The Assessment of Corporate Governance System Quality in the Romanian Sectors. Analysis of the Companies Listed on the Bucharest Stock Exchange

2016 ◽

Vol 6 (2) ◽

pp. 317

Author(s):

Reza Dowlatabadi ◽

Mahdi Filsaraei

Keyword(s):

Corporate Governance ◽

Earnings Management ◽

Stock Price ◽

Negative Impact ◽

Value Relevance ◽

Stock Exchange ◽

Information Source ◽

Governance System ◽

Financial Report ◽

Corporate Governance System

Today, to make investment decisions, investors analyze the stock in the stock market and an information source used by them isthe financial report of the related firms. In some cases, the report may be prepared in accordance with management policies, which is known as an earnings management.Earnings management will affect intelligence value and consequently have negative impact. Due to these issues, in this study, the relationship between VRof earnings, earnings management and corporate governance is discussed. Using a sample of listed companies in Tehran Stock Exchange and the regression model, the results showed that the ownership of institutional investors has reduced the earnings management, but compared to major shareholders and company's audit by the National Audit Office, it has increased earnings management.The results also show that there is no significant relationship between management and the stock price as an indicator of measuring the VR of earnings.

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Does Earnings Management Amplify The Association Between Corporate Governance And Firm Performance?: Evidence From Korea

International Business & Economics Research Journal (IBER) ◽

10.19030/iber.v10i2.1793 ◽

2011 ◽

Vol 10 (2) ◽

Cited By ~ 4

Author(s):

Sun-A Kang ◽

Yong-Shik Kim

Keyword(s):

Corporate Governance ◽

Firm Performance ◽

Earnings Management ◽

Stock Exchange ◽

Causal Link ◽

Governance System ◽

Real Activity ◽

Study Results ◽

Corporate Governance System ◽

And Performance

This paper aims to examine whether earnings management strengthens the causal links between corporate governance and firm performance. It examines the association between corporate governance and real activity-based earnings management and extends it to firm performance. This study involves 1,104 listings on the Korean Stock Exchange and finds that real activity-based earnings management decreases if firms have a well-established governance system, and such earnings management could strengthen the causal link between corporate governance and firm performance as measured by Tobin’s Q. Our study results are the first empirical evidences that real activity-based earnings management is effectively controlled by a corporate governance system and that it has links between corporate governance and performance. This provides the importance of corporate governance which could effectively constrain real activity-based earnings management, such that eventually influences the firm’s performance. In particular, it provides useful insights into corporate structures in which ownership is highly concentrated. Our findings are of great importance for Korea, in which the predominant business structure for large enterprises is that of the chaebol (equivalent to the Japanese keiretsu), which consists of conglomerates of many smaller companies and in which the structure of corporate governance is that of owner control.

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The compliance of the Romanian listed companies with the principles and provisions of the Corporate Governance Code

Journal of corporate governance, insurance and risk management ◽

10.51410/jcgirm.7.2.4 ◽

2020 ◽

Vol 7 (2) ◽

pp. 55-58

Author(s):

Oana Bogdan ◽

Alin Dumitrescu

Keyword(s):

Corporate Governance ◽

Best Practices ◽

Capital Market ◽

Stock Exchange ◽

Strong Relationship ◽

Listed Companies ◽

Governance System ◽

Corporate Governance Code ◽

Economic Entity ◽

Corporate Governance System

Starting from the research assumption that the Corporate Governance Code issued by Bucharest Stock Exchange (BSE) aims at building an internationally attractive capital market in Romania, based on best practices, transparency and trust that encourages companies to build a strong relationship with their shareholders and other stakeholders, communicate effectively and transparently and show openness towards all potential investors, in this paper we would like to present the degree of compliance of the companies listed on the Bucharest Stock Exchange with the principles and provisions of the Corporate Governance Code. The aim of this paper is achieved by presenting and commenting on the principles issued by the BSE regarding the corporate governance and by analysing the Corporate Governance Reports of the companies, presenting at the same time the compliance of the listed companies with these principles and provisions, by using the data issued in 2018 by the entities included in our study, namely the listed companies on the main market of the Bucharest Stock Exchange. Our analysis reflects that, although the provisions and principles of the Corporate Governance Code are not mandatory for the listed companies, they are largely implemented in the activity of companies because an efficient corporate governance system can represent a competitive advantage for any economic entity in the context of globalisation.

