DO OWNERSHIP CONCENTRATION AND THE BOARD OF DIRECTORS AFFECT EXPORTS?

2021 ◽  
Vol 22 (3) ◽  
Author(s):  
VITOR F. M. B. DIAS ◽  
MICHELE A. CUNHA ◽  
FERNANDA M. PEIXOTO ◽  
DUTERVAL JESUKA
Keyword(s):  
Corporate Governance ◽  
Good Governance ◽  
Optimal Level ◽  
Board Composition ◽  
Exporting Firms ◽  
Listed Firms ◽  
Corporate Governance Mechanisms ◽  
Dependent Variables ◽  
Governance Practices ◽  
The Board Of Directors

ABSTRACT Purpose: To investigate whether the shareholder concentration and the board composition influence the export of Brazilian listed firms from 2010 to 2017. Originality/value: The study contributes to the literature on exports and corporate governance by highlighting that companies with good governance practices, measured by the board composition and ownership/control structure, might increase their exports. This research can serve as a guide for companies to structure their boards in order to positively influence exports and improve performance. In addition, the study raises the question of what would be the “optimal level” of firms’ shareholding concentration in order to improve the decision-making process involved in choosing to expand borders through export. Design/methodology/approach: The study performed logistic regression (logit model) and regression with the censored dependent variable (tobit model). Propensity to export and intensity of export were used as dependent variables. The logit regressions involved a sample of 307 exporting and non-exporting companies, and the tobit regressions involved a sample of 61 exporting firms. Findings: We found a positive relationship between board independence and exports, that is, the greater presence of independent members on the board, the higher the export level of firms. We also found that there is a non-monotonic relationship between shareholder concentration and level of exports. In summary, the study suggests that some corporate governance mechanisms may act as antecedents for firms’ export practices.

scholarly journals Does Corporate Governance Have a Say on Dividends in Australian Listed Companies?

2021 ◽  
Vol 15 (4) ◽  
pp. 47-75
Author(s):  
Omar Al Farooque ◽  
Ali Hamid ◽  
Lan Sun
Keyword(s):  
Corporate Governance ◽  
Dividend Policy ◽  
Good Governance ◽  
Empirical Studies ◽  
Managerial Ownership ◽  
Monitoring And Control ◽  
Governance Mechanisms ◽  
Listed Firms ◽  
Corporate Governance Mechanisms ◽  
Governance Practices

This paper investigates whether corporate governance has an impact on dividend policy in Australian listed firms. The empirical studies of corporate governance and dividend policy in the Australian context tend to have a limited scope and the findings are mixed. Unlike the existing literature, this paper provides a more comprehensive examination of the relationship between dividend policy and corporate governance mechanisms. Using a sample of 1,438 firm-year observations for the period of 2005 to 2011 and the panel data approach, this study finds that dividend payout is significantly positively (negatively) correlated with board size, board independence, institutional ownership and use of a Big-4 audit firm (CEO duality and managerial ownership). Moreover, dividend yield is significantly positively (negatively) correlated with managerial ownership (foreign ownership). These findings suggest that dividend policy and corporate governance mechanisms are complementary i.e. firms paying higher dividends are more likely to engage in good governance practices as well as having strong monitoring and control systems in place and therefore both dividend policy and corporate governance are considered as effective tools in reducing agency costs.

scholarly journals Diversity in the board of directors and good governance practices

2020 ◽  
Vol 9 (2) ◽  
pp. 97
Author(s):  
Álvaro Melón-Izco ◽  
Francisco J. Ruiz-Cabestre ◽  
M. Carmen Ruiz-Olalla
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Boards Of Directors ◽  
Good Governance ◽  
Gender Diversity ◽  
Positive Influence ◽  
Board Diversity ◽  
Corporate Governance Mechanisms ◽  
Governance Practices ◽  
The Board Of Directors

Motivated by the debate on the adequacy of the composition of boards of directors, we examine the effect that board diversity has on corporate governance performance in Spain, analysing gender diversity, diversity of director types and tenure diversity. The findings reveal that diverse boards of directors have a positive influence on good governance practices,improving the efficiency of corporate governance mechanisms. These results could be interesting for practitioners and regulators.

