Corporate voluntary disclosures and board independence of Indian companies

2019 ◽  
Vol 3 (1) ◽  
pp. 42-50 ◽  
Author(s):  
Nidhi Sharma Sahore ◽  
Anshul Verma
Keyword(s):  
Corporate Governance ◽  
Corporate Sustainability ◽  
Positive Association ◽  
Corporate Image ◽  
Annual Reports ◽  
Board Independence ◽  
Voluntary Disclosures ◽  
Financial Disclosures ◽  
The Government ◽  
Corporate Social

Annual reports apart from being a means of communication are used as a vehicle of building and improving corporate image. Even the government and its institutions presiding over the corporate sector emphasize on additional disclosures related to corporate governance, corporate social responsibility, corporate sustainability etc. apart from more voluntary financial disclosures to enhance the investor confidence at large. There are a number of studies which argue, corporate governance and its mechanisms or proxies act as catalyst for increased voluntary disclosures while there are a few studies which negate or nullify its role in enhancing voluntary disclosures. Hence it is important at this juncture to find how it is currently placed in Indian context. The findings of this study suggest the lowering importance of proportion of independent directors in the boards of the companies. The variation in the extent of corporate disclosures over a longer period of time is not caused much due to board independence. However the role of board independence and its consistently positive association with voluntary financial and voluntary non-financial disclosures is an encouraging precursor for corporate firms and their varied stakeholders.

scholarly journals The roles of cost of capital, corporate governance, and corporate social responsibility in improving firm value: evidence from Indonesia

2019 ◽  
Vol 16 (4) ◽  
pp. 28-36 ◽  
Author(s):  
Kartika Hendra Titisari ◽  
M. Moeljadi ◽  
Kusuma Ratnawati ◽  
Nur Khusniyah Indrawati
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Firm Value ◽  
Cost Of Capital ◽  
Corporate Sustainability ◽  
Corporate Image ◽  
Negative Effect ◽  
Corporate Social ◽  
The Impact

Corporate governance (CG) and corporate social responsibility (CSR) are important subjects for corporate sustainability that affect firm value (FV). At the same time research results in several countries provide diverse empirical evidence. This study analyzes the impact of corporate governance (CG) and corporate social responsibility (CSR) on firm value (FV) through the cost of capital (CoC) in public companies of Indonesia. The research sample includes 27 companies that publish sustainability reports and corporate governance reports, with an observation period from 2010 till 2016. This study presents the analysis of three firm value proxies (Tobin’s q (TQ), Price Earnings Ratio (PER), and Price to Book Value (PBV)). Results of hypotheses testing using Partial Least Squares (PLS) show that CG and CSR have both direct and indirect effects on FV. These findings are consistent for all three firm value assessments. According to direct testing, CG has a negative effect on FV, while CSR has a positive effect. The CoC acts as a mediating variable in this relationship. The CG and CSR have a negative effect on CoC, while CoC has a negative effect on FV. The findings show that CG and CSR can improve the company performance and corporate image internally and externally, thereby increasing the investors` confidence, and companies have the opportunity to obtain inexpensive funding sources that can reduce CoC. A decrease in CoC can increase profitability and have an impact on FV increasing.

IMPACT OF CORPORATE GOVERNANCE ON FIRM PERFORMANCE: EVIDENCE FROM PAKISTAN

2021 ◽  
Vol 02 (01) ◽  
pp. 16-28
Author(s):  
Feryal Zafar ◽  
Shaheera Munir ◽  
Muhammad Saqib Khan
Keyword(s):  
Corporate Governance ◽  
Decision Makers ◽  
Annual Reports ◽  
Board Independence ◽  
Negative Effects ◽  
Research Issues ◽  
Listed Firms ◽  
Analysis Technique ◽  
Dependent Variables ◽  
The Relationship

