Corporate Governance Codes and Intellectual Capital: Evaluating the Performance Impacts among Government-Linked Companies in Malaysia and Singapore – A Panel Data Analysis

The objective of this study was to examine and compare the effects of corporate governance (CG) and intellectual capital (IC) between Malaysia Government-Linked Companies’ (M-GLCs) and Singapore Government-Linked Companies’ (S-GLCs) firm performance (FP). Panel data analysis was employed to analyse the impact of CG’s variables and IC’s variables on FP. FP was measured by Return on Total Assets (ROA), Tobin’s Q and Earnings Per Share (EPS). Data was gathered from the website of Bursa Malaysia and the Stock Exchange of Singapore from 2005 to 2018. The sample size of this research was 60 GLCs which comprised of 34 M-GLCs and 26 S-GLCs. There were a total 840 firm year observations. Results indicated that CGs of S-GLCs have greater impact on FP when compared to M-GLCs while the findings of the IC of M-GLCs have greater impact on FP compared to S-GLCs. This research was helpful in offering further insights of CG practices and IC efficiency to the Government, Board of Directors, policy makers, shareholders and stakeholders.

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Does Corporate Governance Influence the Firm Value in Bangladesh? A Panel Data Analysis

E+M Ekonomie a Management ◽

10.15240/tul/001/2021-2-006 ◽

2021 ◽

Vol 24 (2) ◽

pp. 84-100

Author(s):

Mohammed Nazim Uddin ◽

Mosharrof Hosen ◽

Shahnur Azad Chowdhury ◽

Mustafa Manir Chowdhury ◽

Manjurul Alam Mazumder

Keyword(s):

Corporate Governance ◽

Data Analysis ◽

Panel Data ◽

Firm Value ◽

Panel Data Analysis ◽

Small Scale ◽

Board Structure ◽

Corporate Governance Code ◽

Regulatory Bodies ◽

The Impact

Corporate governance has been widely debated for over a decade with the collapse of the financial and capital market under the prejudicial roles of regulatory bodies. Therefore, the study examined the impact of corporate governance on firm value in Bangladesh. A total of 63 DSE-listed companies from 2005 to 2019 consisting of 8,505 observations on an average of 15 years were chosen. The subsequent tests for the given data were conducted to identify the appropriate panel data analysis method for adjusted diagnostic problems. In the specific panel data, the Panel Corrected Standard Error (PCSE) was utilised following the application of the random effects method to control econometric limitations. It was revealed that corporate governance lowered firm value when the board structure was familially and politically affiliated and led by CEO-duality. Moreover, the inclusion of dynamic professionals and independent members in the board structure increased the firm value. The use of the corporate governance code was proven to be highly challenging due to the participation of political and family leaders in corporate firms. Additionally, proper law enforcement was required to ensure transparency and accountability, thus reflecting firm value. As previous studies on corporate governance were conducted on a small scale and partial to the context of developing countries, this paper contributes a novel value in identifying and resolving the corporate governance crisis by reforming the board structure with diverse and professional directors. The regulatory bodies require improvement by including autonomous professional and independent members to exercise the corporate governance code.

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Planos de Opções de Compra de Ações e o Valor das Companhias Brasileiras

Brazilian Review of Finance ◽

10.12660/rbfin.v10n1.2012.2654 ◽

2012 ◽

Vol 10 (1) ◽

pp. 105

Author(s):

Fernanda Finotti Cordeiro Perobelli ◽

Bruno De Souza Lopes ◽

Alexandre Di Miceli da Silveira

Keyword(s):

Corporate Governance ◽

Data Analysis ◽

Panel Data ◽

Best Practices ◽

Stock Price ◽

Stock Options ◽

Stock Exchange ◽

Panel Data Analysis ◽

Employee Stock Options ◽

Exercise Price

This work investigates the effects of Employee Stock Options Plans (ESOP) on the value of companies in the Brazilian Stock Exchange (BM&FBOVESPA). An ESOP is a mechanism of variable compensation, generally offered to executives, having the alignment of interests between managers and shareholders as one of its goals. To achieve this purpose, a panel data analysis was used in order to try measuring if the ESOP generated or not value to shareholders. The results show that there is evidence that the ESOP only generates wealth for shareholders when it is well-set, specifically when the exercise price is fixed at-money or out-of-money. An increase in the stock price is also achieved when companies adopt best practices of corporate governance and the ESOP by more than three years.

