scholarly journals Coupling compliance with values

2014 ◽  
Author(s):  
Μαρία Φωτάκη
Keyword(s):  
Corporate Governance ◽  
Shared Values ◽  
Policy Implications ◽  
Informal Governance ◽  
Cross Sectional ◽  
Listed Firms ◽  
Good Corporate Governance ◽  
Governance Model ◽  
Governance Practices ◽  
Human Side

This dissertation aspires to contribute to a better understanding of the components of good corporate governance. The definition as well as the measurement of sound corporate governance has been an area of intense inquiry since the inception of corporate governance as the principal-agent problem between the owners and the managers of the widely-held corporation by Fama and Jensen in the 1980’s. Up to now the majority of research has attempted to measure good corporate governance using compliance-based approaches. However, a credible link between formal corporate governance controls and firm performance has not yet been established. Furthermore, the financial crisis of 2008 showed a lack of basic corporate governance. These have cast research in identifying other factors, which take into account the ‘human side’ of corporate governance and in fact shape actual corporate governance behavior. This thesis is in this spirit. It aspires to mirror the production function of good corporate governance by identifying potential outcomes of good corporate governance and by investigating the effects of compliance-based and values-based mechanisms on these outcomes. More specifically, the thesis, following a compliance-based approach, develops a formal governance model that investigates whether the degree of compliance with the various structural corporate governance practices is translated into effective corporate governance, as well as other institutional factors that may decouple corporate governance compliance from implementation. Moreover, capitalizing on a values-based approach, this dissertation develops an informal governance model that examines the role of shared values in promoting good corporate governance. Furthermore, the study investigates which approach, the compliance-based or the values-based, is more effective in fostering good corporate governance. Last, the study examines whether good corporate governance, as conceptualized by this dissertation, pays off. Cross-sectional analysis of a sample of 100 Greek listed firms empirically supports the aforementioned ideas. Our findings indicate that the degree of compliance with corporate governance prescriptions claimed in the CG annual statements is not a sine qua non condition for effective corporate governance. Good corporate governance stems primarily from an ethical/relational culture that defines ‘right’ behavior in each and every case, i.e., from coupling compliance with ethical shared values that enhance stakeholders’ relations. Moreover, we show that only the actual implementation of corporate governance guidelines is associated with better firm outcomes, such as CSR engagement. Finally, research and policy implications as well as directions for further research are provided.

scholarly journals Does better corporate governance attract foreign equity ownership? Evidence from Malaysian listed companies

2012 ◽  
Vol 9 (4) ◽  
pp. 118-125
Author(s):  
Yap Voon Choong ◽  
Chan Kok Thim ◽  
John Stanley Murugesu
Keyword(s):  
Corporate Governance ◽  
Agency Cost ◽  
Government Ownership ◽  
Firm Level ◽  
Insider Ownership ◽  
Listed Firms ◽  
Good Corporate Governance ◽  
Corporate Governance Mechanisms ◽  
Governance Practices ◽  
Equity Ownership

This study examines the effect of firm-level corporate governance variables on foreign equity ownership (FEO) in Malaysia. Foreign equity ownership can be an important source of capital for companies to fund their expansion and growth. To attract FEO, good corporate governance practices are vital because these practices are used to reduce or mitigate agency cost. Based on a sample of listed firms on Bursa Malaysia and employing multiple regression analysis, the study finds that a number of corporate governance mechanisms significantly improve the ability of companies to attract foreign equity ownership, especially, Insider Ownership, Government Ownership, Firm Size, Dividend Yield and Tobin’s Q. The results of the study indicate that firm-level efforts for better corporate governance sends positive signals and confidence to foreign investors.

scholarly journals Value Boosters or Dampers? Insights of Corporate Governance Practices From Pakistan

2018 ◽  
Vol III (III) ◽  
pp. 207-236
Author(s):  
Abida Razzaq ◽  
Ghulam Shabbir Khan Niazi
Keyword(s):  
Corporate Governance ◽  
Good Governance ◽  
Policy Implications ◽  
Listed Firms ◽  
Earnings Per Share ◽  
Theoretical Perspectives ◽  
Governance Practices ◽  
Vested Interests ◽  
Cosmetic Effect ◽  
Block Holders

