Corporate Governance Mechanisms and Chief Executive Officer (CEO)  Duality Evidence from the Food Industry of Iran

Oil and gas industry is considered as the sector that contributes a big share to the Nigeria economy. This study investigated the effects of corporate governance mechanisms, sensitive factors on earnings management of quoted oil and gas firms in Nigeria using the sample of nine (9) listed oil and gas firms for the period of ten years (2004-2013). Discretionary current accruals was used as the proxy for earnings management. Corporate governance mechanisms (boards size, chief executive officer (CEO) duality, directors’ ownership, audit committee size, audit committee independence), sensitive factors (corporate tax, corporate profit, corporate social responsibility) served as independent variables. The study concludes that corporate governance mechanisms curves earnings management while sensitive factors increase earnings management. The study recommends that corporate governance regulations should be strengthened to reflect present challenges.

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Equity incentives, earnings management and corporate governance: Empirical evidence using UK panel data

Corporate Ownership and Control ◽

10.22495/cocv17i2art10 ◽

2020 ◽

Vol 17 (2) ◽

pp. 104-123 ◽

Cited By ~ 1

Author(s):

Mohamed A. Shabeeb Ali ◽

Hazem Ramadan Ismael ◽

Ahmed H. Ahmed

Keyword(s):

Corporate Governance ◽

Panel Data ◽

Earnings Management ◽

Chief Executive ◽

Governance Mechanisms ◽

Governance System ◽

Data Set ◽

Equity Incentives ◽

Corporate Governance Mechanisms ◽

The Relationship

Using a UK panel data set drawn from 1675 Chief Executive Officer (CEO) year observations and 1540 Chief Financial Officer (CFO) year observations, we examine the relationship between CEO and CFO equity incentives and earnings management. In addition, we examine the moderation effect of corporate governance mechanisms on the relationship between executives’ equity incentives and earnings management. We use multivariate regression models to test our hypotheses. We find that CEO equity incentives are related to higher absolute and income increasing earnings management. These results support the managerial power theory argument that CEOs exploit equity-linked compensation to obtain more personal benefits without causing public anger. Contrary to CEO equity incentives, we could not find any significant relationship between CFO equity incentives and any of the earnings management proxies. In addition, we find that corporate governance quality (measured by individual mechanisms and overall index) has no effect on the relationship between executives’ equity incentives and earnings management. This result indicates that whereas some corporate governance mechanisms can reduce earnings management in general, they do not affect wealth driven incentives to manipulate accruals. In total, results question the effectiveness of the corporate governance system in mitigating opportunistic behavior motivated by executives’ compensation structures

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Corporate governance mechanisms and firm performance in a developing country

International Journal of Law and Management ◽

10.1108/ijlma-03-2019-0076 ◽

2020 ◽

Vol 62 (2) ◽

pp. 147-169 ◽

Cited By ~ 2

Author(s):

Albert Puni ◽

Alex Anlesinya

Keyword(s):

Corporate Governance ◽

Firm Performance ◽

Financial Performance ◽

Governance Mechanisms ◽

Board Size ◽

Ceo Duality ◽

Content Type ◽

Board Committees ◽

Discourse Practices ◽

Corporate Governance Mechanisms

Purpose The purpose of this study is to examine the influence of corporate governance mechanisms recommended by the Securities and Exchange Commission (SEC) of Ghana on firm performance as measured by accounting-based ratios (return on assets, return on equity and earning per share) as well as market-based measure (Tobin’s Q) among listed Ghanaian companies from 2006 to 2018. These mechanisms are: board composition (board size, inside directors and outside directors), board committees (audit, remuneration and nomination), chief executive officer (CEO) duality/separation, board meetings and shareholder concentration. Design/methodology/approach The study used panel regression analysis of data from 38 listed firms in Ghana from 2006 to 2018 to test how each corporate governance variable initiated by the SEC of Ghana contributed to firm performance. Data were extracted from the annual reports of listed companies. Findings The study found that the presence of both insiders and outsiders on the corporate board improved financial performance. Similarly, board size, frequency of board meetings and shareholder concentration/ownership structure generally had a positive impact on financial performance. However, the presence of board committees generally had a negative impact on financial performance while CEO duality had no impact on financial performance. Practical implications The study contributes to the understanding of how good corporate governance practices affect firm performance for both academics and particularly Ghanaian policymakers. Originality/value This study provided new findings to bridge the gaps in the general corporate governance literature relative to the lack of consensus on financial impacts of corporate governance mechanisms. The finding contributes to knowledge by providing new and original evidence that some current corporate governance mechanisms are not effective in minimizing the agency problem in a developing setting. Furthermore, the authors anticipate that the outcomes of this research, which so far is the most comprehensive study in the Ghanaian context in terms of the coverage of corporate governance mechanisms specified by the SEC of Ghana, can significantly shape corporate governance discourse, practices and policies in Ghana, particularly and in other developing countries generally to improve financial performance and corporate sustainability.

