Gender diversity in the board and firms performance

2020 ◽  
pp. 2050044
Author(s):  
Muhammad Ishfaq Ahmad ◽  
Muhammad Akram Naseem ◽  
Ramiz ur Rehman ◽  
Rizwan Ali ◽  
Suhaib Mazoor
Keyword(s):  
Financial Performance ◽  
Stock Exchange ◽  
Gender Diversity ◽  
Negative Influence ◽  
Positive Influence ◽  
Board Independence ◽  
Corporate Management ◽  
Board Diversity ◽  
Good Corporate Governance ◽  
Significant Positive Influence

Good corporate governance has been on the corporate agenda for the last two decades. Among other issues, female’s presentation in the board rooms received much more attention. This study examines the participation of females as an executive in corporate management and financial performance of the engineering sector of Pakistan. The data comes from listed companies at the Pakistan Stock exchange from 2010 to 2019. By using the data of 12 companies, it is found that there is a significant positive relationship between board diversity and financial performance. Moreover, board size and board meetings and CEO education have a significant positive influence on the financial performance of firms. However, board independence has a significant negative influence on financial performance.

scholarly journals Corporate Board Diversity and Financial Performance: The Nigerian Insurance Sector’s Perspective

Growth ◽  
2020 ◽  
Vol 7 (1) ◽  
pp. 20-25
Author(s):  
Gbarato, Ledum Moses
Keyword(s):  
Financial Performance ◽  
Gender Diversity ◽  
Negative Influence ◽  
Least Square ◽  
Insurance Companies ◽  
Board Members ◽  
Board Composition ◽  
Corporate Board ◽  
Board Size ◽  
Board Diversity

The presence of appropriate gender diversity, board size and board composition does not only promote favourable organizational ambience but also offers meaningful upsurge in the financial position of an organization relatively. It is on this premise that prompted the essence to examine the relationship between corporate board diversity and financial performance of insurance companies in Nigeria for the period 2014 to 2018. Secondary data from Cornerstone Insurance Plc. and Lasaco Assurance Plc. were employed in the study. Using the Panel least Square regression technique, the results reveal that gender diversity, board size and board composition exert insignificant influence on profit before tax as the measure of financial performance. However, while gender diversity exerts negative influence, board size and board composition exert positive influences on profit before tax of insurance companies. The study concludes that employment of appropriate number of directors and also in suitable composition as board members have positive effect on the financial performance of insurance firms. Therefore, the study recommended among others, that: appropriate ratio of executive to independent non-executive directors should be maintained among board members for better decision-making at the interest of all stakeholders. Also, the ratio of gender diversity (female to male directors) should be increased as the role of women in resource management cannot be relegated to the background especially in financial performance of insurance companies.

scholarly journals ANALYSIS OF THE INFLUENCE OF INTEREST RATE, EXCHANGE VALUE, WORLD GOLD PRICES, DOW JONES INDEX, AEX INDEX, DAX INDEX, AND SHANGHAI INDEX ON LQ45 INDEX IN INDONESIA STOCK EXCHANGE 2012 – 2018

2021 ◽  
Vol 7 (2) ◽  
pp. 135
Author(s):  
Andini Nurwulandari ◽  
Hasanudin Hasanudin ◽  
Ari Jatmiko Setiyo Budi
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Stock Exchange ◽  
Negative Influence ◽  
Positive Influence ◽  
Gold Price ◽  
Jones Index ◽  
Exchange Value ◽  
The Interest Rate ◽  
Significant Positive Influence

<p><em>This research aims to find out the influence of interest rate, exchange rate, world gold price, Dow Jones Index, AEX Index, DAX Index, and Shanghai Index on the LQ45 Index at the Indonesia Stock Exchange from 2012 through 2018 using the ARCH/GARCH model as the method of analysis.  The result of the test shows that the exchange rate had a significant negative influence, Dow Jones Index, AEX Index, and DAX Index had a significant positive influence on the LQ45 index, while the interest rate and world gold price had a non-significant negative influence and the Shanghai Index had a non-significant positive influence on the LQ45 index.</em></p>

Corporate Governance Mechanism on Financial Performance (Evidence from the Indonesia’s Listed State-owned Enterprises)

2021 ◽  
Vol 1 (1) ◽  
pp. 24-34
Author(s):  
Anak Agung Kompiyang Ratih Maldini ◽  
Pananda Pasaribu ◽  
Christian Haposan Pangaribuan
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Positive Impact ◽  
Stock Exchange ◽  
Governance Structure ◽  
Board Independence ◽  
Governance Mechanism ◽  
Good Corporate Governance ◽  
Corporate Governance Mechanism ◽  
The Impact

