PENGARUH PERSEPSI TATA KELOLA DAN KARAKTERISTIK PERUSAHAAN TERHADAP RISK-TAKING BEHAVIOR INVESTOR DI PASAR SAHAM

2014 ◽  
Vol 10 (1) ◽  
pp. 31
Author(s):  
Wiwit Widyawati ◽  
Triyono Triyono
Keyword(s):  
Corporate Governance ◽  
Stock Returns ◽  
Risk Taking ◽  
Stock Exchange ◽  
Institutional Ownership ◽  
Firm Characteristics ◽  
Final Sample ◽  
Sample Data ◽  
Risk Taking Behavior ◽  
The Relationship

This study examines the relationship between the corporate governance perception index and firm characteristics are proxied by institutional ownership , profitability (ROA), growth opportunities (growth sales) and size on the risk-taking behavior judged by market stock returns. The population are company that list in Indonesian Stock Exchange (IDX) and Indonesian Institute for Corporate Governance (IICG) from 2006-2012. Sample was collected based on purposive sampling and resulted in 91 companies as a final sample. Data was collected from Indonesian Capital market Directory (ICMD) and The Indonesian Institute for Corporate Governance (IICG). Its was analyzed with multiple regression analysis. The results indicated that corporate governance perception index, institutional ownership, growth sales and size have significant effect on investor’s risk-taking behavior. But ROA does not impact on investor’s risk-taking behavior. Keywords : corporate governance perception index, firm’s characteristic, risk-taking behavior.

The Effect of Company Size on the Relationship between Corporate Governance and Corporate Performance in the Iraqi Stock Exchange

2021 ◽  
Vol 39 (11) ◽  
Author(s):  
Ghazwan Al-Shiblawi ◽  
Dalal Mahdi ◽  
Mohammed Mahdi
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Significant Relationship ◽  
Corporate Performance ◽  
Stock Exchange ◽  
Institutional Ownership ◽  
Company Size ◽  
Statistical Population ◽  
The Board Of Directors ◽  
The Relationship

The aim of the present study is to assess The Effect of Company Size on the Relationship between Corporate Governance and Corporate Performance in the Iraqi Stock Exchange. The statistical population under study is listed companies of  Iraq Stock Exchange and the number of companies studied in Iraq is 35, from 2015-2019. The results concluded that there is a statistically significant relationship between the change (increase) of institutional ownership and the performance of the company, and this relationship is direct, as well as the relationship between the change (increase) of institutional ownership and the performance of the company. It can change under the influence of the company's size, and this relationship is negative, meaning the larger the company's size, the weaker the relationship. At the same time, the existence of a relationship between changing the composition of the members of the Board of Directors and the performance of the company was not supported, as well as between changing (increasing) the independence of the Board of Directors and the performance of the company, in addition to the relationship between changing the composition of the Board of Directors. The independence of the Board of Directors and the performance of the company is not affected by the change in the size of the company

scholarly journals The Relationship between Corporate Governance Mechanisms and Going Concern Evaluation: Evidence from Firms Listed on Amman Stock Exchange

2014 ◽  
Vol 4 (4) ◽  
pp. 100
Author(s):  
Bilal Nayef Zureigat ◽  
Faudziah Hanim Fadzil ◽  
Syed Soffian Syed Ismail
Keyword(s):  
Corporate Governance ◽  
Stock Exchange ◽  
Negative Relationship ◽  
Institutional Ownership ◽  
Board Independence ◽  
Board Meeting ◽  
Governance Mechanisms ◽  
Going Concern ◽  
Corporate Governance Mechanisms ◽  
The Relationship

This study aims to examine the relationship between corporate governance mechanisms (representative by each of managerial, institutional ownership, board independence and board meeting) and going concern evaluation among Jordanian listed firms. Through using multiple regression analysis, the results of this study illustrates that there is a positive relationship between managerial ownership, board independence and board meeting and going-concern evaluation, while a negative relationship is found with institutional ownership. There are four main hypotheses, two of them which are managerial and institutional ownership are accepted, while board independence and board meeting are not supported. This study shed more light on the importance of complying with the requirements of governance code and instructions by the companies and the need to impose fines or sanctions on non-compliant companies. The results of this study contribute to the creditors’ interest to be more alert to companies which may possess characteristics that contribute in manipulation of future companies.

