IDEAS home Printed from https://ideas.repec.org/a/bla/ausact/v28y2018i2p220-234.html
   My bibliography  Save this article

Exploring the Board Structures and Member Profiles of Top ASX Companies in Australia: An Industry†level Analysis

Author

Listed:
  • A. Chandrakumara
  • G. McCarthy
  • J. Glynn

Abstract

Using published data from the top 166 ASX companies and 1244 corporate board members, this paper presents an industry†level analysis of board structures and member profiles, and assesses them in terms of the ASX (2014, 2003) principles and recommendations. The analysis reveals that the average board size was seven, non†executive director (NED) representation on boards was 70%, women held 14% of seats on corporate boards, 17% of NEDs were women and 2% of firms had chairperson/CEO duality positions. The Financial, Industrial and Energy sectors consisted of a majority of executive directors from business and the accounting field and NEDs from the engineering field with work experience of 20 to 30 years. A greater degree of diversity in the field of study and previous experience in the same and different sectors was found in relation to board members in the majority of industrial sectors. The analysis reveals that board characteristics such as board size, having a clear majority of NEDs on boards, decreasing trends in chairperson/CEO duality position, board member diversity in terms of qualifications and previous experience in the same and different sectors were largely consistent with the ASX principles and corporate governance practices.

Suggested Citation

  • A. Chandrakumara & G. McCarthy & J. Glynn, 2018. "Exploring the Board Structures and Member Profiles of Top ASX Companies in Australia: An Industry†level Analysis," Australian Accounting Review, CPA Australia, vol. 28(2), pages 220-234, June.
    • Handle: RePEc:bla:ausact:v:28:y:2018:i:2:p:220-234
    DOI: 10.1111/auar.12177
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/auar.12177
    Download Restriction: no
    File URL: https://libkey.io/10.1111/auar.12177?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Janet Lee & Greg Shailer, 2008. "The Effect of Board-Related Reforms on Investors' Confidence," Australian Accounting Review, CPA Australia, vol. 18(2), pages 123-134, June.
    2. Stefan Beiner & Wolfgang Drobetz & Markus M. Schmid & Heinz Zimmermann, 2006. "An Integrated Framework of Corporate Governance and Firm Valuation," European Financial Management, European Financial Management Association, vol. 12(2), pages 249-283, March.
    3. Elizabeth A. Rainsbury & Sue Malthus & Patsie Anne Capper, 2012. "The Existence and Composition of Audit Committees in the New Zealand Public Sector," Australian Accounting Review, CPA Australia, vol. 22(1), pages 103-113, March.
    4. Jacqueline Christensen & Pamela Kent & Jenny Stewart, 2010. "Corporate Governance and Company Performance in Australia," Australian Accounting Review, CPA Australia, vol. 20(4), pages 372-386, December.
    5. Paul Mather & Alan Ramsay, 2007. "Do Board Characteristics Influence Impression Management through Graph Selectivity Around CEO Changes?," Australian Accounting Review, CPA Australia, vol. 17(42), pages 84-95, July.
    6. Jim Psaros & Michael Seamer, 2015. "Ranking Corporate Governance of Australia's Top Companies: A Decade On," Australian Accounting Review, CPA Australia, vol. 25(4), pages 405-412, December.
    7. C. B. Ingley & N. T. Van der Walt, 2001. "The Strategic Board: the changing role of directors in developing and maintaining corporate capability," Corporate Governance: An International Review, Wiley Blackwell, vol. 9(3), pages 174-185, July.
    8. Nicholas van der Walt & Coral Ingley, 2003. "Board Dynamics and the Influence of Professional Background, Gender and Ethnic Diversity of Directors," Corporate Governance: An International Review, Wiley Blackwell, vol. 11(3), pages 218-234, July.
    9. Pernilla Linden & Zoltan Matolcsy, 2004. "Corporate Governance Scoring Systems: What Do They Tell Us?," Australian Accounting Review, CPA Australia, vol. 14(32), pages 9-16, March.
    10. Helen Kang & Mandy Cheng & Sidney J. Gray, 2007. "Corporate Governance and Board Composition: diversity and independence of Australian boards," Corporate Governance: An International Review, Wiley Blackwell, vol. 15(2), pages 194-207, March.
    11. Corinne Cortese, 2009. "A Profile of the Non-Executive Directors of Australia's Largest Companies," Australian Accounting Review, CPA Australia, vol. 19(1), pages 33-41, March.
