scholarly journals The Analysis of Corporative Reporting Designed to Enhance Corporate Governance: Evidence from the Banking Sector in Croatia

2017 ◽  
Vol 20 (s1) ◽  
pp. 59-72
Author(s):  
Ivana Đunđek Kokotec ◽  
Marina Klačmer Čalopa ◽  
Kristina Detelj
Keyword(s):  
Corporate Governance ◽  
Banking Sector ◽  
Research Paper ◽  
Literature Analysis ◽  
Tobin’S Q ◽  
Financial Indicators ◽  
Return On Assets ◽  
Tobin's Q ◽  
Return On Equity ◽  
Corporate Reporting

Abstract The main objective of this research paper is to examine whether the practice of corporate governance (CG) measured by the CGI-Crobank® index is significant for the explanation of variations in the performance of Croatian banks measured by the return on assets, return on equity, interest margin, margin of non-interest income, operating expenses margin, and by Tobin’s Q for the observed period from 2011 to 2015. The research is made on Croatian banks that form the CGI-Crobank® index using the data and information from annual questionnaires of CG codex, primarily to ensure objectivity, standardization and comparability. The goal of the literature analysis was to show present findings in the areas of corporate reporting and its impact on CG. Results obtained in the research indicate that a well implemented practice of corporate governance measured by the CGI-Crobank® index have influence on the variations in the performance of Croatian banks measured by Tobin’s Q and financial indicators.

scholarly journals PENGARUH GOOD CORPORATE GOVERNANCE TERHADAP KINERJA DAN NILAI PERUSAHAAN (STUDI PADA PERUSAHAAN YANG TERINDEKS OLEH CGPI

2016 ◽  
Vol 3 (1) ◽  
pp. 1-10
Author(s):  
EVA MARIA SULASTRI
Keyword(s):  
Corporate Governance ◽  
Tobin’S Q ◽  
Return On Assets ◽  
Tobin's Q ◽  
Return On Equity ◽  
Book Value ◽  
Good Corporate Governance

Penelitian ini bertujuan untuk menganalisis pengaruh good corporate governance terhadap kinerja perusahaan dan nilai perusahaan yang dapat dijadikan acuan manajemen dalam menggunakan tata kelola yang baik dan tepat sehingga dapat menguntungkan perusahaan secara keseluruhan. Populasi pada penelitian ini menggunakan seluruh perusahaan yang terdaftar di Bursa Efek Indonesia dengan sampel perusahaan yang masuk dalam indeks CGPI dengan jumlah sampel 91 perusahaan. Variabel yang digunakan pada penelitian ini yaitu good corporate governance yang diproksikan dengan CGPI, kinerja perusahaan yang menggunakan proksi Return On Assets (ROA) dan Return On Equity (ROE), sedangkan nilai perusahaan menggunakan TOBIN’S Q dan Market to Book Value (MBVR). Penelitian ini menggunakan alat analisis regresi linear yang berfungsi untuk mengetahui pengaruh antara good corporate governance, kinerja perusahaan dan nilai perusahaan. Hasil dari penelitian ini menunjukkan bahwa good corporate governance berpengaruh positif signifikan terhadap kinerja perusahaan, good corporate governance berpengaruh positif signifikan terhadap nilai perusahaan yang diproksikan dengan MBVR sedangkan jika diproksikan dengan TOBIN’S Q tidak berpengaruh, pengaruh kinerja perusahaan terhadap nilai perusahaan memberikan beberapa hasil, ROA berpengaruh positif signifikan terhadap TOBIN’S Q kemudian ROE tidak berpengaruh terhadap TOBIN’S Q dan ROA serta ROE tidak berpengaruh terhadap MBVR.   Kata Kunci: good corporate governance, return on assets, return on equity, TOBIN’S Q dan market to book value

Is sustainability reporting (ESG) associated with performance? Evidence from the European banking sector

2019 ◽  
Vol 30 (1) ◽  
pp. 98-115 ◽  
Author(s):  
Amina Buallay
Keyword(s):  
Banking Sector ◽  
Positive Impact ◽  
Sustainability Reporting ◽  
Tobin’S Q ◽  
Return On Assets ◽  
Tobin's Q ◽  
Financial Return ◽  
Content Type ◽  
Return On Equity ◽  
The Relationship

