scholarly journals Corporate governance and company performance in Italy: Corporate law and regulation perspective

2019 ◽  
Vol 1 (1) ◽  
pp. 24-35 ◽  
Author(s):  
Carlo Caserio ◽  
Sara Trucco
Keyword(s):  
Corporate Governance ◽  
Gender Diversity ◽  
Future Research ◽  
Company Performance ◽  
Board Governance ◽  
Corporate Board ◽  
Governance System ◽  
Research Areas ◽  
Participation Of Women ◽  
Governance Systems

This paper proposes an extensive analysis of corporate governance and corporate board practices in Italy, under different perspectives. First of all, through a literature review, the research aims to analyze the main effects of laws and regulations on corporate board practices in the Italian setting by taking into account the most important corporate board models in different types of companies. This study also highlights the different functions and responsibilities assigned to the boards, bodies and boards’ members, according to the governance system implemented – classic/traditional, dualistic, monistic. For each of these systems, the main issues are presented and the most important critical points are illustrated. Regarding the functions and the responsibility of the board members, the link between the board governance and company performance is discussed on the basis of the main literature, as well as the laws concerning the participation of women to the boards’ activities. Furthermore, the effects of gender diversity on company performance is analysed taking into account the main studies on this topic. Finally, the paper presents some conclusions and future research areas on the aforementioned topics: it proposes future empirical analysis on the effects that different governance systems, different board compositions and different roles of directors, as required by the law, may have on the performance of listed/unlisted companies and on family/non-family companies.

scholarly journals Corporate governance and remuneration: a bibliometric analysis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jinnatul Raihan Mumu ◽  
Paolo Saona ◽  
Hasibul Islam Russell ◽  
Md. Abul Kalam Azad
Keyword(s):  
Corporate Governance ◽  
Bibliometric Analysis ◽  
Boards Of Directors ◽  
Gender Diversity ◽  
Research Field ◽  
Future Research ◽  
Top Management ◽  
Outside Directors ◽  
Governance System ◽  
Content Type

PurposeThis study aims to pinpoint gaps in the literature on corporate governance and remuneration by producing a comprehensive bibliometric review for the period 1990–2020.Design/methodology/approachBibliometric analysis is the quantitative study of the bibliographic material in a specific research field. It allows an analyst to classify that material by paper, journal, author, indexation, institution or country, among other possibilities. This study reviews a total of 298 Web of Science–indexed journal articles on corporate governance and top-management remuneration schemes.FindingsThe authors find five distinct research strands: (1) firm performance and remuneration of top management, (2) the remuneration and independence of boards of directors and the efficiency of boards of directors as a governance system, (3) outside-director remuneration and the efficiency of outside directors as a monitoring system, (4) director remuneration and the corporate governance of companies and (5) the role of ownership structure and top managers' compensation schemes as corporate-governance tools. The authors identify gaps in the literature and avenues for future research for each of these strands.Practical implicationsThe authors’ findings have implications for board diversity (e.g. gender diversity), remuneration policy for top-level managers and governance issues (independent directors, separation of ownership with control). This study is the only one to summarize the key topics on which top research has been focused and can be broadly used for corporate governance management perspective.Originality/valueThis paper provides an overview of how the literature on corporate governance and remuneration has developed and a synopsis of the most influential and most productive authors, countries and journal sources. It creates an opportunity for other researchers to focus on this area. This study will also serve as a foundation for future meta-analyses.

scholarly journals Gender Diversity on the Board of Director and Firm Performance: Agency Theory Perspective

2021 ◽  
Vol 12 (2) ◽  
Author(s):  
Lela Hindasah ◽  
Mugi Harsono
Keyword(s):  
Corporate Governance ◽  
Selection Process ◽  
Gender Diversity ◽  
Future Research ◽  
Company Performance ◽  
Female Directors ◽  
Board Of Director ◽  
Governance Practices ◽  
And Performance ◽  
Board Gender Diversity

Research aims: This paper provides a literature review on the influence of board of directors' gender diversity on financial and non-financial performance.Design/Methodology/Approach: This research used the content analysis identified from previous studies based on the proxies employed. The article selection process was carried out from reputable international journals published in 2017-2020, resulting in 50 articles discussing board gender diversity and performance.Research findings: This study's results are a conceptual model and future research developments. Research related to female directors and performance has been much carried out. Hence, future research suggests correlating female directors based on monitoring characteristics, human capital board, and demographics. The influence of gender diversity on non-financial performance is also rarely studied.Theoretical contribution/Originality: Identification of gender diversity attributes associated with financial and non-financial performancePractitioner/Policy implication: This study provides valuable information for policymakers or regulators to refine future corporate governance policies and increase understanding of the relationship between corporate governance practices and company performance as measured by financial and non-financial performance.Research limitation/Implication: This study is based on only 50 articles in the last four years.

