CORPORATE GOVERNANCE: THE GATEWAY TO A ROBUST CORPORATE FINANCIAL PERFORMANCE IN MALAYSIA

In recent years, with corporate scandals and the global financial crisis, the emerging concept of corporate governance has received increasing attention in the corporate world in these days. It is seen as a moral obligation and includes supporting the consistency of the law and showing ethical guidance. Corporate governance is seen as an important tool for the financial performance of companies, and investor investment decisions have become a more serious topic, so the relationship between corporate governance tools and measurement of financial performance has attracted researchers' interest in the past decade mainly in developed and developing cities. In this study, we attempted to examine the impact of corporate governance on corporate financial performance in Kuala Lumpur using a sample of 215 companies on KLSE. Like previous research, firm, age, firm size, board size, CEO duality, board composition, board committees is the independent variables and their influence is to measure the financial ROA, ROE and Tobin's q , all kinds of test is used to investigate the relationship such as descriptive analysis, Pearson moment related test and regression using first data over a period of time.

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Corporate governance and performance of REITs

Managerial Auditing Journal ◽

10.1108/maj-09-2016-1445 ◽

2018 ◽

Vol 33 (6/7) ◽

pp. 586-612 ◽

Cited By ~ 2

Author(s):

Jayalakshmy Ramachandran ◽

Khoo Kok Chen ◽

Ramaiyer Subramanian ◽

Ken Kyid Yeoh ◽

Kok Wei Khong

Keyword(s):

Corporate Governance ◽

Regression Analysis ◽

Firm Size ◽

Global Financial Crisis ◽

Equation Modeling ◽

Content Type ◽

And Performance ◽

The Global Financial Crisis ◽

The Impact ◽

The Relationship

PurposeThis study aims to investigate the relationship between corporate governance (CG) and performance of Real Estate Investment Trust (REITs) in Singapore and Malaysia.Design/methodology/approachThe CG attributes that contribute best toward R-Index scores are tested followed by analysis of whether R-Index scores contribute toward better performance of the REITs when controlled for growth, firm size and leverage. Regression analysis using structured equation modeling (SEM) is instituted.FindingsAll attributes in the R-Index except management ownership are significantly correlated to R-Index. Regression analysis using SEM reveals that all the three measures of performance are significant. When controlled for growth and firm size, CG mechanisms reduce the impact of losses. However, highly levered firms could be risky for investors despite strong CG mechanisms.Research limitations/implicationsAll S-REITs and M-REIT sampled were grouped as one regardless of the country differences, which may have limited the results and findings. The R-Index used to score the CG practices for Asia is still very new.Practical implicationsFindings of the study will help REIT policymakers to update scorecards frequently. Loss-making REITs must emphasize on specific CG attributes to enhance their overall CG scores to gain market confidence and procure financial assistance through better disclosure.Originality/valueDue to research scarcity on CG effectiveness associated with performance of Asian REITs after the global financial crisis, this study comes as a timely contribution in understanding the relationship between CG and performance of REITs.

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The Outcomes of Corporate Governance to Financial Performance: Empirical Evidence from a Developing Country

Archives of Business Research ◽

10.14738/abr.811.9273 ◽

2020 ◽

Vol 8 (11) ◽

pp. 87-93

Author(s):

Khairi Aseh ◽

P. Ravindran Pathmanathan

Keyword(s):

Corporate Governance ◽

Financial Performance ◽

Positive Impact ◽

Corporate Financial Performance ◽

Kuala Lumpur ◽

Board Committees ◽

Corporate World ◽

Dependent Variables ◽

Value Measurement ◽

The Impact

Corporate governance has received increasing attention in the corporate world in these days. It is seen as a moral obligation and includes supporting the consistency of the law and showing ethical guidance. In this study, we attempted to examine the impact of corporate governance on corporate financial performance in Kuala Lumpur using a sample of 215 companies.Corporate governance variables have been shown to have a significant impact on corporate financial performance and market value measurement in general. The makeup of the board had a major positive impact on the ROA assessment variables, respectively. In addition, the CEO duality was positively correlated with all dependent variables, and the number of board committees was found to be negatively correlated with all measured variables, only significantly correlated with ROA. KEYWORDS: Corporate governance, financial performance, Kuala Lumpur

