Influence of Shareholders’ Activism and Firm-level Variables on the Corporate Governance Quality in India

2016 ◽  
Vol 9 (2) ◽  
pp. 122-147 ◽  
Author(s):  
Varun Bhandari ◽  
Ashima Arora
Keyword(s):  
Corporate Governance ◽  
Financial Crisis ◽  
Empirical Work ◽  
Shareholder Activism ◽  
Firm Level ◽  
Factors Influencing ◽  
Quality Of Governance ◽  
Governance Quality ◽  
Corporate Governance Quality

Corporate governance (CG) gained widespread prominence as a medium for boosting corporate performance especially after the financial crisis of 2008. With limited empirical work on factors influencing the CG quality (CGQ), this article focuses on the construction of the CG Index (CGI) by considering a total of 64 attributes encapsulated in five sub-indices followed by the investigation of effect of shareholder activism and firm-level variables on it. The estimations are based on companies listed in S&P CNX NIFTY Index from the financial year 2008–2013. The examination of results relays that both shareholder activism and firm-level variables have a significant impact on the CGQ of the firms. The significant impact of Disclosure and Board Index on the performance of firms emphasised the importance of disclosure norms in driving the performance by improving investor perceptions through higher transparency. And active board contributes in dispelling agency and managerial issues assisting in improving firm’s value. Our findings imply that shareholder activism and firm-level variables help in bolstering the quality of CG. Large concentrated holdings limit the power in few hands that deter the use of effective shareholder activism and thus should be reduced to enhance the quality of governance. The policymakers and regulators are needed to pressurise institutional investors for active participation in the companies’ routine decisions to increase vigilance regarding CG issues.

Corporate Governance in Comparative Perspective

2020 ◽  
pp. 1-9
Author(s):  
Helmut K. Anheier ◽  
Christoph M. Abels
Keyword(s):  
Corporate Governance ◽  
Financial Crisis ◽  
Social Enterprises ◽  
Broad Sense ◽  
Comparative Perspective ◽  
Comparative Approach ◽  
International Organisations ◽  
Legal Foundation ◽  
Quality Of Governance

In a broad sense, corporate governance describes the mechanisms, relations, and processes through which the interests of a corporation’s stakeholders are balanced. Yet, corporate governance is not limited to companies but can be found in international organisations, philanthropic foundations, and social enterprises, among other organisational forms. This chapter outlines the volume’s comparative approach that highlights the diversity of corporate governance across different forms and fields. Starting with the financial crisis, the chapter discusses the legal foundation of corporate governance regimes and introduces the relevant laws and codes as well as prominent indicators to measure the quality of governance in corporations. Afterwards, the book’s chapters are briefly introduced and connected to the volume’s overarching interest.

scholarly journals Corporate governance of German growth companies. Empirical analysis of the corporate governance quality and the structure of supervisory boards of companies listed on TEC-DAX

2006 ◽  
Vol 3 (3) ◽  
pp. 128-137 ◽  
Author(s):  
Alexander Bassen ◽  
Maik Kleinschmidt ◽  
Christine Zöllner
Keyword(s):  
Corporate Governance ◽  
Empirical Analysis ◽  
Supervisory Board ◽  
High Importance ◽  
Supervisory Boards ◽  
Governance Quality ◽  
Corporate Governance Quality ◽  
High Level ◽  
Agency Risk

This article analyses the importance of corporate governance for growth companies, derives specific requirements for them and evaluates the corporate governance quality for companies listed on TecDax. Growth companies’ characteristics imply a comparatively high importance of corporate governance due to a high level of business and agency risk. Several corporate governance elements are therefore particularly important for growth companies. Overall, the empirical results imply a high conformity of the Tec-Dax companies with the GCGC criteria with some exceptions for specific companies and criteria. But the analysis of the quality of their supervisory boards delivers a differentiated result as in some of the analysed companies the effectiveness of the supervisory board is questionable.

