scholarly journals Governance and Performance: Publicly Listed Companies in Malaysia

2008 ◽  
Vol 3 (1) ◽  
Author(s):  
Cyril H. Ponnu ◽  
Sarimah Ramthandin
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Stock Price ◽  
Annual Reports ◽  
Company Performance ◽  
Return On Equity ◽  
Price Performance ◽  
Governance Practices ◽  
Corporate Governance Practice ◽  
And Performance

This paper investigates the relationship between corporate governance practice (as indicated by corporate governance disclosure) and company’s financial performance. Certain corporate structures and practices were examined to determine if they have any effect on company’s performance. Corporate governance practices were assessed based on the level of disclosure made in the companies’ annual reports. For financial performance, stock price performance and return on equity (ROE) were used as proxies. Results show that there is a positive relationship between the corporate governance practices and company performance. Findings from this research could be used by regulators, investors, corporations and others who contend that good corporate governance is important for increasing firm’s performance and investor confidence.

scholarly journals How Are Company Size, Financial Performance and Corporate Governance Related to Directors' Remuneration?

2020 ◽  
Vol 11 (6) ◽  
pp. 12
Author(s):  
Norziana Lokman ◽  
Fattiadriati Mohd Tareh
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Financial Reporting ◽  
Pearson Correlation ◽  
Annual Reports ◽  
Company Size ◽  
Company Performance ◽  
Ceo Duality ◽  
The Relationship ◽  
A Company

This study examined the relationship between the company-specific characteristics, namely, company size, company performance, and company leverage and the corporate governance attributes of a company which includes CEO duality and remuneration committee independence as the predictor factors that determine directors’ remuneration. A sample of 260 public listed companies on Bursa Malaysia was selected using stratified random sampling for the financial reporting of 2018. All data concerning the company characteristics and corporate governance attributes were obtained from the annual reports of the companies, which can be accessed from the Bursa Malaysia website. Pearson correlation and multi-regression analysis were used to analyse the data to determine the relationship of the predictor variables with director remuneration. On the one hand, the results of the study showed that directors’ remuneration is positively and significantly related to the size of the company. On the other hand, the financial performance of a company is positively but weakly related to directors remuneration. The remaining predictors have no relationship with directors’ remuneration. The finding suggested that the key determinant factor of directors’ remuneration is company size whereas company performance may have a small impact. Lastly, company compliance with the recommendation of the Malaysian Code on Corporate Governance did not guarantee the effectiveness of the monitoring function of the remuneration committee in ensuring that directors’ remuneration is commensurate with company performance. The result of the study provides additional evidence and support that company size and financial performance are linked to director remuneration. Also the finding of the study reconfirmed prior study that board leadership structure (CEO duality) and remuneration committee independent have no impact on directors’ remuneration.

scholarly journals Stock return and financial performance as moderation variable in influence of good corporate governance towards corporate value

2019 ◽  
Vol 4 (1) ◽  
pp. 18-34 ◽  
Author(s):  
Suhadak Suhadak ◽  
Kurniaty Kurniaty ◽  
Siti Ragil Handayani ◽  
Sri Mangesti Rahayu
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Stock Price ◽  
Stock Return ◽  
Stock Exchange ◽  
Complete Information ◽  
Company Performance ◽  
Corporate Value ◽  
Content Type ◽  
Good Corporate Governance

Purpose The purpose of this paper is to evaluate how much influence good corporate governance (GCG) has on corporate value, as well as moderating effect of stock return and financial performance on the influence of GCG on corporate value. Design/methodology/approach This study was an explanatory study. The unit of analysis was the companies listed in LQ45 in Indonesian Stock Exchange and the sources of data were ICMD, annual report and financial reports of the companies. Indonesian Stock Exchange was selected as the setting of the study since Indonesian Stock Exchange is one of trading places for various types of companies in Indonesia, and it provides complete information on company’s financial data and stock price. The population was 84 companies listed in LQ45 in Indonesian Stock Exchange between 2010 and 2016. Findings The higher GCG, independent commissioners proportion, institutional managerial and public ownerships resulted in higher corporate value. MBE and PER stock return is a moderating variable in the influence of GCG on corporate value. Financial performance is moderating variable in the influence of GCG on corporate value. Originality/value Based on the previous studies, it may be concluded that there is a gap between the influence of GCG on corporate value and the influence of stock return on financial performance, and moderating variable is needed to evaluate the influence of GCG on company performance, more particularly stock return and financial performance. This discrepancy creates opportunity for conducting an in-depth study on those variables. Its novelty is correlation between stock return and financial performance as moderation. Previous studies used these as mediating variables. This study is going to generate different finding as it is conducted in different setting (country where this study is conducted), type of industry, research period and using different method of analysis.

