b. internal controls have failed. d. a variety of compensation plans for executives of foreign subsidiaries. a. boards of directors. 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? Earn badges to share on LinkedIn and your resume. d. a poison pill. a. the strategic decision making process. c. managers' risk of job loss, loss of compensation, and/or loss of reputation. d. the opportunity for higher compensation through firm growth, a reduction in managerial employment risk. They also raised. d. Mr. Abercrombie should find significant need for his services in companies in tran-sitional economies. 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. The decisions made by top-level managers are typically complex and nonroutine. c. Employees, union members, and shareholders appoint members to the Aufsichsrat (the supervisory tier of the board). James Abercrombie has a thriving consulting firm specializing in training boards of directors in decision-making skills. d.a poison pill. Why Investors React Negatively to Companies That Put Women on Their Boards All of the following are correct about the chapter Strategic Focus on fraud and corporate gov-ernance failure at Satyam Computer Services Ltd. b. long-term incentives such as stock options. If these dynamics occur within corporate boards, boards may not take full advantage of their own cognitive variety. But our research suggests that shifting the diversity discourse away from gender to other dimensions of expertise and experience might, in fact, help women and other underrepresented groups for example, instead of saying we have appointed a female director the focus should be we have appointed an expert on China. With less emphasis on gender, female appointments might one day no longer be perceived as checking a social performance box, and signal nothing about firm preferences other than its commitment to hiring the best people for the job. Other things being equal, market analysts may, consciously or unconsciously, regard all-male boards as more competent than boards that are more gender-diverse. c. reduce the risk of total firm failure, reduce their total portfolio risk 48 It is therefore not much of a leap to assume companies appoint female directors as part of a diversity initiative. The research literature includes over 100 studies of firms in 35 countries and five continents (Post and Byron, 2015). c. the number of outside directors and the parties they represent. a. a uniform compensation plan for all corporate executives, U.S. and foreign alike. a. some foreign firms have delisted on U.S. stock exchanges. A business journal from the Wharton School of the University of Pennsylvania. In order to limit Mr. Leagreet's power, Board of Directors plans to: In a recent study, we examine board composition and financial data on 1,644 public companies in the U.S. between 1998 and 2011, controlling for numerous firm-specific characteristics like size and corporate governance structure. If Culver had just signed a blank piece of paper after being told that the bank would make a receipt out of it by printing the appropriate words around his signature, would he be able to avail himself of the defense of fraud? d.For legal reasons, the board cannot consider the interests of CalPERS over the interests of its top executives. "One means that is considered to improve the effectiveness of outside directors is: b. riskier strategies with more focused diversifica-tion for the firm. The apartment is hot or the air conditioner is not working , if and only if the temperature is 9090^{\circ}90. ____ is an important influence in Japanese corporate governance structures. One interviewee commented on how having social diversity wasnt good enough if all board members were former CEOs or CFOs. b. the market for corporate control. d.incentive. a. increases. d.riskier strategies with greater diversification for the firm. c. opportunity d. dependent. Mr. Abercrombie is con-sidering expanding his consulting practice overseas. The average correlation between board gender diversity and firm market performance (such as stock performance, shareholder returns) was even smaller and was not statistically significant. If the market for corporate control were efficient as a governance device, then only ____ would be targets for takeovers. The benefits of having a socially and professionally diverse board cannot be realized without an egalitarian board culture. Agricultural Chemicals, Inc., was the target of a hostile takeover six months ago. 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. a. greenmail. ANS: D PTS: 1 DIF: Medium d. c. salary. b. large institutional investors control large blocks of stock. The average correlation is .15. ____ is an important influence in Japanese corporate governance structures. All of the following statements are TRUE about the use of defense tactics by the target firm during a hostile takeover EXCEPT Rigorous, academic studies of CEO gender and company performance tell much the same story as rigorous, academic studies of board gender diversity and company performance do. The CEO genuinely seeks their greater involvement. There was, however, a difference in the perceived goals of the company. a. increased diversification of Sierra Infusion. a. banks d.the board of directors. b. firms earning above-average returns b. may not have a direct effect on firm performance. b. executive compensation that is primarily based on long-term performance. b. typically under-performing their industry. c. Banks' influence over corporations is increasing. Does Gender Diversity on Boards Really Boost 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. The CEO tended to dominate the conversation. One explained raising issues around diversity in the leadership pipeline and his desire to make this a higher board priority: One of our board members who is African-American came up to me afterwards and said, Thank you for bringing that up because I brought it up years ago, not so delicately, and nothing ever happened. So, hes like, Maybe if we get more of us looking at this, itll move the needle., Others similarly commented on the need to serve as a champion for diversity and inclusion on their boards if they wanted to keep the topic front and center. Indeed, this is what Post and Byrons meta-analysis showed. Activist shareholders are not necessarily more convinced about diversity being a source of value creation. So, a tiny effect is statistically significant if the sample is big enough.). What amount should Stallman report as its December 31 inventory? d. the board of directors. Members of these boards believe that both their expertise and willingness to learn is recognized and incorporated into the boards work. On analysis of the literature, we found a systematic review of non-exhaustive literature on corporate governance (ownership structure and board of directors) and firm innovation (Gonzales-Bustos & Hernndez-Lara, 2016) as well as a theoretical review on the topic (Asensio-Lpez et al., 2019).However, as far as we know, there are no prior studies on the specific association between the board . This wouldnt be a problem if diversity initiatives were not seen by many investors as little more than costly experiments. c. remains constant. ANS: D PTS: 1 DIF: Medium REF: 314 d. a. shareholders in the large institutional firms listed on the New York Stock Exchange. d.internal auditing costs have increased by about one-third. q:q:q: The air co nditioner is working. a. the firm is overpriced in the market. b. institutional shareholders "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.