Our latest report shows not only that the business case remains robust but also that the relationship between diversity on executive teams and the likelihood of financial outperformance has strengthened over time. c. the laxity of institutional investors. Abercrombie should find significant need for his services in companies in transitional economies. d. governmental relations. Research suggests that boards of directors perform - Course Hero 2010).These studies generally focus on institutional investors as shareholders (Roberts and Yuan 2006), and when they do address the role of . Nor do they perform worse.. b. composed solely of outside directors. As a means of increasing profits, IFS has used substandard ingredients in these meals and has consistently lied about this practice during quality investigations by the Marines. "A major conflict of interest between top executives and owners, is that top executives wish to diversify the firm in order to ____, while owners wish to diversify the firm to ____. c. managers' risk of job loss, loss of compensation, and/or loss of reputation. d. a system of cross-shareholding among firms. These dynamics appear to shape whether diversity on the board actually matters to the boards work. I think we all recognize the value and we all respect the diversity and the importance of diversity. Consensus The argument that gender diversity on the board will improve company performance rests on the assumption that the addition of one or more women to an all-male board will increase the boards cognitive variety because women the argument goes differ from men in their values, experiences, and knowledge. On more hierarchical boards, the CEO, Chairman, or lead independent director tends to dominate board meetings. a. the number of stockholders and the parties they represent. d. large; large. Hostile takeover attempts are so common that they do not reflect negatively on the firm's performance. And to the extent investors care about shareholder value, they will penalize those companies they suspect are putting other goals first. Mr. Abercrombie is considering expanding his consulting practice overseas. d. a variety of compensation plans for executives of foreign subsidiaries. Nor are they any more profitable, for that matter. Women should be appointed to boards for reasons of gender equality, but not because gender diversity on boards leads to improvements in company performance. d.the top management team's interests and the owners' interests are aligned. a. increases shareholder value significantly. d.reduce the size of the stock option package provided to Mr. Leagreet. c. Borders' decision to increase the size of its board b. the board includes employees as votingmembers. "Several members of the board of directors of American Textile Products (ATP) have proposed creating the position of lead director. Mr. Abercrombie is con-sidering expanding his consulting practice overseas. b. enforcement It might be unconscious bias. a. mandating that all outside directors be drawn from government or academia rather than industry. d.For legal reasons, the board cannot consider the interests of CalPERS over the interests of its top executives. High-performing boards: What's on their agenda? | McKinsey d. The firing by President Obama of the CEO of General Motors because the board had failed to act in previous years. c. poorly-performing firms Who is ultimately responsible for the corporate climate that resulted in this wrongdoing? Which of the following statements is most likely to be TRUE? c. often performing above their industry averages. Another explanation is that investors react to what they perceive to be a change in firm preferences. a. d. tying the compensation of CEOs to measurable financial criteria. The relationship between CEO gender and long-term company performance is statistically significant, the authors find, but tiny. How diversity, equity, and inclusion (DE&I) matter | McKinsey b. higher One board member discussed her experience on a board: I do feel Im listened to The CEO makes a big difference in terms of the openness., Similarly, another shared how a different CEO made it easier for board members to access the management team: It starts, again, with the CEO not playing the hierarchical role and saying, You cant talk to one of my VPs unless you come through meSo we had access to the next level of management. d.outsidedirectors ownsignificantequityintheorganization. d.Traditionally privately-owned Japanese firms are going public. Which of the following is NOT an internal governance mechanism? The compensation of top executives of Chinese companies is closely related to pri-or and current financial performance of the firm. This isnt a strong relationship, but its a good bit stronger than the relationship between board diversity and corporate performance. One board member shared: We look at diversity in a lot of different ways experience, age, ethnicity, gender, etc.. 5. mechanics and neural control of contraction, Information Technology Project Management: Providing Measurable Organizational Value, John David Jackson, Patricia Meglich, Robert Mathis, Sean Valentine. By and large, the obverse is true: breaking glass helps firms slightly. d. reduction in R&D expenditure. a. bonuses. b. riskier strategies with more focused diversifica-tion for the firm. This is in fact what we found. 