting consider different
stakeholders in their decision making as well as sustainability issues. Therefore, this study attempts to fill these
research gaps as well.
5. Conceptual Framework
Following previous studies (Bushman et al., 1996; Itter et al., 1997; Schiehll and Bellavance, 2009);
(Caranikas-Walker et al., 2007; Eduardo and Paul, 2003) the dependent variable is the use of non-financial
measures in the evaluation of CEO performance. The independent variables are independent directors and female
directors. The independent variables were identified from previous studies (Ayuso et al., 2007; Ayuso and
Argandona, 2007; Hillman et al., 2002); Gazley et al. (2010) which proposed a BOD composition as an approach to
stakeholder corporate governance model constitutes independent directors, female directors, ethnic minority
4. Business, Management and Economics Research
19
directors and stakeholder directors. However, stakeholder directors and ethnic minority directors are excluded from
this study because in the Malaysian context there is no attention given to ethnic minority directors and stakeholder
directors either by the Malaysian government or professional bodies. Ethnic minority directors and stakeholder
directors seems to be not an important issue in the Malaysian context and thus excluded from this study.
In this study, it is expected that independent directors and female directors would probably be associated with
the use of non-financial measures in the evaluation of CEO performance owing to the importance of non-financial
measures in the context. In addition to that, given the unique institutional characteristics of corporate governance in
Malaysia and corporate governance literature, it is important to control for industry, company size, GLCs ownership,
and family ownership which are considered as the control variables of the study. Stakeholder theory suggests BOD
use non-financial measures to ensure fair distribution of value created to maintain the commitment of multiple
stakeholders (Kochan and Rebinstein, 2000). Therefore, it is assumed that the existence of independent directors on
BOD would increase BOD’s attention to use more non-financial measures in CEO performance evaluation in order
to monitor managerial decision making with regard to multiple stakeholders interests and as a result BOD
independence is associated with the use of non-financial measures in the evaluation of CEO performance.
Past studies argued that independent directors are concerned with stakeholders. The role of independent
directors beside the well-being of the company is to pursue the interests of multiple shareholders, stakeholders, and
society at large (Ismail, 2005). Independent directors are expected to focus on a variety of stakeholders interests
(Tirole, 2001). The role of independent directors is balancing the interests of multiple stakeholders (Kakabadse and
Kakabadse, 2007). Independent directors might be more knowledgeable about the changing demands of different
stakeholders and may feel free to advocate costly or unpopular initiatives such as those regarding compliance issues
(Abdullah et al., 2012); (Ibrahim N. A. et al., 2003; Johnson and Greening, 1999; R. et al., 2011). It is argued that
independent directors on BOD could increase BOD attention to ensure that interests of multiple stakeholders are
taken into account and therefore BOD focus on non-financial measures in CEO performance evaluation. Also,
regardless of theory used, former research Schiehll and Bellavance (2009); (Eduardo and Paul, 2003) found a
positive relationship between BOD independence and the use of non-financial measures in CEO performance
evaluation. Based on the arguments and empirical findings of prior research, the study proposes the following
hypothesis:
H1: Other things being equal, the proportion of independent directors on the board is positively associated with
the use of non-financial measures in CEO performance evaluation.
There are several governance guidelines advocate increased representation by female on BOD to better reflect
the gender diversity of their customers, employees, and other stakeholders (Ayuso and Argandona, 2007). Female
directors are expected to be more interested in the welfare of various stakeholders (Ayuso and Argandona, 2007).
Female directors have been shown to be more sensitive to company’s social performance (Bear et al., 2010); (R. et
al., 2011). Stakeholder theory suggests that companies have a responsibility to reflect gender diversity in their
governing BODs. This allows them to establish improved relations with increasingly diverse stakeholders (Ibrahim
N. A. et al., 2011). Furthermore, greater gender diversity on BOD will place the company in better position to
establish links with different stakeholder groups such as employees, suppliers and customers (Ayuso et al., 2007).
Therefore, it could be argued that female directors could be more concerned with stakeholders and as a result
increase BOD’s attention to the use of non-financial measures in CEO performance evaluation as they want to
ensure a fair distribution of value created to multiple stakeholders.