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Corporate governance and performance of listed commercial banks in South Africa

Corporate Ownership and Control ◽

10.22495/cocv11i2c7p1 ◽

2014 ◽

Vol 11 (2) ◽

pp. 677-687

Author(s):

Sam Ngwenya

Keyword(s):

South Africa ◽

Corporate Governance ◽

Commercial Banks ◽

Global Financial Crisis ◽

The United States ◽

Executive Directors ◽

Governance Indicators ◽

And Performance ◽

The Global Financial Crisis ◽

The Relationship

The global financial crisis of 2008 that resulted in the collapse of many financial institutions in the United States (US) and Europe have resulted in debates over the failures of corporate governance structures to properly protect investors. The main objective of the study was to determine the relationship between corporate governance and performance of listed commercial banks in South Africa. The results of the study indicated a statistically positive significant relationship between board size, proportion of non-independent and non-executive directors and bank performance. The results of the rest of the corporate governance indicators are mixed when using different performance measurement variables.

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Impacto del gobierno corporativo en el valor de las empresas latinoamericanas: evidencia desde el MILA

Suma de Negocios ◽

10.14349/sumneg/2021.v12.n26.a8 ◽

2021 ◽

Vol 12 (26) ◽

pp. 73-82

Author(s):

Sandra Milena Torres-Cano ◽

Diego Andrés Correa-Mejía

Keyword(s):

Corporate Governance ◽

Panel Data ◽

Financial Performance ◽

Latin American ◽

Data Model ◽

Financial Statements ◽

Panel Data Model ◽

Performance Variables ◽

The Impact ◽

The Relationship

Corporate Governance is a mechanism that seeks to strengthen the control bodies and their efforts, by combining principles and techniques to invigorate the value of companies and generate confidence in investors and all Stakeholders. This research seeks to analyze the impact of corporate governance on the values of companies that belong to the Latin American Integrated Market (MILA). The financial statements of the 97 companies from the years 2012 to 2018 were analyzed using a statistical panel data model to establish the relationship between the corporate governance variables and the financial performance variables. Lastly, it is concluded that non-economic mechanisms such as the implementation of adequate control policies positively influence the value of companies and generate support for investors.

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PENGARUH KINERJA KEUANGAN TERHADAP NILAI PERUSAHAAN DENGAN PENGUNGKAPAN CSR DAN GCG SEBAGAI VARIABEL PEMODERASI

Media Riset Akuntansi Auditing & Informasi ◽

10.25105/mraai.v10i2.1018 ◽

2010 ◽

Vol 10 (2) ◽

pp. 41

Author(s):

Hidayatullah ,

Keyword(s):

Corporate Governance ◽

Financial Performance ◽

Stock Exchange ◽

Value Added ◽

Corporate Financial Performance ◽

Corporate Value ◽

Moderating Variables ◽

Good Corporate Governance ◽

Relationship Of ◽

The Relationship

This Thesis investigated the influence of financial performance toward corporate value by exposing Corporate Sosial Responsibility (CSR) and Good Corporate Governance (GCG) as Moderating Variables. Corporate Financial performance as independent variable is represented by the Financial Value Added (FVA) and Corporate Value as Dependent Variable is represented by Tobin `s Q value. CSR value is indexed based on the 78 items of exposure themes and GCG value is indexed using the 18 items of exposure themes which the researcher called Corporate Governance Perception Index. After selecting 149 companies listed in Indonesia Stock Exchange, the researcher found 39 manufacture companies. qualified as the research objects based on the defined criteria, with observation timeframe from the year of2005 to 2008. The result of the research concludes that: Financial Performance (FVA) significantly influences the corporate value (Tobins 'Q); Corporate Sosial Responsibility also influences the relationship of corporate financial performance and the corporate value; and Good Corporate Governance influences the relationship of corporate financial performance and the corporate value as well.Keywords: Financial value Added, Tobin 's Q, CSR, GCG

