scholarly journals An exploration of boards of directors’ quality: The development of an index for directors attributes and the relation with firm value and performance

2011 ◽  
Vol 7 (2) ◽  
pp. 51-63
Author(s):  
Jose Elias Feres de Almeida
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Firm Value ◽  
Boards Of Directors ◽  
Poor Quality ◽  
Corporate Governance Mechanisms ◽  
Corporate Governance Codes ◽  
And Performance ◽  
High Level

In an environment with poor quality of Corporate Governance Mechanisms, the quality of directors’ attributes might exert an important role to improve firm’s value and performance. I developed an index to explore the quality of Board of Directors based on Brazilian and international corporate governance codes to measure directors qualitative attributes. The sample consist in 24 Brazilian firms that traded at NYSE in the period over 1999-2006. The results show us that board of directors with high types of attributes can improve value measured individually and by the quality index. The main results indicate that firm value improved with high types of professionals, accountants seated in boards, directors with high level of education and that participated in executive training. Keywords: Board of Directors’ Quality, Corporate Governance, Firm Value, Directors Qual

scholarly journals A Thematic Review on Composition of Board of Directors (BOD) and Its Impact on Performance

NCC Journal ◽  
2018 ◽  
Vol 3 (1) ◽  
pp. 65-70
Author(s):  
Dipti Dhungel
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Board Of Directors ◽  
Boards Of Directors ◽  
Corporate Boards ◽  
Corporate Governance Mechanisms ◽  
Thematic Review ◽  
And Performance ◽  
Main Component ◽  
The Relationship

This thematic paper has been prepared to find out how the composition of Board of Directors makes impact on performance of firms. To find this impact, the articles published in international journals have been reviewed. In addition to this detailed study of the legislator, the provision regarding composition of BOD in Nepal was made as stated in BAFIA and Company Act. The Board of Directorsis the elected members among the shareholders who could best represent the interest of each and every member. Corporate boards are one of the, if not the most important, internal corporate governance mechanisms that monitor and advise management in fulfilling the mandate to protect shareholder interests.There is still much debate as to the relationship between firm performance and boards of directors, which are arguably the main component of corporate governance.The thematic review concludes that the relationship between BOD and performance was not found on the basis of existing literature reviewed. Thus, the study opened the ground for the researcher to test this empirically.NCC JournalVol. 3, No. 1, 2018, Page: 65-70

scholarly journals Mechanisms of corporate governance and performance: analysis of public companies listed in BM&FBovespa

2017 ◽  
Vol 16 (3) ◽  
pp. 1161-1184
Author(s):  
Josimar Pires Da Silva ◽  
Mariana Pereira Bonfim ◽  
Rafael Martins Noriller ◽  
Carlos Vicente Berner
Keyword(s):  
Corporate Governance ◽  
Performance Analysis ◽  
Financial Statements ◽  
Public Companies ◽  
The Public ◽  
Corporate Governance Mechanisms ◽  
The Government ◽  
And Performance ◽  
Future Reference

AbstractThe objective of this research is to verify the level of relationship between the mechanisms of corporate governance and the performance of the companies of the public subsector, listed on BM&FBovespa. The research was based on the financial statements from 2010 to 2014, obtained on the BM&FBovespa website, resulting in a sample of 63 companies with 315 observations. In order to calculate the performance proxy of the company, the ROA was used, and for the calculation of the proxies of the corporate governance mechanisms were used for the quality of the audit, the concentration of ownership in common shares and preferred shares, participation in the levels of governance of BM&FBovespa, number of shares held by the government and number of directors in the Board, adapted from the Mollah and Zaman (2015) survey. Convergence with national and international research, the findings of the study showed that such variables as quality of profit, concentration of ownership in preferred shares, participation in governance levels and size of the Board are positively related to the performance of the company; already a concentration of ownership in common shares and number of shares held by the government are negatively related to performance. For future reference, it is recommended to expand other sectors of the market as well as to use other mechanisms of corporate governance, presented in the literature.Keywords: Corporate Governance. Performance. Public Subsector.Mecanismos de governança corporativa e desempenho: análise das companhias do subsetor de utilidade pública listadas na BM&FBovespa Resumo O objetivo da pesquisa foi o de verificar o nível de relação entre os mecanismos de governança corporativa e o desempenho das empresas do subsetor de utilidade pública, listadas na BM&FBovespa. A pesquisa teve como base os dados das demonstrações financeiras de 2010 a 2014, obtidas no sítio eletrônico da BM&FBovespa, resultando assim, em uma amostra de 63 empresas, com 315 observações. Para o cálculo da proxy de desempenho da empresa foi utilizado o ROA, e para o cálculo das proxies dos mecanismos de governança corporativa foram utilizadas a qualidade da auditoria, concentração de propriedade em ações ordinárias e em ações preferenciais, participação nos níveis de governança da BM&FBovespa, número de ações mantidas pelo governo e número de diretores no Conselho, adaptado da pesquisa de Mollah e Zaman (2015). Convergente com pesquisas nacionais e internacionais, os achados desse estudo evidenciaram que as variáveis qualidade do lucro, concentração de propriedade em ações preferenciais, participação nos níveis de governança e tamanho do Conselho são positivamente relacionados com o desempenho da empresa; já a concentração de propriedade em ações ordinárias e o número de ações mantidas pelo governo são negativamente relacionadas com o desempenho. Para pesquisas futuras, recomenda-se ampliar a outros setores do mercado bem como utilizar outros mecanismos de governança corporativa, presentes na literatura.Palavras-chave: Governança Corporativa. Desempenho. Utilidade Pública.

