Corporate Governance and Performance of Organizations

2018 ◽  
Vol 9 (5) ◽  
pp. 439-446
Author(s):  
Hamid Ait lemqeddem ◽  
◽  
Mounya Tomas ◽  
Keyword(s):  
Corporate Governance ◽  
Agency Theory ◽  
Theoretical Foundation ◽  
Quantitative Approach ◽  
Governance Practices ◽  
Deductive Method ◽  
Private And Public ◽  
Is Theory ◽  
And Performance ◽  
Do So

There is renewed interest in the need to focus on corporate governance in an environment where it is a performance imperative for all small and large organizations, private and public, beginner or established.The purpose of this study is to demonstrate the place of corporate governance practices in organizations to ensure that the board, officers, and directors take action to protect shareholder interests and all stakeholders. It is important to focus on the effect of these practices on improving performance and competitiveness. To do so, we opted for the hypothetico-deductive method with a quantitative approach. Our theoretical foundation is theory is agency theory.

“Corporate governance” and performance in nonprofit organizations

2020 ◽  
pp. 147612702092125
Author(s):  
Dane P Blevins ◽  
Roberto Ragozzino ◽  
Rory Eckardt
Keyword(s):  
Corporate Governance ◽  
Nonprofit Organizations ◽  
Agency Problems ◽  
Chief Executive ◽  
Total Revenue ◽  
Publicly Traded ◽  
For Profit ◽  
Governance Practices ◽  
And Performance ◽  
Scholarly Attention

Corporate governance has received substantial scholarly attention for decades, although the focus of this research has by and large been on publicly traded for-profit organizations. However, agency problems are increasingly recognized in nonprofits. As such, we examine the application of corporate governance logic in the context of nonprofits. Our study relies on nearly a decade of data spanning 6853 US-based charities and comprising nearly US$346 billion in total revenue. Our results show that common corporate governance practices—such as independent boards, chief executive officer oversight, and transparency—enhance the degree to which donor contributions are allocated toward a charity’s mission. Overall, we assess the broader applicability and benefits of corporate governance and build on literature highlighting links between for-profit and nonprofit organizations. In doing so, we demonstrate the usefulness of governance in this economically and socially consequential context.

scholarly journals Corporate Governance, Managerial Diversion, and Indonesian State-Owned Enterprises: A Literature Review

2020 ◽  
Vol 11 (5) ◽  
pp. 510
Author(s):  
Junino Jahja ◽  
Nor Farizal Mohammed ◽  
Norziana Lokman ◽  
Norazida Mohamed
Keyword(s):  
Corporate Governance ◽  
Critical Factor ◽  
Governance Structure ◽  
State Owned Enterprise ◽  
Governance Practices ◽  
Prior Literature ◽  
Tight Connection ◽  
Asean Countries ◽  
The Government ◽  
And Performance

This paper looks at managerial diversion and agency theory and how both arguments may be applied to describe the governance practices and performance of state-owned enterprise companies in Indonesia. Managers are the main focus of the approaches, on the assumption that managers tend to expropriate the firms' and shareholders' value for their own benefit instead of looking for ways to maximize shareholders' value and fulfill their stakeholders' needs. Indonesia is selected because it has the highest number of State-Owned Enterprise (SOE) companies among the ASEAN countries. The government holds more than 51 percent of the shares and has a unique governance structure with two-tier boards to manage and run the companies. Besides, most of Indonesia’s SOE companies have a tight connection with Indonesia’s political party. With these characteristics, the agency problem in Indonesia's SOE companies is more prevalent compared to other listed SOE companies. The managerial diversion, which is linked to corruption, might be the principal critical factor that hinders SOE companies from performing well. Thus, even with the introduction of a good corporate governance score by the Indonesian government, which is imposed on SOE companies, it may not be able to improve the overall financial performance of SOEs as well as governance practice in the companies. This paper's objective is to review and examine prior literature on corporate governance and managerial diversion from the perspective of state-owned enterprise companies in Indonesia.

scholarly journals Índice de Governança Corporativa, Desempenho e Valor da Firma no Brasil

2005 ◽  
Vol 3 (1) ◽  
pp. 1 ◽  
Author(s):  
André Luiz Carvalhal da Silva ◽  
Ricardo Pereira Câmara Leal
Keyword(s):  
Corporate Governance ◽  
Return On Assets ◽  
Good Corporate Governance ◽  
Total Capital ◽  
Significant Difference ◽  
Governance Practices ◽  
And Performance ◽  
And Control ◽  
High Degree

