scholarly journals Corporate Governance in Ukrainian Firms: Multiple Model Selections, Their Current Functioning, and Potential Future Problems

2017 ◽  
Vol 42 (4) ◽  
pp. 364-408
Author(s):  
Roman Syvyy
Keyword(s):  
Corporate Governance ◽  
Supervisory Board ◽  
Corporate Law ◽  
Modern World ◽  
Board Structure ◽  
Multiple Model ◽  
Management Board ◽  
Tier System ◽  
Governance Practices ◽  
The Impact

This article explores corporate governance in Ukrainian firms in order to show the parallel application of multiple models of corporate governance within the same business and cultural framework. Ukrainian corporate law is based on a two-tier system, according to which joint-stock companies are governed by two boards: a management board and a supervisory board. Nevertheless, those Ukrainian firms that aim to raise capital on international stock markets and are ready to go public tend to use the uk principles-based model. Since a unitary board structure in public companies is not recognized by Ukrainian law, these firms have to migrate from Ukraine, setting up their centers of corporate governance in foreign jurisdictions. At the same time, recent amendments to the Law on Joint-Stock Companies aimed at enhancing the protection of investors’ rights in Ukraine significantly expanded the legal requirements for corporate governance in public joint-stock companies. The introduction of special statutory obligations along with significantly toughened listing requirements for corporate governance in public joint-stock companies demonstrates the impact of the us rules-based model on Ukrainian corporate governance regulations. Therefore, the governance practices of Ukrainian firms and recent changes in Ukrainian corporate law are evidence of the convergence of corporate governance models in the modern world.

scholarly journals The two-tier board system and underpricing of initial public offerings: Evidence from Austria

2014 ◽  
Vol 12 (1) ◽  
pp. 352-362
Author(s):  
Lalith P. Samarakoon ◽  
Palani-Rajan Kadapakkam
Keyword(s):  
Corporate Governance ◽  
Agency Theory ◽  
Initial Public Offerings ◽  
Stock Exchange ◽  
Supervisory Board ◽  
Board Structure ◽  
Ipo Underpricing ◽  
Public Offerings ◽  
Management Board ◽  
Board System

We study the relation between initial IPO underpricing and two-tier board structure in the Vienna Stock Exchange of Austria, where a two-tier board is mandatory for listed companies. The board ratio, defined as the size of the supervisory board to the management board, is used to capture the effect of two-tiered board on underpricing. The results show that the board ratio is negatively related with underpricing, consistent with the agency theory which predicts that more effective monitoring implied in a relatively larger supervisory board will lead to lower agency costs, and thus lower underpricing. The results are robust to the inclusion of control variables and suggest that firms seeking to raise external capital will be helped by adopting strong corporate governance standards.

scholarly journals Corporate Governance Mechanisms and Firm’s Performance: Evidence from Jordan

2020 ◽  
Vol 9 (2) ◽  
pp. 11
Author(s):  
Mohammad Abdullah Fayad Altawalbeh
Keyword(s):  
Corporate Governance ◽  
Stock Exchange ◽  
Board Members ◽  
Board Structure ◽  
Government Ownership ◽  
Governance Mechanisms ◽  
Financial Reports ◽  
Corporate Governance Mechanisms ◽  
Governance Practices ◽  
The Impact

The purpose of this study is to investigate the effect of corporate governance mechanisms on the firm’s performance. Corporate governance practices were divided into two groups; board structure and ownership structure. The sample of the study consists of 60 companies from industrial and service sectors that are listed on Amman stock exchange (ASE). Data was gathered manually through the annual financial reports for the period from 2012-2017 results in 366 year-observation. Stata statistical software was used to test the study hypotheses. The results revealed that board meetings frequency and government ownership positively and significantly impact the firm’s performance, these results suggest that board meetings frequency is considered an indicator of the board effectiveness that enhances decision making quality and thus the firm performance, the results suggest that government ownership is providing a helping hand that improves the firm’s performance. The findings also showed that board independence negatively and significantly impact the firm’s performance, this result suggests that independent board members do not guarantee to improve the performance of a firm, and it stays the firm’s responsibility to choose independent board members who are able to exercise effective oversight function for the purpose of enhancing the performance of a firm. This study contributes to the literature by providing empirical evidence from developing countries about the impact of corporate governance measures and practices on firms’ performance.

scholarly journals The Moderating Role of Corporate Governance on the Relationship between Capital Structure and Financial Performance

2017 ◽  
Vol 6 (1) ◽  
pp. 89-105
Author(s):  
Muhammad Iqbal ◽  
Faisal Javed
Keyword(s):  
Corporate Governance ◽  
Capital Structure ◽  
Financial Performance ◽  
Optimal Level ◽  
Equity Capital ◽  
Board Structure ◽  
Governance Mechanism ◽  
Governance Practices ◽  
The Impact ◽  
The Relationship

