Board restructuring and successful demutualization: the stock exchanges

Purpose – The purpose of this paper is to study corporate governance restructuring strategies of companies to adapt to new market conditions following conversion into a for-profit structure. It focuses on the changes in the composition of the board of directors. Design/methodology/approach – The pap...

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Detalles Bibliográficos
Autores: Padilla Angulo, Laura, Ben Slimane, Faten
Tipo de recurso: artículo
Fecha de publicación:2018
País:España
Institución:Universidad Loyola Andalucía
Repositorio:Brújula
OAI Identifier:oai:repositorio.uloyola.es:20.500.12412/4967
Acceso en línea:https://hdl.handle.net/20.500.12412/4967
https://doi.org/10.1108/JOCM-06-2017-0212
Access Level:acceso abierto
Palabra clave:Board of directors
Reputation
Strategy
Corporate governance
Demutualization
Stock exchanges
For-profit firm
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spelling Board restructuring and successful demutualization: the stock exchangesPadilla Angulo, LauraBen Slimane, FatenBoard of directorsReputationStrategyCorporate governanceDemutualizationStock exchangesFor-profit firmPurpose – The purpose of this paper is to study corporate governance restructuring strategies of companies to adapt to new market conditions following conversion into a for-profit structure. It focuses on the changes in the composition of the board of directors. Design/methodology/approach – The paper conducts a field experiment using stock exchanges, which have become more international over time, and many of which have been forced to demutualize and convert to for-profit structures to compete more efficiently. The paper does a fine-grained analysis of restructuring in the composition of the board using the ANOVA technique. The paper also examines the impact of this board composition restructuring on the reputation of the exchanges using a regression technique. Findings – The authors find that the stock exchanges restructured board composition and refocused them to create better value. Results suggest that the conversion of a company to a for-profit structure brings efficiencies when accompanied by changes in the governing bodies. The authors also find that converting to for-profit firms had a positive impact on the reputation of the exchanges. The positive impact was even greater when accompanied by changes in board composition. Research limitations/implications – A stronger focus on the corporate governance dimension to understand the successful demutualization of stock exchanges is needed. Originality/value – The authors analyze the corporate governance dimension during demutualization processes of an under examined sector. The financial performance of the stock exchanges the authors study significantly improved after their conversion to for-profit organizations and provide an example of successful corporate governance restructuring.This version is the accepted manuscript. The final version is available at: https://doi.org/10.1108/JOCM-06-2017-02122018info:eu-repo/semantics/articlehttps://hdl.handle.net/20.500.12412/4967https://doi.org/10.1108/JOCM-06-2017-0212reponame:Brújulainstname:Universidad Loyola AndalucíaIngléshttp://creativecommons.org/licenses/by-nc-nd/4.0/info:eu-repo/semantics/openAccessoai:repositorio.uloyola.es:20.500.12412/49672026-06-24T12:48:37Z
dc.title.none.fl_str_mv Board restructuring and successful demutualization: the stock exchanges
title Board restructuring and successful demutualization: the stock exchanges
spellingShingle Board restructuring and successful demutualization: the stock exchanges
Padilla Angulo, Laura
Board of directors
Reputation
Strategy
Corporate governance
Demutualization
Stock exchanges
For-profit firm
title_short Board restructuring and successful demutualization: the stock exchanges
title_full Board restructuring and successful demutualization: the stock exchanges
title_fullStr Board restructuring and successful demutualization: the stock exchanges
title_full_unstemmed Board restructuring and successful demutualization: the stock exchanges
title_sort Board restructuring and successful demutualization: the stock exchanges
dc.creator.none.fl_str_mv Padilla Angulo, Laura
Ben Slimane, Faten
author Padilla Angulo, Laura
author_facet Padilla Angulo, Laura
Ben Slimane, Faten
author_role author
author2 Ben Slimane, Faten
author2_role author
dc.subject.none.fl_str_mv Board of directors
Reputation
Strategy
Corporate governance
Demutualization
Stock exchanges
For-profit firm
topic Board of directors
Reputation
Strategy
Corporate governance
Demutualization
Stock exchanges
For-profit firm
description Purpose – The purpose of this paper is to study corporate governance restructuring strategies of companies to adapt to new market conditions following conversion into a for-profit structure. It focuses on the changes in the composition of the board of directors. Design/methodology/approach – The paper conducts a field experiment using stock exchanges, which have become more international over time, and many of which have been forced to demutualize and convert to for-profit structures to compete more efficiently. The paper does a fine-grained analysis of restructuring in the composition of the board using the ANOVA technique. The paper also examines the impact of this board composition restructuring on the reputation of the exchanges using a regression technique. Findings – The authors find that the stock exchanges restructured board composition and refocused them to create better value. Results suggest that the conversion of a company to a for-profit structure brings efficiencies when accompanied by changes in the governing bodies. The authors also find that converting to for-profit firms had a positive impact on the reputation of the exchanges. The positive impact was even greater when accompanied by changes in board composition. Research limitations/implications – A stronger focus on the corporate governance dimension to understand the successful demutualization of stock exchanges is needed. Originality/value – The authors analyze the corporate governance dimension during demutualization processes of an under examined sector. The financial performance of the stock exchanges the authors study significantly improved after their conversion to for-profit organizations and provide an example of successful corporate governance restructuring.
publishDate 2018
dc.date.none.fl_str_mv 2018
dc.type.none.fl_str_mv info:eu-repo/semantics/article
format article
dc.identifier.none.fl_str_mv https://hdl.handle.net/20.500.12412/4967
https://doi.org/10.1108/JOCM-06-2017-0212
url https://hdl.handle.net/20.500.12412/4967
https://doi.org/10.1108/JOCM-06-2017-0212
dc.language.none.fl_str_mv Inglés
language_invalid_str_mv Inglés
dc.rights.none.fl_str_mv http://creativecommons.org/licenses/by-nc-nd/4.0/
info:eu-repo/semantics/openAccess
rights_invalid_str_mv http://creativecommons.org/licenses/by-nc-nd/4.0/
eu_rights_str_mv openAccess
dc.source.none.fl_str_mv reponame:Brújula
instname:Universidad Loyola Andalucía
instname_str Universidad Loyola Andalucía
reponame_str Brújula
collection Brújula
repository.name.fl_str_mv
repository.mail.fl_str_mv
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