scholarly journals Nexus between corporate governance practices and cost of capital in PSX listed firms

2019 ◽  
Vol 7 (1) ◽  
pp. 1600222 ◽  
Author(s):  
Muhammad Arslan ◽  
Sazali Abidin ◽  
Walid Mensi
Keyword(s):  
Corporate Governance ◽  
Cost Of Capital ◽  
Listed Firms ◽  
Governance Practices

scholarly journals Corporate Governance and Cost of Capital: Evidence from Emerging Market

Risks ◽  
2020 ◽  
Vol 8 (4) ◽  
pp. 104
Author(s):  
Muhammad Yar Khan ◽  
Anam Javeed ◽  
Ly Kim Cuong ◽  
Ha Pham
Keyword(s):  
Corporate Governance ◽  
Lower Cost ◽  
Cost Of Capital ◽  
Emerging Market ◽  
Firm Level ◽  
Listed Firms ◽  
Corporate Failure ◽  
Governance Index ◽  
Governance Practices ◽  
Code Of Corporate Governance

This study used a researcher self-constructed corporate governance index as a proxy to measure the firm-level corporate governance compliance and disclosure with the 2002 Pakistani Code of Corporate Governance, to examine the relationship between corporate governance and cost of capital. We found a negative and significant association between the Pakistani Corporate Governance Index (PCGI) and block ownership with the firm-level cost of capital. On average, better-governed Pakistani listed firms tend to be associated with a lower cost of capital than their poorly governed counterparts are. As an emerging market, good corporate governance practices are mainly related to minimise corporate failure and assist firms in attracting capital at a lower cost.

scholarly journals Performance, corporate governance and new regulation

2017 ◽  
Vol 9 (18) ◽  
Author(s):  
Heriberto García
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Financial Market ◽  
Information Disclosure ◽  
Potential Growth ◽  
Listed Firms ◽  
Risk Return ◽  
Corporate Governance Code ◽  
Governance Practices ◽  
The Relationship

Abstract. After the adoption of the Corporate Governance Code (Code) in Mexico, many companies increased financial performance and the leveraged during the following five years; we investigated the effect of how those firms improved the corporate governance practices and how was translated into better risk return company. We analyzed how and where better corporate governance practices affects performance and what was the relationship with Transparency, New Regulation and Governance Practices. Also we explored the gaps between transparency and information disclosure of Mexican Firms listed in U.S stockexchange and non U.S listed firms our findings were related to the potential growth of the Mexico Financial Market, Law and Finance.Keywords: corporate governance, financial performance, regulationResumen. Después de la adopción del Código de Gobierno Corporativo en México, algunas compañías incrementaron el desempeño financiero y el uso de deuda durante los siguientes cinco anos, nuestra investigación se enfoca en como dichas compañías mejoraron sus prácticas de gobierno corporativo y como estas prácticas se han traducido en un mejor relación de riesgo y rendimiento. En esta investigación exploramos cómo y en dónde mejores prácticas de gobierno corporativo afectan el desempeño y qué relación tiene con laTransparencia, Nuevas Regulaciones y prácticas de Gobierno Corporativo. Con lo anterior también identificamos aquellas compañías que cotizan fuera de México para identificar potenciales diferencias en dichas prácticas.Palabras clave: desempeño financiero, gobierno corporativo, regulación

scholarly journals Corporate Governance And Voluntary Disclosure In France

2013 ◽  
Vol 29 (2) ◽  
pp. 561 ◽  
Author(s):  
Carlos P. Barros ◽  
Sabri Boubaker ◽  
Amal Hamrouni
Keyword(s):  
Corporate Governance ◽  
Voluntary Disclosure ◽  
Audit Committee ◽  
Audit Quality ◽  
Annual Reports ◽  
Managerial Ownership ◽  
Board Meeting ◽  
External Audit ◽  
Listed Firms ◽  
Governance Practices

This paper investigates the effect of corporate governance practices on the extent of voluntary disclosure in France. Using a panel of 206 non-financial French listed firms during the period 20062009, we find evidence that voluntary disclosure in annual reports increases with managerial ownership, board and audit committee independence, board meeting frequency, and external audit quality. We also find that frequency of audit committee meetings and diligence of board and auditing are associated with decreased disclosure. Additional findings show that larger, more profitable, and less indebted firms have greater voluntary disclosure.

scholarly journals Does better corporate governance attract foreign equity ownership? Evidence from Malaysian listed companies

