Pengaruh Board System dan Board Composition terhadap Kinerja Perusahaan: Tinjauan terhadap Konsep Agency Theory dan Stewardship Theory dalam Corporate Governonce

2006 ◽  
Vol 1 (1) ◽  
pp. 86
Author(s):  
Elok Pakaryaningsih ◽  
Yohan Sigit Wibowo
Keyword(s):  
Corporate Governance ◽  
Internal Control ◽  
Stock Exchange ◽  
Board Composition ◽  
Linear Regression Method ◽  
Stewardship Theory ◽  
Board Size ◽  
Multiple Linear Regression Method ◽  
Governance Practices ◽  
Board System

This research examines the effect of internal control mechanism of corporate governance that is board system and board composition on firm performonce. To be specific this research will be qualitatively analized to grasp the application of corporate governance tlteories, which are; agency and stewardship theory that underlie the implementation of corporate governance practices in Indonesian companies. The 198 samples are gathered from Indonesian companies listed in the Jakarta Stock Exchange during 1996 until 2003.Using the multiple linear regression method, board system that is represented by the level of blockholder shows it signtficant effect on firm performance. Wrhile the board size which stand for board composition also shows the similar effect. Furthermore the result of the analysis failed to notice which one of corporate governance theories that underlies the effectiveness of corporate governance practices on firm pedormance in Indonesia.Keywords: board system, board composition, board size, blockholder,pedormance

scholarly journals Corporate Governance and Organisational Performance: Analysis of Nigeria Stock Exchange Listed Companies

2018 ◽  
Vol 6 (4) ◽  
pp. 12
Author(s):  
Olajide Solomon Fadun
Keyword(s):  
Corporate Governance ◽  
Stock Exchange ◽  
Listed Companies ◽  
Board Size ◽  
Ceo Duality ◽  
Positive Correlation ◽  
Performance Variables ◽  
Ceo Tenure ◽  
Governance Practices ◽  
And Performance

<p><em>Corporate governance is relevant in both developed and emerging economies. The study investigated the impact of corporate governance on organisational performance, using thirty (30) randomly selected listed companies in the Nigeria Stock Exchange (NSE) in the year 2016. The study focused on three corporate governance variables (i.e., Board Size, Board Independence, CEO Duality/Tenure); and two performance variables - i.e., Returns on Asset (ROA) and Returns on Equity (ROE). The study does not cover the market measure performance variable of Tobin’s Q. The study is an empirical research, with analytical research design. Secondary data, extracted from published annual reports of selected quoted companies and NSE website, is used for the study. The findings revealed a positive correlation between board size, independence directors, and performance variables; but, showed a negative correlation between CEO tenure and performance variables. The result showed that number of directors was not positively related to performance in selected quoted companies in terms of ROA; but, it revealed a positive correlation between board size and performance in terms of ROE. It also showed that the correlation between CEO tenure and performance variables was negative on the two performance variables (ROA and ROE). Regarding relationship between CEO Duality and performance variables (ROA and ROE), the result showed that CEO Duality has a positive correlation with ROA; but had a negative relationship with ROE. Generally, the study revealed that adoption of sound corporate governance practices by listed companies can improve their performance. Companies can benefit from this improved corporate governance practices by way of increased investment from investors and reduced capital cost. Shareholders confidence would be enhanced with attendant improvement in shareholders wealth. The nation’s economy would also benefit from sound corporate governance practices by way of improved GDP. </em></p>

An investigation of the post-privatization firms’ financial performance in Nigeria: the role of corporate governance practices

2019 ◽  
Vol 19 (3) ◽  
pp. 404-418 ◽  
Author(s):  
Ojonugwa Usman ◽  
Umoru Adejo Yakubu
Keyword(s):  
Corporate Governance ◽  
Stock Market ◽  
Financial Performance ◽  
Stock Exchange ◽  
Market Development ◽  
Board Composition ◽  
Content Type ◽  
Stock Market Development ◽  
Governance Practices

