ASSOCIATION OF CORPORATE GOVERNANCE AND TAX COMPLIANCE OF INDONESIA STATE-OWNED ENTERPRISES

This study aims to explore the association of SOE monitoring and corporate governance variables and the tax compliance of Indonesian State-Owned Enterprises (SOEs). The samples of this study are SOEs in 2009-2018 listed on the official website of the Ministry of SOEs that have all required data. The data is analyzed using ordinary least square to test the hypothesis with STATA statistical analysis software. The results show that SOEs that receive PSO (Public Service Obligation) and listed on the stock exchange are more tax compliant compared to others. However, the study found no evidence that the governance structure of SOEs affects tax compliance. The data shows that most SOEs still do not have governance structure that comply the regulations. The findings imply that external monitoring received by PSO recipients and listed SOEs improve SOEs tax compliance. Moreover, the findings also imply that SOEs’ corporate governance structure is only a formality and does not take its functions seriously.

Download Full-text

Corporate governance and corporate performance: evidence from Kuwait

Corporate Ownership and Control ◽

10.22495/cocv7i1c3p1 ◽

2009 ◽

Vol 7 (1) ◽

pp. 334-349 ◽

Cited By ~ 3

Author(s):

Bader Al-Shammari ◽

Waleed Al-Sultan

Keyword(s):

Corporate Governance ◽

Stock Exchange ◽

Governance Structure ◽

Board Size ◽

Corporate Governance Structure ◽

Accounting Performance ◽

Corporate Scandals ◽

Kuwait Stock Exchange ◽

And Performance ◽

The Relationship

An increasing number of recent corporate scandals and failures worldwide give rise to interest in the corporate governance structure in the performance of companies. This study investigates the relationship between corporate governance characteristics and performance of 66 non-financial companies listed on the Kuwait Stock Exchange (KSE) during the years 2004-2007. The findings of this study show that corporate governance characteristics such as board size, role duality, and less concentrated share ownership were positively associated with market performance, whereas only board size and role duality were positively related to accounting performance. The result is robust with respect to controls for company size, leverage, and industry.

Download Full-text

EFFECT OF CORPORATE GOVERNANCE ON REAL ACTIVITY-BASED EARNINGS MANAGEMENT: EVIDENCE FROM KOREA / ĮMONIŲ VALDYMO POVEIKIS, PAGRĮSTAS DARBO UŽMOKESČIO VALDYMU: KORĖJOS PAVYZDYS

Journal of Business Economics and Management ◽

10.3846/16111699.2011.620164 ◽

2012 ◽

Vol 13 (1) ◽

pp. 29-52 ◽

Cited By ~ 19

Author(s):

Sun-A Kang ◽

Yong-Shik Kim

Keyword(s):

Corporate Governance ◽

Data Analysis ◽

Earnings Management ◽

Stock Exchange ◽

Investment Decision ◽

Governance Structure ◽

Corporate Governance Structure ◽

Real Activity ◽

Policy Makers ◽

Reported Earnings

This paper aims to determine whether corporate governance affects manager's real operating or investment decision to control reported earnings. Through data analysis of firms listed on the Korean stock exchange, it was found that the aggregated measure of real activity-based earnings management decreases as the size of board is larger or as a greater proportion of external directors sit on the board. Those findings are almost the same, whether a corporate governance index composed by each BOD characteristics is employed, or problem caused by endogenous relationships among variables is controlled. The results provide the first empirical evidence that real activity-based earnings management is influenced by corporate governance structure. This focus on real activity-based earnings management suggests new avenues for research on corporate governance. The results offer some insights for policy makers interested in promoting legislation to ensure strong corporate governance in their nation. Santrauka Šiame straipsnyje siekiama nustatyti, kokią įtaką turi kompanijos vadovo sprendimai, susiję su gaunamų pajamų iš darbuotojų tiesioginės veiklos / operacijų ar investicinių sprendimų kontrole. Tyrime dalyvavo Korėjos kompanijos. Autorių atlikti tyrimai parodė, kad darbuotojų darbo užmokesčio valdymas yra efektyvesnis nei tiesioginė vadovo kontrolė. Straipsnyje minima, kad priėmus sprendimą valdyti darbo užmokesčius, būtina keisti visą įmonės valdymo struktūrą. Gauti rezultatai yra kaip siūlymas peržiūrėti atitinkamus nacionalinius teisės aktus Korėjoje.

