Corporate law and governance: A case of Tunisia after the Arab Spring

2021 ◽  
Vol 3 (2) ◽  
pp. 20-29
Author(s):  
Wajdi Ben Rejeb
Keyword(s):  
Corporate Governance ◽  
Small And Medium Enterprises ◽  
Gender Diversity ◽  
Women Directors ◽  
Governance System ◽  
African Countries ◽  
Interlocking Directorates ◽  
Governance Practices ◽  
Medium Enterprises ◽  
The Arab Spring

This paper reviews the corporate governance practices of listed Tunisian companies. Besides that, the paper explores the evolution of corporate governance legislation between 2013 and 2017 in order to identify the changes caused by the revolution to accompany the current context’s needs and the democratic transition in Tunisia. Although the most of companies in Tunisia are dominated by family small and medium enterprises (SMEs) and very small enterprises (VSEs) we have chosen to focus on listed companies. These companies present more advanced practices of corporate governance given the legislation in force. Results of this paper shed light on several important features of the Tunisian corporate governance system, for example, interlocking directorates. It is interesting to notice that a limited number of directors control the majority of the market capitalization in Tunisia. The practice of interlocking directorates reflects the Tunisian way of economic lobbying. As for gender diversity, although there are no laws imposing a minimum quota of women directors, the proportion of female board members has slightly increased during the last years, moving from 7.87% in 2013 to 9.92% in 2017. In contrast to Arab and African countries, it should be noted that the majority of women directors sit on boards as members of the family controlling the company or because they are civil servants representing the state’s interests in state-owned enterprises

scholarly journals Corporate governance and agency theory: Megacable case

2018 ◽  
Vol 2 (1) ◽  
pp. 59-69 ◽  
Author(s):  
José G. Vargas-Hernández ◽  
María Elizabeth Teodoro Cruz
Keyword(s):  
Corporate Governance ◽  
Best Practices ◽  
Agency Theory ◽  
Small And Medium Enterprises ◽  
Empirical Literature ◽  
Governance System ◽  
Financial Reports ◽  
Cable Operator ◽  
Corporate Governance System ◽  
Medium Enterprises

The objective of this research is to determine the importance of the implementation of a corporate governance system in the Mexican company Megacable in its development, from the review of the theoretical and empirical literature. Therefore, a descriptive and explanatory study was carried out that describes the concepts related to the aforementioned elements. and financial reports of two periods are analyzed, as well as the main attributes that explain the success of the company. Among the main results obtained are that the Megacable group is the cable operator; Mexico’s largest internet and telephony in terms of subscribers, its structure as a controlling company that is managed through a series of subsidiaries and controlling companies and smaller operating companies in the same sector. It can be concluded that implementing efficient corporate governance among small and medium enterprises will have a clearer way of how to implement and execute the plans and best practices that will allow them to be leaders in their sector.

scholarly journals Governance Issues for SMEs

2010 ◽  
Vol 4 (4) ◽  
Author(s):  
Thomas Clarke ◽  
Alice Klettner
Keyword(s):  
Corporate Governance ◽  
Small And Medium Enterprises ◽  
Governance Structures ◽  
Small Companies ◽  
Governance Practices ◽  
Medium Enterprises

This paper draws on research into the corporate governance practices of small and medium enterprises (SMEs) listed on the Australian Securities Exchange. Interviews were conducted with the directors and/or company secretaries of 19 SMEs. The aim of the research was to explore not only SME corporate governance structures and processes but how SMEs had chosen to implement the Principles and the reasons for their choices. The paper addresses the issue of whether the ASX Corporate Governance Principles and Recommendations were appropriate for SMEs. It describes the SME responses to the requirements, how these differ from those of larger companies, and how these differences impact on small companies.

