scholarly journals Does good corporate governance lead to better firm performance? Strategic lessons from a structured literature review

2018 ◽  
Vol 15 (4) ◽  
pp. 73-85 ◽  
Author(s):  
Bushra Khan ◽  
André Nijhof ◽  
Rosalien A. Diepeveen ◽  
Daniëlle A. M. Melis
Keyword(s):  
Corporate Governance ◽  
Meta Analysis ◽  
Academic Research ◽  
Company Performance ◽  
Board Diversity ◽  
Good Corporate Governance ◽  
Moderating Factors ◽  
And Performance ◽  
The Relationship ◽  
Ongoing Dialogue

The objective of this paper is to disclose proven relationships between good corporate governance variables and the financial and/or non-financial performance of companies based on a meta-analysis of relevant studies. A meta-analysis was performed by means of academic research published between 2006 and 2016 in the five highest-ranked academic journals according to the Association of Business Schools (ABS) ranking. The relevant academic studies were selected on the basis of the relationship between corporate governance and performance. Our study provides evidence for the correlation between five corporate governance variables (board independence, board diversity, CEO characteristics, remuneration and oversight) and company performance. Furthermore, several mediating and moderating factors influencing the relationship between corporate governance variables and company performance were identified in this meta-study. The overview of corporate governance variables and their relation to company performance serves as input for a better understanding of this relationship and subsequently the ongoing dialogue on enhancing corporate governance in practice.

scholarly journals The effect of industry nuances on the relationship between corporate governance and financial performance: Evidence from South African listed companies

2018 ◽  
Vol 21 (1) ◽  
Author(s):  
Jonty Tshipa ◽  
Leon M. Brummer ◽  
Hendrik Wolmarans ◽  
Elda Du Toit
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
South African ◽  
Resource Dependence ◽  
Stock Exchange ◽  
Listed Companies ◽  
Company Performance ◽  
Johannesburg Stock Exchange ◽  
Good Corporate Governance ◽  
The Relationship

Background: Premised on agency, resource dependence and stewardship theories, the study investigates empirically the existence of industry nuances in the relationship between corporate governance and financial performance of companies listed in the Johannesburg Stock Exchange. Aims: The main objective of the study is to understand the relationship between internal corporate governance and company performance from the perspective of three distinct economic periods, as well as industry nuances, cognisant of endogeneity issues. Setting: South Africa, as an emerging African market, offers an interesting research context in which the corporate governance and financial performance nexus can be examined empirically. Method: A sample of 90 companies from the five largest South African industries, covering a 13-year period from 2002 to 2014 (1170 firm-year observations) was examined with three estimation approaches. Results: Two key trends emerged from this study. First, the relationship between corporate governance and company performance differed from industry to industry. Second, the association between corporate governance and company performance also changes during steady and non-steady periods, which is an indication that the nexus is driven by the state of the global economy and the type of the industry. Conclusion: Evidence from the study suggests that companies should be allowed to optimise rather than maximise their corporate governance options. This finding questioned the approach of the recently published King IV Code of Good Corporate Governance, which requires Johannesburg Stock Exchange-listed companies to ‘apply and explain’ as opposed to ‘apply or explain’ as pronounced by King III Code of Good Corporate Governance.

scholarly journals Corporate Governance and Performance: An Empirical Investigation of Sugar Producing Companies in Kenya

2018 ◽  
Vol 14 (31) ◽  
pp. 240
Author(s):  
Machuki, V.N. ◽  
Rasowo, J.O.
Keyword(s):  
Corporate Governance ◽  
Policy And Practice ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Good Corporate Governance ◽  
Governance Practices ◽  
Improved Performance ◽  
And Performance ◽  
Financial Transactions ◽  
The Relationship

