An Assessment of Informal SMEs Governance Practices: A Case Study of SMEs in Harare CBD.

2021 ◽  
Vol 8 (4) ◽  
pp. 327-338
Author(s):  
Moses Chundu ◽  
Sarah Chimonyo ◽  
David Makwerere
Keyword(s):  
Corporate Governance ◽  
Information Dissemination ◽  
Target Population ◽  
General Information ◽  
Primary Data ◽  
Structured Interviews ◽  
Governance Practices ◽  
Medium Enterprise ◽  
Code Of Corporate Governance ◽  
The Impact

The study sought to assess the impact of implementing governance practices on the performance of Small and Medium Enterprise (SMEs) in the clothing sector operating in Harare’s CBD, Zimbabwe. Primary data was obtained mainly from structured interviews accompanied by questionnaires that sought to gather general information about the respondents. Face to face, verbal interviews were used to collect data during the study. The study made use of a sample that consisted of 100 respondents drawn from the target population using purposive sampling. The research study revealed that firms that implement corporate governance practices are more productive and perform well financially as compared to those that do not implement governance practices. The study also revealed that firms with corporate governance practices have better chances of surviving and acquiring funding for expansion and growth from banks and finance companies. The study concludes that governance practices impact the performance of SMEs operating in Harare’s CBD including their ability to introduce strategic changes. To encourage adoption of corporate governance practices by SMEs, government is encouraged to make the Code of Corporate Governance more relevant to SMEs as well as raising awareness through training and information dissemination.

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.

scholarly journals The impact of Board Size on the Performance of Shariah-Compliant Companies in Malaysia

2019 ◽  
Vol 8 (4) ◽  
pp. 6709-6711
Keyword(s):  
Corporate Governance ◽  
Consumer Products ◽  
Strong Positive Correlation ◽  
Board Size ◽  
Daily Lives ◽  
Governance Practices ◽  
And Performance ◽  
Code Of Corporate Governance ◽  
The Impact ◽  
The Relationship

The objective of this study is to examine the relationship between the board size and firm performance of Shariah-Compliant companies in Malaysia. The characteristics of the board of Shariah-compliant companies in Consumer Products counter of Bursa Malaysia are being examined against the firm’s performance using data from 77 companies from year 2014 to 2016. Based on the result of regression, board size has a strong positive correlation with the performance of the firms. This study suggests that Shariah-Compliant Companies need to strengthen the Shariah governance to produce products that Muslim consumer use in their daily lives. The appointment of director with Shariah background must be highly encouraged if not mandatory to companies involved in producing food, drinks, pharmaceutical and cosmetics in order for the companies to tap their expertise in enhancing halal governance. The findings of the study would be very useful to the regulators to improve the Malaysian Code of Corporate Governance. Furthermore, the findings of the study also help to fill the gap on scarce of literatures that study the relationship between the corporate governance practices and performance.

Theoretical Disclosure of Board Independence

2021 ◽  
pp. 213-237
Author(s):  
Aarooj Kiran ◽  
Ayesha Ibrahim
Keyword(s):  
Corporate Governance ◽  
East Asian ◽  
Institutional Context ◽  
Independent Directors ◽  
Board Independence ◽  
Corporate Scandals ◽  
Good Corporate Governance ◽  
Governance Practices ◽  
Code Of Corporate Governance ◽  
The Impact

In the wake of corporate scandals in major companies like Enron, Tyco, and East Asian crisis have emphasized the need of sufficient number of independent directors on the board for proper oversight and functioning of the company. Code of corporate governance recommends the presence of independent directors for better performance of the company. As board independence ensured good corporate governance practices, it is considered that having independent directors on the board is not for better performance but for better governance. In seeking reasonable answer for these arguments, the purpose of this study is to review some of the literature of board independence with respect to corporate governance theories specifically agency theory, stewardship, and resource dependency theory. All these theories have provided mixed evidences in different studies about the impact and importance of board independence and reason behind these mixed evidences might be the institutional context of different organizations in different countries.

scholarly journals Legal and Regulatory Compliance and Service Delivery in Semi-Autonomous County Government Entities of Kakamega County

