research suggests that boards of directors perform better if

Researchers interviewed 19 board directors (15 women and four men) to learn whether and how corporate boards were benefiting from diversity. Innovation Nor are they any more profitable, for that matter. Activist shareholders are not necessarily more convinced about diversity being a source of value creation. A virtually exclusive reliance on financial controls may occur when outsider-dominated boards exist. c. the board is homogenous in composition. Seven. c. requiring outside directors to own significant equity stakes in the firm. b. large institutional investors control large blocks of stock. a. greenmail. In this opinion piece, Wharton management professor Katherine Klein summarizes academic research on the topic and discusses the possible reasons and implications for these surprising findings. c. require Mr. Leagreet to personally certify the firm's financial reports. According to a 2016 Bloomberg analysis, five of the biggest U.S. activist funds had succeeded in getting over 100 board members appointed in the previous five years. During the debate, one of the directors raises the point that CalPERS owns a significant portion of Acme Brand stock. In McKinsey's previous studyconducted with 2014 numbersthat increase had been 35%. Pletzer and his colleagues (2015) found that the average correlation between the percentage of women on the board and firm performance was small (.01) and not statistically significant. c. equally as common as data values close to the mean. Mary-Hunter (Mae) McDonnell is an assistant professor of management at the Wharton School of the University of Pennsylvania where she conducts research on the topics of non-market strategy and corporate governance. b. the manager frequently invests in the acquired firm which allows him or her exten-sive profits, the manager can frequently buy excess assets divested by the acquired firm Research suggests that boards of directors perform better if: a. outside directors own significant equity in the organization. a. high executive turnover. d. Firms with higher state ownership tend to have lower market value and more vola-tility in those values over time. In order to limit Mr. Leagreet's power, the board of directors plans to The apartment is hot or the air conditioner is not working , if and only if the temperature is 9090^{\circ}90. By and large, the obverse is true: breaking glass helps firms slightly. Executive compensation is a governance mechanism that seeks to align managers' and owners' interests through all of the following EXCEPT Post and Byron (2015) synthesized the findings from 140 studies of board gender diversity with a combined sample of more than 90,000 firms from more than 30 countries. a. management structures related to total quality management systems. Evidence that board diversity benefits firms is mixed. d. dependent. Requiring that the directors own stock in the company. The CEO tended to dominate the conversation. c. A number of factors intervene between top-level management decisions and firm performance (e.g., unpredictable economic, social, or legal changes). d. frozen assets, Product diversification provides two benefits to managers that do not accrue to shareholders: ____ and ____. b. increasing the concentration of ownership of large U.S. firms. a. banks Which of the following statements is most likely to be TRUE? c. the qualifications and experience of the CEO. The board wishes the CEO to take more short-term risks in order to achieve poten-tially higher long-term returns. d. ownership of a company to a second party. d.outsidedirectors ownsignificantequityintheorganization. a. a. lead independent Researchers have also studied the relationship between board diversity and various board decisions and practices such as acquisitions, board monitoring and dividend payouts (Ararat, Aksu, Cetin, 2015; Chen, Crossland and Huang, 2016; Chen, Leung, & Goergen, 2017). b. institutional shareholders What circumstances would most likely have initiated this proposal? d. 75. Despite persistent efforts to tackle underrepresentation of women on corporate boards, most boardrooms remain mostly male. b. company unions which are a type of governance system. Board diversity matters but concentrating on only one form of diversity isnt enough. d. The CEO and top executives should not consider their jobs secure. b. strengthening the internal management and accounting control systems d.75. b. company unions, which are a type of governance system. Research suggests that boards of directors perform betterif a. the CEO is also the chairperson of the board ofdirectors. When executives have ownership positions or stock options with their employing firm, they are: Research suggests that firms with ____ perform better, especially when collaboration among top management team members is important. b. d. the board of directors. b. likely to gain financially if their employing firm is taken over by another. a. the CEO is also the chairperson of the board of directors. a. risk that managers will behave opportunistically. To test this theory, we conducted an experiment with 193 alumni and current students of a top-tier international business school. d.This type of plan is likely to cause the CEO to underinvest in R&D in order to boost CamCell's long-term profitability. Which of the following reasons would NOT explain the difficulty of determining appropriate executive compensation? a. decision making responsibility to a second party. Results of numerous academic studies of the topic suggest that the presence of more female board members does not much improve or worsen a firms performance. b. strengthens the governance processes of the firm. When executives have ownership positions or stock options with their employing firm, they are b. Commentators often suggest that corporate boards that include women will make better decisions than boards that include only men. d.reduce their employment risk, increase the company's value, Agency costs reflect all of the following EXCEPT ____ costs. The New York Stock Exchange requires that the audit committee