scholarly journals Non-compliance with Australian stock exchange recommendations on board independence

2011 ◽  
Vol 7 (3) ◽  
pp. 21-37
Author(s):  
Patricia O’Keefe
Keyword(s):  
Corporate Governance ◽  
Agency Theory ◽  
Stock Exchange ◽  
Ownership Concentration ◽  
Board Independence ◽  
Managerial Ownership ◽  
Board Structure ◽  
Mitigating Factors

An agency theory perspective is adopted to explain the high levels of non-compliance with recommendations concerning board structure of the Australian Stock Exchange’s (ASX) Corporate Governance Principles and Recommendations. The study compares groups of compliers and non-compliers drawn from members of the ASX All Ordinaries Index. The results indicate that, in the presence of mitigating factors such as less complexity, higher levels of managerial ownership of equity and higher ownership concentration, entities are less likely to comply with the recommendations on board independence. The results suggest that the compliance decision might be influenced by mitigating factors that reduce the need for board independence.

scholarly journals The two-tier board system and underpricing of initial public offerings: Evidence from Austria

2014 ◽  
Vol 12 (1) ◽  
pp. 352-362
Author(s):  
Lalith P. Samarakoon ◽  
Palani-Rajan Kadapakkam
Keyword(s):  
Corporate Governance ◽  
Agency Theory ◽  
Initial Public Offerings ◽  
Stock Exchange ◽  
Supervisory Board ◽  
Board Structure ◽  
Ipo Underpricing ◽  
Public Offerings ◽  
Management Board ◽  
Board System

We study the relation between initial IPO underpricing and two-tier board structure in the Vienna Stock Exchange of Austria, where a two-tier board is mandatory for listed companies. The board ratio, defined as the size of the supervisory board to the management board, is used to capture the effect of two-tiered board on underpricing. The results show that the board ratio is negatively related with underpricing, consistent with the agency theory which predicts that more effective monitoring implied in a relatively larger supervisory board will lead to lower agency costs, and thus lower underpricing. The results are robust to the inclusion of control variables and suggest that firms seeking to raise external capital will be helped by adopting strong corporate governance standards.

scholarly journals The impact of corporate governance on firm performance in Egyptian listed companies

2013 ◽  
Vol 11 (1) ◽  
pp. 691-705 ◽  
Author(s):  
Ehab K. A. Mohamed ◽  
Mohamed A. Basuony ◽  
Ahmed A. Badawi
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Ownership Structure ◽  
Stock Exchange ◽  
Listed Companies ◽  
Board Independence ◽  
Board Structure ◽  
Cross Sectional ◽  
Book Value ◽  
The Impact

This paper examines the impact of corporate governance on firm performance using cross sectional data from non-financial companies listed in the Egyptian Stock Exchange. The 88 non-financial companies on EGX100 index of listed companies on the Egyptian Stock Market are studied to examine the relationship between ownership structure, board structure, audit function, control variables and firm performance by using OLS regression analysis. The results show that ownership structure has no significant effect on firm performance. The only board structure variable that has an effect on firm market performance is board independence. Firm book value performance is affected by both board independence and CEO duality. Firm size and leverage have varying effects on both market and book value performance of firms

scholarly journals PENGARUH CORPORATE GOVERNANCE TERHADAP KINERJA PERUSAHAAN KIMIA DAN FARMASI DI INDONESIA

2009 ◽  
Vol 2 (2) ◽  
pp. 91
Author(s):  
Henny Setyo Lestari ◽  
Dhetoriana Permatasari
Keyword(s):  
Corporate Governance ◽  
Data Analysis ◽  
Firm Performance ◽  
Multiple Regression ◽  
Stock Exchange ◽  
Ownership Concentration ◽  
Board Independence ◽  
Board Size

<p>This research is aimed to determine the influence of corporate governance on firm pe ormance. The sample used were 16 companies, which is divided into 8 companies in hemical sector and 8 companies in pharmaceutical, that are listed in Indonesia Stock Exchange during the period of 2004 to 2008, which were selected using purposive sa pling method. Corporate governance in this research was measured with board size , board independence, and ownership concentration While firm performance was To sured by ROA and ROE. Menthods of data analysis were using multiple regression<br />facility. Based on the results of this research showed that there was no significant .1<br />influence between corporate governance (board size, board independence, and<br />ownership concentration) on firm performance (ROA and ROE).<br />Keywords : Corporate Governance and firm performance</p>

scholarly journals Company characteristics and compliance with ASX corporate governance principles

2015 ◽  
Vol 27 (3) ◽  
pp. 373-392 ◽  
Author(s):  
Tek Lama ◽  
Warwick Wyndham Anderson
Keyword(s):  
Corporate Governance ◽  
Best Practice ◽  
Stock Exchange ◽  
Listed Companies ◽  
Ownership Concentration ◽  
Board Structure ◽  
Content Type ◽  
Cross Listing ◽  
Price Earnings Ratio ◽  
Better Than

