Enhancing Board Effectiveness in Maltese Public Sector Entities: An Analytical Study
Journal Title: Journal of Accounting, Finance and Auditing Studies - Year 2024, Vol 10, Issue 2
Abstract
This study critically evaluates Board Effectiveness (BE) within Maltese Public Sector Entities (MPSEs), with a focus on five key aspects: board selection and appointment, board role, board composition, board remuneration, and board performance evaluation. Semi-structured interviews were conducted with twenty-two participants, including eighteen MPSE board members (BMs), a representative from the Malta Institute of Directors, two corporate lawyers, and one corporate advisor. The findings indicate significant deficiencies in BE, particularly due to a lack of transparency in the selection and appointment process. This process is often influenced by political loyalties, which exclude new talent and discourage competent individuals. The identification of BMs as Politically Exposed Persons (PEPs) further restricts the inclusion of diverse talent, particularly among entrepreneurs. Additionally, insufficient training for BMs and persistent political pressures have been found to hinder the fulfilment of fiduciary duties. Female representation on MPSE boards is notably low, and foreign appointments are rare, thereby weakening the overall board composition. Moreover, the remuneration for MPSE BMs is significantly lower than that in the private sector, adversely impacting the quality of BMs. Resistance to implementing performance evaluations, which could potentially reduce political protection, has also been observed to impede BE. This study underscores the necessity of strengthening corporate governance (CG) practices to enhance BE in MPSEs, which is crucial for fostering a thriving economy and creating a positive legacy for future generations.
Authors and Affiliations
Lauren Ellul, Marilyn Scicluna, Peter J. Baldacchino, Norbert Tabone, Simon Grima
Keywords
Related Articles
- EP ID EP738249
- DOI -
- Views 33
- Downloads 1
Impact of Corporate Governance and Financial Leverage on the Valuation of Vietnamese Listed Companies
This study investigates the effects of corporate governance (CG) and financial leverage (FL) on the valuation of firms listed in Vietnam. An analysis was conducted on a sample set containing 325 companies from the Ha Noi...
Determinants of Audit Committee Effectiveness in Ghana's Public Sector: A Focus on Committee Membership Characteristics
Ghana has enacted various policies and programmes, often with support from international agencies, to strengthen public sector financial management. These efforts aim to mitigate mismanagement and misappropriation of pub...
The Impact of Low Distribution Costs and Short Transit Times on Moderating the Correlation Between Digital Wallet Adoption and Impulse Purchases
In the contemporary digital era, individuals are afforded the convenience of instantaneous transactions through electronic wallets (e-wallets) when engaging in online shopping. This study aims to investigate the extent t...
The Influence of Current Ratio and Net Profit Margin on Profit Growth in the Automotive Industry: An Empirical Study from 2018 to 2022
To maintain competitiveness and ensure long-term sustainability in the automotive sector, understanding the determinants of profit growth is crucial. This study empirically examines the impact of the Current Ratio (CR) a...
Enhancing Board Effectiveness in Maltese Public Sector Entities: An Analytical Study
This study critically evaluates Board Effectiveness (BE) within Maltese Public Sector Entities (MPSEs), with a focus on five key aspects: board selection and appointment, board role, board composition, board remuneration...