scholarly journals A comparative analysis of the board evaluation in European entities: Italy vs UK

2016 ◽  
Vol 14 (1) ◽  
pp. 578-587
Author(s):  
Donatella Busso ◽  
Alain Devalle ◽  
Fabio Rizzato
Keyword(s):  
Corporate Governance ◽  
Comparative Analysis ◽  
Board Of Directors ◽  
Boards Of Directors ◽  
Size Composition ◽  
The Self ◽  
Self Assessment ◽  
Corporate Governance Codes ◽  
The Board Of Directors ◽  
The Uk

Board evaluation is an evaluation of the performance of the board of directors and its committees, as well as their size, composition and operation. The aim of this paper is to investigate how entities do the evaluation of the performance of the board and how they disclose the self-assessment. We analysed the largest forty constituents of both Italy’s FTSE MIB index and the UK’s FTSE 100 index. The results show that although Corporate Governance Codes’ requirements are similar, implementation of these requirements and the related disclosure continue to show significant differences. The UK companies seem to have a stronger “forward-looking” approach compared to Italian companies. Disclosure provided by Italian companies is too often not enough to enable stakeholder understanding of the process and its outcome. This research contributes to the literature by providing results on the evaluation of boards of directors: regulators, practitioners and researchers must deal with this topic in order to strengthen the rules of corporate governance.

scholarly journals Quality of governance and the construction of governance indices: evidence from Spain

2007 ◽  
Vol 5 (1) ◽  
pp. 355-371
Author(s):  
Eloisa Pérez de Toledo ◽  
Evandro Bocatto
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Investor Protection ◽  
Extensive Literature ◽  
Firm Level ◽  
Public Companies ◽  
Corporate Governance Mechanisms ◽  
And Performance ◽  
Future Growth

Corporate governance is a set of mechanisms relevant to economic efficiency since it can minimize agency problems. The question is to determine how governance and firm performance interact. Recent research shows that firm-level corporate governance mechanisms are more important in countries with low investor protection, suggesting that firms can partially compensate for ineffective legal environments. Within this context, the objective of this paper is to construct a robust proxy for quality of corporate governance for the Spanish public companies. Thus, after providing an extensive literature review on the field of corporate governance and its interaction with firm performance, we construct a governance index (GOV-I) for a sample of 97 Spanish non-financial public companies. Finally, we assess the determinants of governance in the case of Spain. The results show a significant relationship between governance and performance, future growth opportunities and size, demonstrating that Spanish firms adopt better standards of governance to compensate for the low level of investor protection holding in the country.

Corporate Investment and Hotel Firm Value: Does Corporate Governance Matter in Financially Constrained Firms?

2018 ◽  
Vol 59 (4) ◽  
pp. 339-351
Author(s):  
Tarik Dogru
Keyword(s):  
Corporate Governance ◽  
Corporate Finance ◽  
Firm Value ◽  
Financial Constraints ◽  
Financial Constraint ◽  
Corporate Investments ◽  
Corporate Governance Mechanisms ◽  
The Relationship ◽  
Practical Implications

Corporate investments are expected to create value for firms. Although some studies report evidence supporting such expectations, many studies document contradictory findings. However, it is not clear why corporate investments create value in some firms but reduce value in others. The purpose of this study is to examine the extent to which the quality of corporate governance and the degrees of financial constraints affect the relationship between corporate investments and hotel firm value in a unified model where both weak corporate governance and financial constraint problems are concurrently observed. Shareholders of poorly governed firms place a lower value on corporate investments compared with those of well-governed firms, whereas shareholders of financially constrained firms perceive corporate investments to be of greater value compared with those of unconstrained firms. The results further showed that CEOs of financially constrained firms make value-increasing investments despite poor corporate governance mechanisms. Theoretical and practical implications are discussed within the realm of corporate finance theories.

scholarly journals Agency costs, corporate governance mechanisms and performance of public listed family firms in Malaysia

