Corporate governance and financial performance of listed companies: A case of an emerging market

Corporate financial performance (CFP) is a key benefit that comes with the adoption and implementation of a good corporate governance structure in organizations. The objective of this paper is to analyze the effect of the six (6) broad corporate governance structures (board composition, board committees, separation of CEO/chairman, size of board, number of board meetings held, and shareholder concentration) on CFP measured by ROA, ROE, EPS, and Tobin’s Q among Ghanaian companies. The target population for the study was the companies that were listed on the Ghana Stock Exchange (GSE) for the period 2015–2020 and purposive sampling methods were deployed in the sample selection. The study found that using ROA as a performance indicator, corporate governance variables affected CFP by 18.95% whilst it influenced ROE by 29.71%. Additionally, corporate governance mechanisms impacted EPS by 52.53% when it was used as a performance indicator and 18.01% when Tobin’s Q was the performance index. The paper concludes that companies that implement the corporate governance guidelines on best practices stand a better chance of enhancing CFP especially with performance targets that integrate shareholder value maximization.

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christiano VOL7 ED.1

10.31219/osf.io/bv42x ◽

2019 ◽

Author(s):

Christiano Lombogia

Keyword(s):

Corporate Governance ◽

Financial Performance ◽

Stock Exchange ◽

Financial Statements ◽

Coefficient Of Determination ◽

Tobin’S Q ◽

Corporate Value ◽

Manufacturing Companies ◽

Tobin's Q ◽

Good Corporate Governance

This research is done to know effect of financial performance toward corporate value by using of Good Corporate Governance as a moderating variable. ROA,ROE, And Leverage as an indicator of financial performance is known as the dependent variable. Good Corporate Governance (GCG )is a moderating variable.The companies that are in the research are manufacturing companies which are listed in the Indonesian Stock Exchange (IDX), published financial statements ending December 31, and had complete data of Good Corporate Governance. The data is then processed by using statistical appliance that was called regression with interaction.According to the research financial performance (ROA, ROE and Leverage) by simultan show has an effect on corporate value (Tobin’s Q). Good Corporate Governance (GCG) hasn’t an effect the financial performance (ROA, ROE Leverage) toward the value of the company (Tobin’s Q). The result of coefficient of determination test indicate that all independent variables (ROA, ROE Leverage) can explain the variation of dependent variable (Corporate Value) amount to 44,8%. The result of coefficient of beta test indicate that ROE is most dominant influence to corporate value.

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Corporate governance and corporate performance: financial crisis (2008)

Management Research Review ◽

10.1108/mrr-12-2014-0287 ◽

2016 ◽

Vol 39 (11) ◽

pp. 1494-1515 ◽

Cited By ~ 5

Author(s):

Oskar Kowalewski

Keyword(s):

Corporate Governance ◽

Firm Performance ◽

Financial Crisis ◽

Stock Exchange ◽

Emerging Market ◽

Positive Association ◽

Tobin’S Q ◽

Tobin's Q ◽

Content Type ◽

The Impact

Purpose This paper aims to investigate the impact of corporate governance, as measured by the Corporate Governance Index, on firm performance and dividend payouts during the financial crisis of 2008. Design/methodology/approach The empirical approach followed in the study involved constructing a comprehensive measure of corporate governance for 298 non-financial companies listed on the Warsaw Stock Exchange in the years 2006-2010. Findings The results show that prior to the crisis, there was a positive association between corporate governance and performance as measured by Tobin’s q. Moreover, the study presents evidence that higher corporate governance leads to an increase in cash dividends. Amid the financial crisis, corporate governance was positively associated with a higher return on assets, yet this was not observed when measured by Tobin’s q. Additionally, during this period, better-governed companies paid dividends less generously than firms with lower corporate governance standards did. Originality/value The study provides new evidence on the impact of corporate governance on firm performance and valuation in an emerging market during the financial crisis. Moreover, the study shows that governance mechanisms operate differently in crisis and non-crisis periods.