The key purpose of this research paper is to explore the moderating effect of Corporate Governance on the relationship between accounting base financial performance i.e. ROA, and ROE and Capital Structure of 173 Manufacturing firms listed in KSE of Pakistan for the period of 2009 to 2014. In this study multiple regression method is used under fixed effect regression model approach on panel data. The empirical results show that the inclusion of Corporate Governance Index (CGI) as moderating variable has influenced the interaction between Capital Structure and Financial Performance which was positively significant. The result is generally found that the most of Pakistani manufacturing listed firms pursue good corporate governance mechanism and use good and optimal level of Capital Mix to get the better and high financial performance. Furthermore, the corporate governance sub-indices i.e. board structure (BOD-I) and transparency & disclosure (DISC-III) both also have positive and statistically significant association with both firms performance variables: ROA and ROE. Moreover, the ownership structure sub-index (OWS-II) has not significant influence on financial performance. In last, the capital structure also has positive relationship with financial performance, interestingly about 70 per cent of Capital is financed by Equity capital and the Debt capital signifies 30 per cent only. The core significance of this paper is to investigate the impact of Corporate Governance practices on financial decisions from the Pakistani perspective.

scholarly journals Determinants of executive board remuneration new insights from Germany

2014 ◽  
Vol 11 (4) ◽  
pp. 96-113 ◽  
Author(s):  
Patrick Velte ◽  
Marc Eulerich
Keyword(s):  
Corporate Governance ◽  
Positive Impact ◽  
Supervisory Board ◽  
Multivariate Regression Analysis ◽  
Listed Companies ◽  
Company Performance ◽  
Related Factors ◽  
Management Board ◽  
Board Compensation ◽  
The Impact

Board remuneration in German listed companies becomes more and more subject of public and political discussion, concerning the presumed lack of transparency and too short-term orientation. Besides the increasing regulatory activity, the arrangement of board compensation constitutes a focal economic issue of current empirical corporate governance research. The purpose of our analysis is to identify factors determining the amount and the structure of board compensation in Germany. Our study of 128 German listed companies for the business year 2011 investigates the impact of company-, performance and corporate governance-related factors on board remuneration by means of a multivariate-regression analysis. The analysis indicates that company size has a positive impact and leverage a negative on management board compensation. Furthermore, ROE and return on total capital, as indicators for performance-related variables, both have a positive impact on the average level of management remuneration. However, the corporate governance-related characteristics as ownership concentration and size of the supervisory board have no significant impact on management board remuneration.

Corporate Governance Practices and Firm Performance in Emerging Markets: Empirical Insights from India and Gulf Countries

2021 ◽  
pp. 097226292110257
Author(s):  
Waleed M. Al-ahdal ◽  
Faozi A. Almaqtari ◽  
Mosab I. Tabash ◽  
Abdulwahid Abdullah Hashed ◽  
Ali T. Yahya
Keyword(s):  
Corporate Governance ◽  
Positive Impact ◽  
Emerging Market ◽  
Secondary Data ◽  
Listed Companies ◽  
Annual Reports ◽  
Board Structure ◽  
Gulf Countries ◽  
Governance Practices ◽  
The Impact

The purpose of this article is to analyse the impact of corporate governance practices on the performance of listed firms from countries like India and the Gulf countries. This research study relies on secondary data collected from annual reports of 100 companies covering 8 years, from 2010 to 2017, using manual content analysis. Fifty non-financial listed companies from each emerging market were selected; the selection is based on the market capitalization. Findings from countries’ dummy indicate that Indian companies perform better in corporate governance practices than Gulf countries. Moreover, corporate governance practices negatively impact Indian and Gulf countries’ firms’ performance measured by return on assets (ROA), except for governance effectiveness (GE) that has a positive impact. In contrast, corporate governance measured by board structure (BS) is negatively affected by the performance of Indian and Gulf countries’ listed companies measured by Tobin’s Q (TQ), whereas transparency and disclosure (TD), leverage (LEV) and GE have a positive impact. The results have implications for managers and policyholders to understand the corporate governance practices and their relationships with performance. Based on the best knowledge of the authors, this is one of the first studies that addresses the comparison between India and Gulf Cooperation Council (GCC) countries.

Do compositions of board and audit committee improve financial disclosures?

2017 ◽  
Vol 25 (2) ◽  
pp. 251-269 ◽  
Author(s):  
Arunima Haldar ◽  
Mehul Raithatha
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Emerging Market ◽  
Financial Disclosure ◽  
Board Structure ◽  
Content Type ◽  
Governance Practices ◽  
Financial Disclosures ◽  
The Impact

Purpose This paper aims to examine the impact of corporate governance practices on the level of financial disclosures made by the Indian firms. This assumes importance in the context of the role of financial disclosures in addressing the agency problem. Design/methodology/approach Financial disclosure score is computed by considering disclosures provided by the generally accepted accounting principles and is the dependent variable. The independent variable – corporate governance score – is an index comprising internal governance mechanisms. The authors empirically examine the impact of corporate governance practices on financial disclosure using multiple regression model for 200 large listed Indian firms. Findings The study suggests that quality of governance practices significantly improves financial disclosure practices of the firm. Particularly, the composition of the audit committee is effective in improving disclosures. Practical implications The finding has implications for policy makers and practitioners. It will help investors, lenders, and other stakeholders to assess firms’ financial disclosure quality. In addition, the findings, suggest the influence of governance practices on disclosure, might help in the formulation of appropriate policies about board structure and audit function. It is also a call to investors to emphasize on governance quality of the investing firms. Originality/value The study builds a case for an urgent intervention for improving the existing governance standards to advance the quality of financial disclosure in an emerging market context.

