Corporate governance mechanisms and financial performance in China: panel data evidence on listed non financial companies

This study aims to analyze the effects of Islamic and conventional corporate governance mechanisms on financial performance. Six hypotheses have been developed and tested on 17 Malaysian Islamic banks observed over 7 years from 2005 to 2011. The measures used for financial performance were ROA; ROE and Operating Ratio (COSR). Using an econometric panel data, the results show that two among three conventional corporate governance mechanisms have significant effects on financial performance: the size of the board of director (SBD) and the degree of independence of the Board (INDEP); Whereas concerning the impact of the three other Islamic corporate governance mechanisms; our results show that only the visibility of supervisors is negatively as well as significantly related to financial performance. Regarding the relevance of control variables, two among three are relevant and positively related to financial performance (the age and the debt of the bank ratio.

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Do Multinational Companies Practice Good Corporate Governance? Empirical Evidence from Bangladesh

International Journal of Accounting and Financial Reporting ◽

10.5296/ijafr.v7i2.11843 ◽

2017 ◽

Vol 7 (2) ◽

pp. 96

Author(s):

G. M. Wali Ullah ◽

Sarwar Uddin Ahmed ◽

Samiul Parvez Ahmed ◽

Kazi Md. Jamshed

Keyword(s):

Corporate Governance ◽

Financial Performance ◽

Stock Returns ◽

Governance Structure ◽

Multinational Companies ◽

Governance Mechanisms ◽

Corporate Governance Structure ◽

Corporate Governance Mechanisms ◽

The Impact ◽

The Way

Corporate Governance refers to the way an organization is directed, administrated or controlled. It includes the set of rules and regulations that affect the manager's decision and contribute to the way company is perceived by the current and potential stakeholders. The corporate governance structure specifies the distribution of rights and responsibilities among different participants in the corporation such as; boards, managers, shareholders and other stakeholders and spells out the rules and procedures and also decision-making assistance on corporate affairs. Corporate governance practices in Bangladesh are gradually being introduced in most companies and organizations (Du, 2006). However, Bangladesh has fallen behind its neighboring countries and global economy in corporate governance (Gillibrand, 2004). Corporate governance structure is mainly considered ambiguous. Specific governance structures or practices will not necessarily fit all companies at all times. Firms with strong corporate governance mechanisms are generally associated with better financial performance, higher firm valuation and higher stock returns. Unfortunately, investors in Bangladesh have a little information about how these corporate values affect the performance of the Multinational Companies (MNCs). This study aims to provide a quantitative contribution to the literature by examining the impact of corporate governance mechanisms on financial performance from the perspective of MNCs. A panel data based Ordinary Least Squared (OLS) regression model was used to measure the quantitative significance of various corporate governance related variables on MNC performance, as identified through a detailed literature review.

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PENGARUH MEKANISME CORPORATE GOVERNANCE DAN UKURAN PERUSAHAAN TERHADAP KINERJA KEUANGAN (Survei Pada Perusahaan Manufaktur yang terdaftar di BEI )

Jurnal Aplikasi Akuntansi ◽

10.29303/jaa.v2i2.16 ◽

2018 ◽

Vol 2 (2) ◽

pp. 010-031

Author(s):

Animah Animah ◽

Lukman Effendy ◽

Alamsyah M. Thahir ◽

Erna Widiastuty

Keyword(s):

Corporate Governance ◽

Financial Performance ◽

Firm Size ◽

Sampling Technique ◽

Partial Least Square ◽

Least Square ◽

Governance Mechanism ◽

Governance Mechanisms ◽

Corporate Governance Mechanisms ◽

Corporate Governance Mechanism

The purpose of this research is to examine the effect of corporate governance mechanisms, firm size of financial performance. The Population of this research is the company manufacturing in BEI. The sampling technique used is purposive sampling. The analytical tool used is using partial least square program. The independent variables in this research are corporate governance mechanism, firm size while the dependent variable is the performance of the financial. The result of the research shows that firm size influence to financial performance, while other variables such as corporate governance mechanisms have no effect negative to financial performance.