This study investigates the relationship between the quality of a firms corporate governance practices and its valuation and performance, through the construction of a broad firm-specific corporate governance index for Brazilian listed companies. The empirical results indicate a high degree of ownership and control concentration. We can also note a significant difference between the voting and total capital owned by the largest shareholders, mainly through the existence of non-voting shares. Panel data results indicate that less than 4% of Brazilian firms have good corporate governance practices, and that firms with better corporate governance have significantly higher performance (return on assets). There is also positive relationship between Tobin’s Q and better corporate governance practices although the results are not statistically significant.

scholarly journals Corporate Governance and Organisational Performance: Analysis of Nigeria Stock Exchange Listed Companies

2018 ◽  
Vol 6 (4) ◽  
pp. 12
Author(s):  
Olajide Solomon Fadun
Keyword(s):  
Corporate Governance ◽  
Stock Exchange ◽  
Listed Companies ◽  
Board Size ◽  
Ceo Duality ◽  
Positive Correlation ◽  
Performance Variables ◽  
Ceo Tenure ◽  
Governance Practices ◽  
And Performance

<p><em>Corporate governance is relevant in both developed and emerging economies. The study investigated the impact of corporate governance on organisational performance, using thirty (30) randomly selected listed companies in the Nigeria Stock Exchange (NSE) in the year 2016. The study focused on three corporate governance variables (i.e., Board Size, Board Independence, CEO Duality/Tenure); and two performance variables - i.e., Returns on Asset (ROA) and Returns on Equity (ROE). The study does not cover the market measure performance variable of Tobin’s Q. The study is an empirical research, with analytical research design. Secondary data, extracted from published annual reports of selected quoted companies and NSE website, is used for the study. The findings revealed a positive correlation between board size, independence directors, and performance variables; but, showed a negative correlation between CEO tenure and performance variables. The result showed that number of directors was not positively related to performance in selected quoted companies in terms of ROA; but, it revealed a positive correlation between board size and performance in terms of ROE. It also showed that the correlation between CEO tenure and performance variables was negative on the two performance variables (ROA and ROE). Regarding relationship between CEO Duality and performance variables (ROA and ROE), the result showed that CEO Duality has a positive correlation with ROA; but had a negative relationship with ROE. Generally, the study revealed that adoption of sound corporate governance practices by listed companies can improve their performance. Companies can benefit from this improved corporate governance practices by way of increased investment from investors and reduced capital cost. Shareholders confidence would be enhanced with attendant improvement in shareholders wealth. The nation’s economy would also benefit from sound corporate governance practices by way of improved GDP. </em></p>

scholarly journals Biaya Keagenan, GCG, dan Kinerja Perusahaan Keluarga

MBIA ◽  
2021 ◽  
Vol 19 (3) ◽  
pp. 331-342
Author(s):  
Kusmawati Kusmawati
Keyword(s):  
Corporate Governance ◽  
Data Processing ◽  
Agency Theory ◽  
Secondary Data ◽  
Agency Cost ◽  
Family Firm ◽  
Chi Square ◽  
Good Corporate Governance ◽  
Saturation Method ◽  
And Performance

This research according to agency theory, especially conflict between principal and agent in family firm. The purpose of this study was to examine empiricallly differences agency cost, GCG, and performance in family firm and not family firm. proxy chosen in describing the agency cost are operational expense ratio on revenue, performance of the firm is return on asset, and top 50 biggest market cap and mid cap of public listed companies in IICD for the GCG measurement. The population used in this study is company in 100 kompas index, during the period 2017-2019. The sample collected by saturation method and secondary data obtained from a IDX.co.id database.  In this study, the data collected were 28 family firm and 43 non family firm.  The statistically method are used Mann Whitney U and Chi Square with using IBM SPSS 23.0 for data processing. The first result of this research showed that there are differences in agency cost and Good Corporate Governance among family with non family firm. The second result are showed that there are not difference in Return On Asset among family with non family firm.   Abstrak Penelitian ini adalah penelitian tentang teori keagenan, khususnya konflik antara pemilik dan agen di perusahaan keluarga. Tujuan dari penelitian ini adalah untuk menguji secara empiris perbedaan antara biaya keagenan, GCG, dan kinerja antara perusahaan keluarga dan bukan perusahaan keluarga. Proksi yang dipilih untuk menggambarkan biaya keagenan adalah rasio beban operasi atas pendapatan, ukuran kinerja adalah laba bersih atas aset, dan perusahaan yang masuk dalam 50 perusahaan dengan market kapitatalisasi besar dan menengah untuk ukuran dari GCG. Populasi yang digunakan dalam penelitian ini adalah perusahaan yang masuk dalam index kompas 100 selama periode 2017-2019. Sampel dipilih dengan menggunakan metode sampel jenuh dan data sekunder yang digunakan adalah berasal dari database idx.co.id. dalam penelitian ini, data yang dikumpulkan terdiri dari 28 perusahaan keluarga dan 43 perusahaan non keluarga. Metode statistik yang digunakan adalah Mann Whitney U dan Chi Square dengan menggunakan SPSS IBM versi 23 untuk pengolahan datanya. Hasil penelitian menunjukkan bahwa terdapat perbedaan biaya keagenan dan GCG antara perusahaan keluarga dan perusahaan non keluarga. Hasil penelitian berikutnya menunjukkan bahwa tidak terdapat perbedaan kinerja ROA antara perusahaan keluarga dan non keluarga. Kata Kunci: Biaya Keagenan, GCG, ROA.

