scholarly journals Corporate Practices and National Governance Systems: What do Country Rankings Tell Us?

2005 ◽  
Vol 6 (3) ◽  
pp. 583-604 ◽  
Author(s):  
Peter Cornelius
Keyword(s):  
Corporate Governance ◽  
Firm Level ◽  
Global Competitiveness ◽  
Mode Of Entry ◽  
Governance Systems ◽  
Accession Countries ◽  
Country Rankings ◽  
Investment Capital ◽  
World Economic

AbstractNations compete for investment capital, and the assurances investors seek as they decide to provide that capital are universal. Motivated by the growing appetite for a global benchmark of corporate behaviour, this paper examines the relationship between the measured quality of corporate governance at the firm level and national competitiveness. It begins by analyzing the perceived quality of institutions in the 23 largest capital markets. Hypothesizing that good corporate governance at the company level may compensate for perceived weaknesses in the institutional framework, the paper then focuses on the pilot governance index developed by the Financial Times and ISS and compares it with new survey evidence from the World Economic Forum's Global Competitiveness Report. Finally, the paper discusses corporate governance in the EU accession countries and the extent to which the quality of governance has affected the mode of entry for foreign investment.

scholarly journals Quality of governance and the construction of governance indices: evidence from Spain

2007 ◽  
Vol 5 (1) ◽  
pp. 355-371
Author(s):  
Eloisa Pérez de Toledo ◽  
Evandro Bocatto
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Investor Protection ◽  
Extensive Literature ◽  
Firm Level ◽  
Public Companies ◽  
Corporate Governance Mechanisms ◽  
And Performance ◽  
Future Growth

Corporate governance is a set of mechanisms relevant to economic efficiency since it can minimize agency problems. The question is to determine how governance and firm performance interact. Recent research shows that firm-level corporate governance mechanisms are more important in countries with low investor protection, suggesting that firms can partially compensate for ineffective legal environments. Within this context, the objective of this paper is to construct a robust proxy for quality of corporate governance for the Spanish public companies. Thus, after providing an extensive literature review on the field of corporate governance and its interaction with firm performance, we construct a governance index (GOV-I) for a sample of 97 Spanish non-financial public companies. Finally, we assess the determinants of governance in the case of Spain. The results show a significant relationship between governance and performance, future growth opportunities and size, demonstrating that Spanish firms adopt better standards of governance to compensate for the low level of investor protection holding in the country.

scholarly journals Simar and Wilson two-stage efficiency analysis for Stata

2019 ◽  
Vol 19 (4) ◽  
pp. 950-988 ◽  
Author(s):  
Oleg Badunenko ◽  
Harald Tauchmann
Keyword(s):  
Production Efficiency ◽  
Estimation Procedure ◽  
Data Envelopment ◽  
Two Stage ◽  
Global Competitiveness ◽  
Explanatory Variables ◽  
World Economic ◽  
Original Procedure ◽  
Stage Estimation

When one analyzes the determinants of production efficiency, regressing efficiency scores estimated by data envelopment analysis on explanatory variables has much intuitive appeal. Simar and Wilson (2007, Journal of Econometrics 136: 31–64) show that this conventional two-stage estimation procedure suffers from severe flaws that render its results, and particularly statistical inference based on them, questionable. They additionally propose a statistically grounded bootstrap-based two-stage estimator that eliminates the above-mentioned weaknesses of its conventional predecessors and comes in two variants. In this article, we introduce the new command simarwilson, which implements either variant of the suggested estimator in Stata. The command allows for various options and extends the original procedure in some respects. For instance, it allows for analyzing both outputand input-oriented efficiency. To demonstrate the capabilities of simarwilson, we use data from the Penn World Tables and the Global Competitiveness Report by the World Economic Forum to perform a cross-country empirical study about the importance of quality of governance in a country for its efficiency of output production.

scholarly journals Do corporate governance practices differ across different market capitalization of the firms: Some empirical findings from India?

2015 ◽  
Vol 12 (2) ◽  
pp. 435-442
Author(s):  
Uday Khanna ◽  
Pankaj Madan
Keyword(s):  
Corporate Governance ◽  
Ownership Structure ◽  
Evolutionary Stage ◽  
Market Capitalization ◽  
Board Characteristics ◽  
Governance Systems ◽  
Governance Practices ◽  
The Impact

Worldwide considerable amount of research on corporate governance focuses on ownership structure and board characteristics of companies and linking these to their performance but fewer studies have been found on the linkage between market capitalization of the firms and the quality of corporate governance practices. This study is an attempt to showcase the linkage between market capitalization and quality of corporate governance practices of the firm. The purpose of this paper is to study the impact of firms with different market capitalization on the quality of corporate governance in Indian companies. As India is one of such countries where corporate governance systems are in the evolutionary stage, the findings could also be useful for other newly liberalized and globalizing economies.