2012 ◽  
Vol 9 (4) ◽  
pp. 118-125
Author(s):  
Yap Voon Choong ◽  
Chan Kok Thim ◽  
John Stanley Murugesu
Keyword(s):  
Corporate Governance ◽  
Agency Cost ◽  
Government Ownership ◽  
Firm Level ◽  
Insider Ownership ◽  
Listed Firms ◽  
Good Corporate Governance ◽  
Corporate Governance Mechanisms ◽  
Governance Practices ◽  
Equity Ownership

This study examines the effect of firm-level corporate governance variables on foreign equity ownership (FEO) in Malaysia. Foreign equity ownership can be an important source of capital for companies to fund their expansion and growth. To attract FEO, good corporate governance practices are vital because these practices are used to reduce or mitigate agency cost. Based on a sample of listed firms on Bursa Malaysia and employing multiple regression analysis, the study finds that a number of corporate governance mechanisms significantly improve the ability of companies to attract foreign equity ownership, especially, Insider Ownership, Government Ownership, Firm Size, Dividend Yield and Tobin’s Q. The results of the study indicate that firm-level efforts for better corporate governance sends positive signals and confidence to foreign investors.

scholarly journals Value Boosters or Dampers? Insights of Corporate Governance Practices From Pakistan

2018 ◽  
Vol III (III) ◽  
pp. 207-236
Author(s):  
Abida Razzaq ◽  
Ghulam Shabbir Khan Niazi
Keyword(s):  
Corporate Governance ◽  
Good Governance ◽  
Policy Implications ◽  
Listed Firms ◽  
Earnings Per Share ◽  
Theoretical Perspectives ◽  
Governance Practices ◽  
Vested Interests ◽  
Cosmetic Effect ◽  
Block Holders

Rampant corporate failures have placed corporate governance in the limelight again however not all governance practices help firms in enhancing value. This empirical research examines impact of corporate governance practices on shareholders' value represented by earning per share of 243 listed firms on Pakistani Bourse. It ensued in the conclusion that overall corporate governance tends to have significant impact on earnings per share and reveals dichotomy of corporate governance practices based on direction of their association with share holders' value and terms them as value boosters and value dampers. It has also been found that pro-entrenchment practices tend to lower earnings per share in the listed firms either due to complacency or vested interests while rest of the practices help in enhancing value earned on each share thus endorsing the theoretical perspectives emanating out of agency and shareholder activism theories. This study emphasizes the significance of Board Attendance, Board Independence, Non-duality of CEOChairman Role for listed firms' value. It also shows that entrenchment acts like larger boards, directors' ownership, large block holders and disclosure of such ownership can adversely impact the firms' value and thus play a significant role in scaring away the potential investors who primarily look at earnings per share for buying of stocks of a particular company. It entails policy implications that implementation of counter-entrenchment regulations needs strengthening as the existing seem to have cosmetic effect. Identification and implementation of good governance practices can be best ensured when propagated in the perspective of value enhancement.

scholarly journals Does Corporate Governance Have a Say on Dividends in Australian Listed Companies?

2021 ◽  
Vol 15 (4) ◽  
pp. 47-75
Author(s):  
Omar Al Farooque ◽  
Ali Hamid ◽  
Lan Sun
Keyword(s):  
Corporate Governance ◽  
Dividend Policy ◽  
Good Governance ◽  
Empirical Studies ◽  
Managerial Ownership ◽  
Monitoring And Control ◽  
Governance Mechanisms ◽  
Listed Firms ◽  
Corporate Governance Mechanisms ◽  
Governance Practices

This paper investigates whether corporate governance has an impact on dividend policy in Australian listed firms. The empirical studies of corporate governance and dividend policy in the Australian context tend to have a limited scope and the findings are mixed. Unlike the existing literature, this paper provides a more comprehensive examination of the relationship between dividend policy and corporate governance mechanisms. Using a sample of 1,438 firm-year observations for the period of 2005 to 2011 and the panel data approach, this study finds that dividend payout is significantly positively (negatively) correlated with board size, board independence, institutional ownership and use of a Big-4 audit firm (CEO duality and managerial ownership). Moreover, dividend yield is significantly positively (negatively) correlated with managerial ownership (foreign ownership). These findings suggest that dividend policy and corporate governance mechanisms are complementary i.e. firms paying higher dividends are more likely to engage in good governance practices as well as having strong monitoring and control systems in place and therefore both dividend policy and corporate governance are considered as effective tools in reducing agency costs.