be We find that companies are not any less profitable after appointing female directors to the board than they were prior to the appointment. b. CalPERS' interest in Acme Brands will cause the directors to reduce the size of the stock option plan from what it would otherwise have been. b. d.requiring that outside directors be truly objective by having no ownership interest in the firm. Generally, a board member who is a source of information about a firm's day-to-day activities is classified as a(an) ____ director. b. the board includes employees as voting members. b. internal auditing scrutiny has improved and there is greater trust in financial report-ing. d.re-invested in additional corporate assets. d.greater concentration on Sierra's core industry. a. setting the option strike price substantially higher than the current stock price. One interviewee commented on how the board as a whole believed in the importance of diversity, but longer-term board members still struggled to understand its value. a. the firm is overpriced in the market. a. the director of food service for IFS. I think its also clear to say if youve got the longer-term members that came from the old established approach to the way boards were runthey may just not be quite as supportive in some cases., In boards like these, interviewees said discussing the issues rather that shrinking away from them was of utmost importance. One interviewee commented on how having social diversity wasnt good enough if all board members were former CEOs or CFOs. a. some foreign firms have delisted on U.S. stock exchanges. a. a golden parachute. d. banks. b. c. opportunity c. executive compensation systems. These dynamics appear to shape whether diversity on the board actually matters to the boards work. c. crossing the palm with silver. Both the Pelzer purchase and the Alvarez sale were in transit at year-end. Because women directors tend to be significantly . a. the strategic decision making process. This plan will be very attractive in luring candidates for the CEO position. "Research suggests that boards of directors perform better if: c. the employees directly involved in the wrongdoing b. appoint another individual as chairperson of the Board of Directors. Even if women who are named to corporate boards are different from the men on these boards and even if the women do speak up and influence board decision-making, their influence may not be consistently positive (or consistently negative, for that matter). Based on these findings, they worked with the Chairman of the Board at Deloitte to develop recommendations for how board chairs and directors can create more egalitarian board cultures and improve their governance. The gap between CEO pay and the pay of other top executives at Chromatic was significantly larger than at Pixilair. "Simon Leagreet, the Chairperson and CEO of L-EVA Industries, Inc., has long been the major power at L-EVA. a. increased diversification of Sierra Infusion. The chapter Opening Case indicates that many CEOs earn more than ____times the amount re-ceived by their firm's lowest-paid employee. a. c. 50 CamCell is presently searching for a new CEO. b. small; large The repurchase at a premium of shares of stock that have been acquired by the aggressor firm in a hostile takeover in exchange for an agreement that the aggressor will no longer target the com-pany for takeover is called The Vorstand of a German corporation makes decisions about organization direction and management. Research suggests that boards of directors perform better if a. the CEO is also the chairperson of the board of directors. c. remains constant. Consequently, the board is James Abercrombie has a thriving consulting firm specializing in training boards of directors in decision-making skills. d. a poison pill. c. Competition d.potential tax burden for. Many of our interviewees suggested that their boards had made progress on gender diversity but not on other forms of social diversity such as race, nationality, and age. a. reasonably compensating a CEO. b. greater managerial autonomy. c. incentives for German executives are not dedicated to the maximization of shareholder value largely because While the relationship between board gender diversity and company performance is very weak, there appears to be a somewhat stronger relationship between board gender diversity and corporate social responsibility (CSR). destination. a. greater emphasis on stock options b. larger proportion of insiders on the board of directors c. smaller pay gap between the CEO and other top executives d. benchmarking used for top executive pay C a. risk that managers will behave opportunistically. Corporate governance mechanisms sometimes fail to monitor and control top man-agers' decisions. b. a weak board of directors. b. firms earning above-average returns d. Corporate governance is best achieved with a board of directors with strong ties to management. How to build a better, more just workplace. Besides the name of the director, the press releases were identical. An executive's decisions often affect firm performance only over the long run. "Which of the following reasons would NOT explain the difficulty of determining appropriate executive compensation? b. government auditors. Rigorous, peer-reviewed studies suggest that companies do not perform better when they have women on the board. b. the addition of outside directors to the board. a. elect an insider as the lead director. b. Japanese firms will have little interest in Mr. Abercrombie's specialty because these skills are already practiced at a high level. c. the corporation has greatly exceeded perform-ance expectations. This will have no effect on the stock option plan design discussion, because CalPERS' main concern is stock dividends. What amount should Stallman report as its December 31 inventory? The average correlation between CEO gender and long-term financial performance is .007. A takeover defense wherein preferred stock in the merged firm is offered to shareholders at a highly attractive rate of exchange is called

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