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Purpose: The purpose of the study is to examine the association between board diversity and performance of acquiring companies. The acquiring companies were chosen among the companies that have successfully merged and used as sample of this study. Design/methodology/approach: The variables of board diversity used in this study are women director, independent director education, foreign directors and multiple directors. A sample of 30 acquiring companies from industrial sector is used and data were collected over a period of eight years from 2009 to 2016. The independent variables were women director, proportion of independent director education degree and below, proportion of independent director education masters and above, proportion of foreign director, and proportion of multiple directorships. Meanwhile, firm performance was proxied by return on assets (ROA). This study used panel data analysis to analyze the relationship between the board diversity and performance of acquiring companies. Findings: The study was significantly reveals that the proportion of independent director education degree and below has negative relationship to ROA. Interestingly, the study also found that the proportion of foreign director was positive and significant against performance indicating that the diversity of top managers and directors in areas of nationality and education can impact firm performance. Therefore, the results strongly agree that foreign board members can add valuable and diverse expertise to board effectiveness as a result of their different backgrounds that local members do not possess. Originality/value: The originality of this study is by manually selecting and checking the successful of acquiring companies in Merger and Acquisition (M&A) activities in Malaysia as a sample of the study from 2009 and 2016. Keywords: board diversity, women director, acquiring company, foreign director, multiple directorship, Introduction In Malaysia, board diversity has become a major issue in successful acquiring companies. Board diversity refers to board directors are being diverse in terms of age, gender, nationality, educational [...]

Purpose: The purpose of the study is to examine the relationship between risk governance variables and the market-based performance of listed banks in Kuwait Stock Exchange (KSE). The study also introduces the influence of competitive intensity into the relationship between risk governance and market-based performance as moderating variable. Design/methodology/approach: This study examines the relationship between risk governance ,by using three variables namely chief risk officer presence, risk management committee size and meeting, with market-based performance measured by Tobin's Q and stock price return. Furthermore, the study does not neglect the importance of competitive intensity as a moderator variable. Sample selection includes 10 listed banks in Kuwait stock exchange (KSE) covering a period of 7 years. This study applies panel data regression analysis and the data required were derived from banks annual reports, financial statements, and Kuwait stock exchange (KSE) website. Research implications\limitations: The study has the following limitations (1) small sample size of 10 listed banks in Kuwait Stock Exchange (2) covers the period post the issuance of new corporate governance regulations in Kuwait and comparing the result with periods prior new regulations is difficult due to lack of information. This study can assist in future research in this field through (1) urge new researches to expand the sample size by studying risk governance practices for listed companies in Kuwait Stock Exchange (2) a comparison study can be conducted between banks in Kuwait with other countries. Practical implications: Practical implications of the study can assist in the following ways (1) Central Bank of Kuwait might benefit from the results of this study in the development of regulations related to risk governance (2)results might provide a comprehensive guideline to the risk management officials in the banks (3)investors might benefit by identifying the important risk governance variables for Kuwaiti banks. Originality: The study concentrates on the impact of risk governance on performance of banks in developing economy (Kuwait) as majority of studies concerns this relationship is conducted on developed economies while scarce researches have been conducted for developing economies. Moreover, the study enhances literature gaps by introducing the moderating impact of competitive intensity on the relationship as majority of researches focus on the direct impact of risk governance on the performance without mentioning the impact of industry competition. Keywords: Risk governance, market-based performance, competitive intensity, Introduction Risk governance has been a hot and important topic for study recently. The importance and awareness of risk governance issues has increased after the 2008 global financial crisis. Countries [...]

Purpose: Income inequality issue becomes as vital agenda to deal with, especially for developing countries. In the presence of huge income inequality in most developing countries, solutions are certainly welcome. Theoretically, remittances have the potential to address the issue of income inequality, whereby bigger size of remittances may promote a sizeable decrease in income inequality. Indeed, the main objective of this study is to investigate the contribution of remittances in alleviating income inequality in developing countries. This study also analyzes the moderating effect of entrepreneurship, rural development and infrastructure on remittances-income inequality relationship in developing countries. Design/methodology/approach: A dynamic panel estimator is applied to examine remittances-income inequality nexus, given the Generalized Method of Moment (GMM) method. This study utilizes the data from 2009 until 2017 and covers 47 developing countries. Findings: The findings of remittances reveal that they are unlikely helpful to reduce income inequality. Nonetheless, its desired role can be achieved if the recipients among the poor can allocate more for entrepreneurship activities as well as supported by better rural development and infrastructure. Due to that, this study believed that if government can design effective policy to guidance the recipients of remittances to fully maximize the usage not purely for daily one-off consumption, but also to include life-standard enhancing activities, mainly through entrepreneurship, rural development and infrastructure, income inequality can be lowered. Research limitations/implications: In general, this study may serve as a stepping stone for further empirical work regarding the income inequality issue. This study believes that the insignificant effect of remittances on income inequality could be due to the fact that low level of remittances flows in developing countries and also poor utilization of the money among the poor. Alternatively, it is important to promote and enhance more remittances flows in developing countries. Practical implications: As part of the strategies to uncover the true impact of remittances, this study also has highlighted the moderating role of entrepreneurship, rural development and infrastructure. This study finds that the presence of remittances will decrease income inequality by increasing entrepreneurship, rural development and infrastucture. Originality: In this study, the potential solutions factor is proposed to address the issue of income inequality, known as remittances. More importantly, this study also suggests that remittances can be more effective in combating income inequality if the strategies are also combined with productive entrepreneurship activities and appropriate rural development and infrastructure in creating more economic opportunities. Keywords: Remittances, income inequality, entrepreneurship, rural development and infrastructure, developing countries, dynamic panel data., Introduction The important of fair income distribution in assisting economic development is crucial in act as the primary drivers for economic growth (World Bank, 2013a; Ostry et al., 2014; Rose [...]

