scholarly journals Corporate governance: Theories, mechanisms and the case of oil and gas exporting developing countries

2021 ◽  
Vol 18 (3) ◽  
pp. 86-103
Author(s):  
Arash Faizabad ◽  
Mohammad Refakar ◽  
Claudia Champagne
Keyword(s):  
Developing Countries ◽  
Corporate Governance ◽  
Voluntary Disclosure ◽  
Oil And Gas ◽  
Governance Mechanisms ◽  
Governance Practices ◽  
External Governance ◽  
Low Levels ◽  
Conclusion Section

This paper reviews the literature on the quality of corporate governance practices in the oil and gas exporting developing countries (Russia, Venezuela, Nigeria, the MENA, and the GCC countries). We investigate if the internal and external governance mechanisms function efficiently in these countries. The findings of the reviewed literature show that the quality of corporate governance practices in the countries of our focus is not efficient at internal and external levels. Regarding the internal mechanisms, weak governance mechanisms originate from low transparency levels and give rise to poor voluntary disclosure in the firms. However, some internal mechanisms are more efficient in some of these countries as presented in the conclusion section. Regarding the inefficiency of external mechanisms, all the studied countries share common characteristics with respect to weak legal systems, inefficient law enforcement infrastructures, and low levels of protection for properties, investors, and shareholders especially the minority ones

scholarly journals CORPORATE GOVERNANCE PRACTICES AND ITS EFFECT ON CORPORATE FINANCIAL PERFORMANCE: A PRAGMATIC EVIDENCE FROM MALAYSIA

2020 ◽  
Vol 3 (01) ◽  
pp. 177-194
Author(s):  
Muhammad Tahir Khan ◽  
Haseeb Ur Rehman ◽  
Arsalan Arsalan Hashmi
Keyword(s):  
Corporate Governance ◽  
Good Governance ◽  
Governance Structure ◽  
Governance Mechanism ◽  
Governance Mechanisms ◽  
Corporate Scandals ◽  
Corporate Governance Mechanisms ◽  
Governance Practices ◽  
Financial Scandals ◽  
External Governance

Current corporate governance failure and financial scandals are the reason for the governance mechanism due to ignoring the adoption of governance mechanisms in corporate practices. The main objective of the paper is to investigate the association between governance mechanism corporate performances based on extant literature and to put a light on the current governance mechanism in the Malaysian firms. This paper emphasizes the compliance of governance mechanism and the role of MCCG in improving the performance of corporate firms. This paper highlights the issues, current corporate scandals, and failure of corporate governance mechanisms in the first and second decades of the 21st century. Various scandals and misconduct are discussed to report the problems allied to corporate governance. This paper addresses the various corporate governance theories, models, and good governance structure. The internal and external governance mechanisms have been discussed in detail to put a light on its influence on corporate performance

scholarly journals Quality of financial reporting under IFRS and corporate governance influence: Evidence from the Greek banking sector during crisis

2019 ◽  
Vol 8 (4) ◽  
pp. 8-20
Author(s):  
Panagiotis Ballas ◽  
Alexandros Garefalakis ◽  
Christos Lemonakis ◽  
Vassiliki Balla
Keyword(s):  
Economic Growth ◽  
Corporate Governance ◽  
Financial Reporting ◽  
Financial Stability ◽  
Global Financial Crisis ◽  
Debt Crisis ◽  
Financial System ◽  
Positive Contribution ◽  
Governance Practices

The financial system consists, without doubt, one of the most important determinants of the world national economies, which undergoes numerous changes and challenges with major impact on the economic growth prospects of a country. A healthy financial system is the steam engine of the economy, a major source for economic growth through which capitals are attracted for investments; hence, it is regarded as a trustee of financial stability. Given the difference in structure and function of the financial sector in various countries, we investigate the extent to which the implementation of International Financial Reporting Standards (IFRS) accompanied by Corporate Governance practices affected the quality of financial and narrative reporting offered within published statements of Greek banks for the period from 2008 to 2011. The originality of the work lies at the fact that it focuses on Greek financial institutions for a period that incorporates both the burst of global financial crisis and the beginning of the Greek sovereign debt crisis making inferences on quality of reporting as a result of IFRS and Corporate Governance practices adoption. Our analysis revealed the positive contribution of both of the above categories of variables to the accuracy and quality of the information offered to stakeholders.

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.

scholarly journals Corporate Governance And Voluntary Disclosure In France

2013 ◽  
Vol 29 (2) ◽  
pp. 561 ◽  
Author(s):  
Carlos P. Barros ◽  
Sabri Boubaker ◽  
Amal Hamrouni
Keyword(s):  
Corporate Governance ◽  
Voluntary Disclosure ◽  
Audit Committee ◽  
Audit Quality ◽  
Annual Reports ◽  
Managerial Ownership ◽  
Board Meeting ◽  
External Audit ◽  
Listed Firms ◽  
Governance Practices

This paper investigates the effect of corporate governance practices on the extent of voluntary disclosure in France. Using a panel of 206 non-financial French listed firms during the period 20062009, we find evidence that voluntary disclosure in annual reports increases with managerial ownership, board and audit committee independence, board meeting frequency, and external audit quality. We also find that frequency of audit committee meetings and diligence of board and auditing are associated with decreased disclosure. Additional findings show that larger, more profitable, and less indebted firms have greater voluntary disclosure.

