scholarly journals Governance in Lebanese Banks: An Exploratory Research Before the COVID-19 Era

2021 ◽  
Vol 6 (1) ◽  
pp. 1
Author(s):  
Hussin J. Hejase ◽  
Ale J. Hejase ◽  
Fatima Nemer ◽  
Hassan Fayyad-Kazan
Keyword(s):  
Corporate Governance ◽  
Best Practices ◽  
Financial Services ◽  
Exploratory Research ◽  
Open Market ◽  
Banking Supervision ◽  
Negative Image ◽  
Basel Committee ◽  
Top Managers ◽  
Governance Practices

Banks locally and abroad have been subject to several financial crises which led top managers to look critically at their current practices in managing the financial resources in order to avoid losses and to prevent giving a negative image to the community of their customers. Parallel to the aforementioned events, banks have been observing an evolution of the banking investment activities in addition to the transformation of the financial market into an open market system.The different events characterized by higher risks and higher demands for financial services have incited banks to explore and emphasize the importance of governance principles. In this study, the researchers will expose the importance of governance and its main principles in the banking systems. The study will also address the aforementioned pertinent to its implementation according to the activities of Basel Committee on banking supervision. The aim of the study is to assess via a quantitative approach the actual governance practices within a convenient sample of Lebanese banks. The outcomes show that the selected banks abide by the principles of Corporate Governance required by Basel as well as by the Central Bank of Lebanon. Results also address the effect of sound governance on the performance of the Banks in question. Findings will serve to issue recommendations about best practices and to encourage the adoption of sound decisions to adopt Corporate Governance principles.

scholarly journals Corporate governance and corporate investment: an exploratory research in the Brazilian publicly traded companies listed in Bovespa

2011 ◽  
Vol 9 (1) ◽  
pp. 545-557
Author(s):  
Nádia Sousa ◽  
Flávia Zóboli Dalmácio
Keyword(s):  
Corporate Governance ◽  
Institutional Investors ◽  
Market Value ◽  
Institutional Investor ◽  
Capital Cost ◽  
Exploratory Research ◽  
Statistical Relation ◽  
Publicly Traded ◽  
Publicly Traded Companies ◽  
Governance Practices

This paper aims to study the influence of Corporate Governance practices in the institutional decision to invest. It was developed a Governance Index (iGov), a descending rank was prepared and a test was applied to check if the companies in the first 25% of this rank have the highest number of institutional investors among their biggest investors than the companies of the last 25%. For the validation of IGov it was tested if the companies with the best marks present highest Returns, lowest Capital Cost, highest Market Value, and highest Competiveness within the sector, lowest Beta, highest EVA® and lowest Share concentration. It has been proved that the best Corporate Governance practices do not have any statistical relation with the presence of more Institutional Investor.

Governance of Financial Institutions

2018 ◽  
Author(s):  
Guler Aras
Keyword(s):  
Corporate Governance ◽  
Financial Institutions ◽  
Capital Markets ◽  
Financial Services ◽  
Good Governance ◽  
Governance Mechanisms ◽  
Corporate Governance Mechanisms ◽  
Governance Practices ◽  
The 2008 Financial Crisis ◽  
Sustainable Economic Growth

Corporate governance is a central issue in business and economics. However, governance in financial institutions is more complicated than in other fields because of the nature of financial services and instruments. Financial organizations are similar to other businesses in terms of their purposes of establishment, but confidence in management and complex risk structures are more important in financial organizations than in other businesses. In financial institutions, there are various areas in which problems arise that are related to corporate governance, including the agency problem and stakeholder protection. The importance of good governance for sound performance of financial institutions was reconfirmed during the 2008 financial crisis, raising the need to understand the agency problems and the efficiency of various corporate governance mechanisms in mitigating them. International organizations, such as the Organisation for Economic Co-operation and Development, the Basel Committee, the International Finance Corporation, and the International Organization of Securities Commissions, have been working with regulators and policy makers to improve corporate governance practices both in nonfinancial and financial institutions. Corporate governance, especially in financial institutions, is essential in guaranteeing a sound financial system, capital markets, and sustainable economic growth. Governance weaknesses at financial institutions can result in the transmission of problems across the finance sector and the economy. Consequently, the effectiveness of governance mechanisms of financial institutions and capital markets after financial crises had significant importance in a period that witnessed an intensive discussion of corporate governance issues with new regulations and the related academic works.