Rampant corporate failures have placed corporate governance in the limelight again however not all governance practices help firms in enhancing value. This empirical research examines impact of corporate governance practices on shareholders' value represented by earning per share of 243 listed firms on Pakistani Bourse. It ensued in the conclusion that overall corporate governance tends to have significant impact on earnings per share and reveals dichotomy of corporate governance practices based on direction of their association with share holders' value and terms them as value boosters and value dampers. It has also been found that pro-entrenchment practices tend to lower earnings per share in the listed firms either due to complacency or vested interests while rest of the practices help in enhancing value earned on each share thus endorsing the theoretical perspectives emanating out of agency and shareholder activism theories. This study emphasizes the significance of Board Attendance, Board Independence, Non-duality of CEOChairman Role for listed firms' value. It also shows that entrenchment acts like larger boards, directors' ownership, large block holders and disclosure of such ownership can adversely impact the firms' value and thus play a significant role in scaring away the potential investors who primarily look at earnings per share for buying of stocks of a particular company. It entails policy implications that implementation of counter-entrenchment regulations needs strengthening as the existing seem to have cosmetic effect. Identification and implementation of good governance practices can be best ensured when propagated in the perspective of value enhancement.

scholarly journals Corporate Governance and Performance: An Empirical Investigation of Sugar Producing Companies in Kenya

2018 ◽  
Vol 14 (31) ◽  
pp. 240
Author(s):  
Machuki, V.N. ◽  
Rasowo, J.O.
Keyword(s):  
Corporate Governance ◽  
Policy And Practice ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Good Corporate Governance ◽  
Governance Practices ◽  
Improved Performance ◽  
And Performance ◽  
Financial Transactions ◽  
The Relationship

Corporate governance is concerned with the running of an organization in a way that guarantees that its owners or stockholders receive a fair return on their investments while the expectations of other stakeholders are also met. The study sought to examine the relationship between corporate governance practices and performance of sugar producing companies in Kenya. The study intended to establish the corporate governance practices adopted by the companies and the influence of these practices on their performance. Through a cross-sectional survey of 11 companies, data were gathered using a structured questionnaire and analyzed using both descriptive and inferential statistics. The results indicate that all the studied companies practice some form of corporate governance although the degree of adoption differ across them. The study also revealed that board decisions are not influenced by founder members and that it was not common for board members to engage in financial transactions with the companies. The results of regression analysis show that overall, there is a positive and statistically significant influence of corporate governance practices on performance of the sugar producing companies. The study draws a conclusion that a combination of good corporate governance practices is responsible for a large percentage of good performance achieved by the sugar companies. Individual corporate governance practices acting on their own do not always lead to improved performance. The study offers support for theories that anchor performance implications of good corporate governance as well as findings of previous similar studies. Based on the findings of the study, recommendation for policy and practice are made as well as suggestions for further research.

Global Corporate Governance in Financial Markets

2019 ◽  
pp. 180-196
Author(s):  
Satya Sekhar Venkata Gudimetla
Keyword(s):  
Corporate Governance ◽  
New Zealand ◽  
Comparative Study ◽  
Financial Markets ◽  
Policy Implications ◽  
Public Enterprise ◽  
Governing Board ◽  
Good Corporate Governance ◽  
Governance Practices ◽  
Standard Practices

In the context of globalization, there is a dire need for understanding various governance practices abroad. Good corporate governance needs to address the principles of government and public enterprise relationship and create the fundamental pillars based on which the governing board can become effective. This chapter focuses on understanding the standard practices in global corporate governance issues and problems, policy implications by considering a select country-wise analysis like Australia, Canada, Scotland, New Zealand, Iceland, India, UAE, etc. Hence, the chapter makes a comparative study of present corporate governance practices in selected countries.

The Critical Appraisal of Limited North European Corporate Governance Standards after Global Crisis, Corporate Scandals and Market Manipulation

2019 ◽  
Vol 2 (1) ◽  
pp. 34-52
Author(s):  
Dinh Tran Ngoc Huy
Keyword(s):  
Corporate Governance ◽  
Market Manipulation ◽  
Sovereign Wealth Funds ◽  
Global Crisis ◽  
Corporate Scandals ◽  
Good Corporate Governance ◽  
Governance Model ◽  
Governance Practices ◽  
Principles And Standards ◽  
European Corporate Governance

