scholarly journals A Study on Corporate Governance Disclosures in Selected Housing Finance Companies in India

2021 ◽  
Author(s):  
Suguna Margana ◽  
Sheela.p. Paluri
Keyword(s):  
Corporate Governance ◽  
Firm Value ◽  
Housing Finance ◽  
Annual Reports ◽  
Good Corporate Governance ◽  
Governance Practices ◽  
Governance Challenges ◽  
Effective Level ◽  
Degree Of Association ◽  
Clause 49

Abstract Every company across the globe today focuses on basic principles of good corporate governance for performing efficiently and to enhance their valuation in the market. A good corporate can generate the source of attracting capital, foreign investment, investors’ trust, confidence, and also take advantage of the vibrant stock market. Corporate governance is a code of business conduct and ethics that would greatly benefit the companies to thrive and prosper. The outcome of the literature review was that even though the disclosures are made mandatory, there is a large variation in the quality of corporate governance disclosure practices adopted by companies listed in different countries. Empirical research done earlier has also proved that good corporate governance practices being followed enhances the firm value. Housing finance companies face unique corporate governance challenges due to myriad reasons like ownership structures, lack of transparency, and insufficient checks on inappropriate activities. Despite the ‘corporate governance revolution’, there exists no universal benchmark for the effective level of disclosure and transparency. Corporate governance practices followed in business firms are communicated through the corporate governance section of annual reports. clause 49 of the listing agreement sets a detailed corporate governance provision to be followed by listed companies in India. This study aimed at evaluating the governance practices in Housing Finance Companies against disclosure requirements of clause 49. Housing Finance companies that are listed in the NSE are taken into consideration as the sample for the study. Kendall’s coefficient of concordance is used for determining the degree of association among several (k) sets of ranking of N objects or individuals.

scholarly journals Analysis of the compliance of Brazilian firms with good corporate governance practices

2019 ◽  
Vol 11 (2) ◽  
Author(s):  
Vicente Lima Crisóstomo ◽  
Aline Maria Coelho Girão
Keyword(s):  
Corporate Governance ◽  
Firm Value ◽  
Audit Committee ◽  
Cost Benefit ◽  
Additional Contribution ◽  
Publicly Traded Companies ◽  
Good Corporate Governance ◽  
Governance Practices ◽  
Cost Benefit Ratio ◽  
The Difference

Purpose: Studies report that the adoption of good corporate governance practices tends to improve firm value. However, the results of such adoption seem to be conditioned by specific institutional and legal characteristics of each country. This study aims to analyze compliance with good corporate governance practices in the context of publicly traded companies in the Brazilian market. Methodology: The sample is made up of 1336 annual observations of 167 companies listed on the B3 (Brasil, Bolsa, Balcão) in the period 2010-2017. The practices recommended by the main corporate governance codes in Brazil were used as benchmark. Tests for the difference in means (t-test) and in proportions (z-test) were used to compare the observed situation in the group of firms and the recommendations in the Brazilian market. Results: Despite the adoption of many of the best practices recommended, there is still space for advancement in the Brazilian firm corporate governance. The results indicate noncompliance of the Brazilian firm with the recommendations regarding the audit committee and fiscal council, which may particularly weaken transparency and control of firm’s internal activities. In addition, adherence to distinguished market segments is associated to a greater trend to observe the suggestions emanating from the codes, which may be due to the perception of a favorable cost-benefit ratio of the adoption of corporate governance practices. Contributions of the Study: The work provides additional contribution by presenting a detailed analysis of the current scenario of the Brazilian firm corporate governance captured from the evaluation of the degree of adoption of each practice recommended individually.

scholarly journals Corporate governance and the value of the firm: An empirical analysis of companies listed in the JSE securities exchange of South Africa

2012 ◽  
Vol 10 (1) ◽  
pp. 125-136 ◽  
Author(s):  
Nelson M Waweru
Keyword(s):  
South Africa ◽  
Corporate Governance ◽  
Firm Value ◽  
Audit Quality ◽  
Developing Economies ◽  
Annual Reports ◽  
Executive Directors ◽  
Minority Shareholders ◽  
Corporate Failure ◽  
Governance Practices