1 The survey revealed dramatic differences in how directors . While new to the U.S., mandates to increase gender diversity on corporate boards are common elsewhere. Ambrose Bierce, the CEO of DictionAry, has been paid a lump sum amounting to three years' salary because DictionAry has been bought in a hostile takeover by its main competitor. q:q:q: The air co nditioner is working. The argument is that women differ from men in their knowledge, experiences, and values and thus bring novel information and perspectives to the board. Couple times it hasnt been but someone will just say, Hey thats not very respectful, you know the way you just said that., Several interviewees told us that boards that value open communication are more likely to engage in conversations about diversity even those that believe they still have a long way to go. b. 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. Similarly, after promising to address board diversity, Skechers explained their decision not to nominate a female director by saying that the firms primary focus is on maximizing shareholder value. In May 2019, the company nominated their first female board member following the enactment a law requiring California companies to have at least one woman on their board. New Report: Companies With Diverse Boards Out Performed Their Peers d. 75. b. higher An immense investigative effort has been devoted to these questions: over 140 studies in the past several decades, conducted in dozens of countries, and published in journals from many different disciplines and theoretical traditions. It is worth noting that gender diversity in other kinds of work teams is not significantly positively related to performance, either. d. reduce their employment risk, increase the company's value, Agency costs reflect all of the following EXCEPT ____ costs. Some research suggests, for example, that gender-diverse boards make fewer acquisitions than all-male boards (. One interviewee revealed how she turned down a board position because she felt that the interviewing board members were not able to comment on her expertise only their desire to have gender diversity on the board. What difference can Archibald expect? c. often performing above their industry averages. Again, we cant know for certain why board diversity doesnt predict company performance, but it seems likely that some of the following factors explain the very weak and mostly non-significant effects: While research indicates that in general male and female adults differ somewhat in their values, experiences, and knowledge (and the differences are not huge), its not clear that male and female board members differ all that much in their values, experiences, and knowledge. If investors are indeed interpreting female appointments as a sign that the company is less committed to maximizing returns to their shareholders, the effect of increases in board diversity should be larger for those companies that demonstrate commitment to social goals in other ways. c. the firm's top managers. c. Corporate governance mechanisms can be in conflict with one another. destination. d. Firms with higher state ownership tend to have lower market value and more vola-tility in those values over time. It is not uncommon for a firm to explicitly mention gender when they announce appointments of new board members but of course this only happens if the new board member is a woman. b. long-term incentives such as stock options. c. public pension funds c. greenmail. The chapter Opening Case indicates that many CEOs earn more than ____times the amount re-ceived by their firm's lowest-paid employee. As ownership of the corporation is diffused, shareholders' ability to monitor managerial deci-sions a. the strategic decision making process. "The use of excessively-generous stock options for executive compensation has been slowed in the past couple years for all of the following reasons EXCEPT: "Archibald Smith has moved from an upper-middle management job at Chromatic Array, Inc., to a similar position with Pixilair Corporation. How to build a better, more just workplace. In sum, the research results suggest that there is no business case for or against appointing women to corporate boards. d. outside directors own significant equity in the organization. They also raised concerns with what they referred to as checking the box initiatives and tokenism for the sake of board diversity. c. uncontrollable events may affect the long-term performance of the firm. At a meeting over dinner, the top management team agrees to go to the board of directors with a proposal for: b. increase the price of the firm's stock, increase the dividends paid out from free cash flows There was, however, a difference in the perceived goals of the company. Hed speak like, without taking any breaths for two hours on end., But even in hierarchical cultures, the CEO, Chairman, or lead director can help to create a more open communication environment. On January 1, California law said that all locally headquartered publicly traded companies must have at least one female director by 2020. d. Mr. Abercrombie should find significant need for his services in companies in tran-sitional economies. b. risk undertaken by managers to earn stock options. One interviewee discussed how this was a particularly challenging dynamic on a board that was resistant to input either from shareholders or board members: There was not a lot of open communication. b. financial responsibility to employees. a. a uniform compensation plan for all corporate executives, U.S. and foreign alike. They prefer to start from a