scholarly journals The Relationship of Insider Trading Announcements, Ownership Structure and Corporate Governance: An Event Study Analysis of Athens Stock Exchange Market Technology Firms

2019 ◽  
Vol 11 (7) ◽  
pp. 13 ◽  
Author(s):  
Ioannis Antoniadis ◽  
Christos Gkasis ◽  
Stamatis Kontsas
Keyword(s):  
Corporate Governance ◽  
Stock Returns ◽  
Event Study ◽  
Insider Trading ◽  
Boards Of Directors ◽  
Stock Exchange ◽  
Time Windows ◽  
Abnormal Stock Returns ◽  
Athens Stock Exchange ◽  
The Relationship

In the present paper, the relationship between corporate governance mechanisms of a firm and stock returns triggered by insider trading announcements is examined. Event study methodology has been used to evaluate the influence of 636 insider trading announcements performed by executives of 14 listed firms in the Athens Stock Exchange, that operate in the technology sector, during the period 2007-2013. The relationship between cumulative abnormal stock returns (CARs), caused by the announcements, and corporate governance characteristics, was then examined for different time windows, both for sales and purchases of stocks by insiders. Our findings suggest that insider trading, especially in purchases, performed by CEOs and members of the Boards of Directors, has a significant effect on stock returns in the long run. More specifically concentrated ownership structures and control were found to have a negative/positive effect in abnormal stock returns of the firms only in long-term periods of time following the announcement of purchases/sales.

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 PENGARUH GOOD CORPORATE GOVERNANCE TERHADAP SAHAM RETURN PERUSAHAAN PERBANKAN YANG TERCATAT DI BEI PERIODE 2016–2019 [THE INFLUENCE OF GOOD CORPORATE GOVERNANCE ON STOCK RETURNS OF BANKING COMPANIES LISTED ON IDX FROM 2016 TO 2019]

2021 ◽  
Vol 1 (2) ◽  
pp. 125
Author(s):  
Natalia Natalia ◽  
Herlina Lusmeida
Keyword(s):  
Corporate Governance ◽  
Stock Returns ◽  
Audit Committee ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Institutional Ownership ◽  
Multiple Linear Regression Analysis ◽  
Managerial Ownership ◽  
Purposive Sampling ◽  
Good Corporate Governance

<p>The purpose of this study is to analyze the effect of good corporate governance on stock returns. Return is the level of profit obtained by investors on investment activities. Good corporate governance used in this study is an independent board of commissioners, audit committee, managerial ownership, and institutional ownership. This research was conducted using the annual report documentation method of banking companies listed on the Indonesia Stock Exchange (IDX) from 2016 to 2019. The sampling method in this study was purposive sampling with the number of samples obtained is 106 samples. Data processing is done by quantitative method using multiple linear regression analysis. The results of the study show that the audit committee and institutional ownership have a negative and significant effect on stock returns, while independent commissioners and managerial ownership have no effect on stock returns.<em></em></p><p><strong>BAHASA INDONESIA ABSTRAK</strong></p><p>Tujuan dari penelitian ini adalah untuk menganalisis pengaruh <em>good corporate governance</em> terhadap pengembalian saham. <em>Return</em> adalah tingkat keuntungan yang diperoleh investor atas kegiatan investasi. <em>Good corporate governance </em>yang digunakan dalam penelitian ini adalah dewan komisaris independen, komite audit, kepemilikan manajerial dan kepemilikan institusional. Penelitian ini dilakukan dengan metode dokumentasi laporan tahunan perusahaan perbankan yang terdaftar di Bursa Efek Indonesia (BEI) 2016–2019. Metode pengambilan sampel dalam penelitian ini adalah <em>purposive sampling</em> dengan jumlah sampel yang diperoleh sebanyak 106 sampel. Pengolahan data dilakukan dengan metode kuantitatif dengan menggunakan analisis regresi linier berganda. Hasil penelitian menunjukkan variabel komite audit dan kepemilikan institusional berpengaruh negatif dan signifikan terhadap <em>return</em> saham, sedangkan dewan komisaris independen dan kepemilikan manajerial tidak berpengaruh terhadap <em>return</em> saham.</p><p><strong><br /></strong></p>

Impact of corporate governance on capital structure: mediating role of cost of capital

