Other things being equal, market analysts may, consciously or unconsciously, regard all-male boards as more competent than boards that are more gender-diverse. Which of the following statements is most likely to be TRUE? Working in a group, discuss how the New Therapy Company can meet the deadline and still ensure a high quality of care. c. safer strategies with more focused diversification for the firm. Which of the following statements is true? On January 1, California law said that all locally headquartered publicly traded companies must have at least one female director by 2020. One interviewee commented on how the board as a whole believed in the importance of diversity, but longer-term board members still struggled to understand its value. The board has been successful in reducing the percentage of CEO pay that is composed of stock options. c. the board is homogenous in composition. q:q:q: The air co nditioner is working. d. has weakened the effect of other governance mechanisms. Combined, the board members held seats on 47 corporate boards in the U.S. across a variety of industries. And to the extent investors care about shareholder value, they will penalize those companies they suspect are putting other goals first. Firms should be selecting the very best directors from the largest talent pool possible, and excluding women from that pool to avoid market penalties would be counterproductive. Our foremost conclusion is that there is no cumulative, zero-order evidence of long-term performance declines for firms that have more females in their upper echelons (as CEOs or TMT members). c. large block shareholders such as mutual funds and pension funds. d.more variable. Its worth noting that even if the meta-analyses revealed a stronger relationship between board gender diversity and firm performance, we couldnt conclude that board gender diversity causes firm performance. "Usually, large block shareholders are considered to be those shareholders with at least ____ percent of the firm's stock. c. 50 Post and Byron (2015) found that firms with more female directors tend to have slightly higher accounting returns, such as return on assets and return on equity, than firms with fewer female directors. This wouldnt be a problem if diversity initiatives were not seen by many investors as little more than costly experiments. b. a number of publicly-traded companies have decided to privatize. We merged our data on board composition and firm financials with social performance ratings from KLD STATS, an index for socially responsible investing. d.reduce the size of the stock option package provided to Mr. Leagreet. c. poorly-performing firms In order to limit Mr. Leagreet's power, the board of directors plans to d. The firm is traded on the New York Stock Exchange and must change its corporate governance to comply with the NYSE's new rules. An executive's decisions often affect firm performance only over the long run. Which of the following statements is about corporate governance in Germany is FALSE? a. generate free cash flows, reduce the risk of total firm failure b. A recent survey of more than 770 directors from public and private companies across industries around the world and from nonprofit organizations suggests that some are responding more energetically than others. What circumstances would most likely have initiated this proposal? b. Japanese firms will have little interest in Mr. Abercrombie's specialty because these skills are already practiced at a high level. d. reduction in R&D expenditure. Board gender diversity thus explains about 1% of the variance in companies engagement in CSR. The report looked at S&P 500 companies that released full-year 2020 results as of May 31, 2021, analyzing their performance between 2018 and 2020. We found no difference in the perceived competence of Marilyn and Jack, which was not surprising given their identical bios. a. usually on the verge of bankruptcy. Prior research on the effects of institutional investors often addresses shareholders and bondholder wealth and is commonly based on the framework of the conventional US/UK model of corporate control (Elyasiani et al. d.the head of contract services for the Marines, Chapter 11: Organizational Structure and Cont, John David Jackson, Patricia Meglich, Robert Mathis, Sean Valentine, Information Technology Project Management: Providing Measurable Organizational Value, Operations Management: Sustainability and Supply Chain Management, canvas quiz : Blood vessels and circulation. p:p:p: The temperature is 9090^{\circ}90. And the greater the cognitive diversity, the better the board is at solving complex problems and coming up with novel solutions. The decisions made by top-level managers are typically complex and nonroutine. c. agency Find the area bounded by the graphs of the indicated equations over the given intervals (when stated). Why or why not? c. A number of factors intervene between top-level management decisions and firm performance (e.g., unpredictable economic, social, or legal changes). b. returned to them as dividends. a. moving toward having directors from different backgrounds By and large, the obverse is true: breaking glass helps firms slightly. The argument is that women differ from men in their