scholarly journals Corporate Governance and Performance of Firms Listed on the Nairobi Securities Exchange

2018 ◽  
Vol 6 (01) ◽  
Author(s):  
Edward Kobuthi ◽  
Peter K’Obonyo ◽  
Martin Ogutu
Keyword(s):  
Corporate Governance ◽  
Main Tool ◽  
Internal Audit ◽  
Annual Reports ◽  
Good Corporate Governance ◽  
Governance Practices ◽  
And Performance ◽  
Code Of Corporate Governance ◽  
Transparency And Disclosure ◽  
And Control

The purpose of this study was to establish the effect of corporate governance on performance of firms listed on the Nairobi Securities Exchange (NSE). The author developed a corporate governance index as a proxy for corporate governance based on the seven attributes of the recently revised Capital Markets Authority (CMA) draft code of corporate governance practices for public listed companies in Kenya. The guidelines cover board operations and control, rights of shareholders, stakeholder relations, ethics and social responsibilities, accountability, risk management and internal audit, transparency and disclosure and supervision and enforcement. The survey questionnaire was the main tool of data collection and was distributed to 56 CEOs and corporation secretaries. The response rate was 87.5%. Annual reports for 2015 were used to compute the CGI score for the different organizations. The study found a statistically significant relationship between corporate governance and non-financial performance of firms listed on the Nairobi Securities Exchange confirming that organizations can enhance their performance by implementing good corporate governance, specifically those attributes of good corporate governance that matter.

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 The Tink’s saga? Is it the Time for the Corporate Governance?

2020 ◽  
Author(s):  
Eleandra Maria Prigol Meneghini ◽  
Ana Paula Pereira dos Passos ◽  
Jeferson Lana
Keyword(s):  
Decision Making ◽  
Corporate Governance ◽  
Conflicts Of Interest ◽  
Corporate Management ◽  
Information Asymmetries ◽  
Teaching Case ◽  
Good Corporate Governance ◽  
Governance Practices ◽  
And Control ◽  
Gains And Losses

Objective: To promote a discussion on the benefits and challenges of the process of implementing mechanisms and good corporate governance practices in a multifamily company. Method: the case was based on real problems of a privately held multifamily organization and fictitious narratives were developed for its construction. Originality/relevance: Multifamily companies potentialize the existence of conflicts between the main ones due to the plurality of partners regarding corporate management and control. In this teaching case, some of these dilemmas were presented and how corporate governance could avoid, mitigate or remedy them in order to find adequate alignment between family members. Results: Conflicts of interest and information asymmetries indicated the need for new solutions for business continuity. Among these solutions, there was the possibility of implementing mechanisms and good corporate governance practices. Theoretical/methodological contributions: It is expected that the student develops an understanding of the need to consider inherent gains and losses in decision making and the particularities of the organization, such as shareholder composition, maturity of the organization and protection of capital and property.

scholarly journals A Study on Corporate Governance Disclosures in Selected Housing Finance Companies in India

2021 ◽  
Author(s):  
Suguna Margana ◽  
Sheela.p. Paluri
Keyword(s):  
Corporate Governance ◽  
Firm Value ◽  
Housing Finance ◽  
Annual Reports ◽  
Good Corporate Governance ◽  
Governance Practices ◽  
Governance Challenges ◽  
Effective Level ◽  
Degree Of Association ◽  
Clause 49

Abstract Every company across the globe today focuses on basic principles of good corporate governance for performing efficiently and to enhance their valuation in the market. A good corporate can generate the source of attracting capital, foreign investment, investors’ trust, confidence, and also take advantage of the vibrant stock market. Corporate governance is a code of business conduct and ethics that would greatly benefit the companies to thrive and prosper. The outcome of the literature review was that even though the disclosures are made mandatory, there is a large variation in the quality of corporate governance disclosure practices adopted by companies listed in different countries. Empirical research done earlier has also proved that good corporate governance practices being followed enhances the firm value. Housing finance companies face unique corporate governance challenges due to myriad reasons like ownership structures, lack of transparency, and insufficient checks on inappropriate activities. Despite the ‘corporate governance revolution’, there exists no universal benchmark for the effective level of disclosure and transparency. Corporate governance practices followed in business firms are communicated through the corporate governance section of annual reports. clause 49 of the listing agreement sets a detailed corporate governance provision to be followed by listed companies in India. This study aimed at evaluating the governance practices in Housing Finance Companies against disclosure requirements of clause 49. Housing Finance companies that are listed in the NSE are taken into consideration as the sample for the study. Kendall’s coefficient of concordance is used for determining the degree of association among several (k) sets of ranking of N objects or individuals.

