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The Nomination Committee in Maltese Listed Companies

In: 6th International OFEL Conference on Governance, Management and Entrepreneurship. New Business Models and Institutional Entrepreneurs: Leading Disruptive Change. April 13th - 14th, 2018, Dubrovnik, Croatia

Author

Listed:
  • Baldacchino, Peter J.
  • Gatt, Jessica
  • Tabone, Norbert
  • Bezzina, Frank

Abstract

This aim of this study is to examine the Nomination Committee (NC) in Maltese listed companies. The study achieves this by assessing the Maltese regulatory framework relating to this Committee, as well as its roles, status and effectiveness. A predominantly qualitative mixed methodology was employed to achieve these objectives. Twenty-five semi-structured interviews were held with two financial analysts, two MFSA representatives, eight audit firm representatives and 13 representatives of Maltese Listed Companies (MLCs) Research findings show that the NC is not as yet not well established among MLCs. There is a particular lack of insistence on the part of local regulatory authorities, as well as substantial resistance from listed companies, with regard to the adoption of this committee. Furthermore, most NCs in such companies are not performing all of the roles listed in their Code while the roles currently performed may need to be carried out in a more structured manner. Yet it is highly worthwhile for such companies to devote more attention to the NC, this being one of the best possible bastions of appropriate corporate governance. The change in the status of the NC from being merely recommended by the Code of Principles of Good Corporate Governance to becoming mandatory by the Listing Rules is increasingly called for. In this way, Maltese listed companies will need to embrace such a change. It is hoped that this study will contribute towards fostering more awareness about the NC and the corporate governance of Maltese listed companies.

Suggested Citation

  • Baldacchino, Peter J. & Gatt, Jessica & Tabone, Norbert & Bezzina, Frank, 2018. "The Nomination Committee in Maltese Listed Companies," 6th International OFEL Conference on Governance, Management and Entrepreneurship. New Business Models and Institutional Entrepreneurs: Leading Disruptive Change (Dubrovnik, 2018), in: 6th International OFEL Conference on Governance, Management and Entrepreneurship. New Business Models and Institutional Entrepreneurs: Leading Disrupt, pages 125-139, Governance Research and Development Centre (CIRU), Zagreb.
    • Handle: RePEc:zbw:ofel18:179987
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    References listed on IDEAS

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    1. Richard Clune & Dana R. Hermanson & James G. Tompkins & Zhongxia (Shelly) Ye, 2014. "The Nominating Committee Process: A Qualitative Examination of Board Independence and Formalization," Contemporary Accounting Research, John Wiley & Sons, vol. 31(3), pages 748-786, September.
    2. Nikos Vafeas, 1999. "The Nature of Board Nominating Committees and Their Role in Corporate Governance," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 26(1‐2), pages 199-225, January.
    3. Andrews Owusu & Charlie Weir, 2018. "Agency costs, ownership structure and corporate governance mechanisms in Ghana," International Journal of Accounting, Auditing and Performance Evaluation, Inderscience Enterprises Ltd, vol. 14(1), pages 63-84.
    4. Nikos Vafeas, 1999. "The Nature of Board Nominating Committees and Their Role in Corporate Governance," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 26(1-2), pages 199-225.
    5. McKnight, Phillip J. & Weir, Charlie, 2009. "Agency costs, corporate governance mechanisms and ownership structure in large UK publicly quoted companies: A panel data analysis," The Quarterly Review of Economics and Finance, Elsevier, vol. 49(2), pages 139-158, May.
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    Cited by:

    1. Peter J. Baldacchino & Norbert Tabone & Enrica Maria Debono & Simon Grima, 2021. "Audit Committees in Maltese Listed Companies and their Perceived Effectiveness: An Assessment," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 22-51.
    2. Baldacchino Peter.J & Mercieca & Marelaine & Tabone & Norbert & Ellul & Lauren Grima & Simon, 2022. "Board Gender Diversity in Maltese Equity-Listed and Large Public Sector Entities*," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 555-586.
    3. Peter J Baldacchino & Claire Vella & Simon Grima, 2019. "The Corporate Governance Code and Compliance by Maltese Listed Companies," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 71-90.

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