Corporate governance reforms and political partisanship: an empirical analysis in 16 OECD countries

2015 ◽  
Vol 17 (4) ◽  
pp. 661-696 ◽  
Author(s):  
Thibault Darcillon
Keyword(s):  
Corporate Governance ◽  
Oecd Countries ◽  
Minority Shareholder ◽  
Firm Level ◽  
Shareholder Protection ◽  
Political Partisanship ◽  
Governance Systems ◽  
Protection Legislation ◽  
Corporate Governance Reforms ◽  
Governance Reforms

This paper explores the determinants of pro-minority shareholder corporate governance reforms. Using a Cox conditional model in gap time, this paper provides new empirical evidence on the linkages between the adoption of pro-minority shareholder corporate governance reforms at the firm level and government ideological affiliation in 16 OECD countries over the period 1970–2009. I find strong evidence linking rightward shifts in government ideological orientation with the adoption of minority shareholder protection legislation. This result supports our argument that changes in the composition of the coalition of heterogeneous interests and/or a change in the expectations of the parties’ constituency will affect government strategy on the adoption of pro-minority shareholder corporate governance reforms. I also find that the macroeconomic context at the international level may influence the adoption of these reforms. Our findings suggest that international economic integration has resulted not in the convergence of corporate governance regimes to the Anglo-Saxon model, but rather the emergence of hybrid corporate governance systems.

scholarly journals The effect of corporate governance and investor protection environments on the value relevance of new accounting standards: the case of IFRS 9 and IAS 39

2020 ◽  
Author(s):  
Alessandro Mechelli ◽  
Riccardo Cimini
Keyword(s):  
Corporate Governance ◽  
Value Relevance ◽  
Investor Protection ◽  
Accounting Standards ◽  
Accounting Quality ◽  
High Quality ◽  
Firm Level ◽  
Ias 39 ◽  
Ifrs 9

AbstractThe first-time adoption of IAS/IFRS accompanied by the issuance of new international accounting standards has provided mixed results regarding their ability to improve accounting quality. A possible reason is that not only the quality of the standard-setting process, but also other factors might affect accounting quality and one of its dimensions, namely, value relevance. By analysing data from a sample of 316 financial entities listed in 43 countries from all over the world and adopting IFRS 9 in place of IAS 39 as of 1st January 2018, this paper tests whether the quality of firm-level corporate governance and country-level investor protection environments affects the value relevance of equity values calculated according to the requirements of IFRS 9 and IAS 39. The results suggest that, despite both accounting standards providing investors with value relevant information, in the presence of high-quality corporate governance or a high-quality investor protection environment, IFRS 9 is more value relevant than IAS 39, whereas the opposite is true in the presence of low-quality corporate governance or a low-quality investor protection environment. The research results provide the first empirical evidence of the value relevance of the new accounting standard on financial instruments and contribute to the debate on the existence of other factors that, together with the quality of the IASB standards, affect the quality of financial reporting.

scholarly journals Competitiveness of V4 Countries Using the Global Competitiveness Index

2020 ◽  
Vol 74 ◽  
pp. 06007
Author(s):  
Veronika Galgánková
Keyword(s):  
Slovak Republic ◽  
Financial Reports ◽  
Global Competitiveness ◽  
World Economic ◽  
Global Competitiveness Index ◽  
Competitiveness Index ◽  
Future Direction ◽  
The Individual

The article is focused on the evaluation and comparison of the international competitiveness of the Visegrad countries – four countries Slovak Republic, Czech Republic, Hungary and Poland. The article consists of four chapters. The first chapter is focused on a short introduction to the issue. The second chapter briefly describes the methodology used in writing the article. It analyzes in detail the individual parts and subindices of the Global Competitiveness Index. The third chapter evaluates the specific values of the index which the countries of Visegrad four achieved from 2010 to 2018. The fourth chapter focuses on assessing the strengths and weaknesses of the countries’ competitiveness. It also contains a proposal for the future direction of states. The concept of global competitiveness is increasingly being used to assess many different methods and indices in comparing countries. One of the best known indices is the Global Competitiveness Index, which is compiled annually by the World Economic Forum. It assesses how countries achieve and maintain economic growth and how business of every country is influenced by competitiveness. Higher quality of financial reports makes companies more competitiveness and motivate investors to put money into them.

scholarly journals Corporate governance and shareholder value in listed firms: An empirical analysis in five countries (France, Italy, Japan, UK, USA)

2013 ◽  
Vol 10 (3) ◽  
pp. 36-50 ◽  
Author(s):  
Barbara Monda ◽  
Marco Giorgino
Keyword(s):  
Corporate Governance ◽  
Firm Value ◽  
One Dimension ◽  
Four Dimensions ◽  
Listed Firms ◽  
Governance Systems ◽  
Governance Quality ◽  
Corporate Governance Quality ◽  
The Relationship