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.

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.

Theoretical Disclosure of Board Independence

2021 ◽  
pp. 213-237
Author(s):  
Aarooj Kiran ◽  
Ayesha Ibrahim
Keyword(s):  
Corporate Governance ◽  
East Asian ◽  
Institutional Context ◽  
Independent Directors ◽  
Board Independence ◽  
Corporate Scandals ◽  
Good Corporate Governance ◽  
Governance Practices ◽  
Code Of Corporate Governance ◽  
The Impact

In the wake of corporate scandals in major companies like Enron, Tyco, and East Asian crisis have emphasized the need of sufficient number of independent directors on the board for proper oversight and functioning of the company. Code of corporate governance recommends the presence of independent directors for better performance of the company. As board independence ensured good corporate governance practices, it is considered that having independent directors on the board is not for better performance but for better governance. In seeking reasonable answer for these arguments, the purpose of this study is to review some of the literature of board independence with respect to corporate governance theories specifically agency theory, stewardship, and resource dependency theory. All these theories have provided mixed evidences in different studies about the impact and importance of board independence and reason behind these mixed evidences might be the institutional context of different organizations in different countries.

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.

Corporate Governance and Performance of Shariah-Compliant Companies

2020 ◽  
pp. 547-566
Author(s):  
Mustafa Bin Mohd Hanefah ◽  
Muhammad Iqmal Hisham Kamaruddin ◽  
Rosnia Masruki ◽  
Mohd Marzuki Ismail
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Negative Correlation ◽  
Consumer Products ◽  
Board Size ◽  
Governance Practices ◽  
And Performance ◽  
Using Data ◽  
Code Of Corporate Governance ◽  
The Relationship

This chapter examines the relationship between corporate governance practices and firm performance. The characteristics of the board of Shari'ah-compliant companies in consumer products counter of Bursa Malaysia were examined against the firm's performance using data from 77 companies from 2014 to 2016. Based on the result of multiple regression; board size, Muslim chairman, and Muslim director have a weak positive correlation with the performance of the firms. However, directors with Shari'ah background seem to have a negative correlation with the performance of the firms. The findings of the chapter would be very useful to the regulators to improve the Malaysian Code of Corporate Governance (MCCG). The findings also help to fill the gap on scarce literature that study the relationship between the corporate governance practices involving Muslim characteristics and performance.

Corporate Governance: Board Structure, Information Technology and CSR Reporting

2013 ◽  
Vol 64 (2) ◽  
Author(s):  
Yew Choong Wong ◽  
Norkhairul Hafiz Bajuri
Keyword(s):  
Information Technology ◽  
Corporate Governance ◽  
Board Structure ◽  
Structure Information ◽  
Csr Reporting ◽  
Good Corporate Governance ◽  
Governance Practices ◽  
Investment Capital ◽  
And Performance ◽  
Corporate Social

Good corporate governance practices are considered vital for attracting investment capital, improving the performance of companies and reducing risk for investors. This paper provides some general overviews on board structure, information technology (IT) and corporate social responsibility (CSR) reporting. This paper also discusses the various theories related to corporate governance in order to understand the corporate phenomena. This is important to understand each of the theory concept and its implications. These theories include agency theory, stewardship theory, stakeholder theory, resource dependency theory and legitimacy theory. Certainly, board structure, IT and CSR have significant bearing on a firm’s state of corporate governance and performance.

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