scholarly journals The impact of the board process on board and corporate performance: the case of Slovakia

2020 ◽  
Vol 18 (2) ◽  
pp. 366-381
Author(s):  
Janka Grofcikova ◽  
Hussam Musa
Keyword(s):  
Corporate Governance ◽  
Slovak Republic ◽  
Limited Liability ◽  
Binary Logistic Regression ◽  
Science Research ◽  
Return On Equity ◽  
Governance Process ◽  
Grant Agency ◽  
The Impact ◽  
Board Process

Nowadays a great deal of attention is paid to corporate governance (CG). Frequent takeovers of ownership rights by management bodies led to a need for business owners to establish clear rules for business management and compliance monitoring. The aim of this paper is to examine the relationship between selected characteristics of the governance process and the ability of governing bodies to perform their core tasks, as well as to model and predict the impact of the selected characteristics of the governance process on the company’s financial performance, measured by the year-on-year change in return on equity. The respondent sample consists of members of randomly selected top management entities with their headquarters in Slovakia. A total of 132 subjects participated and answered questions in the survey, 54% of which were joint stock companies, 36% were limited liability companies and 10% were respondents from cooperatives. Data were personally collected by a questionnaire survey conducted during 2019. To verify the assumptions and success of the formulated model, correlation analysis, binary logistic regression and other relevant tests were used. The results show that each of the examined board process attributes significantly affects at least one board performance attribute. All significant correlations have a positive value. Independent variables in the ROE regression model increased the estimation rate of ROE change from 54.5% to 93.9%. The model is applicable in the CG practice and allows the prediction of changes in ROE with respect to ongoing governance processes. AcknowledgmentThis paper has been supported by the Scientific Grant Agency of Slovak Republic under the project VEGA No. 1/0749/18 “Research on the application of corporate governance principles in companies in Slovakia”. The authors would like to express their gratitude to the Scientific Grant Agency of The Ministry of Education, Science, Research and Sport of the Slovak Republic for financial support of this research and publication.

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.

scholarly journals Corporate Governance, Political Connections, and Bank Performance

2019 ◽  
Vol 7 (4) ◽  
pp. 62 ◽  
Author(s):  
Haris ◽  
Yao ◽  
Tariq ◽  
Javaid ◽  
Ain
Keyword(s):  
Corporate Governance ◽  
Profit Margin ◽  
Political Connections ◽  
Return On Assets ◽  
Board Size ◽  
Bank Profitability ◽  
Return On Equity ◽  
Net Interest Margin ◽  
The Impact ◽  
Interest Margin

This study investigates the impact of corporate governance characteristics and political connections of directors on the profitability of banks in Pakistan. The study uses the data of 26 domestic banks over the latest and large period of 2007–2016. Our findings firstly affirm that bank profitability is negatively affected by the presence of politically connected directors on the board, reporting significantly lower return on assets, return on equity, net interest margin, and profit margin. Secondly, our findings also affirm the negative political influence on the sustainability of the banking industry, reporting significantly lower return on assets, return on equity, net interest margin, and profit margin during the government transition of banks having politically connected directors sitting on their board. Our findings further report an inverted U-shaped relationship between board size and bank profitability, suggesting that a board size beyond 8–9 members decreases the profitability. The study further finds a positive impact of board composition, board independence, and director compensation on bank profitability, while also finding a negative impact of frequent board meetings, presence of foreign directors, and audit committee independence.

scholarly journals Impact of Corporate Governance on Financial Performance: Karachi Stock Exchange, Pakistan

2016 ◽  
Vol 6 (2) ◽  
pp. 401 ◽  
Author(s):  
Aon Waqas Awan ◽  
Javed Ahmed Jamali
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Audit Committee ◽  
Stock Exchange ◽  
Profit Margin ◽  
Audit Committees ◽  
Board Size ◽  
Good Decision ◽  
Return On Equity ◽  
The Impact

The aim of the research is to understand the impact of corporate governance on financial performance of listed companies on Karachi Stock Exchange Pakistan. Data was collected from forty two companies from different sectors like, insurance, banking, investment banking, and sugar industries. Study includes variables like profit margin & return on equity as a dependent (profitability) and board size, audit committee, annual general meetings & chief executive office (corporate governance). Using Pooled OLS, the result of the study proved those board size and audit committees have positive relationship with Profit margin and Return on Equity, if any independent variable changes it also stimulus the positively changing impact on Return on Equity (ROE) and Audit Committee (AC). This research offers imminent guidelines to the policy and decision makers in any type of firms to take good decision to set their firms hierarchy system.