Corporate governance is concerned with the running of an organization in a way that guarantees that its owners or stockholders receive a fair return on their investments while the expectations of other stakeholders are also met. The study sought to examine the relationship between corporate governance practices and performance of sugar producing companies in Kenya. The study intended to establish the corporate governance practices adopted by the companies and the influence of these practices on their performance. Through a cross-sectional survey of 11 companies, data were gathered using a structured questionnaire and analyzed using both descriptive and inferential statistics. The results indicate that all the studied companies practice some form of corporate governance although the degree of adoption differ across them. The study also revealed that board decisions are not influenced by founder members and that it was not common for board members to engage in financial transactions with the companies. The results of regression analysis show that overall, there is a positive and statistically significant influence of corporate governance practices on performance of the sugar producing companies. The study draws a conclusion that a combination of good corporate governance practices is responsible for a large percentage of good performance achieved by the sugar companies. Individual corporate governance practices acting on their own do not always lead to improved performance. The study offers support for theories that anchor performance implications of good corporate governance as well as findings of previous similar studies. Based on the findings of the study, recommendation for policy and practice are made as well as suggestions for further research.

Relationship between sustainable operations practices and performance: a meta-analysis

2017 ◽  
Vol 66 (8) ◽  
pp. 1020-1042 ◽  
Author(s):  
Marina D’Agostini ◽  
Vilmar Antonio Gonçalves Tondolo ◽  
Maria Emília Camargo ◽  
Angela Isabel dos Santos Dullius ◽  
Rosana da Rosa Portella Tondolo ◽  
...  
Keyword(s):  
Design Methodology ◽  
Positive Relationship ◽  
Meta Analysis ◽  
Multidimensional Approach ◽  
Sustainable Operations ◽  
Content Type ◽  
Moderating Factors ◽  
And Performance ◽  
The Relationship ◽  
Practical Implications

Purpose The purpose of this paper is to examine the relationship between sustainable operations practices (SOP) and performance. Design/methodology/approach This study was conducted through a systematic literature review followed by a meta-analysis of correlations. Findings In the results, 14 of the relationships examined showed a positive relationship and 12 the presence of moderators. The study findings indicate that contingency affects the relationship between SOPs and performance. Research limitations/implications The research presented in this paper is mainly limited to databases that were searched. Among the quantitative articles selected from the databases, many did not have the data needed to conduct the meta-analysis, which may have limited the results of this study. Practical implications Using the results of this study, practitioners can become aware of to the occurrence of moderating factors in the relationships, which can range from interference from other practices and variables to characteristics of the organization itself or the market in which organizations operate. Originality/value This study uses a multidimensional approach for both SOP and performance. This approach allowed a more complete and comprehensive result, showing how these SOPs influence the different categories of performance, expanding the understanding of the relationship between practices and performance.

scholarly journals Director Ownership, Governance, and Performance

2013 ◽  
Vol 48 (1) ◽  
pp. 105-135 ◽  
Author(s):  
Sanjai Bhagat ◽  
Brian Bolton
Keyword(s):  
Corporate Governance ◽  
Negative Relationship ◽  
Board Members ◽  
Company Performance ◽  
Sarbanes Oxley ◽  
Significant Negative Relationship ◽  
And Performance ◽  
Director Ownership ◽  
The Impact ◽  
The Relationship

AbstractWe study the impact of the Sarbanes-Oxley Act on the relationship between corporate governance and company performance. We consider 5 measures of corporate governance during the period 1998–2007. We find a significant negative relationship between board independence and operating performance during the pre-2002 period, but a positive and significant relationship during the post-2002 period. Our most important contribution is a proposal of a governance measure, namely, dollar ownership of the board members, that is simple, intuitive, less prone to measurement error, and not subject to the problem of weighting a multitude of governance provisions in constructing a governance index.

scholarly journals CRITICAL STUDY OF OPTIMIZATION OF ISLAMIC CORPORATE GOVERNANCE IMPLEMENTATION TO ACHIEVE COMPANY PERFORMANCE

