Corporate Governance Legal Reforms and Stock Return in Malaysia

2010 ◽  
Author(s):  
Bee-Wah Grace Ooi ◽  
Nuttawat Visaltanachoti
Keyword(s):  
Corporate Governance ◽  
Stock Return ◽  
Legal Reforms

The evolution of the monitoring board in Japan: how the board performs monitoring function in Japanese corporate governance

2019 ◽  
Vol 19 (5) ◽  
pp. 999-1014
Author(s):  
Kohei Miyamoto
Keyword(s):  
Corporate Governance ◽  
Design Methodology ◽  
Stock Exchange ◽  
White Paper ◽  
Lifetime Employment ◽  
Content Type ◽  
Legal Reforms ◽  
Legal Evolution ◽  
Commercial Code ◽  
Governance Institutions

Purpose The purpose of this paper is to trace a legal evolution of the monitoring board and to reveal what brought the evolution and what is expected to emerge. The paper points to unique complementarities in Japanese corporate governance institutions and norms which will affect how the monitoring board performs its functions. Design/Methodology/Approach Analysis is based on texts on corporate governance legislations in Japan from the revision of Commercial Code in 1950 to the revision of Companies Act in 2014. Other sources include Tokyo Stock Exchange regulations, White Paper on Corporate Governance and other academic literatures on Japanese corporate governance. Findings Changes of non-legal institutions and norms in Japanese corporate governance necessitated legal reforms toward the monitoring board. Persisting institutions and norms, in particular lifetime employment, influences how the monitoring board performs its functions in Japan. Originality/Value This paper explains how the evolution of the monitoring board in Japan emerged and what will cause different expected functions of the monitoring board in Japan and other jurisdictions.

The Effect of Profitability, Asset Structure, Company Size on Stock Returns with Corporate Governance as Moderating Variables in Manufacturing Companies on the IDX in 2009-2018

2021 ◽  
Vol 8 (8) ◽  
pp. 55-63
Author(s):  
Deby Yurika Lasmarito Siahaan ◽  
Rina Br Bukit ◽  
Tarmizi .
Keyword(s):  
Corporate Governance ◽  
Stock Returns ◽  
Firm Size ◽  
Significant Influence ◽  
Stock Return ◽  
Company Size ◽  
Research Model ◽  
Manufacturing Companies ◽  
Research Results ◽  
Moderating Variables

The research objective was to examine and analyze whether Profitability, Asset Structure, Firm Size simultaneously and partially influenced Stock Returns in Manufacturing Companies. In addition, this study also tries to prove whether Corporate Governance can be used as a moderator in the research model. The research results showed that simultaneously Profitability, Asset Structure, Firm Size significantly influenced Stock Returns. Partially, profitability has a positive and significant influence on Stock Returns. Asset Structure has a positive and significant influence on Stock Returns, and Company size has a positive and insignificant influence on Stock Returns. The variable of Corporate Governance can moderate the influence of Asset Structure on Stock Returns. However, Corporate Governance will not be able to moderate the influence of Profitability on Stock Returns. Keywords: Profitability, Asset Structure, Firm Size, Stock Return, and Corporate Governance.

The Eurozone crisis and Italian corporate governance: the end of blockholding?

Modern Italy ◽  
2015 ◽  
Vol 20 (4) ◽  
pp. 365-378 ◽  
Author(s):  
Fabio Bulfone
Keyword(s):  
Corporate Governance ◽  
Sovereign Debt ◽  
Debt Crisis ◽  
Informal Institutions ◽  
Eurozone Crisis ◽  
Process Of Change ◽  
Business Elites ◽  
Legal Reforms ◽  
Italian Case ◽  
Behavioural Patterns

This article explains the process of change in domestic corporate governance. An actor-centred coalitional approach is applied to the Italian case to show how the main features of domestic corporate governance are a product of behavioural patterns (i.e. informal institutions), rather than formal legislation. Leveraging their superior financial means, business elites act as institutional incumbents shaping these informal institutions according to their preferences. It is argued that a change in corporate practices is more likely to be triggered by a socio-economic crisis, which weakens the domestic elite's influence, rather than a legal reform. These findings call into question the excessively formalistic approach of many corporate governance scholars, and are confirmed by the Italian trajectory. After having resisted 20 years of liberalising legal reforms aimed at eroding their power, Italian blockholders are now being forced, as a consequence of the Eurozone sovereign debt crisis, to dismantle their cross-shareholding networks.

scholarly journals MENGGUNAKAN MD&A UNTUK MENINGKATKAN PERKIRAAN PENDAPATAN DAN REAKSI INVESTOR (STUDI EMPIRIS PERUSAHAAN GO PUBLIC DI INDEKS SAHAM SYARIAH INDONESIA)

