Corporate governance and performance of medium-sized firms in Nigeria: does sustainability initiative matter?

2020 ◽  
Vol 20 (3) ◽  
pp. 401-427
Author(s):  
Babatunji Samuel Adedeji ◽  
Tze San Ong ◽  
Md Uzir Hossain Uzir ◽  
Abu Bakar Abdul Hamid
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Financial Reporting ◽  
Structural Equation ◽  
Negative Impact ◽  
Positive Impact ◽  
Mediating Effect ◽  
Content Type ◽  
And Performance ◽  
The Relationship

Purpose The non-existence of the corporate governance (CG) concept for practices by non-financial medium-sized firms (MSFs) in Nigeria informed. This study aims to determine whether CG practices influence firms’ performance and whether sustainability initiative (SI) mediates the relationship between CG and MSFs’ performance in Nigeria. Design/methodology/approach A total of 300 firms were selected on convenience sampling basis from South Western Nigeria using a structured questionnaire. The authors used Statistical Package for Social Sciences for exploratory data analysis and hypotheses were tested using covariance-based structural equation modelling. Findings The results show that CG has a significant positive effect on performance [financial performance (FNP) and non-financial performance (NFP)] and SI. SI has a mixed impact on performance, e.g. a significant positive impact on NFP but insignificant negative impact on FNP. Similarly, SI has a combined mediating effect in the relationship between CG and performance, e.g. fully mediates CG → NFP and does not mediate CG → FNP. Firms are to invest in social and environmental initiatives substantially. CG codes will complement the International Financial Reporting Standards for MSFs. Research limitations/implications This study supports the assumptions of theories (institutional, stakeholder and agency) as the basis for the usage of multiple approaches to determine the outcome of hypotheses, especially in developing climes. Practical implications The study contributes to CG and performance literature by examining the mediating effects of SI. The paper also shows the necessity to emphasise NFP aspect. Policymakers should evolve CG codes to encourage stakeholders to believe more in the corporate existence of MSFs for strengthening capital-base and quality personnel engagement. Originality/value To the best of the authors’ knowledge, this is one of the first empirical attempts showing the evidence on the relationship between CG and NFP in Nigeria.

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

2014 ◽  
Vol 9 (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.

Emotional intelligence and materialism: the mediating effect of subjective well-being

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Aušra Rūtelionė ◽  
Beata Šeinauskienė ◽  
Shahrokh Nikou ◽  
Rosita Lekavičienė ◽  
Dalia Antinienė
Keyword(s):  
Emotional Intelligence ◽  
Structural Equation ◽  
Satisfaction With Life ◽  
Positive Impact ◽  
Well Being ◽  
Mediating Effect ◽  
Subjective Well Being ◽  
Content Type ◽  
Affect Balance ◽  
The Relationship

Purpose The purpose of this study is to examine the nature of the relationship between emotional intelligence and materialism by exploring how subjective well-being mediates this link. Design/methodology/approach Data was collected from surveying 1,000 Lithuanians within random sampling, and structural equation modelling (SEM) techniques using SmartPLS were used to analyze the data. Findings The results show that emotional intelligence not only has a negative indirect effect on materialism but also a positive impact on both dimensions of subjective well-being (satisfaction with life and affect balance). In addition, the findings indicate that both satisfaction with life and affect balance predict a decrease in materialism. Finally, the SEM analyzes show that the path between emotional intelligence and materialism is partially mediated by both satisfaction with life and affect balance. Social implications The results of this study expand the understanding to what extent and how emotional intelligence is able to assist in adjusting materialistic attitudes, which have become more prevalent with the respective growth of consumerism and consumer culture worldwide. In the light of unsustainable consumption patterns threatening the survival of humankind and nature, the opportunities that could reverse this trend are presented for marketers and policy makers. This study gives insight into the potential pathways for diminishing consumer materialism, which is considered detrimental to subjective well-being and mental health. Originality/value The relationship between emotional intelligence and subjective well-being has been well documented, as has the link between materialism and subjective well-being. However, the simultaneous examination of the relationship between emotional intelligence, subjective well-being and materialism is lacking. The current study adds to the understanding of materialism not only by examining the effect of under-researched antecedent such as emotional intelligence but also by explaining the underlying mechanism of subjective well-being by which emotional intelligence connects to materialism.