In this paper, we design a multi-dimensional index to measure the quality of Corporate Governance systems adopted by firms and use it to investigate the correlation between Corporate Governance quality and firm value. Unlike most studies that examine the relationship between only one dimension of Governance and firm value, we present a complex index (CGI) composed of 39 variables referable to four dimensions: Board, Remuneration, Shareholder Rights and Disclosure. By analysing a sample of 100 large companies listed on the main stock markets in five different countries over three years (2009-2011), we confirm the widespread hypothesis of the existence of a positive and statistically significant relationship between Corporate Governance, as measured by a subset of 12 variables, and firm value.

scholarly journals An analysis of the determinants of corporate governance disclosure policies in multinational enterprises: A multi- medium study

2015 ◽  
Vol 12 (4) ◽  
pp. 671-694
Author(s):  
Daniel Zeghal ◽  
Manel Moussa
Keyword(s):  
Corporate Governance ◽  
Multinational Enterprises ◽  
Medium Study ◽  
Disclosure Policy ◽  
Governance Systems ◽  
Operational Characteristics ◽  
Linear Regressions ◽  
Practical Implications ◽  
Governance Disclosure

This research aims to identify the factors underlying the corporate governance disclosure policies of the world’s largest multinational companies (MNCs) based on the following: (1) national factors related to the MNCs’ home countries (2) governance factors related to their governance systems and (3) operational factors arising from the operational characteristics of the MNCs. Methodology – Our sample includes 159 MNCs from 24 countries representing three geographic regions. The corporate governance disclosure policy is examined in terms of level and quality of disclosed information in two different mediums (traditional i.e .paper vs. websites). Results – Multiple linear regressions indicate that national factors, especially cultural ones, are important determinants of MNCs corporate governance disclosure policy in the traditional print mediums. National factors, however, seem to play no part in governance disclosures on the internet but can rather be explained by the international MNCs listing status. Practical implications – This study could guide the harmonization efforts of international standard setters in identifying factors leading to different governance disclosure behaviors and the disclosure medium most influenced by these factors.

scholarly journals The role of investor protection in corporate governance and accounting harmonization: Cross-country analysis in Asia

2015 ◽  
Vol 18 (2) ◽  
pp. 267
Author(s):  
Ratna Wardhani
Keyword(s):  
Corporate Governance ◽  
Financial Reporting ◽  
Investor Protection ◽  
Accounting Standards ◽  
Governance Mechanisms ◽  
Firm Level ◽  
Accounting Standard ◽  
Law System ◽  
Degree Of Convergence

The purpose of this research is to analyze the effect of law system for investor protection on implementation of corporate governance at company level and degree of convergence of local accounting standards to IFRS (International Financial Reporting Standards). The result shows that investor protection has positive effect on implementation of corporate governance and degree of convergence of local standard to IFRS. The evidence is consistent with the argument that firm can establish law environment well for their own, but the quality of corporate investor protection via implementation of corporate governance mechanisms will depend on efficiency of judicial system of the country where the firm operates; and the quality of accounting standard in one country is a signal of country’s commitment to investor protection in order to provide good protection for its investor; a country will tend to adopt higher quality of accounting standard to ensure financial reporting transparency. This indicates that investor protection can be the key to the quality of other governance mechanisms, both at institutional level such as accounting standards, and also at firm level such as corporate governance implementation.

scholarly journals Syrian sea ports and their global indicators

2021 ◽  
Vol 2021 (2) ◽  
pp. 99-108
Author(s):  
Ali Salameh ◽  
Sergey Aleksandrovich Kargin ◽  
Bachar Ahmad
Keyword(s):  
Liner Shipping ◽  
Mediterranean Coast ◽  
Global Competitiveness ◽  
Traffic Volumes ◽  
World Economic ◽  
Global Competitiveness Index ◽  
Geographical Position ◽  
Index Comparison

The article considers the role of the seaport in the economy and politics of the state. There are listed the main functions of seaports: trade, transportation, employment, industrial, fiscal, and political functions. The important role of the seaports of Syria in improving the quality of transport support for foreign trade activities was noted. The favorable geographical position of the Syrian ports on the Mediterranean coast determines a significant role in international maritime trade between European and Oriental countries. The statistical data on the seaports of the Syrian Arab Republic in the cities Latakia and Tartus have been analyzed. The dynamics of the volumes of containers transshipped through the seaport of Latakia, as well as through the seaport of Tartus is considered. A comparative analysis of the dynamics of the traffic volumes between both ports was carried out. The pace of development in the work of the Syrian ports is being studied on the basis of the GCI (The Global Competitiveness Index) and the liner shipping service index. Comparison of the liner shipping service index between Syrian ports and ports of neighboring countries has been made. The international rating of Syrian ports is presented in comparison with the rating of the nearest ports in the region by infrastructure. Conclusions are made about the low rating of Syrian ports in comparison with competing countries and international ports in general. There has been found the necessity of a detailed study of the reasons for the low competitiveness of the Syrian ports, including the crisis of 2011, rupture of relations between Syria and many countries of the world, economic sanctions against Syria, etc., in order to further develop measures to increase the competitiveness of Syrian seaports.

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