Governance of Financial Institutions

2018 ◽  
Author(s):  
Guler Aras
Keyword(s):  
Corporate Governance ◽  
Financial Institutions ◽  
Capital Markets ◽  
Financial Services ◽  
Good Governance ◽  
Governance Mechanisms ◽  
Corporate Governance Mechanisms ◽  
Governance Practices ◽  
The 2008 Financial Crisis ◽  
Sustainable Economic Growth

Corporate governance is a central issue in business and economics. However, governance in financial institutions is more complicated than in other fields because of the nature of financial services and instruments. Financial organizations are similar to other businesses in terms of their purposes of establishment, but confidence in management and complex risk structures are more important in financial organizations than in other businesses. In financial institutions, there are various areas in which problems arise that are related to corporate governance, including the agency problem and stakeholder protection. The importance of good governance for sound performance of financial institutions was reconfirmed during the 2008 financial crisis, raising the need to understand the agency problems and the efficiency of various corporate governance mechanisms in mitigating them. International organizations, such as the Organisation for Economic Co-operation and Development, the Basel Committee, the International Finance Corporation, and the International Organization of Securities Commissions, have been working with regulators and policy makers to improve corporate governance practices both in nonfinancial and financial institutions. Corporate governance, especially in financial institutions, is essential in guaranteeing a sound financial system, capital markets, and sustainable economic growth. Governance weaknesses at financial institutions can result in the transmission of problems across the finance sector and the economy. Consequently, the effectiveness of governance mechanisms of financial institutions and capital markets after financial crises had significant importance in a period that witnessed an intensive discussion of corporate governance issues with new regulations and the related academic works.

scholarly journals Does better corporate governance attract foreign equity ownership? Evidence from Malaysian listed companies

2012 ◽  
Vol 9 (4) ◽  
pp. 118-125
Author(s):  
Yap Voon Choong ◽  
Chan Kok Thim ◽  
John Stanley Murugesu
Keyword(s):  
Corporate Governance ◽  
Agency Cost ◽  
Government Ownership ◽  
Firm Level ◽  
Insider Ownership ◽  
Listed Firms ◽  
Good Corporate Governance ◽  
Corporate Governance Mechanisms ◽  
Governance Practices ◽  
Equity Ownership

This study examines the effect of firm-level corporate governance variables on foreign equity ownership (FEO) in Malaysia. Foreign equity ownership can be an important source of capital for companies to fund their expansion and growth. To attract FEO, good corporate governance practices are vital because these practices are used to reduce or mitigate agency cost. Based on a sample of listed firms on Bursa Malaysia and employing multiple regression analysis, the study finds that a number of corporate governance mechanisms significantly improve the ability of companies to attract foreign equity ownership, especially, Insider Ownership, Government Ownership, Firm Size, Dividend Yield and Tobin’s Q. The results of the study indicate that firm-level efforts for better corporate governance sends positive signals and confidence to foreign investors.

scholarly journals Value Boosters or Dampers? Insights of Corporate Governance Practices From Pakistan

2018 ◽  
Vol III (III) ◽  
pp. 207-236
Author(s):  
Abida Razzaq ◽  
Ghulam Shabbir Khan Niazi
Keyword(s):  
Corporate Governance ◽  
Good Governance ◽  
Policy Implications ◽  
Listed Firms ◽  
Earnings Per Share ◽  
Theoretical Perspectives ◽  
Governance Practices ◽  
Vested Interests ◽  
Cosmetic Effect ◽  
Block Holders