Purpose – This study aims to examine whether company characteristics determine the structure and composition of a company’s board. In particular, it investigates the three board-design choices that Australian-listed companies make in the context of Australian Stock Exchange (ASX) corporate governance principles (published in 2003) where they are allowed to depart from the recommended best-practice board structure if the departure better serves their unique board and governance requirements. Design/methodology/approach – A logistic regression is performed on a cross-section of data for 258 ASX-listed companies averaged over the years 2004 to 2007, using the company variables size, age, leverage, ownership concentration, profitability, liquidity, price-earnings ratio, market-to-book ratio and cross-listing. Findings – The study finds that size has a strong, statistically significant impact on all three principles. Ownership concentration, price-earnings ratio and age have statistically significant impacts on the likelihood of compliance with at least one principle but have no consistent influence over all. This finding supports the underlying philosophy of the ASX corporate governance principles that flexible guidelines serve companies better than inflexible rules. Originality/value – This study breaks new ground in empirically investigating the effect of company variables on compliance with the ASX’s Principles of 2003, which are new for Australia in requiring an “if not, why not” response from companies.

scholarly journals Audit Report Lag: Specialized Auditor and Corporate Governance

2020 ◽  
Vol 8 (1) ◽  
pp. 41-48
Author(s):  
Arya Pradipta ◽  
Arvivid Gracenia Zalukhu
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Stock Exchange ◽  
Financial Statements ◽  
Jel Classification ◽  
Ownership Concentration ◽  
Board Independence ◽  
Manufacturing Companies ◽  
Audit Report ◽  
Auditor Quality

Objective - This paper aims to obtain empirical evidence about the influence of specialized auditors, audit tenure, audit committee, board independence, ownership concentration, and auditor quality on audit report lag in Indonesian manufacturing firms. Methodology/Technique – The population is all manufacturing companies listed on the Indonesia Stock Exchange between 2010 and 2016. Multiple linear regressions was used as the data analysis method. Finding - The results of this research show that specialized auditors, board independence, ownership concentration and auditor quality all have an influence on audit report lag. Meanwhile, audit tenure and audit committee do not have an influence on audit report lag. Novelty - Specialized auditors will provide better performance than non-specialized auditors. Specialized auditors will apply more appropriate planning and monitoring on the audit procedure. Specialized auditors need longer time to audit financial statements, which effects audit report lag. The presence of an independent board requires higher quality financial statements. Thus, the auditor needs to put more effort into the verification process of financial statements. The largest shareholders tend to be committed and responsible to the company’s reputation. Managers will demand the audit report lag in a timely manner, in order to maintain the trust and satisfaction of the company’s largest shareholders. Type of Paper: Empirical. Keywords: Audit Report Lag; Specialized Auditor; Board Independence; Ownership Concentration; Auditor Quality. Reference to this paper should be made as follows: Pradipta, A; Zalukhu, A.G. 2020. Audit Report Lag: Specialized Auditor and Corporate Governance, Global J. Bus. Soc. Sci. Review 8(1): 41 – 48. https://doi.org/10.35609/gjbssr.2020.8.1(5) JEL Classification: G30, M42.

scholarly journals Corporate Governance, Family Ownership and Firm Value: Indonesia Evidence

2020 ◽  
Vol 76 ◽  
pp. 01027
Author(s):  
Mariana Ing Malelak ◽  
Christina Soehono ◽  
Christine Eunike
Keyword(s):  
Corporate Governance ◽  
Significant Influence ◽  
Ownership Structure ◽  
Firm Value ◽  
Stock Exchange ◽  
Panel Data Analysis ◽  
Family Ownership ◽  
Managerial Ownership ◽  
Board Structure ◽  
Financial Firms

The research objective to assess the influence of corporate governance and family ownership on firm value non-financial firms listed in Indonesia. The board and ownership structure were representing corporate governance characteristics. The board structure consists of commissioners, directors and independent commissioners, while the structure of ownership consists of institutional, public and managerial ownership. This research used data non-financial firms listed in Indonesia Stock Exchange period 2008 to 2018. Using purposive sampling as technique’s to filter the samples and panel data analysis method. The results of research state that corporate governance (board and ownership structure) and family ownership simultaneously have a significant influence on firm value. Partially, independent commissioners, board of directors, public and institutional ownership have a significant influence on firm value. Meanwhile the board of commissioners, managerial and family ownership have no significant influence on firm value.

scholarly journals The Impact of Board Independence, Gender Diversity and Nationality Diversity on Firm Performance

2021 ◽  
Vol 16 (1) ◽  
pp. 323-346
Author(s):  
Aftab Mohd Idris ◽  
◽  
Ousama A. A. ◽  
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Financial Market ◽  
Stock Exchange ◽  
Gender Diversity ◽  
Listed Companies ◽  
Board Independence ◽  
Board Structure ◽  
The Impact ◽  
Nationality Diversity