position of trust. d. the number of outside directors and total percentage of shares they own. Which of the following statements is most likely to be TRUE? c. private shareholders rarely have large ownership positions in the firm. d. the CEO is also the chairperson of the board of directors. As an illustration, I show that two current measures of board of director performance, board meeting activity and director attendance, suggest that the boards of Asian firms do not compare favorably to the boards of firms from developed markets. b. risk undertaken by managers to earn stock options. Still, given all the studies of board diversity and company performance that have been conducted to date, it seems very unlikely that new research will reveal a strong, clear relationship between board diversity and company performance. c. used to reduce corporate debt. International Food Services (IFS) has a contract with the Marines to supply meals for its troops in Iraq and other foreign assignments. The Vorstand of a German corporation makes decisions about organization direction and management. "The board of directors of CyberScope, Inc., is designing a stock option plan for its CEO that will motivate the CEO to increase the market value of the firm. d. The compensation committee may not have comprehensive firm performance data. Given the demands for greater accountability and improved performance, which of the follow-ing is NOT a voluntary change many boards of directors have initiated? "Monitoring by shareholders is usually accomplished through: A business journal from the Wharton School of the University of Pennsylvania. (Statistical significance depends in part on sample size. 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. "Top executives resist tying their compensation to long-term performance of the firm mainly because: b. firms earning above-average returns a. making CEOs more accountable for their performance. For example, a few years ago, Apples shareholders voted against recruiting more minorities to its top management team, after the company argued that such a measure would be overly restrictive. a. the director of food service for IFS a. b. executive compensation that is primarily based on long-term performance. d.prevented by the Sarbanes-Oxley Act from owning more than 50% of the stock of any one firm. However, rigorous, peer-reviewed academic research paints a different picture. Another recent study by Jonson et al. 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 c. the firm's tax issues. But, thats impossible here; we cant randomly assign board members to companies. c. the banks owing the largest shares of stock in the firm. the board is homogenous in composition. Women should be appointed to boards for reasons of gender equality, but not because gender diversity on boards leads to improvements in company performance. d. requiring that outside directors be truly objective by having no ownership interest in the firm. Board Diversity, Firm Risk, and Corporate Policies a. reasonably compensating a CEO. a. b. more common than data values close to the mean. We then gave the participants a list of 10 corporate goals and asked them how much they thought the company cared about each of them. d. Corporate governance is best achieved with a board of directors with strong ties to management. b. the manager frequently invests in the acquired firm which allows them extensive profits, the manager can frequently buy excess assets divested by the acquired firm c. pressure the board of directors to reprice their stock options. "The board of directors of CamCell, Inc., wishes to design a CEO compensation plan that will align the personal interests of the CEO with the interests of the shareholders in long-term firm performance. Which of the following is TRUE of trends in Japan's corporate governance structure? d. incentive. c. Institutional investors disapprove of long-term executive incentive plans and they may sell their blocks of stock in CamCell. Despite popular press accounts that suggest that teams high in gender diversity outperform those composed only of men or only of women, rigorous research does not support this conclusion. d. more variable, The longer the focus of managerial incentive compensation, the greater the ____ top-level man-agers. c. opportunity d.The firm is traded on the New York Stock Exchange and must change its corporate governance to comply with the NYSE's new rules. Yet, the answers have not been clear or consistent. a. going to actively defend their firm from takeover attempts. b. the board includes employees as voting members. The ownership of major blocks of stock by institutional investors have resulted in all of the fol-lowing EXCEPT a. bonuses. So, a tiny effect is statistically significant if the sample is big enough.). b. free cash flows Does this mean that we should not promote women to corporate boards? c. used to reduce corporate debt. b. Japanese firms will have little interest in Mr. Abercrombie's specialty because these skills are already practiced at a high level. a. available to comment to external analysts. Even if the women named to corporate boards are different from the men on these boards, they may not speak up in board conversations and they may lack the influence to change the boards decisions. c. poorly-performing firms What other expenses might it expect? The women named to corporate boards may not in fact differ very much in their values, experiences, and knowledge from the men.. Research