Research suggests that different genders respond to different norms, attitudes, beliefs and perspectives (Palled et
al., 1999). The issue of the representation of different genders in BOD diversity has its own ethical and economic
arguments (Brammer et al., 2007). Hofstede (1984) described masculinity as associated with a performance society
and feminity with a welfare society. Female directors tend to be more sensitive to CSR than their counterparts
(Ibrahim N. A. and J, 1994). The presence of female on BOD may signal to stakeholders that the company pays
attention to female and minorities and thus is socially responsible (Bear et al., 2010). Female directors are found to
be more sensitive to social issues compared to male directors who are more concerned about economic performance
(Ibrahim N. A. et al., 2011). Female directors are seen as members of underrepresented groups in companies and
therefore are expected to be more interested in the welfare of various stakeholders (Ayuso and Argandona, 2007).
BOD with more female directors tends to have better corporate governance than those with fewer female directors
(Rosener, 2003). Female directors are tougher monitors than male directors (Adams and Ferreira, 2009). BOD with
female directors tend to use more non-financial measures (such as innovation and social responsibility) to evaluate
company performance than their all-male BOD (Stephenson, 2004). Therefore, it could be argued that the presence
of female directors on BOD may increase BOD’s attention to stakeholders’ issues and as a result BOD places more
importance to the use of non-financial measures in the evaluation of CEO performance. Based on the arguments and
empirical findings of prior research, the study proposes the following hypothesis:
H2: Other things being equal, the proportion of female directors on board is positively associated with the use
of non-financial measures in CEO performance evaluation.
6. Research Methodology
Cross sectional data was collected by questionnaire. Secondary data was gathered to obtain the independent
variables and control variables in order to identify the influences of independent directors and female directors on
the use of non-financial measures in CEO performance evaluation. Frequency distribution is used to analyses the use
of financial and non-financial measures in CEO’s KPIs template. The use of financial measures is based on three
items and the use of non-financial measures is based on four items. Then, the averages of the use of financial and
5. Business, Management and Economics Research
20
non-financial measures were taken in order to see the importance of non-financial measures for BOD in CEO
performance evaluation.
7. Measurement of Variables
This section discusses the definition of the dependent variable, independent variables and control variables of
the hypothesis testing part of this study as follows:
The dependent Variable is the Use of Non-financial Measures in CEO Performance Evaluation: The dependent
variable, NFMMEAN, is the use of non-financial measures in CEO’s KPIs template, this variable has four values
and the independent and control variables have only one value. To overcome this problem, the mean of the four
values of the items of non-financial measures were taken, NFMMEAN, and considered as the dependent variable of
the study for the regression analysis. Independent directors (INDBD) refer to the level of BOD independence and
are measured by proportion of the independent non-executive directors to the total BOD. This information is
disclosed in the director’s report. The expected direction of this variable is positive. Female directors (FMBD) refer
to the extent of female directors’ representation on the BOD and are measured by proportion of female directors to
the total BOD. This information is disclosed in the director’s report. The expected direction of this variable is
positive.
In addition, this study has included control variables in order to control for other affects. As long as there are
other factors that could affect the use of non-financial measures in CEO performance evaluation these factors must
therefore be controlled in order to avoid misleading regression results. The study controls for company size, type of
industry and ownership structure. The definition and measurement of the considered control variables are as follows:
Company size. (Total Asset) refers to the size of the company and is measured as logarithm of 10 of total asset
of a company. The expected direction of this variable is positive. Company type. (TYPE1) to indicate whether the
company is in construction sector or otherwise, and is measured as a dummy variable and coded as 1 if the company
was classified as construction company and 0 otherwise. The expected direction of this variable is positive.
Company type. (TYPE2) to indicate whether the company is in consumer products sector or otherwise, and is
measured as a dummy variable and coded as 1 if the company was classified as consumer products company and 0
otherwise. The expected direction of this variable is positive. Company type. (TYPE3) to indicate whether the
company is in finance sector or otherwise, and is measured as a dummy variable and coded as 1 if the company was
classified as finance company and 0 otherwise. The expected direction of this variable is positive. Company type.
