scholarly journals The relationship between board characteristics and firm financial performance in Malaysia

2016 ◽  
Vol 14 (1) ◽  
pp. 259-268 ◽  
Author(s):  
Sin Huei Ng ◽  
Boon Heng Teh ◽  
Tze San Ong ◽  
Wei Ni Soh
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Voluntary Disclosure ◽  
Random Effect ◽  
Board Size ◽  
Return On Equity ◽  
External Auditors ◽  
Board Characteristics ◽  
Firm Financial Performance ◽  
The Relationship

Corporate governance has drawn attention of investors and government after the incidence of financial crisis world- wide since the late 90’s. Despite that reforms of corporate governance have been in place in Malaysia, voluntary disclosure of corporate governance has yet to proof its impact on the financial performance of the companies. This study examines the relationship between corporate governance attributes and firm financial performance in Malaysia. The relationship between board characteristics (board tenure, board size and CEO duality) were analyzed to investigate their correlation with firm financial performances. A total of 100 public listed companies were randomly selected from Bursa Malaysia for the year 2009 to 2013. Random effect panel data regression was obtained by using Stata. This study finds that board size, board tenure were significant to Return on Equity (ROE) and Return on Assets (ROA). However, firm size has no significant relationship with firm financial performance. It is recommended that apart from including more variables as controlling effects on firm financial performance and examining few industries as sample, it is also good to examine the correlation between board characteristics and corporate governance variables (foreign listings, equity analysis, external auditors, leverage ratios, dividend policy, etc.) on one hand, and ownership structures on the other hand, that have significant impact on firm financial performance.

Impact of corporate governance on financial performance of sugar sector firms listed in Pakistan stock exchange

2019 ◽  
Vol 12 (2) ◽  
Author(s):  
Muhammad Wasim Jan Khan ◽  
Usman Saeed
Keyword(s):  
Developing Countries ◽  
Corporate Governance ◽  
Financial Performance ◽  
Firm Size ◽  
Stock Exchange ◽  
Balance Sheet ◽  
Board Size ◽  
Return On Equity ◽  
Firm Financial Performance ◽  
Relationship Of

Corporate governance is considered as environment of trust, set of processes, policies and laws affecting the way corporations are administrated and directed. The previous literature in context of the corporate governance relationship with firm financial performance shows controversial findings; similarly literature shows lack of studies in context of developing countries as Pakistan. Therefore, this research explores the relationship of the corporate governance and the firm financial performance in context of developing country as Pakistan. The data has been collected from the sugar sector listed in KSE (Pakistan Stock Exchange), 20 corporations are selected as sample from sugar sector on basis of outstanding shares. Corporate governance taken as independent variable and measured as CEO biformity (CB), board size (BS), firm age (FA), firm size (FS). Financial performance of firms taken as dependent variable and measured as return on asset (ROA), return on equity (ROE), net profit margin (NPM). Data is collected for period of 2000-2013 from reports of the sugar companies listed in KSE (Pakistan Stock Exchange) issued annually and analysis of balance sheet given by State Bank of Pakistan (SBP). Result shows that CEO biformity significantly affecting firm financial performance. Board size (BS) shows partially significant impact on firm financial performance. Firms age (FA) show partially significant impact on firm financial performance. Firm size (FS) shows partially significant impact on firm financial performance. Therefore, conclusion has been drawn based on the results of analysis that this study adds new knowledge to the existing body of knowledge of corporate governance impact on firm financial performance and in context of developing countries as Pakistan. Keywords: Corporate governance, firm financial performance, sugar sector, Pakistan.

scholarly journals Impact of Corporate Governance on Financial Performance: Karachi Stock Exchange, Pakistan

2016 ◽  
Vol 6 (2) ◽  
pp. 401 ◽  
Author(s):  
Aon Waqas Awan ◽  
Javed Ahmed Jamali
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Audit Committee ◽  
Stock Exchange ◽  
Profit Margin ◽  
Audit Committees ◽  
Board Size ◽  
Good Decision ◽  
Return On Equity ◽  
The Impact