scholarly journals THE ROLE OF CORPORATE SOCIAL RESPONSIBILITY AS MEDIATION IN INDONESIA

2019 ◽  
Vol 2 (1) ◽  
pp. 1-8
Author(s):  
Rintan Nuzul Ainy ◽  
Khusnul Hidayah
Keyword(s):  
Corporate Governance ◽  
Positive Impact ◽  
Company Performance ◽  
Governance Quality ◽  
Corporate Governance Quality ◽  
Indirect Relationship ◽  
Corporate Social ◽  
Relationship Of

This   study   examines   the  direct   and   indirect   relationships   between   the  quality   of   corporate governance   and  company   performance  with   CSR   as   mediation.  A better  quality   of   corporate governance  means the more  fulfilled  of  stakeholder’s  interest so that it  will  give  positive  impact on  the company  performance. Data  of  corporate governance  quality and CSR  were obtained  by  carrying  out  a content analysis on  the company’s  annual report  for  2016.  The  analysis was done  based on  a template developed by  the Forum  for  Corporate  Governance  in  Indonesia  (FCGI)  and  GRI Index.  The  results show that companies that disclose information about CSR activities have better performance than those that do  not perform  it.  Such  information  is considered  as a sign  that the  company  has fulfilled  all stakeholders’ interests. Furthermore, the results also show that corporate governance quality does not affect the level of company performance. Nevertheless, this research cannot prove the indirect relationship  of  CSR on  the interaction  between  corporate governance  and company  performance in  Indonesia.

scholarly journals A Short Comparative Study of Corporate Governance in European National Legal Systems

2020 ◽  
Vol 10 ◽  
pp. 207-216
Author(s):  
Ovidiu Ioan Dumitru ◽  
Nicolae Marius Vavura
Keyword(s):  
Corporate Governance ◽  
Financial Crisis ◽  
Legal Systems ◽  
Negative Effects ◽  
The Poor ◽  
Corporate Governance Codes ◽  
Governance Quality ◽  
Recent Financial Crisis ◽  
Corporate Governance Quality ◽  
And Control

Corporate Governance has developed immensely in the last decades mainly due to the negative effects on shareholders’s of management decisions leading to a continuous conflict to be solved by the policymakers and academics. After the publication of the Cadbury Report, we noticed an increase interest in drafting corporate governance codes, the American and European legislators being the most active, but recent financial crisis reduced confidence in the results of corporate governance quality, some authors asserting even that the poor implementation of the policies in the area have leaded to the crisis. This paper wants to show the diversity of corporate governance standards present today in different national legal systems, by comparing its main elements like protection of shareholders and stakeholders’ interests,  board structures and operations and control, oversight and reporting.  

scholarly journals Corporate governance and shareholder value in listed firms: An empirical analysis in five countries (France, Italy, Japan, UK, USA)

2013 ◽  
Vol 10 (3) ◽  
pp. 36-50 ◽  
Author(s):  
Barbara Monda ◽  
Marco Giorgino
Keyword(s):  
Corporate Governance ◽  
Firm Value ◽  
One Dimension ◽  
Four Dimensions ◽  
Listed Firms ◽  
Governance Systems ◽  
Governance Quality ◽  
Corporate Governance Quality ◽  
The Relationship

In this paper, we design a multi-dimensional index to measure the quality of Corporate Governance systems adopted by firms and use it to investigate the correlation between Corporate Governance quality and firm value. Unlike most studies that examine the relationship between only one dimension of Governance and firm value, we present a complex index (CGI) composed of 39 variables referable to four dimensions: Board, Remuneration, Shareholder Rights and Disclosure. By analysing a sample of 100 large companies listed on the main stock markets in five different countries over three years (2009-2011), we confirm the widespread hypothesis of the existence of a positive and statistically significant relationship between Corporate Governance, as measured by a subset of 12 variables, and firm value.

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