This study examines the corporate governance characteristics influencing the value of the value of the firm in South Africa (SA). Corporate governance variables including Block shareholding, Dispensed shareholding, Board size, Proportion of non-executive directors and Audit quality were identified from the corporate governance literature. Using panel data of 247-firm years obtained from the annual reports of the 50 largest companies listed on the JSE Securities Exchange of SA, this study found that block shareholding and the proportion of NEDS as the main corporate governance characteristics influencing the value of the firm in SA. The results of this study are important to the King Committee and other corporate governance regulators in SA, in their effort to improve corporate governance practices and probably minimize corporate failure and protect the wellbeing of the minority shareholders. Furthermore, the study contributes to our understanding of the corporate governance variables affecting firm value in developing economies, especially SA.

scholarly journals Review of Corporate Governance Practices and Financial Distress Prediction

2018 ◽  
Vol 7 (4.28) ◽  
pp. 30
Author(s):  
Syed Muhammad Hassan Gillani Ahmad ◽  
Suresh Ramakrishnan ◽  
Hamad Raza ◽  
Humara Ahmad
Keyword(s):  
Corporate Governance ◽  
Financial Distress ◽  
Firm Value ◽  
Agency Cost ◽  
Review Of Literature ◽  
Firm Level ◽  
Country Level ◽  
Financial Distress Prediction ◽  
Good Corporate Governance ◽  
Governance Practices

Good corporate governance practices play an import role in increasing the firm value. Based on the agency theory related to corporate governance, if an agent (management) does not protect interest of principal (shareholders) then, agency cost is occurred and this creates a bad impact on the corporate performance. Therefore, it is necessary to address weak corporate governance practices in early stages otherwise firms can go in financial distress and eventually become bankrupt. The objective of this current study is to conduct a nonsystematic review of literature on theories and models related to corporate governance and financial distress. In the light of thorough review of literature, it is found that corporate governance variables (i.e. ownership concentration, board size, board composition, CEO duality, level of independence of board from management and managerial ownership) are good predictors for predicting financial distress. Moreover, it is also found that these corporate governance variables were not only used separately for predicting financial distress but also used along with others variables (firm level and country level) for the purpose of enhancing quality of financial distress models.

scholarly journals Pengaruh Good Corporate Governance (GCG), Profitabilitas, dan Leverage Terhadap Nilai Perusahaan

2020 ◽  
Vol 1 (2) ◽  
pp. 113-123
Author(s):  
Indriana Damaianti
Keyword(s):  
Corporate Governance ◽  
Firm Value ◽  
Stock Exchange ◽  
Secondary Data ◽  
Sampling Technique ◽  
Total Sample ◽  
Annual Reports ◽  
Financial Reports ◽  
Mining Companies ◽  
Good Corporate Governance

Abstract: The purpose of purpose of this study is to determine the influence of Good Corporate Governance (GCG), profitability, and leverage on firm value in mining companies. This study used secondary data from financial reports, annual reports, and other related information of mining companies listed on Indonesia Stock Exchage (IDX) in the 2014-2018 period. The research method used is the explanatory method. The population in this study were mining companies listed on the Indonesia Stock Exchange (IDX) in the 2014-2018 period, which were 41 companies with total sample 30 companies that matches the criteria. The sampling technique used is a purposive sampling. Data analysis technique used is multiple linear regression. The result showed that only Good Corporate Governance (GCG) variable measured by board of director has a positive and significant effect on the firm value, meanwhile profitability variable measured by Return On Asset (ROA), leverage variable measured by Debt to Equity Ratio (DER), and Good Corporate Governance (GCG) variable measured by board of commissioner independent not significantly impact on the firm value in mining companies.

scholarly journals PENGARUH CORPORATE GOVERNANCE DAN POLITICAL CONNECTION TERHADAP TAX AVOIDANCE DAN DAMPAKNYA PADA NILAI PERUSAHAAN

SIMAK ◽  
2020 ◽  
Vol 18 (01) ◽  
pp. 21-46
Author(s):  
Suwandi Ng ◽  
Felicia Katrin Phie
Keyword(s):  
Corporate Governance ◽  
Significant Influence ◽  
Firm Value ◽  
Stock Exchange ◽  
Hypothesis Test ◽  
Tax Avoidance ◽  
Annual Reports ◽  
Political Connection ◽  
Financial Reports ◽  
Governance Practices