knowledge, experiences, and values and thus bring novel information and perspectives to the board. b. a. elect an insider as the lead director. c. pressure the board of directors to reprice their stock options. Rigorous, academic studies of CEO gender and company performance tell much the same story as rigorous, academic studies of board gender diversity and company performance do. a. greater emphasis on stock options b. larger proportion of insiders on the board of directors c. smaller pay gap between the CEO and other top executives d. benchmarking used for top executive pay C b. stock brokerage companies. This is because women bring new insights and perspectives and increase the cognitive diversity of the board. c. the firm's tax issues. d. re-invested in additional corporate assets. c. crossing the palm with silver. c. salary. Whats going on here? c. Borders' decision to increase the size of its board d.the board of directors. Women should be appointed to boards for reasons of gender equality, but not because gender diversity on boards leads to improvements in company performance. "International Food Services (IFS) has a contract with the Marines to supply meals for it troops in Iraq and other foreign assignments. I dont like that I said, If you think my only value is the fact that Im a female, I cant add value to your board., Other interviewees similarly addressed concerns for tokenism: I think that theres so much conversation right now about adding more females to boards and everyone feels like, Okay if we have ten board members, we should recruit three women. But I think we need to make sure they have the right skills. The fact that a hostile takeover has occurred is proof that the firm was un-der-performing. d. greater concentration on Sierra's core industry. All rights reserved. Agricultural Chemicals, Inc., was the target of a hostile takeover six months ago. As a means of increasing profits, IFS has used substandard ingredients in these meals and has consistently lied about this practice during quality investigations by the Marines. Researchers studied 1,644 public companies. b. Here, I dig into the findings of rigorous, peer-reviewed studies of the relationship between board gender diversity and company performance. Nor are they any less profitable, for that matter. There is overwhelming evidence to support the value of having more women in senior leadership positions. They are more a function of general market conditions. The correlation is .03. Which of the following statements is most likely to be TRUE? You know people listen. Again, we cant know for certain why board diversity doesnt predict company performance, but it seems likely that some of the following factors explain the very weak and mostly non-significant effects: While research indicates that in general male and female adults differ somewhat in their values, experiences, and knowledge (and the differences are not huge), its not clear that male and female board members differ all that much in their values, experiences, and knowledge. "There is some evidence that those firms targeted for takeover by active corporate raiders are: d. the number of outside directors and total percentage of shares they own. d.greater concentration on Sierra's core industry. b. To establish causal effects, you need to conduct a randomized control trial. See answer Advertisement sandlee09 Answer: c. Explanation: In research over the last five years, we found that only 24 percent of the boards of companies listed in the US and having over $1 billion in revenues were digitally savvy, and that these companies outperformed the others in our research on key metrics. a. a. organizational performance. b. defense tactics are opposed by institutional investors. The CEO's behav-ior may be indication of c. requiring outside directors to own significant equity stakes in the firm. The ownership of major blocks of stock by institutional investors have resulted in all of the fol-lowing EXCEPT b. small; large "Japanese keiretsu are: a. the director of food service for IFS. Shareholder value is b. risk undertaken by managers to earn stock options. "All of the following statements are TRUE about the use of defense tactics by the target firm during a hostile takeover EXCEPT: a. Satyam's stock price suffered a significant decline. d. The CEO was a recipient of the Golden Peacock Award for Corporate Governance. In Japan, the principal source of the active monitoring of large companies comes from While the relationship between board gender diversity and company performance is very weak, there appears to be a somewhat stronger relationship between board gender diversity and corporate social responsibility (CSR). b. banks and other lending institutions that have provided major financing to the firm. Consequently, the board has decided on an incentive plan that involves payout based on the firm's performance five years in the future. b. riskier strategies with more focused diversifica-tion for the firm. b. higher To achieve cognitive diversity, then, we should focus on dimensions of diversity other than gender. a. increases in executive compensation. c. requiring outside directors to own significant equity stakes in the firm. 2023 Knowledge at Wharton. b. Which of the