Download Full-text

Effect of profitability and dividend policy on corporate governance and firm value: Evidence from the Indonesian manufacturing Sectors

10.31227/osf.io/8bvw2 ◽

2018 ◽

Author(s):

Muhammad Tamrin ◽

H. Rahman Mus ◽

Sudirman ◽

Aryati Arfah

Keyword(s):

Corporate Governance ◽

Firm Value ◽

Dividend Policy ◽

Stock Exchange ◽

Sampling Technique ◽

Governance Structure ◽

Manufacturing Companies ◽

Corporate Governance Structure ◽

Insignificant Effect ◽

Analysis Technique

This study aims to analyze the effect of Profitability and Corporate Governance Structure on dividend policy and its impact on the firm value. The population in this research is manufacturing companies listed in Indonesia Stock Exchange as many as 146 companies. The research sample as many as 58 companies, the period of 2013 to 2015. Sampling technique used is purposive sampling. The data analysis technique used is WrapPLS. The results showed that profitability have a negative and significant effect on dividend policy. Profitability has a negative and significant effect on firm value. Profitability is a negative and insignificant effect on firm value as a mediated dividend policy. The structure of corporate governance is positive and significant effect on dividend policy. Corporate governance structure has a positive and significant effect on firm value. Corporate governance structure has a positive and insignificant effect on firm value as a mediated dividend policy. Dividend policy is a positive and insignificant effect on firm value

Download Full-text

Corporate Governance Structure and Accounting Information Disclosure Quality: Evidence from Shenzhen Stock Exchange in China

International Studies Review ◽

10.1163/2667078x-01901005 ◽

2018 ◽

Vol 19 (1) ◽

pp. 99-116

Author(s):

He Xu ◽

Chang Seop Rhee

Keyword(s):

Corporate Governance ◽

Information Disclosure ◽

Stock Exchange ◽

Accounting Information ◽

Governance Structure ◽

Disclosure Quality ◽

Corporate Governance Structure ◽

Quality Of Accounting Information ◽

The Board Of Directors

This study investigates the effect of corporate governance structure on the quality of accounting information disclosure using Shenzhen stock exchange data. Existing literatures reported that corporate governance can help to improve accounting quality. However, China's corporate governance structure may have different consequences from prior studies because it has less maturity than developed countries in Europe and the United States. China government, in particular, has a very strong influence on the companies in China and we needs to be verified if the corporate governance structure works properly. From the empirical tests, we find that the proportion of stateowned shares, the proportion of tradable shares, ownership concentration, the size of the board of directors, the proportion of ownership of the board of directors, and size of the board of supervisors are positively associated with the quality of accounting information disclosure. This study will contribute to academics and practitioners by documenting the factors of corporate governance structure on accounting disclosure quality in China.

Download Full-text

Corporate Governance and Firm’s Profitability: An Emerging Economy-based Investigation

Indian Journal of Corporate Governance ◽

10.1177/0974686219836544 ◽

2019 ◽

Vol 12 (1) ◽

pp. 71-93 ◽

Cited By ~ 1

Author(s):

Mohammad Rajon Meah ◽

Nasir Uddin Chaudhory

Keyword(s):

Corporate Governance ◽

Stock Exchange ◽

Manufacturing Firms ◽

Least Square ◽

The Other ◽

Board Size ◽

Ordinary Least Square ◽

Female Directors ◽

Director Ownership ◽

The Impact

This article aims to investigate the impact of corporate governance through board size, female directors, family duality and director ownership on firm’s profitability in Bangladesh. It’s a quantitative study on 110 manufacturing firms listed in Dhaka Stock Exchange. Multivariate pooled Ordinary Least Square (OLS) regressions are applied on 512 sample-year observations from the year 2013 to 2017 to test the hypotheses in the study. On one side, the results reveal that larger board size and female directors on board are positively associated with firm’s profitability, which in turns helps to enhance firm’s profitability. On the other side, it is also found in the results that percentage of shares held by the directors and family duality are negatively related to firm’s profitability and thus reduces firm performance. The outcomes of this study advocate the policymakers to formulate a policy by addressing the percentage of shares held by the directors to be kept at a certain level.