This study aims to investigate the influence of corporate governance and political connection to tax avidance, and its impact on value of firm. The population used is all companies listed on the Indonesia Stock Exchange (IDX) with the study period 2015-2017. The sample size is 102 companies per year, selected by purposive sampling method. This study uses documentary data, namely annual reports and financial reports. Path analysis was used to analyze data and hypothesis test of mediation was done by sobel test. The results of this study indicate that corporate governance has a negative and significant influence on tax avoidance, while the political connection has a positive and significant effect on tax avoidance. Tax avoidance has a negative and significant influence on firm value. In addition, tax avoidance can mediate the influence of political connection on firm value. The implications of this research are companies with high levels of corporate governance practices that have better controls, thus reducing tax avoidance. While the relationship of political connection encourage companies to act more aggressively in tax avoidance action. Tax avoidance conducted by the company shows the practice of tax avoidanceso as to lower the level of investor confidence in investing its capital that impact on the decline in corporate value.

scholarly journals Examination of Historical Advancement of Corporate Governance in India– Contemporary Issues and Way Forward

2021 ◽  
Vol 1 (3) ◽  
pp. 14-19
Author(s):  
Deepika Kulhari
Keyword(s):  
Corporate Governance ◽  
Capital Market ◽  
Past Experience ◽  
Legal Issue ◽  
The Past ◽  
Good Corporate Governance ◽  
Lessons Learnt ◽  
Governance Practices ◽  
Clause 49 ◽  
Shocking Event

In the Era of Globalised world, the importance of Fair Corporate Governance policies has been recognized by different countries. From collapse of Wallpaper Group Coloroll in UK, Enron Scandal in US and Satyam Scam in India, all of these countries have witnessed some of the largest Corporate Scams. With the help of good Corporate Governance Policies, a country can protect its economy and investment made therein. It encourages shareholders to invest in capital market and ensure safety of their investment. In India, the corporate governance and its basic pillars on which governance stands i.e. Transparency, Accountability and Fairness, were introduced through Clause 49. This was done only after it was recommended by the Kumar Mangalam Committee. Yet, subsequently the shocking event of Satyam Scam & other Corporate Governance failure continues to hit Indian economic on various occasions. This paper will analyse the past experience of some of the famous scams happened in India specifically in past one decade and the lessons learnt thereby. The paper furthermore discusses the current legal issue and the challenges faced by Corporate Governance practices in India. Keywords - Corporate Governance, Corporate Scam, SEBI.

scholarly journals Corporate governance mechanisms and their impact on firm value

2006 ◽  
Vol 4 (1) ◽  
pp. 25-36 ◽  
Author(s):  
Esther B. Del Brio ◽  
Elida Maia-Ramires ◽  
Javier Perote
Keyword(s):  
Corporate Governance ◽  
Firm Value ◽  
Anglo Saxon ◽  
Panel Data Estimation ◽  
Good Corporate Governance ◽  
Corporate Governance Mechanisms ◽  
Corporate Governance Codes ◽  
Governance Practices ◽  
Audit Reports ◽  
The Impact

Previous studies have cast doubts on the effectiveness of corporate governance codes in Continental- European countries, due to their Anglo-Saxon orientation. We chose a Continental-European country with an Anglo-Saxon orientated code, such as Spain, and analyse the effects of the recommendations proposed in the Spanish Olivencia Code on the value of the firm. By using panel data estimation, we analyse the impact on firm’s value of some corporate governance related variables, such as the quality of audit reports, the magnitude of director remuneration, the reporting on director remuneration or the firm size. Results suggest a positive relationship between good corporate governance practices and the value of the company. Moreover, the more transparent the company is and the more favourable audit reports they obtain, the better the firm’s value. We also conclude that it is the degree of compliance with the codes, rather than the mere reporting of whether firms comply or not with them, which increases firm’s value.

scholarly journals Corporate Governance and Performance of Firms Listed on the Nairobi Securities Exchange