(TYPE4) to indicate whether the company is in industrial products sector or otherwise, and is measured as a dummy
variable and coded as 1 if the company was classified as industrial products company and 0 otherwise. The expected
direction of this variable is positive. Company type. (TYPE5) to indicate whether the company is in plantation sector
or otherwise, and is measured as a dummy variable and coded as 1 if the company was classified as plantation
company and 0 otherwise. The expected direction of this variable is positive. Company type. (TYPE6) to indicate
whether the company is in properties sector or otherwise, and is measured as a dummy variable and coded as 1 if the
company was classified as properties company and 0 otherwise. The expected direction of this variable is positive.
Company type. (TYPE7) to indicate whether the company is in REITS sector or otherwise, and is measured as a
dummy variable and coded as 1 if the company was classified as REITS company and 0 otherwise. The expected
direction of this variable is positive. Company type. (TYPE8) to indicate whether the company is in technology
sector or otherwise, and is measured as a dummy variable and coded as 1 if the company was classified as
technology company and 0 otherwise. The expected direction of this variable is positive.
Company type. (TYPE9) to indicate whether the company is in trading and service sector or otherwise, and is
measured as a dummy variable and coded as 1 if the company was classified as trading and service company and 0
otherwise. The expected direction of this variable is positive. Company type. (TYPE10) to indicate whether the
company is in SPAC sector or otherwise, and is measured as a dummy variable and coded as 1 if the company was
classified as SPAC company and 0 otherwise. The expected direction of this variable is positive. Government Linked
Company (GLCs) ownership. (GLCOWD) refers to whether the company is a government linked company or
otherwise, is measured as a dummy variable if the government is a substantial shareholder and owes at least 5% and
0 otherwise (Johari et al., 2008). The expected direction of this variable is positive. Family Owned Company.
(FAMOWD) refers to whether a family or individual controls 20% or more of equity and is involved in the top
management of the company or otherwise, and is measured as a dummy variable if the company is family owned and
0 otherwise (Al-Akra and Hutchinson, 2012). The expected direction of this variable is positive.
The following model is estimated to identify the influences of independent directors and female directors on the
use of non-financial measures in CEO performance evaluation in Malaysia.
NFMMEAN = β0 + β1INDBD + β2FMBD + β3TOTAL ASSET + β4TYPE1 + β5TYPE2 + β6TYPE3 +
β7TYPE4 + β8TYPE5 + β9TYPE6 + β10TYPE7 + β11TYPE8 + β12TYPE9 + β13TYPE10 + β14GLCOWD +
β15FAMOWD + εi
Where , NFMMEAN Total of NFM1 which refers to customer measures + NFM2 which refers to strategy and
leadership measures + NFM3 which refers to employees measures +NFM4 which refers to ethical measures and
they are divided by 4 to obtain the average of NFMMEAN. INDBD refers to the percentage of independent directors
on the board of directors , FMBD refers to the percentage of female directors on the board of directors, TOTAL
ASSET Log10 of total assets All the 10 types, GLCOWD and FAMOWD are measured in dummy variables.
6. Business, Management and Economics Research
21
8. Results and Discussion
This section attempts to identify the influences of independent directors and female directors on the use of non-
financial measures in CEO performance evaluation based on regression analysis. However, before applying
regression analysis, several conditions have to be met such as confirming the non-existence of multicollinearity
problem among exploratory variables normal distribution of the dependent variable, and the heteroscedasticity
problem. All relevant tests were conducted and it was confirmed that all the conditions of the regression model were
fit and the regression can be applied.
The descriptive statistics of the use of financial and non-financial in CEO performance evaluation revealed that
both components are used in the evaluation of CEO performance. However, it was found board members use more
financial measures than non-financial measures in the evaluation of CEO performance. It was found that the mean of
FMMEAN is 4.2 and the mean of NFMMEAN is 4 which confirmed that financial measures dominates the
evaluation of CEO performance.
