Board Size, Intensity of Board Activity, and Financial Performance of SMEs: Examining the Mediating Roles of Access to Capital and Firm Reputation

2015 ◽  
Vol 3 (2) ◽  
pp. 26-41 ◽  
Author(s):  
Abraham Ansong
Keyword(s):  
Financial Performance ◽  
Board Size ◽  
Firm Reputation

Impact of corporate governance on financial performance of sugar sector firms listed in Pakistan stock exchange

2019 ◽  
Vol 12 (2) ◽  
Author(s):  
Muhammad Wasim Jan Khan ◽  
Usman Saeed
Keyword(s):  
Developing Countries ◽  
Corporate Governance ◽  
Financial Performance ◽  
Firm Size ◽  
Stock Exchange ◽  
Balance Sheet ◽  
Board Size ◽  
Return On Equity ◽  
Firm Financial Performance ◽  
Relationship Of

Corporate governance is considered as environment of trust, set of processes, policies and laws affecting the way corporations are administrated and directed. The previous literature in context of the corporate governance relationship with firm financial performance shows controversial findings; similarly literature shows lack of studies in context of developing countries as Pakistan. Therefore, this research explores the relationship of the corporate governance and the firm financial performance in context of developing country as Pakistan. The data has been collected from the sugar sector listed in KSE (Pakistan Stock Exchange), 20 corporations are selected as sample from sugar sector on basis of outstanding shares. Corporate governance taken as independent variable and measured as CEO biformity (CB), board size (BS), firm age (FA), firm size (FS). Financial performance of firms taken as dependent variable and measured as return on asset (ROA), return on equity (ROE), net profit margin (NPM). Data is collected for period of 2000-2013 from reports of the sugar companies listed in KSE (Pakistan Stock Exchange) issued annually and analysis of balance sheet given by State Bank of Pakistan (SBP). Result shows that CEO biformity significantly affecting firm financial performance. Board size (BS) shows partially significant impact on firm financial performance. Firms age (FA) show partially significant impact on firm financial performance. Firm size (FS) shows partially significant impact on firm financial performance. Therefore, conclusion has been drawn based on the results of analysis that this study adds new knowledge to the existing body of knowledge of corporate governance impact on firm financial performance and in context of developing countries as Pakistan. Keywords: Corporate governance, firm financial performance, sugar sector, Pakistan.

scholarly journals Impact of Corporate Governance on Financial Performance: Karachi Stock Exchange, Pakistan

2016 ◽  
Vol 6 (2) ◽  
pp. 401 ◽  
Author(s):  
Aon Waqas Awan ◽  
Javed Ahmed Jamali
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Audit Committee ◽  
Stock Exchange ◽  
Profit Margin ◽  
Audit Committees ◽  
Board Size ◽  
Good Decision ◽  
Return On Equity ◽  
The Impact

The aim of the research is to understand the impact of corporate governance on financial performance of listed companies on Karachi Stock Exchange Pakistan. Data was collected from forty two companies from different sectors like, insurance, banking, investment banking, and sugar industries. Study includes variables like profit margin & return on equity as a dependent (profitability) and board size, audit committee, annual general meetings & chief executive office (corporate governance). Using Pooled OLS, the result of the study proved those board size and audit committees have positive relationship with Profit margin and Return on Equity, if any independent variable changes it also stimulus the positively changing impact on Return on Equity (ROE) and Audit Committee (AC). This research offers imminent guidelines to the policy and decision makers in any type of firms to take good decision to set their firms hierarchy system.

scholarly journals TATA KELOLA DAN KINERJA KEUANGAN BADAN USAHA MILIK NEGARA (BUMN) GO PUBLIC PERIODE 2014-2018

2021 ◽  
Vol 10 (1) ◽  
pp. 82-101
Author(s):  
Andika Dwi Pradito ◽  
Axel Giovanni ◽  
Devi Wahyu Utami
Keyword(s):  
Corporate Governance ◽  
Linear Regression ◽  
Financial Performance ◽  
Empirical Evidence ◽  
Audit Committee ◽  
Stock Exchange ◽  
Analytical Tool ◽  
Board Independence ◽  
Government Ownership ◽  
Board Size

