scholarly journals An empirical analysis of corporate governance impact on outreach of microfinance institutions (MFIs)

2015 ◽  
Vol 13 (1) ◽  
pp. 8-14 ◽  
Author(s):  
Sujani Thrikawala ◽  
Stuart Locke ◽  
Krishna Reddy
Keyword(s):  
Corporate Governance ◽  
Poor People ◽  
Sri Lankan ◽  
Microfinance Institutions ◽  
Significant Relationships ◽  
Good Corporate Governance ◽  
Governance Practices ◽  
International Donor ◽  
The Impact ◽  
Unbalanced Panel Data

This study examines the impact of corporate governance practices of microfinance institutions (MFIs) on outreach to the poor people in Sri Lanka by using three outreach variables: Breadth of outreach, percentage of women borrowers and depth of outreach. Data for 54 MFIs are analysed using regression analysis of unbalanced panel data from 2007 to 2012. The findings of this study revealed several significant relationships: Breadth of outreach in Sri Lankan MFIs improve when they have a female chair on the board but decreases when they have more female directors and client representation on the board, and female borrowers get more loans when the firm has women representation and international/donor directors on the board, but less loans if they have a female chair. This study provides a direction for future researchers to explore more, and recommend good corporate governance practices for MFIs to reach more poor clients.

CEO behavior and sustainability performance: the moderating role of corporate governance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Amel Kouaib ◽  
Asma Bouzouitina ◽  
Anis Jarboui
Keyword(s):  
Corporate Governance ◽  
Real Estate ◽  
Corporate Sustainability ◽  
Least Square ◽  
Content Type ◽  
Sustainability Performance ◽  
Corporate Sustainability Performance ◽  
Good Corporate Governance ◽  
Governance Practices ◽  
The Impact

PurposeThis paper explores how the tension between a firm's CEO overconfidence feature and externally observable hubris attribute may determine the level of corporate sustainability performance. This work also contemplates the impact of the moderator “corporate governance practices.”Design/methodology/approachThis study uses a sample of 658 firm-year-observations using a sample of European real estate firms indexed on Stoxx Europe 600 Index from 2006 to 2019. To test the developed hypotheses, feasible generalized least square (FGLS) regression is applied.FindingsFindings suggest that a good corporate governance score strengthens the positive effect of the psychological bias (CEO overconfidence) on corporate sustainability performance while it fails to attenuate the negative effect of the cognitive bias (CEO hubris).Research limitations/implicationsThe research provides an overview of the impact of CEO personality traits on the corporate sustainability performance level in the European real estate sup-sector. As corporate governance can have a major impact to control these traits, the authors recommend European real estate companies to improve their corporate governance practices.Originality/valueThis study contributes to the existent literature this gap with two empirical novelties: (1) providing a novel insight into sustainability involvement using a sample of European real estate sup-sector and (2) investigating the moderating effect on the link between CEO psychological and cognitive biases and sustainability performance. This study provides empirical evidence that entrenchment problems arising from CEO hubris would not be mitigated by a good corporate governance practice.

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.

scholarly journals Large pension funds and the corporate governance practices of Brazilian companies

2012 ◽  
Vol 9 (2) ◽  
pp. 76-84 ◽  
Author(s):  
Rodrigo Miguel de Oliveira ◽  
Ricardo Pereira Câmara Leal ◽  
Vinicio de Souza Almeida
Keyword(s):  
Corporate Governance ◽  
Institutional Investors ◽  
Pension Funds ◽  
Brazilian Government ◽  
Good Corporate Governance ◽  
Political Views ◽  
Governance Practices ◽  
Corporate Governance Quality ◽  
The Impact

We do not find any consistent evidence that the presence of the largest Brazilian pension funds as relevant shareholders is associated to higher corporate governance scores by public Brazilian companies. Even though companies with institutional investors as relevant shareholders presented a higher average corporate governance score than other companies, they were also larger and had greater past profitability than other companies, which are common attributes of firms with better corporate governance according to the literature. The impact of Brazilian institutional investors on the corporate governance quality of their investees is either negligible or cannot be captured by the proxies we employed. Finally, we note that these two pension funds may represent the policy and political views of the incumbent Brazilian government and that the actions of their board appointees may or not reflect what is understood as good corporate governance practices.

