scholarly journals Corporate Governance, Financial Characteristics, Macroeconomic Factors and Financial Performance of Agricultural Firms Listed at the Nairobi Securities Exchange, Kenya

2021 ◽  
Vol 17 (19) ◽  
pp. 71
Author(s):  
Moses Odhiambo Aluoch
Keyword(s):  
Corporate Governance ◽  
Panel Data ◽  
Financial Performance ◽  
Governance Structure ◽  
Moderating Effect ◽  
National Bureau ◽  
Macroeconomic Factors ◽  
Cash Conversion Cycle ◽  
Financial Characteristics ◽  
The Relationship

This study sought to examine the relationships between corporate governance, financial characteristics, macroeconomic factors and financial performance of agricultural firms listed at the Nairobi Securities Exchange, Kenya. The specific objectives were to establish the effect of corporate governance on financial performance; to determine the intervening effect of financial characteristics on corporate governance and financial performance; to establish the moderating effect of macroeconomic factors on corporate governance and financial performance of listed agricultural firms; and to establish the joint effect of corporate governance, financial characteristics, macroeconomic factors and financial performance of listed agricultural firms in Kenya. This study is anchored on agency theory, transaction cost theory; political theory and cash conversion cycle theory. The study used census approach and a target population of seven agricultural firms listed at the Nairobi Securities Exchange between 2002 and 2016 was incorporated. The study used panel data. Corporate governance, financial characteristics and financial performance data was extracted from annual reports of the individuals firms while macroeconomic factors data was extracted from Central Bank of Kenya and Kenya National Bureau of Statistics economic reports. The study employed longitudinal descriptive research design. Descriptive and panel data regression analysis were conducted. Corporate governance had significant effect on financial performance of listed agricultural firms in Kenya; the intervening effect of financial characteristics on the relationship between corporate governance and financial performance was not determined; the moderating effect of macroeconomic factors on the relationship between corporate governance and financial performance was confirmed; and the joint relationship between corporate governance, financial characteristics and macroeconomic factors on financial performance was established. The study recommended a review of corporate governance principles and directors to comply with corporate governance structure and practices to enhance financial performance of firms.

scholarly journals Impacto del gobierno corporativo en el valor de las empresas latinoamericanas: evidencia desde el MILA

2021 ◽  
Vol 12 (26) ◽  
pp. 73-82
Author(s):  
Sandra Milena Torres-Cano ◽  
Diego Andrés Correa-Mejía
Keyword(s):  
Corporate Governance ◽  
Panel Data ◽  
Financial Performance ◽  
Latin American ◽  
Data Model ◽  
Financial Statements ◽  
Panel Data Model ◽  
Performance Variables ◽  
The Impact ◽  
The Relationship

Corporate Governance is a mechanism that seeks to strengthen the control bodies and their efforts, by combining principles and techniques to invigorate the value of companies and generate confidence in investors and all Stakeholders. This research seeks to analyze the impact of corporate governance on the values of companies that belong to the Latin American Integrated Market (MILA). The financial statements of the 97 companies from the years 2012 to 2018 were analyzed using a statistical panel data model to establish the relationship between the corporate governance variables and the financial performance variables. Lastly, it is concluded that non-economic mechanisms such as the implementation of adequate control policies positively influence the value of companies and generate support for investors.

The relationship between women’s presence in corporate positions and firm performance

2018 ◽  
Vol 10 (1) ◽  
pp. 83-100 ◽  
Author(s):  
Jorge Moreno-Gómez ◽  
Jonathan Calleja-Blanco
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Financial Performance ◽  
Family Firms ◽  
Developing Economies ◽  
Governance Structure ◽  
Corporate Governance Structure ◽  
Content Type ◽  
Top Executive ◽  
The Relationship

Purpose The purpose of this paper is to analyze, in the Colombian developing context, the relationship between the presence of women in corporate positions and the financial performance of the company and to know if there are differences between family and non-family firms. Design/methodology/approach Building on the contingency theory of leadership, which emphasizes that leader’s personality and the situation in which that leader operates influences corporate decision-making, the authors use panel data models on a sample of 54 Colombian public businesses for the period 2008-2015 to test the proposed hypotheses on the relationship between women´s presence in corporate governance positions and financial performance, as well as the difference between family and non-family firms. Findings The results support that women´s presence in corporate governance positions is positively associated with firm performance. More concretely, the authors find a relationship between women at the top corporate governance structure (as part of the board of directors, top management team and chief executive officer) and firm profitability. Results also indicate that family business, as a type of organization, (negatively) moderates the positive relationship between female participation in top executive positions (board and top executive team) and firm performance. Research limitations/implications First, this study is limited to women in corporate positions in large companies listed on the Colombia Stock Exchange, and thus, generalizability for smaller entities may be limited. Second, data limitations do not allow us to investigate ways in which women’s presence in corporate governance structures contributes to improve firm goals. Practical implications The authors provide support to the hypothesis that positively relates women’s presence in corporate governance positions and firm performance for the case of Colombia. This serves as a guidance to Colombian regulators, corporate decision-makers and policy-makers to promote the inclusion of women in top hierarchical structures through either mandatory laws or recommendation. Originality/value Few studies have addressed the women´s presence in corporate governance positions and contribution to firm performance in developing economies. This study contributes to better understand how women impact performance in contexts where women are underrepresented in corporate governance structure and where there are no laws that pressure firms to appoint women in corporate governance positions.

scholarly journals Ownership structure, dividend policy, and financial performance: A causality analysis