Objective – This study aims to find the impact of privatization, which proxied by good corporate governance toward the financial performance of SOEs in Indonesia. Methodology – This study used 16 privatized SOEs that are listed in Indonesia Stock Exchange and also 16 privatized non-SOEs as the comparison. The data is collected from the year 2014 to 2018 and analyzed by using multiple regression panel data. Findings – This study found that director size and board independence have a positive impact toward SOEs financial performance. The director size and board independences have a positive significant impact toward the SOEs financial performance while the privatized non-SOEs is not significantly affected Novelty – This study examines proper governance structure in SOEs and non-SOEs, thus providing new insights about good corporate governance regulation in the Indonesian context.

scholarly journals The Impact of Governance Rules on Earnings Management: Applied Study on Industrial and Service Companies Listed on Palestine Stock Exchange

2019 ◽  
pp. 103-136
Author(s):  
Yousef Alrayyes ◽  
Nahed Al Khaldy
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Stock Exchange ◽  
Negative Influence ◽  
Positive Influence ◽  
Board Independence ◽  
Independence Property ◽  
Ceo Duality ◽  
Board Directors ◽  
The Impact

The aim of the study is to analyze the impact of corporate governance rules on earnings management for companies listed on Palestine Exchange. A number of corporate governance variables was selected to achieve this aim, including size of board of directors, CEO duality, board of director’s independence, property rights, number of board directors’ meetings. Modified Jones Model has been used to detect earnings management. Panel Data Model has also been involved in the study, where the population study consists of the 48 companies listed on Palestine Exchange, and which are distributed across five main sectors. The study sample included 13 industrial and services companies listed on Palestine Exchange. This study found that there was a negative influence between board size and CEO duality, and between earnings management. The study also showed that there is a positive influence between board independence and earnings management. Moreover, it showed that no relationship between board directors meetings and internal ownership with earnings management. The study stressed on the need for continued reinforcement of the governance rules, in order to avoid the negative impacts resulted from failure to apply these rules, taking into consideration the support of board independence in their relationship with areas of executive work to avoid taking decision that may affect earnings management. It also recommended that doing other researches on the same subject should be continued, taking into account the examination of variables other than those in this study to get to the variables that have the greatest impact on earnings management for companies listed on Palestine Exchange. 

scholarly journals IMPRESSION OF LIQUIDITY, LEVERAGE, AND INDEPENDENT COMMISSIONERS ON THE VALUE OF NATIONAL PRIVATE BANK GENERAL COMPANIES

2020 ◽  
Vol 1 (1) ◽  
pp. 21-29
Author(s):  
Sochib Sochib ◽  
Noviansyah Rizal
Keyword(s):  
Stock Prices ◽  
Firm Value ◽  
Stock Exchange ◽  
Negative Influence ◽  
Positive Influence ◽  
Company Value ◽  
Regression Approach ◽  
Study Population ◽  
Equity Ratio ◽  
Significant Positive Influence

Management hopes to make a profit with the intention of adding value to the company. Through the provision of sufficient bank funds to meet liquidity and lending to increase profitability and increasing company value. Company value is built by managing good company assets so that profits are obtained. This information gives a signal to the stock market and is responded by the market at stock prices. This study aims to determine the influence of liquidity, leverage, and independent commissioners on firm value. The study population is national private commercial banks listed on the Indonesia Stock Exchange in the 2014-2018 period. Samples were taken based on purpose sampling so that 17 samples were obtained. The study uses a linear regression approach with liquidity variables measured by Loan to Deposit Ratio, Leverage is measured by Debt to Equity Ratio, independent commissioners are measured by the number of independent commissioners, and company value is measured by Tobin's Q. The results that liquidity has a significant negative influence on the value of the company, leverage has no influence on the value of the company, and Independent Commissioners have a significant positive influence on the value of the company.

Board Diversity and Firm Performance: Panel Data Evidence from 12 Selected Commercial Banks in Nigeria

2021 ◽  
Vol 2 (1) ◽  
Author(s):  
Sixtus Cyprian Onyekwere ◽  
Nafisah I. Babangida
Keyword(s):  
Panel Data ◽  
Financial Performance ◽  
Resource Dependence ◽  
Negative Impact ◽  
Positive Impact ◽  
Gender Diversity ◽  
Board Independence ◽  
Board Diversity ◽  
Banking Institutions ◽  
Board Gender Diversity