Table 1 presents the model summary. The R-squared of 0.55 implies that the independent and control variables
explain about 55% of variance/variation in the use of non-financial measures in CEO performance evaluation which
is an acceptable result for regression analysis. The ANOVA table revealed that the F-statistics (F = 2.53) and the
corresponding (p-value = 0.018 ≤ 0.05). This indicates that the slope of the estimated linear regression model line is
not equal to zero confirming that research data fit the proposed conceptual framework of the study. Table 1 also
represents the results of the regression analysis. The regression analysis regresses the variables of independent
directors, and female directors as well as the control variable on the use of non-financial measures in CEO
performance evaluation. The results in Table 1 are mixed. Some are significant and some are insignificant. However,
regarding the independent variables, the regression analysis showed that the proportion of both independent directors
and female directors on the BOD are significantly and positively associated with the use of non-financial measures
in CEO performance evaluation supporting the conceptual framework of the study.
The regression results indicated that the proportion of the independent non-executive directors on the BOD
(INDBD, Hypothesis H1) was significant and positive associated with the use of non-financial measures in CEO
performance evaluation. The p-value of independent non-executive directors (INDBD) was (P-value = -0.00 ≤ 0.01),
which suggests that (INDBD) is the proportion of independent directors significantly and positively influence the use
of non-financial measures in CEO performance evaluation. Hence, H1 was accepted. The proportion of the female
directors on the BOD (FMBD, Hypothesis H2) was also significantly and positively associated with the use of non-
financial measures in CEO performance evaluation. The p-value of female directors (FMBD) was (p-value = 0.00 ≤
0.01), which suggests that (FMBD) is statistically significant with positive influence, suggesting that the proportion
of female directors on the BOD significantly and positively influence the use of non-financial measures in CEO
performance evaluation. Hence, H2 was accepted.
The results pertaining to the control variables showed that none the control variables were significant. For
instance, the results regarding firm size (Total Asset) were not significant which suggests that firm size is not related
to the use of non-financial measures in CEO performance evaluation. As mentioned earlier, 10 types of industries
were considered in the study as control variables. The variable (TYPE1) which was an indicator of the companies
that are classified as construction industry was not significant according to the regression results. Furthermore, there
is no evidence the variable, (TYPE2) which is an indicator of consumer products industry use more non-financial
measures in CEO performance evaluation. Also, the variable (TYPE3) which is an indicator of finance industry was
not significant In addition to that; the variable (TYPE4) which is an indicator of industrial products industry was not
significant. Similarly, the variable of (TYPE5) which is an indicator of plantation industry and (TYPE6) which is an
indicator of properties industry were insignificant in the estimation of the data. The variable (TYPE7) which is an
indicator of REITS industry was also not significant. Also, (TYPE8) which is an indicator of technology industry
was not significant. Furthermore, there is no evidence the variable, (TYPE9) which is an indicator of trading and
service industry use more non-financial measures in CEO performance evaluation. The variable (TYPE10), which is
an indicator of SPAC industry, was insignificant in the estimation of the data, suggesting no relation with the use of
non-financial measures in CEO performance evaluation. Regarding ownership structure, two types of ownership
were considered as control variables in this study which are government linked companies and family owned
companies. The variable, (GLCOWD) which is an indicator of government linked company was not related to the
use of non-financial measures in CEO performance evaluation. Finally, there is no evidence that the BODs of family
owned companies would use more non-financial measures in CEO performance evaluation.
7. Business, Management and Economics Research
22
Table-1. Regression Results
Unstandardized
Coefficients
Standardized
Coefficients
Collinearity Statistics
B Std.
Error
Beta t Sig. Tolerance VIF
IVs
(Constant) 1.642 1.001 1.641 0.112
INDBD 2.492 0.573 0.674 4.346** .000 0.656 1.525
FMBD 2.103 0.526 0.635 3.997** .000 0.624 1.603Controlvariables
GLCOWD -0.165 0.178 -0.146 -0.927 0.362 0.64 1.563
FAMOWD -0.139 0.153 -0.143 -0.909 0.371 0.639 1.564
Total Asset 0.103 0.104 0.155 0.993 0.329 0.647 1.546
TYPE1 -0.137 0.239 -0.092 -0.574 0.571 0.616 1.624
TYPE2 0.062 0.233 0.041 0.265 0.793 0.648 1.542
TYPE3 -0.142 0.275 -0.086 -0.517 0.61 0.566 1.767
TYPE4 -0.041 0.214 -0.029 -0.19 0.851 0.656 1.524
TYPE5 0.148 0.24 0.09 0.615 0.543 0.745 1.343
TYPE6 0.044 0.282 0.023 0.156 0.877 0.7 1.429
TYPE7 -0.038 0.442 -0.012 -0.086 0.932 0.814 1.228
TYPE8 0.594 0.283 0.316 2.101 0.045 0.697 1.434
TYPE10 0.158 0.431 0.05 0.368 0.716 0.858 1.166
R2 0.55
F 2.53
P-value 0.018*
* Significant at 0.05 level, ** Significant at 0.01 level
Variables Description:
NFMMEAN: The variable that represents the use of non-financial measures in CEO performance evaluation.