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Effects of Infrastructure Development, Inflation and Economic Growth to Performance Company (ROA, Tobin's Q, PBV): Study on Registered Infrastructure Support Companies in IDX Period 2014-2019

Journal of Economics and Business ◽

10.31014/aior.1992.04.03.382 ◽

2021 ◽

Vol 4 (3) ◽

Author(s):

Eko Sarjono ◽

◽

Kartika Hendra Titisari ◽

Supawi Pawenang

Keyword(s):

Economic Growth ◽

Performance Measurement ◽

Financial Performance ◽

Stock Exchange ◽

Hypothesis Test ◽

Linear Regression Analysis ◽

Infrastructure Development ◽

Tobin’S Q ◽

Tobin's Q ◽

The Impact

The financial performance can be used as a benchmark of the ability of an organization or company in achieving its goals. Performance measurement is one of the most important factors for an organization or company, performance measurement is a process of measuring the extent to which a company does work to achieve its goals. The research investigated the impact of infrastructure, economic growth and inflation on financial performance of infrastructure support companies listed in Indonesian Stock Exchange Period 2014-2019 which is proxied by ROA (Return on Assets), Tobin’s Q and PBV (Price to Book Value). The population of this research was the infrastructure support companies listed on the Indonesian Stock Exchange period 2014-2019. Research sampling was conducted using The Purposive Sampling Method. The data analysis was camed out using classical assumption test, multiple linear regression analysis, t-test, F-test and determinan (R2) test with SPSS 21. The research finding showed that the model has an effect on the financial performance as proxied by ROA. So the results of the hypothesis test show that: (1) Infrastructure development has a negative and significant effect on ROA. (2) The inflation rate has a positive and significant effect on ROA. (3) Economic growth has no significant effect on ROA. Meanwhile, the model has no effect on financial performance which is proxied in Tobin's Q and PBV.

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Corporate Governance Mechanism on Financial Performance (Evidence from the Indonesia’s Listed State-owned Enterprises)

Journal of Business, Management, and Social Studies ◽

10.53748/jbms.v1i1.6 ◽

2021 ◽

Vol 1 (1) ◽

pp. 24-34

Author(s):

Anak Agung Kompiyang Ratih Maldini ◽

Pananda Pasaribu ◽

Christian Haposan Pangaribuan

Keyword(s):

Corporate Governance ◽

Financial Performance ◽

Positive Impact ◽

Stock Exchange ◽

Governance Structure ◽

Board Independence ◽

Governance Mechanism ◽

Good Corporate Governance ◽

Corporate Governance Mechanism ◽

The Impact

Objective – This study aims to find the impact of privatization, which proxied by good corporate governance toward the financial performance of SOEs in Indonesia. Methodology – This study used 16 privatized SOEs that are listed in Indonesia Stock Exchange and also 16 privatized non-SOEs as the comparison. The data is collected from the year 2014 to 2018 and analyzed by using multiple regression panel data. Findings – This study found that director size and board independence have a positive impact toward SOEs financial performance. The director size and board independences have a positive significant impact toward the SOEs financial performance while the privatized non-SOEs is not significantly affected Novelty – This study examines proper governance structure in SOEs and non-SOEs, thus providing new insights about good corporate governance regulation in the Indonesian context.

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Income Diversification and Financial Performance of Selected Deposit Money Banks in Nigeria

International Journal of Applied Management Sciences and Engineering ◽

10.4018/ijamse.20210101.oa1 ◽

2021 ◽

Vol 8 (1) ◽

pp. 1-17

Author(s):

Emmanuel Uniamikogbo ◽

Emma I. Okoye ◽

Arowoshegbe O. Amos

Keyword(s):

Financial Performance ◽

Foreign Exchange ◽

Stock Exchange ◽

Sampling Technique ◽

Annual Reports ◽

Tobin’S Q ◽

Firm Age ◽

Income Diversification ◽

Tobin's Q ◽

Negative Effect

This study examined the effect of income diversification on financial performance of deposit money banks (DMBs) in Nigeria. Variables considered were commission, foreign exchange incomes, and firm age, which are proxies for income diversification and financial performance proxied by Tobin's Q ratio. The purposive sampling technique was used to select the 8 banks classified by Central Bank of Nigeria to be Domestic Systematically Important Banks in Nigeria. Data collected from the annual reports and the Nigerian Stock Exchange website for a period 2008-2018 were used. Statistical tools used were the descriptive statistics and econometric analysis using the panel data. Findings showed that while commission income has a significant positive effect on Tobin's Q ratio of DMBs, foreign exchange income and firm age each have a significant negative effect on Tobin's Q ratio of DMBs in Nigeria. It is recommended that banks in Nigeria minimize their income from foreign exchange to maximize performance since income from these transactions tend to inhibit bank financial performance.