Purpose The purpose of this study is to investigate the role of corporate governance practices on the post-privatization financial performance of the firms listed on the Nigerian Stock Exchange (NSE) over the period 2005-2014. Design/methodology/approach The study uses a two-step dynamic system Generalized Method of Moments (GMM) estimation technique for 27 privatized firms by considering a wide range of controlled variables such as managerial shareholdings, board composition, debt financing and stock market development. Findings The empirical result suggests that the improvement in the firms’ financial performance is attributed to good corporate governance practices through effective board composition, debt financing (leverage) and stock market development. The result further shows no substantial evidence to support that managerial shareholding improves firms’ financial performance. Research limitations/implications Therefore, based on the empirical findings of this study, the authors recommend that the firms need to maintain the optimum board composition and the ratio of debt to share capital as well as developing the stock market to function effectively. Originality/value This study contributes to the existing literature in several ways: (1) the first time that the role of corporate governance is considered in explaining the post-privatization financial performance of firms listed on the Nigerian Stock Exchange; (2) the paper applies a two-step dynamic system GMM estimation technique, proposed by Arellano and Bover (1995) and Blundell and Bond (1998) to control for the serial correlation and heterogeneity, which remain the major weaknesses of the panel data modeling in the literature.

scholarly journals Pengaruh Karakteristik Perusahaan, Kinerja Keuangan, Dan Corporate Governance Terhadap Sustainability Rreporting

2021 ◽  
Vol 1 ◽  
pp. 281-295
Author(s):  
Bakti Maulana Ikhsan ◽  
Rita Wijayanti
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Audit Committee ◽  
Sampling Method ◽  
Stock Exchange ◽  
Sustainability Reporting ◽  
Regression Method ◽  
Linear Regression Method ◽  
Performance Variables ◽  
Multiple Linear Regression Method

This study aims to analyze and examine the effect of fim’s characteristics, financial performance, and corporate governance on sustainability reporting. The research method uses a quantitative approach. The population in this study are State-Owned Enterprises (BUMN) listed on the Indonesia Stock Exchange (IDX) for the 2014-2019 period. This study uses purposive sampling method and obtained 13 state-owned companies with 78 research samples for six years of observation. The data were tested using multiple linear regression method. The results of this study indicate that the variables of firm’s characteristics proxied by leverage, and corporate governance as proxied by independent commissioners and directors have a significant effect on sustainability reporting. While the variables of firm’s characteristics which are proxied by firm size and liquidity, financial performance variables which are proxied by profitability, and corporate governance variables which are proxied by institutional share ownership, and the audit committee have no significant effect on sustainability reporting. The results of this study can be used for decision making of various parties.

scholarly journals Ownership Structure and Corporate Governance as The Affecting Factors of Liquidity Policy in Consumption Goods Industry Sector Companies in Indonesian Stock Exchange

2017 ◽  
Vol 9 (2) ◽  
pp. 91
Author(s):  
Erric Wijaya ◽  
Dita Noviany
Keyword(s):  
Corporate Governance ◽  
Ownership Structure ◽  
Consumer Goods ◽  
Stock Exchange ◽  
Linear Regression Method ◽  
Cash Holding ◽  
Affecting Factors ◽  
Board Size ◽  
Insider Ownership ◽  
Industry Sector

This study discusses the influence of ownership structure and corporate governance as affecting factors to liquidity policy in consumer goods industry sector of companies listed in Indonesia Stock Exchange. The dependent variable in this research is liquidity policy which can be proxied with cash holdings, while the independent variables in this research are: ownership structure that can be proxy by insider ownership and foreign ownership, and corporate governance which can be proxy by with variable board size and board composition, firm size and growth sales as a variable control. This research uses multiple linear regression method with panel data approach. The sample used 21 companies in manufacturing industry which classified into consumer goods sector during the period 2012-2015. The result of the research shows that the variable of ownership structure is only variable insider ownership which has influence to cash holding. While from the corporate governance variable, it is only board size that affect cash holding. The value of adjusted R squared in this study amounted to 92.6%.

scholarly journals The Impact of Corporate Governance on the Financial Distress: Evidence from Pakistani Listed Companies

2017 ◽  
Vol 5 (2) ◽  
pp. 49-53
Author(s):  
Ahmed Hassan Jamal ◽  
◽  
Syed Zulfiqar Ali Shah ◽  
Keyword(s):  
Corporate Governance ◽  
Financial Distress ◽  
Audit Committee ◽  
Positive Impact ◽  
Stock Exchange ◽  
Listed Companies ◽  
Board Composition ◽  
Explanatory Variables ◽  
Governance Practices ◽  
The Impact

