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Title: Managerialism within Maltese PLCs and its implications : a study
Authors: Pickard, Isabel
Keywords: Corporate governance -- Malta
Management -- Malta
Incentives in industry -- Malta
Issue Date: 2015
Abstract: Purpose: This study seeks to ascertain and analyse the nature and extent of managerialism within Maltese PLCs and to assess the corporate governance implications with respect to the monitoring of such behaviour. Furthermore, this study evaluates the effectiveness of incentive schemes in operation and how these may be improved in order to minimise managerialism and its implications. Design: The objectives of this study were achieved by means of one questionnaire sent to the directors of Maltese PLCs and consultants within the Big Four audit firms and another questionnaire sent to the management of Maltese PLCs. In addition, such questionnaires were backed up by eight semi-structured interviews held with mainly directors of Maltese PLCs. Findings: The study established that certain types of self-serving managerial actions are more prone to occur than others. The extent to which managerialism exists in firms varies depending on the monitoring and control that is being exercised over management. The study ascertained that the board of directors performing adequate monitoring over management is one of the most important control mechanisms in corporate governance. The study showed that the overall monitoring and oversight over management is being carried out effectively by local firms. The study also established that the incentive schemes offered to management tend to be lacking locally especially because of the lack of performance-based pay and the fact that share options merely exist in Malta. Conclusion: The study concludes that some form of managerialism is prevalent amongst Maltese firms. A healthy mix of monitoring and incentives is probably the best approach to counteract the negative implications of managerialism. Value: Locally, this is the first study to assess the extent of managerialism within Maltese PLCs. This study is expected to provide a more comprehensive picture regarding the significance of managerialism within firms and understand what monitoring and control is required to counteract its negative implications.
Description: M.ACCTY.
Appears in Collections:Dissertations - FacEma - 2015
Dissertations - FacEMAAcc - 2015

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