2021 ◽  
Vol 18 (3) ◽  
pp. 161-174
Author(s):  
Anis El Ammari
Keyword(s):  
Corporate Governance ◽  
Panel Data ◽  
Financial Performance ◽  
Ownership Structure ◽  
Dividend Policy ◽  
Causal Link ◽  
Causality Analysis ◽  
Listed Firms ◽  
Causality Tests ◽  
The Relationship

Most studies on corporate governance testing the relationship or correlation between ownership structure (OS), dividend policy (DP), and financial performance (FP). Little attention has, however, been paid to the direction of the causal relationship between financial performance and corporate governance variables (such as OS and DP). This study fills that gap by examining the direction of causality using the bootstrap panel Granger non causality tests to analyze panel data on selected listed firms in an emerging economy, namely, Tunisia. Based on a sample of 154 firm-year observations during the period 1996–2017 and using both Kónya’s (2006) and Dumitrescu and Hurlin’s (2012) approaches, results show the existence of both unidirectional and bidirectional significant causal link between the pair of used variables. These findings agree with earlier studies that found that causality runs from some corporate governance measures to financial performance, from the latter to the former, or in both senses

scholarly journals Exploring the Moderating Role of Social and Ethical Practices in the Relationship between Environmental Disclosure and Financial Performance: Evidence from ESG Companies

2021 ◽  
Vol 14 (1) ◽  
pp. 209
Author(s):  
Salim Chouaibi ◽  
Matteo Rossi ◽  
Dario Siggia ◽  
Jamel Chouaibi
Keyword(s):  
Panel Data ◽  
Financial Performance ◽  
Moderating Effect ◽  
Environmental Disclosure ◽  
Ethical Practices ◽  
The North ◽  
Thomson Reuters ◽  
The Relationship ◽  
Moderating Role

Environmental disclosure is the latest novelty in the corporate reporting field. In fact, it is a tool that can better represent the capacity of companies in creating financial performance over time. Therefore, this paper analyzes whether environmental disclosure (ED) practiced by firms listed on the ESG index affects their financial performance (FP) using the moderating effect of social and ethical practices. The analysis includes a linear regression using panel data from Thomson Reuters and Bloomberg databases. Panel data were collected from a sample of 523 companies listed on the North American and West European stock exchanges. The obtained results show a positive and significant relationship between environmental disclosure (ED) and financial performance (FP). This implies that a strong environmental disclosure increases financial performance while a weak one decreases it. Furthermore, the study suggests a moderating effect of social and ethical practices in the link between environmental disclosure and the firm’s financial performance. In fact, these findings provide interesting insights for academic practitioners and regulators who are interested in discovering environmental disclosure, firm’s performance, and social and ethical practices. These findings also provide insights to stakeholders and regulators on the crucial need to integrate more social and environmental regulations to promote sustainability. Moreover, this paper fills the gaps existing in previous studies that ignore the moderating role of social and ethical practices in the relationship between environmental disclosure and financial performance.

scholarly journals The Moderating Effect of Firm Visibility on the Corporate Social Responsibility-Firm Financial Performance Relationship: Evidence from France

2021 ◽  
Author(s):  
Zyed Achour ◽  
Sonia Boukattaya
Keyword(s):  
Regression Analysis ◽  
Corporate Social Responsibility ◽  
Panel Data ◽  
Social Responsibility ◽  
Financial Performance ◽  
Moderating Effect ◽  
Legitimacy Theory ◽  
Firm Financial Performance ◽  
Corporate Social ◽  
The Relationship

This research aims to analyze the role played by firm visibility in moderating the relationship between Corporate Social Responsibility (CSR) and Firm Financial Performance (FFP). Based on the legitimacy theory, a firm’s responses to stakeholder’s expectations would be affected by its public visibility; we hypothesize a positive link between CSR and firm visibility. Moreover, visibility is expected to moderate the CSR-FFP relationship. We applied a Moderated Regression Analysis using the aggregate ESG scores as a CSR proxy on a panel data of listed French Companies (SBF120) over the period 2008–2017. Our findings are in line with legitimacy theory, suggesting that social initiatives would be mean to strengthen the legitimacy and to secure “license to operate”. Furthermore, firm visibility would be a contingency variable that moderates positively CSR-FFP relationship.

ÖRGÜTLERDE ÖRGÜTSEL BOLLUĞUN GİRİŞİMSEL ORYANTASYON ÜZERİNDEKİ ETKİSİ

2016 ◽  
Vol 4 (3) ◽  
Author(s):  
Nurdan Gürkan ◽  
Ahmet Ferda Çakmak
Keyword(s):  
Corporate Governance ◽  
Data Analysis ◽  
Panel Data ◽  
Strategic Management ◽  
Significant Relationship ◽  
Entrepreneurial Orientation ◽  
Panel Data Analysis ◽  
Organizational Slack ◽  
Analysis Method ◽  
The Relationship

The concept of entrepreneurial orientation, which emerges with the development of strategic management, refers to entrepreneurship orientations of businesses. The businesses need resources in other words organizational slack in order to develop their entrepreneurial trends. The organizational slack consists of three slack type. These slack types are available slack, recoverable slack and potential slack. The purpose of this study is to examine whether organizational slack in the businesses has an effect on entrepreneurial orientation. The relationship between organizational slack and entrepreneurial orientation was investigated through 20 companies that were traded in Borsa Istanbul Corporate Governance Index for 2010-2014 period using panel data analysis method. The results of the study indicate the existence of a statistically significant relationship between and the available slack and the recoverable slack with the entrepreneurial orientation in the businesses. According to findings; there was no statistically significant relationship between potential slack and entrepreneurial orientation.

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