Motivated by the continuous but inconclusive and ambiguous evidence on the relationship between board diversity and financial performance, this study aimed at providing new evidence that will enhance the state of knowledge by establishing if board diversity affects the financial performance of listed Banking institutions in Nigeria. The key dependent variables of interest were Return on Assets (ROA) and Return on Equity (ROE) and the independent variables of interest were board gender diversity and board independence. The study sampled 12 listed banks from the Nigerian stock exchange and relied on secondary data from the Bloomberg database and the annual reports of the banking institutions. Panel data methodology was used to analyse the data for the period under review (2015-2019). The results of the study indicated that board gender diversity has a significant positive impact on both ROA and ROE of the banking institutions. Conversely, the findings of the study indicated that board independence has a significant negative impact on both ROA and ROE of banking institutions. The findings of this study are related to Agency and Resource dependence theories and will contribute to meaningful policy reforms that can improve corporate governance, especially in the banking industry. The results of the study strongly recommend the need to increase the number of female directors on the boards of banking institutions. The study further recommends ways in which the contributions of both female and independent directors can be promoted in other to benefit from their presence on the board.

Corporate governance and payout policy: evidence from India

2019 ◽  
Vol 19 (5) ◽  
pp. 1117-1132 ◽  
Author(s):  
Monika Rajput ◽  
Shital Jhunjhunwala
Keyword(s):  
Corporate Governance ◽  
Ownership Structure ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Positive Influence ◽  
Family Ownership ◽  
Board Independence ◽  
Dividend Payout ◽  
Content Type ◽  
Significant Positive Influence

Purpose The purpose of this paper is to study the impact of ownership structure and corporate governance on dividend policy in emerging markets, like India. The study also analyses the moderation effects of board independence between ownership and dividend payout. Design/methodology/approach The data set of 1,546 Indian firms over the period of 2006-2017 has been used in this study. Tobit and logistic regression methods has been used. The data used in this study are collected from the Centre for Monitoring Indian Economy (CMIE) Prowess database. The sample firms are listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Findings First, the study finds a significant positive influence of corporate governance on the decision to pay dividend and is an important determinant of the payout decision. Second, the study finds a significant negative relationship of family ownership with dividend payout decisions which indicates that family firms pay lower dividend. Finally, the result from the interaction effect of board independence with family ownership has significant positive influence on dividend policy. Originality/value This is one of the first attempt to show that there is an interaction between independent board and ownership structure. It shows that more independent and non-executive directors in the board of family controlled firms are likely to pay more dividends.

scholarly journals Board Capabilities and the Mediating Roles of Absorptive Capacity on Environmental Social and Governance (ESG) Practices

2019 ◽  
Vol 10 (3) ◽  
pp. 11 ◽  
Author(s):  
Aida Maria Ismail ◽  
Zuria Hajar Mohd Adnan ◽  
Fadzlina Mohd Fahmi ◽  
Faizah Darus ◽  
Colin Clark
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Absorptive Capacity ◽  
Innovation Policy ◽  
Board Independence ◽  
Board Size ◽  
Board Diversity ◽  
Mediating Role ◽  
Good Corporate Governance ◽  
The Individual

Public listed companies in Malaysia have been pressured tremendously to accept the engagement of Environment, Social and Governance (ESG), but the engagement is still low based on previous studies. ESG will enhance company financial performance, image as well as the ability to attract and retain the workplace which contributes to the market value in the economy. This shows that ESG engagement improve company brand image and reputation, increase customer loyalty and sales as well as productivity. Corporate governance is seen to be the key role to ensure that companies engage with ESG practices since it can enhance the value creation and improve financial performance. Even the present investors are bound to look for non-financial performance elements like corporate governance and environmental, social and governance (ESG) practices that the company engaged since it is an evidence of effective corporate governance. Based on today’s global and innovation-driven economy which also include social and environmental matters consisting of welfare distribution and growth, it is said that countries need to be more efficient in finding new ways to enhance the environmental policy promoting greater change and dynamics. Thus, they must find new ways to develop an innovation policy to emphasise the knowledge-driven economy on the capacity to adapt and adopt best practices, create, diffuse and transform innovation and knowledge. The absorptive capacity will recognise the ability of the individual and company in adopting the innovation which play an essential part in determining the characteristics of good corporate governance to ensure best ESG practices in the company. This paper examines the relationship between board capabilities and ESG practices through the mediating role of absorptive capacity. Board size, board diversity and board independent are the board capabilities that the paper investigates. Collection of information and data was from company's listed in FTSE4Good Bursa Malaysia from the year 2012 to 2016. The results from the regression analysis show that ESG practices have a significant relationship with board size, board diversity, board independence and absorptive capacity. On top of that, absorptive capacity is perceived to have influence on board diversity and board independence towards ESG practices. The results provide empirical evidence and guidance in identifying areas of problems in the current policy and amend it for a better policy in promoting sustainability.