Download Full-text

Corporate governance structure and strategic change: evidence from major acquisitions

Managerial Finance ◽

10.1108/mf-05-2017-0169 ◽

2018 ◽

Vol 44 (2) ◽

pp. 222-240 ◽

Cited By ~ 3

Author(s):

Seung Hee Choi ◽

Samuel H. Szewczyk

Keyword(s):

Corporate Governance ◽

Audit Committee ◽

Strategic Change ◽

Governance Structure ◽

Necessary Condition ◽

Corporate Governance Structure ◽

Content Type ◽

Compensation Committee ◽

Strategic Risk ◽

External Monitoring

Purpose When major reallocations of the firm’s assets are necessary, a balance in the corporate governance structure favoring the CEO can be a necessary condition for planning and initiating major strategic moves. The purpose of this paper is to examine firms making major acquisitions to identify corporate governance elements that are particular to undertaking major strategic initiatives. Design/methodology/approach The authors test the proposition that firms making major strategic acquisitions will exhibit a corporate governance structure that is different in a number of its governance elements from firms making other acquisition decisions. The authors categorize the elements of corporate governance structures into CEO characteristics, internal monitoring, external monitoring and CEO compensation. Findings The authors find the propensity of acquiring firms to make major strategic acquisitions is abetted by the CEO’s attributes and compensation, by the structure of the audit committee and compensation committee, and by the firm’s prior financial performance. Originality/value The analysis of firms making major acquisitions presents the corporate governance dynamics of an environment that is conducive to strategic risk taking.

Download Full-text

Corporate governance, resources, FDI commitment and firm performance

Chinese Management Studies ◽

10.1108/cms-08-2012-0118 ◽

2014 ◽

Vol 8 (3) ◽

pp. 313-332 ◽

Cited By ~ 7

Author(s):

Ming-Tien Tsai ◽

Wen-Hui Tung

Keyword(s):

Corporate Governance ◽

Firm Performance ◽

Stock Exchange ◽

Chief Executive ◽

Governance Structure ◽

High Tech ◽

Corporate Governance Structure ◽

Ceo Duality ◽

Content Type ◽

Mean Values

Purpose – This study aims to explore the effects of corporate governance structure and resources on foreign direct investment (FDI) commitment and firm performance. Design/methodology/approach – The data are collected from high-tech firms listed by the Taiwan Stock Exchange. All selected 137 firms have complete FDI and other required data during 2007-2009. The mean values of the variables during the three-year period were used for analysis. Findings – The results indicate that both chief executive officer (CEO) duality and government shareholding affect a firm’s FDI; and the higher the management shareholding ratio, the lower the return on equity. Moreover, a large ownership of substantial shareholders can enhance a firm’s performance; and higher institutional ownership can lead to higher firm performance. Research limitations/implications – This study analyses the limited data from 137 high-tech firms in Taiwan during the three-year period of 2007-2009. Further analyses of other industries, countries and time periods are needed to generalize the conclusions. Practical implications – A firm with CEO duality should increase the ratio of government holding to mitigate the influence of CEO on FDI decisions. When a firm’s performance is poor, the ratio of managerial holdings should be reduced; conversely, the firm could attract more holdings from domestic securities and funds to improve performance. Originality/value – This study provides guidelines for shareholders to analyze governance structure and formulate their investment strategies. Corporate policymakers may use these as the principles for designing a corporate governance structure that could engender optimal firm performance.