scholarly journals Can Sound Corporate Governance Alleviate Corporate Failure? A Study of the Zimbabwean Financial Services Sector

2017 ◽  
Vol 9 (2(J)) ◽  
pp. 88-95
Author(s):  
Banele Dlamini ◽  
Julius Tapera ◽  
Shynet Chivasa
Keyword(s):  
Corporate Governance ◽  
Financial Institutions ◽  
Financial Services ◽  
Ordinary Least Squares ◽  
Policy Makers ◽  
Corporate Failure ◽  
Services Sector ◽  
Financial Services Sector ◽  
Good Corporate Governance ◽  
Governance Practices

This study, using the Ordinary Least Squares (OLS) Regression Model, investigated the extent to which good corporate governance practices can minimise or alleviate corporate failure in the Zimbabwean Financial Services Sector. The results of the study reflected that sound corporate governance has a positive effect on corporate success and can alleviate corporate failure. It is thus recommended that financial institutions continuously adhere to sound corporate governance practices to guarantee corporate success and alleviate the collapse of financial institutions as has been witnessed in the past. The findings of the study will assist policy makers, regulators and players in the financial services sector to adhere to sound corporate governance practices, given its impact on corporate success. Further research could be carried out with regards the implementation of sound corporate governance in parastatals, quasi-government institutions and private sector companies in other sectors other that the financial services sector and how it can be monitored or enforced.

scholarly journals Corporate governance practices in Europe: A descriptive study.

2016 ◽  
Vol 13 (2) ◽  
pp. 238-249 ◽  
Author(s):  
Eldi Metushi ◽  
Jackie Di Vito ◽  
Andrea Fradeani
Keyword(s):  
Corporate Governance ◽  
Best Practices ◽  
Practice Guidelines ◽  
Best Practice ◽  
National Guidelines ◽  
Firm Level ◽  
Best Practice Guidelines ◽  
Corporate Governance Codes ◽  
Level Statistics ◽  
Governance Practices

Our study examines corporate governance practices in Europe according to the best practice guidelines of 17 countries. We particularly focus on the independence criteria of Board members. Doing so, we wish to understand how these best practices are enforced in the actual corporate governance guidelines in each country. To better define the independence criteria, which is very different among European countries, we develop our own measure of independence, taking into account the strictest criteria of independence recommended in the corporate governance codes of the studied countries. Then, we gather firm-level statistics on a sample of 463 European firms to understand whether the best practice guidelines are actually enforced by these firms. Hence, we contribute to the existent literature by presenting descriptive statistics on the compliance of European firms to their national guidelines. Our findings show that most European firms tend to comply with their local best practice guidelines of corporate governance. We also document a high compliance of our European sample-firm with the Anglo - Saxon best practices of corporate governance.

scholarly journals National corporate governance codes and IT governance transparency

2018 ◽  
Vol 16 (1) ◽  
pp. 13-18 ◽  
Author(s):  
Shafi Mohamad
Keyword(s):  
Corporate Governance ◽  
South African ◽  
Financial Services ◽  
It Governance ◽  
The South ◽  
Corporate Governance Code ◽  
Item Level ◽  
Corporate Governance Codes ◽  
Governance Practices ◽  
Governance Transparency