The aim of the research is to understand the impact of corporate governance on financial performance of listed companies on Karachi Stock Exchange Pakistan. Data was collected from forty two companies from different sectors like, insurance, banking, investment banking, and sugar industries. Study includes variables like profit margin & return on equity as a dependent (profitability) and board size, audit committee, annual general meetings & chief executive office (corporate governance). Using Pooled OLS, the result of the study proved those board size and audit committees have positive relationship with Profit margin and Return on Equity, if any independent variable changes it also stimulus the positively changing impact on Return on Equity (ROE) and Audit Committee (AC). This research offers imminent guidelines to the policy and decision makers in any type of firms to take good decision to set their firms hierarchy system.

scholarly journals MEKANISME GOOD CORPORATE GOVERNANCE, LEVERAGE DAN KINERJA KEUANGAN PERUSAHAAN

2018 ◽  
Vol 9 (1) ◽  
Author(s):  
Evi Oktavia
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Boards Of Directors ◽  
Audit Committee ◽  
Stock Exchange ◽  
Secondary Data ◽  
Governance Mechanism ◽  
Financial Industry ◽  
Return On Equity ◽  
Firm Financial Performance

The purpose of this research is to explain an empirical evidence about the effect of GoodCorporate Governance (GCG) mechanism and leverage on financial performance, and definewhich of the most important variables having powerful impact on the firm financial performance.Good Corporate Governance mechanism measured by using board gender, board of directors,board of commissioner, audit committee, and institutional ownership variables. Leveragemeasured by using Debt to Equity Ratio (DER) variable, while financial performance measuredby using Return on Equity (ROE) variable. This research is using secondary data, such as thefinancial report, idx statistic report, and other related information of financial industry listed inIndonesia Stock Exchange for the period of 2011 to 2015. The sample used in this research were23 companies which selected by using purposive sampling method. In this study, panel dataregression methods have been conducted to explain the effect of GCG and leverage on the firmfinancial performance.The results show that board gender has a positive and significant effect on the firmfinancial performance. Meanwhile, boards of directors, board of commissioner, audit committeeand leverage haveno significant effect on the firm financial performance. Moreover, institutionalownership has a positive effect and no significant on the firm financial performance.

scholarly journals Relation of Corporate Governance with Financial Performance

2014 ◽  
Vol 40 ◽  
pp. 35-40
Author(s):  
Naveed Ahmad ◽  
Nadeem Iqbal ◽  
Muhammad Sulaman Tariq
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Audit Committee ◽  
Insurance Industry ◽  
Board Independence ◽  
Positive Direction ◽  
Ceo Duality ◽  
Return On Equity ◽  
Firm Financial Performance

The intention of the work is to prove that corporate governance is essential to uninterrupted operation of any corporation, while more consideration to the process such that governance. Hence it is transparent what is commonly intermediate by corporate governance. This work proves a link with the corporate governance and firm financial performance in insurance industry of Pakistan. It included three variables which are Audit committee independence, board independence and CEO duality for corporate governance. The degree of firm’s performance is limited by return on equity and asset. This work gives a positive direction for exploring this concept.

scholarly journals The Impact Of Corporate Governance on The Financial Performance in Malaysia

2021 ◽  
Vol 5 (1) ◽  
pp. 41-58
Author(s):  
NURFATANAH ABDULLAH
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Firm Size ◽  
Audit Committee ◽  
Committee Meeting ◽  
Board Size ◽  
Firm Financial Performance ◽  
Normality Test ◽  
Lm Test ◽  
The Impact

The aim of this study is to investigate the relationship between corporate governance and firm financial performance in Malaysia. This study is mainly focusing on four sections of corporate governance which are board independent, board size, the frequency of audit committee meeting and firm size. The population of this study is Top 30 firms in Malaysia that are public listed in Bursa Malaysia while for the period, this study focusses on year 2016 to 2019 which is 4 years. This study uses Return on Assets (ROA) to measure the firm effectiveness and efficiency. As for statistical analysis, this study uses E-View to run all the test such as Breusch-Godfrey Serial Correlation LM Test, Hausman Test, Ordinary Least Squared (OLS) method, Autocorrelation, Multicollinearity and Normality Test. According to the results of the analysis, board independent has positive insignificant relationship with firm performances while board size and firm performances have negative and insignificant relationship. As for the frequency of audit committee meeting and firm size, the results display that both variables have negatively significant relationship with the performances of the firm. Apart from that this study use two theory which are Prospect Theory and Agency Theory.