Purpose Sustainability reporting has been widely adopted by firms worldwide given the need of stakeholders for more transparency on environmental, social and governance (ESG) issues. The purpose of this paper is to investigate the relationship between ESG and bank’s operational (Return on Assets), financial (Return on Equity) and market performance (Tobin’s Q). Design/methodology/approach This study examined 235 banks for ten years (2007-2016) to ends up with 2,350 observations. The independent variable is the ESG disclosure; the dependent variables are performance indicators (return on assets, return on equity and Tobin’s Q). Two type of control variables are utilized in this study: bank specific and macroeconomic. Findings The findings deduced from the empirical results demonstrate that there is significant positive impact of ESG on the performance. However, the relationship between ESG disclosures is vary if measured individually; the environmental disclosure found positively affect the ROA and TQ. Whereas, the corporate social responsibility disclosure is negatively affect the three models. However, the corporate governance disclosure found negatively affects the ROA, ROE and positively affects the Tobin’s Q. Originality/value The results of this study can be used to present a successful model for worldwide banks to concentrate on the role of ESG disclosure in performance.

scholarly journals PENGARUH GOOD CORPORATE GOVERNANCE TERHADAP KINERJA DAN NILAI PERUSAHAAN (STUDI PADA PERUSAHAAN YANG TERINDEKS OLEH CGPI)

2017 ◽  
Vol 16 (1) ◽  
pp. 34
Author(s):  
Maria Eva Sulastri ◽  
Dian Hakip Nurdiansyah
Keyword(s):  
Corporate Governance ◽  
Tobin’S Q ◽  
Return On Assets ◽  
Tobin's Q ◽  
Return On Equity ◽  
Book Value ◽  
Good Corporate Governance

Penelitian ini bertujuan untuk menganalisis pengaruh good corporate governance terhadap kinerja perusahaan dan nilai perusahaan yang dapat dijadikan acuan manajemen dalam menggunakan tata kelola yang baik dan tepat sehingga dapat menguntungkan perusahaan secara keseluruhan.Populasi pada penelitian ini menggunakan seluruh perusahaan yang terdaftar di Bursa Efek Indonesia dengan sampel perusahaan yang masuk dalam indeks CGPI dengan jumlah sampel 91 perusahaan. Variabel yang digunakan pada penelitian ini yaitu good corporate governance yang diproksikan dengan CGPI, kinerja perusahaan yang menggunakan proksi Return On Assets (ROA) dan Return On Equity (ROE), sedangkan nilai perusahaan menggunakan TOBIN’S Q dan Market to Book Value (MBVR). Penelitian ini menggunakan alat analisis regresi linear yang berfungsi untuk mengetahui pengaruh antara good corporate governance, kinerja perusahaan dan nilai perusahaan.Hasil dari penelitian ini menunjukkan bahwa good corporate governance berpengaruh positif signifikan terhadap kinerja perusahaan, good corporate governance berpengaruh positif signifikan terhadap nilai perusahaan yang diproksikan dengan MBVR sedangkan jika diproksikan dengan TOBIN’S Q tidak berpengaruh, pengaruh kinerja perusahaan terhadap nilai perusahaan memberikan beberapa hasil, ROA berpengaruh positif signifikan terhadap TOBIN’S Q kemudian ROE tidak berpengaruh terhadap TOBIN’S Q dan ROA serta ROE tidak berpengaruh terhadap MBVR.

scholarly journals Effects of Corporate Governance on the Performance of Nepalese Firms

2016 ◽  
Vol 1 ◽  
Author(s):  
Prem Prasad Silwal
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Audit Committee ◽  
Tobin’S Q ◽  
Return On Assets ◽  
Board Size ◽  
Tobin's Q ◽  
Return On Equity ◽  
Explanatory Variables ◽  
Major Factors

The paper examines the effect of corporate governance on the performance of Nepalese firms. Return on assets, return on equity and Tobin’s Q are the dependent variable for firm performance and firm size, leverage, board size, age of the firm, and audit committee are the explanatory variables. Data are collected from annual report of 18 non financial firms listed in NEPSE from 2010 to 2015.The multiple regression models were estimated to test the effect of explanatory variables on firm performance. The result reveals that corporate governance has significant impact on firms’ performance based on return on assets. Board size, and leverage have negative and significant effect on firm performance however age of the firm and audit committee have positive effect on firm performance based on return on equity. While regressing firm performance based on Tobin’s Q, board size and audit committee are the major factors in determining the firm performance.