scholarly journals The Impact of Corporate Governance on Profitability of Conventional Banks Operating in Pakistan

2020 ◽  
Vol 1 (4) ◽  
pp. 260-267
Author(s):  
Hafiz Muhammad Naveed ◽  
Shoaib Ali ◽  
Yao Hongxing ◽  
Saqib Altaf ◽  
Jan Muhammad Sohu
Keyword(s):  
Corporate Governance ◽  
Commercial Banks ◽  
Banking Sector ◽  
Board Independence ◽  
Return On Assets ◽  
Board Size ◽  
Return On Equity ◽  
Board Directors ◽  
Conventional Banks ◽  
The Impact

The key purpose of present research study to examine the association among corporate governance and profitability banks in developing counties. For such primary objective, annually based data collected from 2004 to 2016. The data taken from annual financial reports which issued by conventional banks.  We have used ADF (Augmented Dickey Fuller) test to examine the unit-root of variables. Moreover, the multiple linear regression utilized for hypothetical estimation. The results indicates that corporate governance and conventional banks profitability of Pakistan are bidirectional (positive-negative) associated to each other. In addition, the board size (Board Directors) is negatively associated with Return on assets and return on equity of banks. Similarly, the board independence (Insider-Outsider Board Directors) is positively influenced to return on assets and return on equity of conventional banks of Pakistan. The overall findings shows that board size and board independence are highly associated with return on equity than return on assets. Moreover, banking sector in developing countries the board size should contain on appropriate strength and acquire more professional and qualified staff. An optimal number of directors in a board size there is a need of commercial banks as to increase the profitability. To enhance the investors’ confidence with the bank there is also a need of the commercial banks to increases the board independency.

Gesetzliche Mitbestimmung und Kapitalrendite Co-Determination and Return on Equity / Co-Determination and Return on Equity

2006 ◽  
Vol 226 (5) ◽  
Author(s):  
Kornelius Kraft ◽  
Marija Ugarkovič
Keyword(s):  
Panel Data ◽  
Capital Market ◽  
Negative Impact ◽  
Supervisory Board ◽  
Limited Liability ◽  
Voting Rights ◽  
Positive Influence ◽  
Return On Equity ◽  
German System ◽  
The Impact

SummaryMany observers regard the German system of codetermination as a very strong intervention into the working of the capital market. With the introduction of the codetermination law in 1976, employee representatives in limited liability companies with more than 2000 employees are entitled to occupy half of the number of seats and are granted nearly 50% of the voting rights on the supervisory board. We investigate the impact of the introduction of the German codetermination law in 1976 which implied an extension of co-determination from third parity to almost parity on return on equity. Our estimations are based on panel data for 179 companies from 1971 to 1976 and from 1981 to 1986, thus allowing for adjustment to the 1976 law. In contrast to frequently raised fears, no negative impact is found. Our empirical results suggest a positive influence from the 1976 strengthening of co-determination law on return on equity.

scholarly journals Research of building structures in extreme climate conditions

2019 ◽  
Vol 14 (2) ◽  
pp. 127-136
Author(s):  
Dušan Katunský ◽  
Lenka Kabošová ◽  
Erika Dolníková ◽  
Marek Zozulák
Keyword(s):  
Slovak Republic ◽  
Science Research ◽  
Building Structures ◽  
Ministry Of Education ◽  
Climate Conditions ◽  
Grant Agency ◽  
Project Objectives ◽  
Academy Of Sciences ◽  
Education Science ◽  
Vega 1

AbstractThe paper provides information on the solution of project supported by the Scientific Grant Agency of VEGA of the Ministry of Education, Science, Research and Sports of Slovak Republic and of the Slovak Academy of Sciences of Slovak Republic. There is project: VEGA 1/0674/18. This research project is programmed for the years 2018 to 2021. In this paper are presented information on the results obtained in 2019, solution of this project objectives and project solution. The results are presented in realized publications. We focused mainly on the presentation of major publications, articles in domestic and foreign journals, articles in conference proceedings with an emphasis on publications that are indexed in the WOS and SCOPUS databases.