    12. Alireza Vafaei & Kamran Ahmed & Paul Mather, 2015. "Board Diversity and Financial Performance in the Top 500 Australian Firms," Australian Accounting Review, CPA Australia, vol. 25(4), pages 413-427, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hoa Luong & Lien Duong & John Evans, 2022. "CEO pay disparity, takeover premiums and bidder performance in Australia: efficient contracting or managerial power?," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 62(1), pages 143-179, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Naeem Tabassum & Satwinder Singh, 2020. "Corporate Governance and Organisational Performance," Springer Books, Springer, number 978-3-030-48527-6, December.
    2. Collins Ntim, 2015. "Board diversity and organizational valuation: unravelling the effects of ethnicity and gender," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 19(1), pages 167-195, February.
    3. Bello Lawal & Mohammed Nuhu, 2021. "Board Diversity or Tokenism: A Case for Social Inclusion and an Efficiency Model," Applied Finance and Accounting, Redfame publishing, vol. 7(1), pages 22-31, February.
    4. Le, Quyen & Vafaei, Alireza & Ahmed, Kamran & Kutubi, Shawgat, 2022. "Independent directors' reputation incentives and firm performance – an Australian perspective," Pacific-Basin Finance Journal, Elsevier, vol. 72(C).
    5. Pascal Nguyen & Nahid Rahman & Alex Tong & Ruoyun Zhao, 2016. "Board size and firm value: evidence from Australia," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 20(4), pages 851-873, December.
    6. Ujkan Bajra & Simon Cadez, 2018. "The Impact of Corporate Governance Quality on Earnings Management: Evidence from European Companies Cross†listed in the US," Australian Accounting Review, CPA Australia, vol. 28(2), pages 152-166, June.
    7. Ntim, Collins G. & Lindop, Sarah & Thomas, Dennis A., 2013. "Corporate governance and risk reporting in South Africa: A study of corporate risk disclosures in the pre- and post-2007/2008 global financial crisis periods," International Review of Financial Analysis, Elsevier, vol. 30(C), pages 363-383.
    8. Jacqueline Christensen & Pamela Kent & Jenny Stewart, 2010. "Corporate Governance and Company Performance in Australia," Australian Accounting Review, CPA Australia, vol. 20(4), pages 372-386, December.
    9. Collins Ntim & Teerooven Soobaroyen, 2013. "Black Economic Empowerment Disclosures by South African Listed Corporations: The Influence of Ownership and Board Characteristics," Journal of Business Ethics, Springer, vol. 116(1), pages 121-138, August.
    10. Purkayastha, Anish & Karna, Amit & Sharma, Sunil & Bhadra, Dhiman, 2021. "Board’s human capital resource and internationalization of emerging market firms: Toward an integrated agency–resource dependence perspective," Journal of Business Research, Elsevier, vol. 135(C), pages 391-407.
    11. Janet Lee & Greg Shailer, 2008. "The Effect of Board-Related Reforms on Investors' Confidence," Australian Accounting Review, CPA Australia, vol. 18(2), pages 123-134, June.
    12. Farman Ali & Muhammad Ullah & Syed Tauseef Ali & Zhen Yang & Imran Ali, 2022. "Board Diversity and Corporate Investment Decisions: Evidence from China," SAGE Open, , vol. 12(2), pages 21582440221, June.
    13. Iwasaki, Ichiro & Ma, Xinxin & Mizobata, Satoshi, 2023. "Board generational diversity in emerging markets," Emerging Markets Review, Elsevier, vol. 55(C).
    14. Mijntje Lückerath-Rovers, 2013. "Women on boards and firm performance," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 17(2), pages 491-509, May.
    15. David UMORU & Micah ELUJEKOR, 2017. "Corporate Management And Banking Industry In Nigeria: Empirical Consideration," Contemporary Economy Journal, Constantin Brancoveanu University, vol. 2(4), pages 172-179.
    16. Ferkins, Lesley & Shilbury, David & McDonald, Gael, 2005. "The Role of the Board in Building Strategic Capability: Towards an Integrated Model of Sport Governance Research," Sport Management Review, Elsevier, vol. 8(3), pages 195-225, November.
    17. Kent Baker, H. & Pandey, Nitesh & Kumar, Satish & Haldar, Arunima, 2020. "A bibliometric analysis of board diversity: Current status, development, and future research directions," Journal of Business Research, Elsevier, vol. 108(C), pages 232-246.
    18. Ferkins, Lesley & Shilbury, David, 2015. "Board strategic balance: An emerging sport governance theory," Sport Management Review, Elsevier, vol. 18(4), pages 489-500.
    19. Asad, Muhammad & Akbar, Saeed & Li, Jing & Shah, Syed Zulfiqar Ali, 2023. "Board diversity and corporate propensity to R&D spending," International Review of Financial Analysis, Elsevier, vol. 89(C).
    20. Uribe-Bohorquez, María-Victoria & Martínez-Ferrero, Jennifer & García-Sánchez, Isabel-María, 2018. "Board independence and firm performance: The moderating effect of institutional context," Journal of Business Research, Elsevier, vol. 88(C), pages 28-43.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:ausact:v:28:y:2018:i:2:p:220-234. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=1035-6908 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.