scholarly journals Governance Issues for SMEs

2010 ◽  
Vol 4 (4) ◽  
Author(s):  
Thomas Clarke ◽  
Alice Klettner
Keyword(s):  
Corporate Governance ◽  
Small And Medium Enterprises ◽  
Governance Structures ◽  
Small Companies ◽  
Governance Practices ◽  
Medium Enterprises

This paper draws on research into the corporate governance practices of small and medium enterprises (SMEs) listed on the Australian Securities Exchange. Interviews were conducted with the directors and/or company secretaries of 19 SMEs. The aim of the research was to explore not only SME corporate governance structures and processes but how SMEs had chosen to implement the Principles and the reasons for their choices. The paper addresses the issue of whether the ASX Corporate Governance Principles and Recommendations were appropriate for SMEs. It describes the SME responses to the requirements, how these differ from those of larger companies, and how these differences impact on small companies.

Corporate law and governance: A case of Tunisia after the Arab Spring

2021 ◽  
Vol 3 (2) ◽  
pp. 20-29
Author(s):  
Wajdi Ben Rejeb
Keyword(s):  
Corporate Governance ◽  
Small And Medium Enterprises ◽  
Gender Diversity ◽  
Women Directors ◽  
Governance System ◽  
African Countries ◽  
Interlocking Directorates ◽  
Governance Practices ◽  
Medium Enterprises ◽  
The Arab Spring

This paper reviews the corporate governance practices of listed Tunisian companies. Besides that, the paper explores the evolution of corporate governance legislation between 2013 and 2017 in order to identify the changes caused by the revolution to accompany the current context’s needs and the democratic transition in Tunisia. Although the most of companies in Tunisia are dominated by family small and medium enterprises (SMEs) and very small enterprises (VSEs) we have chosen to focus on listed companies. These companies present more advanced practices of corporate governance given the legislation in force. Results of this paper shed light on several important features of the Tunisian corporate governance system, for example, interlocking directorates. It is interesting to notice that a limited number of directors control the majority of the market capitalization in Tunisia. The practice of interlocking directorates reflects the Tunisian way of economic lobbying. As for gender diversity, although there are no laws imposing a minimum quota of women directors, the proportion of female board members has slightly increased during the last years, moving from 7.87% in 2013 to 9.92% in 2017. In contrast to Arab and African countries, it should be noted that the majority of women directors sit on boards as members of the family controlling the company or because they are civil servants representing the state’s interests in state-owned enterprises

Private equity and corporate governance: managing Brazilian SMEs

2014 ◽  
Vol 14 (2) ◽  
pp. 220-237 ◽  
Author(s):  
Estêvão Teixeira Latini ◽  
Joaquim Rubens Fontes-Filho ◽  
Eric L. Chambers
Keyword(s):  
Corporate Governance ◽  
Best Practices ◽  
Private Equity ◽  
Institutional Environment ◽  
Small And Medium Enterprises ◽  
Content Type ◽  
Similar Work ◽  
Governance Practices ◽  
Before And After ◽  
Medium Enterprises

Purpose – This paper aims to identify the effectiveness of private equity and venture capital (PE/VC) funds in promoting best practices of corporate governance in small and medium enterprises (SMEs) committed to PE/VC partnerships, in an institutional environment characterized by ownership concentration, lack of support for minorities' shareholder rights, and limited outside sources of finance for SMEs. Design/methodology/approach – Based on the literature related to similar work and context as in Eastern Europe and South Africa and best corporate governance practices developed for Brazil, the authors developed a list of aspects associated to practices related to SMEs. This list was submitted to 15 specialists, and the resulting compilation produced a list of 49 items that were submitted to a sample of 78 respondents to evaluate the relative importance of each item. Finally, a survey comprised of 70 entrepreneurs and managers of SMEs with investments from PE/VC funds evaluated the situation of their companies before and after forming a partnership with the fund. Findings – The study provides evidence that PE/VC funds play an important role in promoting best practices of corporate governance in invested SMEs, which contributes to development of the institutional environment and SMEs access to outside sources of finance. Originality/value – The study contributes empirical evidence to the role played by PE/VC funds and their influence on corporate governance practices.

scholarly journals Impact of Corporate Governance on Investment in SMEs Vietnam

2019 ◽  
Vol 11 (11) ◽  
pp. 59
Author(s):  
Nguyen Thi Kim Chi ◽  
Bui Van Can ◽  
Bui Minh Duc
Keyword(s):  
Corporate Governance ◽  
Agency Theory ◽  
Positive Impact ◽  
Small And Medium Enterprises ◽  
Financial Leverage ◽  
Board Chair ◽  
Revenue Growth ◽  
Medium Enterprises ◽  
The Impact ◽  
State Enterprises

