scholarly journals Corporate Governance Issues regarding Transfer Pricing Taxation: Evidence in Japan

2017 ◽  
Vol 2 (3) ◽  
pp. 58
Author(s):  
Hiroshi Ohnuma ◽  
Joe Sakurada
Keyword(s):  
Corporate Governance ◽  
Transfer Pricing ◽  
Emergency Situation ◽  
Governance Structure ◽  
Corporate Governance Structure ◽  
Abnormal Rate ◽  
Risk Event ◽  
Japanese Companies ◽  
Cubic Function

This study focuses on a transfer pricing taxation (TPT) action as one of corporate governance issues. TPT is a tool for preventing the manipulation of transfer pricing. We investigate which factors affect corporate valuation, using a sample of Japanese companies to which TPT was unintentionally applied. With this regard, we put emphasis on the role of corporate governance for the preparation against a risk event. In addition, we attempt to determine what kinds of corporate governance structure are most likely to prepare for an unexpected TPT inspection. As a result of our examination, we find that the association of the directors’ shareholding ratio (DIR) with the cumulative abnormal rate of return (CAR) is statistically significant. We also find that this relation has both a hump and a negative hump, which implies that it is a cubic function. Based on these results, we conclude that a DIR of about 5% is the optimum ratio for a firm facing an emergency situation, and this shows some implications about what kinds of corporate governance structure.

scholarly journals Corporate Failure and the Role of Governance: The Parmalat Scandal

2016 ◽  
Vol 11 (3) ◽  
pp. 2747-2754 ◽  
Author(s):  
Emmanuel Omondi Ogutu
Keyword(s):  
Corporate Governance ◽  
Emerging Economies ◽  
Governance Structure ◽  
The United States ◽  
Accounting Fraud ◽  
Corporate Governance Structure ◽  
Good Opportunity ◽  
Corporate Failure ◽  
Governance Processes

Being touted as the biggest scandal in terms of value, the Parmalat scandal offers a good opportunity to investigate and analyze the role of corporate governance in the failure of corporations particularly in the United States, Europe, as well as in emerging economies. This paper examines Parmalat’s history and describes the circumstances that led to the massive accounting fraud and collapse of Europe’s and indeed one of the world’s leading dairy producers. This paper highlights and points out how weak and ineffective corporate governance structure and process heavily contributed to other problems within Parmalat and eventually led to its demise in the fall of 2003. This paper incorporates various studies conducted in the past on corporate governance and corporate failure. Organizations with strong and effective corporate governance structure and processes demonstrate better performance in all areas than those with weak corporate governance processes.

scholarly journals People Centric Governance Model: Conceptualizing the Pillars of Significance

2016 ◽  
Author(s):  
Zaleha Othman ◽  
Rob Melville
Keyword(s):  
Corporate Governance ◽  
Governance Structure ◽  
Primary Data ◽  
Research Approach ◽  
Corporate Governance Structure ◽  
Grounded Theory Method ◽  
Governance Model ◽  
The People ◽  
Governance Practices

This article explores corporate governance issue from the perspective of peoples’ governance. Using qualitative research approach, specifically, a grounded theory method, the paper explores the role of the pillar of significance in corporate governance practices. Interview was used as primary data, although document was also analysed. Analysis of the data revealed people centric governance is essential. Findings suggest that there are several pillar of significance in the corporations that provide strength to the corporate governance practices. Emerging theory suggests that the core of corporate governance lies on the people rather that the structure. The finding is useful as it impacted governance problem in such a way that the findings provides information that would enhance governance effectiveness in corporations. This study unlocked the perception that corporate governance flaws relate with corporate governance structure. This article offers originality and new insights in understudy of governance concept that commonly relate with economic perspective.

scholarly journals The Role of Corporate Governance Mechanism in Optimizing Firm Performance: A Conceptual Model for Corporate Sector of Pakistan

2015 ◽  
Vol 5 (6) ◽  
pp. 109-115
Author(s):  
Ahsan Akbar
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Governance Structure ◽  
Governance Mechanism ◽  
Governance System ◽  
Corporate Governance Structure ◽  
Wealth Maximization ◽  
Corporate Governance System ◽  
Corporate Governance Mechanism

Corporate governance refers to the processes that govern and direct firm managers to take decisions that are in line with the shareholders goal of wealth maximization. Various studies have been conducted in developing countries including Pakistan to investigate the relationship between corporate governance and firm performance mostly by using the conventional measures of corporate governance. The result of these studies suggests that corporate governance positively and significantly contributes towards firm performance. The aim of this study is to incorporate some important policy measures related to major players of corporate governance that are of significant importance in establishing an effective corporate governance structure in addition to the conventional measures of corporate governance. Inclusion of these variables will help the firms to create an effective corporate governance system that will lead to an increased firm performance.