The study attempts to figure out the relationship between the performance of the firms and corporate governance in Pakistan. Governance mechanisms used in this study are CEO duality, Independence of Board, Size of Board, and Ownership Concentration. While, the ROA and ROE have been used as dependent variables to measure the performance of firms. Using regression analysis technique on 10 listed firms trading over four years from 2014-2017, the results have been derived. The data regarding all the variables have been collected from all the companies’ annual reports. The discoveries of the study direct that fundamentals of corporate governance such as the Size of the Board, Ownership, and Duality Concentration of CEO have negative effects on performance of organization, as measured by ROA and ROE. While Board independence positively affects the performance of firms. The results are thus significant and provide valuable information for the decision makers about the research issues under consideration.

scholarly journals BAGAIMANA REAKSI INVESTOR TERHADAP CORPORATE SOSIAL DISCLOSURE (CSD)? (Studi pada Perusahaan Pemenang Indonesia Most Trusted Companies Award)

2018 ◽  
Author(s):  
Devica Pratiwi ◽  
Kezia Josephine
Keyword(s):  
Financial Performance ◽  
Stock Return ◽  
Corporate Image ◽  
Annual Reports ◽  
Sufficient Evidence ◽  
Altruistic Motive ◽  
Corporate Social Disclosure ◽  
Financial Motive ◽  
Corporate Social ◽  
Social Disclosure

<h5><em>Companies carrying out CSR activities can be grouped into three motives, such as: financial motive, ethical motive and altruistic motive. These three motives are the foundation of the company in planning their CSR activities each year. Each motive course has a purpose that has a good impact on the economic and social aspects of the company. A good corporate image ultimately gained public’s trust and will have a positive effect on the financial side of the company and the company's stock.</em></h5><h5><em>This research will focus on CSR disclosure (CSD) based on company’s motive and check its effect on company's financial performance based on market measurement, seen from investor reaction proxied with stock return. This study uses 56 company annual reports from 2013 to 2016, listed in the "Indonesia Most Trusted Companies Awards" which are fully published in 2014 until 2017 by SWA Magazine.</em></h5><h5><em>The method of statistical analysis in this study using moderated regression analysis, where independent variables of corporate social disclosure (CSD) using financial, ethical and altruistic motives. While the dependent variable in the form of Corporate Financial Performance (CFP) based on market measurements proxied through stock return.</em></h5><h5><em>The result of the research shows that corporate social disclosure (CSD) based on financial motive gives effect to stock return, while CSD with ethic motive and altruistic motive can’t provide sufficient evidence to influence the rate of return stock.</em></h5><h5><em> </em></h5><p><strong><em>Keywords</em></strong><strong><em>: </em></strong><em>CSD, CFP, CSR, CSR Motive</em></p>

APAKAH GOOD CORPORATE GOVERNANCE DAN CORPORATE SOCIAL RESPONSIBILITY BERPENGARUH TERHADAP PROFITABILITAS PERUSAHAAN LQ45?

2019 ◽  
Vol 4 (1) ◽  
pp. 14
Author(s):  
Novia Eka Sariantono ◽  
Luh Putu Mahyuni
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Stock Exchange ◽  
Secondary Data ◽  
Listed Companies ◽  
Annual Reports ◽  
Return On Equity ◽  
Good Corporate Governance ◽  
Corporate Social

Do Good Corporate Governance and Corporate Social Responsibility Influence Profitability of LQ45 Listed Companies. This study aims to examine the influence of good corporate governance and corporate social responsibility on profitability of LQ45 listed companies in Indonesia Stock Exchange. The data analyzed were secondary data in the form of annual reports and sustainability report. The data were analyzed using multiple linear regression. The results of this research indicate: (1) Good corporate governance (GCG) has a significant effect on profitability of LQ45 listed companies; (2) Corporate social responsibility (CSR) does not have a significant effect on profitability of LQ45 listed companies. This research provides empirical evidence that implementation of GCG could influence profitability, while the implementation of CSR does not influence profitability. Keywords: Good corporate governance, corporate social responsibility, independent commissioner board, corporate social responsibility, disclosure index, return on equity

scholarly journals CEO Tenure, Corporate Social Performance, and Corporate Governance: A Korean Study

2019 ◽  
Vol 12 (1) ◽  
pp. 99
Author(s):  
Jun Hyeok Choi ◽  
Saerona Kim ◽  
Ayoung Lee
Keyword(s):  
Corporate Governance ◽  
Good Governance ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Chief Executive ◽  
Ordinary Least Squares ◽  
Board Independence ◽  
Board Diversity ◽  
Ceo Tenure ◽  
Corporate Social