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.

THE EFFECTS OF CORPORATE GOVERNANCE ON PATRONAGE OF BANKING SERVICES IN NIGERIA

2012 ◽  
Vol 02 (05) ◽  
pp. 30-36
Author(s):  
T.A. NGEREBO-A ◽  
SWENEME YELLOWE
Keyword(s):  
Corporate Governance ◽  
Internal Control ◽  
Corporate Image ◽  
Primary Data ◽  
Chi Square ◽  
Banking Services ◽  
Analytical Technique ◽  
Long Run ◽  
Governance Practices ◽  
And Performance

The study was carried out to investigate banks’ corporate governance practices and how they affect service patronage, how corporate image influences patronage and performance of banks. The study focused on selected banks in Port Harcourt, Rivers State. A descriptive research design was used in the conduct of the research since it enables data required for the study to be obtained and interpretation to be based on the data obtained. Primary data formed the nucleus of the data used for the research. Data analysis was initially done using tables and simple percentages and hypotheses postulated were tested using the chi-square analytical technique. Based on the data collected, it was found that corporate governance has a significant influence on the patronage of banking services hence banks’ performance. Some of the recommendations made include; banks should enthrone good corporate governance practices to promote the patronage of banking services for long run profitability and should strive hard to put in place internal control mechanism that will promote customer loyalty and sustained patronage of services.

scholarly journals PENGARUH KEPEMIMPINAN ETIS DAN GOOD CORPORATE GOVERNANCE TERHADAP KINERJA PERUSAHAAN BUMN DI INDONESIA

2021 ◽  
Vol 21 (1) ◽  
pp. 137
Author(s):  
Mulyadi Mulyadi
Keyword(s):  
Corporate Governance ◽  
Organizational Performance ◽  
Ethical Leadership ◽  
Secondary Data ◽  
Vice President ◽  
Primary Data ◽  
Performance Excellence ◽  
Good Corporate Governance ◽  
Governance Practices ◽  
And Performance

<p><em>The purposed of this study to examined the influence of ethical leadership on the performance of SOEs in Indonesia, either directly or via a variable good corporate governance practices as a mediating variable. This study using both of primary data, ethical leadership variable and secondary data, good corporate governance index and performance of SOEs. SOEs performance are extracted from two type, first the company's health and assessment criteria for performance excellence. Both of these performance measures has been assesed both of by internal assessment and also the SOE and independent parties.This research used data of 63 state-owned enterprises with such criteria. Primary data such as ethical leadership data, obtained from the Vice President, Senior Vice President of 63 SOEs. SOEs data obtained from internal asesment and by independen party. Results of the study revealed that ethical leadership significant effect on organizational performance. Ethical leadership directly positive significant effect on organizational performance, while good corporate governance can not be a mediating variable. This study also proved significant influence ethical leadership positively to good corporate governance. Other findings, good corporate governance positively affects organizational performance. Ethical leadership a more direct impact on organizational performance compared to the indirect influence through the mediating variables of good corporate governance. The findings reveal the higher index of corporate governance and ethical leadership, the higher the performance of the organization.</em></p>

scholarly journals Corporate Governance and Performance: An Empirical Investigation of Sugar Producing Companies in Kenya

2018 ◽  
Vol 14 (31) ◽  
pp. 240
Author(s):  
Machuki, V.N. ◽  
Rasowo, J.O.
Keyword(s):  
Corporate Governance ◽  
Policy And Practice ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Good Corporate Governance ◽  
Governance Practices ◽  
Improved Performance ◽  
And Performance ◽  
Financial Transactions ◽  
The Relationship