suggests that boards of directors perform better if: a. outside directors own significant equity in the organization. A virtually exclusive reliance on financial controls may occur when outsider-dominated boards exist. Because women directors tend to be significantly . a. defense tactics are usually beneficial for the executives of the target firm. Corporate governance and board effectiveness 2.0 - ResearchGate Consequently, the board is: c. crossing the palm with silver. Which of the following is a FALSE statement about corporate governance? What amount should Stallman report as its December 31 inventory? Mr. Abercrombie has had striking success in reducing conflict and hostility among directors and allowing boards to develop more cohesiveness. The board wishes the CEO to take more short-term risks in order to achieve poten-tially higher long-term returns. The modest size of the positive effects helps explain ambiguity and inconsistency in prior scholarship (past research has been triangulating on a weak signal in a noisy field), and they caution against overclaiming about strong or causally dependable financial benefits (Eagly, 2016). d.Individualism. MGMT Chapter 10 Flashcards | Quizlet Implementing a director appraisal system. d. potential tax burden for. The board has been successful in reducing the percentage of CEO pay that is composed of stock options. a. a. reasonably compensating a CEO. b. banks and other lending institutions that have provided major financing to the firm. Research: When Gender Diversity Makes Firms More Productive d. of the focus on stewardship-management in German firms rather than the financial performance focus of U.S. firms. c. excessive management compensation. They are more a function of general market conditions. c. compensating directors with stock options rather than with fixed remuneration 48 At the board of directors level, more ethnically and cultural diverse companies were 43% more likely to see. If so, how and when? Given the findings of research on board gender diversity, one might wonder about the effects on company performance of CEO gender and top management team gender diversity. c. reduce the risk of total firm failure, reduce their total portfolio risk c. excessive management compensation. c. large block shareholders such as mutual funds and pension funds. d. outside directors own significant equity in the organization. a. Writing recently on Huffington Post, for example, one consultant observed the following: Companies with gender-diverse management teams have been proven to consistently perform better and be more profitable than those without them. Research suggests that boards of directors perform - Course Hero a. the CEO is also the chairperson of the board of directors. c. large; small The results of these two meta-analyses, summarizing numerous rigorous, original peer-reviewed studies, suggest that the relationship between board gender diversity and company performance is either non-exist (effectively zero) or very weakly positive. "There is some evidence that those firms targeted for takeover by active corporate raiders are: c. private shareholders rarely have large ownership positions in the firm. His current boards are shifting to a different approach: a process of assessment where you periodically look at the skill sets that you would ideally want on the board, given the business its in, and then the skill sets you have, and you identify any missing. At a meeting over dinner, the top management team agrees to go to the board of directors with a proposal for c. Electing an lead director. d.the difference in risk propensity between owners and managers. b. large institutional investors control large blocks of stock. d. is eliminated. d.has weakened the effect of other governance mechanisms. a. Mr. Abercrombie will have a large market in Japan because the culture highly values consensus decision making. c. elevation of foreign executive compensation to U.S. levels. a. negatively related to: d. consulting accounting advisors to make sure that the plan transfers wealth to the CEO without immediately appearing on the balance sheet of CyberScope. Corporate governance revolves around the relationship between which two parties? The correlation is .03. b. requiring that outside directors be former executives of the firm. The gap between CEO pay and the pay of other top executives at Chromatic was significantly larger than at Pixilair. d. always outperforming their industry. 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 Some major Japanese firms are bringing in more outsiders onto their boards of directors. A majority of the directors are concerned that while Mr. Leagreet has been re-sponsible for the firm's earning above-average returns, he has been displaying a tendency to-ward personal extravagance at the firm's expense. Corporate governance mechanisms sometimes fail to monitor and control top man-agers' decisions. b. likely to gain financially if their employing firm is taken over by another. If so, board gender diversity may be positively related to accounting returns, but not market returns. During the debate, one of the directors raises the point that CalPERS owns a significant portion of Acme Brand stock. People coming from that diverse role I think really does help a board to get better results.. a. lead independent the CEO is also the chairperson of the board of directors.b.
Who Does Colin Bridgerton Marry, Articles R
Who Does Colin Bridgerton Marry, Articles R