Private equity and corporate governance: managing Brazilian SMEs

2014 ◽  
Vol 14 (2) ◽  
pp. 220-237 ◽  
Author(s):  
Estêvão Teixeira Latini ◽  
Joaquim Rubens Fontes-Filho ◽  
Eric L. Chambers
Keyword(s):  
Corporate Governance ◽  
Best Practices ◽  
Private Equity ◽  
Institutional Environment ◽  
Small And Medium Enterprises ◽  
Content Type ◽  
Similar Work ◽  
Governance Practices ◽  
Before And After ◽  
Medium Enterprises

Purpose – This paper aims to identify the effectiveness of private equity and venture capital (PE/VC) funds in promoting best practices of corporate governance in small and medium enterprises (SMEs) committed to PE/VC partnerships, in an institutional environment characterized by ownership concentration, lack of support for minorities' shareholder rights, and limited outside sources of finance for SMEs. Design/methodology/approach – Based on the literature related to similar work and context as in Eastern Europe and South Africa and best corporate governance practices developed for Brazil, the authors developed a list of aspects associated to practices related to SMEs. This list was submitted to 15 specialists, and the resulting compilation produced a list of 49 items that were submitted to a sample of 78 respondents to evaluate the relative importance of each item. Finally, a survey comprised of 70 entrepreneurs and managers of SMEs with investments from PE/VC funds evaluated the situation of their companies before and after forming a partnership with the fund. Findings – The study provides evidence that PE/VC funds play an important role in promoting best practices of corporate governance in invested SMEs, which contributes to development of the institutional environment and SMEs access to outside sources of finance. Originality/value – The study contributes empirical evidence to the role played by PE/VC funds and their influence on corporate governance practices.

Does audit committee substitute or complement other corporate governance mechanisms

2017 ◽  
Vol 32 (7) ◽  
pp. 658-681 ◽  
Author(s):  
Yousef Hassan ◽  
Rafiq Hijazi ◽  
Kamal Naser
Keyword(s):  
Corporate Governance ◽  
Ownership Structure ◽  
Audit Committee ◽  
Negative Relationship ◽  
Governance Mechanisms ◽  
Governance System ◽  
African Countries ◽  
Content Type ◽  
Board Characteristics ◽  
Corporate Governance Mechanisms

Purpose The purpose of this paper is to examine the relation between audit committee (AC) and a set of other corporate governance mechanisms in one of the emerging economies, United Arab of Emirates (UAE). In particular, the current study examines whether an effective AC can serve as a substitute or as a complement mechanism to board characteristics and ownership structure of Emirati listed non-financial companies. Design/methodology/approach Using substitution and complementary theories, a panel data from 48 nonfinancial companies listed on the UAE Stock Exchanges [Abu Dhabi Stock Exchange and Dubai Financial Market] during the period between 2011 and 2013 were used in the current study. A composite measure of four proxies has been used to measure the AC effectiveness, namely, AC size, independence, financial expertise and diligence. To test the hypotheses formulated for the study, a logistic regression model was used to identify the influence of a set of board characteristics and ownership structure variables on the effectiveness of the AC after controlling for firm size, auditor type, industry type and profitability. Findings While AC effectiveness appeared to be positively associated with board size and board independence, it is negatively associated with CEO duality. This points to a complementary governance relation. On the other hand, the negative relationship between AC effectiveness and each of institutional and government ownership suggests substitutive relations. Research limitations/implications The main shortcoming of the current study is that it examines the influence of a certain set of corporate governance factors on the effectiveness of AC. Other corporate governance mechanisms may, however, contribute to the effectiveness of AC. The findings of the study can be used by companies’ managements and regulators in the UAE to improve the corporate governance system. Originality/value To the best of researchers’ knowledge, this study provides the first evidence about the interaction among multiple governance mechanisms required by the code of corporate governance issued by the UAE Ministry of Economy in 2009. The current paper is expected to add to the limited AC literature in Middle East and North African countries in general and Arab World in particular.

scholarly journals Impact of Corporate Governance on Investment in SMEs Vietnam

2019 ◽  
Vol 11 (11) ◽  
pp. 59
Author(s):  
Nguyen Thi Kim Chi ◽  
Bui Van Can ◽  
Bui Minh Duc
Keyword(s):  
Corporate Governance ◽  
Agency Theory ◽  
Positive Impact ◽  
Small And Medium Enterprises ◽  
Financial Leverage ◽  
Board Chair ◽  
Revenue Growth ◽  
Medium Enterprises ◽  
The Impact ◽  
State Enterprises