Controlling the investment activities of company representatives helps to avoid inefficient investment activities. Shareholders will face with risks if manager’s decisions which not bring benefits to shareholders (according to agency theory). Studying the influence of corporate governance on investment has an important role in controlling investment activities of enterprises. Therefore, the authors analyze the impact of corporate governance on investment of small and medium enterprises (SMEs) in Vietnam from 2014 to 2018. With data collected from 480 small and medium enterprises in Vietnam. The results show that state-owned enterprises tend to invest less than non-state enterprises. Companies with manager is board chair and manager hold shares will make investing more. Revenue growth and financial leverage have a positive impact on investment. From the results of this study, the authors also make some recommendations to help control investment activities in the enterprise through corporate governance characteristics.

Identifying The Optimal Product Strategy By Applying Portfolio Segmentation Methods – Case Of Smes In Banking Sector

2014 ◽  
Vol 1 (1) ◽  
pp. 121-126
Author(s):  
Simona - Mihaela Nămolosu ◽  
Iuliana Cetină
Keyword(s):  
Banking Sector ◽  
Small And Medium Enterprises ◽  
Distribution Channel ◽  
High Potential ◽  
Small Companies ◽  
Market Segments ◽  
Motivational Systems ◽  
Potential Market ◽  
Segmentation Methods ◽  
Medium Enterprises

AbstractSmall and Medium Enterprises (SMEs) are a high potential target for banks to attack, but also a risky segment; high potential because the need for financing is increasing, but risky because the crisis affected a lot the solvability and profitability of these companies. On the other hand, loan facilities are some of the most complex banking products (if we analyse diverse financing needs of small companies, but rather due to the analysis and approval processes in banks). In defining strategic alternatives for financing products for SMEs, the following steps are essential: evaluating potential market segments and/or sub segments, always focusing on the general and particular commercial objectives of the bank, analysing the strategies used by the major competitors and last, but not least: developing motivational systems for the employees of the branches - the main distribution channel for a banking product.

Innovation Management Based on Knowledge

2015 ◽  
pp. 275-294
Author(s):  
Antonio-Juan Briones-Peñalver ◽  
Jose-Luis Roca-Gonzalez ◽  
Inmaculada-José Martínez-Martínez
Keyword(s):  
Corporate Governance ◽  
Business Performance ◽  
Small And Medium Enterprises ◽  
Innovation Management ◽  
The Other ◽  
Organizational Relationships ◽  
Good Corporate Governance ◽  
Market Approach ◽  
Medium Enterprises

The development of innovation management associated to knowledge management and business inter-organizational relationships based on project management is extremely important for good corporate governance and business performance. The interest of this chapter is to define the conceptual framework of everything mentioned above in technology-based companies. This chapter presents cases based on best practices for the development of innovation management, which is very present in small and medium enterprises with a market approach. This is the case of firms with a defense-related technology. The case study is about the innovation based on knowledge and research and about a technological and strategic view. On the other hand, economic inter-organizational relationships are also taken into account. An empirical analysis of 236 technology-based companies related to Spanish defense industry including a study about Knowledge and Innovation Management (KIM) as well as an assessment of its framework are also included.

Corporate governance and underpricing of small and medium enterprises IPOs in India

2020 ◽  
Vol 20 (3) ◽  
pp. 503-525
Author(s):  
Nischay Arora ◽  
Balwinder Singh
Keyword(s):  
Corporate Governance ◽  
Small And Medium Enterprises ◽  
Curvilinear Relationship ◽  
Board Structure ◽  
Governance Mechanisms ◽  
Content Type ◽  
Explanatory Variables ◽  
Corporate Governance Mechanisms ◽  
Medium Enterprises ◽  
The Impact

Purpose The purpose of the paper is to examine the impact of corporate governance mechanisms, i.e. board structure and ownership structure on the underpricing of small and medium enterprises (SME) IPOs in India. Design/methodology/approach Most of the extant empirical research studies have either pivoted on mainstream IPOs or SMEs IPOs in developed economies, but the present study examines 200 SME IPOs issued during Feb 2012 to April 2017. Multiple regressions have been used to examine the impact of the corporate governance mechanisms on raw return (RR). Furthermore, robustness of the results has been verified through the employment of market-adjusted excess return (MAER) as an additional proxy of underpricing. Findings The results highlight that board size, inverse of board committees, board independence, board age, board directorships positively, and top ten shareholding negatively influence RR. Further, direction of promoter ownership variable indicates curvilinear relationship with underpricing. Other explanatory variables used in model lack statistical validity. Similar results have been obtained when variables were regressed against MAER with related board members being additionally significant in model. Practical implications The findings suggest that Indian investors do take cues from board structure and ownership patterns for making investment decisions in small- and medium-sized firms. Further, the results are also helpful to top management in structuring their boards. Originality/value The present research enriches SME IPOs underpricing literature because the impact of corporate governance mechanisms on unadjusted returns is relatively under explored particularly within the context of small- and medium-sized firms.