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PENGARUH KRISIS MONETER PADA KINERJA KEUANGAN DAN NILAIPERUSAHAAN

Media Riset Akuntansi Auditing & Informasi ◽

10.25105/mraai.v9i1.666 ◽

2009 ◽

Vol 9 (1) ◽

pp. 34

Author(s):

Nelli Novyarni

Keyword(s):

Financial Performance ◽

Stock Exchange ◽

Tobin’S Q ◽

Corporate Value ◽

Manufacturing Companies ◽

Tobin's Q ◽

Financial Ratio ◽

Before And After ◽

Equity Ratio ◽

Monetary Crisis

This study was aimed analyzing the monetary crisis on financial performance and corporation value effect.This study found that the monetary crisis affect on financial performance and corporation value. The study on 50 manufacturing companies consist of 25 companies variety business and industry and pharmacist notes at Jakarta Stock Exchange from 1992 to 2002 revealed that the monetary crisis cause decrease in financial performance and corporate value. Based on before and after mean financial and Tobin 's Q ratio, it found that the monetary crisis cause decrease in financial performance especially in 1998 and corporation value from 1998 to 2002. This study also found that based on each sector, the monetary crisis affect all financial ratio at sector one, especially in 1998 and 2000 and the monetary crisis just affect debt to equity ratio from to 2002 at sector two. Beside that the monetary crisis affect corporation value of all sectors.Keywords: Monetary crisis; financial ratio; Tobin's Q; Financial Performance; Value of the firm.

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The influence of foreign institutional investors, institutional directors, and the share pledge ratio of directors on financial performance of tourism firms

Tourism Economics ◽

10.1177/1354816619835613 ◽

2019 ◽

Vol 26 (1) ◽

pp. 179-201 ◽

Cited By ~ 1

Author(s):

Chien Mu Yeh

Keyword(s):

Corporate Governance ◽

Financial Performance ◽

Institutional Investors ◽

Least Square ◽

Tobin’S Q ◽

Tobin's Q ◽

Policy Makers ◽

Ordinary Least Square ◽

Tourism Sector ◽

Foreign Institutional Investors

Corporate governance is a critical component relevant to firm performance. In the tourism sector, corporate governance is an underexamined issue. The purpose of the current study is to bridge this gap by examining the influence of foreign institutional investors, institutional directors, and shares pledged by directors on tourism firms’ financial performance. Data are derived from listed tourism firms in Taiwan. Ordinary least square regressions and two-stage least square regressions are used to examine the hypotheses. Results show that the presence of foreign institutional investors and a low share pledge ratio of directors have significant effects on return on assets and Tobin’s Q. The presence of institutional directors has a positive effect on Tobin’s Q. Implications for owners, policy makers, and investors are discussed.

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Effects of Corporate Governance on Financial Performance of Commercial Banks in Nigeria

International Journal of Finance Research ◽

10.47747/ijfr.v2i1.244 ◽

2021 ◽

Vol 2 (1) ◽

pp. 13-23

Author(s):

Panan Danladi Gwaison ◽

Livinus Nkuri Maimako

Keyword(s):

