scholarly journals Examining the Link Between Religion and Corporate Governance: Insights From Nigeria

2018 ◽  
Vol 59 (5) ◽  
pp. 956-994 ◽  
Author(s):  
Franklin Nakpodia ◽  
Philip J. Shrives ◽  
M. Karim Sorour
Keyword(s):  
Corporate Governance ◽  
Content Analysis ◽  
Institutional Environment ◽  
Qualitative Content Analysis ◽  
Business Environment ◽  
Research Approach ◽  
Governance System ◽  
Good Corporate Governance ◽  
Corporate Governance System

This article examines whether the degree of religiosity in an institutional environment can stimulate the emergence of a robust corporate governance system. This study utilizes the Nigerian business environment as its context and embraces a qualitative interpretivist research approach. This approach permitted the engagement of a qualitative content analysis (QCA) methodology to generate insights from interviewees. Findings from the study indicate that despite the high religiosity among Nigerians, religion has not stimulated the desired corporate governance system in Nigeria. The primary explanation for this outcome is the presence of rational ordering over religious preferences thus highlighting the fact that religion, as presently understood and practiced by stakeholders, is inconsistent with the principles underpinning good corporate governance.

scholarly journals Quality of corporate governance: Contribution to improving companies performance in Bosnia and Herzegovina

2021 ◽  
Vol 9 (2) ◽  
pp. 19-33
Author(s):  
Slobodan Marin ◽  
Rade Tešić ◽  
Milan Šušić
Keyword(s):  
Corporate Governance ◽  
Bosnia And Herzegovina ◽  
Capital Market ◽  
Business Performance ◽  
Business Environment ◽  
Governance System ◽  
Corporate Governance System ◽  
Business Conditions ◽  
The Capital Market

A quality corporate governance system is a basic prerequisite for a sustainable growth economy, more easily increasing the efficiency of the economic system and guaranteeing access to external sources of capital. The level of quality of corporate governance can be defined as the degree of fulfillment of set standards of corporate governance defined at the international and national institutional level. In the new, modern business conditions, with strong dynamic changes in the social and business environment, modern corporate companies, ie their management bodies, are taking on new characteristics, adapting to new requirements and challenges. In this sense, the new demanding business conditions require continuous improvement of corporate governance potential. Based on previous theoretical and empirical knowledge, Bosnia and Herzegovina has the characteristics of a closed corporate governance system in both entities, so, as a basis for developing models for measuring the level of corporate governance, selected models that measure corporate governance in countries with typical closed corporate governance systems. A significant number of studies show that corporations that achieve higher standards and better corporate governance practices also have better business performance results and thus greater value in the capital market. This means that corporations with a higher level of corporate governance also have better financial operating results, easier access to financial capital, and greater value in the capital market. The main purpose of the research is to determine the level of influence of the quality of corporate governance on business performance, ie to determine whether corporations that had good corporate governance had higher business liquidity and vice versa. The main goal of the research is to establish the link and relationship between quality and corporate performance management indicators of the corporation's business.

CORPORATE GOVERNANCE IN ESTABLISHED JAPANESE FIRMS: WILL THE OLYMPUS SCANDAL HAPPEN AGAIN?

2013 ◽  
Vol 21 (04) ◽  
pp. 421-446 ◽  
Author(s):  
KISHITA TETSUHIRO
Keyword(s):  
Corporate Governance ◽  
Business Environment ◽  
Management Style ◽  
Governance System ◽  
Corporate Executives ◽  
Japanese Firms ◽  
Corporate Governance System ◽  
New Business ◽  
Modular Technology ◽  
The 1960S

After the Second World War, manufacturing establishments in Japan experienced vigorous growth from the 1960s through 1970s, and they achieved international success in the 1980s, during which they developed their own way of running firms, called Japanese style management, and a unique corporate governance system called the insider-type of corporate governance. Under this system, the main banks monitor and check the behaviors of corporate executives, who have usually had a long career in the companies. The Japanese style of management and the insider-type of corporate governance system stopped working well in the 1990s, however, when Japanese businesses experienced the collapse of the asset-inflated economy in the domestic market, began to receive a large number of foreign investors in their stock market, and found that they had to be involved in global competition. The country, therefore, from the late 1990s, shifted its strategies, restructured organizations, and tried to change its management style and corporate governance system to ones better fitted to the new business environment. A key to the Japanese manufacturers' resurgence is an entrepreneurial challenge to promote innovation in modular-technology-core industries, as well as maintenance and strengthening of their traditional competitive advantage in integral-technology-core industries. The challenge imperatively requires a more transparent and nimble governance system for global financing and agile decision making. However, despite efforts to restructure, the core structure of the traditional governance system still remains intact, as was demonstrated by the Olympus scandal of 2011. The reason that large Japanese firms cannot change their creaky governance system is not because it still shows efficiency or effectiveness, but because Japanese business society still holds to orthodox views regarding the large, established companies. As long as the people concerned hold to orthodox views of large traditional firms, big banks, and bureaucracy, the traditional insider-type of corporate governance will survive, and another corporate scandal is liable to happen in the near future.