This study intends to assess how corporate governance affects the financial distress in non-financial listed companies in Pakistan. Sample of 53 companies was obtained from non-financial institutes listed in Pakistani stock exchange. Regression analysis is used to estimate the impact of explanatory variables including size of board, composition of board, audit committee independence and duality of CEO on the financial distress. The findings show that size of board, composition of board and CEO duality has a positive impact on Z-score of Pakistani listed firms. This implies that better the corporate governance practices in companies, lower will be the financial distress and vice versa.

scholarly journals Corporate Governance and Return on Equity Evidence from Pakistan Stock Exchange

2020 ◽  
Vol 6 (1) ◽  
pp. 63-72
Author(s):  
Wahid Raza ◽  
Kauser Hayat ◽  
Naveed Farooq ◽  
Hazrat Bilal
Keyword(s):  
Corporate Governance ◽  
Sample Size ◽  
Audit Committee ◽  
Stock Exchange ◽  
Shareholder Wealth ◽  
Small Sample ◽  
Board Composition ◽  
Board Size ◽  
Return On Equity ◽  
Financial Firms

The main purpose of this paper is to study whether corporate governance aspects like board size, audit committee and board composition affect the return on equity (performance) of companies listed on Pakistan Stock Exchange. The data were gathered by purposive sampling techniques from the Balance Sheet Analysis report available on the State Bank of Pakistan website and relevant companies’ websites. A regression model was incorporated to measure the available data for a sample of 50 firms, with a total of 150 years of observations for a period of 2013 -2015. The empirical results indicate that board size, audit committee and board composition are positively associated to return on equity. The result of this study suggests that each organization needs to develop good corporate practices to significantly improve the shareholder wealth in the form of return on equity.  The selected sample is taken from non-financial firms with a small sample size, therefore, in future for more generalizability of the results a study may be undertaken to consider financial and non- financial firms with a large sample size.

scholarly journals The influence of corporate governance characteristics on profitability of Indian firms: An empirical investigation of firms listed on Bombay Stock Exchange

2021 ◽  
Vol 18 (1) ◽  
pp. 114-125
Author(s):  
Eissa A. Al-Homaidi ◽  
Ebrahim Mohammed Al-Matari ◽  
Mosab I. Tabash ◽  
Amgad S.D. Khaled ◽  
Nabil Ahmed M. Senan
Keyword(s):  
Corporate Governance ◽  
Significant Relationship ◽  
Audit Committee ◽  
Size Structure ◽  
Stock Exchange ◽  
Emerging Market ◽  
Board Composition ◽  
Board Size ◽  
Listed Firms ◽  
Earnings Per Share

This article aims to empirically examine corporate governance features and their association with Indian listed companies’ profitability. Thirty-three listed firms are selected from the top 100 companies in India. Corporate governance is defined by two parts: board of directors (size, structure, diligence) and audit committee (size, structure, diligence). In contrast, the profitability of Indian listed firms is calculated by two indicators: return on assets (ROA) and earnings per share (EPS). The outcomes concerning ROA reveal that board diligence, size of audit committee, audit committee composition, diligence of audit committee, and size of a company has a significant relationship with ROA. In contrast, board size and board composition have an insignificant association with ROA. Concerning earnings per share (EPS) model, the results show that size of audit committee, audit committee composition, diligence of audit committee, and firm size have a significant relationship with EPS. In contrast, board size, board composition, and board diligence have an insignificant association with EPS. The results may be of benefit to those scholarly researchers, practitioners, and governors who are interested in exploring the quality of corporate governance practices in an emerging market such as India and its effect on firms’ profitability.

Relationship between Code of Corporate Governance and Corporate Financial Performance (An Empirical Study of Food Companies Listed on KSE)

GIS Business ◽  
2017 ◽  
Vol 12 (4) ◽  
pp. 01-09
Author(s):  
Asma Rafique Chughtai ◽  
Afifa Naseer ◽  
Asma Hassan
Keyword(s):  
Corporate Governance ◽  
Stock Exchange ◽  
Securities And Exchange Commission ◽  
Executive Directors ◽  
Agency Conflicts ◽  
Cross Sectional ◽  
Return On Equity ◽  
Governance Practices ◽  
Code Of Corporate Governance ◽  
The Impact