Corporate governance is concerned with the running of an organization in a way that guarantees that its owners or stockholders receive a fair return on their investments while the expectations of other stakeholders are also met. The study sought to examine the relationship between corporate governance practices and performance of sugar producing companies in Kenya. The study intended to establish the corporate governance practices adopted by the companies and the influence of these practices on their performance. Through a cross-sectional survey of 11 companies, data were gathered using a structured questionnaire and analyzed using both descriptive and inferential statistics. The results indicate that all the studied companies practice some form of corporate governance although the degree of adoption differ across them. The study also revealed that board decisions are not influenced by founder members and that it was not common for board members to engage in financial transactions with the companies. The results of regression analysis show that overall, there is a positive and statistically significant influence of corporate governance practices on performance of the sugar producing companies. The study draws a conclusion that a combination of good corporate governance practices is responsible for a large percentage of good performance achieved by the sugar companies. Individual corporate governance practices acting on their own do not always lead to improved performance. The study offers support for theories that anchor performance implications of good corporate governance as well as findings of previous similar studies. Based on the findings of the study, recommendation for policy and practice are made as well as suggestions for further research.

scholarly journals STRATEGI DIVERSIFIKASI DAN KOMITMEN TATAKELOLA PERUSAHAAN BERDASARKAN KINERJA DAN KEBERLANJUTAN PADA PERBANKAN SYARIAH DI KOTA MAKASSAR

2017 ◽  
Vol 19 (3) ◽  
pp. 387
Author(s):  
La Ode Sumail ◽  
Mappamiring Mappamiring
Keyword(s):  
Corporate Governance ◽  
Agency Theory ◽  
Sampling Technique ◽  
Component Analysis ◽  
Quantitative Approach ◽  
Islamic Banking ◽  
Diversification Strategy ◽  
Positive Role ◽  
Generalized Structured Component Analysis

Studi ini bertujuan (1) merumuskan strategi diversifikasi terhadap keberlanjutan perusahaan perbankan Syariah; (2) mengungkap tatakelola perusahaan terhadap keberlajuntan keberlajuntan perusahaan perbankan Syariah; (3) mendeskripsikan peran strategi diversifikasi terhadap keberlajuntan melalui kinerja perusahaan perbankan Syariah; dan (4) mendeskripsikan  peran tatakelola perusahaan terhadap keberlajuntan melalui kinerja perusahaan perbankan Syariah. Pendekatan studi ini adalah kuantitatif. Teknik pengambilan sampel dilakukan secara proporsional yaitu 30 para pimpinan perbankan Syariah di Kota Makassar. Analisis data dilakukan dengan generalized structured component analysis (GSCA). Hasil studi ini menemukan bahwa (1) strategi diversifikasi tidak signifikan terhadap keberlajuntan perusahaan perbankan Syariah; (2) tatakelola perusahaan berpengaruh positif dan signifikan terhadap keberlajutan perusahaan perbankan Syariah;  (3) kinerja perusahaan berperan positif dan signifikan memediasi pengaruh diversifikasi terhadap keberlajuntan perbankan Syariah; dan (4) kinerja perusahaan berperan positif dan signifikan memediasi pengaruh tatakelola perusahaan terhadap keberlajuntan perbankan Syariah. Keterbaruan studi ini adalah: (1) menggunakan landasan teori keagenan perspektif Islam yakni teori keagenan  mudharabah dan (2) indikator tatakelola perusahaan diukur melalui konsep Syariah. This study aims to (1) formulate the company's strategy of diversification towards sustainability Islamic banking; (2) reveal the corporate governance of the company keberlajuntan keberlajuntan Islamic banking; (3) describe the role of a diversification strategy to keberlajuntan through the performance of Islamic banking companies; and (4) describe the role of corporate governance on corporate performance keberlajuntan through Islamic banking. This study is a quantitative approach. The sampling technique is done in proportion of 30 leaders of Islamic banking in Makassar. Data was analyzed using generalized structured component analysis (GSCA). Results of the study found that (1) the diversification strategy is not significant to the company keberlajuntan Islamic banking; (2) governance, positive and significant impact on the continuity of Islamic banking companies; (3) the company's performance and a significant positive role in mediating the effects of diversification towards keberlajuntan Islamic banking; and (4) the performance of the company and a significant positive role in mediating the effects of corporate governance on Islamic banking keberlajuntan. Freshness of this study are: (1) using the foundation of Islam that agency theory agency theory perspective mudaraba and (2) indicators of corporate governance is measured through the concept of Sharia.

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