The main purpose of this paper is to explore the influence of national corporate governance codes on IT governance transparency and was carried out by comparing the IT governance disclosure requirements across two jurisdictions Belgium and South Africa using the study by Huygh et al. (2017). The latter focused on these two countries since the South African corporate governance code King III (2009) contains detailed IT governance disclosures, while the Belgian corporate governance code Lippens (2009) does not. Huygh et al. (2017) found that listed South African financial services organizations were more concerned with disclosing their IT governance practices than their listed Belgian counterparts and that this observation held across the board for all four disclosure categories within the IT governance transparency framework. Further analysis at an individual item-level also found that many of the items for which the South African respondents reported frequently could be directly traced to the IT governance principles and recommended practices contained in the King III (2009) corporate governance code. Huygh et al. (2017) attributed the higher IT governance transparency of the South African respondents to the specific reporting requirements of their national corporate governance code King III (2009). Hence the recommendation that IT governance disclosures be proactively encouraged via national corporate governance codes to further enhance transparency.

scholarly journals Internal Controls and Credit Risk in European Banking: The Basel Committee on Banking Supervision Framework Approach

2020 ◽  
Author(s):  
Ellis Kofi Akwaa-Sekyi
Keyword(s):  
Financial Crisis ◽  
Credit Risk ◽  
Internal Control ◽  
Internal Controls ◽  
Banking Supervision ◽  
Basel Committee ◽  
Operational Risks ◽  
Control Framework ◽  
Governance Practices ◽  
European Banking

Poor corporate governance practices have been cited as contributory to the 2007 global financial crisis. The chapter explores a qualitative self-regulation approach to address a major risk facing banks using the Basel Committee on Banking Supervision (BCBS) framework of internal controls. The study examines the effect of the qualitative principles of the BCBS internal control framework on credit risk. Corporate institutions use internal control frameworks to address the most operational risks, but the current study hypothesizes a possible relation with the credit risk. This research covers banks from selected EU countries covering some period before and after the 2007 financial crisis using a fixed-effect model. We report a significant relationship between board functions and activities, board structure and board monitoring, and credit risk. The results indicate that investment in high-risk assets, bank profitability and board chair being ex-CEO increases credit risk in European banking. The chapter extends the scope of a previous work that used the elements of the COSO internal control framework on a single country. This quantitative measure of qualitative constructs of the framework complements existing research that uses algorithms and simulations to study credit risk.

scholarly journals Corporate Governance and Financial Inclusion

2021 ◽  
Vol 10 (4) ◽  
pp. 12-23
Author(s):  
Daniel Makina
Keyword(s):  
Corporate Governance ◽  
Financial Institutions ◽  
Financial Services ◽  
Financial Inclusion ◽  
Empirical Literature ◽  
Special Treatment ◽  
Specific Class ◽  
Starting Point ◽  
Governance Practices ◽  
Corporate Governance Practice

The paper focuses on a scantly researched phenomenon, namely, the extent to which financial inclusion is influenced by corporate governance practices. The question that normally arises is whether corporate governance practices are tailored to supporting the financial inclusion mandate. The other question is whether there are certain corporate governance practices that advance financial inclusion. This paper reviews extant empirical literature on these matters with a view of stimulating debate on the subject. Cognisant that institutions that advance financial inclusion are largely financial institutions, the starting point is relating to contemporary corporate governance practice in financial institutions. We know that financial institutions belong to a specific class of corporations whose failure affects society at large because of the financial services they provide. As a result, they are heavily regulated and their corporate governance structures are bound to differ from those of conventional firms. Similarly, we know that financial inclusion institutions are special types of financial institutions with mandates to provide financial services to underserved population segments which equally require special treatment. The scant literature available shows, albeit not conclusive, some evidence of a positive relationship between sound corporate governance and financial inclusion. However, more research on how corporate governance affects different dimensions of financial inclusion is recommended.

scholarly journals Analysing the levels of uniformity in corporate governance practices – Case study of five air lines companies

