scholarly journals Corporate governance and performance of listed commercial banks in South Africa

2014 ◽  
Vol 11 (2) ◽  
pp. 677-687
Author(s):  
Sam Ngwenya
Keyword(s):  
South Africa ◽  
Corporate Governance ◽  
Commercial Banks ◽  
Global Financial Crisis ◽  
The United States ◽  
Executive Directors ◽  
Governance Indicators ◽  
And Performance ◽  
The Global Financial Crisis ◽  
The Relationship

The global financial crisis of 2008 that resulted in the collapse of many financial institutions in the United States (US) and Europe have resulted in debates over the failures of corporate governance structures to properly protect investors. The main objective of the study was to determine the relationship between corporate governance and performance of listed commercial banks in South Africa. The results of the study indicated a statistically positive significant relationship between board size, proportion of non-independent and non-executive directors and bank performance. The results of the rest of the corporate governance indicators are mixed when using different performance measurement variables.

scholarly journals Examining the relationship between CEO remuneration and performance of major commercial banks in South Africa

2015 ◽  
Vol 13 (1) ◽  
pp. 115-124
Author(s):  
Mahlomola Khumalo ◽  
Andries Masenge
Keyword(s):  
South Africa ◽  
Firm Performance ◽  
Commercial Banks ◽  
Global Financial Crisis ◽  
Banking Industry ◽  
Bank Performance ◽  
Measurement Instruments ◽  
New Perspective ◽  
And Performance ◽  
The Relationship

The relationship between CEO remuneration and firm performance continues to receive much attention. Although the focus of most of the studies is across sectors, attention is increasingly being directed towards the banking industry. At the same time, controversy around what is deemed excessive remuneration of CEOs in the light of not so impressive firm performance across sectors continues. The 2008 global financial crisis and subsequent problems in the banking industry have increased interest in the dynamics of CEO remuneration and bank performance. This study, which examines the relationship between CEO remuneration and bank performance in South Africa, aims to bring a new perspective to the on-going research and debate. The data used is for the years 2008 – 2013, and a purposive sampling method was employed to select a sample frame that consists of five major commercial banks in South Africa. The results suggest that not all measurement instruments used confirmed that a relationship between CEO remuneration and bank performance existed. In the overall, the results of the study do show that the remuneration of the CEO in the banking industry is such that it does have a significant influence on the performance of a bank.

Corporate governance and performance of REITs

2018 ◽  
Vol 33 (6/7) ◽  
pp. 586-612 ◽  
Author(s):  
Jayalakshmy Ramachandran ◽  
Khoo Kok Chen ◽  
Ramaiyer Subramanian ◽  
Ken Kyid Yeoh ◽  
Kok Wei Khong
Keyword(s):  
Corporate Governance ◽  
Regression Analysis ◽  
Firm Size ◽  
Global Financial Crisis ◽  
Equation Modeling ◽  
Content Type ◽  
And Performance ◽  
The Global Financial Crisis ◽  
The Impact ◽  
The Relationship

PurposeThis study aims to investigate the relationship between corporate governance (CG) and performance of Real Estate Investment Trust (REITs) in Singapore and Malaysia.Design/methodology/approachThe CG attributes that contribute best toward R-Index scores are tested followed by analysis of whether R-Index scores contribute toward better performance of the REITs when controlled for growth, firm size and leverage. Regression analysis using structured equation modeling (SEM) is instituted.FindingsAll attributes in the R-Index except management ownership are significantly correlated to R-Index. Regression analysis using SEM reveals that all the three measures of performance are significant. When controlled for growth and firm size, CG mechanisms reduce the impact of losses. However, highly levered firms could be risky for investors despite strong CG mechanisms.Research limitations/implicationsAll S-REITs and M-REIT sampled were grouped as one regardless of the country differences, which may have limited the results and findings. The R-Index used to score the CG practices for Asia is still very new.Practical implicationsFindings of the study will help REIT policymakers to update scorecards frequently. Loss-making REITs must emphasize on specific CG attributes to enhance their overall CG scores to gain market confidence and procure financial assistance through better disclosure.Originality/valueDue to research scarcity on CG effectiveness associated with performance of Asian REITs after the global financial crisis, this study comes as a timely contribution in understanding the relationship between CG and performance of REITs.

