scholarly journals Determinants of executive board remuneration new insights from Germany

2014 ◽  
Vol 11 (4) ◽  
pp. 96-113 ◽  
Author(s):  
Patrick Velte ◽  
Marc Eulerich
Keyword(s):  
Corporate Governance ◽  
Positive Impact ◽  
Supervisory Board ◽  
Multivariate Regression Analysis ◽  
Listed Companies ◽  
Company Performance ◽  
Related Factors ◽  
Management Board ◽  
Board Compensation ◽  
The Impact

Board remuneration in German listed companies becomes more and more subject of public and political discussion, concerning the presumed lack of transparency and too short-term orientation. Besides the increasing regulatory activity, the arrangement of board compensation constitutes a focal economic issue of current empirical corporate governance research. The purpose of our analysis is to identify factors determining the amount and the structure of board compensation in Germany. Our study of 128 German listed companies for the business year 2011 investigates the impact of company-, performance and corporate governance-related factors on board remuneration by means of a multivariate-regression analysis. The analysis indicates that company size has a positive impact and leverage a negative on management board compensation. Furthermore, ROE and return on total capital, as indicators for performance-related variables, both have a positive impact on the average level of management remuneration. However, the corporate governance-related characteristics as ownership concentration and size of the supervisory board have no significant impact on management board remuneration.

scholarly journals External Pressure, Corporate Governance, and Voluntary Carbon Disclosure: Evidence from China

2019 ◽  
Vol 11 (10) ◽  
pp. 2901 ◽  
Author(s):  
Pinglin He ◽  
Huayu Shen ◽  
Ying Zhang ◽  
Jing Ren
Keyword(s):  
Corporate Governance ◽  
Information Disclosure ◽  
Positive Impact ◽  
Listed Companies ◽  
External Pressure ◽  
General Manager ◽  
Analysis Process ◽  
The Board Of Directors ◽  
Heavy Pollution ◽  
The Impact

This paper uses manually collected data of carbon information disclosure for listed companies, from 2009 to 2015 in China, to measure corporate carbon information disclosure, and it explores the impact of external pressure and internal governance on carbon information disclosure through text analysis and a hierarchy analysis process. The results show that, firstly, the greater the external pressure is, the higher the level of carbon information disclosure will be; that is, when listed companies are state-owned enterprises or in heavy pollution industries, the level of carbon information disclosure is higher. Secondly, the higher the level of corporate governance is, the higher the level of carbon information disclosure will be; that is, when the board of directors is larger, the proportion of independent directors is higher, and the chairman and general manager positions are differentiated, the level of carbon information disclosure is higher. Furthermore, when listed companies are state-owned and in heavy pollution industries, the level of carbon information disclosure is higher; when the chairman and general manager are in the same position (lower governance level), the positive impact of government pressure on carbon disclosure is less significant, the positive impact of external pressure on carbon disclosure is less significant, and the positive interactive impact of government pressure and external pressure on carbon disclosure is less significant. The conclusions of this paper are still robust after Heckman two-stage regression, propensity score matching (PSM) analysis, sub-sample regression, and double clustering analysis.

Corporate Governance Practices and Firm Performance in Emerging Markets: Empirical Insights from India and Gulf Countries

2021 ◽  
pp. 097226292110257
Author(s):  
Waleed M. Al-ahdal ◽  
Faozi A. Almaqtari ◽  
Mosab I. Tabash ◽  
Abdulwahid Abdullah Hashed ◽  
Ali T. Yahya
Keyword(s):  
Corporate Governance ◽  
Positive Impact ◽  
Emerging Market ◽  
Secondary Data ◽  
Listed Companies ◽  
Annual Reports ◽  
Board Structure ◽  
Gulf Countries ◽  
Governance Practices ◽  
The Impact