Rampant corporate failures have placed corporate governance in the limelight again however not all governance practices help firms in enhancing value. This empirical research examines impact of corporate governance practices on shareholders' value represented by earning per share of 243 listed firms on Pakistani Bourse. It ensued in the conclusion that overall corporate governance tends to have significant impact on earnings per share and reveals dichotomy of corporate governance practices based on direction of their association with share holders' value and terms them as value boosters and value dampers. It has also been found that pro-entrenchment practices tend to lower earnings per share in the listed firms either due to complacency or vested interests while rest of the practices help in enhancing value earned on each share thus endorsing the theoretical perspectives emanating out of agency and shareholder activism theories. This study emphasizes the significance of Board Attendance, Board Independence, Non-duality of CEOChairman Role for listed firms' value. It also shows that entrenchment acts like larger boards, directors' ownership, large block holders and disclosure of such ownership can adversely impact the firms' value and thus play a significant role in scaring away the potential investors who primarily look at earnings per share for buying of stocks of a particular company. It entails policy implications that implementation of counter-entrenchment regulations needs strengthening as the existing seem to have cosmetic effect. Identification and implementation of good governance practices can be best ensured when propagated in the perspective of value enhancement.

Board Composition and Governance Dilemma at Magna International

2014 ◽  
Vol 3 (2) ◽  
pp. 207-220
Author(s):  
Eduardo Schiehll ◽  
Gokhan Turgut ◽  
Elise Demers
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Board Composition ◽  
Board Structure ◽  
Minority Shareholders ◽  
Board Diversity ◽  
Publicly Traded Companies ◽  
Governance Practices ◽  
The Board Of Directors ◽  
Governance Roles

The primary subject matter of this case study is board composition and the governance roles of the board of directors in publicly traded companies. It is designed to supplement a text chapter or other material on the monitoring and advisory roles of directors and how board structure and composition impact these roles. The case is also designed to allow students to identify and assess governance issues related to firm ownership structures, family-owned or controlled companies, ethical conduct of the board of directors and conflicts between majority and minority shareholders. The case is sufficiently detailed to allow discussing the multidimensional aspects of board composition (or board diversity), including gender, ethnicity, expertise, experience and prestige. It is structured as a chronological description of the controversy generated by a proposed related party transaction (a buyout transaction) designed to dismantle a dual-share capital structure that allowed the Stronach family to control the company (Magna International Inc.) with just a fraction of its equity. The case can serve as the basis for both short case assignments and class discussions. It is appropriate for undergraduate and graduate courses in strategic management, leadership, corporate governance and financial accounting. The topic is relevant and current, as it can be related to the ongoing reforms of Canadian corporate governance practices for controlling shareholders and related party transactions.

scholarly journals CORPORATE GOVERNANCE PRACTICES AND ITS EFFECT ON CORPORATE FINANCIAL PERFORMANCE: A PRAGMATIC EVIDENCE FROM MALAYSIA

2020 ◽  
Vol 3 (01) ◽  
pp. 177-194
Author(s):  
Muhammad Tahir Khan ◽  
Haseeb Ur Rehman ◽  
Arsalan Arsalan Hashmi
Keyword(s):  
Corporate Governance ◽  
Good Governance ◽  
Governance Structure ◽  
Governance Mechanism ◽  
Governance Mechanisms ◽  
Corporate Scandals ◽  
Corporate Governance Mechanisms ◽  
Governance Practices ◽  
Financial Scandals ◽  
External Governance

Current corporate governance failure and financial scandals are the reason for the governance mechanism due to ignoring the adoption of governance mechanisms in corporate practices. The main objective of the paper is to investigate the association between governance mechanism corporate performances based on extant literature and to put a light on the current governance mechanism in the Malaysian firms. This paper emphasizes the compliance of governance mechanism and the role of MCCG in improving the performance of corporate firms. This paper highlights the issues, current corporate scandals, and failure of corporate governance mechanisms in the first and second decades of the 21st century. Various scandals and misconduct are discussed to report the problems allied to corporate governance. This paper addresses the various corporate governance theories, models, and good governance structure. The internal and external governance mechanisms have been discussed in detail to put a light on its influence on corporate performance