scholarly journals Struktur Kepemilikan, Profitabilitas, dan Nilai Perusahaan: Mediasi Kebijakan Deviden

2020 ◽  
Vol 4 (1) ◽  
pp. 1
Author(s):  
Christina Heti Tri Rahmawati
Keyword(s):  
Firm Value ◽  
Quantitative Research ◽  
Stock Exchange ◽  
Institutional Ownership ◽  
Negative Influence ◽  
Positive Influence ◽  
Manufacturing Companies ◽  
Dividend Payout ◽  
Insider Ownership ◽  
Significant Positive Influence

Abstract. This research aims to investigate the influence of insider and institutional ownership, profitability towards firm value through dividend payout ratio as the intervening variable. The research method was quantitative research. The samples employed were the manufacturing companies registered in Indonesia Stock Exchange 2016-2018. The statistic method was analyzed by path analysis. The results of this research showed that insider ownership brought significant negative influence towards the firm value; the profitability brought significant positive influence towards the firm value and the dividend payout ratio brought significant positive influence towards the firm value. The intervening testing results proved the dividend payout did not intervene in the influence of the insider and institutional ownership towards the firm value, and the dividend intervened in the influence of profitability towards the firm value. The research implication for investors includes the drastic increase in profit and benefits. Meanwhile, for companies, they could enhance the insider share ownership and performance to earn optimum profitability and dividend that could boost the firm’s value and grab more investors. Keywords: Insider Ownership; Institutional Ownership; Profitability; Firm Value; Dividend Payout Ratio. Abstrak. Penelitian ini bertujuan menguji pengaruh kepemilikan manajerial, kepemilikan institusional dan profitabilitas terhadap nilai perusahaan melalui kebijakan deviden sebagai variabel mediasi. Metode penelitian yang digunakan adalah penelitian kuantitatif. Sampel yang digunakan adalah perusahaan manufaktur yang terdaftar di Bursa Efek Indonesia tahun 2016-2018. Metode statistik untuk menguji hipotesis menggunakan analisis jalur. Hasil penelitian menunjukkan kepemilikan manajerial berpengaruh negatif signifikan terhadap nilai perusahaan; profitabilitas dan kebijakan deviden berpengaruh positif signifikan terhadap nilai perusahaan serta kebijakan deviden berpengaruh positif signifikan terhadap nilai perusahaan. Sedangkan hasil uji mediasinya membuktikan kebijakan deviden tidak memediasi pengaruh kepemilikan manajerial dan kepemilikan institusional terhadap nilai perusahaan;serta kebijakan deviden memediasi pengaruh profitabilitas terhadap nilai perusahaan. Implikasi penelitian ini bagi investor dapat memilih perusahaan dengan tingkat laba yang tinggi sehingga menerima keuntungan tinggi. Sedangkan bagi perusahaan dapat meningkatkan kepemilikan saham manajerial dankinerja perusahaan agar menghasilkan profitabilitas yang optimal serta dividen yang tinggi, sehingga meningkatkan nilai perusahaan dan menarik investor. Kata kunci: Kepemilikan Manajerial; Kepemilikan Institusional;Profitabilitas; Nilai Perusahaan; Kebijakan Deviden.

scholarly journals The effect of market pricing accrual, foreign ownership, financial distress, and leverage on the integrity of financial statements

2018 ◽  
Vol 63 (217) ◽  
pp. 129-139
Author(s):  
Melinda Malau ◽  
Etty Murwaningsari
Keyword(s):  
Financial Distress ◽  
Stock Exchange ◽  
Financial Statements ◽  
Foreign Ownership ◽  
Negative Influence ◽  
Positive Influence ◽  
Manufacturing Companies ◽  
Market Pricing ◽  
A Company ◽  
Significant Positive Influence

The purpose of this research is to analyse the effect of market pricing accrual, foreign ownership, financial distress, and leverage on the integrity of financial statements, using multiple regression analysis and logistic regression. The research uses 363 samples, comprising the data of 121 manufacturing companies listed on the Indonesia Stock Exchange over three years, from 2013 to 2015. The results show that market pricing accrual has a significant positive influence on the integrity of financial statements, while a company?s leverage has a significant negative influence. Bankruptcy and foreign ownership have no significant effect on financial statements? integrity. Based on the research results, when assessing the integrity of financial statements a company?s stakeholders should pay most attention to market pricing accrual and the company?s leverage. In addition, regulators should produce standards or guidelines governing the company?s remit and responsibilities regarding financial statements.

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