The purpose of this article is to analyse the impact of corporate governance practices on the performance of listed firms from countries like India and the Gulf countries. This research study relies on secondary data collected from annual reports of 100 companies covering 8 years, from 2010 to 2017, using manual content analysis. Fifty non-financial listed companies from each emerging market were selected; the selection is based on the market capitalization. Findings from countries’ dummy indicate that Indian companies perform better in corporate governance practices than Gulf countries. Moreover, corporate governance practices negatively impact Indian and Gulf countries’ firms’ performance measured by return on assets (ROA), except for governance effectiveness (GE) that has a positive impact. In contrast, corporate governance measured by board structure (BS) is negatively affected by the performance of Indian and Gulf countries’ listed companies measured by Tobin’s Q (TQ), whereas transparency and disclosure (TD), leverage (LEV) and GE have a positive impact. The results have implications for managers and policyholders to understand the corporate governance practices and their relationships with performance. Based on the best knowledge of the authors, this is one of the first studies that addresses the comparison between India and Gulf Cooperation Council (GCC) countries.

scholarly journals The Impact of Corporate Governance on the Financial Distress: Evidence from Pakistani Listed Companies

2017 ◽  
Vol 5 (2) ◽  
pp. 49-53
Author(s):  
Ahmed Hassan Jamal ◽  
◽  
Syed Zulfiqar Ali Shah ◽  
Keyword(s):  
Corporate Governance ◽  
Financial Distress ◽  
Audit Committee ◽  
Positive Impact ◽  
Stock Exchange ◽  
Listed Companies ◽  
Board Composition ◽  
Explanatory Variables ◽  
Governance Practices ◽  
The Impact

This study intends to assess how corporate governance affects the financial distress in non-financial listed companies in Pakistan. Sample of 53 companies was obtained from non-financial institutes listed in Pakistani stock exchange. Regression analysis is used to estimate the impact of explanatory variables including size of board, composition of board, audit committee independence and duality of CEO on the financial distress. The findings show that size of board, composition of board and CEO duality has a positive impact on Z-score of Pakistani listed firms. This implies that better the corporate governance practices in companies, lower will be the financial distress and vice versa.

The antecedents of strategic pricing and its effect on company performance in the case of industrial service firms

2014 ◽  
Vol 28 (5) ◽  
pp. 402-413 ◽  
Author(s):  
Kostis Indounas
Keyword(s):  
Positive Impact ◽  
Mail Survey ◽  
Company Performance ◽  
Service Firms ◽  
Related Factors ◽  
Content Type ◽  
Market Growth ◽  
Strategic Pricing ◽  
Industrial Service ◽  
The Impact

Purpose – The purpose of this research paper is to examine the impact of a number of variables on the adoption of strategic pricing by industrial service firms, and the effect of this adoption on company performance. Design/methodology/approach – Data were collected from 301 industrial service firms operating in seven different service sectors through a mail survey. Moreover, qualitative research through 35 in-depth interviews was conducted. Findings – The findings reveal that market orientation and market growth boost the development of strategic pricing. On the other hand, technological and market turbulence hinder this development, while the overall impact of turbulence is reduced in market-oriented firms. Finally, strategic pricing has a positive impact on company performance in both quantitative and qualitative terms. Research limitations/implications – The adoption of strategic pricing requires attention to a variety of company- and market-related factors, while this adoption can improve various aspects of company performance. The addition of other moderating and mediating effects could certainly provide additional insights. Originality/value – The current study represents one of the first attempts to empirically examine the above topics in an industrial service context.

scholarly journals The differentiated effects of CSR actions in the service industry

2014 ◽  
Vol 28 (7) ◽  
pp. 558-565 ◽  
Author(s):  
Ana B. Casado-Díaz ◽  
Juan L. Nicolau-Gonzálbez ◽  
Felipe Ruiz-Moreno ◽  
Ricardo Sellers-Rubio
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Service Industry ◽  
Positive Impact ◽  
Manufacturing Firms ◽  
Service Firms ◽  
Related Factors ◽  
Content Type ◽  
Good Corporate Governance ◽  
The Impact