scholarly journals The Impact of Corporate Governance on Profitability of Conventional Banks Operating in Pakistan

2020 ◽  
Vol 1 (4) ◽  
pp. 260-267
Author(s):  
Hafiz Muhammad Naveed ◽  
Shoaib Ali ◽  
Yao Hongxing ◽  
Saqib Altaf ◽  
Jan Muhammad Sohu
Keyword(s):  
Corporate Governance ◽  
Commercial Banks ◽  
Banking Sector ◽  
Board Independence ◽  
Return On Assets ◽  
Board Size ◽  
Return On Equity ◽  
Board Directors ◽  
Conventional Banks ◽  
The Impact

The key purpose of present research study to examine the association among corporate governance and profitability banks in developing counties. For such primary objective, annually based data collected from 2004 to 2016. The data taken from annual financial reports which issued by conventional banks.  We have used ADF (Augmented Dickey Fuller) test to examine the unit-root of variables. Moreover, the multiple linear regression utilized for hypothetical estimation. The results indicates that corporate governance and conventional banks profitability of Pakistan are bidirectional (positive-negative) associated to each other. In addition, the board size (Board Directors) is negatively associated with Return on assets and return on equity of banks. Similarly, the board independence (Insider-Outsider Board Directors) is positively influenced to return on assets and return on equity of conventional banks of Pakistan. The overall findings shows that board size and board independence are highly associated with return on equity than return on assets. Moreover, banking sector in developing countries the board size should contain on appropriate strength and acquire more professional and qualified staff. An optimal number of directors in a board size there is a need of commercial banks as to increase the profitability. To enhance the investors’ confidence with the bank there is also a need of the commercial banks to increases the board independency.

scholarly journals A Study of A Causality Relationship between Profitability and Firm Value: A Comparison between European Countries

2017 ◽  
Vol 4 (1) ◽  
pp. 108
Author(s):  
Ben Said Hatem
Keyword(s):  
Firm Value ◽  
European Countries ◽  
Tobin’S Q ◽  
Return On Assets ◽  
Tobin's Q ◽  
Mean Values ◽  
Return On Equity ◽  
Market Values ◽  
Causality Relationship

The aim of our paper is to test for a causality interdependence between profitability and firm value. To this end, we examined a sample of two European countries: Italy and Poland. Our samples contain 200 firms from each country studied over a period of 4 years from 2007 to 2010. As a measure of firm performance, we use two ratios; return on assets and return on equity. Regarding firm value, we used two ratios; Tobin’s Q calculated as long-term debt increased by short-term debt divided by total assets, and Market To Book ratio calculated as market capitalization divided by shareholder’s equity. The descriptive statistics show that Italian firms have higher market values. We obtained mean values of 1,123 and 2,0698 of Tobin’s Q and MTB, respectively. However, firms of Poland are more profitable than firms of Italy. Using a data panel method, we concluded that for firms of Italy, there is a causality relationship between profitability, approximated by return on assets and return on equity and firm value, measured by Tobin’s Q. For firms of Poland, a causality relationship is also found.

scholarly journals Analisis Pengaruh Penerapan Good Corporate Governance terhadap Kinerja Perusahaan

2012 ◽  
Vol 3 (1) ◽  
pp. 141
Author(s):  
Rio Novianto Rossi ◽  
Rosinta Ria Panggabean
Keyword(s):  
Corporate Governance ◽  
Financial Reporting ◽  
Positive Influence ◽  
Operational Performance ◽  
Tobin’S Q ◽  
Tobin's Q ◽  
Return On Equity ◽  
Good Corporate Governance ◽  
The Relationship ◽  
Ranking Index

This study describes the relationship between corporate governance with corporate performance and learns about the development and implementation of GCG in Indonesia. This study uses regression analysis to determine whether corporate governance has a positive influence. Sampling of Corporate Governance Perception Index (CGPI) for 2006 to 2009 from The Indonesian Institute for Corporate Governance (IICG) was used to measure the influence of corporate governance with Tobin’s Q on the performance of the enterprise market and Return On Equity (ROE) was used to measure the operational performance of the company. This study used a sample of 40 companies surveyed by IICG from 2006 to 2009 and included in the top 10 corporate governance ranking index released by IICG and the companies’ financial reporting are also listed on the BEI (Bursa Efek Indonesia) as well. The sampling method is purposive sampling. The result of this study indicate that there is no significant relationship between corporate governance with Tobin’s Q (market performance) but there is a significant positive relationship between corporate governance with ROE (operational performance).