Development of Corporate Governance Standards in UK: The Higgs Report

2004 ◽  
pp. 118-128
Author(s):  
M. Gracheva
Keyword(s):  
Corporate Governance ◽  
Boards Of Directors ◽  
Developed Countries ◽  
Executive Directors ◽  
Governance System ◽  
Financial Reports ◽  
Good Corporate Governance ◽  
Corporate Governance System ◽  
Regulatory Bodies ◽  
In The Beginning

In 2001-2002 numerous scandals have occurred in developed countries in connection with financial reports' distortions and breaches of good corporate governance principles. As a result, regulatory bodies began to study the role of boards of directors in preventing such cases, putting an emphasis on the duties and powers of non-executive directors. Serious steps have been taken in United Kingdom, where the first corporate governance standards were established in the beginning of the 1990s. The article analyses the document published in January 2003 — the review of the role and effectiveness of non-executive directors prepared by D. Higgs team. The author considers the peculiarities of the British corporate governance system and examines most important provisions of the Higgs report.

scholarly journals Augmenting corporate governance through system dynamics

2015 ◽  
Vol 13 (1) ◽  
pp. 1063-10070
Author(s):  
Mridula Mridula ◽  
Kuldeep Kumar
Keyword(s):  
Corporate Governance ◽  
System Dynamics ◽  
System Dynamics Model ◽  
Dynamics Model ◽  
Governance System ◽  
Good Corporate Governance ◽  
Corporate Governance System ◽  
Efficiency And Effectiveness ◽  
Financial Issue ◽  
Holistic Manner

The paper aims to augment good corporate governance as a whole with the efficiency and effectiveness of system dynamics via a system dynamics model. The majority of study of corporate governance focus on financial issue, ownership, agency theory etc. rather than analyzing the relation of all aspects associated to corporate governance system as a whole. This study aims to address this gap by focusing on corporate governance in a holistic manner. The value is determined as two-fold: i) It is possible to understand the importance of system dynamics methodology; and ii) It can help the organization to quantify corporate governance for development of organization in holistic manner.

scholarly journals Financial reporting, corporate communication and governance

2003 ◽  
Vol 1 (2) ◽  
pp. 31-37 ◽  
Author(s):  
Andrea Melis
Keyword(s):  
Corporate Governance ◽  
Financial Reporting ◽  
Corporate Communication ◽  
Governance System ◽  
Good Corporate Governance ◽  
Corporate Governance System ◽  
Positive Perspective ◽  
Anglo American ◽  
Highly Correlated

This paper describes the issues of financial reporting and corporate communication in connection with corporate governance. The analysis is based on the studies conducted in the Anglo-American and the European academic literature both from a normative and a positive perspective. It is discussed why accounting standards are not able by themselves to avoid corporate “miscommunication”, and how a good corporate governance system is a sine qua non to improve the quality of corporate communication and financial reporting. The analysis also shows how the effectiveness of the systems of financial reporting and corporate governance seems to be highly correlated.

A Critical Assessment of Pertinent Locus Standi Features of the Derivative Remedy under Zimbabwe's New Companies and Other Business Entities Act

2022 ◽  
pp. 1-24
Author(s):  
Friedrich Hamadziripi ◽  
Patrick C Osode
Keyword(s):  
Corporate Governance ◽  
Critical Assessment ◽  
Governance System ◽  
Good Corporate Governance ◽  
Locus Standi ◽  
Corporate Governance System ◽  
Governance Practices ◽  
Legislative Amendments ◽  
Business Entities ◽  
The One