Download Full-text

Do Cross-Listed Firms Have a Better Governance Structure and Lower Agency Costs? Evidence from Chinese Firms

Sustainability ◽

10.3390/su13041734 ◽

2021 ◽

Vol 13 (4) ◽

pp. 1734

Author(s):

Dong-Soon Kim ◽

Eunjung Yeo ◽

Li Zhang

Keyword(s):

Corporate Governance ◽

Agency Costs ◽

Fixed Effects ◽

Stock Exchange ◽

Governance Structure ◽

Least Square ◽

Board Size ◽

Chinese Firms ◽

Listed Firms ◽

Cross Listing

This study examines whether an influence from a difference in corporate governance structure exists on firms’ agency costs between Chinese companies cross-listed on the Hong Kong Stock Exchange (HKSE) and those that are domestically listed ones. We determine that, overall, companies with an HKSE cross-listing had better corporate governance than those without. The corporate governance advantage of the HKSE cross-listed firms holds if we control for firm fixed effects and resolve the potential endogeneity problem between corporate governance and agency costs by using two-stage least square (2SLS) regression analysis with instrumental variables. Specifically, the HKSE cross-listed firms had better corporate governance in terms of board size and institutional ownership. By contrast, domestically listed firms experienced the adverse effects of institutional owner’s roles and higher board pay. The advantages of HKSE cross-listed firms may stem from the benefits of having a larger board size and the effective monitoring of the management by the institutional stockholders. Implications are drawn for the debate on cross-listing and the future challenges of Chinese firms, and a more robust monitoring is necessary for sustainable finance of their stock markets.

Download Full-text

PENGARUH STRUKTUR CORPORATE GOVERNANCE DAN AUDIT TENURE TERHADAP INTEGRITAS LAPORAN KEUANGAN

AKUNTABILITAS ◽

10.29259/ja.v12i2.9310 ◽

2019 ◽

Vol 12 (2) ◽

pp. 81-98

Author(s):

Silvia Arista ◽

Tertiarto Wahyudi ◽

Yusnaini Yusnaini

Keyword(s):

Corporate Governance ◽

Significant Influence ◽

Stock Exchange ◽

Sample Selection ◽

Financial Statements ◽

Analysis Data ◽

Governance Structure ◽

Audit Committees ◽

Manufacturing Companies ◽

Corporate Governance Structure

This study aims to obtain empirical evidence about the influence of corporate governance structure and audit tenure on the integrity of financial statements. Population ofthis research is manufacturing companies listed on Indonesia Stock Exchange starting from 2015-2017. The sample selection used purposive sampling method and retrieved 66 companies. In this research, analysis data used multiple regression method.The results show that the corporate governance structure, consisted of independent commissioners, managerial ownership and audit committees had positive and significant influence on the integrity of financial statements, but institusional ownership had no influence. Meanwhile, audite tenure had negative and significant influence on integrity of financialstatements.

Download Full-text

Pengaruh Struktur Corporate Governance terhadap Integritas Laporan Keuangan Perusahaan pada Perusahaan LQ45 yang Terdaftar di BEI

AKUNTABEL ◽

10.29264/jakt.v14i2.1910 ◽

2018 ◽

Vol 14 (2) ◽

pp. 157

Author(s):

Inosensius Istiantoro ◽

Ardi Paminto ◽

Herry Ramadhani

Keyword(s):

Corporate Governance ◽

Audit Committee ◽

Sampling Method ◽

Stock Exchange ◽

Institutional Ownership ◽

Financial Statements ◽

Governance Structure ◽

Managerial Ownership ◽

Corporate Governance Structure ◽

Method Analysis

The influence of Corporate Governance Structure on Integrity Corporate Financial Statements of the LQ45 companies listed on the Indonesia Stock Exchange 2009-2014. (Under the guidance of Dr. H. Ardi Paminto, MS and Herry Ramadhani, SE., MM). The purpose of research is to analyze the influence of Corporate Governance Structure on Integrity Corporate Financial Statements of the LQ45 companies listed on the Indonesia Stock Exchange 2009-2014. The data used in this study is 18 companies using criteria through purposive sampling method. Analysis of the data used in this study is the classical assumption test and multiple linear regression SPSS 19.0. The results of this study indicate that the institutional ownership has a negative and significant influence on integrity corporate financial statements, Managerial Ownership is positive but no significant effect on integrity corporate financial statements, Audit Committee is positive and has a significane effect on integrity corporate financial statements, Independent Commissioner is negative and no significant effect on integrity corporate financial statements.Keywords: Institutional Ownership, Managerial Ownership, Audit Committee and Independent Commissioner.

Download Full-text