Diversity climate on turnover intentions: a sequential mediating effect of personal diversity value and affective commitment

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Joonghak Lee ◽  
Steven Kim ◽  
Youngsang Kim
Keyword(s):  
Structural Equation ◽  
Affective Commitment ◽  
Turnover Intentions ◽  
Positive Impact ◽  
Mediating Effect ◽  
Equation Modeling ◽  
Diversity Climate ◽  
Content Type ◽  
Climate Influences ◽  
The Relationship

PurposeResearch on diversity climate has shown that diversity climate as an employee's perception of an organization's diversity-related practices or procedures has a positive impact on reducing turnover intentions. However, we know little about which intervening mechanism explains the relationship between diversity climate and employee's turnover intentions. In this study, we suggest that individual employee's perceived diversity climate influences turnover intentions through personal diversity value and affective commitment.Design/methodology/approachWith a sample of 901 employees in more than 50 companies affiliated in South Korea, the authors test the hypothesized relationship, using structural equation modeling (SEM).FindingsOur findings show that personal diversity value and affective commitment sequentially mediate the relationship between perceived diversity climate and turnover intentions.Research limitations/implicationsThis study can enhance the understanding about the mediating mechanism linking the relationship between perceived diversity climate and turnover intentions and how personal diversity value and affective commitment link the relationship.Originality/valueThe authors theorize and find that perceived diversity climate can influence personal diversity value that results in employee commitment and turnover intentions.

Effects of authentic leadership, affective commitment and job resourcefulness on employees’ creativity and individual performance

2016 ◽  
Vol 37 (8) ◽  
pp. 1038-1055 ◽  
Author(s):  
Ana Suzete Dias Semedo ◽  
Arnaldo Fernandes Matos Coelho ◽  
Neuza Manuel Pereira Ribeiro
Keyword(s):  
Structural Equation ◽  
Authentic Leadership ◽  
Affective Commitment ◽  
Positive Impact ◽  
Individual Performance ◽  
Public And Private ◽  
Content Type ◽  
Training Activities ◽  
And Performance ◽  
The Relationship

Purpose The purpose of this paper is to report the findings of a study examining the relationship between authentic leadership (AL), attitudes and employees’ behaviours. More specifically, how AL influences affective commitment, job resourcefulness and creativity, which, in turn, influence individual performance. Design/methodology/approach Empirical research has analysed the data from a questionnaire administered to a sample of 543 employees belonging to various public and private organisations in Cape Verde. The model was tested using structural equation modelling. Findings The results reveal that AL influences employees’ attitudes (affective commitment and job resourcefulness) and their creativity, affective commitment and job resourcefulness predict the employees’ creativity, and job resourcefulness and creativity predict individual performance. Practical implications The results from this study can help managers to understand how to increase employees’ creativity and performance through AL, affective commitment and job resourcefulness. Indirectly, the study also suggests that organisations should focus on selecting leaders with authentic features and implement appropriate training activities, coaching and development that aim to increase AL since this may well result in a positive impact on employees’ attitudes and behaviours. Originality/value The originality of this study is that it focusses on the integration of the five concepts, AL, affective commitment, job resourcefulness, creativity and individual performance, in a single study, providing a model that depicts the chain of effects between AL, employees’ attitudes, employees’ creativity and individual performance.

The role of intellectual capital in fostering SD-Orientation and firm performance

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Helena Alves ◽  
Ignacio Cepeda-Carrion ◽  
Jaime Ortega-Gutierrez ◽  
Bo Edvardsson
Keyword(s):  
Financial Performance ◽  
Intellectual Capital ◽  
Structural Equation ◽  
Great Influence ◽  
Relational Capital ◽  
Content Type ◽  
Service Oriented ◽  
And Performance ◽  
The Relationship

PurposeThis research aims to understand the relationship among Intellectual Capital (IC), Service Dominant Orientation (SD-Orientation) and firms performance.Design/methodology/approachA model conceptualizing the relationship among the three constructs was tested through structural equation modelling on a sample of 101 firms from SABI Spanish database.FindingsThe results confirm the influence of IC, in all of its dimensions, on SD-Orientation and of SD-orientation on performance. Furthermore, the results show that SD- Orientation fully mediates the relationship between IC and performance, except for relational capital that by itself also directly influences financial performance.Research limitations/implicationsData is limited to a sample of only one country and 101 services firms. Therefore, future studies should be carried out with samples from other countries.Practical implicationsThe main results show HC, relational capital and SC are a great influence and antecedent on SD-Orientation, therefore, as an implication, firms need to take care of the several components (human, structural and social) of IC in order to become more service oriented, something that will allow them to achieve a better performance.Originality/valueUntil know there was no other study testing the influence of IC on SD-Orientation, therefore this study contributes to understand SD-orientation and the necessary resources to operationalize it, including the links to financial performance.