INDBD: The variable that represents the ratio of independent directors on the board of directors.
FMBD: The variable that represents the ratio of female directors on the board of directors.
Total Asset: The variable that represents the size of the company and is measured by log ten of total asset of
the firm
TYPE1: The variable that shows the company is in construction or otherwise.
TYPE2: The variable that shows the company is in consumer product or otherwise.
TYPE3: The variable that shows the company is in finance or otherwise.
TYPE4: The variable that shows the company is in industrial product or otherwise.
TYPE5: The variable that shows the company is in plantation or otherwise.
TYPE6: The variable that shows the company is in properties or otherwise.
TYPE7: The variable that shows the company is in REITS or otherwise.
TYPE8: The variable that shows the company is in technology or otherwise.
TYPE9: The variable that shows the company is in trading and service or otherwise.
TYPE10: The variable that shows the company is in SPAC or otherwise.
GLCOWD: The variable shows whether the company is government linked company or otherwise.
FAMOWD: The variable shows whether the company is family owned company or otherwise.
9. Conclusion
The aim of this study was to explore the influence of independent directors and female directors on the use of
non-financial measures in CEO performance evaluation. In sum, consistent with previous studies the results showed
that BODs incorporate non-financial measures in CEO performance evaluation, however, financial measures still
dominate CEO evaluation (Balsam et al., 2010; Bushman et al., 1996; Hassab et al., 2005; Itter et al., 1997;
Schiehll and Bellavance, 2009); (Caranikas-Walker et al., 2007; Eduardo and Paul, 2003). With respect to the
influences of independent directors and female directors on the use of non-financial measures in CEO performance
evaluation, are found to be positively associated with the use of non-financial measures which reinforce the findings
of prior studies in regarding their influence on the use of non-financial measures in CEO and corporate performance
evaluation. The findings are consistent with the studies of Schiehll and Bellavance (2009) and (Eduardo and Paul,
2003). The regression analysis also indicated the ratio of female directors on the BOD is significantly and positively
associated with the use of non-financial measures in the evaluation of CEO performance. The findings are consistent
with the done in western countries such as Stephenson (2004) which found that BOD with more female directors on
the BOD are associated with use of non-financial measures in the evaluation of corporate performance.
References
Abdullah, S. N., Mohamed, N. R. and Moktar, M. Z., 2012. "Board Independence, Ownership and CSR of
Malaysian large firms." In World Business Institute.
Adams, R. B. and Ferreira, D. (2009). Women in the boardroom and their impact on governance and performance.
Journal of Financial Economics, 94: 291-309.
Ahrens, T., Filatotchev, I. and Thomsen, S. (2011). The research forienter of corporate governance. Journal of
Management and Governance, 15: 311-25.
Al-Akra, M. and Hutchinson, P. (2012). Family firm disclosure and accounting regulation reform in the middle east:
The case of Jordan. Research in Accounting Regulation: Available: http://dx.doi.org/10.1016/j.racreg
8. Business, Management and Economics Research
23
Albert, C. J. and Valerie, S. (2018). The two sides of CEO pay injustice: a commentary. Management Research,
Journal of the Iberoamerican Academy of Management, 16: 90-96. Available:
https://doi.org/10.1108/MRJIAM-10-2017-0785
Assaf, A. G., Josiassen, A. and Cvelbar, L. K. (2012). Does triple bottom line reporting improve hotel performance?