The crucial role that implementation of Code of Corporate Governance plays on protecting the rights of minorities, shareholders, local as well as foreign investors cannot be denied. Companies all over the world are required to implement their respective Code of Corporate Governance for avoiding agency conflicts between companies management and stakeholders and for assuring transparency in accountability. This paper aims at exploring the impact of implementation of corporate governance practices (designed by Securities and Exchange Commission of Pakistan) have on the financial position of companies. For explanatory variables of the study, composition of the board as per the Code of Corporate Governance that comprises of presence of independent, executive and non-executive directors has been taken into consideration. Return on equity has been taken as an indicator of firms profitability i.e. the dependent variable. For this study, companies listed on food producing sector of Karachi Stock Exchange have been screened for excogitation of the relationship. It is an empirical research based on nine years data from 2007–2015. Using Hausman Test for selecting the data analysis technique between Fixed or Random, Fixed Cross Sectional Panel Analysis has been used for analysis of the data collected. Findings indicate that presence of independent, executive and non-executive directors as per the code requirements levies a significant impact on the profitability of companies indicated by return on equity. It is, thus concluded that companies should ensure compliance with code of governance practices to reduce not only the agency issues but also to increase their profitability.

Impact of corporate governance on financial performance of sugar sector firms listed in Pakistan stock exchange

2019 ◽  
Vol 12 (2) ◽  
Author(s):  
Muhammad Wasim Jan Khan ◽  
Usman Saeed
Keyword(s):  
Developing Countries ◽  
Corporate Governance ◽  
Financial Performance ◽  
Firm Size ◽  
Stock Exchange ◽  
Balance Sheet ◽  
Board Size ◽  
Return On Equity ◽  
Firm Financial Performance ◽  
Relationship Of

Corporate governance is considered as environment of trust, set of processes, policies and laws affecting the way corporations are administrated and directed. The previous literature in context of the corporate governance relationship with firm financial performance shows controversial findings; similarly literature shows lack of studies in context of developing countries as Pakistan. Therefore, this research explores the relationship of the corporate governance and the firm financial performance in context of developing country as Pakistan. The data has been collected from the sugar sector listed in KSE (Pakistan Stock Exchange), 20 corporations are selected as sample from sugar sector on basis of outstanding shares. Corporate governance taken as independent variable and measured as CEO biformity (CB), board size (BS), firm age (FA), firm size (FS). Financial performance of firms taken as dependent variable and measured as return on asset (ROA), return on equity (ROE), net profit margin (NPM). Data is collected for period of 2000-2013 from reports of the sugar companies listed in KSE (Pakistan Stock Exchange) issued annually and analysis of balance sheet given by State Bank of Pakistan (SBP). Result shows that CEO biformity significantly affecting firm financial performance. Board size (BS) shows partially significant impact on firm financial performance. Firms age (FA) show partially significant impact on firm financial performance. Firm size (FS) shows partially significant impact on firm financial performance. Therefore, conclusion has been drawn based on the results of analysis that this study adds new knowledge to the existing body of knowledge of corporate governance impact on firm financial performance and in context of developing countries as Pakistan. Keywords: Corporate governance, firm financial performance, sugar sector, Pakistan.

ANALISIS PENGARUH AGENCY COST TERHADAP DIVIDEND PAYOUT RATIO (Pada Perusahaan Manufaktur di Bursa Efek Indonesia Tahun 2010-2011)

2013 ◽  
Author(s):  
Raudhatul Hidayah
Keyword(s):  
Firm Size ◽  
Sampling Method ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Institutional Ownership ◽  
Agency Cost ◽  
Regression Method ◽  
Linear Regression Method ◽  
Dividend Payout ◽  
Multiple Linear Regression Method

The main purpose of the research was to know partially the influence of institutional ownership, collateralizable assets, debt to total assets and firm size on dividend payout ratio in firms that listed at Indonesia Stock Exchange of 2010–2011 period. The other purpose is to know simultaneously the influence of institutional ownership, collateralizable assets, debt to total assets and firm size on dividend payout ratio in firms that listed at Indonesia Stock Exchange of 2010–2011 period. The population of this research was all the firms that listed at Indonesia Stock Exchange of 2010-2011 period namely, 136 in number. The sample, 27 firms, was taken by the use of purposive sampling method. The technique of data collection used was documentation.  The data analysis made use of multiple linear regression method. The results showed that partially institutional ownership had a positive and significant effect to dividend policy. Collateralizable assets, debt to total assets and firm size partially was not significant to dividend policy. Simultaneously institutional ownership, collateralizable assets, debt to total assets and firm size had a positive and significant effect to dividend payout ratio.

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