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Board composition, audit committee and timeliness of corporate financial reports in Malaysia

Corporate Ownership and Control ◽

10.22495/cocv4i2p3 ◽

2007 ◽

Vol 4 (2) ◽

pp. 33-45 ◽

Cited By ~ 9

Author(s):

Shamsul-Nahar Abdullah

Keyword(s):

Corporate Governance ◽

Audit Committee ◽

Stock Exchange ◽

Positive Association ◽

Chief Executive ◽

Governance System ◽

Financial Reports ◽

Important Indicator ◽

Corporate Transparency ◽

Corporate Governance System

This study attempts to investigate the roles of the composition of board of directors, audit committee and the separation of the roles of the board chairman and the chief executive officer on the timeliness of reporting. The issue of reporting timeliness is important in corporate governance because it is associated with corporate transparency. It is also an important indicator of the value of the information in the financial reports. Given the fact that the board is the highest internal corporate governance system, it is predicted that the characteristics of the board and its sub-committee, namely the audit committee, are associated with the timeliness of reporting. Using Bursa Malaysia (formerly known as the Kuala Lumpur Stock Exchange) Main Board companies data in respect of the financial years 1998 and 2000, the findings show that board independence and the separation of the roles of board chairman and CEO significantly are associated with timelier reporting. The results also indicate that the 1997 financial crisis had adversely affected the timeliness of reporting. These findings imply that during difficult periods, companies tend to take a longer time to prepare their audited financial reports. The positive association between timeliness of reporting and leverage found in this study suggests that the agency costs of debts could play an important role in explaining the timeliness of corporate financial reports. Finally, the negative relation between firm’s profitability and timeliness of reporting is supportive of information signaling theory.

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Sustainable corporate governance and new auditing issues: a preliminary empirical evidence on key audit matters

Corporate Governance ◽

10.1108/cg-09-2020-0427 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Pietro Fera ◽

Michele Pizzo ◽

Rosa Vinciguerra ◽

Giorgio Ricciardi

Keyword(s):

Corporate Governance ◽

Stock Exchange ◽

Corporate Sustainability ◽

Quantitative Methodology ◽

Audit Process ◽

Governance System ◽

Content Type ◽

Corporate Governance System ◽

The Impact

Purpose This paper aims to investigate the relationship between the quality of internal corporate governance mechanisms and the audit issues disclosed by external auditors in their report, assuming the beneficial effect related to the adoption of a sustainable corporate governance system. Design/methodology/approach This paper investigates the impact of the International Auditing and Assurance Standards Board’s ISA 701 in the European context as a new auditing principle supporting the key audit matters (KAMs) in reporting and disclosing auditing activities. The analysis is carried out through a quantitative methodology using a sample composed of non-financial companies listed on the Italian Stock Exchange. Findings Empirical findings highlight that firms having a high quality and sustainable corporate governance system tend to have fewer KAMs arising from the audit process and then disclosed in the audit report. To ensure the reliability of the empirical analysis, the authors controlled for a set of variables that could affect the audit function and for the mediating role of the overall business complexity (as proxied by the firm size). Originality/value This study is of interest to academics, practitioners and regulators, as it highlights the role of a higher quality internal corporate governance on the perceived corporate riskiness and complexity. It contributes to the recent debate on sustainable corporate governance, corporate sustainability and auditing streams.

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Investigating the Effects of Corporate Governance System Quality on Company Performance

International Academic Journal of Accounting and Financial Management ◽

10.9756/iajafm/v6i1/1910005 ◽

2019 ◽

Vol 06 (01) ◽

pp. 56-65 ◽

Cited By ~ 1

Author(s):

Nafiseh Gholamreza Tehrani

Keyword(s):

Corporate Governance ◽

Company Performance ◽

System Quality ◽

Governance System ◽

Corporate Governance System

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Corporate Governance and Firm Performance: Evidence from Karachi Stock Exchange

The Pakistan Development Review ◽

10.30541/v45i4iipp.947-964 ◽

2006 ◽

Vol 45 (4II) ◽

pp. 947-964 ◽

Cited By ~ 15

Author(s):

Attiya Y. Javed ◽

Robina Iqbal

Keyword(s):

Corporate Governance ◽

Stock Exchange ◽

Corporate Boards ◽

Economic Returns ◽

Governance System ◽

Developed Markets ◽

Wide Range ◽

Corporate Governance System ◽

The Subject ◽

Employment Systems

In the developed markets the subject of corporate governance is well explored as a significant focus of economics and finance research but there is also a growing interest across emerging markets in this area. In Pakistan, the publication of the SECP Corporate Governance Code 2002 for publicly listed companies has made it an important area of research of corporate sector. According to La Porta, et al. (2000) ‘Corporate governance is to a certain extent a set of mechanisms through which outside investors protect themselves against expropriation by the insiders’. They define the insider as both managers and controlling shareholders A corporate governance system is comprised of a wide range of practices and institutions, from accounting standards and laws concerning financial disclosure, to executive compensation, to size and composition of corporate boards. A corporate governance system defines who owns the firm, and dictates the rules by which economic returns are distributed among shareholders, employees, managers, and other stakeholders. As such, a county's corporate governance regime has deep implications for firm organisation, employment systems, trading relationships, and capital markets. Thus, changes in Pakistani system of corporate governance are likely to have important consequences for the structure and conduct of country business.

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