Abstract The importance and contribution of derivative litigation to the effectiveness and credibility of a jurisdiction's corporate governance system is indisputable. There is a positive correlation between good corporate governance practices, which include shareholders’ rights, and investors’ return on their investments. On the one hand, an overly pro-shareholder derivative scheme is vulnerable to abuse and results in unnecessary interference with company management. This may, in turn, discourage directors from entrepreneurial risk-taking and undermine enterprise efficiency. On the other hand, a complex and ineffective system of derivative litigation protects errant directors and decreases investor confidence. This article is a critical assessment of Zimbabwe's recently adopted statutory derivative remedy. The analysis focuses on five locus standi-related aspects of the new statutory derivative regime. The article highlights some major weaknesses within Zimbabwe's statutory remedy and proposes pertinent legislative amendments.

Corporate Governance in Malaysia: Issues and Challenges (Isu dan Cabaran Tadbir Urus Korporat di Malaysia)

2019 ◽  
Vol 16 (2) ◽  
pp. 232-253
Author(s):  
Nina Nurasyekin Zulkefli ◽  
SM Abdul Quddus
Keyword(s):  
Corporate Governance ◽  
Financial Crisis ◽  
Good Practice ◽  
Asian Financial Crisis ◽  
Governance System ◽  
Good Corporate Governance ◽  
Corporate Governance System ◽  
Governance Practices ◽  
Governance Institutions ◽  
Code Of Corporate Governance

Corporate governance is a set of structural process that includes the actions of directing and controlling by the authorized board of directors. In Malaysia, corporate governance is directly under the involvement of the Ministry of Finance, Bursa Malaysia, and Securities Commissions (SC) and Registrar of Company. A good reform of corporate governance in Malaysia is essential to enhance the quality of corporate governance practices after the Asian Financial Crisis 1997. The statistic shows that the low number of Malaysian companies adhered to good corporate governance practices. This poses a question of the extent to what issues and challenges faced by the Malaysian companies reluctantly to adopt a good practice of corporate governance. Hence, the Malaysian government has initiatively introduced Malaysia Code of Corporate Governance (MCCG) as a new code and rules for solving the problems of corporate governance. This study is important to ensure better management of corporate governance of companies in Malaysia, accountability, integrity, and transparency, thereby ensuring the survival of Malaysian corporate governance institutions around the world. The paper uses a qualitative approach. The findings from this study highlight that the introduction of MCCG is tantamount to solve the underpinning problems of the corporate governance system. Keywords: Corporate governance, Malaysia, MCCG, Asian Financial Crisis. Abstrak Tadbir urus korporat adalah satu set proses struktur yang merangkumi sistem penyeliaan oleh lembaga pengarah yang diberi kuasa. Di Malaysia, tadbir urus korporat adalah di bawah penglibatan Kementerian Kewangan, Bursa Malaysia, dan Suruhanjaya Sekuriti (SC) dan Suruhanjaya Syarikat Malaysia. Pembaharuan tadbir urus korporat yang baik di Malaysia adalah penting untuk meningkatkan kualiti amalan tadbir urus korporat selepas Krisis Kewangan Asia 1997. Statistik menunjukkan bahawa bilangan syarikat Malaysia yang rendah dalam mematuhi amalan tadbir urus korporat yang baik. Ini menimbulkan persoalan sejauh mana isu dan cabaran yang dihadapi oleh syarikat-syarikat di Malaysia yang enggan mengamalkan amalan tadbir urus korporat yang baik. Justeru, kerajaan Malaysia telah memperkenalkan Kod Tadbir Urus Korporat Malaysia (MCCG) sebagai kod baru dan peraturan untuk menyelesaikan masalah tadbir urus korporat. Kajian ini penting untuk memastikan pengurusan tadbir urus korporat yang lebih baik di Malaysia, akauntabiliti, integriti dan ketelusan, serta seterusnya memastikan kelangsungan institusi tadbir korporat Malaysia di seluruh dunia. Kaedah kajian adalah menggunakan pendekatan kualitatif. Dapatan kajian ini menunjukkan bahawa pengenalan MCCG adalah penting untuk menyelesaikan masalah asas sistem tadbir urus korporat. Kata Kunci: Tadbir Urus Korporat, Malaysia, MCCG, Krisis Kewangan Asia.  

scholarly journals Corporate Governance and Effectiveness of a Diversified Company: Russian Experience 