scholarly journals The Impact of Compliance with Codes of Corporate Governance on Quality of Disclosure: Comparative Study between Palestine and Jordan

2016 ◽  
Vol 8 (9) ◽  
pp. 215
Author(s):  
Naser - Abdelkarim ◽  
Mohammed T. Abusharbeh
Keyword(s):  
Corporate Governance ◽  
Regression Model ◽  
Listed Companies ◽  
Multiple Regression Model ◽  
Financial Data ◽  
Listed Firms ◽  
Governance Practices ◽  
The Impact ◽  
Analyze Data

<p>This study seeks to achieve two objectives; (1) to examine the degree of compliance with corporate governance requirements in Palestine and Jordan by listed firms, and (2) to investigate the impact of corporate governance on quality of disclosure for Palestinian and Jordanian listed firms. A sample of 15 Palestinian listed companies and 30 Jordanian listed companies that fully disclosed their financial data in year 2007 and 2014 was used. This research employs multiple regression model and one sample t-test in order to analyze data variables and to test the research hypotheses.The research reveals that there are no statistically significant differences between Jordan and Palestinian listed firms in applying the respective codes of corporate governance, but these two countries are relatively still modest in observing corporate governance rules. This study also concludes that boards of director’s characteristics have no significant impact on quality of disclosure in Palestine and Jordan. This indicates that corporate governance practices didn’t have any significant effect on quality of disclosurefor Palestinian and Jordanian listed firms.</p>

scholarly journals Corporate Governance Practices and Firm’s Capital Structure Decisions: An Empirical Evidence of An Emerging Economy

2017 ◽  
Vol 6 (4) ◽  
pp. 115
Author(s):  
Hassan M. Hafez
Keyword(s):  
Corporate Governance ◽  
Capital Structure ◽  
Emerging Economies ◽  
Descriptive Statistics ◽  
Systematic Research ◽  
Hausman Test ◽  
Listed Firms ◽  
Growing Body ◽  
Governance Practices ◽  
Main Driver

There is a growing body of literature that recognises the importance of corporate governance practices on capital structure decisions. However, results are not consistent and only a few studies have been able to draw on any systematic research trying to quantify the relation between corporate governance practices and capital structure decisions and to acquire bits of knowledge of such relation of listed firms in Emerging Economies. Because of the fact that impact use of the corporate governance rules can have on capital structure decisions.The main driver of this research is to investigate the sound use of the Egyptian corporate governance practices on capital structure decisions of listed firms in Egypt over the period 2007 to 2016 utilizing a sample of 50 listed firms in EGX 100. Empirical results demonstrate the significant relationship between various inner and outer corporate governance practices and capital structure decisions of listed firms in Egypt. The findings were quantitatively approved through utilizing E-Views programming for examining panel data. Descriptive statistics, Multi-Collinearity test, Hausman test and multiple regression have been utilized to distinguish the major determinates of capital structure decisions and assess whether it has a significant impact on capital structure decisions. 

scholarly journals The key challenges of corporate governance of firms: Empirical evidence from Sub-Saharan African anglophone (SSAA) countries

2016 ◽  
Vol 13 (3) ◽  
pp. 415-433
Author(s):  
Adeoye Amuda Afolabi
Keyword(s):  
Corporate Governance ◽  
Empirical Evidence ◽  
South African ◽  
Vital Role ◽  
Accounting System ◽  
Governance System ◽  
Listed Firms ◽  
Corporate Governance System ◽  
Governance Practices ◽  
Sub Saharan

This paper uses empirical evidence to identify views about the important components of good corporate governance practice for listed firms in Sub-Saharan African Anglophone countries. This study used survey questionnaire based on international corporate governance norms, data were collected from listed firms in Ghana, Nigeria and South Africa. The findings include: In Ghanaian and South African firms there are evidence that regulatory framework and enforcement of corporate governance promote sound corporate governance system. This study revealed that commitment of board of directors to disclosure and communication may provide effective corporate practices. Political environment and ownership structure of firms’ hinder sound corporate governance practices. Accounting system operating in each country plays a vital role in promoting sound corporate governance system. However, societal, cultural and corruption seem to deter corporate governance system in Ghanaian and South African firms. We recommend that there should be prudent monitoring of corporate governance rules and enforcement.

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