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The relationship between corporate governance and financial performance of small corporations in Australia

Journal of Business Systems Governance & Ethics ◽

10.15209/jbsge.v9i2.716 ◽

2014 ◽

Vol 9 (2) ◽

Cited By ~ 2

Author(s):

Yongqiang Li ◽

Anona Armstrong ◽

Andrew Clarke

Keyword(s):

Corporate Governance ◽

Financial Performance ◽

Structural Equation ◽

Small Firms ◽

Negative Impact ◽

Governance Mechanisms ◽

Latent Constructs ◽

Equation Modelling ◽

Corporate Governance Mechanisms ◽

The Relationship

This paper examines a widely explored but yet to be confirmed relationship between two latent constructs - corporate governance and financial performance of small corporations in Australia. Prior studies have either focused on larger organisations or isolated corporate governance mechanisms in small firms. However, few have examined how corporate governance mechanisms, as a bundle, relate to small corporations. This study fills this gap by empirically analysing the aforementioned relationship using Structural Equation Modelling (SEM). Based on 387 responses from small corporations, the results show that corporate governance bundles measured by the extant literature, has a negative impact on the financial performance of small corporations. The result calls for a stakeholder approach to the governance needs of small corporations.

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The effects of corporate governance mechanisms on the financial leverage–profitability relation

Management Research Review ◽

10.1108/mrr-03-2019-0136 ◽

2019 ◽

Vol 43 (4) ◽

pp. 387-409

Author(s):

Hanh Song Thi Pham ◽

Duy Thanh Nguyen

Keyword(s):

Corporate Governance ◽

Panel Data ◽

Emerging Market ◽

State Ownership ◽

Board Independence ◽

Financial Leverage ◽

Governance Mechanisms ◽

Board Size ◽

Content Type ◽

Corporate Governance Mechanisms

Purpose This paper aims to investigate the moderating effects of corporate governance mechanisms on the financial leverage–profitability relation in emerging market firms. Design/methodology/approach The paper examines the impacts by estimating the empirical model in which a firm’s accounting profitability is a dependent variable, while financial leverage, board size, board independence, CEO duality, CEO ownership, state ownership and the interaction variables are predictors. The paper uses the panel data set of 295 listed firms in Vietnam in the period 2011-2015 and two key econometric methods for panel data, namely, the two-stage least square instrumental variable and general moments method. Findings The paper finds the evidence for the significant and positive effect of board size, board independence and state ownership on the financial leverage–profitability relation. The effect of CEO duality on the financial leverage–profitability relation tends to be negative, and the impact CEO ownership inclines to be positive, although both of them are statistically insignificant. The results are consistent across different estimation methods. Originality/value This paper is the first investigating the moderating effect of various corporate governance mechanisms on the financial leverage–profitability relationship in emerging market firms.

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The Role of Internal and External Corporate Governance Mechanisms on Firm’s Financial Performance in Malaysia

Asian Journal of Accounting and Governance ◽

10.17576/ajag-2015-6-06 ◽

2015 ◽

Vol 6 ◽

pp. 55-65 ◽

Cited By ~ 1

Author(s):

Allan Chang

Keyword(s):

Corporate Governance ◽

Financial Performance ◽

Governance Mechanisms ◽

Corporate Governance Mechanisms

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The financial impacts of board mechanisms on performance: The case of listed Moroccan banks

International Journal of Financial, Accounting, and Management ◽

10.35912/ijfam.v3i2.536 ◽

2021 ◽

Vol 3 (2) ◽

pp. 93-113

Author(s):

Issam El Idrissi ◽

◽

Youssef Alami ◽

Keyword(s):

Corporate Governance ◽

Financial Performance ◽

Fixed Effects ◽

Audit Committee ◽

Negative Impact ◽

Governance Mechanisms ◽

Return On Equity ◽

Corporate Governance Mechanisms ◽

Governance Practices ◽

The Impact

Abstract Purpose: The present study examines the impact of corporate governance mechanisms on listed Moroccan banks' financial performance. Research methodology: This study investigates the relationship between listed banks' governance mechanisms and financial performance in the CSE for six years between 2014-2019. This study employs three performance measures, return on assets, return on equity, and Tobin's Q, to determine bank performance. This research uses the GMM EGLS approach to analyze data. In the first phase of this empirical research, we did use OLS, Fixed Effects, and Radom Effects regressions to show their inefficiency. Results: Our results portray that most board mechanisms have a negative impact on financial performance. In comparison, the audit committee and nomination & remuneration committee have a positive effect on financial performance. Limitations: Many qualitative and quantitative factors could influence financial performance and not only the used variables in this paper. Contribution: This research shows that the dynamic connection between corporate governance and financial performance is robust in the Moroccan banking context. Also, our study has important implications for establishing good corporate governance practices in emerging economies.

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