2016 ◽  
Vol 10 (3) ◽  
pp. 56-70
Author(s):  
Varvara Nazarova ◽  
Anzhelika Kolkina
Keyword(s):  
Corporate Governance ◽  
Positive Impact ◽  
Practical Importance ◽  
Business Environment ◽  
Governance System ◽  
Diversification Strategy ◽  
Corporate Governance System ◽  
Governance Index ◽  
The Impact ◽  
A Company

Varvara Vadimovna Nazarova - SPbShEiM, St. Petersburg. E-mail: [email protected] Anzhelika Vladislavovna Kolkina - HSE - St. Petersburg. Email: [email protected] Researchers come to controversial conclusions regarding the impact of corporate diversification on the company›s value and performance. The diversification strategy itself has been subject to strong criticism in the past 20–30 years. There is an opinion, however, that in emerging markets diversification has a positive impact on companies› value and effectiveness. Despite the existing advantages of diversified companies, planning and budgeting various business areas not related to each other is a considerably difficult task that results in the agency problem between managers and stakeholders. This leads to corporate governance problems in companies that use the diversification strategy. Studying corporate governance in emerging countries is especially important, as they need to adjust their corporate governance standards to developed markets. The theory of corporate governance is now developing rapidly, especially in Russia, where researchers did not often turn to this subject. In the last decade, this issue has most often become a subject of research in China and India. The issue of corporate governance in Russia is relevant today due to the fact that it is a mechanism of managing a company which makes it possible to balance the interests of managers and stakeholders. Moreover, companies are interested in attracting foreign investors, who pay significant attention to the level of current corporate governance. However, unlike in developed countries, corporate governance in developing capital markets is only being introduced. Today a lot of Russian companies are engaged in the optimisation of corporate governance largely to build a good reputation and do not pay enough attention to corporate governance principles, which a company should follow. Thus, today the low level of corporate governance is a problem in Russian companies, as the companies› owners do not understand its significance. Moreover, the Russian business environment is rather specific and requires a certain approach in order to form an optimal corporate governance system. As far as research in this field is concerned, a positive impact of corporate governance on companies› effectiveness lacks empirical proof. A number of studies have not found a statistically significant positive correlation between the level of corporate governance in Russian companies and their effectiveness. With regard to the stated issue, the purpose of this paper is to discover to what extent corporate governance has an impact on the effectiveness of Russian diversified companies. Such companies are a subject of particular interest, as not only developed and emerging economies have different features of corporate governance, but within one country there are also companies whose development strategy and industry have a significant impact on the optimal corporate governance structure. The study suggests the following hypothesis: the corporate governance system has a positive impact on the effectiveness of Russian diversified companies.The study has been conducted on a sample of Russian diversified companies with an original corporate governance index created for this purpose, which had never been done previously.The study has a practical importance, because Russian diversified companies can use the corporate governance index devised during the study to assess their corporate governance level. Such procedure will make it possible to uncover the existing flaws and improve the corporate governance system in Russian companies. In their turn, the suggested methods and the resulting models of the correlation between market capitalisation, on the one hand, and fundamental factors and various factors of corporate governance, on the other, can be used in strategic planning and managing the value of diversified companies. In the paper, we also determine the impact of corporate governance on companies› performance, which enables us to suggest recommendations on enhancing the governance system in Russian companies.

scholarly journals Some Aspects of the Quality of Corporate Governance in Digital Economy

2019 ◽  
Vol 62 ◽  
pp. 04002 ◽  
Author(s):  
A.A. Polidi ◽  
Z.O. Goukasyan ◽  
I.A. Maslova ◽  
R.V. Fedorenko
Keyword(s):  
Corporate Governance ◽  
Business Environment ◽  
Digital Economy ◽  
Governance System ◽  
Economic Interests ◽  
Factors Affecting ◽  
Corporate Governance System ◽  
Modern Business ◽  
Traditional Economy

The relevance of this article is due to technological changes that are constantly introducing new characteristics, both in the global economic system and in the economy of individual fields of activity. The newest digital economy is significantly different from the traditional economy. A modern business environment requires constant adaptation of an entrepreneur to dynamically changing conditions at a strategic and tactical level. The purpose of the article is to study aspects of the quality of corporate governance, taking into account the challenges of the digital economy. The objectives of the study are: to identify the key elements of corporate governance and environmental factors affecting them; to determine the conditions and factors of the formation of economic interests in the corporate governance system for the purpose of improving the quality of corporate governance in the digital economy.

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