scholarly journals COMPLIANCE OF CORPORATE GOVERNANCE IN BOSNIA AND HERZEGOVINA WITH EUROPEAN UNION STANDARDS

2018 ◽  
pp. 340-355
Keyword(s):  
European Union ◽  
Corporate Governance ◽  
Bosnia And Herzegovina ◽  
Legal Framework ◽  
Regulatory Framework ◽  
Quality Level ◽  
The European Union ◽  
Governance System ◽  
Governance Systems ◽  
Principles And Standards

Corporate governance provides an answer to the question who controls the corporation and how. It involves a set of relationships between management, shareholders and stakeholders. Corporate governance in Bosnia and Herzegovina is within the legal jurisdiction of entities, and consequently there are two substantially aligned and yet completely distinct corporate governance systems, which separates Bosnia and Herzegovina as a state in the international environment into a specific category in terms of corporate governance. This paper will analyze ownership concentration in order to identify the characteristics of the corporate governance systems, then it will present the principles on which the legal framework for corporate governance in Bosnia and Herzegovina is defined, compare the business transparency standards with the transparency directive in the EU, and measure the quality level of corporate governance in order to define key areas for improvement of corporate governance in Bosnia and Herzegovina. The development and characteristics of the corporate governance systems in Bosnia and Herzegovina will be explored and compared with the regulatory framework and standards of corporate governance in the European Union. Special emphasis is on comparing the transparency principles and standards of corporations in Bosnia and Herzegovina with corporations in the European Union. The aim of the research is to compare the regulatory framework and characteristics of the corporate governance system in corporations in Bosnia and Herzegovina with the standards in the European Union, to identify similarities and differences and to define key areas for improvement of corporate governance in Bosnia and Herzegovina.

Current state of corporate governance: global business and cultural analysis

2016 ◽  
Vol 39 (11) ◽  
pp. 1431-1446 ◽  
Author(s):  
Namporn Thanetsunthorn ◽  
Rattaphon Wuthisatian
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
National Culture ◽  
Future Research ◽  
Governance System ◽  
Cultural Characteristics ◽  
Policy Makers ◽  
Content Type ◽  
Current State ◽  
Corporate Governance System

Purpose The purpose of this study is to explore the current state of corporate governance in various aspects of business settings and to empirically examine the impact of national culture on corporate governance performance, with a view of supporting business corporations in further enhancing the effectiveness of their corporate governance system. Design/methodology/approach A pooled sample of 9,003 companies drawn from 50 countries across ten different regions is collected. A variety of statistical methods, including the paired sample t-test, the ordinary least squares regression and the Pearson product-moment correlation coefficient are implemented to analyze the current state of corporate governance. To empirically investigate the causal relationship between national culture and corporate governance, the multivariate regression analysis is also applied. Findings This study proposes a broad set of the empirical findings regarding the current state of corporate governance. Despite being accepted as a prerequisite building block for sustainable corporate social responsibility (CSR), corporate governance is still receiving far less attention among business corporations. The governance framework is widely adopted by business corporations, yet the intensity of implementing corporate governance is significantly different across regions. The variation of the intensity observed across regions can be explained by the national cultural characteristics that are all likely to impact the degree to which corporations act in corporate governance manners. Corporate governance performance is strongly related to three other aspects of socially responsible corporate performance – community, employee and environment. Research limitations/implications This study provides both the motivation and a starting point for further investigation in the milieu of corporate governance. It would be interesting for future research to further explore the extent to which corporate governance has a positive indirect impact on a firm’s financial performance. There is potential to provide a more comprehensive analysis of the interaction effect of national culture and geographic region on corporate governance performance of the corporations embedded in that region through a statistical interaction method. In addition, it may be interesting to integrate corporate financial performance (CFP) into the analysis to identify a specific type/practice of the corporate governance that could provide the highest return on the investment. Last, another interesting avenue for future research would be to explore the ethical mechanisms that have been institutionalized to promote corporate governance practices. Practical implications The present study is beneficial to both business corporations and policy makers. In essence, the study can potentially draw managers’ attention to applying modified corporate governance strategies according to their national culture. Furthermore, the study can alter business corporations to promote a strong corporate governance regime in chorus to CSR strategies so as to promote CSR development, which ultimately results in higher levels of competitiveness and CFP. In addition, policy makers who are responsible for inward foreign investment can use the findings of this study to evaluate the investors’ potential governance adoption. Originality/value The findings of this study are useful in encouraging the business corporations to further strengthen their corporate governance system. This study helps to fill the theoretical void regarding the cultural impact on corporate governance by exploring a broad set of national cultural characteristics under which good corporate governance is more or less likely to occur.