THE EFFECT OF BOARD CHARACTERISTICS ON INTERNET FINANCIAL REPORTING: A META-ANALYSIS STUDY

2019 ◽  
Vol 7 (4) ◽  
pp. 488-492
Author(s):  
Juliana Waromi ◽  
Anis Chairiri ◽  
Etna Nur Afri Yuyetta ◽  
Sri Imaningati ◽  
Syaikhul Falah
Keyword(s):  
Corporate Governance ◽  
Financial Reporting ◽  
Audit Committee ◽  
Meta Analysis ◽  
Board Independence ◽  
Board Size ◽  
Board Characteristics ◽  
Analysis Technique ◽  
The Relationship ◽  
Positive Effect

Purpose of this study: This paper aims to examine the relationship between corporate governance, namely board characteristics and internet financial reporting. Methodology: The method used is a meta-analysis technique developed by Hunter and Schmidt’s (1990) covering 26 previous articles published in 2004-2017. Main Findings: Empirical evidence found that board characteristics represented by board size and board independence have a positive effect on internet financial reporting, while role duality does not correlate. Implications of this study: This paper has important implications for regulators as it reports board size and board independence as important predictor variables to internet financial reporting. The paper is also of interest to investors and companies related to accountability and transparency. Research limitations: In these studies, other characteristics of corporate governance such as audit committee board and ownership structure are not included due to the limited number of studies related to corporate governance and internet financial reporting. Originality/Value: This study extends meta-analysis literature related to corporate governance characteristics on Internet Financial Reporting.

scholarly journals Conceptual Model for Effective Board Composition in the Context of Emerging Markets

2015 ◽  
Vol 8 (1) ◽  
pp. 38
Author(s):  
Madi Almadi
Keyword(s):  
Corporate Governance ◽  
Emerging Markets ◽  
Financial Performance ◽  
Management Practices ◽  
Social Economic ◽  
Board Composition ◽  
Firm Financial Performance ◽  
The Impact ◽  
The Relationship ◽  
Practical Implications

The impact of context has little or no consideration in the mainstream corporate governance literature. The purpose of this paper is to consider social, economic, and political elements of the emerging Saudi Arabian market when developing a multi-theoretical model about the relationship between board composition and financial performance.<strong> </strong>The paper attempts to conceptually inform the conversation about context with regard to board composition and firm financial performance in emerging markets. In particular, it discusses these theoretical feedback loops in conjunction with a proposed research agenda for the field.<strong> </strong>The paper proposes shifting the focus of corporate governance in emerging markets from relying on the predominant Western corporate governance theories to the alignment of those theories with considerations on emerging markets context. Such an approach involves significant implications for corporate governance theories and management practices. The paper describes the conditions in which certain formation of board of directors is composed in the Saudi Arabia may generate a competitive advantage. The consideration of emerging markets context can have implications for society as it may influence firms and governments to improve corporate governance standards and practices<strong> </strong>A literature gap in the corporate governance literature identified in this paper holds theoretical and practical implications. This research will enable comparative studies with other emerging markets, and will provide a conceptual benchmark for future corporate governance research.

scholarly journals Risk Management in Corporate Governance Framework

2021 ◽  
Vol 13 (9) ◽  
pp. 5015
Author(s):  
Hania Rehman ◽  
Muhammad Ramzan ◽  
Muhammad Zia Ul Haq ◽  
Jinsoo Hwang ◽  
Kyoung-Bae Kim
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Emerging Markets ◽  
Financial Performance ◽  
Foreign Ownership ◽  
Board Size ◽  
Governance Framework ◽  
The Relationship

There is a scarcity of literature involving studies about the effect of risk management on the relationship between corporate governance and a firm’s financial performance, especially in emerging markets. The study fills this gap and adds to the existing literature by investigating whether risk management acts as a mediator between corporate governance and the firm’s financial performance. This study found that risk management partially mediates the relationship between board size and financial performance. Our results further indicate that risk management acts as a partial mediator between foreign ownership and financial performance.

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