2019 ◽  
Vol 3 (1) ◽  
pp. 1-32
Author(s):  
Reza Widhar Pahlevi
Keyword(s):  
Corporate Governance ◽  
Agency Theory ◽  
Agency Problems ◽  
Critical Study ◽  
Company Performance ◽  
Islamic Perspective ◽  
Good Corporate Governance ◽  
The Difference ◽  
Operational Activities ◽  
And Performance

Guidelines for Good Corporate Governance an Islamic perspective have a broader context, do notseparate roles and responsibilities in all stakeholders actions under the auspices of Islamic sharia law.There are differences in concepts and perspectives between western perspective (Anglo Saxon andEuropean) Good Corporate Governanceand Islamic perspectives. The difference in the very basic pointof view that Good Corporate Governance is the Islamic perspective comes from tawhid, shari'ah, andthe concept of shura. Islamic Good Corporate Governance guidelines focus on the role of stakeholdersrelated to the company.The development of science that occurs in the perspective of Good Corporate Governance begins onthe basis of agency theory which states that there is a separation between ownership and managementthat has the potential to cause agency problems, ways to overcome agency problems through theimplementation of Good Corporate Governance. Implementation of guidelines for Good CorporateGovernance is an obligation for the company. This is more aimed at the existence of responsibility tothe public (public accountability) relating to the company's operational activities and it is expected thatthe company can comply with the provisions outlined in a positive law. In addition, this is related tothe level of compliance of sharia with sharia principles as described in the Qur'an, Hadith, and Ijma 'ofthe Ulama. Research related to Good Corporate Governance in the Islamic perspective with theachievement of company performance is expected to provide an overview of the Good CorporateGovernance framework that recognizes the rights of stakeholders as determined by law and encouragesactive cooperation between companies and stakeholders to create employee welfare, performance, andcorporate sustainability.Keywords: Islamic Corporate Governance, Agency Theory and Performance

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 Corporate governance and performance: An analysis of Italian listed companies

2020 ◽  
Vol 16 (1) ◽  
pp. 8-18
Author(s):  
Franco Ernesto Rubino ◽  
Giovanni Bronzetti ◽  
Graziella Sicoli ◽  
Maria Baldini ◽  
Maurizio Rija
Keyword(s):  
Corporate Governance ◽  
Performance Management ◽  
Stock Exchange ◽  
Listed Companies ◽  
Governance Structure ◽  
Company Performance ◽  
Accounting Performance ◽  
And Performance ◽  
The Relationship ◽  
The Empirical Analysis

In recent years, both corporate governance and performance management have been subjected to considerable changes. In this dynamic context, it is interesting to study the evolution of the relationship between performance and governance. Does governance still affect performance? The purpose of this paper is to verify the presence and intensity (extent) of the relationship between corporate governance and performance in Italian listed companies by using both accounting and non-accounting performance measures. The purpose of this paper is to investigate the effects of prior firm performance on board composition and governance structure of some companies listed on the Italian stock exchange, analysing how a governance approach influences the performance of sample companies. For the research the methodology used is quantitative and we used regression analysis on a sample of 23 Italian listed companies: mechanical companies and public utilities to find that the company's performance was positively related to the size of the board. The empirical analysis conducted allowed us to verify the hypothesis according to which the increase in Corporate Governance Best Practices influences company performance. However, the results we have received do not allow us to arrive at completely unequivocal interpretations. The results showed we have received do not allow us to arrive at completely unequivocal interpretations; the main limit is the sample size used in this study was relatively small.

scholarly journals The Relationship Between Good Corporate Governance and Performance of Most Liquid Stocks in Indonesia

2020 ◽  
Vol 11 (1) ◽  
pp. 137
Author(s):  
Abdul Karim ◽  
Agus Purwanto
Keyword(s):  
Corporate Governance ◽  
Audit Quality ◽  
Stock Exchange ◽  
Foreign Ownership ◽  
Company Performance ◽  
Positive Effects ◽  
Good Corporate Governance ◽  
Analysis Technique ◽  
New Perspective ◽  
And Performance

