This study aims to examine the control of corporate governance towards firm risks for a sample of Indonesian firms in agriculture, mining and property industries. This study highlights the impact of four indicators of internal mechanism of corporate governance, i.e. board size, board independence, board gender and board ownership, on three measurements of firm risks, i.e. total risk, asset return risk and idiosyncratic risk.,Panel data analysis is conducted using a sample of 62 companies of agriculture, mining and property industries listed in Indonesia Stock Exchange from 2013 to 2017. Pooled ordinary least square with hetero-corrected is the statistical approach conducted to test the hypotheses.,The result indicates that board size and board gender insignificantly influence firm risks. While board independence gives varied impacts towards firm risks, it gives positive influence towards total asset return risk, insignificant towards idiosyncratic risk and negative towards total risk. Other interesting results are found in board ownership that has insignificant influence on asset return risk and negative influence on idiosyncratic and total risk.,Firms should incorporate corporate governance, especially the impactful roles of board independence and board ownership as they serve as tools in reducing firm risk. Moreover, investors may have a better understanding of corporate governance and factors that are influencing firm risks. Therefore, this study can assist them to make the right investment decision.,This study is notably the first to use comprehensively three measurements of firm risks in Indonesia. Risks can come from internal and external, thus the company should understand the various types of risks facing the company. Total risk measures both the internal and external risks, while asset return risk gives another perspective using overall market perception about the equity and assets of the company. Finally, this study also measures internal risk, which is the only risk that can be controlled and minimised by the board of the company.

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Does internal corporate governance mechanism control firm risk? Evidence from Indonesia’s three high-risk sectors

The aim of this paper is to bring together some of the foundational and recent literature interlinking corporate governance and the leadership role of the board of directors. Strategic leadership is widely assumed to be a responsibility that defaults to the Chief Executive Officers (CEOs). However, in practice, what most CEOs do is strategic management rather than strategic leadership. While strategic management does share key aspects of strategic leadership CEOs are expected to prioritize the managerial side over the leadership side. This is just one of the situations in which the board-room assumes the leadership role. This paper discusses how boards of directors conduct the process of strategic leadership in their organizations. In recent years there has been an increasing interest among scholars to understand how boards strategize from a behavioral point of view. This growing interest has resulted in the development of various typologies regarding boards’ involvement in the strategic leadership processes.

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Boardroom Leadership: the Board of Directors as a Source of Strategic Leadership

There have been numerous studies on the relationship between CSR and performance of family businesses. However, academia have yet to come to a consensus regarding the sign and size of the relationship. Neither was there any consistent evidence on the boundary conditions for the relationship between CSR and performance in family businesses. Based on a review of Agency Theory, Stakeholder Theory, Stewardship Theory, Utilitarian Theory and Social Emotional Wealth Theory, this paper addresses the aforementioned research gap based on a systematic review. The study synthesised the literature on performance which is measured in three aspects by the existing literature, namely financial performance, social performance, and innovation. Moreover, the study assessed the empirical literature on the relationship between CSR and the aforementioned three performance measures. The study contributes to the literature by establishing the conceptual foundation for future empirical research.

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CSR and Performance of Family Businesses: A Systematic Review

The global COVID-19 pandemic has led to spawning norms in all quarters, including the corporate boardrooms The transformation required in boards is unprecedented in its intensity to overcome the c

https://journals.sagepub.com/doi/pdf/10.1177/0972262920987326

A Note on Boardroom Challenge, Board Effectiveness and Corporate Stewardship During COVID-19

Corporate social responsibility (CSR) has emerged as an imperative for every sector globally. Yet, for a long time, the concept of CSR has been regarded from an organizational perspective. However, the importance of CSR in shaping the extra-role behavior of employees, such as their pro-environmental behavior (PEB-E), has been under-explored in the literature. Against this backdrop, the current study aims to investigate the impact of CSR on PEB-E with the mediating effect of work engagement (W.E) in the context of a emerging country. The study also employs stewardship theory as an alternate theory to explain the proposed relationships. The data of the current study were obtained from SME sector through a self-administered (paper-and-pencil method) questionnaire. A random sample of employees (n = 398) from different SMEs was selected and analyzed through structural equation modeling. The results of the current survey revealed that CSR directly and indirectly, via W.E, predicts PEB-E positively. The findings of the current study will be helpful for policymakers to understand that well-planned CSR activities, not only create positive repute for an SME, but also provide the underlying justification to its employees to be engaged in different environment-specific behaviors.

An Examination to Explain the Mechanism of Employees' Environment-Specific Behavior through CSR and Work Engagement from the Perspective of Stewardship Theory.

Stewardship theory of corporate governance is a normative alternative to agency theory. This article argues that the stewardship behaviour of managers results in exemplary corporate governa...

S. Subramanian

Papers

Stewardship Theory of Corporate Governance and Value System: The Case of a Family-owned Business Group in India: