Corporate governance and risk-taking of Chinese firms: The role of board size

2015 ◽  
Vol 37 ◽  
pp. 96-113 ◽  
Author(s):  
Ying Sophie Huang ◽  
Chia-Jane Wang
Keyword(s):  
Corporate Governance ◽  
Risk Taking ◽  
Board Size ◽  
Chinese Firms

scholarly journals Corporate Governance and Firm Performance: The Role of the Board and Audit Committee

2018 ◽  
Vol 10 (1) ◽  
pp. 210
Author(s):  
Netai Kumar Saha ◽  
Rehnuma Hoque Moutushi ◽  
Mohammad Salauddin
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Group Dynamics ◽  
Internal Control ◽  
Audit Committee ◽  
Performance Indicator ◽  
Positive Impact ◽  
Board Independence ◽  
Board Size

Corporate Governance (CG) has become a paramount issue due to its greater significance of practicing accuracy, maintaining accountability, establishing effective internal control and regulating organizations for achieving organizational goals. The study is conducted to explore the relationship between corporate governance and firm performance with considering the role of board and audit committee. The multiple liner regression analysis is used as the underlying statistical test on the dependent variables, ROA, ROE and TQ to test the association between the independent variables (board size, board independence, size of audit committee and audit committee composition) with firm performance. Homogeneous purposive sampling has been used. The sample size of the study is 81 listed companies in DSE. The results of the study signify that board independence ratio and audit committee is statistically significant and has positive impact on ROA and TQ. But it is not statistically significant in the case of firm performance indicator ROE in this study. In addition to, Board size is not statistically significant and has negative correlation with firm performance due to group dynamics, communication gaps and indecisiveness of larger groups.

scholarly journals Impact of Product Mix and Corporate Governance Practices on Earnings Volatility-Evidence from Banking Sector of Pakistan

2016 ◽  
Vol 3 (2) ◽  
pp. 1
Author(s):  
Natasha Yaqub ◽  
Huma Ayub
Keyword(s):  
Corporate Governance ◽  
Banking Sector ◽  
Contributing Factors ◽  
Board Size ◽  
Product Mix ◽  
Earnings Volatility ◽  
Governance Practices ◽  
Revenue Volatility ◽  
The Relationship

The study examines the relationship between product mix and corporate governance on earnings volatility with the help of degree of total leverage (DTL) model. The present study attempts to fill the gap by investigating the relationship between product mix and corporate governance on earnings volatility for developing financial market during the period of 2005-2015. Earnings volatility is analysed by two proxies’ .i.e. revenue volatility and degree of total leverage. This study has used mainly two types of product mix that consists of lending and fee-based activities while board size, board independence and CEO power is used to measure corporate governance. The results of the study signify the adverse impact of fee-based activities on earnings volatility in the banking sector of Pakistan. Corporate governance confirms the board size and power of CEO in the board as contributing factors to control earnings volatility. The findings are useful to the bankers and regulators to comprehend the role of diversification and corporate governance in creating value and reducing risk for the stakeholders.

scholarly journals Impact of corporate governance on financial disclosures: Evidence from India

2014 ◽  
Vol 12 (1) ◽  
pp. 874-889 ◽  
Author(s):  
Mehul Raithatha ◽  
Varadraj Bapat
Keyword(s):  
Corporate Governance ◽  
Ownership Structure ◽  
Board Independence ◽  
Board Structure ◽  
Board Size ◽  
Cross Sectional ◽  
Listed Firms ◽  
Disclosure Requirements ◽  
Financial Disclosures

The paper aims at identifying impact of corporate governance variables i.e. board structure (board size, board independence, board activity and board busyness) and ownership structure (foreign promoters holding, institutional shareholding and CEO duality) on financial disclosures made by the Indian firms. Using cross sectional data of 325 listed firms for the financial year 2009-10, we compute financial disclosure score (using 171 checklist points) based on disclosure requirements of accounting standards. We find average disclosure score of 73%, maximum and minimum being 100% and 46% respectively. Our finding support agency theory in terms of monitoring role of board since board size is found to be significant however we do not find any influence of board independence on the disclosures. The study also supports resource dependency theory in terms of outside directorship which might provide exposure to different corporate environment, brings diverse perspectives and knowledge to the directors and this in turn leads to improved disclosures. We also support the notion that having foreign promoter shareholding improves disclosures

scholarly journals Do Cross-Listed Firms Have a Better Governance Structure and Lower Agency Costs? Evidence from Chinese Firms

2021 ◽  
Vol 13 (4) ◽  
pp. 1734
Author(s):  
Dong-Soon Kim ◽  
Eunjung Yeo ◽  
Li Zhang
Keyword(s):  
Corporate Governance ◽  
Agency Costs ◽  
Fixed Effects ◽  
Stock Exchange ◽  
Governance Structure ◽  
Least Square ◽  
Board Size ◽  
Chinese Firms ◽  
Listed Firms ◽  
Cross Listing

This study examines whether an influence from a difference in corporate governance structure exists on firms’ agency costs between Chinese companies cross-listed on the Hong Kong Stock Exchange (HKSE) and those that are domestically listed ones. We determine that, overall, companies with an HKSE cross-listing had better corporate governance than those without. The corporate governance advantage of the HKSE cross-listed firms holds if we control for firm fixed effects and resolve the potential endogeneity problem between corporate governance and agency costs by using two-stage least square (2SLS) regression analysis with instrumental variables. Specifically, the HKSE cross-listed firms had better corporate governance in terms of board size and institutional ownership. By contrast, domestically listed firms experienced the adverse effects of institutional owner’s roles and higher board pay. The advantages of HKSE cross-listed firms may stem from the benefits of having a larger board size and the effective monitoring of the management by the institutional stockholders. Implications are drawn for the debate on cross-listing and the future challenges of Chinese firms, and a more robust monitoring is necessary for sustainable finance of their stock markets.

scholarly journals How Does Corporate Governance Affect Bank Performance? The Mediating Role of Risk Governance

2018 ◽  
Vol 13 (10) ◽  
pp. 212
Author(s):  
Paola Leone ◽  
Carmen Gallucci ◽  
Rosalia Santulli
Keyword(s):  
Corporate Governance ◽  
Boards Of Directors ◽  
Governance Structure ◽  
Independent Directors ◽  
Risk Governance ◽  
Bank Performance ◽  
Board Size ◽  
Mediating Role ◽  
Risk Committee

This paper aims to investigate how bank governance (board size, board composition, ownership structure) affects performance (ROA), by considering the mediating role of risk governance (presence of a risk committee, the number of meetings of the risk committee in one year, the risk committee size, the percentage of independent directors in the risk committee, and the presence of a chief risk officer). A sample of 31 Italian listed banks is examined over a ten-year period (2008-2017), in order to delineate the changes in corporate governance structure and to catch the effects of the current national and European regulations followed to the financial crisis. Hypotheses are tested by applying a mediation analysis according to the causal steps procedure. The main findings suggest that risk governance fully mediates the corporate governance-bank performance relationship. Specifically, we find that the board size is positively related to the presence of a risk committee and to the number of meetings. The percentage of independent directors on board is positively related to the percentage of independent directors in the risky committee and, in turn, has a positive effect on performance. Finally, the presence of institutional owners is positively related to the presence of a chief risk officer and, thus, to bank performance. Summing up, banks with wider and more heterogeneous boards of directors have better risk management-related corporate governance mechanisms and reach higher performance levels.

scholarly journals The Role of Company Size on CSR Commitment, the Existence of Female's Board, Managerial Ownership, Board Size to Disclosure of Corporate Social Responsibility in Islamic Banking

2019 ◽  
Vol 1 (1) ◽  
pp. 1
Author(s):  
Siti Nur Halimah ◽  
Rahmawati Rahmawati
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Islamic Banking ◽  
Managerial Ownership ◽  
Board Size ◽  
Moderating Variables ◽  
Csr Disclosure ◽  
Corporate Social

Information on disclosure of corporate social responsibility is information on a company's social responsibility to parties outside the company. This disclosure is disclosed in the company's annual report and corporate governance report. The purpose of this study was to analyze the effect of corporate governance and the size of the company on the disclosure of Islamic banking in Indonesia and to analyze the effect of moderating variables on disclosure of corporate social responsibility. The number of datatook in this study was 48 data that had been processed. The data used in this study were the annual Islamic banking reports, financial statements, and corporate governance reports respectively. This test used regression tests and moderating variables. The results obtained that CSR commitment has positive correlation to CSR disclosure and the existence of female's board, managerial ownership has negative correlation to CSR disclosure, meanwhile, board size does not affect the CSR disclosure. After applied the moderation variable, it increased the disclosure of corporate social responsibility.

scholarly journals The Role of Company Size on CSR Commitment, the Existence of Female's Board, Managerial Ownership, Board Size to Disclosure of Corporate Social Responsibility in Islamic Banking

2019 ◽  
Vol 1 (1) ◽  
pp. 1
Author(s):  
Siti Nur Halimah ◽  
Rahmawati Rahmawati
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Islamic Banking ◽  
Managerial Ownership ◽  
Board Size ◽  
Moderating Variables ◽  
Csr Disclosure ◽  
Corporate Social

Information on disclosure of corporate social responsibility is information on a company's social responsibility to parties outside the company. This disclosure is disclosed in the company's annual report and corporate governance report. The purpose of this study was to analyze the effect of corporate governance and the size of the company on the disclosure of Islamic banking in Indonesia and to analyze the effect of moderating variables on disclosure of corporate social responsibility. The number of datatook in this study was 48 data that had been processed. The data used in this study were the annual Islamic banking reports, financial statements, and corporate governance reports respectively. This test used regression tests and moderating variables. The results obtained that CSR commitment has positive correlation to CSR disclosure and the existence of female's board, managerial ownership has negative correlation to CSR disclosure, meanwhile, board size does not affect the CSR disclosure. After applied the moderation variable, it increased the disclosure of corporate social responsibility.

scholarly journals Editorial: Advancing research on good corporate governance practices: The role of the board

2020 ◽  
Vol 16 (2) ◽  
pp. 4-6
Author(s):  
Giorgia Profumo
Keyword(s):  
Corporate Governance ◽  
Risk Taking ◽  
Board Structure ◽  
Corporate Board ◽  
Good Corporate Governance ◽  
Governance Practices ◽  
Board Director ◽  
Innovation Governance ◽  
Information Board

The latest issue (volume 16, issue 2) of the journal Corporate Board: Role, Duties and Composition is exploring the topics of board director benchmarking information, board gender and risk-taking, board structure and firm performance, corporate veil and innovation governance. Overall, the articles in the present issue are dealing with timely topics and their results call for further research as, in some cases, they are challenging traditional corporate governance theories.

Sign in / Sign up

Export Citation Format

Share Document