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dc.contributor.authorPisani, Britney-
dc.contributor.authorBaldacchino, Peter J.-
dc.contributor.authorTabone, Norbert-
dc.contributor.authorEllul, Lauren-
dc.contributor.authorGrima, Simon-
dc.identifier.citationPisani, B., Baldacchino, P. J., Tabone, N., Ellul, L., & Grima, S. (2023). Board Diversity in Selected Large Maltese Family-Controlled Businesses and its Implications on Corporate Governance. International Journal of Finance, Insurance and Risk Management, 13(3), 14-49.en_GB
dc.description.abstractThe objectives of this study are twofold.: (i) to establish the extent of Board diversity in both its major surface-level (i.e. age, gender, nationality and tenure diversity) and deep-level aspects (i.e. industry-specific, financial, legal and IT expertise) in selected Maltese Large Family Businesses (LFBs), and to establish whether any inherent characteristics of such entities are perceived as influencing the extent of such diversity and (ii) to assess the influences of such diversity aspects on the major Corporate Governance (CG) factors. This also involves ascertaining the extent to which such influences, if existent, are perceived as advantageous or disadvantageous. Design/Methodology/Approach: Semi-structured interviews were carried out with twenty-six interviewees, consisting of eleven directors, three company secretaries, a CEO, four CFOs, an Institute of Directors representative, four advisory partners, an audit manager and an audit director. Findings: LFB Boards are mostly composed of family members, mostly long-tenured and having a lack of diversity of expertise. Moreover, LFB inherent characteristics, particularly strong emotional ties, may reduce the likelihood of a LFB Board being diverse. Furthermore, tenure and age diversity are the diversity aspects most influential on CG, particularly on attaining effective succession planning. In addition, although the eight major diversity aspects do not influence the CG factors pari passu, they generally influence various CG factors advantageously. Practical Implications: LFBs should consider Board participation rather than Board membership for most family members in order to allow enough space for the involvement of externals as Board members. Moreover, LFBs should set up a plan to manage the negative influences of their inherent characteristics on Board diversity. LFBs should also opt for various aspects of Board diversity, yet prioritise tenure and age diversity. In this regard, the introduction of fiscal incentives by public authorities may be an appropriate step in this direction. Originality/Value: This study attempts to raise more awareness on the relevance and implications of Board diversity in LFBs. The proposed recommendations may therefore guide such businesses to improve their CG, and possibly also encourage the competent authorities to provide more guidance in this regard.en_GB
dc.publisherISMASYSTEMS Scientific Researchen_GB
dc.subjectCorporate governance -- Maltaen_GB
dc.subjectFamily-owned business enterprises -- Maltaen_GB
dc.subjectFamily corporations -- Maltaen_GB
dc.subjectDirectors of corporations -- Maltaen_GB
dc.subjectBoards of directors -- Maltaen_GB
dc.titleBoard diversity in selected large Maltese family-controlled businesses and its implications on corporate governanceen_GB
dc.rights.holderThe copyright of this work belongs to the author(s)/publisher. The rights of this work are as defined by the appropriate Copyright Legislation or as modified by any successive legislation. Users may access this work and can make use of the information contained in accordance with the Copyright Legislation provided that the author must be properly acknowledged. Further distribution or reproduction in any format is prohibited without the prior permission of the copyright holder.en_GB
dc.publication.titleInternational Journal of Finance, Insurance and Risk Managementen_GB
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