The Limitations of the Management Board's Directive Powers in German Stock Corporations

2010 ◽  
Vol 11 (5) ◽  
pp. 493-512 ◽  
Author(s):  
Lars Böttcher ◽  
Sebastian Blasche
Keyword(s):  
Supervisory Board ◽  
Organizational Form ◽  
Corporate Law ◽  
Board Structure ◽  
Management Board ◽  
German Stock ◽  
Stock Corporation ◽  
The U.S

The limitations of the management board's directive powers in German Stock Corporations are an important issue in German Corporate law. The German Stock Corporation or Aktiengesellschaft (“AG”) is the corporate organizational form most directly comparable to the publicly held corporation in the U.S. It is regulated by the German Stock Corporation Act (AktG). The defining feature of the AG is a two-tier board structure containing both a management board (Vorstand), which is in charge of managing the corporation, and a supervisory board (Aufsichtsrat), which is elected by the shareholders' meeting (Hauptversammlung) and which appoints and supervises the management board. The two boards are completely separate from each other, no overlap in membership is permitted.

Relationship between Code of Corporate Governance and Corporate Financial Performance (An Empirical Study of Food Companies Listed on KSE)

GIS Business ◽  
2017 ◽  
Vol 12 (4) ◽  
pp. 01-09
Author(s):  
Asma Rafique Chughtai ◽  
Afifa Naseer ◽  
Asma Hassan
Keyword(s):  
Corporate Governance ◽  
Stock Exchange ◽  
Securities And Exchange Commission ◽  
Executive Directors ◽  
Agency Conflicts ◽  
Cross Sectional ◽  
Return On Equity ◽  
Governance Practices ◽  
Code Of Corporate Governance ◽  
The Impact

The crucial role that implementation of Code of Corporate Governance plays on protecting the rights of minorities, shareholders, local as well as foreign investors cannot be denied. Companies all over the world are required to implement their respective Code of Corporate Governance for avoiding agency conflicts between companies management and stakeholders and for assuring transparency in accountability. This paper aims at exploring the impact of implementation of corporate governance practices (designed by Securities and Exchange Commission of Pakistan) have on the financial position of companies. For explanatory variables of the study, composition of the board as per the Code of Corporate Governance that comprises of presence of independent, executive and non-executive directors has been taken into consideration. Return on equity has been taken as an indicator of firms profitability i.e. the dependent variable. For this study, companies listed on food producing sector of Karachi Stock Exchange have been screened for excogitation of the relationship. It is an empirical research based on nine years data from 2007–2015. Using Hausman Test for selecting the data analysis technique between Fixed or Random, Fixed Cross Sectional Panel Analysis has been used for analysis of the data collected. Findings indicate that presence of independent, executive and non-executive directors as per the code requirements levies a significant impact on the profitability of companies indicated by return on equity. It is, thus concluded that companies should ensure compliance with code of governance practices to reduce not only the agency issues but also to increase their profitability.

Does gender diversity in supervisory boards affect gender diversity in management boards in Germany? An empirical analysis

2021 ◽  
pp. 239700222199714
Author(s):  
Dennis Fleischer
Keyword(s):  
Fixed Effects ◽  
Structural Equation ◽  
Gender Diversity ◽  
Supervisory Board ◽  
Board Members ◽  
Governance System ◽  
Management Board ◽  
Supervisory Boards ◽  
Gender Quota ◽  
The Impact

Social aspects like gender diversity in the boardroom are becoming increasingly relevant and are a popular topic of public debate in the context of gender equality in business. However, there is little clarity about the potential spill-over effects of gender diversity. Both theory and empirical results have led to ambiguous conclusions with respect to the effect of gender diversity in the supervisory board on gender diversity in the management board. In addition, it is not clear whether the German gender quota legislation positively affects this relationship. This study analyses whether gender diversity in the supervisory board supports the gender diversity of the management board, and whether this relationship is affected by the gender quota legislation, focusing on the unique case of Germany. To cope with endogeneity concerns, this study employs a cross-lagged panel model with fixed effects using maximum likelihood structural equation modelling. The results of the analysis of the impact of the number of female supervisory board members on the number of female management board members do not support the view of positive spill-over effects of gender diversity in the environment of the German two-tier corporate governance system. Furthermore, this study finds no evidence of an effect of the German gender quota on this relationship. JEL Codes G38, M12, M14, M51

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