This study aimed to examine the relationship between board structure and firm performance measured by return on equity (ROE) and return on asset (ROA). 42 firms listed on the Qatar Stock Exchange (QSE) in 2018 were examined, using regression analysis. The study found that gender diversity (i.e., female directors on the board) had a positive significant relationship with firm performance in both measures, i.e., ROE and ROA. In addition, only board meeting and non-executive directors had significant relationships with firm performance measured by ROA. The findings of the study have some practical implications for some stakeholders, such as listed companies in Qatar and the Qatar Financial Market Authority. The Qatari listed companies will be able to understand the impact of board structure and the complementary benefits that may affect firm performance and thus strengthen the function of their boards. The Qatar Financial Market Authority will be able to understand the current practices of the corporate governance (CG) code; its strengths and weakness. Hence, it will be able to improve the code in order to overcome the weaknesses and strengthen good practices. Keywords: corporate governance, board independence, gender diversity, nationality diversity, firm performance

scholarly journals Corporate Governance, Cash holdings and Value of a Firm: Evidence from Australian Firms

2012 ◽  
Vol 4 (12) ◽  
pp. 606-614 ◽  
Author(s):  
Subba Reddy Yarram
Keyword(s):  
Corporate Governance ◽  
Financial Reporting ◽  
Significant Influence ◽  
Stock Exchange ◽  
Cash Holdings ◽  
Board Independence ◽  
Board Structure ◽  
Average Return ◽  
Actual Return ◽  
Corporate Cash Holdings

The present study analyses influence of board structure and cash holdings on the value of Australian firms for the period 2004 to 2010. Australian Stock Exchange (ASX) adopted the Principles of Good Corporate Governance Guidelines in 2003 and Australian firms have started adopting these principles starting 2004. Similarly the reporting framework of Australian firms is harmonized with the rest of the world with adoption of Australian International Financial Reporting Standards (AIFRS) starting in 2004. Corporate cash holdings despite their significance have not been considered extensively in prior literature outside the US. Cash holdings may have significant influence on the value of the firm as too much excess cash may lead to misuse of these funds by entrenched managers. Corporate governance has a role to play in maintaining appropriate cash holdings and their use. The present has two objectives: it considers the influence of corporate cash holdings on the value of Australian firms; and it examines the role of board structure on the relationship between cash holdings and value of the firm. The present study considers all non-financial firms that are part of the All Ordinaries Index (AOI). The present study constructs Fama French 25 portfolio and estimate the excess return as the difference between actual return and the average return of the relevant FF portfolio. OLS analyses show that board independence has no significant impact on the value of the firm though cash holdings have significant influence. Analysing using panel data methods however unearth the significant influence of board independence on the value of Australian firms.

scholarly journals Corporate Governance Factors Drive Firms’ Earning Per Share: Evidence from Pakistan Stock Exchange Listed Companies

2021 ◽  
Vol 2 (2) ◽  
pp. 123-132
Author(s):  
YASIR KHAN ◽  
MUHAMMAD AMJAD ◽  
DR.SAIMA BATOOL ◽  
OBAID ULLAH BASHIR
Keyword(s):  
Corporate Governance ◽  
Stock Exchange ◽  
Ownership Concentration ◽  
Board Independence ◽  
Regression Result ◽  
Board Diversity ◽  
Ceo Duality ◽  
Independent Variables ◽  
Firm Financial Performance ◽  
The Impact

The aim of this study is to examine the corporate governance factors that drive the firms’ earning per share (EPS) sample of firms listed on Pakistan Stock Exchange (PSX) over the period of 2011 to 2016. This paper analyzed the impact and relationship of dependent variable (Earning per Share) and independent variables (Board Independence, Ownership concentration, CEO duality and Board diversity). The panel data collected from the sample of top 20 companies (market capitalizations) listed in Pakistan stock exchange. To investigate the relationship between variables the Pearson correlation and regression applied and to identify the impact of independent variables (board independence, ownership concentration, CEO duality and Board diversity) on dependent variable (earning per share) used regression tool. The study result of correlations and regression result revealed that board independence, ownership concentration and Board diversity have significant impact on performance while CEO Duality has negative impact on Firm financial performance.

PENGARUH KONSERVATISMA AKUNTANSI TERHADAP EARNINGS RESPONSE COEFFICIENT (ERC) DENGAN CORPORATE GOVERNANCE SEBAGAI VARIABEL PEMODERASI

2008 ◽  
Author(s):  
Olliza Mayesti ◽  
Resti Yulistia Muslim
Keyword(s):  
Corporate Governance ◽  
Stock Exchange ◽  
Negative Influence ◽  
Accounting Conservatism ◽  
Managerial Ownership ◽  
Net Income ◽  
Manufacturing Companies ◽  
Earnings Response Coefficient ◽  
Response Coefficient ◽  
Earnings Response

The objective of this study is to examine whether corporate governance influence the relation between accounting conservatism and Earnings Response Coefficient (ERC). The accounting conservatism proxy used in this research is accruals obtained from differences between net income and cash flow. Sample consists of 31 manufacturing companies that listed in Indonesian Stock Exchange since 2003­2006. Hypotheses are examined by using multiple regressions. The result shows that there is a negative influence of accounting conservatism to Earnings Response Coefficient. Managerial ownership as a moderating variable did not affect the relation between accounting conservatism and Earnings Response Coefficient, but independent board of commissioner composition as a moderating variable affected the relation between accounting conservatism and Earnings Response Coefficient.

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