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FINANCIAL PERFORMANCE OF ISLAMIC BANKING AFTER THE GLOBAL FINANCIAL CRISIS: A COMPARISON BETWEEN ISLAMIC COMMERCIAL BANKS AND ISLAMIC BUSINESS UNIT BANKS IN INDONESIA

Ar-Raniry International Journal of Islamic Studies ◽

10.20859/jar.v4i1.130 ◽

2017 ◽

Vol 4 (1) ◽

pp. 149

Author(s):

Laili Rahmi

Keyword(s):

Financial Crisis ◽

Financial Performance ◽

Risk Ratio ◽

Commercial Banks ◽

Global Financial Crisis ◽

Islamic Banking ◽

Business Unit ◽

Significant Difference ◽

The Global Financial Crisis ◽

The Impact

The global financial crisis has affected some industries or non-industries around the world. It has also impacted to Islamic banking in Indonesia, especially after 2007-2008. It has been recorded the Islamic banking industry in Indonesia shows a speedy recovery from the impact of the global financial crisis. Thus, this study aims to evaluate and examine the differences of Islamic banking’s financial performance after the global financial crisis in Indonesia. The financial performances in this study are profitability ratio (Return on Asset (ROA) and Return on Equity (ROE)), liquidity ratio (Financing to Deposit Ratio (FDR) and Current Asset Ratio (CAR)) and solvency risk ratio (Equity Multiplier (EM) and Debt to Equity Ratio (DER)). The samples in this study are the six Islamic banks from Islamic Commercial Banks (Bank Usaha Sharia (BUS)) and Islamic Business Unit Banks (Unit Usaha Sharia (UUS)) in Indonesia. Based on the results shows by the descriptive statistic, UUS is more effective in using their assets to generate income compared to BUS, but BUS is greater to manage their financing and more liquid than UUS whose has higher risk than BUS during 2009-2013. Independent sample t-test shows that there is significant difference in terms of profitability, liquidity and solvency risk ratio between BUS and UUS Indonesia during 2009-2013

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The Impact of Bailout on Financial Performance And Bank Risk-Taking During Financial Crisis: A Critical Systematic Review

International Journal of Business Studies ◽

10.32924/ijbs.v3i1.94 ◽

2019 ◽

Vol 3 (1) ◽

pp. 7-13

Author(s):

Dety Nurfadilah

Keyword(s):

Systematic Review ◽

Financial Crisis ◽

Financial Performance ◽

Risk Taking ◽

Global Financial Crisis ◽

Negative Impact ◽

Positive Impact ◽

Bank Risk ◽

The Global Financial Crisis ◽

The Impact

The focus on the bank bailout has been increased since the global financial crisis in 2008 in most countries. However, previous studies often discover the relationship between bailout and corporate governance. In this study, bank bailout literature will be reviewed with the focus on the impact of bailout on bank financial performance and bank risk-taking during the financial crisis. Multi-step strategy is used to collect the data from 2000 to 2016. From the 7 papers were chosen based on the criteria. This systematic review has shown that the bank bailout has a positive impact on financial performance, however, it has a negative impact on bank risk-taking for a longer period.

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Impact of Companies’ Characteristics on the Relationship between Corporate Social Responsibility Disclosure and Corporate financial Performance - An Empirical Analysis

Studies of Applied Economics ◽

10.25115/eea.v39i7.4979 ◽

2021 ◽

Vol 39 (7) ◽

Author(s):

Sayeed Zafar Qazi ◽

Parvesh Kumar Aspal

Keyword(s):