2020 ◽  
Vol 4 (2) ◽  
pp. 309-332
Author(s):  
Mila Alim Bahri
Keyword(s):  
Corporate Governance ◽  
Stock Returns ◽  
Trading Volume ◽  
Stock Return ◽  
Annual Report ◽  
Market Reaction ◽  
T Test ◽  
Stock Index ◽  
Volume Activity ◽  
Purposive Sampling

Abstract This study aims to provide empirical evidence of investors' reactions to disclosure management discussion and analysis (MD&A) and Trading Volume Activity (TVA) in companies listed on the Indonesia Stock Exchange from 2013 to 2018. The motivation for this research is that there are not many studies in Indonesia. which investigated the effects of MD&A on investor decisions which are illustrated by the market reaction to stock returns and volume of trading activity (TVA). This research is a quantitative study using secondary data as a source of data collection with the population of companies registered in ISSI for the 2013-2018 period. With the purposive sampling technique, 30 companies were obtained based on the highest average daily transaction value in the regular market listed in the JII (Jakarta Islamic Index). The final data used in this study are those obtained from the Annual Report of companies listed on the Indonesian Sharia Stock Index (ISSI) and JII, the Corporate Governance Perception Index (CGPI) data from the survey results of The Indonesian Institute of Corporate Governance (IICG) for the period 2013-2018. Yahoo Finance Historical Prices list for the period 2013-2018, and SWA Magazine for the period 2013-2018. Then, hypothesis testing is carried out using multiple linear regression tests and partial non-parametric correlation. The results show that (1) there is a significant positive relationship of MD&A disclosure on stock returns and (2) there is a disclosure of a significant positive effect of MD&A on trading volume activities (TVA). This study also adds a paired sample t-test to find out the difference before and after the stock price and TVA. Keywords: Management's Discussion and Analysis (MD&A), Market Reaction, Stock Return, Trading Volume Activity.   Abstrak Penelitian ini bertujuan untuk memberikan bukti empiris dari reaksi investor terhadap pengungkapan manajemen diskusi dan analisis (MD&A) dan Trading Volume Activity (TVA) pada perusahaan yang terdaftar di Bursa Efek Indonesia pada tahun 2013 sampai dengan 2018. Motivasi penelitian ini adalah belum banyaknya studi di Indonesia yang menyelidiki efek MD&A pada keputusan investor yang diilustrasikan oleh reaksi pasar terhadap pengembalian saham dan volume aktivitas perdagangan (TVA). Penelitian ini merupakan penelitian kuantitatif dengan menggunakan data sekunder sebagai sumber pengumpulan data dengan populasi perusahaan yang terdaftar di ISSI periode 2013-2018. Dengan teknik Purposive Sampling sehingga diperoleh 30 perusahaan berdasarkan rata-rata nilai transaksi harian di pasar regular tertinggi yang terdaftar dalam JII (Jakarta Islamic Indeks). Data akhir yang digunakan dalam penelitian ini adalah yang diperoleh dari Annual Report perusahaan yang terdaftar di Indeks Saham Syariah Indonesia (ISSI) dan JII, data Corporate Governance Perception Index (CGPI) hasil survei The Indonesian Institute of Corporate Governance (IICG) periode 2013-2018, daftar Historical Prices Yahoo Finance periode 2013-2018, dan Majalah SWA periode 2013-2018. Kemudian, pengujian hipotesis dilakukan dengan menggunakan beberapa uji regresi linear dan korelasi non-parametrik parsial. Hasilnya menunjukkan bahwa (1) ada hubungan positif yang signifikan dari pengungkapan MD&A pada pengembalian saham dan (2) ada pengungkapan efek positif yang signifikan dari MD&A pada aktivitas volume perdagangan (TVA). Studi ini juga menambahkan pairedsampel t-test untuk mengetahui perbedaan sebelum dan sesudah harga saham dan TVA. Kata kunci: Management's Discussion and Analysis (MD&A), Market Reaction, Stock Return, Trading Volume Activity.

scholarly journals Stock return and financial performance as moderation variable in influence of good corporate governance towards corporate value

2019 ◽  
Vol 4 (1) ◽  
pp. 18-34 ◽  
Author(s):  
Suhadak Suhadak ◽  
Kurniaty Kurniaty ◽  
Siti Ragil Handayani ◽  
Sri Mangesti Rahayu
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Stock Price ◽  
Stock Return ◽  
Stock Exchange ◽  
Complete Information ◽  
Company Performance ◽  
Corporate Value ◽  
Content Type ◽  
Good Corporate Governance