scholarly journals Performance satisfaction, shareholder and stakeholder orientations: Managers´ perceptions in three countries across continents

2013 ◽  
Vol 16 (2) ◽  
pp. 199-215 ◽  
Author(s):  
Georgios Angelopoulos ◽  
John A Parnell ◽  
Gregory J Scott
Keyword(s):  
United States ◽  
South Africa ◽  
The United States ◽  
Future Research ◽  
Organisational Performance ◽  
Stakeholder Orientation ◽  
And Performance ◽  
Performance Satisfaction ◽  
The Relationship

Managers working in South Africa, Peru and the United States were classified as stakeholder- and/or shareholder-oriented along the Perceived Role of Ethics and Social Responsibility (PRESOR) scale. The relationship between stakeholder/shareholder orientation and perceptions of organisational performance was further explored. In South Africa and overall, respondents with both high stakeholder and low shareholder orientations reported the greatest performance satisfaction. In Peru, managers with a high stakeholder orientation reported the greatest satisfaction with organisational performance. A significant link between stakeholder or shareholder orientation and performance satisfaction was not found in the United States, however. Directions for future research are outlined.

scholarly journals CORPORATE GOVERNANCE: THE GATEWAY TO A ROBUST CORPORATE FINANCIAL PERFORMANCE IN MALAYSIA

2020 ◽  
Vol 8 (7) ◽  
pp. 91-98
Author(s):  
Khairi Aseh ◽  
Kamal Kenny ◽  
Ravindran Pathmanathan
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Global Financial Crisis ◽  
Descriptive Analysis ◽  
Corporate Financial Performance ◽  
Board Committees ◽  
Corporate Scandals ◽  
The Global Financial Crisis ◽  
The Impact ◽  
The Relationship

In recent years, with corporate scandals and the global financial crisis, the emerging concept of corporate governance has received increasing attention in the corporate world in these days. It is seen as a moral obligation and includes supporting the consistency of the law and showing ethical guidance. Corporate governance is seen as an important tool for the financial performance of companies, and investor investment decisions have become a more serious topic, so the relationship between corporate governance tools and measurement of financial performance has attracted researchers' interest in the past decade mainly in developed and developing cities. In this study, we attempted to examine the impact of corporate governance on corporate financial performance in Kuala Lumpur using a sample of 215 companies on KLSE. Like previous research, firm, age, firm size, board size, CEO duality, board composition, board committees is the independent variables and their influence is to measure the financial ROA, ROE and Tobin's q , all kinds of test is used to investigate the relationship such as descriptive analysis, Pearson moment related test and regression using first data over a period of time.

A NOTE ON LEVERAGE AND THE MACROECONOMY

2014 ◽  
Vol 20 (1) ◽  
pp. 429-445 ◽  
Author(s):  
Khandokar Istiak ◽  
Apostolos Serletis
Keyword(s):  
Financial Services ◽  
Economic Activity ◽  
Global Financial Crisis ◽  
The United States ◽  
Important Distinction ◽  
Shadow Banks ◽  
The Past ◽  
Macroprudential Policies ◽  
The Global Financial Crisis ◽  
The Relationship

In this paper we investigate the relationship between leverage and the level of economic activity in the United States, using quarterly data over the period 1951–2012. We address the question for five different measures of leverage—household leverage, nonfinancial firm leverage, commercial bank leverage, broker–dealer leverage, and shadow bank leverage—making a distinction between traditional banks and shadow banks, the latter being a consequence of financial innovation and deregulation in the financial services industry over the past 30 years. We investigate whether the relationship between leverage and the level of economic activity is nonlinear and asymmetric using slope-based tests as well as tests of the null hypothesis of symmetric impulse responses. Our results inform policymakers about the important distinction between traditional banks and the market-based financial intermediaries that have been at the center of the global financial crisis of 2007–2009. They also inform about the macroeconomic effects of the deleveraging process that began in 2008, as well as about the need for countercyclical macroprudential policies to reduce the procyclicality of the financial system.

scholarly journals ESG Performance and Shareholder Value Creation in the Banking Industry: International Differences