Corporate Social Responsibility ◽

Social Responsibility ◽

Financial Performance ◽

Empirical Support ◽

Corporate Financial Performance ◽

Economic Point ◽

Corporate Social Responsibility Disclosure ◽

Corporate Social ◽

The Impact ◽

The Relationship

Strategic managers are persistently accosting with the decision of switching the scared corporate resource for the community welfare to balance the shareholders’ and multiple stakeholders’ interests. Corporate houses are presumed to not only intensify the economic priorities of investors, but must also consider the community and environmental ramifications as well. Presently, corporations are in dilemma over whether investment in corporate social responsibility (CSR) initiatives will be a cost or gain from an economic point of view. For this purpose, the association between CSR disclosure and corporate financial performance has been empirically explored and also the company characteristic has been considered as a significant and interesting factor influencing the association between CSR and corporate financial performance. The prime objective of the present paper is to examine the impact of companies’ characteristics i.e., Age of company on the relationship between corporate social responsibility disclosure and corporate financial performance. Panel data regression statistical technique has been applied to investigate and analyze the relationship. The findings of the study reveal that companies CSR have significant influence on their financial performances. But, on the other hand the company characteristic, age of the company has no significant impact on the corporate financial performance. The findings are found consistent with earlier studies, which validate the company’s venture in undertaking the CSR initiatives. The present study addresses theoretical as well as empirical support and inspiration for the corporations towards CSR initiatives.

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Promoting or Inhibiting? The Impact of Environmental Regulation on Corporate Financial Performance—An Empirical Analysis Based on China

International Journal of Environmental Research and Public Health ◽

10.3390/ijerph17113828 ◽

2020 ◽

Vol 17 (11) ◽

pp. 3828 ◽

Cited By ~ 3

Author(s):

Xiang Deng ◽

Li Li

Keyword(s):

Sustainable Development ◽

Financial Performance ◽

Environmental Protection ◽

Environmental Regulation ◽

Empirical Analysis ◽

Analytical Framework ◽

Corporate Financial Performance ◽

Ecological Civilization ◽

The Impact ◽

The Relationship

Today, environmental protection has become a global issue, and various environmental regulations have been actively adopted. However, are these measures promoting or harming enterprise values? Is this effect the same for enterprises with different ownership backgrounds? In order to address these problems, we conducted an empirical analysis of China’s A-share market to investigate the relationship between the New Environmental Protection Law (NEPL) launched in China and corporate financial performance, and further explore the impact of environmental supervision intensity (ESI) from the perspective of ownership. The empirical results show that there is a negative correlation between NEPL and the financial performance of high pollution enterprises. Further analysis demonstrates that there is an inverted U-shape relationship between ESI and corporate financial performance for both state-owned enterprises (SOEs) and non-state-owned enterprises (non-SOEs), while the financial performance of SOEs is more sensitive and tolerant to environmental regulation than that of non-SOEs. Finally, we make recommendations for the future direction of China’s ecological civilization construction and sustainable development of enterprises based on three aspects: environmental awareness, policy considerations, and sustainable development. The innovation of this paper lies in putting NEPL and corporate financial performance in the same analytical framework for the first time, which enriches the research in this field. Meanwhile, it provides a new perspective for understanding the relationship between ESI and corporate financial performance through the analysis of nonlinearity and owner heterogeneity.

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Impact of Microfinance on Poverty in the Context of Global Financial Crisis

Socio-Economic Development ◽

10.4018/978-1-5225-7311-1.ch067 ◽

2019 ◽

pp. 1317-1333

Author(s):

Arindam Laha

Keyword(s):

Regression Analysis ◽

Financial Crisis ◽

South Asia ◽

Global Financial Crisis ◽

Poor Households ◽

Head Count ◽

The Global Financial Crisis ◽

The Impact ◽

The Relationship

The microfinance programme in the South Asia region has proven to be resilient to the shocks of global financial crisis. In fact, cross country experiences in South Asia reveal little impact of the global financial crisis on the penetration of the microfinance programmes to poor households. To explore the impact of microfinance on poverty in the backdrop of global financial crisis, an attempt has been made in this present study to examine the relationship between MFI's gross portfolio per active borrower and the measures of poverty. Empirical evidences based on Pooled Regression Analysis suggest that gross portfolio per active borrower is negatively and significantly associated with the poverty head count ratio or poverty gap measure, which is consistent with the author's hypothesis that micro loans reduce poverty. The poverty alleviation role of microfinance in South Asian countries is not changing its dynamics even in post-crisis scenario.

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