International Journal of Hospitality Management, 31: 596-600.
Ayuso, S. and Argandona, A. (2007). Responsible corporate governance, Towards a stakeholders Board of directors.
IESE Research Papers.
Ayuso, S., Rodriguez, M. A., Garcia, R. and Arino, M. A. (2007). Maximizing stakeholders’ interests, An empirical
analysis of the stakeholder approach to corporate governance. IESE Business School, University of
Nazara.
Azar, J., Schmalz, M. C. and Tecu, I. (2018). Anticompetitive effects of common ownership. The Journal of
Finance, 73(4): 1513-65.
Ball, R. T., Bonham, J. and Hemmer, T. (2018). Does it pay to'be like mike'? Aspirational peer firms and relative
performance evaluation.
Balsam, S., Fernando, G. D. and Tripathy, A. (2010). The impact of firm strategy on performance measures used in
executive compensation. Journal of Business Research, 64: 187-94.
Banker, R. D., Chang, H. and Pizzini, M. J. (2004). The balanced scorecard, Judgmental effects of performance
measures linked to strategy. Accounting Review, 70: 1-23.
Bear, S., Rahman, N. and Post, C. (2010). The impact of board diversity and gender compensation on corporate
social responsibility and firm reputation. Journal of Business Ethics, 97: 207-21.
Brammer, S., Millington, A. and Pavelin, S. (2007). Gender and ethnic diversity among UK corporate boards.
Corporate Governance. An International Review, 15: 393-403.
Bushman, R. M., Indjejikian, R. J. and Smith, A. (1996). CEO compensation, The role of individual performance
evaluation. Journal of Accounting and Economics, 21: 161-93.
Caranikas-Walker, F., Sanjay, G., L. R., Gomez-Mejia, Cardy, R. L. and Rundell, A. G. (2007). An empirical
investigation of the role of subjective performance assessments versus objective performance indicators as
determinants of the CEO compensation. Management Reseach, 6: 7-25.
Chenhall, R. H. and Smith, K. L. (2007). Multiple perspective of performance measurement. European Management
Journal, 25: 266-82.
Crabtree, A. D. and DeBusk, G. K. (2008). The efforts of adopting the Balanced Scorecard on shareholder returns.
Advances in Accounting, 24: 8-15.
Datar, S., Kulp, S. C. and Lambert, R. A. (2001). Balancing performance measures. Journal of Accounting Research,
39: 75-92.
Davila, A. and Venkatachalam, M. (2004). The relevance of non-financial performance measures for CEO
compensation, Evidence from airline industry. Review of Accounting Studies, 9: 443-64.
Eduardo, S. and Paul, A. (2003). Corporate governance and the information gap, The use of financial and non-
financial information in executive compensation. Ivey Business Journal April: Available:
https://www.iveycases.com/ProductBrowse.aspx?q=9b03tb07&em=0
Epstein, M. J. and Roy, M. J. (2005a). Evaluating and monitoring CEO performance: evidence from US
compensation committee reports. Corporate governance. An International Review, 5: 75-87.
Epstein, M. J. and Roy, M. J. (2005b). Evaluating and monitoring ceo performance, Evidence from us compensation
committee reports. Corporate governance. 5: 75-87.
Farid, M., Conte, V. and Lazarus, H. (2011). Toward a general model for executive compensation. Journal of
Management Development 30: 61-74.
Fee, C. E., Hadlock, C. J., Huang, J. and Pierce, J. R. (2017). Robust models of CEO turnover, New evidence on
relative performance evaluation. Review of Corporate Finance Studies, 7(1): 70-100.
Firfiray, S., Cruz, C., Neacsu, I. and Gomez-Mejia, L. R. (2018). Is nepotism so bad for family firms? A
socioemotional wealth approach. Human Resource Management Review, 28(1): 83-97.
Fitzgerald, L. (2007). Performance measurement in hopper, T., Northcott, D and scapens, R . Issues in management
accounting. 3rd edn: Financial Times Prentice Hall: Dorchester. 98-175.
Gazley, B., Chang, W. K. and Bingham, L. B. (2010). Board diversity, stakeholder representation, and collaborative
performance in community mediation centers. Public Administration Review, 70: 610-20.
