c. The CEO/Chairperson of the board has been suspected of opportunistic behavior. However, rigorous, peer-reviewed academic research paints a different picture. b. likely to gain financially if their employing firm is taken over by another. The CEO of Skyco, a publicly-traded company that has been earning below-average returns, has been publicly criticized by shareholders for persuading the board of directors to give her inter-est-free loans, for having the company purchase and furnish a lavish apartment in Paris for her personal use on her twice-yearly trips there, and for excessive stock options. Governance is used to establish order between parties whose interests may be in conflict. Nor do they perform worse.. The research literature includes over 100 studies of firms in 35 countries and five continents (Post and Byron, 2015). c. poorly-performing firms But, thats impossible here; we cant randomly assign board members to companies. The report looked at S&P 500 companies that released full-year 2020 results as of May 31, 2021, analyzing their performance between 2018 and 2020. Interviewees who felt that their boards reflected this quality explained how all board members were able to speak openly and ask questions at meetings and, in doing so, they felt that all opinions were respected. c. liable for any illegal actions by the top management team. Evidence that board diversity benefits firms is mixed. "One means that is considered to improve the effectiveness of outside directors is: c. the laxity of institutional investors. In a study of 1,069 leading firms across 35 countries and 24 industries, we found that gender diversity relates to more productive companies, as measured by market value and revenue, only in . As we said, directors generally don't really want to monitor, and they are not sure if they can do so effectively. a. greenmail. "Recent research evidence shows that ownership concentration is associated with: Conventional wisdom says gender diversity in the corporate boardroom improves company performance. Its worth noting that even if the meta-analyses revealed a stronger relationship between board gender diversity and firm performance, we couldnt conclude that board gender diversity causes firm performance. But academic research says otherwise. (2020) finds that firms with older boards perform better than those with younger boards in terms of ROA. Which of the following is FALSE about corporate governance in China? Because meta-analyses provide a statistical summary a sophisticated averaging of the results of prior studies, their findings are much more credible than the findings of any single study. a. making CEOs more accountable for their performance. b. defense tactics are opposed by institutional investors. d. The gap in compensation between CEOs in public and private companies is in-creasing. Board diversity matters but concentrating on only one form of diversity isnt enough. b. decreases. 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. Spoiler alert: Rigorous, peer-reviewed studies suggest that companies do not perform better when they have women on the board. Managers in the U.S. receive ____ compensation than managers in the rest of the world. Historically, ____ have been at the center of German corporate governance structure. You know people listen. Mr. Abercrombie is con-sidering expanding his consulting practice overseas. Diversity advocates often argue that gender-diverse boards make better decisions than all-male boards. One explained that their collegial board culture resulted from information being shared openly, with little back channeling or meeting outside of the formal meeting to raise concerns. What circumstances would most likely have initiated this proposal? d.consulting accounting advisors to make sure that the plan transfers wealth to the CEO without immediately appearing on the balance sheet of CyberScope.

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