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Aisha Javaid ◽  
Mian Sajid Nazir ◽  
Kaneez Fatima
Keyword(s):  
Corporate Governance ◽  
Capital Structure ◽  
Cost Of Capital ◽  
Stock Exchange ◽  
Institutional Ownership ◽  
Managerial Ownership ◽  
Content Type ◽  
Mediating Role ◽  
The Relationship

PurposeThis paper contributes to the existing literature by extending the empirical work on the relationship between corporate governance and capital structure by analyzing the mediating role of cost of capital in the non-financial firms listed on the Pakistan Stock Exchange (PSX).Design/methodology/approachThe sample for this study includes non-financial firms listed on the Pakistan Stock Exchange (formerly Karachi Stock Exchange) for the period of 2004–2016. Based on 1800 firm-year observations, three approaches of panel data analysis are applied for the step-wise analysis of the underlying study. Firstly, Pooled OLS is applied. Secondly, fixed and random effect panel regression followed by the Hausman test to check the unobservable individual heterogeneity of the data. Hausman test indicates that the fixed-effects model is the most appropriate model for the sample panel data.FindingsThe study's findings are that board size, board composition, CEO/Chair duality, institutional ownership and managerial ownership have statistically significant direct effect on the firm's financing decisions. However, CEO/Chair duality, institutional ownership and managerial ownership have significant indirect effect on firm's capital structure decisions. The interesting finding of the paper is on the evidence of mediating role of cost of capital in the nexus of corporate governance and capital structure. Moreover, some conventional determinants of capital structure, including the firm's size, asset structure of the firm, profitability, business risk and growth, are found as determinants of capital structure decisions of the firms.Research limitations/implicationsThere are a few limitations to our study which could be addressed by upcoming research. We did not include all the four mechanisms of corporate governance including board structure, audit structure, compensation structure and ownership structure. However, we used only five important attributes including board size, board composition and CEO/Chair duality form board structure, managerial ownership and institutional ownership form ownership structure of corporate governance as our explanatory variables to examine their impact on the capital structure choices of the firms. Future studies may fill this research gap by involving some other attributes of corporate governance and analyzing their effectiveness and impact on value relevant capital structure decisions. Further, due to limited time and resources, we only tested the mediating role of cost of capital, hence, future researchers can analyze the mediating and moderating roles of different variables which may influence the relationship between corporate governance and capital structure choices of the firms.Practical implicationsThe study has many valuable guidelines and practical implications for the financial managers of the corporations. Our results will facilitate the policymakers in setting their corporate governance policies and practices and making the value relevant capital structure decisions in compliance with the implications of corporate governance mechanism. In addition, our study provides the empirical evidence in accordance with the argument that good governance practices, particularly the voluntary disclosures by the firm may reduce the information asymmetry which, ultimately, reduces the agency cost and the cost of capital for the firm. However, while deciding the financial policy of the corporations, managers can use our findings in order to assess the effectiveness of corporate governance practices employed by the firm in achieving the optimal capital structure at which the weighted average cost of capital is at its minimum level.Originality/valueThis paper contributes to the literature by investigating the mediating role of the cost of capital in the relationship between corporate governance and capital structure decisions of the firms. This paper provides empirical evidence that corporate governance indirectly affects capital structure decisions through the mediating role of cost of capital.

The Effect of Corporate Governance on Bank's Dividend Policy: Evidence from Jordan

2013 ◽  
Vol 03 (01) ◽  
pp. 30-39
Author(s):  
Demeh Ahmad Daradkah ◽  
Moh'd Mahmoud Ajlouni
Keyword(s):  
Growth Rate ◽  
Corporate Governance ◽  
Stock Exchange ◽  
Institutional Ownership ◽  
Market Valuation ◽  
Ownership Concentration ◽  
Stock Valuation ◽  
Book Value ◽  
Amman Stock Exchange ◽  
The Relationship

This study aims at investigating the relationship between corporate governance measures and dividends policy, along with other control variables, such as tax charges, growth rate, market valuation of the bank’s book value and profitability. Using all banks listed in Amman Stock Exchange during the period 2001-2009, the analysis is performed by employing each of the institutional ownership and top shareholders, separately, as a proxy of corporate governance (GC) and dividends payout ratio (DPR) as a proxy for the dividends. The empirical results show strong evidence on the importance of one simple CG measure, i.e. institutional ownership concentration or top shareholders, on bank’s DPR. Similarly, there were evidences on the effect of tax charges, total assets growth rate, market valuation (MVBV) and profitability (ROE) on dividends policy. Thus, banks with more institutional investors or top shareholders have higher DPR, which is consistent with agency models of dividends. In addition, taxes, market valuation and profitability are negatively associated with DPR, which is consistent with stock valuation models.