Controlling the investment activities of company representatives helps to avoid inefficient investment activities. Shareholders will face with risks if manager’s decisions which not bring benefits to shareholders (according to agency theory). Studying the influence of corporate governance on investment has an important role in controlling investment activities of enterprises. Therefore, the authors analyze the impact of corporate governance on investment of small and medium enterprises (SMEs) in Vietnam from 2014 to 2018. With data collected from 480 small and medium enterprises in Vietnam. The results show that state-owned enterprises tend to invest less than non-state enterprises. Companies with manager is board chair and manager hold shares will make investing more. Revenue growth and financial leverage have a positive impact on investment. From the results of this study, the authors also make some recommendations to help control investment activities in the enterprise through corporate governance characteristics.

scholarly journals Short-run price performance of IPOs and corporate governance practices: Evidence from a frontier market

2018 ◽  
Vol 2 (1) ◽  
pp. 34-42 ◽  
Author(s):  
SMRK Samarakoon ◽  
KLW Perera
Keyword(s):  
Corporate Governance ◽  
Initial Public Offerings ◽  
Negative Impact ◽  
Stock Exchange ◽  
Sri Lankan ◽  
Governance System ◽  
Public Offerings ◽  
Price Performance ◽  
Governance Practices ◽  
Short Run

The short-run price performance of Initial Public Offerings (IPOs) indicates that the prices are often underpriced which is widely documented as a universal phenomenon. Corporate governance refers to the set of systems, principles and processes by which a company is governed. Establishing good corporate governance system in an IPO company makes good decisions which attract more outside investors. Therefore, this study examines whether there is any impact of corporate governance practices on short-run price performance of Sri Lankan IPOs. Study examined 44 fixed price IPOs which were listed on the Colombo Stock Exchange (CSE) during the period of 2003 – January to 2015- December. The study found that Sri Lankan IPOs underprice by 30% on AR, which is statistically significant at 5% level. Further, it found that block holder ownership (ownership concentration), CEO duality and existence of the non-executive directors in the board are positively related to the short-run underpricing, which are statistically significant at 5%. But, the board size has a significant negative impact on underpricing. These relationships are in line with the international literature which confirms that the corporate governance practices have significant impact on short-run price performance of IPOs in Sri Lanka. These findings also support the agency and signaling theories.

scholarly journals Corporate governance in the context of the recovery of distressed firms: A case study in Brazilian air transportation sector

2011 ◽  
Vol 9 (1) ◽  
pp. 621-627
Author(s):  
Vinicio de Souza Almeida ◽  
Patrícia Ribeiro Romano
Keyword(s):  
Corporate Governance ◽  
Financial Distress ◽  
Governance Structure ◽  
Governance System ◽  
Transportation Sector ◽  
Governance Practices ◽  
Distressed Firms ◽  
Theoretical Evidence ◽  
The Cost ◽  
And Control

Corporate governance is a set of practices and processes of board and executives’ coordination and control that aims at protecting the interests of shareholders and others affected by the value of the company. The discussions and disputes involving shareholders in Brazil and a new corporate law aimed at improving governance practices in the country, reducing the cost of capital of the company and contributing to national economic growth. In this study, we compared the theoretical evidence on the governance structure of airlines with the reality of a large company in the sector in Brazil. The results indicate that a wrong architecture of ownership and control combined with the non-corporate governance system may result in financial distress for an organization.