The purpose of this study was to examine the association between Chief Executive Officer (CEO) tenure and corporate social performance with the moderating effect of governance. We investigated whether new CEOs and CEOs in their last year of service were more focused on short-termism than CEOs of other periods. Specifically, we tested whether these CEOs reduced social performance that demands immediate expenditure and expect payoffs in the long run. We also tested whether good governance can mitigate such behaviors, because not all CEOs of the same tenure will act the same, depending on the monitoring environments surrounding them. We employed ordinary least squares (OLS) method and the moderator models using data from the Korean listed companies from 2012 to 2016. Test results showed that only the CEOs of their last year reduced social performance. However, when we considered corporate governance, we found that both groups of CEOs reduced social performance, and that good governance mitigated the adverse effects of the two periods on Corporate Social Responsibility (CSR). Specifically, we tested board independence, board frequency, CEO duality, and board diversity, and found that, for all but board independence, the negative effects of the two periods on social performance were decreased.

scholarly journals Corporate Governance and the Earnings Quality of Nigerian Firms

2020 ◽  
Vol 11 (5) ◽  
pp. 161
Author(s):  
Festus Oladipupo Olaoye ◽  
Ademola Adeniran Adewumi
Keyword(s):  
Corporate Governance ◽  
Comprehensive Evaluation ◽  
Earnings Quality ◽  
Gender Diversity ◽  
Annual Reports ◽  
Board Independence ◽  
Manufacturing Companies ◽  
Board Size ◽  
Board Gender Diversity ◽  
The Impact

The focus of the study is to examine the impact of corporate governance on earnings quality in listed firms in Nigeria. The specific objective is to investigate the effect of board size, board independence and board gender diversity on earnings quality. This study was carried out with secondary data retrieved from corporate annual reports of the sampled companies and the data was analysed using panel regression on a sample of 37 quoted manufacturing companies for the period 2011-2017. On the overall, the result reveals that Board size, board independence and board gender diversity used for measuring corporate governance show significant impact on earnings quality. In addition, corporate governance variables appear to be quite sensitive to the measure of earnings quality used. Based on the findings, the study recommends the need for comprehensive evaluation of corporate governance systems of companies. The study recommends the need for more level of board independence. The diversity issue though is gaining momentum in corporate governance literature can still be regarded as not as dominant as compared to others especially as it relates to protecting shareholder rights and framing dividend policy. The significance of the variable nevertheless suggests that companies should thrive to achieve an appropriate diversity mix.

scholarly journals Corporate Social Responsibility (CSR) Practice of Cellular Phone Companies in Bangladesh

IIUC Studies ◽  
2014 ◽  
Vol 8 ◽  
pp. 59-80
Author(s):  
Sayema Hoque ◽  
Tanzina Chowdhury
Keyword(s):  
Health Care ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Poverty Alleviation ◽  
Cellular Phone ◽  
Economic Resources ◽  
Annual Reports ◽  
Potential Benefits ◽  
The Government ◽  
Corporate Social

Cellular phone companies have occupied a significant position in the economy of Bangladesh. It has become one of the most profitable sectors as well as a big contributor to the government exchequer of this country. A great deal of economic resources is being utilized in this particular industry. Being an integral part of the society the companies operating within this industry are supposed to contribute towards social welfare through performing corporate social responsibility (CSR). In this backdrop, this study attempts to provide an overview of the CSR practices of the cellular phone companies of Bangladesh with special reference to the nature and impact of those practices. Based on the information provided in the annual reports and websites of respective companies the study has reached a conclusion that all the cellular companies except Airtel are engaged in CSR practices of some sort or other such as education, empowerment & poverty alleviation, environment, health care and others. However, there is still room for expanding CSR related activities to gain the potential benefits. DOI: http://dx.doi.org/10.3329/iiucs.v8i0.20403 IIUC Studies Vol.8 December 2011: 59-80

Embedding corporate governance and corporate social responsibility in emerging countries