Abstrak: Tata Kelola Dan Kinerja Keuangan Badan Usaha Milik Negara (BUMN) Go Public Periode 2014-2018. Penelitian ini bertujuan untuk memberikan bukti empiris mengenai pengaruh tata kelola perusahaan terhadap kinerja keuangan Badan Usaha Milik Negara (BUMN) yang terdaftar di Bursa Efek Indonesia (BEI) selama periode 2014-2018. Sampel penelitian yang memenuhi kriteria berjumlah 12 Badan Usaha Milik Negara (BUMN). Alat analisis yang digunakan adalah regresi linear. Hasil penelitian memberikan bukti mengenai urgensi komite audit dalam tata kelola perusahaan. Penelitian ini juga menunjukan bahwa board size, board independence serta kepemilikan pemerintah tidak memiliki peran dalam menjelaskan variabilitas kinerja keuangan Badan Usaha Milik Negara (BUMN).Kata kunci: Badan Usaha Milik Negara (BUMN), kinerja keuangan, tata kelola perusahaanAbstract: Governance and Financial Performance of State-Owned Enterprises (SOEs) Go Public Period 2014-2018. This study aims to provide empirical evidence regarding the effect of corporate governance on the financial performance of State-Owned Enterprises (SOEs) listed on the Indonesia Stock Exchange (IDX) during the 2014-2018 period. Research samples that met the criteria totaled 12 State-Owned Enterprises (BUMN). The analytical tool used is linear regression. The results of the study provide evidence of the urgency of the audit committee in corporate governance. This study also shows that board size, board independence, and government ownership do not have a role in explaining the variability in the financial performance of SOEs.Keywords: corporate governance, financial performance, state-owned enterprises (SOEs)

scholarly journals Corporate Governance And Its Effect On Firm Performance In An Emerging Economy

2022 ◽  
Vol 2 (3) ◽  
pp. 281-291
Author(s):  
Langa Esmael KAREM ◽  
Hawkar Anwer HAMAD ◽  
Hakar Abubakir BAYZ ◽  
Naji Afrasyaw FATAH ◽  
Diary Jalal ALI ◽  
...  
Keyword(s):  
Financial Performance ◽  
Business Processes ◽  
Board Members ◽  
Board Composition ◽  
Return On Assets ◽  
Board Size ◽  
Cross Sectional ◽  
The Impact ◽  
The Relationship ◽  
Board Ownership

Having a board of directors is very important to ensure the smooth running of business processes and have an impact on the company's financial performance. This study to determine the impact of board characteristics namely board size, board ownership and board composition on the financial performance of organizations as measured by Return on Assets. The study employed a descriptive-explanatory research design based on a cross-sectional approach. Correlation and regression analyses were conducted to determine the depth and extent of the relationship between the variables. The study revealed a positive and significant association between the board size and financial performance on an average of 9 board members. Board composition revealed that having more external directors had no effect on the financial performance, it neither increased it nor decreased it, leading to the rejection of the hypothesis. On the other hand, board ownership was found to be beneficial in terms of having directors as owners of the business, corroborating the Stakeholder Theory. The studies showed that there was still a need to select board members with caution striking a balance between the number of directors as well as their composition to ensure that the organization reaps maximum benefits from the board.

scholarly journals Corporate Board Diversity and Financial Performance: The Nigerian Insurance Sector’s Perspective

Growth ◽  
2020 ◽  
Vol 7 (1) ◽  
pp. 20-25
Author(s):  
Gbarato, Ledum Moses
Keyword(s):  
Financial Performance ◽  
Gender Diversity ◽  
Negative Influence ◽  
Least Square ◽  
Insurance Companies ◽  
Board Members ◽  
Board Composition ◽  
Corporate Board ◽  
Board Size ◽  
Board Diversity

The presence of appropriate gender diversity, board size and board composition does not only promote favourable organizational ambience but also offers meaningful upsurge in the financial position of an organization relatively. It is on this premise that prompted the essence to examine the relationship between corporate board diversity and financial performance of insurance companies in Nigeria for the period 2014 to 2018. Secondary data from Cornerstone Insurance Plc. and Lasaco Assurance Plc. were employed in the study. Using the Panel least Square regression technique, the results reveal that gender diversity, board size and board composition exert insignificant influence on profit before tax as the measure of financial performance. However, while gender diversity exerts negative influence, board size and board composition exert positive influences on profit before tax of insurance companies. The study concludes that employment of appropriate number of directors and also in suitable composition as board members have positive effect on the financial performance of insurance firms. Therefore, the study recommended among others, that: appropriate ratio of executive to independent non-executive directors should be maintained among board members for better decision-making at the interest of all stakeholders. Also, the ratio of gender diversity (female to male directors) should be increased as the role of women in resource management cannot be relegated to the background especially in financial performance of insurance companies.

scholarly journals The South African code of corporate governance. The relationship between compliance and financial performance: Evidence from South African publicly listed firms

2015 ◽  
Vol 12 (2) ◽  
pp. 149-169 ◽  
Author(s):  
Jonty Tshipa ◽  
Thabang Mokoaleli-Mokoteli
Keyword(s):  
South Africa ◽  
Corporate Governance ◽  
Firm Performance ◽  
Financial Performance ◽  
South African ◽  
Small Firms ◽  
Large Firms ◽  
Board Size ◽  
Tobin's Q ◽  
Listed Firms