scholarly journals The financial impacts of board mechanisms on performance: The case of listed Moroccan banks

2021 ◽  
Vol 3 (2) ◽  
pp. 93-113
Author(s):  
Issam El Idrissi ◽  
◽  
Youssef Alami ◽  
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Fixed Effects ◽  
Audit Committee ◽  
Negative Impact ◽  
Governance Mechanisms ◽  
Return On Equity ◽  
Corporate Governance Mechanisms ◽  
Governance Practices ◽  
The Impact

Abstract Purpose: The present study examines the impact of corporate governance mechanisms on listed Moroccan banks' financial performance. Research methodology: This study investigates the relationship between listed banks' governance mechanisms and financial performance in the CSE for six years between 2014-2019. This study employs three performance measures, return on assets, return on equity, and Tobin's Q, to determine bank performance. This research uses the GMM EGLS approach to analyze data. In the first phase of this empirical research, we did use OLS, Fixed Effects, and Radom Effects regressions to show their inefficiency. Results: Our results portray that most board mechanisms have a negative impact on financial performance. In comparison, the audit committee and nomination & remuneration committee have a positive effect on financial performance. Limitations: Many qualitative and quantitative factors could influence financial performance and not only the used variables in this paper. Contribution: This research shows that the dynamic connection between corporate governance and financial performance is robust in the Moroccan banking context. Also, our study has important implications for establishing good corporate governance practices in emerging economies.

scholarly journals IMPACT OF SELECTED DETERMINANTS OF CORPORATE GOVERNANCE ON FINANCIAL PERFORMANCE OF COMPANIES

2020 ◽  
Vol 14 (2) ◽  
pp. 12-23
Author(s):  
Janka Grofcikova
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Performance Indicators ◽  
Stock Exchange ◽  
Insurance Companies ◽  
Return On Assets ◽  
Return On Equity ◽  
Return On Sales ◽  
The Impact

The role of corporate governance (CG) is to ensure functioning of companies in accordance with their formulated objectives to ensure growth of corporate assets and satisfaction of the owners. In addition to management of the company, there are other stakeholders whose interests need to be considered in meeting the owners' objectives. These include creditors, employees, clients, and the wider context of the business. The aim of this paper is to explore and compare the impact of selected financial and non-financial determinants representing the interests of these groups on corporate financial performance. The influence of determinants of CG on financial performance, measured by return on assets (ROA), return on equity (ROE) and return on sales (ROS) indicators, is investigated by means of correlation analysis. The sample of enterprises used consists of non-financial joint-stock companies listed on the Bratislava Stock Exchange, insurance companies, and banks based in Slovakia. The findings show that each of the investigated determinants of CG affects financial performance of companies. ROA, ROE and ROS of share issuers are significantly influenced by the total equity (EQ), average remuneration (AR) and number of the Board of Supervisor members (BSM). With banks, performance indicators are only influenced by total personal costs (PC). ROA, ROE and ROS of all companies are influenced by the dividend ratio (DR), EQ, AR and BSM.

scholarly journals Impact of Corporate Governance on Financial Performance of Information Technology Companies

2019 ◽  
Vol 8 (3) ◽  
pp. 7460-7464
Keyword(s):  
Information Technology ◽  
Corporate Governance ◽  
Financial Performance ◽  
Audit Committee ◽  
Positive Impact ◽  
Return On Assets ◽  
Return On Equity ◽  
Broad Term ◽  
The Impact ◽  
Information Technology Companies

Corporate Governance is a broad term in today’s competitive world. It is a series of processes, policies, rules, and regulations by which companies are managed and governed. In this perspective, the study attempts to analyze the impact of corporate governance on the financial performance of Information Technology (IT) Companies in India. Specifically, the study analyzed the impact of Board size, Board Composition, and Audit Committee Independence on Return on Assets and Return on Equity, which are considered as measures of financial performance. The findings of the study revealed that there is a significant and positive impact of Corporate Governance on Financial performance of IT companies, and Audit Committee Independence shows the most significant effect on Financial performance. The finding of the study endeavors to contribute to the limited literature available in the context of corporate governance in IT companies in India.

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