2016 ◽  
Vol 58 (3) ◽  
pp. 299-316 ◽  
Author(s):  
Shigufta Hena Uzma
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Governance Structure ◽  
Emerging Countries ◽  
Corporate Disclosure ◽  
Content Type ◽  
Legal Enforcement ◽  
The Government ◽  
Corporate Social

Purpose This paper aims to examine how the governance structure incorporates corporate social responsibility (CSR) into corporate behaviour in the perspective of the external environment within emerging countries. Design/methodology/approach The paper reviews the various CSR legislations enacted in the global context and in particular reference to the Indian Companies Act 2013. Findings The embedded relationship between CSR and corporate governance (CG) is an outcome of extensive dimensions such as ownership structure, stakeholder approach and other external environmental factors such as the government regulations and legislation, legal enforcement and corporate disclosure culture. Originality/value The enactment of the Companies Act 2013 in India has infused a new direction for the corporations in implementing CSR and CG practices. This paper throws light on the coverage of the Companies Act 2013 and various challenges faced by the companies in the applicability of the CSR and CG framework in the Indian context.

Determinants of carbon management strategy adoption

2016 ◽  
Vol 31 (2) ◽  
pp. 156-179 ◽  
Author(s):  
Somaiya Yunus ◽  
Evangeline Elijido-Ten ◽  
Subhash Abhayawansa
Keyword(s):  
Corporate Governance ◽  
Management Strategy ◽  
Environmental Management System ◽  
Vital Role ◽  
Annual Reports ◽  
Board Independence ◽  
Board Size ◽  
Content Type ◽  
Carbon Management ◽  
Organisational Factors

Purpose – The purpose of this longitudinal study is to examine the determinants of carbon management strategy (CMS) adoption among Australia’s top 200 listed firms. Design/methodology/approach – A legitimacy theory framework is adopted to investigate whether any significant relationship exists between a firm’s decision to adopt CMS and internal organisational factors, such as the presence of an environmental management system (EMS), as well as corporate governance factors like having an environmental committee, board size and board independence. Content analysis of Carbon Disclosure Project data and other publicly available information sourced from firm websites, annual reports and stand-alone sustainability reports is conducted, covering the period from 2008 to 2012. Findings – Logistic regression analyses confirm that firms adopting CMS are more likely to have an EMS, an environmental committee, larger board size and greater board independence. The study also finds significant association between CMS adoption, firm size, leverage and environmental sensitivity of the firm’s industry. Originality/value – The study shows that internal organisational factors and corporate governance attributes play a vital role in maintaining organisational legitimacy through CMS adoption. The findings of this study should be of interest to report providers (i.e. reporting firms), report users (such as investors and consumers) and policymakers.

scholarly journals The Impact of Corporate Governance on Dividend Decisions: Evidence from Non-Financial Sector of Pakistan

2021 ◽  
Vol 10 (1) ◽  
pp. 285-295
Author(s):  
IHTESHAM KHAN ◽  
MUHAMMAD SHAHID ◽  
SHAH RAZA KHAN
Keyword(s):  
Corporate Governance ◽  
Financial Institution ◽  
Stock Exchange ◽  
Annual Reports ◽  
Board Independence ◽  
Board Size ◽  
Financial Firms ◽  
Size Firm ◽  
The Impact ◽  
Individual Ownership

This study sought to ascertain the impact of corporate governance on dividend decisions of non-financial firms listed on Pakistan stock exchange (PSX). Panel data was collected from 2011to 2016. Data was collected from Non financial firms annual reports and State Bank of Pakistan (SBP) data base. The STATA software was used to analyze the data. The study investigates the association of firm’s performance and corporate governance. Specifically, this study investigate dividend decision (dividend per share(DPS)), corporate governance (board independence ,board size, size of firm, leverage, profitability, Insider ownership, individual ownership, and institutional ownership). A total of 42 non-financial firms are used to determine this relationship. The results show a positive significant relation between the Profitability, individual ownership with DPS. This study also found a negative and significant relationship between insiders ownership, financial institution ownership with DPS. It has also been found that Board independence, board size, firm size and leverage have negative and insignificant relationship with dividend per share (DPS). Keywords: Corporate Governance, Dividend Decisions, Dividend Policy.

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