scholarly journals The financial impacts of board mechanisms on performance: The case of listed Moroccan banks

2021 ◽  
Vol 3 (2) ◽  
pp. 93-113
Author(s):  
Issam El Idrissi ◽  
◽  
Youssef Alami ◽  
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Fixed Effects ◽  
Audit Committee ◽  
Negative Impact ◽  
Governance Mechanisms ◽  
Return On Equity ◽  
Corporate Governance Mechanisms ◽  
Governance Practices ◽  
The Impact

Abstract Purpose: The present study examines the impact of corporate governance mechanisms on listed Moroccan banks' financial performance. Research methodology: This study investigates the relationship between listed banks' governance mechanisms and financial performance in the CSE for six years between 2014-2019. This study employs three performance measures, return on assets, return on equity, and Tobin's Q, to determine bank performance. This research uses the GMM EGLS approach to analyze data. In the first phase of this empirical research, we did use OLS, Fixed Effects, and Radom Effects regressions to show their inefficiency. Results: Our results portray that most board mechanisms have a negative impact on financial performance. In comparison, the audit committee and nomination & remuneration committee have a positive effect on financial performance. Limitations: Many qualitative and quantitative factors could influence financial performance and not only the used variables in this paper. Contribution: This research shows that the dynamic connection between corporate governance and financial performance is robust in the Moroccan banking context. Also, our study has important implications for establishing good corporate governance practices in emerging economies.

scholarly journals PENGARUH PENERAPAN GOOD CORPORATE GOVERNANCE TERHADAP PROFITABILITAS PADA PERUSAHAAN PERBANKAN YANG TERDAFTAR DI BEI PERIODE 2009-2013

2014 ◽  
Vol 3 (1) ◽  
pp. 77
Author(s):  
Riana Christel Tumewu ◽  
Stanly Alexander
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Banking Sector ◽  
Stock Exchange ◽  
Return On Equity ◽  
Purposive Sampling ◽  
Good Corporate Governance ◽  
Governance Practices ◽  
Independent Variable ◽  
Simple Regression

ABSTRAK Sejak krisis ekonomi tahun 1997 pelaksanaan tata kelola perusahaan yang baik, atau lebih dikenal dengan Good Corporate Governance (GCG) menjadi isu yang mengemuka di Indonesia. Akibat buruknya tata kelola perusahaan di Indonesia pada masa itu, menyebabkan perekonomian jatuh. Sehingga setiap orang setuju untuk mengcover kesulitan indonesia dimulai dengan tata kelola perusahaan. Objek dari penelitian ini yaitu dampak dari penerapan good corporate governance terhadap ROE. Tujuan dari penelitian ini adalah untuk mengetahui tentang pengaruh penerapn good corporate governance pada kinerja keuangan perusahaan. Sampel dalam penelitian ini adalah perusahaan sektor perbankan yang terdaftar di BEI (Bursa Efek Indonesia) dalam periode 2009-2013. Jumlah sampel yang digunakan sebanyak 16 perusahaan yang diambil melalui purposive sampling. Metode analisis dari penelitian ini menggunakan regresi berganda dan regresi sederhana program SPSS 20. Kata Kunci: Good Corporate Governance, Profitabilitas  ABSTRACT Since the economic crisis 1997 the implementation of good corporate governance being an issue in indonesia. The bad thing of governance’s company in those days causing indonesian economy being slump. So, every one agree to recovered from adversity, indonesia have to start with governance good corporate. The main objective of this research was to determine the effect of implementation of good corporate governance (GCG) to return on equity. The purpose of this research is to know about the influence of empirical evidence of Good Corporate Governance practices to the company's financial performance. The independent variable in this research is the implementation of GCG and the dependent variable is the financial performance using a ratio of profitability. The sample in this study were banking sector companies listed in Indonesian Stock Exchange (IDX) in the periode 2009-2013. The number of sample used were 16 companies listed were taken by purposive sampling. The method of analysis of this research used simple regression with SPSS 20 Program. Keyword: Good Corporate Governance, Profitability

scholarly journals THE IMPACT OF CORPORATE GOVERNANCE ON FINANCIAL PERFORMANCE OF LEBANESE BANKS

