Jennifer Morton, Russell Sacks, Jenny Ding Jordan, Steven Blau, P. Sean Kelly, Taylor Pugliese, Andrew Lewis and Caitlin Hutchinson Maddox
This article provides a resource for traders and other market participants by providing an overview of certain automatic circuit breaker mechanisms and discretionary powers that…
Abstract
Purpose
This article provides a resource for traders and other market participants by providing an overview of certain automatic circuit breaker mechanisms and discretionary powers that the U.S. Securities and Exchange Commission (SEC), Financial Industry Regulatory Authority (FINRA) and the U.S. president, as applicable, can exercise to pause or stop the trading of individual securities or trading activities across exchanges during extreme market volatility, each of which can cause interruptions to trading activity.
Design/methodology/approach
This article surveys automatic and discretionary mechanisms to halt trading activity under extreme market conditions. In particular, the article examines automatic cross-market circuit breakers, limit up-limit down pauses, the alternative uptick rule, as well as discretionary authority to stop short selling of particular securities and to stop trading across exchanges.
Findings
The article concludes that market participants must be cognizant not only of automatic cross-market circuit breakers, but also several other forms of potential market disruptions that may occur due to increased market volatility during the COVID-19 pandemic and beyond.
Originality/value
By exploring various mechanisms that respond to market disruption, this article provides a valuable resource for traders and other market participants looking to identify and respond to potential interruptions to their trading activity.
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Thalia Anthony, Juanita Sherwood, Harry Blagg and Kieran Tranter
In the present times, volunteers constitute a critical element of the human resources (HR) of non-profit organizations. All over the world, non-profit organizations work in…
Abstract
In the present times, volunteers constitute a critical element of the human resources (HR) of non-profit organizations. All over the world, non-profit organizations work in complex environments, which are why non-profit organizations are facing increasing pressures to adopt contemporary HR management practices, not just in terms of their paid employees, but also with respect to managing their volunteers. It is frequently believed that volunteers are central to the functioning of non-profit organizations. Volunteers perform their responsibilities for the non-profit organization only because they care about its beneficiaries; however, a vital part is played by HR in facilitating their involvement, dedication and efficiency. Previously, non-profit organizations concentrated on developing and executing their objectives for the future; however, they are now starting to accept the significance of adopting a more professional approach regarding managing the volunteers so as to accomplish those objectives. In this regard, the purpose of the chapter is to: (1) analyze the factors that encourage volunteering in non-profit organizations; (2) offer theoretical anchoring through which it can be comprehended how HR practices draw, involve and sustain volunteers; (3) describe the HR practices that are most appropriate for volunteers and (4) offer the pathway for subsequent research regarding how HR and volunteering are related to each other.
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Helen R. Pernelet and Niamh M. Brennan
To demonstrate transparency and accountability, the three boards in this study are required to meet in public in front of an audience, although the boards reserve confidential…
Abstract
Purpose
To demonstrate transparency and accountability, the three boards in this study are required to meet in public in front of an audience, although the boards reserve confidential issues for discussion in private sessions. This study examines boardroom public accountability, contrasting it with accountability in board meetings held in private. The study adopts Erving Goffman's impression management theory to interpret divergences between boardroom behaviour in public and private, or “frontstage” and “backstage” in Goffman's terminology.
Design/methodology/approach
The research observes and video-records three board meetings for each of the three boards (nine board meetings), in public and private. The research operationalises accountability in terms of director-manager question-and-answer interactions.
Findings
In the presence of an audience of local stakeholders, the boards employ impression management techniques to demonstrate accountability, by creating the impression that non-executive directors are performing challenge and managers are providing satisfactory answers. Thus, they “save the show” in Goffman terms. These techniques enable board members and managers to navigate the interface between demonstrating the required good governance and the competence of the organisations and their managers, while not revealing issues that could tarnish their image and concern the stakeholders. The boards need to demonstrate to the audience that “matters are what they appear to be”, even if they are not. The research identifies behaviour consistent with impression management to manage this complexity. The authors conclude that regulatory objectives have not met their transparency aspirations.
Originality/value
For the first time, the research studies the effect of transparency regulations (“sunshine” laws) on the behaviour of boards of directors meeting in public. The study contributes to the embryonic literature based on video-taped board meetings to access the “black box” of the boardroom, which permits a study of impression management at board meetings not previously possible. This study extends prior impression management theory by identifying eleven impression management techniques that non-executive directors and managers use and which are unique to a boardroom context.
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Thalia Anthony, Juanita Sherwood, Harry Blagg and Kieran Tranter
Niamh M. Brennan, Collette E. Kirwan and John Redmond
The purpose of this paper is to understand the influence of information and knowledge exchange and sharing between managers and non-executive directors is important in assessing…
Abstract
Purpose
The purpose of this paper is to understand the influence of information and knowledge exchange and sharing between managers and non-executive directors is important in assessing the dynamic processes of accountability in boardrooms. By analysing information/knowledge at multiple levels, invoking the literature on implicit/tacit and explicit information/knowledge, the authors show that information asymmetry is a necessary condition for effective boards. The authors introduce a conceptual model of manager-non-executive director information asymmetry as an outcome of the interpretation of information/knowledge-sharing processes amongst board members. The model provides a more nuanced agenda of the management-board information asymmetry problem to enable a better understanding of the role of different types of information in practice.