Analyst Coverage and Corporate Governance of French IPOs

2018 ◽  
Vol 5 (1) ◽  
pp. 22-36
Author(s):  
Benedicte Millet-Reyes
Keyword(s):  
Corporate Governance ◽  
Private Information ◽  
Positive Association ◽  
Institutional Ownership ◽  
Analyst Coverage ◽  
Foreign Investors ◽  
Good Corporate Governance ◽  
Governance Practices ◽  
Institutional Owners ◽  
The Impact

Analyst coverage has been associated with good corporate governance characteristics, especially in countries with weak investor protection. This hypothesis is tested for a sample of French IPOs covering the period 2004-2015. In theory, analysts can provide useful forecasts and recommendations for newly listed companies with a potential for asymmetric information. However, weak corporate governance practices may lead to their reluctance to provide coverage. Logistic regression results clearly indicate that financial analysts are more likely to follow IPOs with large institutional owners. However, this positive association disappears when French institutional shareholdings are combined with two-tier board structures and high debt levels, suggesting that analysts acknowledge the increased potential for inside monitoring and private information channels in these firms. In contrast, the impact of debt becomes positive when combined with foreign institutional ownership, indicating that analysts welcome foreign investors as promoters of good corporate governance practices.

Theoretical Disclosure of Board Independence

2021 ◽  
pp. 213-237
Author(s):  
Aarooj Kiran ◽  
Ayesha Ibrahim
Keyword(s):  
Corporate Governance ◽  
East Asian ◽  
Institutional Context ◽  
Independent Directors ◽  
Board Independence ◽  
Corporate Scandals ◽  
Good Corporate Governance ◽  
Governance Practices ◽  
Code Of Corporate Governance ◽  
The Impact

In the wake of corporate scandals in major companies like Enron, Tyco, and East Asian crisis have emphasized the need of sufficient number of independent directors on the board for proper oversight and functioning of the company. Code of corporate governance recommends the presence of independent directors for better performance of the company. As board independence ensured good corporate governance practices, it is considered that having independent directors on the board is not for better performance but for better governance. In seeking reasonable answer for these arguments, the purpose of this study is to review some of the literature of board independence with respect to corporate governance theories specifically agency theory, stewardship, and resource dependency theory. All these theories have provided mixed evidences in different studies about the impact and importance of board independence and reason behind these mixed evidences might be the institutional context of different organizations in different countries.

The impact of corporate governance on earnings quality: evidence from Peru

2019 ◽  
Vol 9 (4) ◽  
pp. 527-541
Author(s):  
Mauricio Melgarejo
Keyword(s):  
Corporate Governance ◽  
Earnings Quality ◽  
Accounting Information ◽  
Content Type ◽  
Good Corporate Governance ◽  
Self Selection ◽  
Quality Of Accounting Information ◽  
Governance Practices ◽  
The Impact

Purpose The purpose of this paper is to explore whether firms with good corporate governance practices in countries with high levels of political and economic uncertainty, such as Peru, present a higher quality of accounting information. Design/methodology/approach This study uses a multivariate regression analysis to investigate the impact of good corporate governance practices on the quality of accounting information for the firms listed in the Lima Stock Exchange (LSE). Findings Firms included in the Good Corporate Governance Index, in the LSE, present more value relevant, more persistent and more conservative accounting reports. These results hold after controlling for a self-selection bias. Originality/value It is the first paper to explore the impact of good corporate practices on earnings quality in Peru. Also, this study uses a two-state regression methodology to control for the self-selection bias in the sample.

Corporate governance and firm performance in developing countries: evidence from India

2016 ◽  
Vol 16 (2) ◽  
pp. 420-436 ◽  
Author(s):  
Akshita Arora ◽  
Chandan Sharma
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Manufacturing Sector ◽  
Single Measure ◽  
Content Type ◽  
Estimation Techniques ◽  
Good Corporate Governance ◽  
Governance Practices ◽  
Indian Manufacturing Sector ◽  
The Impact

Purpose This study aims to examine the impact of corporate governance on firm performance for a large representative sample. Design/methodology/approach This empirical analysis focuses on a large number of companies covering 20 important industries of the Indian manufacturing sector for the period 2001-2010. Several alternative specifications and estimation techniques are used for analysis purposes, including system generalized methods of moments, which effectively overcomes the problem of endogeneity and simultaneity bias. Findings On one side, the findings indicate that larger boards are associated with a greater depth of intellectual knowledge, which in turn helps in improving decision-making and enhancing the performance. On the other side, the results indicate that return on equity and profitability is not related to corporate governance indicators. The results also suggest that CEO duality is not related to any firm performance measures for the sample firms. Practical implications The outcomes of the analyses advocated that companies that comply with good corporate governance practices can expect to achieve higher accounting and market performance. It implies that good corporate governance practices lead to reduced agency costs. Hence, it is concluded that firms of the developing world can possibly enhance their performance by implementing good corporate governance practices. Originality/value Departing from the conventional system of the prior studies and instead of focusing on a single measure framework, a range of measures of corporate governance and firm's performance variables are used. Also, several alternative specifications and estimation techniques are used for analysis purposes. Furthermore, the sample also covers a large sample of manufacturing firms.