scholarly journals Substitute governance structure and the effect of monitoring: Evidence from Bangladesh

2010 ◽  
Vol 8 (1) ◽  
pp. 9-23
Author(s):  
Mohammad Istiaq Azim
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Board Of Directors ◽  
Empirical Evidence ◽  
Governance Structure ◽  
Policy Implications ◽  
Corporate Governance Structure ◽  
External Auditors

This paper investigates the role of monitoring mechanisms in a corporate governance structure, focusing on listed companies in a developing country, Bangladesh. Specifically, it examines whether different interrelated monitoring mechanisms - board of directors and committee, management and external auditors - affect firm performance. This research found the possibility of having a substitution or complementary links in monitoring mechanisms that explain why there is no consistent empirical evidence between individual monitoring mechanisms and firm performance. This study has policy implications for the Bangladeshi corporate environment. Progress of implementation of the guidelines appears to be reasonable. However, credibility of the reported figures and quality of implementation remain open to discussion. To what extent these status reports reflect improved governance or are largely a form of paper compliance is a debatable issue. This research also suggests that when considering any change in corporate monitoring, the Bangladeshi government should take into account the nation‟s business, social structure, culture and legal practices.

scholarly journals Role of monitoring within a good corporate governance structure: Evidence from Australia

2009 ◽  
Vol 5 (3) ◽  
pp. 17-33
Author(s):  
Mohammad Istiaq Azim
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Structural Equation Modelling ◽  
Structural Equation ◽  
Governance Structure ◽  
Corporate Governance Structure ◽  
Good Corporate Governance ◽  
Equation Modelling ◽  
The Relationship

This study investigates the role of monitoring mechanisms within a corporate governance structures, focusing on top 500 publicly-listed companies in Australia. Specifically, it examines whether different monitoring mechanisms affect firm performance. Previous studies have been conducted to examine various monitoring mechanisms and firm performance. However, none of the have consider the interaction among the monitoring mechanisms when examining the relationship. In management and behavioural researches it is well established that Structural Equation Modelling can handle the problem of interaction among the variables. Therefore, we have decided to use Structural equation modelling to identify the complex inter-relations between the corporate governance monitoring mechanisms. We conclude that there is a possibility of having a substitution or complementary links among monitoring mechanisms which explains why there is no consistent empirical evidence between individual monitoring mechanisms and firm performance.

CORPORATE GOVERNANCE IN THE 19TH CENTURY: EVIDENCE FROM THE CHESAPEAKE AND OHIO CANAL COMPANY

2009 ◽  
Vol 36 (2) ◽  
pp. 113-137 ◽  
Author(s):  
Robert W. Russ ◽  
Gary John Previts ◽  
Edward N. Coffman
Keyword(s):  
Corporate Governance ◽  
19Th Century ◽  
Annual Report ◽  
Governance Structure ◽  
Review Committee ◽  
Corporate Governance Structure ◽  
Theoretical Structure ◽  
The 19Th Century ◽  
The U.S

Presenting evidence from a 19th century corporation, the Chesapeake and Ohio Canal Company (C&O), the paper shows that issues of corporate governance have existed since the first corporations were established in the U.S. The C&O used a stockholder review committee to review the annual report of the president and directors. The paper shows how the C&O stockholders used this committee to supplement the corporate governance structure. The corporate governance structure of the C&O is also viewed from a theoretical structure as espoused by Hart [1995].

THE STOCKHOLDER REVIEW COMMITTEE OF THE CHESAPEAKE AND OHIO CANAL COMPANY, 1828–1857: EVIDENCE OF CHANGES IN FINANCIAL REPORTING AND CORPORATE GOVERNANCE

2006 ◽  
Vol 33 (1) ◽  
pp. 125-143 ◽  
Author(s):  
Robert W. Russ ◽  
Gary J. Previts ◽  
Edward N. Coffman
Keyword(s):  
Corporate Governance ◽  
19Th Century ◽  
Financial Reporting ◽  
Financial Management ◽  
Governance Structure ◽  
The Political ◽  
Review Committee ◽  
Corporate Governance Structure ◽  
Corporate Form ◽  
The 19Th Century

Canal companies were among the first enterprises to be organized in the corporate form and to require large amounts of capital. This paper examines the stockholder review committee of a 19th century corporation, the Chesapeake and Ohio Canal Company (C&O), and discusses how the C&O used this corporate governance structure to monitor and improve financial management and operations. A major strength was the concern and dedication of the stockholders to the company, while a major weakness was the political control exerted by the State of Maryland. The paper provides an historical perspective on corporate governance in the 19th century. This research contributes to the literature by providing detailed workings and practices of a stockholder review committee. The paper documents corporate governance efforts in archival sources that provide an early example of accountability required in a corporate charter and the manner in which the stockholders carried out this responsibility.

Sign in / Sign up

Export Citation Format

Share Document