Purpose – The purpose of this study is to attempt to explain why the impact of Corporate Social Responsibility (CSR) initiatives may be different and/or more important in service firms compared to manufacturing firms. CSR is becoming a common strategy, hence its extensive research. Central to it is the analysis of the effect of CSR on a firm’s performance, whose outcome depends on firm-specific and industry-related factors. Design/methodology/approach – The event study methodology is applied to all the 248 companies that have ever traded on the Spanish Stock Market between 1990 and 2007. A regression analysis examines potential different effects of CSR on service and goods firms. Findings – The results show that CSR activities have a positive impact on firm performance that is higher for service firms than for manufacturing firms. Actions related to the environment, responsible labor relationships and good corporate governance are especially important in the service context. Research limitations/implications – This research is focused on shareholders’ performance, but it does not consider other stakeholders, such as real consumer behavior or employees’ commitment and productivity. Practical implications – Service firms are likely to gain from focusing on some CSR activities (environment, employees and good corporate governance) and should use their responsible behavior as a valuable tool for public relations and differentiation in the market. Originality/value – This article is the first attempt to empirically test and explain why the relationship between CSR and firm performance may be different (more positive) for service vs manufacturing firms.

Corporate governance and financial distress: Asian emerging market perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Noman Younas ◽  
Shahab UdDin ◽  
Tahira Awan ◽  
Muhammad Yar Khan
Keyword(s):  
Corporate Governance ◽  
Financial Distress ◽  
Positive Impact ◽  
Emerging Market ◽  
Random Effect Model ◽  
Listed Companies ◽  
Z Score ◽  
Content Type ◽  
Governance Practices ◽  
The Impact

Purpose The purpose of this paper is to examine the impact of corporate governance index (PAKCGI) on firm financial distress for a sample of 152 non-financial firms listed at Pakistan Stock Exchange (PSX) over the period from 2003 to 2017. Design/methodology/approach To examine the impact of PAKCGI on financial distress (Altman Z-Score), random effect model is applied. The PAKCGI is a self-constructed index based on the five important factors of corporate governance practices, i.e. board of directors, audit committees, right of shareholders, disclosures and risk management. The binary coding approach is adopted for the construction of PAKCGI. Altman Z-Score model is used as a proxy for financial distress indicator. The absolute value of Altman Z-score has been taken as financial distress indicator. Findings The outcomes of the study indicate a positive impact of PAKCGI on risk of firms’ financial distress. The positive coefficient of PAKCGI implies that the good corporate practices work as catalyst to reduce risk of financial distress in Pakistan. A significant negative impact of block holders on financial distress suggests that the concentrated block ownership take monopolistic decision to protect their interests. It has also been observed that significant positive impact of institutional ownership on financial distress exists in the Pakistani listed firms. Furthermore, this study also reveals that significant negative association between board size, CEO duality and financial distress indicator. Research limitations/implications The findings may encourage the Pakistani listed companies to follow and implement good corporate governance practices, which would lead to increase the confidence of investors, regulators and stakeholders. Originality/value The current study extends the corporate governance literature by examining the relationship between the corporate governance attributes and the financial distress status of Pakistani listed companies. From the academic perspective, this paper adds to the knowledge concerning the association between corporate governance practices and risk of financial distress in emerging markets.

scholarly journals Intellectual Capital Disclosure, Good Corporate Governance and Firm Performance: Asean Cross Country Analysis

2020 ◽  
Vol 5 (5) ◽  
Author(s):  
Juan Barus Gultom ◽  
Itjang. D. Gunawan
Keyword(s):  
Corporate Governance ◽  
Intellectual Capital ◽  
Information Disclosure ◽  
Positive Impact ◽  
Company Performance ◽  
Good Corporate Governance ◽  
Country Analysis ◽  
Asean Countries ◽  
The Impact ◽  
Test Result

This study aims to examine the impact of intellectual capital information disclosure and the application of Good Corporate Governance to the performance of companies in ASEAN countries. This study used a sample of 102 firm-year from 6 ASEAN countries 5 ASEAN countries namely Indonesia, Malaysia, Phlipina, Singapore and Thailand. The test result proves that intellectual capital disclosure in ASEAN able to improve company performance. In addition, this study also proves that the implementation of GCG has a positive impact on the performance of the company's operations in ASEAN. This research also proves that leverage variable has no impact to company performance. Meanwhile, company size has a positive impact on company performance.  