2021 ◽  
pp. 70-85
Author(s):  
Bilal Jibai
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Direct Relationship ◽  
Annual Reports ◽  
Quantitative Methodology ◽  
Substantial Evidence ◽  
New Knowledge ◽  
Governance Practices ◽  
The Impact ◽  
Governance Disclosure

The aim of this research is to study the impact of corporate governance disclosure on the financial performance of Lebanese banks. The impacts of corporate governance consequences on financial performance are the problem being faced by many firms. This research applies a quantitative methodology to the data from 29 banks’ annual reports for the year 2018. This data was analyzed using regression analysis means. This empirical study intends to find substantial evidence which would help acquire new knowledge and better understanding of how virtuous corporate governance practices and disclosures may help improve banks’ performance. In particular, validation of our research hypotheses may help with assessing the importance of corporate governance disclosure for the financial performance of Lebanese banks. The research proves there is a direct relationship between diversity on board and financial performance, as well as, between frequency of Board meetings and financial performance.  

scholarly journals Corporate Governance And Performance Of Peer Firms: A Cross-Lagged Analysis Of An Emerging Economy

2017 ◽  
Vol 33 (3) ◽  
pp. 547-564 ◽  
Author(s):  
Rizwan Ali ◽  
Yanping Liu ◽  
Gul Rukh Niazi
Keyword(s):  
Corporate Governance ◽  
Capital Structure ◽  
Financial Performance ◽  
Structural Equation ◽  
Dividend Policy ◽  
Equation Modeling ◽  
Dividend Policies ◽  
Peer Firms ◽  
Governance Practices ◽  
And Performance

In this study, we examine the effects of corporate governance practices on financial performance of Pakistani listed firms. On the bases of agency theory, MM theorem, and theory of firm, we suggest that corporate governance effects firm performance directly as well as indirectly via mediation of capital structure and dividend policy. The model was tested using a cross-lagged analysis of 100 non-financial firms with the structural equation modeling (SEM). The study concludes that corporate governance improves financial performance by exploiting capital structure and dividend policy. The findings of this study, highlights the importance of corporate governance practices for peer firms to restructure their debt and dividend policies for the enhancement of their financial performance. 

scholarly journals Gender Diversity on the Board of Director and Firm Performance: Agency Theory Perspective

2021 ◽  
Vol 12 (2) ◽  
Author(s):  
Lela Hindasah ◽  
Mugi Harsono
Keyword(s):  
Corporate Governance ◽  
Selection Process ◽  
Gender Diversity ◽  
Future Research ◽  
Company Performance ◽  
Female Directors ◽  
Board Of Director ◽  
Governance Practices ◽  
And Performance ◽  
Board Gender Diversity

Research aims: This paper provides a literature review on the influence of board of directors' gender diversity on financial and non-financial performance.Design/Methodology/Approach: This research used the content analysis identified from previous studies based on the proxies employed. The article selection process was carried out from reputable international journals published in 2017-2020, resulting in 50 articles discussing board gender diversity and performance.Research findings: This study's results are a conceptual model and future research developments. Research related to female directors and performance has been much carried out. Hence, future research suggests correlating female directors based on monitoring characteristics, human capital board, and demographics. The influence of gender diversity on non-financial performance is also rarely studied.Theoretical contribution/Originality: Identification of gender diversity attributes associated with financial and non-financial performancePractitioner/Policy implication: This study provides valuable information for policymakers or regulators to refine future corporate governance policies and increase understanding of the relationship between corporate governance practices and company performance as measured by financial and non-financial performance.Research limitation/Implication: This study is based on only 50 articles in the last four years.