Purpose: This study is conducted to analyse the impact of corporate governance mechanisms specifically board governance enhancements on the performance of banks in emerging Asia from 2011 until 2015 of post 2007 global financial crisis. Design/methodology/approach: A total of 109 banks with 545 observations from eight countries are selected into this study. The board governance enhancements are represented by the proportion of directors who had qualifications in banking and/or finance, the proportion of directors who had experience in banking and/or finance and the majority number of independent directors on board. Meanwhile, net interest margin (NIM) is the proxy for bank performance. Evidently, all the three variables under board governance enhancement have significant relationship Findings: Evidently, all the three variables under board governance enhancement have significant relationship with bank performance. Concerning board qualification and experience in banking and finance, the finding of this model signifies that the appointment of more directors with qualification in banking and finance enhanced NIM of emerging Asia banks. In relation to board independence, this model documented negative relationship with NIM. Therefore, bank performance deteriorated with more independent directors on board. Research limitations/implications: Concerning direction for future research, the studies can expand the population samples, including global samples. Practical implications: The bank's management could employ more directors with qualification and experience in banking and/or finance to achieve that objective. This could be regulated by the relevant local regulators via new requirements in the countries' corporate governance codes coupled with revisions on guidelines on corporate governance for banking institutions. Originality/value: This study provide empirical model for study related to corporate governance and bank performance. Keywords: corporate governance, board structure, bank, Asia, emerging market, Introduction This study is conducted to analyse the impact of corporate governance mechanisms particularly board governance on the performance of banks in emerging Asia from 2011 until 2015 of post [...]

Purpose: The purpose of this conceptual paper is to shed light on the significance of exchange rate fluctuations in dividend repatriation decision of multinational corporations.Findings: This study proposes first order effect of exchange rate fluctuations on dividend repatriation decision of multinational corporations headquartered in countries following worldwide tax system or territorial tax system. Moreover, it recommends that ceteris paribus, appreciation of host country currency against the home country currency persuades foreign subsidiaries to repatriate more dividends and vice versa.Practical Implications: Propositions of this study will help the financial managers of the multinational corporations to time the dividend repatriation during favorable exchange rate movements, or they can use dividend repatriation policy as a hedging tool to mitigate the exchange rate risk.Originality/ Value: Exchange rate fluctuations is one of the leading issues facing by the multinational corporations. According to the financial theory it can affect the future cash flows, profitability and firm value. This study will contribute to dividend repatriation policy literature by proposing the first order effect of exchange rate fluctuations on dividend repatriation decision rather than indirect effect through transitory changes in repatriation tax as suggested by previous research.Keywords: Exchange Rate Fluctuations, Dividend Repatriation, Worldwide Tax System, Territorial Tax System, IntroductionThe exchange rate fluctuation is one of the leading issues facing by the multinational corporations. It can affect the future cash flows, profitability, and firm value (Eiteman, Stonehill and Moffett, [...]

Purpose: It is widely accepted that corporate governance is one of the most prominent elements that management must improve continuously to have a more resilient bank. Consequentially, this article examines the relationship between governance mechanisms through quality of audit committee and performance of banks in eight Asia emerging markets.Design/methodology/approach: Using panel data analysis, this study investigates the relationship between fully independent audit committee, expert independent audit committee and liquidity of 109 banks in eight countries namely China, India, Indonesia, Malaysia, South Korea, Philippines, Thailand and Taiwan for a period from 2011 to 2015.Findings: Our results suggest that both audit committee full independence and expert-independent audit committee are positively related with bank liquidity.Research limitations/implications: The study is limited to listed conventional banks in eight Asia emerging market. The findings imply the independent function of audit committee without possible interference by the majority shareholders or shareholders with concentrated ownership.Practical implications: Banks in emerging Asia have been operating in more challenging and more uncertain environment after the 2007 financial calamity. The evidence from this study signifies the importance of having fully independent and expert-independent audit committee in ensuring healthy liquidity of commercial banks in Asia emerging markets.Originality/value: The findings of this study support the existing evidences on the role of corporate governance from the perspective of audit committee which is lacking in the banking institution of Asian emerging market.Keywords: Corporate Governance, Audit Committee, Banking, Asia, IntroductionGlobal financial atmosphere is in the midst of undergoing swift transition and likewise, Asian emerging markets not excluded as well to transform the operating structure of their financial systems in [...]