2019 ◽  
Vol 11 (5) ◽  
pp. 1404 ◽  
Author(s):  
María Miralles-Quirós ◽  
José Miralles-Quirós ◽  
Jesús Redondo Hernández
Keyword(s):  
Corporate Governance ◽  
Value Creation ◽  
Global Financial Crisis ◽  
Banking Industry ◽  
Shareholder Value ◽  
Geographic Area ◽  
Socially Responsible ◽  
The Global Financial Crisis ◽  
The Relationship

The aim of this paper is to study the role of socially responsible activities on shareholder value creation in a sample of 166 banks from 31 countries over the 2010–2015 period. Prior research about this relationship is scarce and limited to the period before and during the global financial crisis. In contrast, this research analyzes banks over a period of time when these institutions have increased their social responsibility practices in order to reinforce their credibility and the trust their stakeholders have in them. More precisely, we analyze the relationship between these two magnitudes distinguishing between environmental, social, and corporate governance actions as well as between countries taking into account the level of development, legal systems, and the geographic area. Our findings are relevant not only for academics, but also for the managers of these companies, policymakers, investors, and society in general.

scholarly journals CEO compensation, corporate governance, and performance of listed platinum mines in South Africa

2016 ◽  
Vol 13 (2) ◽  
pp. 408-416
Author(s):  
Sam Ngwenya
Keyword(s):  
South Africa ◽  
Corporate Governance ◽  
Financial Performance ◽  
Executive Compensation ◽  
Significant Relationship ◽  
Ceo Compensation ◽  
Company Performance ◽  
Performance Variables ◽  
And Performance ◽  
The Relationship

Executive compensation has been studied extensively in the past three decades, yet the relationship between company performance and executive compensation continues to be a debated topic judging from the number of articles in academic literature. The main objective of this study was to determine the relationship between CEO compensation, corporate governance and financial performance of listed platinum mines in South Africa. The results of the study indicated no statistics significant relationship between CEO compensation and the financial performance variables ROE and ROA. The results also indicated a positive relationship between some corporate governance variables such as board size and proportion number of independent non-executive directors, but found no statistic significant relationship between CEO compensation and proportion number of female board members.

scholarly journals Governança corporativa: uma análise da relação entre o turnover da administração e o desempenho

ForScience ◽  
2020 ◽  
Vol 8 (2) ◽  
pp. e00772
Author(s):  
Bárbara Siqueira da Silva ◽  
Danielle Gonçalves Silva ◽  
Bruna Camargo Avelino ◽  
Valéria Gama Fully Bressan
Keyword(s):  
Corporate Governance ◽  
Stock Exchange ◽  
The United States ◽  
Executive Turnover ◽  
Governance System ◽  
Return On Equity ◽  
Developed Economies ◽  
Management Positions ◽  
And Performance ◽  
The Relationship

A governança corporativa é considerada um mecanismo que possui como objetivo o alinhamento entre as ações dos administradores e os interesses dos acionistas. Pesquisas realizadas no final da década de 1980 e início da década de 1990 identificaram que a relação entre a rotatividade dos executivos (turnover) e o desempenho da entidade pode ser considerada uma métrica para avaliar a eficiência de um sistema de governança corporativa. Essa métrica tem sido estudada em economias desenvolvidas, como Estados Unidos, Dinamarca e Japão, mas pouco abordada em países de economia considerada emergente. Diante disso, este estudo teve como objetivo verificar se o desempenho das empresas brasileiras de capital aberto influencia na probabilidade de turnover dos altos cargos da administração, tendo como foco as companhias listadas na B3 no período de 2012 a 2017. A amostra foi constituída por 87 empresas, e o modelo utilizado foi o de regressão logística. Os resultados apontaram coeficientes negativos e significativos para as variáveis Retorno do Patrimônio líquido, Retorno das ações e Propriedade familiar. Dessa forma, pôde-se concluir que o desempenho das companhias está inversamente relacionado à rotatividade dos executivos e que as empresas familiares apresentam menor rotatividade de seus administradores. Palavras-chave: Turnover. Governança corporativa. Desempenho.   Corporate governance: an analysis of the relationship between management turnover and performance Abstract Corporate governance is considered a mechanism that aims to align the actions of the managers with the interests of shareholders. Researches conducted in the late 1980s and early 1990s identified that the relationship between executive turnover and the entity's performance can be considered as a metric to assess the efficiency of a corporate governance system. This metric has been studied in developed economies as the United States, Denmark and Japan, but scarcely addressed in emerging economies. Therefore, this study aimed to verify whether the performance of Brazilian companies influences the probability of turnover of senior management positions, focusing on companies listed on the Brazilian Stock Exchange, from 2012 to 2017. The sample consisted of 87 companies and the analysis was based on logistic regressions. The results showed negative and significant coefficients for the variables Return on Equity, Return on Shares and Family Ownership. Thus, it can be concluded that the performance of companies is inversely related to the turnover of executives, and also that family businesses have lower turnover of their managers. Keywords: Turnover. Corporate governance. Performance.

