Institutional ownership and board governance. A structured literature review on the heterogeneous monitoring role of institutional investors

IF 5.5 Q1 BUSINESS

Corporate Governance-The International Journal of Business in Society Pub Date : 2023-07-11 DOI:10.1108/cg-10-2022-0414

Patrick Velte

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引用次数: 1

Abstract

Purpose This paper aims to review empirical research on the relationship between institutional ownership (IO) and board governance (85 studies). Design/methodology/approach Based on agency and upper echelons theory, the heterogeneous monitoring function of specific types and the nature of institutional investors on board composition, compensation and chief executive officer (CEO) characteristics will be focused. Findings The author found that most studies have referred to archival studies, analyzed the impact of board governance on IO, focused on CEO characteristics, neglected IO heterogeneity and advanced regression models to address endogeneity concerns. In line with the theoretical framework, the relationship between total IO and board governance is heterogeneous. However, specific types such as foreign, dedicated and pressure-resistant institutions represent active monitoring tools and push for increased board governance. Research limitations/implications The author provided useful recommendations for future research from a content and methodological perspective, e.g. the need for analyzing the impact of IO on sustainable board governance and other characteristics of top management team members, e.g. the chief financial officer. Practical implications As many regulatory bodies implemented regulations to promote shareholder rights and board governance, this literature review highlights the connections of both corporate governance mechanisms. Managers should conduct a careful and timely investor analysis and change the composition and compensation of the board of directors in line with institutional investors’ preferences. Originality/value This analysis makes useful contributions to prior research by focusing on IO and board governance, whereas the author structured the heterogeneous variables and results within the structured literature review. The authors guides researchers, regulatory bodies and business practice in this corporate governance topic.

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机构所有权和董事会治理。对机构投资者异质性监督作用的结构化文献综述

本文旨在回顾关于机构所有权(IO)与董事会治理关系的实证研究(共85项)。设计/方法/途径基于代理和上层理论，将重点研究特定类型的异质监测功能和机构投资者的性质对董事会构成、薪酬和首席执行官(CEO)特征的影响。作者发现，大多数研究都参考了档案研究，分析了董事会治理对IO的影响，关注CEO的特征，忽略了IO的异质性和先进的回归模型来解决内质性问题。根据理论框架，总IO与董事会治理之间的关系是异质的。然而，外国、专门和抗压力机构等特定类型代表着积极的监督工具，并推动加强董事会治理。研究局限/启示作者从内容和方法的角度为未来的研究提供了有用的建议，例如需要分析IO对可持续董事会治理和最高管理团队成员(例如首席财务官)的其他特征的影响。由于许多监管机构实施了促进股东权利和董事会治理的法规，本文献综述强调了这两种公司治理机制的联系。管理者应认真及时地对投资者进行分析，并根据机构投资者的偏好改变董事会的组成和薪酬。原创性/价值该分析通过关注IO和董事会治理对先前的研究做出了有益的贡献，而作者在结构化文献综述中构建了异质变量和结果。作者指导研究人员，监管机构和商业实践在这个公司治理主题。

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来源期刊

Corporate Governance-The International Journal of Business in Society BUSINESS-

CiteScore

11.20

自引率

33.90%

发文量

期刊介绍： Providing a consistent source of in-depth information, analysis and advice considering corporate governance on an international scale, Corporate Governance: The International Journal of Business in Society focuses on knowledge development, practice and performance standards for scholars and Boards of Directors/ Governors of companies throughout the world. The journal publishes a diverse range of substantive theoretical and methodological debates as well as practical developments in the field of corporate governance worldwide. The journal particularly encourages attention to the impact of changes of business/corporate governance forms and practices on people, and the sustainability of different governance models. Articles that highlight models and structures that advance the interests, dignity and well being of all stakeholders, in a sustainable manner, are particularly welcome. The journal covers a broad spectrum of governance-related themes including: -Effective boardroom performance -Control and regulation -Executive leadership -The role and contribution of external (non-executive) directors -The growing importance of governance in the wake of ever-greater corporate scandals -Redefinitions and reassessments of corporate governance models -The role of business in society -The changing nature of the relationship and responsibilities of the firm towards various stakeholders -The incentives required to encourage more socially- and environmentally-responsible corporate action -The role and impact of local and international regulatory agencies and regimes on corporate behaviour.

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