The effect of borrower country financial system and corporate governance system types on the spread of syndicated loans

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nuno Moutinho ◽  
Carlos Francisco Alves ◽  
Francisco Martins
Keyword(s):  
Corporate Governance ◽  
Governance System ◽  
Financial Systems ◽  
Content Type ◽  
Financial Firms ◽  
Governance Systems ◽  
Corporate Governance System ◽  
Lower Interest Rate ◽  
Loan Spreads ◽  
The Cost

Purpose This study aims to analyse the effect of borrower’s countries on syndicated loan spreads, featuring countries according to institutional factors, namely, financial systems and corporate governance systems. Design/methodology/approach This study is an empirical investigation based on a unique sample of more than 85,000 syndicated loans from 122 countries. The paper uses standard and two-stage least squares regression analysis to test whether the types of financial and corporate governance systems affect loan spreads. Findings The paper finds that borrowers from countries with financial systems oriented towards the banking-based paradigm pay lower interest rate spreads than those from countries with financial systems oriented towards the market-based paradigm. In addition, there is evidence that borrowers from countries with more developed financial systems pay lower spreads. The results also show that borrowers from countries with an Anglo-Saxon governance system pay higher spreads than borrowers from countries with a Continental governance system. Research limitations/implications This study does not consider potential promiscuous relationships that can arise at the ownership structure and governance level between banks and borrowers and may affect loan spreads. Practical implications This study suggests that financial and corporate governance systems are essential factors in the financial intermediation process. Furthermore, the evidence indicates that corporates with higher potential agency costs and higher potential information asymmetry are requested to pay higher spreads. Therefore, the opportunities to such corporates invest optimally tend to be scarcer. Originality/value The paper highlights the impact of institutional factors on the cost of financing, characterising the countries according to the type of financial system and the type of corporate governance system. The study finds that borrowers from countries with bank-based financial systems pay lower interest rate spreads than those from countries with market-based financial systems. The paper also highlights how the level of financial development affects the cost of financing. The paper focusses on non-financial firms, unlike financial firms, which have been the focus of several empirical studies on topics relating to the cost of funding and corporate governance.

Corporate Governance-Systeme und Unternehmensfinanzierung - Empirische Befunde für deutsche Großunternehmen / Corporate Governance-Systems and Corporate Financing – Empirical Evidence for large corporations in Germany

ORDO ◽  
2013 ◽  
Vol 64 (1) ◽  
Author(s):  
Elmar Gerum ◽  
Sascha H. Mölls
Keyword(s):  
Corporate Governance ◽  
Empirical Evidence ◽  
Sich Eine ◽  
Governance System ◽  
Corporate Financing ◽  
Governance Systems ◽  
Corporate Governance System ◽  
Large Corporations

ZusammenfassungDas Ziel des Beitrages ist es zu prüfen, ob und inwieweit sich das deutsche Corporate Governance-System, insbesondere die Unternehmensfinanzierung, im Zuge des Systemwettbewerbs an internationale Standards angeglichen hat. Dazu wird das deutsche System zunächst im Kontext alternativer Corporate Governance-Systeme verortet. Danach werden empirische Befunde zur Struktur der Unternehmensfinanzierung sowie flankierender Institutionen in deutschen Großunternehmen präsentiert und erklärt. Es zeigt sich, dass heute eine effiziente Mischfinanzierung typisch ist, die die traditionellen Vorteile einer Bankenfinanzierung mit den Möglichkeiten des Kapitalmarkts kombiniert. Im Lichte der Befunde empfiehlt sich eine Neuorientierung von Forschung und Politik zu Corporate Governance.

scholarly journals Corporate governance and dividend pay-out policy in UK listed SMEs

2017 ◽  
Vol 25 (4) ◽  
pp. 459-483 ◽  
Author(s):  
Mohamed H. Elmagrhi ◽  
Collins G. Ntim ◽  
Richard M. Crossley ◽  
John K. Malagila ◽  
Samuel Fosu ◽  
...  
Keyword(s):  
Corporate Governance ◽  
Fixed Effects ◽  
Audit Committee ◽  
Gender Diversity ◽  
Negative Relationship ◽  
Corporate Board ◽  
Board Size ◽  
Content Type ◽  
Board Gender Diversity ◽  
Alternative Investment