The Impact of Firm Characteristics on Corporate Financial Performance in Emerging Markets

2020 ◽  
Vol 11 (4) ◽  
pp. 70-89
Author(s):  
Salah A. Ali ◽  
Mohamed Yassin ◽  
Rania AbuRaya
Keyword(s):  
Financial Performance ◽  
Audit Committee ◽  
Corporate Financial Performance ◽  
Tobin’S Q ◽  
Firm Characteristics ◽  
Return On Assets ◽  
Tobin's Q ◽  
Return On Equity ◽  
The Impact

This study investigates the impact of firm characteristics on the financial performance of companies listed on the Egyptian stock market. Regression model was performed to regress six firm characteristics variables, namely firm size, foreign listing, age, leverage, liquidity, and assets tangibility. The study controlled for five more variables related to corporate governance including board size, board independence, CEO role duality, audit committee, and the quality of external auditor to avert their effect on financial performance. The study used both accounting measures such as return on assets (ROA) and return on equity (ROE) and market-based Tobin's Q Ratio for measuring financial performance. The findings generally indicate that firm characteristics have an impact on both accounting financial performance as measured by ROA or ROE and market-based financial performance as measured by Tobin's Q, with little difference in the level of such impact. These findings revealed that firm characteristics affect corporate financial performance as evaluated by the company or the market.

scholarly journals PENGARUH CORPORATE GOVERNANCE, LIKUIDITAS DAN KINERJA KEUANGAN TERHADAP NILAI PASAR PERUSAHAAN (Studi Empiris Emiten Yang Mendapat GCG award IICD Tahun 2010-2012)

2018 ◽  
Vol 11 (1) ◽  
pp. 091 ◽  
Author(s):  
Faisal Riza
Keyword(s):  
Corporate Governance ◽  
Secondary Data ◽  
Market Value ◽  
Total Sample ◽  
Listed Companies ◽  
Linear Regression Method ◽  
Tobin’S Q ◽  
Tobin's Q ◽  
Return On Equity ◽  
Financial Ratio

This research aims to determine the influence of corporate governance, liquidity and financial performance of the company's market value. The population in this research are listed companies Indonesian stock exchanges that getting GCG award from IICD about 2010 to 2012. Total sample of 50 listed companies with the observations made during the three years, which is from 2010 to 2012 the data sample of 133. The data used are secondary data, which derived of the book Indonesian Capital Market Directory (ICMD) until 2012 for financial ratio analysis and active listed companies listed in IDX that is determined through purposive sampling. Data analysis was performed with the classical assumption and hypothesis testing with multiple linear regression method. The results of this research indicated that the corporate governance index (CGI), current ratio (CR), debt to equity ratio (DER) and return on investment (ROI) have no significant impact on the market value (Tobin's Q) listed companies and otherwise return on equity (ROE ) significantly affects the market value (Tobin's Q).

scholarly journals Pengaruh Corporate Governance Terhadap Kinerja Perusahaan yang Terdaftar di Bursa Efek Indonesia Tahun 2014 - 2017 (Studi pada Perusahaan yang Memperoleh CGPI Tahun 2014 – 2017)

2019 ◽  
Vol 3 (1) ◽  
pp. 10
Author(s):  
Eva Setiarini Damanik ◽  
Yulia Istia Ningsih
Keyword(s):  
Corporate Governance ◽  
Sampling Method ◽  
Positive Impact ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Tobin’S Q ◽  
Tobin's Q ◽  
Return On Equity ◽  
Good Corporate Governance ◽  
Independent Variable

The objectives of this study is to find out the influence of good  corporate governance (GCG) towards the corporate performance. Independent variable in  this research is good  corporate governance.  This variable is measured with an instrument developed by  IICG in the form of corporate governance perception index (CGPI). CGPI contains the score of the survey’s result related to the application of corporate governance by the Companies throughout Indonesia. Meanwhile the dependent Variable of this research is the Performance of the Company on their finances measured with “return on equity and Tobin’s Q. The Sample of this study is company which is registered in Indonesian Stock Exchange and joined CGPI Programs in 2014, 2015, 2016 and 2017 taken by using purposive sampling method. This study used simple linear regression analysis method. The result of this study : (1) Corporate governance has a positive impact on ROE (2) Corporate governance has not an impact on Tobin’s Q

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