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Research and development accounting treatment: effects of CEO characteristics and corporate governance mechanisms

International Journal of Accounting and Economics Studies ◽

10.14419/ijaes.v5i2.8091 ◽

2017 ◽

Vol 5 (2) ◽

pp. 124

Author(s):

Sana Triki Damak

Keyword(s):

Corporate Governance ◽

Research And Development ◽

Audit Quality ◽

Chief Executive ◽

Governance Mechanisms ◽

Accounting Standard ◽

Financial Firms ◽

Corporate Governance Mechanisms ◽

Development Accounting ◽

Ceo Characteristics

This study aims to examine empirically the influence of Chief Executive Officer (CEO) characteristics and corporate governance mechanisms on Research and Development (R&D) capitalization in France.Using data drawn from a sample of non-financial firms listed in SBF 120, this study provides empirical evidence for the influence of CEO characteristics and audit quality on R&D capitalization. As results, we find that R&D capitalization is likely to be increased in firms managed by younger managers, CEOs with higher ownership, shorter tenure and higher educational level. Also, R&D capitalization is likely to be increased in firms with lower audit quality, in higher leveraged firms, in less performed and larger firms.This study offers insights to investors and accounting standard setters interested about the subject of R&D capitalization determinants. Importantly, it confirms that some CEO characteristics and corporate governance mechanisms are likely to affect the CEO’s behavior regarding the R&D accounting treatment.

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SMEs Corporate Governance Mechanisms and Business Performance: Evidence of an Emerging Economy

Journal of Governance and Integrity ◽

10.15282/jgi.5.1.2021.6970 ◽

2021 ◽

Vol 5 (1) ◽

pp. 155-169

Author(s):

Ronald Essel ◽

Emmanuel Addo

Keyword(s):

Corporate Governance ◽

Chief Executive Officer ◽

Business Performance ◽

Gender Diversity ◽

Chief Executive ◽

The Body ◽

Data Availability ◽

Annual Reports ◽

Governance Mechanisms ◽

Extant Literature

This paper empirically examines the nexuses between SMEs governance mechanisms [board size (BS), board composition (BC), chief executive officer duality (CEOD), chief executive officer tenure (CEOT), board meetings (BMET), gender diversity (GEND), firm size (SZ) and firm age (AGE)] and business performance (BP) [ROA and Tobin’s Q]. The study deployed panel data multivariate regression via fixed effect for its analysis. By using annual reports of 124 Ghanaian SMEs selected on the basis of data availability, covering 2010-2019, the paper explored SMEs governance-performance-connexion by following the methodologies of researchers/scholars in extant literature. Findings/Results indicates that, there exists positive relationships among CEOT, BMET, SZ and AGE and BP. Nevertheless, BS, BC, CEOD and GEND depicted negative relationships with BP. Findings showed there are mixed results vis-à-vis governance mechanisms and BP. Findings further connote that; Ghanaian SME sector have distinctive attributes and may respond differently to governance mechanisms. Stakeholders will be abreast of the happenings in the Ghanaian SME sector for improved governance mechanisms. This paper contributes to the body of knowledge in extant literature on corporate governance and BP in the SME sector from an emerging economy’s perspective.

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Internal Corporate Governance Mechanisms and Corporate Tax Avoidance in Nigeria: A Quantile Regression Approach

Jurnal Ilmiah Akuntansi dan Bisnis ◽

10.24843/jiab.2021.v16.i01.p02 ◽

2021 ◽

Vol 16 (1) ◽

pp. 20

Author(s):

Francis Chinedu Egbunike ◽

Ardi Gunardi ◽

Udunze Ugochukwu ◽

Atang Hermawan

Keyword(s):

Corporate Governance ◽

Quantile Regression ◽

Audit Committee ◽

Tax Avoidance ◽

Board Independence ◽

Manufacturing Companies ◽

Governance Mechanisms ◽

Board Size ◽

Ceo Duality ◽

Corporate Governance Mechanisms

The main objective of the study was to investigate the effect of corporate governance on tax avoidance of quoted manufacturing firms in Nigeria. The study focused on internal corporate governance mechanisms and specifically examined the effect of board size, board independence, board diligence, CEO duality, and audit committee diligence. The ex post facto research design was adopted. The population comprised of all quoted manufacturing companies on the Nigerian Stock Exchange (NSE). The sample was purposively drawn as all companies in the consumer goods sector of the NSE. The study relied on secondary data obtained from annual reports and accounts of the sampled companies. Both descriptive and inferential statistics were used to analyze the data. The hypotheses were validated using Quantile Regression technique. Results showed that board size, board independence, and board diligence were significant at the median and 75th quantile. CEO duality and audit committee diligence were not significant at the 25th, 50th, and 75th quantile. The study recommended among others moderate board sizes to improve efficiency of decision-making. In addition, the need for more independent directors and meeting frequency should be tailored to suit the needs of the company. Keywords: corporate governance mechanisms, tax avoidance, quantile regression

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Corporate Governance in Portugal

Advances in Finance, Accounting, and Economics - Comparative Research on Earnings Management, Corporate Governance, and Economic Value ◽

10.4018/978-1-7998-7596-3.ch008 ◽

2021 ◽

pp. 147-167

Author(s):