The purpose of this study is to analyze the influence of independent commissioners, managerial ownership, foreign ownership, debt, and audit quality on the performance of company shares included in LQ 45 on the Indonesia Stock Exchange. The research sample is LQ 45 companies that issued financial statements as much as 120 companies with analysis technique used is multiple regression with one dependent variable and five independent variables. The results showed that foreign ownership, debt and audit quality have significant and positive effects on company performance. Moreover, the insider share ownership and the composition of independent commissioners were proven to not significantly affect company performance. This finding is practically useful to expand the possibility of foreign ownership, facilitate regulation of debt and quality audit obligations to improve stock performance. This study offers a new perspective on the implementation of good corporate governance in the context of the performance of liquid stocks on the stock exchange.

IMPLEMENTASI KINERJA KEUANGAN TERHADAP NILAI SPIRITUALITAS PRIBADI

2012 ◽  
Vol 16 (3) ◽  
pp. 332
Author(s):  
Whedy Prasetyo
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Annual Report ◽  
Main Concern ◽  
Good Corporate Governance ◽  
Corporate Social ◽  
The Relationship ◽  
Personal Spirituality

Development of financial performance in the application of Good Corporate Governance and Corporate Social Responsibility which affects the values of honesty private individuals, in order to be able to run the accountability, value for money, fairness in financial management, transparency, control, and free of conflicts of interest (independence). The main concern in this study is focused on achieving value personal spirituality through the financial performance and capabilities of Good Corporate Governance (GCG) and Corporate Social Responsibility (CSR) in moderating the relationship with the financial performance of value personal spirituality. This study is a descriptive verifikatif. The unit of analysis in this study was 15 companies in Indonesia with a policy that has been applied through the concept since January of 2008 until now, with the support of the annual report of the company, the company's financial statements, company reports to the disclosure of Good Corporate Governance and Corporate Social Responsibility in the annual report. Overall reports published successively during the years 2008-2011. The results of this study indicate financial performance affects the value of personal spirituality, and for variable GCG obtained results that could moderate the relationship of financial performance to the value of personal spirituality. But for the disclosure of CSR variables obtained results can’t moderate the relationship with the financial performance of personal spirituality.

Team Learning Behaviors and Performance: A Meta-Analysis of Direct Effects and Moderators

2021 ◽  
pp. 105960112110169
Author(s):  
Christopher W. Wiese ◽  
C. Shawn Burke ◽  
Yichen Tang ◽  
Claudia Hernandez ◽  
Ryan Howell
Keyword(s):  
Team Performance ◽  
Team Learning ◽  
Task Complexity ◽  
Meta Analysis ◽  
Sample Type ◽  
Learning Behaviors ◽  
Learning Teams ◽  
And Performance ◽  
The Relationship ◽  
Team Familiarity

Under what conditions do team learning behaviors best predict team performance? The current meta-analytic efforts synthesize results from 113 effect sizes and 7758 teams to investigate how different conceptualizations (fundamental, intrateam, and interteam), team characteristics (team size and team familiarity), task characteristics (interdependence, complexity, and type), and methodological characteristics (students vs. nonstudents and measurement choice) affect the relationship between team learning behaviors and team performance. Our results suggest that while different conceptualizations of team learning behaviors independently predict performance, only intrateam learning behaviors uniquely predict performance. A more in-depth investigation into the moderating conditions contradicts the familiar adage of “it depends.” The strength of the relationship between intrateam learning behaviors and team performance did not depend on team familiarity, task complexity, or sample type. However, our results suggested this relationship was stronger in larger teams, teams with moderate task interdependence, teams performing project/action tasks, and studies that use measures that capture a wider breadth of the team learning behavior construct space. These efforts suggest that common boundary conditions do not moderate this relationship. Scholars can leverage these results to develop more comprehensive theories addressing the different conceptualizations of team learning behaviors as well as providing clarity on the scenarios where team learning behaviors are most needed. Further, practitioners can use our results to develop more guided team-based policies that can overcome some of the challenges of forming and developing learning teams.

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