An index to study corporate governance in banks in India

2020 ◽  
Vol 4 (2) ◽  
pp. 40-49 ◽  
Author(s):  
S. Sandhya ◽  
Neha Parashar
Keyword(s):  
Corporate Governance ◽  
Capital Adequacy ◽  
Return On Assets ◽  
Good Corporate Governance ◽  
Net Interest Margin ◽  
Capital Adequacy Ratio ◽  
Dependent Variables ◽  
Governance Practices ◽  
The Impact ◽  
The Relationship

There are many factors that affect corporate governance (CG). It is highly difficult to comprehend corporate governance and define it. Yet, research is imperative to understand the changing specific needs of good corporate governance practices and the impact of such practices. As banks have special governance needs, in this study the corporate governance of banks in India has been studied with the help of corporate governance index (GCI) especially designed for banks. Following the method used by Ararat, Black, and Yurtoglu (2017) to investigate the effectiveness of corporate governance, the index was divided into six sub-indices and to test the index it was used to find the correlation of CG practices with the banks profitability measured in terms of return on assets (RAO) and net interest margin (NIM) as dependent variables. The fixed regression model was run to know the relationship between the sub-indices and the dependent variables. Apart from the CG index, capital adequacy ratio (CAR) and Net NPA ratio were taken as independent variables. A weak correlation was found between CG and ROA and NIM that contributes to the findings of Fallatah and Dickins (2012).

scholarly journals Corporate governance mechanisms and their impact on firm value

2006 ◽  
Vol 4 (1) ◽  
pp. 25-36 ◽  
Author(s):  
Esther B. Del Brio ◽  
Elida Maia-Ramires ◽  
Javier Perote
Keyword(s):  
Corporate Governance ◽  
Firm Value ◽  
Anglo Saxon ◽  
Panel Data Estimation ◽  
Good Corporate Governance ◽  
Corporate Governance Mechanisms ◽  
Corporate Governance Codes ◽  
Governance Practices ◽  
Audit Reports ◽  
The Impact

Previous studies have cast doubts on the effectiveness of corporate governance codes in Continental- European countries, due to their Anglo-Saxon orientation. We chose a Continental-European country with an Anglo-Saxon orientated code, such as Spain, and analyse the effects of the recommendations proposed in the Spanish Olivencia Code on the value of the firm. By using panel data estimation, we analyse the impact on firm’s value of some corporate governance related variables, such as the quality of audit reports, the magnitude of director remuneration, the reporting on director remuneration or the firm size. Results suggest a positive relationship between good corporate governance practices and the value of the company. Moreover, the more transparent the company is and the more favourable audit reports they obtain, the better the firm’s value. We also conclude that it is the degree of compliance with the codes, rather than the mere reporting of whether firms comply or not with them, which increases firm’s value.

scholarly journals PRAKTEK TATA KELOLA DAN KEPEMILIKAN INSTITUSIONAL: BUKTI EMPIRIS DARI SEKTOR INDUSTRI PERBANKAN

2017 ◽  
Vol 20 (2) ◽  
pp. 216
Author(s):  
Perminas Pangeran ◽  
Deresti Salaunaung
Keyword(s):  
Corporate Governance ◽  
Institutional Investors ◽  
Banking Sector ◽  
Institutional Ownership ◽  
Positive Influence ◽  
Good Corporate Governance ◽  
Governance Practices ◽  
Governance Practice ◽  
Corporate Governance Practice ◽  
The Impact

Tujuan dari penelitian ini adalah menguji pengaruh praktek tata kelola perusahaan terhadap kepemilikan institusional pada perusahaan perbankan di Indonesia. Pengujian dilakukan dengan menggunakan skor tata kelola perusahaan terhadap kepemilikan institusional. Penelitian ini dilakukan terhadap 26 bank yang terdaftar di Bursa Efek Indonesia (BEI). Hasil penelitian menunjukkan bahwa praktek tata kelola perusahaan memiliki pengaruh positif terhadap kepemilikan institusional. Hasil penelitian ini mengindikasikan bahwa investor institusional cenderung memegang saham perusahaan dengan tata kelola yang baik dan mendukung usaha Bank Indonesia dalam meningkatkan praktek tata keloladi sektor perbankan.The purpose of this study is to examine the impact of corporate governance practice on institutional ownership at the banking company in Indonesia. The research is carried by looking at the score of corporate governance on institutional ownership. This study was conducted on 26 banks listed on the Indonesia Stock Exchange.The results showed that corporate governance practices have a positive influence on institutional ownership. The results of this study indicate that institutional investors tend to hold shares of companies with good corporate governance and support the efforts of Bank Indonesia in improving governance practices in the banking sector.

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