Purpose The purpose of this paper is to evaluate how much influence good corporate governance (GCG) has on corporate value, as well as moderating effect of stock return and financial performance on the influence of GCG on corporate value. Design/methodology/approach This study was an explanatory study. The unit of analysis was the companies listed in LQ45 in Indonesian Stock Exchange and the sources of data were ICMD, annual report and financial reports of the companies. Indonesian Stock Exchange was selected as the setting of the study since Indonesian Stock Exchange is one of trading places for various types of companies in Indonesia, and it provides complete information on company’s financial data and stock price. The population was 84 companies listed in LQ45 in Indonesian Stock Exchange between 2010 and 2016. Findings The higher GCG, independent commissioners proportion, institutional managerial and public ownerships resulted in higher corporate value. MBE and PER stock return is a moderating variable in the influence of GCG on corporate value. Financial performance is moderating variable in the influence of GCG on corporate value. Originality/value Based on the previous studies, it may be concluded that there is a gap between the influence of GCG on corporate value and the influence of stock return on financial performance, and moderating variable is needed to evaluate the influence of GCG on company performance, more particularly stock return and financial performance. This discrepancy creates opportunity for conducting an in-depth study on those variables. Its novelty is correlation between stock return and financial performance as moderation. Previous studies used these as mediating variables. This study is going to generate different finding as it is conducted in different setting (country where this study is conducted), type of industry, research period and using different method of analysis.

Corporate governance and transparency: evidence from stock return synchronicity

2015 ◽  
Vol 7 (2) ◽  
pp. 157-179 ◽  
Author(s):  
Matthew Ntow-Gyamfi ◽  
Godfred Alufar Bokpin ◽  
Albert Gemegah
Keyword(s):  
Corporate Governance ◽  
Stock Returns ◽  
Capital Market ◽  
Stock Return ◽  
Emerging Market ◽  
Least Square ◽  
Specific Information ◽  
Stock Selection ◽  
Content Type ◽  
Reputation Effects

Purpose – The purpose of the study is to examine the influence of corporate governance on the flow of firm-specific information in an emerging market. Design/methodology/approach – Synchronicity is estimated under assumptions of contemporaneous and non-contemporaneous relationship between individual stock returns and the market return. Possible thin-trading effect is also corrected using the Dimson’s Beta approach to estimate synchronicity. In the main empirical model, both the Panel-Corrected Standard Errors and the Generalized Least Square estimations were used to provided robust evidence of governance influencing transparency. Findings – Corporate governance was found to broadly influence the release of firm-specific information in a relatively opaque market through the information environment. However, no evidence in support of the “auditor-reputation effects” theory was found. As well, CEO duality does not create an individual powerful enough to reduce the monitoring role of boards. We further document the presence of noise trading on the Ghana Stock Exchange. Practical implications – This study suggests that specific corporate mechanism practices have implications for stock selection in a relatively high information asymmetry Capital Market. Investors require transparency; hence, firms with governance mechanisms that elicit such transparency are likely to attract investors. Originality/value – This study is the first to examine the relationship between governance and transparency while using stock return synchronicity as a proxy for transparency in an emerging Ghanaian Capital Market.

scholarly journals The Impact of Corporate Cultural Behaviour on Common Stock Return: Some Implications for Corporate Governance

2018 ◽  
Vol 80 (1) ◽  
pp. 115-130
Author(s):  
Chamil W. Senarathne
Keyword(s):  
Corporate Governance ◽  
Stock Returns ◽  
Stock Return ◽  
Stock Exchange ◽  
Common Stock ◽  
Listed Firms ◽  
It Impacts ◽  
Research Questions ◽  
The Impact ◽  
The Relationship

AbstractThis paper examines the relationship between common stock return and corporate cultural behaviour of twenty listed firms from Shanghai Stock Exchange. The particular research questions of this study include: whether corporate cultural behaviour impacts common stock returns and under what conditions it impacts shareholder expectations and corporate governance.

scholarly journals Structure and Role of the Board of Directors according to the Company Law of Jordan: The Need for Revision

2018 ◽  
Author(s):  
Bashar H. Malkawi
Keyword(s):  
Corporate Governance ◽  
Best Practice ◽  
Company Law ◽  
Legal Reforms ◽  
Corporate Governance Code ◽  
The World ◽  
The Board Of Directors ◽  
Per Se ◽  
Made In

Corporate governance is developing rapidly in many countries across the world. In this article, the existing state of corporate governance in Jordan is examined. Jordan does not have a corporate governance code per se. The article reveals that overall Jordan has in place some of the features of corporate governance best practice, but that there remains further progress to be made in areas such as independence of directors, compensation, and correlation between shareholding and entitlement to seats on the board. The article recommends legal reforms in order to enhance corporate governance in Jordan.

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