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THE EFFECT OF EARNINGS PERSISTENCE AND EARNINGS TRANSPARENCY ON COMPANY PERFORMANCE WITH CORPORATE GOVERNANCE AS MODERATING VARIABLE (Empirical Study in Manufacturing Company that Listed in Indonesia Stock Exchange in 2014-2016)

ECONOMICS & ACCOUNTING JOURNAL ◽

10.32493/eaj.v2i2.y2019.p86-94 ◽

2019 ◽

Vol 2 (2) ◽

pp. 86

Author(s):

Melinda Malau

Keyword(s):

Corporate Governance ◽

Data Analysis ◽

Panel Data ◽

Empirical Study ◽

Stock Exchange ◽

Panel Data Analysis ◽

Financial Statement ◽

Earnings Persistence ◽

Company Performance

ABSTRACTEarnings persistence and earnings transparency are an important factors in company performance. The quality of financial statement will differentiate performance between one company to another. The research purposed to analyze the effect of earnings persistence and earnings transparency on the company performance. In addition, the research purposed to analyze corporate governance as a moderating variable can strengthens the effect between earnings persistence and earnings transparency on company performance. This research using sample of 363 firms-year in 2014-2016 and applying panel data analysis. The results show that earnings persistence variable has a positive significant effect on the company performance. Earning transparency also has a positive significant effect on company performance. For corporate governance as a moderation variable strengthens the effect between earnings persistence and earning transparency to the company performance. Size and age also have a positive significant effect on company performance. Keywords: earnings persistence; earnings transparency; company performance; corporate governance.

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Financial flexibility and the speed of target adjustment of capital structure: Panel data analysis

Risk Governance and Control Financial Markets & Institutions ◽

10.22495/rcgv6i4c3art6 ◽

2016 ◽

Vol 6 (4) ◽

pp. 410-419

Author(s):

Ziad Mohammad Zurigat

Keyword(s):

Data Analysis ◽

Panel Data ◽

Capital Structure ◽

Fixed Effects ◽

Stock Exchange ◽

Panel Data Analysis ◽

Financial Flexibility ◽

Industrial Firms ◽

Leverage Ratio ◽

The Impact

This study aims at investigating the impact of financial flexibility on the speed of target adjustment of capital structure. For this purpose, the partial adjustment model with interaction dummy term is used and tested using panel data analysis for a sample of 47 industrial firms listed in Amman Stock Exchange over the period of 1996 to 2014. The results of Random and fixed effects models showed that the target reversion of capital structure occurs slowly. The results also revealed that financial flexible firms adjust their leverage ratio much faster than less flexible firms. The tendency of making target reversion increases when inflexible firms have leverage above its target level, while inflexible firms with above-target leverage ratio adjust their leverage faster than flexible firms. These findings suggest that financial flexibility plays an important role on determining the financing decisions in Jordanian industrial firms. Moreover, they suggest how large bankruptcy risk is critical for industrial Jordanian firms. Hence, Industrial Jordanian firms should take into consideration the financial flexibility when they set their financial decisions to avoid the loss of profitable investment opportunities or experience the financial distress

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Corporate Governance Mechanism and Firm Performance as Determinants of CEO Compensation: A Panel Data Analysis of Pakistani Listed Companies

Journal of Global Economy ◽

10.1956/jge.v8i4.262 ◽

2013 ◽

Vol 8 (4) ◽

pp. 307-314

Author(s):

Zahid Irshad Younas ◽

Bilal Mehmood ◽

Asal Ilyas ◽

Haseeb Asif Bajwa

Keyword(s):

Corporate Governance ◽

Firm Performance ◽

Panel Data ◽

Fixed Effects ◽

Ceo Compensation ◽

Stock Exchange ◽

Panel Data Analysis ◽

Governance Mechanism ◽

Board Size ◽

The Impact

The purpose of this study is to investigate the impact of corporate governance, firm performance on CEO compensation. More specific, firm performance, board size and audit expenditure are linked with CEO compensation. Using panel data for 151 Pakistani firms listed on Karachi Stock Exchange (KSE), fixed effects regression has been performed. The results indicate firm performance is negatively associated with CEO compensation, which hold managerial power theory. While, board size and audit expenditure showed a positive relationship with CEO compensation, which reflects the presence of human capital theory. The results of study are in line with the prior studies done on CEO compensation.