Corporate Governance ◽

Financial Performance ◽

Commercial Banks ◽

Audit Committee ◽

Banking Sector ◽

Stock Exchange ◽

Gender Diversity ◽

Governance Structure ◽

Secondary Source ◽

Least Squares Regression

In most developing countries, several cases of collapses or failure in the banking sector were witnessed. Nigeria had witnessed several cases and collapsed in the banking sector. This study investigated the effects of corporate governance on the financial performance of commercial banks in Nigeria. The study used the survey research design. A secondary source of data was used for this research. The data were collected from financial statements of the five (5) commercial banks selected from the Nigerian Stock Exchange listing for fourteen financial years (2003 – 2017). The study utilized the panel Least Squares Regression Analysis as the method. The result indicated that board size had significant effects on financial performance (ROA) of commercial banks in Nigeria, board composition had significant effects on financial performance (ROA) of commercial banks in Nigeria, board gender diversity had significant effects on financial performance (ROA) of commercial banks in Nigeria, the audit committee has no significant effects on financial performance (ROA) of commercial banks in Nigeria, and board independence had significant effects on financial performance (ROA) of commercial banks in Nigeria. The study, therefore, concludes that the weak corporate governance structure in Nigeria contributed immensely to the recent crisis experienced in the Nigerian banking sector. The study recommended that banks develop and implement strategic training for board members and senior bank managers. Nigerian banks should appropriately adopt the international codes of corporate governance to meet the need of the Nigerian environment, among other recommendations.

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PENGARUH PENERAPAN GOOD CORPORATE GOVERNANCE TERHADAP NILAI PERUSAHAAN DENGAN IMPLEMENTASI CSR SEBAGAI VARIABEL PEMODERASI

IQTISHODUNA ◽

10.18860/iq.v10i1.3579 ◽

2016 ◽

Vol 10 (1) ◽

pp. 1-7

Author(s):

Misbahul Munir ◽

Eka Sevia Suryandari ◽

Anik Mahmudah

Keyword(s):

Corporate Governance ◽

Firm Value ◽

Audit Committee ◽

Stock Exchange ◽

Analytical Models ◽

Tobin’S Q ◽

Tobin's Q ◽

Good Corporate Governance ◽

Normality Test ◽

Corporate Social

Corporate Governance is a system that regulates and controls the company that is expected toprovide and enhance the company’s value to its shareholders. This study aims to determine the effect of theimplementation of good corporate governance (GCG) to the value of state-owned banks companies listings inIndonesia stock exchange (IDX) with the implementation of corporate social responsibility (CSR) as a moderatingvariable. This research is a quantitative, analytical models using classical assumption test consists of a testheterokedastisitas, non-autocorrelation test and normality test, followed by analysis using regression analysismoderation. The results showed that, application of good corporate governance is proxied by ManagerialOwnership (X1), Proportion of Independent Commissioner (X2), Audit Committee (X3), Independence of theAudit Committee (X4), Frequency of Audit Committee Meetings (X5) and the frequency of Board Meeting(X5) simultaneously significant effect on firm value (Tobin’s Q). With the results of R Square of 61.1% meansthat the variable Tobin’s Q (Y) in the six variables explained by the moderating variable of Corporate SocialResponsibility (Z). While the remaining 38.9% is explained by other variables or independent variables outsidethe regression equation.

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Pengaruh Corporate Governance Terhadap Kinerja Perusahaan yang Terdaftar di Bursa Efek Indonesia Tahun 2014 - 2017 (Studi pada Perusahaan yang Memperoleh CGPI Tahun 2014 – 2017)

EKONOMIS Journal of Economics and Business ◽

10.33087/ekonomis.v3i1.51 ◽

2019 ◽

Vol 3 (1) ◽

pp. 10

Author(s):

Eva Setiarini Damanik ◽

Yulia Istia Ningsih

Keyword(s):

Corporate Governance ◽

Sampling Method ◽

Positive Impact ◽

Stock Exchange ◽

Linear Regression Analysis ◽

Tobin’S Q ◽

Tobin's Q ◽

Return On Equity ◽

Good Corporate Governance ◽

Independent Variable

The objectives of this study is to find out the influence of good corporate governance (GCG) towards the corporate performance. Independent variable in this research is good corporate governance. This variable is measured with an instrument developed by IICG in the form of corporate governance perception index (CGPI). CGPI contains the score of the survey’s result related to the application of corporate governance by the Companies throughout Indonesia. Meanwhile the dependent Variable of this research is the Performance of the Company on their finances measured with “return on equity and Tobin’s Q. The Sample of this study is company which is registered in Indonesian Stock Exchange and joined CGPI Programs in 2014, 2015, 2016 and 2017 taken by using purposive sampling method. This study used simple linear regression analysis method. The result of this study : (1) Corporate governance has a positive impact on ROE (2) Corporate governance has not an impact on Tobin’s Q

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