Corporate governance: a conscious approach for Asia and emerging economies

2016 ◽  
Vol 58 (3) ◽  
pp. 317-336 ◽  
Author(s):  
Mahmoud Rajablu
Keyword(s):  
Corporate Governance ◽  
Emerging Economies ◽  
Economic Transition ◽  
Small And Medium Enterprises ◽  
Content Type ◽  
Governance Models ◽  
Anglo American ◽  
Asian Economy ◽  
Corporate Governance Practice ◽  
Medium Enterprises

Purpose Asian economy in transition is facing great deal of challenges, so its corporate governance. This paper investigates the dominant corporate governance models practiced under the liberal market capitalism, cooperative capitalism, collective capitalism and the state capitalism across the continents and proposes conscious governance approach for Asia and emerging economies. Design/methodology/approach The paper explores and compares Anglo-American and Continental European corporate governance models. The report further investigates the development of corporate governance across Asian publicly listed companies, state-owned enterprises, small and medium enterprises and other privately held large enterprises, and raises questions and concerns and derives conclusion. Findings The Asian experience of imposing Western corporate governance models is more of a simplification of tasks based on political, cultural and globalization needs rather than the regions’ economic, financial and social development reality. Practical implications The unique proposition of conscious corporate governance aligns corporate governance practice with Asian socio-economic transition vision and helps with further development and reforms. Originality/value The paper adds to the existing efforts and triggers a fresh view to the Asian and emerging economies corporate governance research and strategy.

scholarly journals Factors influential to the acceptance of managerial accounting tools in Tra Vinh’s small and medium enterprises

Accounting ◽  
2022 ◽  
Vol 8 (1) ◽  
pp. 75-80 ◽  
Author(s):  
Quang Linh Huynh
Keyword(s):  
Corporate Governance ◽  
Multiple Regression ◽  
Small And Medium Enterprises ◽  
Environmental Uncertainty ◽  
Business Environment ◽  
Organizational Size ◽  
Regression Analyses ◽  
Managerial Accounting ◽  
Medium Enterprises ◽  
Positive Impacts

Managerial accounting tools are vital controlling techniques to businesses. Nevertheless, the acceptance of managerial accounting tools in business might challenge directors in Tra Vinh’s business environment. The current research employed multiple regression analyses to investigate the influence of the acceptance of managerial accounting tools in Tra Vinh’s enterprises. The empirical findings demonstrate the usefulness of managerial accounting tools, environmental uncertainty, the structure of corporate governance, organizational interdependence and organizational size have positive impacts on the acceptance of managerial accounting tools in business. The structure of corporate governance and the usefulness of managerial accounting tools are the two strongest factors determining the acceptance of managerial accounting tools in business. The current research will help directors in Tra Vinh’s enterprises establish efficient managerial accounting tools in business that are suitable to the usefulness of managerial accounting tools, environmental uncertainty, the structure of corporate governance, organizational interdependence, and organizational size, so that they can gain the best possible effectiveness.

scholarly journals Corporate governance and agency theory: Megacable case

2018 ◽  
Vol 2 (1) ◽  
pp. 59-69 ◽  
Author(s):  
José G. Vargas-Hernández ◽  
María Elizabeth Teodoro Cruz
Keyword(s):  
Corporate Governance ◽  
Best Practices ◽  
Agency Theory ◽  
Small And Medium Enterprises ◽  
Empirical Literature ◽  
Governance System ◽  
Financial Reports ◽  
Cable Operator ◽  
Corporate Governance System ◽  
Medium Enterprises

The objective of this research is to determine the importance of the implementation of a corporate governance system in the Mexican company Megacable in its development, from the review of the theoretical and empirical literature. Therefore, a descriptive and explanatory study was carried out that describes the concepts related to the aforementioned elements. and financial reports of two periods are analyzed, as well as the main attributes that explain the success of the company. Among the main results obtained are that the Megacable group is the cable operator; Mexico’s largest internet and telephony in terms of subscribers, its structure as a controlling company that is managed through a series of subsidiaries and controlling companies and smaller operating companies in the same sector. It can be concluded that implementing efficient corporate governance among small and medium enterprises will have a clearer way of how to implement and execute the plans and best practices that will allow them to be leaders in their sector.

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