scholarly journals Pengaruh Good Corporate Governance pada Nilai Perusahaan dengan Kinerja Keuangan sebagai Variabel Mediasi

2020 ◽  
Vol 30 (2) ◽  
pp. 388
Author(s):  
Gede Marco Pradana Dika Putra ◽  
Ni Gusti Putu Wirawati
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Firm Value ◽  
Stock Price ◽  
Stock Exchange ◽  
Institutional Ownership ◽  
Managerial Ownership ◽  
Good Corporate Governance ◽  
The Relationship ◽  
Positive Effect

A firm not only aims to get profits but also maximize its value  which can be reflected in stock price. Research aims to examine the effect of good corporate governance on firm value with financial performance as a mediating variable. The study conducted on LQ45 companies listed on Indonesia Stock Exchange in 2017-2018. Sample determined by purposive sampling with 32 samples. Path analysis was used. analysis showed managerial ownership and institutional ownership had no effect on financial performance, managerial ownership and institutional ownership had no effect on firm value, financial performance had a positive effect on firm value, and financial performance was unable to mediate the relationship between GCG and firm value. Keywords: Good Corporate Governance; Firm Value.

scholarly journals PENGARUH MEKANISME GOOD CORPORATE GOVERNANCE, SET KESEMPATAN INVESTASI (IOS) DAN UKURAN PERUSAHAAN TERHADAP KUALITAS LABA

2017 ◽  
Vol 9 (2) ◽  
Author(s):  
Kurniawati Kurniawati
Keyword(s):  
Corporate Governance ◽  
Significant Influence ◽  
Stock Exchange ◽  
Institutional Ownership ◽  
Investment Opportunity ◽  
Set Size ◽  
Good Corporate Governance ◽  
Final Sample ◽  
Investment Opportunity Set

The quality of earnings reported in the financial statements is one of the key factors to make a decision. This study aims to examine the effect of the mechanism of Good Corporate Governance (GCG), which is proxied by board of commissioner and institutional ownership, the investment opportunity set and the size of the company to the quality of earnings.<br />The sample used in this researchwere LQ45 companies listed at the Indonesia Stock Exchange during 2012-2015.Samples are collected by purposive sampling and resulted in 15 firms as the final sample. The statistic method used was multiplied analysis linear regression, with hypotheses testing of statistic t tests (α = 5%).<br />The results of this research showed that the institutional ownership has a significant influence to the quality of earnings, while board of commissioner, investment opportunity set and the size of the company has no significant influence to the quality of earnings.<br />Keywords : good corporate governance, board of commissioner, institutional ownership, investment opportunity set, size of the company, quality of earnings.

PENGARUH CORPORATE GOVERNANCE DAN LEVERAGE TERHADAP KINERJA KEUANGAN PADA PERBANKAN YANG TERDAFTAR DI BEI

2012 ◽  
Author(s):  
Aminar Sutra Dewi
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Sampling Method ◽  
Stock Exchange ◽  
Institutional Ownership ◽  
Company Performance ◽  
Potential Conflict ◽  
Leverage Ratio ◽  
Board Of Director ◽  
Sample Data

Corporate governance's perspective has begun from agency theory that principal as entity's owner give an authority to agent. The separate authority between ownership and management would make any different of interest both of them that may take potential conflict. Corporate governance's perspective will control the behavior and fixed the conflict among company stakeholder. The research about corporate governance's perspective toward the performance has commonly focused, but any findings show inconsistency results. Further reconciliation of this result, it's interesting to make research with different object. This research has purpose to find any empirical evidence about influence of many element of corporate governance's implementation toward to performance of banking in Indonesia. The population is listed banking at Indonesia Stock Exchange that chooses for 2007-2010 as the sample. Purposive sampling method has used to take these sample data. Hypothesis testing used regression analysis. Results show that influence of corporate governance that proximate by institutional ownership, commissioner size, board of director size, and audit committee have positively influence otherwise leverage ratio has negatively and significant influence. And existence of independent commissioner has no significantly influence. Generally this results indicating that Indonesian's banking has begin to implementing corporate governance 's perspective toward increasing company performance and protect principal interest.

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