Govindan, K., Khodaverdi, R. and Jafarian, A. (2012). A Fuzzy multi criteria approach for measuring sustainability
performance of a Supplier based on triple bottom line approach. Journal of Cleaner Production, 47: 345-54.
Hassab, E., H. R., Said, A. A. and Wier, B. (2005). The retention of nonfinancial performance measures in
compensation contracts. Journal of Management Accounting Research, 17: 23-42.
Heineman, J. B. W. (2009). Redefining the ceo role. Business week onlin. 19-19.
Hillman, A. J., Cannella, A. A. and Harris, I. C. (2002). Women and racial minorities in the boardroom, How do
directors differ? Journal of Management Accounting Research, 28: 747-63.
Hofstede, G. (1984). Cultural dimensions in management and planning. Asia Pacific Journal of Management, 1: 81-
99.
Hoque, Z. and James, W. (2000). Linking balanced scorecard measures to size and market forces: Impact on
organizational performance. Journal of Management Accounting Research, 12: 1-17.
Ibrahim, N. A. and J, P. A. (1994). Effects of board members' gender on corporate social responsiveness orientation.
Journal of Applied Business Research, 10: 35-40.
9. Business, Management and Economics Research
24
Ibrahim, N. A., Howard, D. P. and Angelidis, J. P. (2003). Board members in the service industry: an empirical
examination of the relationship between corporate social responsibility orientation and directorial type.
Journal of Business Ethics, 47: 393-401.
Ibrahim, N. A., John, P. and Angelidis (2011). Effect of board members’ gender on corporate social responsiveness
orientation. Journal of Applied Business Research, JABR, 10: 35-40.
Ibrahim, S. and Lloyd, C. (2010). The association between non-financial performance measures in executive
compensation contracts and earnings management. Journal of Accounting and Public Policy, 30: 256-74.
Ismail, I. (2005). Independent directors, Getting the right candidate. Available:
www.micg.net/presentationmaterials/sS.ppt
Itter, C. D. and Larcker, D. F. (1998a). Are nonfinancial measures leading indicators of financial performance? An
analysis of customer satisfaction. Journal of Accounting Research, 36: 1-35.
Itter, C. D., Larcker, D. F. and Rajan, M. V. (1997). The choice of performance measures in annual bonus contracts.
The Accounting Review, 72: 231-55.
Itter, C. D., Larcker, D. F. and Meyer, M. W. (2003a). Subjectivety and weighting of performance measures,
Evidence from a balanced scorecard. Accounting Review, 78: 725-58.
Itter, C. D., Larcker, D. F. and Randall, T. (2003b). Performance implications of strategic performance measurement
in financial services firms. Accounting, Organizations and Society, 28: 715-41.
Ittner, C. D., Larcker, D. F. and Rajan, M. V. (1997). The choice of performance measures in annual bonus
contracts. The Accounting Review, 72: 231-55.
Johari, N. H., Saleh, N. M., Jaffar, R. and Hassan, M. S. (2008). The influence of board independence, Competency
and ownership on earnings management in Malaysia. International Journal of Economics and Management,
2: 281–306.
Johnson, R. A. and Greening, D. W. (1999). The effects of corporate governance and institutional ownership types
on corporate social performance. Academy of Management Journal, 42: 564-76.
Jusoh, R., Ibrahim, D. N. and Zainuddin, Y. (2008). The performance consequence of multiple performance
measures usage, Evidence from Malaysian manufactures. International Journal of Productivity and
Performance Management, 57: 119-36.
Kakabadse, A. P. and Kakabadse, N. K. (2007). CSR in the boardroom, Myth or mindfulness, In A. Kakabadse and
N. Kakabadse, CSR in practice, delving deep. Palgrave Macmillan: Hound Mills.
Kaplan, R. S. and Norton, D. P. (1992). The balances scorecard-measures that drive performance. Harvard Business
Review, 70: 71-79.
Kaplan, R. S. and Norton, D. P. (2000). Having trouble with your strategy? Then map it. Harvard Business Review,
78: 167-76.
Kaplan, R. S. and Norton, D. P. (2004). Strategy maps-covering Intangible assets into tangible outcomes. Harvard
Business Press: Boston, MA.