2011 ◽  
Vol 42 (3) ◽  
pp. 17-26 ◽  
Author(s):  
H. Ibrahim ◽  
F. A. Samad
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Firm Value ◽  
Agency Costs ◽  
Family Firms ◽  
Family Ownership ◽  
Governance Mechanisms ◽  
Corporate Governance Mechanisms ◽  
Utilization Ratio ◽  
And Performance

We compare corporate governance and performance between family and non-family ownership of public listed companies in Malaysia from 1999 through 2005 measured by Tobin’s Q and ROA. We also examine the governance mechanisms as a tool in monitoring agency costs based on asset utilization ratio and expense ratio as proxy for agency costs. We find that on average firm value is lower in family firms than non-family firms, while board size, independent director and duality have a significant impact on firm performance in family firms as compared to non-family firms. We also find that these governance mechanisms have significant impact on agency costs for both family and non-family firms.

scholarly journals Diversity in the board of directors and good governance practices

2020 ◽  
Vol 9 (2) ◽  
pp. 97
Author(s):  
Álvaro Melón-Izco ◽  
Francisco J. Ruiz-Cabestre ◽  
M. Carmen Ruiz-Olalla
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Boards Of Directors ◽  
Good Governance ◽  
Gender Diversity ◽  
Positive Influence ◽  
Board Diversity ◽  
Corporate Governance Mechanisms ◽  
Governance Practices ◽  
The Board Of Directors

Motivated by the debate on the adequacy of the composition of boards of directors, we examine the effect that board diversity has on corporate governance performance in Spain, analysing gender diversity, diversity of director types and tenure diversity. The findings reveal that diverse boards of directors have a positive influence on good governance practices,improving the efficiency of corporate governance mechanisms. These results could be interesting for practitioners and regulators.

scholarly journals A suggested measure for the quality of corporate governance in Egypt

2017 ◽  
Vol 15 (1) ◽  
pp. 52-64 ◽  
Author(s):  
Dina Hassouna ◽  
Hassan Ouda
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Ownership Structure ◽  
Listed Companies ◽  
Measurement Tool ◽  
Board Committees ◽  
Corporate Governance Mechanisms ◽  
Governance Practices ◽  
Transparency And Disclosure

This paper aims at constructing an objective measurement tool for the quality of corporate governance practices implemented by listed companies in Egypt. Consequently, several main criteria for the inclusion and the exclusion of a corporate governance guideline were followed. The resulting “objective index and questionnaire” includes a total of 66 indicators grouped under four main internal corporate governance mechanisms: Ownership structure; Board of directors; Transparency and disclosure and Board committees. Additionally, the scoring process that can be used in the rankings of Egyptian listed companies is suggested

The Politics of Management: the Corporate Governance Issue

1986 ◽  
Vol 21 (3) ◽  
pp. 286-299
Author(s):  
Arthur Knight
Keyword(s):  
Corporate Governance ◽  
Boards Of Directors ◽  
Business Performance ◽  
Executive Directors ◽  
Class Division ◽  
Wide Range ◽  
And Performance ◽  
The Uk ◽  
And Training

THE TERM CORPORATE GOVERNANCE HAS COME INTO USE TO describe both the purposes and the methods which determine the structure and the control of companies. A wide range of legal, regulatory and less formalized arrangements is thus embraced. In the UK in recent years discussion has related to a number of interrelated issues: the structure and functioning of boards of directors, reporting to shareholders and the ways in which shareholders use their power. These issues have a bearing upon business performance, though the debate about ways to improve the quality of management embraces also the cultural factors, the educational system and training arrangements; and performance depends too upon factors wholly or largely beyond the influence of managers, such as the tensions from class-division, over-powerful unions and the uncertainties which flow from discontinuities in public policy which are especially evident in the British political system. But in the general debate the corporate governance issues have perhaps had less attention than they deserve; the discussion has been confined to a limited circle. It is proposed here to concentrate on non-executive directors.

Board of Directors Leadership and Structure: Control and Performance Implications

1993 ◽  
Vol 17 (3) ◽  
pp. 65-81 ◽  
Author(s):  
Catherine M. Daily ◽  
Dan R. Dalton
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Board Of Directors ◽  
Boards Of Directors ◽  
Large Scale ◽  
Governance Structures ◽  
Structure Control ◽  
And Performance

Research examining the association of corporate governance structures and firm performance has relied almost exclusively on the large-scale firm. This may, however, be a limited forum for questions of this sort. Officers and boards of directors for the large-scale firm may lack the discretion—or the wherewithal—to effect changes In policy or outcomes. It Is In the smaller firm that such performance/governance linkages may be more easily observed. This study, then, focuses on a number of corporate governance structures and their relationships to firm performance for the smaller corporation. Ironically, the very organizations that the literature suggests might benefit most from independent governance structures are those that rely on them least.

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