2018 ◽  
Vol 6 (5) ◽  
Author(s):  
Christabell Murila Ashiono ◽  
Dr.Robert K.W. Egessa ◽  
Ms.Eglay Tuvulla Tsuma
Keyword(s):  
Corporate Governance ◽  
Service Delivery ◽  
Social Research ◽  
Simple Random Sampling ◽  
Target Population ◽  
Regulatory Compliance ◽  
Primary Data ◽  
County Government ◽  
Governance Systems ◽  
Governance Practices

Corporate governance is the system of rules, practices and processes by which a company is directed and controlled. Corporate governance essentially involves balancing the interests of a company's many stakeholders, such as shareholders, management, customers, suppliers, financiers, government and the community. It has been generally agreeable from many studies in the recent past that companies that have corporate governance systems in place also exhibit good performance which is actualized by the quality of service provided. This can only be fostered by following legal and regulatory practices by the companies. Thus, good corporate governance practices are increasingly being recognized as an important aspect of organizational success. This study sought to determine the effect of legal and regulatory compliance on service delivery in Semi-autonomous County Government entities of Kakamega County (SACGA). The study adopted a causal research design to determine the effect of corporate governance practices on service delivery in Semi-autonomous County Government Agencies. The target population was 478 derived from a sample frame two Semi-autonomous entities in Kakamega County through purposive sampling. Stratified simple random sampling was used to select respondents. A sample size of 30% drawn from the target population of the two entities was used in the study totaling to 143 producing a response of 128. Both Secondary and Primary data was collected using structured questionnaire and interview schedules. Validity was achieved through expert discussion while reliability of data was tested using Cronbach’s alpha resulting to Cronbach alpha of 0.756 which was above 0.7 threshold accepted in social research. Data analysis was done using Statistical Package for Social Sciences (SPSS) with the main analysis tools being frequencies, percentages, mean and Pearson product moment correlation coefficient and regression equation. Data was presented with use of tables. The study found out that there was a positive and significant relationship between legal and regulatory compliance (r=.529) on service delivery. The study concluded that legal and regulatory compliance contributes more to service delivery in SACGA.

scholarly journals Influence of corporate governance on performance of public universities in Kenya

2021 ◽  
Vol 10 (7) ◽  
pp. 116-128
Author(s):  
Peter Kariuki ◽  
Beatrice Elesani Ombaka ◽  
Paul Kiumbe Mburu
Keyword(s):  
Corporate Governance ◽  
Public Universities ◽  
Target Population ◽  
University Education ◽  
Primary Data ◽  
Policy Makers ◽  
Good Corporate Governance ◽  
Top Managers ◽  
Governance Practices ◽  
The University

This study aims to determine the influence of corporate governance on performance of Public Universities in Kenya. The study was anchored on social network theory. To achieve the objective, the study was based on a pragmatic philosophy and mixed research design with a target population of 234 University top managers. Primary data was collected using a 5 point Likert type questionnaire and an interview guide. Data was analyzed using descriptive and inferential statistics. Findings revealed that corporate governance had significantly statistical influence on performance of public universities in Kenya. This study concluded that adherence to good corporate governance practices are essential strategies Public Universities can use in their endeavour to improve on their performance. It is further recommended that University top managers should adhere to good corporate governance practices, specifically to management guidelines, allow for public participation and be transparent in their actions. Further, the results present important implications to University top managers, other corporate entities, policy makers, and stakeholders in the University education sector in Kenya and across the world.

The Impact of Shariah Governance and Corporate Governance on the Risk Management Practices: Evidence from Local and Foreign Islamic Banks in Malaysia

2018 ◽  
Vol 15 (2) ◽  
pp. 1-20
Author(s):  
Sabri Embi ◽  
Zurina Shafii
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Management Practices ◽  
Principal Component ◽  
T Test ◽  
The Body ◽  
Primary Data ◽  
Islamic Banks ◽  
Shariah Governance ◽  
The Impact