following statements is FALSE? c. the employees directly involved in the wrongdo-ing. a. increases shareholder value significantly. Which of the following is TRUE of trends in Japan's corporate governance structure? One explained raising issues around diversity in the leadership pipeline and his desire to make this a higher board priority: One of our board members who is African-American came up to me afterwards and said, Thank you for bringing that up because I brought it up years ago, not so delicately, and nothing ever happened. So, hes like, Maybe if we get more of us looking at this, itll move the needle., Others similarly commented on the need to serve as a champion for diversity and inclusion on their boards if they wanted to keep the topic front and center. Five or so years after the financial crisis, the pressure on boards and directors to raise their game remains acute. d.likely to be terminated by the acquiring firm even in a friendly takeover. Write the statements in symbolic form . c. opportunity If Culver had just signed a blank piece of paper after being told that the bank would make a receipt out of it by printing the appropriate words around his signature, would he be able to avail himself of the defense of fraud? d. outside directors own significant equity in the organization. a. moving toward having directors from different backgrounds Generally, a board member who is a source of information about a firm's day-to-day activities is classified as a(an) ____ director. According to a 2016 Bloomberg analysis, five of the biggest U.S. activist funds had succeeded in getting over 100 board members appointed in the previous five years. b. appoint another individual as chairperson of the board of directors. 47; Gender-diverse boards also tend to adopt more progressive organizational management practices, such as work-life support programs, which increase employee satisfaction. a. management structures related to total quality management systems. d.government agencies. a. the CEO is also the chairperson of the board of directors. d. Large institutional investors such as pension funds, and insurance companies are relatively insignificant owners of corporate stock. The Vorstand is elected by the firm's employees. the board includes employees as voting members.c. Ambrose received: Ownership concentration is determined by both b. likely to gain financially if their employing firm is taken over by another. "One means that is considered to improve the effectiveness of outside directors is: b. increasing the concentration of ownership of large U.S. firms. Research suggests that boards of directors perform better if a. the CEO is also the chairperson of the board of directors. d. a system of cross-shareholding among firms. c. incentives for "The board of directors of CyberScope, Inc., is designing a stock option plan for its CEO that will motivate the CEO to increase the market value of the firm. a. Even if the women named to corporate boards are different from the men on these boards, they may not speak up in board conversations and they may lack the influence to change the boards decisions. b. selecting new CEOs. c. the laxity of institutional investors. d. the board of directors. As ownership of the corporation is diffused, shareholders' ability to monitor managerial deci-sions c. 50 Which of the following statements is most likely to be TRUE? The best evidence comes from a recent meta-analysis of 146 studies (Jeong and Harrison, 2017). Writing recently on Huffington Post, for example, one consultant observed the following: Companies with gender-diverse management teams have been proven to consistently perform better and be more profitable than those without them. "The use of excessively-generous stock options for executive compensation has been slowed in the past couple years for all of the following reasons EXCEPT: "Archibald Smith has moved from an upper-middle management job at Chromatic Array, Inc., to a similar position with Pixilair Corporation. Diversity, Inclusion, and Belonging Course. c. The CEO/Chairperson of the Board has been suspected of opportunistic behavior. Companies with a Digitally Savvy Board Perform Better b. b. financial responsibility to employees. If the market for corporate control were efficient as a governance device, then only ____ would be targets for takeovers. The gap between CEO pay and the pay of other top executives at Chromatic was significantly larger than at Pixilair. After all, both male and female board members are likely to be selected for their professional accomplishments, experience, and competence. According to the excerpt, how do production processes affect the comparative advantage of the United States? Women should be appointed to boards for reasons of gender equality., Women Directors and Other Dimensions of Company Performance. Access more than 40 courses trusted by Fortune 500 companies. Archibald Smith has moved from an upper-middle management job at Chromatic Array, Inc., to a similar position with Pixilair Corporation. Which of the following is FALSE about corporate governance in China? c. the firm's tax issues. The market for corporate control may not be as efficient as previously thought as recent findings suggest that those firms targeted for