2018 ◽  
Vol 6 (01) ◽  
Author(s):  
Edward Kobuthi ◽  
Peter K’Obonyo ◽  
Martin Ogutu
Keyword(s):  
Corporate Governance ◽  
Main Tool ◽  
Internal Audit ◽  
Annual Reports ◽  
Good Corporate Governance ◽  
Governance Practices ◽  
And Performance ◽  
Code Of Corporate Governance ◽  
Transparency And Disclosure ◽  
And Control

The purpose of this study was to establish the effect of corporate governance on performance of firms listed on the Nairobi Securities Exchange (NSE). The author developed a corporate governance index as a proxy for corporate governance based on the seven attributes of the recently revised Capital Markets Authority (CMA) draft code of corporate governance practices for public listed companies in Kenya. The guidelines cover board operations and control, rights of shareholders, stakeholder relations, ethics and social responsibilities, accountability, risk management and internal audit, transparency and disclosure and supervision and enforcement. The survey questionnaire was the main tool of data collection and was distributed to 56 CEOs and corporation secretaries. The response rate was 87.5%. Annual reports for 2015 were used to compute the CGI score for the different organizations. The study found a statistically significant relationship between corporate governance and non-financial performance of firms listed on the Nairobi Securities Exchange confirming that organizations can enhance their performance by implementing good corporate governance, specifically those attributes of good corporate governance that matter.

Pengaruh Kinerja Keuangan dan Good Corporate Governance (GCG) Terhadap Nilai Perusahaan

MBIA ◽  
2019 ◽  
Vol 17 (2) ◽  
pp. 1-10
Author(s):  
Rolia Wahasusmiah
Keyword(s):  
Corporate Governance ◽  
Firm Value ◽  
Sampling Method ◽  
Total Population ◽  
Annual Report ◽  
Stock Exchange ◽  
Secondary Data ◽  
Positive Influence ◽  
Manufacturing Companies ◽  
Good Corporate Governance

This study aims to determine the effect of financial performance and good corporate governance (GCG) on the value of companies in manufacturing companies listed on the stock exchange Indonesia. The type of data used is secondary data in the form of annual report 2016. Population used in this study are all companies listed on the Indonesia Stock Exchange (BEI). This research uses purposive sampling method with total population of 144 companies and sample of 31 companies. The results show that simultaneously ROA, OPM, NPM, KM, and KI have a positive influence on firm value. While partially ROA  have a positive influence on firm value. While OPM, NPM, KM, and KI have no positive influence on firm value).

DHFL Meltdown: The Corporate Governance Lapses

2021 ◽  
pp. 097282012199882
Author(s):  
Daitri Tiwary ◽  
Arunaditya Sahay
Keyword(s):  
Corporate Governance ◽  
Banking Sector ◽  
Housing Finance ◽  
Shadow Banking ◽  
Share Prices ◽  
A Value ◽  
Governance Practices ◽  
The Board Of Directors ◽  
Company Sector ◽  
Financial Company

India’s non-banking financial institutions (NBFIs), broadly constituting the less-regulated shadow banking sector, have been plagued with scams, triggering a domino effect in the Indian money market. Major corporate governance issues were highlighted in NBFIs with the unfurling of the ILF&S fraud; it virtually created a sub-prime crisis. In such a scenario, where the shadow banking sector was subject to change in regulations to ensure vigilance, corporate governance lapses had again led to the meltdown of Kapil Wadhawan led Dewan Housing Finance Limited (DHFL). Registering a net profit growth of 25% in the third quarter of financial year 2017, DHFL was one of India’s leading housing finance companies with a value of whopping ₹1.01 trillion as its asset under management (AUM). The company had nose-dived from its coveted position, suffering a loss of ₹22.23 million for the last quarter of the financial year 2018–2019. The company’s credit ratings of commercial papers and non-convertible debentures were downgraded; non-payment of interests led to enforcement of resolution plan, with the board of directors acceding to nationalized banks. The company’s reputation had crashed with its share prices, amidst allegations of lookout notice issued for its promoters for siphoning funds through shell companies. The case describes the oversights and negligence of DHFL in terms of corporate governance practices in the context of the NBFC (non-banking financial company) sector. The jury is out to evaluate whether Wadhawan had followed the rules of corporate governance in letter and spirit, or the tightening noose of regulations and market sentiments around the ‘shadow banking’ sector of India spelt doom for DHFL.

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