The effects of social responsibility and hypocrisy on the relationship among psychological contract violation, trust and perceived betrayal

2019 ◽  
Vol 31 (2) ◽  
pp. 241-261
Author(s):  
Chen Hai-Ming ◽  
Lan Li-Chi ◽  
Chiu Tao-Sheng ◽  
Fang Chen-Ling
Keyword(s):  
Social Responsibility ◽  
Psychological Contract ◽  
Negative Impact ◽  
Positive Impact ◽  
Mediating Effect ◽  
Content Type ◽  
Psychological Contract Violation ◽  
The Impact ◽  
The Relationship ◽  
Contract Violation

Purpose This paper aims to explore the impact of corporate social responsibility and hypocrisy on the relationship among psychological contract violation, trust and perceived betrayal. Design/methodology/approach This study used purposive sampling and selected students in Taiwan as the research participants. The theory of psychological contract violation and consumer awareness process in violation hypocrisy on psychological contract violation were used to investigate the effect of its impact on trust and perceived betrayal. Then, the moderating effect of social responsibility and hypocritical on trust, and the mediating effect of trust between psychological contract violation and perceived betrayal were analyzed. Findings The results indicated that hypocrisy had a significant and negative impact on psychological contract violation toward trust; hypocrisy had a significantly positive impact on psychological contract violation toward perceived betrayal; trust had a significantly negative impact on perceived betrayal; perceived betrayal had a significantly positive impact on both direct and indirect revenges; trust had a mediating effect between hypocrisy toward psychological contract violation and perceived betrayal; and higher hypocrisy would produce a stronger effect through trust on the relationships between hypocrisy toward psychological contract violation and perceived betrayal. Originality/value Perception of consumers would differ whenever there were failures of service recovery occurred; especially, stronger betrayal feeling would be perceived with the companies who emphasized social responsibility and did not carry out what they should do. Research results could be references for companies whom advertising and praising social responsibility.

Corporate governance implementation rating in Indonesia and its effects on financial performance

2017 ◽  
Vol 17 (2) ◽  
pp. 250-265 ◽  
Author(s):  
Agus Wahyudin ◽  
Badingatus Solikhah
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Positive Impact ◽  
Stock Exchange ◽  
Market Performance ◽  
Continuous Assessment ◽  
Public Companies ◽  
Content Type ◽  
The Government ◽  
And Performance

Purpose The purpose of this paper is to investigate the effect of corporate governance (CG) implementation rating conducted by the Indonesian Institute for Corporate Governance (IICG) on the financial performance of the selected companies. Design/methodology/approach This paper is a hypothesis testing study to analyze CG implementation of 88 firms listed on the Indonesian Stock Exchange. The samples are companies that participated in the Corporate Governance Perception Index (CGPI) Awards in 2008-2012. A panel data regression analysis is conducted on the data collected from IICG reports and its financial statements. Findings The awareness regarding good corporate governance (GCG) enforcement in Indonesian companies has already increased. The listed companies that participated in CGPI Awards during 2008-2012 always experience an increase in both quantity and quality. CG rating of go-public companies in Indonesia affects their accounting-based financial performance, such as return on assets, return on equity and earnings per share. However, CG implementation rating is not directly responded by the Indonesian stock market and has not yet been able to increase the company’s growth in the short term. Research limitations/implications In this study, CGPI rating in a related year is linked to market performance in the same year. Thus, further research may link CGPI rating to market performance in the next year, as the findings of this study show that GCG implementation is not directly responded by the market. Practical implications GCG implementation is required by stakeholders, as it may give a long-term positive impact. Thus, the government needs to stipulate regulations to increase the commitment of the company in implementing GCG. The company can improve the internal factors of the organization that does not support the establishment of GCG based on the findings during the survey of CGPI. Finally, investors and creditors may consider the CGPI rating for their investment decisions. Originality/value This study contributes to the literature in two ways. First, this study uses the comprehensive CG rating in Indonesia. Previous studies on CG rating focused on internal mechanism; in this study, the rating was assessed using four stages of continuous assessment: self-assessment, document evaluation, paper assessment and company visit, which was conducted by an independent team. Second, this study uses the CG index (compliance, conformance and performance) associated with a variety of accounting-based and market-based performance variables: financial performance, market value and growth.