João Teodósio

Keyword(s):

Corporate Governance ◽

Chief Executive ◽

Board Independence ◽

Firm Risk ◽

Governance Mechanisms ◽

Board Size ◽

Listed Firms ◽

Corporate Governance Mechanisms ◽

Ceo Pay ◽

International Investors

This study provides a literature review of the research on the corporate governance mechanisms of Portuguese firms. Based on a sample of 47 articles published, between 2004 and 2019, it is documented that research is predominantly focused on corporate governance mechanisms as determinants of the performance on non-financial listed firms. Literature reports, in its majority, that board size decreases firm performance while CEO (Chief Executive Officer) non-duality promotes it; board size, board independence, and CEO non-duality improve the level of firms' information disclosure; CEO age is positively associated with an increase of CEO pay but CEO duality has an opposite effect; board independence increases firm risk-taking. These results should be of interest to national authorities in the development of future regulation related to firms' corporate governance and to national and international investors that intend to invest in Portuguese companies.

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The relationship between corporate governance mechanisms and the performance of Saudi listed firms

Corporate Ownership and Control ◽

10.22495/cocv14i2c2p7 ◽

2017 ◽

Vol 14 (2) ◽

pp. 338-349 ◽

Cited By ~ 1

Author(s):

Mamdouh Abdulaziz Saleh Al-Faryan

Keyword(s):

Corporate Governance ◽

Saudi Arabia ◽

Chief Executive Officer ◽

Empirical Studies ◽

Chief Executive ◽

Direct Consequence ◽

Listed Firms ◽

Corporate Governance Mechanisms ◽

Governance Practices ◽

Code Of Corporate Governance

This paper gauges, both qualitatively and quantitatively, the pertinent variables to corporate governance practices and their relationship to business productivity in the context of the Kingdom of Saudi Arabia. This study was conducted in response to the limited literature in this context. A new code of corporate governance was issued by the Saudi Arabian Capital Market Authority as a direct consequence of the 2006 stock market crash; in 2010, the code was made mandatory for listed firms. Rigorous empirical studies are practical not only for Saudi Arabia and its policy makers but also potentially for solving global investment issues and ensuring security. This study found two variables to have a significant negative relation: chief executive officer turnover and independent board members. Thus, greater rates of chief executive officer turnover are associated with negative firm performance. In addition, independent board directors’ negative value was found to be very close to zero and significant only at the 10% level. Consequently, some caution is required when considering this result.

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Corporate governance and earnings management in New Zealand

Corporate Ownership and Control ◽

10.22495/cocv10i2art4 ◽

2013 ◽

Vol 10 (2) ◽

pp. 40-55

Author(s):

Dyna Seng ◽

Justin Findlay

Keyword(s):

Corporate Governance ◽

New Zealand ◽

Earnings Management ◽

Board Of Directors ◽

Boards Of Directors ◽

Chief Executive ◽

Audit Committees ◽

Governance Mechanisms ◽

Corporate Governance Mechanisms ◽

The Board Of Directors

This paper examines the relation between corporate governance mechanisms and earnings management. Using data collected from New Zealand listed companies for the financial year ending in 2005, the results show that the size of the board of directors is significantly positively associated with earnings management. This suggests that larger boards seem to be ineffective in their oversight duties relative to smaller boards. On the other hand, the independence of the board of directors, the independent role of the board chair and chief executive officer, and the independence of audit committees are not significantly associated with earnings management. Thus, these three corporate governance mechanisms are ineffective at monitoring the discretionary choices of management. The lack of effective corporate governance in New Zealand, particularly with regard to boards of directors, is mainly due to the lack of “experience and skills required to oversee the scale, complexity, and characteristics of finance operations” (Ministry of Economic Development, 2009, p.8)

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Corporate governance and integrated reporting: evidence of French companies

Journal of Financial Reporting and Accounting ◽

10.1108/jfra-09-2020-0261 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Abir Hichri

Keyword(s):

Corporate Governance ◽

Chief Executive ◽

Audit Committees ◽

Cognitive Diversity ◽

Governance Mechanisms ◽

Integrated Reporting ◽

Content Type ◽

Corporate Governance Mechanisms ◽

The Impact ◽

The Relationship

Purpose This paper aims to draw on the agency theory to examine the relationship between corporate governance and integrated reporting on a sample of 120 listed French companies making up the SBF 120 Index during the period 2016–2019. Design/methodology/approach The methodology adopted in the present study consists of the hypothetico-deductive approach. Thus, as part of this quantitative approach, the authors aim at investigating the hypotheses concerning the impact of corporate governance mechanisms on integrated reporting. Moreover, the applied data are analyzed using the multiple linear regressions. Findings The finding of this study is that the cognitive diversity and audit committees have a positive and significant effect on integrated reporting. However, the chief executive officer’s duality and the board’s size have a positive and non-significant effect on integrated reporting. Originality/value In fact, this study contributes to the literature on the practices of integrated reporting. Faced with the rarity of studies linking the corporate governance mechanisms and the integrated reporting, this study makes a huge contribution to the determinants of integrated reporting.

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