The purpose of this study is to examine the impact of Shariah governance and corporate governance (CG) on the risk management practices (RMPs) of local Islamic banks and foreign Islamic banks operating in Malaysia. The Shariah governance comprises the Shariah review (SR) and Shariah audit (SA) variables. The study also evaluates the level of RMPs, CG, SR, and SA between these two type of banks. With the aid of SPSS version 20, the items for RMPs, CG, SR, and SA were subjected to principal component analysis (PCA). From the PCA, one component or factor was extracted each for the CG, SR, and RMPs while another two factors were extracted for the SA. Primary data was collected using a self-administered survey questionnaire. The questionnaire covers four aspects ; CG, SR, SA, and RMPs. The data received from the 300 usable questionnaires were subjected to correlation and regression analyses as well as an independent t-test. The result of correlation analysis shows that all the four variables have large positive correlations with each other indicating a strong and significant relationship between them. From the regression analysis undertaken, CG, SR, and SA together explained 52.3 percent of the RMPs and CG emerged as the most influential variable that impacts the RMPs. The independent t-test carried out shows that there were significant differences in the CG and SA between the local and foreign Islamic banks. However, there were no significant differences between the two types of the bank in relation to SR and RMPs. The study has contributed to the body of knowledge and is beneficial to academicians, industry players, regulators, and other stakeholders.

Audit committee characteristics and the moderating effect of Malaysian code of corporate governance on IPO liquidity

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Amal Mohammed Al-Masawa ◽  
Rasidah Mohd-Rashid ◽  
Hamdan Amer Al-Jaifi ◽  
Shaker Dahan Al-Duais
Keyword(s):  
Corporate Governance ◽  
Initial Public Offerings ◽  
Audit Committee ◽  
Ordinary Least Squares ◽  
Moderating Effect ◽  
Least Squares Regression ◽  
Content Type ◽  
Code Of Corporate Governance ◽  
The Impact ◽  
The Relationship

Purpose This study aims to investigate the link between audit committee characteristics and the liquidity of initial public offerings (IPOs) in Malaysia, which is an emerging economy in Southeast Asia. Another purpose of this study is to examine the moderating effect of the revised Malaysian code of corporate governance (MCCG) on the link between audit committee characteristics and IPO liquidity. Design/methodology/approach The final sample consists of 304 Malaysian IPOs listed in 2002–2017. This study uses ordinary least squares regression method to analyse the data. To confirm this study’s findings, a hierarchical or four-stage regression analysis is used to compare the t-values of the main and moderate regression models. Findings The findings show that audit committee characteristics (size and director independence) have a positive and significant relationship with IPO liquidity. Also, the revised MCCG positively moderates the relationship between audit committee characteristics and IPO liquidity. Research limitations/implications This study’s findings indicate that companies with higher audit committee independence have a more effective monitoring mechanism that mitigates information asymmetry, thus reducing adverse selection issues during share trading. Practical implications Policymakers could use the results of this study in developing policies for IPO liquidity improvements. Additionally, the findings are useful for traders and investors in their investment decision-making. For companies, the findings highlight the crucial role of the audit committee as part of the control system that monitors corporate governance. Originality/value To the authors’ knowledge, this work is a pioneering study in the context of a developing country, specifically Malaysia that investigates the impact of audit committee characteristics on IPO liquidity. Previously, the link between corporate governance and IPO liquidity had not been investigated in Malaysia. This study also contributes to the IPO literature by providing empirical evidence regarding the moderating effect of the revised MCCG on the relationship between audit committee characteristics and IPO liquidity.

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.

Insider Trading Laws and Corporate Governance Impact on Investment Decision

2021 ◽  
Vol 3 (2) ◽  
pp. 126-137
Author(s):  
Sadaf Khan ◽  
Ubaid Ur Rehman
Keyword(s):  
Corporate Governance ◽  
Insider Trading ◽  
Positive Impact ◽  
Investment Decision ◽  
Investment Decisions ◽  
Future Research ◽  
Good Corporate Governance ◽  
Governance Practices ◽  
The Government ◽  
The Impact

This research aims to analyze the impact of insider trading laws and corporate governance on investment decisions. For this purpose, the data of 400 potential and actual investors employed who provided their feedback on a structured questionnaire. When the data is collected, it was cleaned. The normality of data and reliability of items were also checked and within limits. Simple Regression was applied to test hypotheses. It was concluded that the perception of insider trading laws and corporate governance have a positive impact on investment decisions. The study has wide implications and the government and corporation both can be beneficial from its insight and findings, and exercise good corporate governance practices and follow stringent insider trading laws. The study also paves the way for future research.

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