Design/methodology/approach
The analysis of information/knowledge exchange, sharing and creation and the resultant conceptual model are based on the following elements: manager-non-executive director information/knowledge, management-board information/knowledge and board dynamics and reciprocal processes converting implicit/tacit into explicit information/knowledge.
Findings
The paper provides new insights into the dynamics of information/knowledge exchange, sharing and creation between managers and non-executive directors (individual level)/between management and boards (group level). The authors characterise this as a two-way process, back-and-forth between managers/executive directors and non-executive directors. The importance of relative/experienced “ignorance” of non-executive directors is revealed, which the authors term the “information asymmetry paradox”.
Research limitations/implications
The authors set out key opportunities for developing a research agenda from the model based on prior research of knowledge conversion processes and how these may be applied in a boardroom setting.
Practical implications
The model may assist directors in better understanding their roles and the division of labour between managers and non-executive directors from an information/knowledge perspective.
Originality/value
The authors apply Ikujiro Nonaka’s knowledge conversion framework to consider the transitioning from individual implicit personal to explicit shared information/knowledge, to understand the subtle processes at play in boardrooms influencing information/knowledge exchange, sharing and creation between managers and non-executive directors.
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Leticia Pérez-Calero Sánchez, Jaime Guerrero-Villegas and José Manuel Hurtado González
Using a contingency approach, the purpose of this paper is to study how organizational factors (such as the organizational life cycle, firm size, firm ownership concentration and…
Abstract
Purpose
Using a contingency approach, the purpose of this paper is to study how organizational factors (such as the organizational life cycle, firm size, firm ownership concentration and firm technology) determine the relative importance of the monitoring and provision of resources roles provided by board members.
Design/methodology/approach
This paper highlights the importance of contingency factors in carrying out board’s roles using a sample of 579 European firms registered in the STOXX Europe 600 index. The authors used a longitudinal analysis for the period from 2002 through to 2011.
Findings
The results show that the monitoring role is more relevant for companies that are large, are operating at the mature and stagnant stages, have a dispersed ownership and are low-technology. However, the provision of resources role is more relevant for companies that are in the growth and stagnant stages, and have a concentrated ownership.
Originality/value
The traditional analysis that relates the board’s structure and composition to the board’s roles focuses on determining what board should be the best. It plays little attention to analyzing which organizational factors affect the importance and presence of monitoring or resource dependence roles. In this regard, this work adds significant insights to agency theory and resource dependence theory as, with a contingency framework, the research aims to find what functions the board needs to develop in order to get better firm performance.
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Paolo Agnese, Francesca Romana Arduino and Domenico Di Prisco
Artificial intelligence (AI) is a cutting-edge new reality already having an unprecedented impact on society, the economy and businesses. Its future developments and long-term…
Abstract
Purpose
Artificial intelligence (AI) is a cutting-edge new reality already having an unprecedented impact on society, the economy and businesses. Its future developments and long-term influence are still largely unknown. This article aims to examine AI’s potential benefits and challenges to corporate governance mechanisms, focusing on the board of directors.
Design/methodology/approach
The paper theoretically explores the influence of artificial intelligence on the board of directors’ capabilities, roles and functions.
Findings
Concerning rethinking board functioning in the era of artificial intelligence, the paper analyzes how artificial intelligence can impact the board of directors. It proposes some recommendations on how directors can more effectively integrate artificial intelligence into the boardroom, including establishing an internal artificial intelligence committee composed of experts with technical knowledge dedicated to managing artificial intelligence-related potential threats and opportunities.
Practical implications
Companies are invited to have some technical knowledge and expertise on artificial intelligence on the boards, fostering directors to upskill themselves in the new artificial intelligence technologies and establishing an ad-hoc internal committee. Policymakers are expected to keep pace with the growing proliferation of artificial intelligence solutions, defining a sharp regulatory framework.
Originality/value
The study advances knowledge in the corporate governance literature by shedding light on the effects of artificial intelligence on boards of directors and suggesting a set of best practices for its effective implementation.
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Lee McGowan, Yoko Kanemasu, Chelsey Taylor and Kasey Symons
In 2023, two international football (soccer) tournaments amplified attention on the women's game in Oceania. Football organisations are efficient at measuring participation of…
Abstract
In 2023, two international football (soccer) tournaments amplified attention on the women's game in Oceania. Football organisations are efficient at measuring participation of these events, of their training programmes, and related activities. However, their evaluation of the impacts within or on local football communities remains relatively rare, particularly for those marginalised through gender. Women and girls commonly engage in football for more complex reasons than those underpinning the participation of men and boys. Football organisations in the Pacific Islands tend to treat women's football communities differently to those around men and boys. Yet often the same conventional processes of appraisal are applied. This chapter offers critical reflection on evaluation processes of a new initiative, This is How We Football, aimed at participation of young women and girls in safe environments. The initiative is deployed by regional governing body, Oceania Football Confederation (OFC). In its efforts to address a wider range of gender norms and related issues identified within local communities, the programme includes the use of Indigenous/local epistemologies and oratory practices alongside conventional measures. This chapter considers the incorporation of place-based approaches to evaluation and the challenges and opportunities the process presents for OFC. In doing so, it contributes to wider understanding of engagement with local football communities in parts of Oceania.