takeover by active corporate raiders are Consequently, the board has decided on an incentive plan that involves payout based on the firm's performance five years in the future. ____ is an important influence in Japanese corporate governance structures. "Executive compensation is a governance mechanism that seeks to align managers' and owners' interests through all of the following EXCEPT: We find that companies are not any less profitable after appointing female directors to the board than they were prior to the appointment. a. high executive turnover. On more hierarchical boards, the CEO, Chairman, or lead independent director tends to dominate board meetings. Mr. Abercrombie is considering expanding his consulting practice overseas. These dynamics appear to shape whether diversity on the board actually matters to the boards work. a. reasonably compensating a CEO. The repurchase at a premium of shares of stock that have been acquired by the aggressor firm in a hostile takeover in exchange for an agreement that the aggressor will no longer target the company for takeover is called: b. the board includes employees as voting members. d.the top management team's interests and the owners' interests are aligned. d. a system of cross-shareholding among firms. b. enforcement Hed speak like, without taking any breaths for two hours on end., But even in hierarchical cultures, the CEO, Chairman, or lead director can help to create a more open communication environment. Why Diversity and Inclusion Matter (Quick Take) | Catalyst d.requiring that outside directors be truly objective by having no ownership interest in the firm. Simon Leagreet, the Chairperson and CEO of L-EVA Industries, Inc., has long been the major power at L-EVA. b. a weak board of directors. When they argue, they do it in a pretty much respectful way. MGMT Chapter 10 Flashcards | Quizlet b. the board includes employees as voting members. Research suggests that firms with ____ perform better, especially when collaboration among top management team members is important: A primary objective of corporate governance is to: Which of the following is a FALSE statement about corporate governance? As we said, directors generally don't really want to monitor, and they are not sure if they can do so effectively. Complete the following: In small firms, managers often own a ____ percentage of the firm, which means there is ____ separation between ownership and managerial control. And even when individuals who are minorities, tokens, or outliers speak up, the majority group members may discount their views. a. shareholders in the large institutional firms listed on the New York Stock Exchange. b. a standstill agreement. c. the firm's top managers. b. banks and other lending institutions that have provided major financing to the firm. In a recent study, we examine board composition and financial data on 1,644 public companies in the U.S. between 1998 and 2011, controlling for numerous firm-specific characteristics like size and corporate governance structure. b. the manager frequently invests in the acquired firm which allows him or her exten-sive profits, the manager can frequently buy excess assets divested by the acquired firm Which of the following statements is most likely to be TRUE? d.Individualism. Research suggests that boards of directors perform - Course Hero b. strengthening the internal management and accounting control systems "In the U.S. the fundamental goal of business is to: "In the U.S., a firm's key stakeholder(s) is(are) the: "Which of the following is NOT an internal governance mechanism? Institutional owners are b. risk undertaken by managers to earn stock options. d.tying the compensation of CEOs to measur-able financial criteria. a. the CEO is also the chairperson of the board of directors. Stephanie Creary is an assistant professor of management and organizational behavior scholar at the Wharton School of the University of Pennsylvania. b. the manager frequently invests in the acquired firm which allows them extensive profits, the manager can frequently buy excess assets divested by the acquired firm c. CalPERS supports generous stock option plans for executives because it motivates under-performing executives. Research: When Gender Diversity Makes Firms More Productive d.made up of CPAs with auditing experience. Research suggests that boards of directors perform better if: a. outside directors own significant equity in the organization. The CEO and the top executives successfully fended off the takeover and are concentrating on strategies to improve the performance of the firm. In this opinion piece, Wharton management professor Katherine Klein summarizes academic research on the topic and discusses the possible reasons and implications for these surprising findings. a. the strategic decision making process. One board member discussed her experience on a board: I do feel Im listened to The CEO makes a big difference in terms of the openness., Similarly, another shared how a different CEO made it easier for board members to access the management team: It starts, again, with the CEO not playing the hierarchical role and saying, You cant talk to one of my VPs unless you come through meSo we had access to the next level of management.