Fuzzy bundling of corporate governance practices and performance of Indian firms

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Pankaj Kumar Gupta ◽  
Prabhat Mittal
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Design Methodology ◽  
Stock Exchange ◽  
Decision Making Process ◽  
Specific Level ◽  
Content Type ◽  
Governance Practices ◽  
And Performance ◽  
Conventional Regression

Purpose This paper aims to develop a framework that aids in achieving the desired state of financial performance for corporate enterprises based on distinct configurations of corporate governance (CG) practices. Design/methodology/approach This study uses a fuzzy-based system to arrive at a definitive configuration of CG practices that lead to a specific level of firm’s performance. Findings This analysis of the panel data of 92 National Stock Exchange–listed companies conducted for RONW on selected CG variables shows that eight fuzzy configurations lead to a particular state of RONW. The authors compare the results with the conventional regression-based scoring models. Originality/value Corporate enterprises can use the derived bundles of CG practices leading to a specific set of financial performance (RONW) to aid the decision-making process in defining and implementing their governance structures. The regulators can modify or customize the law-mandated CG practices to reduce redundancies and promote the national agenda of economic efficiency.

scholarly journals CSR-based corporate governance: A Malaysian study

2009 ◽  
Vol 6 (4) ◽  
pp. 176-192
Author(s):  
Normah Omar ◽  
Rashidah Abdul Rahman
Keyword(s):  
Corporate Governance ◽  
Performance Management ◽  
Internal Control ◽  
Maximum Level ◽  
Annual Reports ◽  
Average Score ◽  
Point Score ◽  
Governance Practices ◽  
And Performance ◽  
Corporate Social

The current study focuses on corporate social responsibility-based corporate governance (CSR-based CG) reporting that is purely based on information divulged in the annual reports of the country’s top 100 public listed companies (PLCs) by market capitalization. It highlights the companies with the highest scores vis-à-vis reporting on their CSR-based corporate governance practices and the areas in which they excel in. The annual reports of these companies have either been obtained directly from the organizations concerned or from their respective websites via links from Bursa Malaysia. A CSR-based Corporate Governance Score Checklist is used in ensuring consistency in analysing the annual reports. A 5-point Likert Scale is used to measure the CSR-based CG attributes, a “5-point” score denotes the maximum level of compliance and acceptance of the gauged attributes for CSR-based CG reporting whilst a “1-point” score represents low or no compliance. The results of the study reveals that that there is much room for improvement vis-à-vis Malaysian companies’ reporting of their CSR-based CG practices, as the average reporting score of these sample firms only came up to 55.1% for the period 2006 and this figure has slightly improved relative to the average score of 52.2% obtained in 2002. Furthermore, CG reporting has been found lacking mainly in areas such as Strategic Planning and Performance Management, Risk Management and Internal Control, Financial Matters, Human Capital, and Intellectual Capital. As such, improvement may involve the implementation of corporatewide internal programmes in most of these areas.

scholarly journals Corporate Social Responsibility, Corporate Governance, and Corporate Financial Performance

2020 ◽  
Vol 16 (1) ◽  
pp. 49
Author(s):  
Juniati Gunawan ◽  
Devica Pratiwi
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Positive Influence ◽  
United Nations Environment Programme ◽  
Annual Reports ◽  
Corporate Financial Performance ◽  
Return On Equity ◽  
Corporate Social

<p>This paper aims to analyze the influence of corporate social responsibility disclosures (CSRD) by corporate governance (CG) as a moderating variable on corporate financial performance (CFP). The CSRD were measured by the United Nations Environment Programme (UNEP) items and CG practices were evaluated by the Corporate Governance Perception Index (CGPI). The sample of 108 annual reports from 2011 to 2014, which were listed in the ‘Indonesia Most Trusted Companies Awards’ were analyzed through 2012 to 2015 SWA magazine. The moderated regression test was applied to analyze the corporate social responsibility disclosure (CSRD) to CFP, moderated by CG. The CFP were proxied by return on assets (ROA) and return on equity (ROE). This study reveals that CSRD has a significant positive influence to the company's ROA and ROE, and CG has been found weakening the relation between CSRD in influencing the ROA and ROE.</p>

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