Using both Return On Assets (ROA) and Tobin’s Q as proxies for performance, the study seeks to explore if better governed firms exhibit greater financial performance than poorly governed firms. The paper employs a panel study methodology for a sample of 137 Johannesburg Stock Exchange (JSE) listed firms between 2002 and 2011. The results show that the compliance levels to corporate governance in South Africa (SA) has been improving since 2002 when King II came into force. However, the compliance level in large firms appears to be higher than in small firms. Further, the findings show that the market value of large firms is higher than that of small firms. These results largely support the notion that better governed firms outperforms poorly governed firms in terms of financial performance. Notably, the empirical results indicate that board size, CEO duality and the presence of independent non-executive directors positively impact the performance of a firm, whereas board gender diversity, director share-ownership and frequency of board meetings have no impact on firm performance. This suggests that greater representation of independent non-executive director, a larger board size and the separation of CEO and Chairman should be encouraged to enhance firm performance. Unexpectedly, the presence of internal key board committees, such as remuneration, audit and nomination, negatively impact firm performance. Similar to UK, South Africa has a flexible approach to corporate governance, in which listed firms are required to apply or explain non-conformance to King recommendations. This study has policy implications as it determines whether the flexible corporate governance approach employed by SA improves corporate governance compliance than the mandatory corporate governance approach as employed by countries such as Sri Lanka and US, and whether compliance translates into firm performance. The significant finding of this study is that compliant firms enjoy a higher firm performance as measured by ROA and Tobin’s Q. This implies that compliance to corporate governance code of practice matters, not just as box ticking exercise but as a real step change in the governance of South African listed firms. This paper fulfils an identified need of how compliance to corporate governance influences firm performance in South Africa. The findings have implications to JSE listing rules, policy, investor confidence and academia.

scholarly journals The effect of corporate governance on financial performance of rural banks in Ghana

2021 ◽  
Vol 2 (4) ◽  
pp. 305-319
Author(s):  
Alhassan Musah ◽  
Mavis Yaa Adutwumwaa
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Gender Diversity ◽  
Secondary Data ◽  
Positive Association ◽  
Board Independence ◽  
Governance Structures ◽  
Board Size ◽  
Ceo Duality ◽  
Board Gender Diversity

Purpose: The study examined the influence of various corporate governance structures such as board size, board independence, board gender diversity and CEO duality on the financial performance of rural banks in Ghana. Research methodology: The study collected secondary data from the annual report of 30 rural banks for a 10-year period spanning 2010 to 2019. The data was coded into excel and exported into STATA where descriptive statistics, correlation analysis and regression analysis were adopted to answer the research questions. Results: The result shows that there was a positive but statistically insignificant association between CEO duality and ROA and ROE. The study further reveals a positive association between board size and ROA and ROE even though that of ROA was statistically insignificant. Also, board independence was found to be a significant determinant of rural bank financial performance In addition to the above, the study reported a negative association between gender diversity on the boards of the rural bank and ROA and ROE and both associations were statistically significant. Limitations: As a result of the lack of publicly available data on rural banks in Ghana, the study relied on only 30 out of the over 100 rural banks currently operating across the country. Contribution: The result of the study will help the Bank of Ghana and the ARB Apex Bank in their formulation of an appropriate corporate governance framework for rural banks in Ghana and enlighten managers of rural banks on corporate governance structures that enhance their financial performance in Ghana. Keywords: Corporate governance, Rural banks, Return on Assets, Return on Equity, Ghana

scholarly journals Corporate Governance and Financial Performance of Nepalese Commercial Banks

2020 ◽  
Vol 13 (1) ◽  
pp. 40-50
Author(s):  
Mohan Prasad Sapkota
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Commercial Banks ◽  
Negative Impact ◽  
Ownership Concentration ◽  
Positive Contribution ◽  
Board Meeting ◽  
Board Size ◽  
Leverage Ratio ◽  
The Impact

This paper focuses on determining the relationship between corporate governance and financial performance of Nepalese commercial banks as well as examining the impact of corporate governance on banks performance. The sample consists of 9 commercial banks for the 10 year period of 2008/09 to 2017/18. Corporate governance is considered as leverage ratio, board meeting, board size and ownership concentration had mixed results on banks performance measured by ROE. Evidence indicates that debt ratio, net interest margin and total assets have significant positive contribution on banks performance. Board meeting and liquidity have negative impact on banks performance. However, board size and ownership concentration have no significant contribution to the firm performance.

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