scholarly journals Executives’ remuneration and company performance: An evaluation

2011 ◽  
Vol 7 (2) ◽  
pp. 16-31 ◽  
Author(s):  
Mohammad Istiaq Azim ◽  
Joyce Chua Ai Mei ◽  
Samina Rahman
Keyword(s):  
Financial Crisis ◽  
Performance Measures ◽  
Global Financial Crisis ◽  
Pay For Performance ◽  
Stock Exchange ◽  
The United States ◽  
Company Performance ◽  
Executive Pay ◽  
The Global Financial Crisis ◽  
The Relationship

Executive pay became a much discussed issue during the recent global financial crisis. Substantial research has been done in the United States and United Kingdom, while research in Australia is still limited, especially in terms of using the data for the financial crisis. This paper will investigate the relationship between Australian executives’ remuneration and their companies’ performance during the global financial crisis. Two approaches were used to examine the relationship: firstly, an investigation of the pay-for performance relationship that existed during the global financial crisis; and secondly, checking the robustness test by using one year before-and-after data. The sample is taken from the Top 200 companies from the Australian Stock Exchange (ASX) list for 2007 and 2008. In order to achieve a better understanding of this relationship, a conceptual model has been developed. Results show that Australia’s business reward system is quite effective because executives’ remuneration were reduced by their respective companies when they underperformed during this particular crisis. Overall, this study concludes that there is a positive and significant relationship between executives’ remuneration and company performance during the global financial crisis, with higher sensitivity to market-based performance measures than accounting-based performance measures.

scholarly journals Cryptocurrency: Towards Regulating the Unruly Enigma of Fintech in Nigeria and South Africa

2021 ◽  
Vol 24 ◽  
pp. 1-38
Author(s):  
Festus Ukwueze
Keyword(s):  
South Africa ◽  
Legal Status ◽  
Global Financial Crisis ◽  
The United States ◽  
Regulatory Framework ◽  
The European Union ◽  
African Countries ◽  
Virtual Currency ◽  
The Subject ◽  
The Global Financial Crisis

One of the most modern inventions of financial technology (FinTech) since after the global financial crisis of 2008 is the crypto or virtual currency/asset. Since the creation of the first cryptocurrency, the Bitcoin, in 2009, it is estimated that over five thousand variants of the Bitcoin and other cryptocurrencies have emerged. Virtual currencies have become widespread across the globe but their legal status and uses in various countries have remained uncertain. They have been variously classified as currencies, securities, properties, assets, commodities and tokens, and used as means of exchange but are not legally recognised as legal tender. In many jurisdictions their emergence was greeted with scepticism and express or tacit rejection by financial and securities markets regulators, but over time, owing to their increasing popularity, characteristics, positive and negative potentials, there has been a gradual shift towards their formal recognition and regulation. Regulatory authorities in many countries are now grappling with designing appropriate policy and regulatory framework for the crypto phenomenon. This paper interrogates the current legal status and efforts to regulate cryptocurrencies in two leading African nations, Nigeria and South Africa, and highlights the challenges of designing an appropriate regulatory framework for this enigmatic technology. The paper adopts the doctrinal legal research methodology, employing the descriptive, analytical, and comparative approaches. It follows a structured review and analysis of relevant extant legislation on currencies and securities in the countries to ascertain whether they cover cryptocurrencies. It then compares the current position of the law on the subject in the two countries. Bearing in mind that it may not be possible to totally ban dealing in cryptocurrencies, the paper concludes that regulation has become imperative. Drawing from the position on the subject in more developed nations, the United States of America (US) and the European Union (EU), this paper proposes a model of regulation of virtual currency not only for Nigeria and South Africa but also for other African countries.

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