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Corporate Governance, Related Party Transactions and Firm Performance: A Panel Data Analysis

MUDRA Journal of Finance and Accounting ◽

10.17492/mudra.v5i2.14326 ◽

2018 ◽

Vol 5 (2) ◽

Author(s):

Raj K Kovid ◽

Sanjeev Dhar ◽

Mridul Dharwal

Keyword(s):

Corporate Governance ◽

Data Analysis ◽

Firm Performance ◽

Panel Data ◽

Stock Exchange ◽

Panel Data Analysis ◽

Panel Regression ◽

Related Party Transactions ◽

Or Manager ◽

The Relationship

Research on examining the relationship between the extent of related party transactions (RPTs) and the firm performance lack consensus. To further investigate this relationship, we use data of a sample of 483 Indian companies listed at National Stock Exchange (NSE) for the period 2013-2017. Based on analysis of data using panel regression, we observe that different forms of RPTs - income, expenses, borrowings and Loans, bank guarantee - do not lead to enhancement of the firm performance. However, the income from related parties are found to be negatively associated with firm performance. This is consistent with the hypothesis of principal-principal or manager conflict in corporate governance.

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Ownership concentration and corporate performance on the Ghana stock exchange: a panel data analysis

Corporate Ownership and Control ◽

10.22495/cocv5i4c1p4 ◽

2008 ◽

Vol 5 (4) ◽

pp. 196-203

Author(s):

Godfred Alufar Bokpin

Keyword(s):

Corporate Governance ◽

Panel Data ◽

Corporate Performance ◽

Stock Exchange ◽

Panel Data Analysis ◽

Ownership Concentration ◽

Return On Equity ◽

Exchange Panel ◽

Ghana Stock Exchange ◽

The Impact

Corporate governance is linked to corporate performance. The study examines the effect of ownership concentration on corporate performance on the Ghana Stock Exchange. Panel data covering a period from 2001 to 2006 for 28 firms were analyzed within the framework of both the fixed and random effects techniques. The results indicate that the effect of ownership concentration on corporate performance varies with the performance measurement variable. The results indicate a significant positive relationship between ownership concentration and return on assets and Tobin’s Q, whilst there is negative insignificant relationship with return on equity. We also document that insider system of corporate governance is practiced on the Ghana stock exchange as shareholding is highly concentrated in the hands of a few individuals or institutional investors. Other governance features such as board size, board composition and CEO duality are all essential in predicting corporate performance. The results of the study generally support existing literature on the impact of ownership concentration on corporate performance

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ÖRGÜTLERDE ÖRGÜTSEL BOLLUĞUN GİRİŞİMSEL ORYANTASYON ÜZERİNDEKİ ETKİSİ

Business And Management Studies An International Journal ◽

10.15295/bmij.v4i3.10 ◽

2016 ◽

Vol 4 (3) ◽

Author(s):

Nurdan Gürkan ◽

Ahmet Ferda Çakmak

Keyword(s):

Corporate Governance ◽

Data Analysis ◽

Panel Data ◽

Strategic Management ◽

Significant Relationship ◽

Entrepreneurial Orientation ◽

Panel Data Analysis ◽

Organizational Slack ◽

Analysis Method ◽

The Relationship

The concept of entrepreneurial orientation, which emerges with the development of strategic management, refers to entrepreneurship orientations of businesses. The businesses need resources in other words organizational slack in order to develop their entrepreneurial trends. The organizational slack consists of three slack type. These slack types are available slack, recoverable slack and potential slack. The purpose of this study is to examine whether organizational slack in the businesses has an effect on entrepreneurial orientation. The relationship between organizational slack and entrepreneurial orientation was investigated through 20 companies that were traded in Borsa Istanbul Corporate Governance Index for 2010-2014 period using panel data analysis method. The results of the study indicate the existence of a statistically significant relationship between and the available slack and the recoverable slack with the entrepreneurial orientation in the businesses. According to findings; there was no statistically significant relationship between potential slack and entrepreneurial orientation.

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