This paper mainly analyzes principles and standards of some international and North European corporate governance frameworks which are issued during or after the global crisis.First, it looks at the United Nation Good corporate governance practices and analyzes its strengths and impacts on corporate governance model of a company.Second, it compared the UN standards to generally accepted governance standards of Sovereign Wealth Funds. The paper finds out that during the global crisis time 207-2008, despite taking care of risk management, there still lacks of certain governance standards in these 2 Codes. Then, it analyzes some relative good corporate governance standards in a few North European countries including: Norway and Finland.Third, this paper provides with a short summary of evaluation of these above 2 corporate governance principles in 2 groups which can enable corporations tocompare to their current codes.Last but not least, it aims to realize a limited general set of standards of corporate governance and give proper recommendations to relevant governments and organizations. Additionally, it includes a section for recommending corporate governance for developing countries including Viet Nam.

scholarly journals Issues in Canadian board transparency

2007 ◽  
Vol 3 (1) ◽  
pp. 43-47
Author(s):  
Chris Bart
Keyword(s):  
Corporate Governance ◽  
Preliminary Investigation ◽  
Listed Firms ◽  
Good Corporate Governance ◽  
Governance Practices ◽  
And Performance ◽  
Using Data

Transparency is considered one of the principles of good corporate governance. But what does it mean – in practice – especially when it comes to Board transparency – i.e. the ability of shareholders to gain knowledge about an organization’s corporate governance practices in order to make an informed assessment of Directors’ individual and collective roles and performance. In a preliminary investigation of Board transparency practices in Canadian listed firms (using data from 2003-2004), it was found that there were wide variations in the nature and quantity of corporate governance practices disclosed. The reasons for these variations are discussed and a number of recommendations for improved disclosure are presented.

scholarly journals Corporate governance and financial performance of italian listed firms. The results of an empirical research

2015 ◽  
Vol 12 (2) ◽  
pp. 628-643 ◽  
Author(s):  
Matteo Rossi ◽  
Marco Nerino ◽  
Arturo Capasso
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Stock Exchange ◽  
Target Population ◽  
Cross Sectional ◽  
Return On Equity ◽  
Listed Firms ◽  
Good Corporate Governance ◽  
Financial Scandals ◽  
And Performance

Corporate governance has become a popular topic in the international scene. The recent financial scandals (Enron, Parmalat, Tyco, and WorldCom) have increased the interest on the relationship between Corporate Governance and performance, due to its apparent importance for the economic health of companies and its effect on society in general. The paper aims to verify a possible relationship between the corporate governance of Italian listed companies and their financial performance. Creating a quality index for corporate governance, called CGQI, we will try to understand if a good corporate governance can lead to better firm results. The target population is composed of all Italian companies listed on the Italian Stock Exchange, in the year 2012. The cross-sectional regression highlights two important results: the negative correlation between Tobin’s q and CGQI, and the positive correlation between Return on Equity and CGQI. It is possible to extend the analysis both temporally and spatially, with a comparison between different countries, considering that our index is constructed on the basis of corporate governance guidelines of different countries

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.

CEO behavior and sustainability performance: the moderating role of corporate governance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Amel Kouaib ◽  
Asma Bouzouitina ◽  
Anis Jarboui
Keyword(s):  
Corporate Governance ◽  
Real Estate ◽  
Corporate Sustainability ◽  
Least Square ◽  
Content Type ◽  
Sustainability Performance ◽  
Corporate Sustainability Performance ◽  
Good Corporate Governance ◽  
Governance Practices ◽  
The Impact

PurposeThis paper explores how the tension between a firm's CEO overconfidence feature and externally observable hubris attribute may determine the level of corporate sustainability performance. This work also contemplates the impact of the moderator “corporate governance practices.”Design/methodology/approachThis study uses a sample of 658 firm-year-observations using a sample of European real estate firms indexed on Stoxx Europe 600 Index from 2006 to 2019. To test the developed hypotheses, feasible generalized least square (FGLS) regression is applied.FindingsFindings suggest that a good corporate governance score strengthens the positive effect of the psychological bias (CEO overconfidence) on corporate sustainability performance while it fails to attenuate the negative effect of the cognitive bias (CEO hubris).Research limitations/implicationsThe research provides an overview of the impact of CEO personality traits on the corporate sustainability performance level in the European real estate sup-sector. As corporate governance can have a major impact to control these traits, the authors recommend European real estate companies to improve their corporate governance practices.Originality/valueThis study contributes to the existent literature this gap with two empirical novelties: (1) providing a novel insight into sustainability involvement using a sample of European real estate sup-sector and (2) investigating the moderating effect on the link between CEO psychological and cognitive biases and sustainability performance. This study provides empirical evidence that entrenchment problems arising from CEO hubris would not be mitigated by a good corporate governance practice.

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