2015 ◽  
Vol 12 (2) ◽  
pp. 37-51
Author(s):  
Jayalakshmy Ramachandran
Keyword(s):  
Corporate Governance ◽  
Best Practices ◽  
Airline Industry ◽  
Economic Freedom ◽  
Heritage Foundation ◽  
Whistle Blowing ◽  
Governance Practices

This report provides the analysis of Corporate Governance in Airline Industry of five different countries that are listed on 2013 Index of Economic Freedom provided by the Heritage foundation. The aim of this report is to analyse and discuss the inadequacies in corporate governance practices for the five sample companies chosen. We also analyse the whistle blowing practices adopted and disclosed by the companies. Our analysis reveals that, though there is guidance for best practices of corporate governance, it is difficult to accentuate a single company possessing best governance practices. At the same time while whistle blowing practices are emphasized by stakeholders, our analysis of the five companies reveal that either the companies don’t have a strong whistle blowing policy or they don’t make it transparent to the stakeholders. Our contribution is therefore quite significant as we recommend that strong whistle blowing practices , if made transparent and if motivated to practice, could dilute the effect of not having best corporate governance practices

scholarly journals Corporate governance as motor of change of entrepreneurial culture

2006 ◽  
Vol 3 (4) ◽  
pp. 192-201
Author(s):  
Lázaro Rodríguez-Ariza ◽  
María Victoria López-Pérez ◽  
Arminda García Santana
Keyword(s):  
Corporate Governance ◽  
Best Practices ◽  
Cultural Change ◽  
Information Disclosure ◽  
Stock Exchange ◽  
Financial Indicators ◽  
Positive Effects ◽  
Good Corporate Governance ◽  
Governance Practices ◽  
The Empirical Analysis

Information disclosure on best practices should have positive effects on entrepreneurial performance. This paper attempts to study the deep cultural change occurring in firms. To achieve this, we analyze the effect of adopting good corporate governance practices on management. Thus, the objective of this research is to test whether significant differences in entrepreneurial efficiency exist between two groups of firms. One of these groups quotes on Dow Jones Global Index (DJGI) and has adopted good corporate governance practices. The other group is formed of firms which do not quoted on stock exchange and do not apply best practices. We selected a sample of 100 firms for the period 1998-2004 and analyzed some economical financial indicators usually used to measure entrepreneurial efficiency. We confirm the effect that the adoption of these practices has on economic-financial indicators. The empirical analysis supports the conclusion that differences in efficiency exist between firms that belong to the DJGI and disclose information concerning best practices and firms that do not quote on stock exchange and do not disclose this kind of information. We then study the sign of these differences and draw conclusions

scholarly journals Can Sound Corporate Governance Alleviate Corporate Failure? A Study of the Zimbabwean Financial Services Sector

2017 ◽  
Vol 9 (2) ◽  
pp. 88
Author(s):  
Banele Dlamini ◽  
Julius Tapera ◽  
Shynet Chivasa
Keyword(s):  
Corporate Governance ◽  
Financial Institutions ◽  
Financial Services ◽  
Ordinary Least Squares ◽  
Policy Makers ◽  
Corporate Failure ◽  
Services Sector ◽  
Financial Services Sector ◽  
Good Corporate Governance ◽  
Governance Practices

This study, using the Ordinary Least Squares (OLS) Regression Model, investigated the extent to which good corporate governance practices can minimise or alleviate corporate failure in the Zimbabwean Financial Services Sector. The results of the study reflected that sound corporate governance has a positive effect on corporate success and can alleviate corporate failure. It is thus recommended that financial institutions continuously adhere to sound corporate governance practices to guarantee corporate success and alleviate the collapse of financial institutions as has been witnessed in the past. The findings of the study will assist policy makers, regulators and players in the financial services sector to adhere to sound corporate governance practices, given its impact on corporate success. Further research could be carried out with regards the implementation of sound corporate governance in parastatals, quasi-government institutions and private sector companies in other sectors other that the financial services sector and how it can be monitored or enforced.

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