The impact of corporate ownership on unitary board independence: evidence from Bangladesh / Md Shamimul Hasan … [et al.]
Board independence is an important corporate governance element and without good governance it is impossible to form a unitary board system. After the crash in Bangladesh in 2011, it becomes a major issue for public listed companies in Bangladesh to follow a unitary system. This study addresses the...
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| Format: | Article |
| Language: | English |
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Universiti Teknologi MARA Cawangan Selangor
2016
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| Online Access: | https://ir.uitm.edu.my/id/eprint/31003/1/AJ_MD.%20SHAMIMUL%20HASAN%20MAR%20B%2016.pdf |
| _version_ | 1825737292828901376 |
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| author | Hasan, Md Shamimul Omar, Normah Handley-Schachler, Morrison Omran, Mohamed A |
| author_facet | Hasan, Md Shamimul Omar, Normah Handley-Schachler, Morrison Omran, Mohamed A |
| author_sort | Hasan, Md Shamimul |
| collection | UITM |
| description | Board independence is an important corporate governance element and without good governance it is impossible to form a unitary board system. After the crash in Bangladesh in 2011, it becomes a major issue for public listed companies in Bangladesh to follow a unitary system. This study addresses the issue by examining statistical relationship between corporate ownership and board independence. Descriptive statistics, bivariate analysis and multiple regression techniques are applied in analyzing the attitudes of family, public and institutional owners towards board composition, the degree of influence each type of owner has on board and the presence goes beyond board independence. The results show that board are lacking in independence and family ownership has a significant, negative effect on board independence, in which the results indicate that public and institutional ownership have a positive, nonsignificant influence. It is recommended for professionals to be included on board and that nonexecutive directors should be selected by a search committee to ensure that their competency matches the firm needs. It is further recommended that there should be a minimum of two independent directors and that management should be motivated, in line with the positive reinforcement theory. The German or Japanese model (two-tier board) can also be considered. This study also suggests that regulators should rethink how an independent and professional board can be formed when the barrier of concentrated ownership is removed. |
| first_indexed | 2024-03-06T02:15:49Z |
| format | Article |
| id | oai:ir.uitm.edu.my:31003 |
| institution | Universiti Teknologi MARA |
| language | English |
| last_indexed | 2024-03-06T02:15:49Z |
| publishDate | 2016 |
| publisher | Universiti Teknologi MARA Cawangan Selangor |
| record_format | dspace |
| spelling | oai:ir.uitm.edu.my:310032020-06-15T04:09:04Z https://ir.uitm.edu.my/id/eprint/31003/ The impact of corporate ownership on unitary board independence: evidence from Bangladesh / Md Shamimul Hasan … [et al.] mar Hasan, Md Shamimul Omar, Normah Handley-Schachler, Morrison Omran, Mohamed A HD Industries. Land use. Labor Corporations Corporate organization. Corporate governance Board independence is an important corporate governance element and without good governance it is impossible to form a unitary board system. After the crash in Bangladesh in 2011, it becomes a major issue for public listed companies in Bangladesh to follow a unitary system. This study addresses the issue by examining statistical relationship between corporate ownership and board independence. Descriptive statistics, bivariate analysis and multiple regression techniques are applied in analyzing the attitudes of family, public and institutional owners towards board composition, the degree of influence each type of owner has on board and the presence goes beyond board independence. The results show that board are lacking in independence and family ownership has a significant, negative effect on board independence, in which the results indicate that public and institutional ownership have a positive, nonsignificant influence. It is recommended for professionals to be included on board and that nonexecutive directors should be selected by a search committee to ensure that their competency matches the firm needs. It is further recommended that there should be a minimum of two independent directors and that management should be motivated, in line with the positive reinforcement theory. The German or Japanese model (two-tier board) can also be considered. This study also suggests that regulators should rethink how an independent and professional board can be formed when the barrier of concentrated ownership is removed. Universiti Teknologi MARA Cawangan Selangor 2016-06 Article PeerReviewed text en https://ir.uitm.edu.my/id/eprint/31003/1/AJ_MD.%20SHAMIMUL%20HASAN%20MAR%20B%2016.pdf The impact of corporate ownership on unitary board independence: evidence from Bangladesh / Md Shamimul Hasan … [et al.]. (2016) Management & Accounting Review (MAR) <https://ir.uitm.edu.my/view/publication/Management_=26_Accounting_Review_=28MAR=29/>, 15 (1). pp. 1-28. ISSN 2550-1895 http://arionline.uitm.edu.my/ojs/index.php/MAR/article/view/557 |
| spellingShingle | HD Industries. Land use. Labor Corporations Corporate organization. Corporate governance Hasan, Md Shamimul Omar, Normah Handley-Schachler, Morrison Omran, Mohamed A The impact of corporate ownership on unitary board independence: evidence from Bangladesh / Md Shamimul Hasan … [et al.] |
| title | The impact of corporate ownership on unitary board independence: evidence from Bangladesh / Md Shamimul Hasan … [et al.] |
| title_full | The impact of corporate ownership on unitary board independence: evidence from Bangladesh / Md Shamimul Hasan … [et al.] |
| title_fullStr | The impact of corporate ownership on unitary board independence: evidence from Bangladesh / Md Shamimul Hasan … [et al.] |
| title_full_unstemmed | The impact of corporate ownership on unitary board independence: evidence from Bangladesh / Md Shamimul Hasan … [et al.] |
| title_short | The impact of corporate ownership on unitary board independence: evidence from Bangladesh / Md Shamimul Hasan … [et al.] |
| title_sort | impact of corporate ownership on unitary board independence evidence from bangladesh md shamimul hasan et al |
| topic | HD Industries. Land use. Labor Corporations Corporate organization. Corporate governance |
| url | https://ir.uitm.edu.my/id/eprint/31003/1/AJ_MD.%20SHAMIMUL%20HASAN%20MAR%20B%2016.pdf |
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