scholarly journals Corporate governance and bank performance: Evidence from Bangladesh

2012 ◽  
Vol 8 (1) ◽  
pp. 62-68 ◽  
Author(s):  
Mohammad Badrul Muttakin ◽  
Md. Shahid Ullah
Keyword(s):  
Corporate Governance ◽  
Negative Impact ◽  
Positive Impact ◽  
Governance Structure ◽  
Bank Performance ◽  
Corporate Governance Structure ◽  
Corporate Governance Mechanisms ◽  
Significant Negative Impact ◽  
And Performance ◽  
The Relationship

The study investigates the relationship between the corporate governance structure and performance of listed banks in Bangladesh. We find that board independence and board size have a significant positive impact on performance. However, female directors appear to have no impact on performance. Our evidence indicates that the extent of the managerial ownership level has a significant negative impact on bank performance. These results suggest that better corporate governance mechanisms are imperative for every banking company and should be encouraged for the interest of the investors and other stakeholders.

The mediating role of sense of belonging in the relationship between the built environment and victimisation: a case of Penang, Malaysia

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Aldrin Abdullah ◽  
Mina Safizadeh ◽  
Massoomeh Hedayati Marzbali ◽  
Mohammad Javad Maghsoodi Tilaki
Keyword(s):  
Built Environment ◽  
Sense Of Belonging ◽  
Structural Equation ◽  
Negative Impact ◽  
Positive Impact ◽  
Physical Characteristics ◽  
Content Type ◽  
The Impact ◽  
The Relationship

Purpose The current direction of urban planning and development is plagued with a number of issues related to crime and safety in neighbourhood areas. Undoubtedly, the physical characteristics of the surrounding environment play a vital role in residents’ social interactions and crime rate. This study aims to examine the role of the environmental features of the built environment, in particular house maintenance, on residents’ sense of belonging and victimisation. Although past research has relied on police victimisation rates, the current research has measured the actual victimisation rate through a questionnaire survey. Design/methodology/approach The study is quantitative in nature and consists of 255 residents from an urban neighbourhood in Penang, Malaysia. Findings The results of structural equation modelling indicate that house maintenance has a significant and positive impact on the sense of belonging, while there is a negative impact on victimisation rate. However, the study findings do not support the mediation role of the sense of belonging in the relationship between house maintenance and victimisation rate. Originality/value The study suggests that physical characteristics of the environment play a significant role in reducing opportunities for property victimisation and a building sense of belongings amongst neighbours. This study can also be considered as a further step for obtaining insight into the understanding of the impact of physical characteristics of the neighbourhood environment on victimisation.

scholarly journals The Influence of Management on Teacher Well-Being and the Development of Sustainable Schools

2021 ◽  
Vol 13 (5) ◽  
pp. 2909
Author(s):  
Esther Pagán-Castaño ◽  
Javier Sánchez-García ◽  
Fernando J. Garrigos-Simon ◽  
María Guijarro-García
Keyword(s):  
Resource Management ◽  
Human Resource Management ◽  
Human Resource ◽  
Negative Impact ◽  
Well Being ◽  
Structural Equations ◽  
Mediating Effect ◽  
Educational Performance ◽  
And Performance ◽  
The Relationship

Teaching is one of the professions with the highest levels of stress and disquiet at work, having a negative impact on teachers’ well-being and performance. Thus, well-being is one of the priorities in human resource management (HRM) in schools. In this regard, this paper studies the relationship between HRM, well-being and performance, observing the incidence of leadership and innovation in these relationships. The objective is to measure the extent to which it is necessary to encourage sustainable environments that promote the well-being of teachers and, by extension, students. The study used the methodology of structural equations and a sample of 315 secondary school teachers. The work validates the influence of leadership by example and information management on HRM and performance. In addition, we confirm the significant effect of human resource management on educational performance. The relationship is observed both directly and through the mediating effect on the improvement of well-being. On the other hand, the positive influence of innovation on performance, both in schools and in the classrooms, is reaffirmed. These results suggest the need to zero in on the human resources policies in schools linked to the improvement of teacher well-being and educational performance. They also highlight the role of school and classroom innovation as a key element in maintaining educational quality.

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