Board structure in listed firms: evidence from an emerging economy

2014 ◽  
Vol 14 (3) ◽  
pp. 382-394 ◽  
Author(s):  
Beyza Oba ◽  
Elvin Tigrel ◽  
Pinar Sener
Keyword(s):  
Corporate Governance ◽  
Boards Of Directors ◽  
Good Governance ◽  
National Level ◽  
Institutional Context ◽  
Emerging Economy ◽  
Board Structure ◽  
Content Type ◽  
Listed Firms ◽  
Governance Practices

Purpose – This paper aims to understand the determinants of board structure of listed firms at institutional, industry and firm levels within an emerging economy. At the institutional level, the paper explores laws, managerial culture and the role of state in instituting and endorsing corporate governance practices. At the firm level, ownership patterns (family and non-family), experience in the capital markets, age and size of the firms are studied to find out the relation between these variables and the board structure. Design/methodology/approach – The research domain of the study is listed firms operating on the Istanbul Stock Exchange. The data for the study are collected at two phases; at the first phase, compliance reports, annual reports, articles of association and annual shareholders’ meeting reports of each firm in the sample are analyzed. At the second stage, secondary data are used for understanding the dynamics of Turkish institutional context. Findings – The results of this study reveal that boards of directors of listed Turkish firms comply with the governance practices instituted by state agencies, except on issues as independent members and committees that will influence the majority owners’ control domain and private benefits. Originality/value – This paper draws attention on institutional context and argues that “good governance” instruments developed for Anglo-Saxon stock market-controlled business systems provide limited explanation for an emerging economy that is characterized by close cooperation between the state, family-owned businesses and financial markets. The study offers insight to policy makers at a national level, interested in developing corporate governance principles regarding boards of directors of listed firms.

Earnings opacity and corporate governance for Chinese listed firms: the role of the board and external auditors

2020 ◽  
Vol 28 (4) ◽  
pp. 487-515 ◽  
Author(s):  
Wing Him Yeung ◽  
Camillo Lento
Keyword(s):  
Corporate Governance ◽  
Reporting Quality ◽  
Listed Companies ◽  
Content Type ◽  
Listed Firms ◽  
External Auditors ◽  
Corporate Governance Mechanisms ◽  
Chinese Listed Companies ◽  
The Board Of Directors

PurposeThe purpose of this paper is to investigate the relationship between corporate governance and earnings opacity in China.Design/methodology/approachTwo corporate governance mechanisms form the basis of the analysis: 1) the board of directors and 2) the external audit function. OLS regression analysis is employed on a large sample from 2000 to 2014 with 20,235 firm-year observations.FindingsCorporate governance is found to be associated with reduced levels of earnings opacity for Chinese listed companies. Furthermore, the association between corporate governance and reduced levels of earnings opacity strengthened after the implementation of various key reforms.Practical implicationsChinese regulators are advised to proceed with caution as not all Western approaches to corporate governance are transferrable to the Chinese setting.Originality/valueThis study contributes to the literature by analyzing broad latent constructs of corporate governance in addition to individual observable dimensions in order to reveal that various key reforms have been successful in strengthening the link between governance and reporting quality for Chinese listed companies.

scholarly journals Firm age, value, performance and corporate governance in Brazil

2016 ◽  
Vol 13 (4) ◽  
pp. 8-12 ◽  
Author(s):  
Rodrigo Leite ◽  
Andre Carvalhal
Keyword(s):  
Corporate Governance ◽  
Life Cycle ◽  
Optimal Level ◽  
Firm Age ◽  
Listed Firms ◽  
Governance Practices ◽  
And Performance ◽  
Market Changes

Several articles analyze the life cycle of firms and identify throughout time that their performance has an inverted U shape. Firms achieve an optimal level and, thereafter, decline due to lack of flexibility and difficulties to keep up with market changes. The objective of this study is to investigate whether there is a relation between firm age, value and performance in Brazilian companies, and we verify if firm age has an affect on their governance practices. We analyze 250 Brazilian listed firms from 2002 to 2009. Our results indicate that the relation is not shaped as an inverted U in Brazil, and that older firms show higher value and better return on their investments. We also report that older firms show better governance practices.

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