Innovation Management Based on Knowledge

2015 ◽  
pp. 275-294
Author(s):  
Antonio-Juan Briones-Peñalver ◽  
Jose-Luis Roca-Gonzalez ◽  
Inmaculada-José Martínez-Martínez
Keyword(s):  
Corporate Governance ◽  
Business Performance ◽  
Small And Medium Enterprises ◽  
Innovation Management ◽  
The Other ◽  
Organizational Relationships ◽  
Good Corporate Governance ◽  
Market Approach ◽  
Medium Enterprises

The development of innovation management associated to knowledge management and business inter-organizational relationships based on project management is extremely important for good corporate governance and business performance. The interest of this chapter is to define the conceptual framework of everything mentioned above in technology-based companies. This chapter presents cases based on best practices for the development of innovation management, which is very present in small and medium enterprises with a market approach. This is the case of firms with a defense-related technology. The case study is about the innovation based on knowledge and research and about a technological and strategic view. On the other hand, economic inter-organizational relationships are also taken into account. An empirical analysis of 236 technology-based companies related to Spanish defense industry including a study about Knowledge and Innovation Management (KIM) as well as an assessment of its framework are also included.

Corporate governance and underpricing of small and medium enterprises IPOs in India

2020 ◽  
Vol 20 (3) ◽  
pp. 503-525
Author(s):  
Nischay Arora ◽  
Balwinder Singh
Keyword(s):  
Corporate Governance ◽  
Small And Medium Enterprises ◽  
Curvilinear Relationship ◽  
Board Structure ◽  
Governance Mechanisms ◽  
Content Type ◽  
Explanatory Variables ◽  
Corporate Governance Mechanisms ◽  
Medium Enterprises ◽  
The Impact

Purpose The purpose of the paper is to examine the impact of corporate governance mechanisms, i.e. board structure and ownership structure on the underpricing of small and medium enterprises (SME) IPOs in India. Design/methodology/approach Most of the extant empirical research studies have either pivoted on mainstream IPOs or SMEs IPOs in developed economies, but the present study examines 200 SME IPOs issued during Feb 2012 to April 2017. Multiple regressions have been used to examine the impact of the corporate governance mechanisms on raw return (RR). Furthermore, robustness of the results has been verified through the employment of market-adjusted excess return (MAER) as an additional proxy of underpricing. Findings The results highlight that board size, inverse of board committees, board independence, board age, board directorships positively, and top ten shareholding negatively influence RR. Further, direction of promoter ownership variable indicates curvilinear relationship with underpricing. Other explanatory variables used in model lack statistical validity. Similar results have been obtained when variables were regressed against MAER with related board members being additionally significant in model. Practical implications The findings suggest that Indian investors do take cues from board structure and ownership patterns for making investment decisions in small- and medium-sized firms. Further, the results are also helpful to top management in structuring their boards. Originality/value The present research enriches SME IPOs underpricing literature because the impact of corporate governance mechanisms on unadjusted returns is relatively under explored particularly within the context of small- and medium-sized firms.

scholarly journals Corporate Governance Practices in Listed State-owned Enterprises in India: An Empirical Research

2019 ◽  
Vol 12 (1) ◽  
pp. 94-121
Author(s):  
J. Kiranmai ◽  
R. K. Mishra
Keyword(s):  
Corporate Governance ◽  
Gender Diversity ◽  
Formal System ◽  
Governance Structure ◽  
Firm Age ◽  
Board Committees ◽  
The Social ◽  
Governance Practices ◽  
Governance Practice ◽  
Entire Network

Corporate Governance (CG) refers to a system in which corporations are directed and controlled. The governance structure specifies the distribution of rights and responsibilities among different participants in the corporation and specifies the rules and procedures for making decisions in corporates. Governance provides the structure through which corporations set and pursue their objectives, while reflecting the context of the social, regulatory and market environment. Governance is a mechanism for monitoring the actions, policies and decisions of corporations. Governance involves the alignment of interests among the stakeholders. CG is an umbrella term. In its narrower sense, it describes the formal system of accountability of corporate directors to the owners of companies. In its broader sense, the concept includes the entire network of formal and informal relationships involving the corporate sector and the consequences of these relationships on society in general. The center objective of the paper is to create linkages between firm performance and governance practice in the listed SOEs in India. The present paper makes an attempt to compare the various CG variables of the listed SOEs for a period of five years ie 2012-13 to 2016-17. A detailed analysis of the 42 listed State Owned Enterprises (SOEs) in terms of board size, board meetings, board committees, board composition, independent directors, firm age, gender diversity has been compared. Finally conclusions are drawn from empirical analysis.

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