Kaufman, S. P. (2008). Evaluating the ceo. Harvard Business Review, 86: 53-57.
Kochan, T. A. and Rebinstein, S. A. (2000). Toward a stakeholder theory of the firm, The Saturn partnership.
Organization Science, 11: 367-86.
Lee, S., Geum, Y., Lee, H. and Park, Y. (2012). Dynamic and multidimensional measurement of product-service
system (pss) sustainability: A triple bottom line (tbl)-based system dynamics approach. Journal of Cleaner
Production, 32: 173-82.
Lipton, M., Lorsch, J. and Mirvis, T. (2009). Schumer" s shareholder bill misses the mark. Wall Street Journal, 12:
Malina, M. and Selto, F. (2001). Communicating and controlling strategy, An empirical study of the effectiveness of
the balanced scorecard. Journal of Management Accounting Research, 13: 47-90.
Nyberg, A. J., Maltarich, M. A., Abdulsalam, D. D., Essman, S. M. and Cragun, O. (2018). Collective pay for
performance, A cross-disciplinary review and meta-analysis. Journal of Management Accounting Research,
44(6): 2433-72.
Palled, L. H., Eisenhardt, K. M. and Xin, K. R. (1999). Exploring the black box: an analysis of work group diversity,
Conflict and performance. Administrative Science Quarterly, 44: 1028.
R., M. N., N., A. S., Z., M. M. and N., K. F. (2011). The effects of board independence, board diversity and
corporate social responsibility on earnings management. Social Science Research Net Work: Available:
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1725925
Rivero, J. C. (2004). Ceo evaluation, Navigating a new relationship. Corporate Board, 25: 22-26.
Rosener, J. B. (2003). Women on corporate boards make good business sense. Directorship, 29: 2-11.
Schiehll, E. and Bellavance, F. (2009). Board of directors, CEO ownership, And the use of non-financial measures in
CEO bonus plan. Corporate Governance: An International Review, 17: 90-106.
Schiell, E. and Bellavance, F. (2009). Board of directors, ceo ownership, and the use of non-financial measures in
ceo bouns plan. Corporate Governance An International Review, 17: 90-106.
Siciliano, J. I. (2002). Governance and strategy implementation, Expanding board involvement. Business Horizons,
45: 33-38.
Silva, P. and Tosi, H. L. (2004). Determinants of the anonymity of the ceo evaluation process. Journal of
Managerial Issues, 16: 87-102.
Smith, D. N. A. J. (2010). Managing performance at the top, A balanced scorecard for boards of directors. Journal of
Accounting & Organizational Change, 7: 33-56.
10. Business, Management and Economics Research
25
Stephenson, C. (2004). Leveraging diversity to maximum advantage, The business case for appointing more women
to boards. Ivey Business Journal, 69: 1-5.
Tahir, M., Ibrahim, S. and Nurullah, M. (2018). Getting compensation right-The choice of performance measures in
CEO bonus contracts and earnings management. The British Accounting Review:
Thomas, T. (2001). The board constitution. Corporate Board, 22: 22-27.
Tirole, J. (2001). Corporate Governance. Econometrica, 69: 1-35.
Van der Stede, W. A., Chow, C. W. and Lin, T. W. (2006). Strategy, Choice of performance measures, And
performance. Behavioral Research in Accounting, 18: 185-205.
Veen-Dirks, P. (2010). Different uses performance measures, The evaluation versus reward of production managers.
Accounting, Organizations and Society, 35: 141-64.
Verbeeten, F. H. M. and Boons, A. N. A. M. (2009). Strategic priorities, Performance measures and performance,
An empirical analysis in dutch firms. European Management Journal, 27: 113-28.
Yatim, P. (2012). Boardroom pay, Performance and corporate governance in Malaysia. The Business & Management
Review, 2: 37-51.
Zorn, M. L., Shropshire, C., Martin, J. A., Combs, J. G. and Ketchen, J. D. J. (2017). Home alone, The effects of
lone‐insider boards on CEO pay, Financial misconduct, And firm performance. Strategic Management
Journal, 38(13): 2623-46.