scholarly journals Corporate Governance in Ukrainian Firms: Multiple Model Selections, Their Current Functioning, and Potential Future Problems

2017 ◽  
Vol 42 (4) ◽  
pp. 364-408
Author(s):  
Roman Syvyy
Keyword(s):  
Corporate Governance ◽  
Supervisory Board ◽  
Corporate Law ◽  
Modern World ◽  
Board Structure ◽  
Multiple Model ◽  
Management Board ◽  
Tier System ◽  
Governance Practices ◽  
The Impact

This article explores corporate governance in Ukrainian firms in order to show the parallel application of multiple models of corporate governance within the same business and cultural framework. Ukrainian corporate law is based on a two-tier system, according to which joint-stock companies are governed by two boards: a management board and a supervisory board. Nevertheless, those Ukrainian firms that aim to raise capital on international stock markets and are ready to go public tend to use the uk principles-based model. Since a unitary board structure in public companies is not recognized by Ukrainian law, these firms have to migrate from Ukraine, setting up their centers of corporate governance in foreign jurisdictions. At the same time, recent amendments to the Law on Joint-Stock Companies aimed at enhancing the protection of investors’ rights in Ukraine significantly expanded the legal requirements for corporate governance in public joint-stock companies. The introduction of special statutory obligations along with significantly toughened listing requirements for corporate governance in public joint-stock companies demonstrates the impact of the us rules-based model on Ukrainian corporate governance regulations. Therefore, the governance practices of Ukrainian firms and recent changes in Ukrainian corporate law are evidence of the convergence of corporate governance models in the modern world.

Does gender diversity in supervisory boards affect gender diversity in management boards in Germany? An empirical analysis

2021 ◽  
pp. 239700222199714
Author(s):  
Dennis Fleischer
Keyword(s):  
Fixed Effects ◽  
Structural Equation ◽  
Gender Diversity ◽  
Supervisory Board ◽  
Board Members ◽  
Governance System ◽  
Management Board ◽  
Supervisory Boards ◽  
Gender Quota ◽  
The Impact

Social aspects like gender diversity in the boardroom are becoming increasingly relevant and are a popular topic of public debate in the context of gender equality in business. However, there is little clarity about the potential spill-over effects of gender diversity. Both theory and empirical results have led to ambiguous conclusions with respect to the effect of gender diversity in the supervisory board on gender diversity in the management board. In addition, it is not clear whether the German gender quota legislation positively affects this relationship. This study analyses whether gender diversity in the supervisory board supports the gender diversity of the management board, and whether this relationship is affected by the gender quota legislation, focusing on the unique case of Germany. To cope with endogeneity concerns, this study employs a cross-lagged panel model with fixed effects using maximum likelihood structural equation modelling. The results of the analysis of the impact of the number of female supervisory board members on the number of female management board members do not support the view of positive spill-over effects of gender diversity in the environment of the German two-tier corporate governance system. Furthermore, this study finds no evidence of an effect of the German gender quota on this relationship. JEL Codes G38, M12, M14, M51

Insider Trading Laws and Corporate Governance Impact on Investment Decision

2021 ◽  
Vol 3 (2) ◽  
pp. 126-137
Author(s):  
Sadaf Khan ◽  
Ubaid Ur Rehman
Keyword(s):  
Corporate Governance ◽  
Insider Trading ◽  
Positive Impact ◽  
Investment Decision ◽  
Investment Decisions ◽  
Future Research ◽  
Good Corporate Governance ◽  
Governance Practices ◽  
The Government ◽  
The Impact

This research aims to analyze the impact of insider trading laws and corporate governance on investment decisions. For this purpose, the data of 400 potential and actual investors employed who provided their feedback on a structured questionnaire. When the data is collected, it was cleaned. The normality of data and reliability of items were also checked and within limits. Simple Regression was applied to test hypotheses. It was concluded that the perception of insider trading laws and corporate governance have a positive impact on investment decisions. The study has wide implications and the government and corporation both can be beneficial from its insight and findings, and exercise good corporate governance practices and follow stringent insider trading laws. The study also paves the way for future research.

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