Sustainable Corporate Governance

British Journal of Management Special Issue 2018 Call for Papers

Sustainable Corporate Governance Submission deadline: 1st April 2017 The financial crisis of 2008 has typically been blamed on weak corporate governance mechanisms and excessive risk-taking by financial institutions (Walker, 2009; Turner, 2009). In the aftermath of the crisis, there have been a number of piecemeal regulatory responses around the world, such as caps on bonuses, that have attempted to patch up the perceived inadequacies of current governance structures. These responses have often focused on the banking sector (e.g. FCA Remuneration Code), with spill-over effects onto other organisations through, for example the UK Corporate Governance Code (Financial Reporting Council, 2016). Say-on-pay legislation allowing a firm's shareholders the right to vote on the remuneration of executives has been enacted in some countries (e.g. Dodd-Frank Act 2010 in the USA). There is increased scepticism of the role of bankers, traders and other high-paid individuals in the financial services industry (Calhoun, 2013; Marti and Scherer, 2016) and executive pay and behaviour more generally (Bebchuk and Fried, 2006; Kaplan and Rauh, 2010). The frustration with the slow regulatory response to the 2008 crisis can in part explain the “Shareholder Spring” investor activism and the growth of the “Occupy Wall Street” protest movements around the globe in 2012. Initial work examining the effects of these governance reforms have found that firm value increased in response to say-on-pay adoption (Ferri and Maber, 2013; Cuñat, Giné, and Guadalupe, 2016). Kleymenova, and Tuna (2016) report that, although the adoption of the UK Remuneration Code had a positive effect on firm value, the EU bonus cap had a negative effect. Murphy (2014) warns about perverse incentives of bonus caps in terms of increased incentives for excessive risk taking, and a significant increase in fixed remuneration. Interests of executives and shareholders may be better aligned through insider ownership, but Fahlenbrach and Stulz (2010) find no evidence that bank resilience to the crisis depended on this relationship. More generally, Erkens, Hung and Matos (2012) show that financial institutions with greater board independence and institutional ownership performed worse during the financial crisis, thereby questioning the effectiveness of two mechanisms typically associated with good corporate governance. Iliev, Lins, Miller, and Roth (2015) suggest that shareholder voting is an effective mechanism for exercising governance around the world. On a different note, Li, Leung, Young, Xin, Cai and Huang (2012) argue that the reaction to the financial crisis and how well it was managed at a national level depend on a country’s culture and philosophical approaches to crisis management. Hence, questions remain as to how effective various corporate governance

mechanisms are in terms of preventing future crises and whether current regulatory approaches create more harm than good. The British Journal of Management will publish a special issue on “Sustainable Corporate Governance” in 2018 with a short collection of research papers that assesses the state of corporate governance and governance reforms in the aftermath of the financial crisis. Papers in the special issue will focus on how firms have responded to the perceived weakness in their governance structures, how the regulatory regimes have changed, and what has been the effect of these changes on firm structures and performance. The Call for Papers welcomes theoretical, conceptual, review, comparative and empirically-based submissions around the theme of “Sustainable Corporate Governance”, with an emphasis on changes to practices and policies since the financial crisis of 2008. Empirical papers should be theoretically grounded and be based on data from one or more countries; papers that address comparisons across countries are particularly welcomed. We encourage contributions that address the potential issues outlined below but this list is not exhaustive and we welcome other approaches. Topics include: •

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Levels of executive pay, and pay-performance sensitivities in companies across countries since financial crisis, and the effects on the public and third sectors; Board legitimacy/accountability: diversity, representativeness, composition and attributes, independence; balance of knowledge/experience, leadership, and regulatory function; Board incentives for executives and non-executives, non-financial criteria, and penalties/disincentives for underperformance; Role of social networks and big data on governance, compensation, auditing, risk-taking, diversity, and regulatory compliance; Corporate governance regulation; transparency, disclosures and the role of institutions; Evolution of corporate governance mechanisms (effectiveness and efficiency), comparative corporate governance, interaction of governance and culture; Governance and corporate social responsibility, insider trading, risk-taking, ethics & responsibility; Varieties of capitalism, stakeholders other than shareholders, shareholder activism & short-termism, social justice, and tax avoidance; Different types of ownership structures (including families, private equity, SWFs, hedge funds, SRI funds), mergers and corporate restructuring.

The British Journal of Management is published by the British Academy of Management and provides an outlet for research and scholarship on managementorientated themes and topics. It publishes articles of a multi-disciplinary and

interdisciplinary nature as well as empirical research from within traditional disciplines and managerial functions. With contributions from around the globe, the Journal includes articles across the full range of business and management disciplines. High quality papers that do not make the final set of papers for the special issue may be considered for publication in a regular issue of the Journal. Paper Submission Authors should ensure they adhere to the journal guidelines which are available at: http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)14678551/homepage/ForAuthors.html Submissions should be uploaded to the BJM ScholarOneManuscripts site at http://mc.manuscriptcentral.com/bjm by 1st April 2017 (midnight UK time). Authors should select ‘special issue paper’ as the paper type, ensure they answer ‘yes’ to the question ‘Is this submission for a special issue’ and enter the title of the special issue in the box provided. Guest Editors Marc Goergen is Professor of Finance and Head of Accounting & Finance at Cardiff Business School at Cardiff University. His research interests are boards of directors; corporate control and ownership; initial public offerings; and stakeholder interests. He has written a textbook on corporate governance as well as three research monographs. His research papers have been published by a number of leading journals in accounting, economics, finance and law. He is a Research Associate of the European Corporate Governance Institute and an Associate Editor of the British Journal of Management, the Journal of Banking & Finance, and the Journal of Corporate Finance. Ian Tonks is Professor of Finance in the School of Management at the University of Bath. His research focuses on pension economics; fund manager performance; executive compensation, directors’ trading, and market microstructure. He has written a book on annuity markets and has published in leading economics and finance journals He has acted as a consultant to a number of commercial and regulatory organisations including the London Stock Exchange, the Competition Commission, and the Financial Services Authority, and has advised the Department of Work and Pensions, the Bank of England, and the House of Commons Select Committee (Work & Pensions) on issues in pensions. He is a member of the editorial board of the British Journal of Management; Vice-Chairperson of the Conference of Professors of Accounting and Finance; member of ESRC’s Grant Assessment Panel C; and served on sub-panel 19 Business & Management in the UK’s REF2014.

Scientific Committee Christian Andres, WHU André Betzer, Wuppertal Jill Brown, Bentley Mike Burkart, Stockholm Salim Chahine, American University of Beirut Stuart Cooper, Bristol Jay Dahya, Baruch Sudipto Dasgupta, Lancaster Elisabeth Dedman, Nottingham Gishan Dissanaike, Cambridge Daniel Ferreira, London School of Economics Chris Florackis, Liverpool Maria Goranova, Wisconsin Milwaukee Jens Hagendorff, Cardiff Brian Main, Edinburgh Christine Mallin, UEA Maria Marchica, Manchester Patrick McColgan, Strathclyde Geoff Meeks, Cambridge Daniel Metzger, Stockholm Roberto Mura, Manchester Noel O’Sullivan, Loughborough Annie Pye, Cardiff Ailsa Roell, Columbia Rajesh Tharyan, Exeter Steve Thompson, Nottingham Grzegorz Trojanowski, Exeter Mike Wright, Imperial Steven Young, Lancaster