Purpose The purpose of this paper is to examine the extent to which corporate board characteristics influence the level of dividend pay-out ratio using a sample of UK small- and medium-sized enterprises from 2010 to 2013 listed on the Alternative Investment Market. Design/methodology/approach The data are analysed by employing multivariate regression techniques, including estimating fixed effects, lagged effects and two-stage least squares regressions. Findings The results show that board size, the frequency of board meetings, board gender diversity and audit committee size have a significant relationship with the level of dividend pay-out. Audit committee size and board size have a positive association with the level of dividend pay-out, whilst the frequency of board meetings and board gender diversity have a significant negative relationship with the level of dividend pay-out. By contrast, the findings suggest that board independence and CEO role duality do not have any significant effect on the level of dividend pay-out. Originality/value This is one of the first attempts at examining the relationship between corporate governance and dividend policy in the UK’s Alternative Investment Market, with the analysis distinctively informed by agency theoretical insights drawn from the outcome and substitution hypotheses.

Women representation on boards: a South African perspective

2016 ◽  
Vol 24 (2) ◽  
pp. 211-225 ◽  
Author(s):  
Gizelle Willows ◽  
Megan van der Linde
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Board Of Directors ◽  
Boards Of Directors ◽  
Critical Mass ◽  
Gender Diversity ◽  
Current Status ◽  
Company Performance ◽  
Content Type ◽  
The Board Of Directors

Purpose By looking at both theoretical and empirical findings, this study aims to investigate whether gender diversity results in improved corporate governance and financial performance for companies. Design/methodology/approach An analysis of the board composition of the Johannesburg Securities Exchange Top 40 companies as at 30 June 2013 and a comparison of the financial performance of the company were conducted. Findings Female directors were found to make up, on average, 18.78 per cent of the board of directors, with the majority of these women being in non-executive positions. Women representation appears to influence company performance positively when using accounting-based measures of performance (such as return on assets and return on equity), but negatively when using market-based measures (such as Tobin’s Q). The critical mass concept is also assessed and is found to have a positive effect. Originality/value These findings are of relevance to the boards of directors adhering to corporate governance requirements by challenging the role of women on the board of directors, as well as that of investors and those in practice, to understand the current status of women representation.

The Role of Finance and Corporate Governance in National Systems of Innovation

2007 ◽  
Vol 28 (10) ◽  
pp. 1461-1481 ◽  
Author(s):  
Andrew Tylecote
Keyword(s):  
Corporate Governance ◽  
Three Dimensions ◽  
Governance System ◽  
Systems Of Innovation ◽  
Governance Systems ◽  
Variation Patterns ◽  
Technological Advantage ◽  
Corporate Governance System ◽  
National Systems

Firms are central actors in innovation, and their actions are much affected by their corporate governance and the finance available. Thus a country's finance and corporate governance system is a key element of its national system of innovation. The technological regimes of sectors (and sub-sectors) vary in ways that affect the demands innovation makes on the financial and corporate governance system. Finance and corporate governance systems (FCGSs) vary among countries in their ability to meet these demands. By setting three dimensions of regime variation alongside the three corresponding dimensions of FCGS variation, patterns of relative and absolute technological advantage among economies can be largely explained — particularly when the focus is on nationality of firm rather than location of activity.

scholarly journals The Impact of Corporate Governance on Company Performance: A Study among Medium and Large Enterprises in Kosovo

2018 ◽  
Vol 9 (6) ◽  
pp. 207-212
Author(s):  
Saxhide Mustafa ◽  
Hajdin Berisha ◽  
Shyqyri Llaci
Keyword(s):  
Corporate Governance ◽  
Company Performance ◽  
Governance System ◽  
Market Experience ◽  
Corporate Governance System ◽  
Governance Practices ◽  
The Impact ◽  
Proper Balance ◽  
Large Enterprises

Abstract An effective corporate governance system is established to ensure proper balance of long-term interests of different stakeholders (primarily: owners, employees and management) and improve company's performance and its competitive position in the market. This paper provides a theoretical discussion and empirical evidence on the interdependence between corporate governance and company performance among medium and large enterprises in Kosovo. A questionnaire survey was employed for data collection purposes. The study included a sample of 87 managers from 87 medium and large enterprises. Results indicate that effects of corporate governance on the performance tend to be greater in larger companies. Regarding the determinants, the theoretical expectations are confirmed. Results confirm that the size of the company, the level of investment, export activities and company life expectancy are statistically significant determinants of the adoption of corporate governance practices. As a result, larger companies with large scales of investment and longer market experience tend to adopt more corporate governance practices. The study suggests that corporate governance will inevitably affect companies’ performance and further research is needed in this context.

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