The association between disclosure of forward-looking information and corporate governance mechanisms

2014 ◽  
Vol 29 (7) ◽  
pp. 578-595 ◽  
Author(s):  
Basil Al-Najjar ◽  
Suzan Abed
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Annual Reports ◽  
Governance Mechanisms ◽  
Cross Sectional ◽  
Content Type ◽  
Corporate Governance Mechanisms ◽  
Computerized Content Analysis ◽  
Forward Looking

Purpose – This paper aims to witness the importance of corporate governance mechanisms and investigates the relationship between the quality of disclosure of forward-looking information in the narrative sections of annual reports and the governance mechanisms for non-financial UK companies. Design/methodology/approach – Computerized content analysis using QSR NVivo 8 is used to measure the extent of forward-looking information in the narratives of the annual reports for 238 companies listed in the London Stock Exchange. Cross-sectional regression analysis is used to examine the impact of the corporate governance mechanisms on forward-looking information. Findings – The results show that board size and the independence of the audit committee are associated with the level of voluntary disclosure of forward-looking information. Research limitations/implication – One limitation of this study is that in controls for the effect of the financial crisis period, by selecting a representative year for a five-year period, 2006. The authors argument in using this year is based on the fact that the main variables of interest do not vary significantly with time, the cross-sectional analysis of the selected period will provide a fair view of the last five year-period. Practical implications – The authors report the importance of some governance practices in the UK, such as the role of the board members as well as the importance of audit committee independence. Originality/value – This paper contributes to the literature by using computerized content analysis to examine the relation between corporate governance mechanism and disclosure quality of forward-looking information using sample of companies before financial crisis period. The authors also examine governance mechanisms that are under-researched in the field of forward-looking disclosure.

Exploring the relation between corporate reporting and corporate governance effectiveness

2017 ◽  
Vol 15 (3) ◽  
pp. 347-366 ◽  
Author(s):  
Maali Kachouri ◽  
Anis Jarboui
Keyword(s):  
Corporate Governance ◽  
Equation System ◽  
Business Community ◽  
Content Type ◽  
Information Transparency ◽  
Corporate Reporting ◽  
Simultaneous Equation System ◽  
Governance Effectiveness ◽  
Governance Practices

Purpose The purpose of this paper is to investigate the relationship between corporate governance effectiveness and information transparency. Hence, this paper seeks to extend prior information transparency research. Design/methodology/approach This study uses a sample of 28 non-financial listed Tunisian companies and covers an eight-year period from 2006 to 2013. To test the hypotheses of this research, a simultaneous equation system model was applied. Findings The results obtained show that, for the Tunisians companies, corporate governance practices have a significant positive effect on information transparency. The current study also provides evidence that pertinent information can improve corporate governance index. Research limitations/implications The findings may be of interest to the academic researchers, practitioners and regulators who are interested in discovering the quality of corporate governance practices in Tunisian context. Practical implications The findings of this study can help Tunisian regulators in creating corporate governance disclosure requirements. The findings also provide the African business community insights concerning the quality of corporate governance and of corporate reporting. Social implications This research helps also to inform regulators about the benefits of disclosure more information to investors and to the firm. For instance, how the information can be a source of transparency and stability in the firms what and favors the social environment of the firms. Originality/value This paper extends the existing literature by examining the causal relationship between corporate governance and information transparency.

Governance of Financial Institutions

2018 ◽  
Author(s):  
Guler Aras
Keyword(s):  
Corporate Governance ◽  
Financial Institutions ◽  
Capital Markets ◽  
Financial Services ◽  
Good Governance ◽  
Governance Mechanisms ◽  
Corporate Governance Mechanisms ◽  
Governance Practices ◽  
The 2008 Financial Crisis ◽  
Sustainable Economic Growth

Corporate governance is a central issue in business and economics. However, governance in financial institutions is more complicated than in other fields because of the nature of financial services and instruments. Financial organizations are similar to other businesses in terms of their purposes of establishment, but confidence in management and complex risk structures are more important in financial organizations than in other businesses. In financial institutions, there are various areas in which problems arise that are related to corporate governance, including the agency problem and stakeholder protection. The importance of good governance for sound performance of financial institutions was reconfirmed during the 2008 financial crisis, raising the need to understand the agency problems and the efficiency of various corporate governance mechanisms in mitigating them. International organizations, such as the Organisation for Economic Co-operation and Development, the Basel Committee, the International Finance Corporation, and the International Organization of Securities Commissions, have been working with regulators and policy makers to improve corporate governance practices both in nonfinancial and financial institutions. Corporate governance, especially in financial institutions, is essential in guaranteeing a sound financial system, capital markets, and sustainable economic growth. Governance weaknesses at financial institutions can result in the transmission of problems across the finance sector and the economy. Consequently, the effectiveness of governance mechanisms of financial institutions and capital markets after financial crises had significant importance in a period that witnessed an intensive discussion of corporate governance issues with new regulations and the related academic works.

scholarly journals Towards a More Transparent Disclosure for Corporate Sustainability: Focusing on the Regulation of Unfaithful Disclosure Designation

2019 ◽  
Vol 11 (22) ◽  
pp. 6460
Author(s):  
Jaehong Lee ◽  
Eunjoo Cho ◽  
Jong Sung Park
Keyword(s):  
Corporate Governance ◽  
Stock Market ◽  
Voluntary Disclosure ◽  
Fixed Effects ◽  
Corporate Sustainability ◽  
Management Forecasts ◽  
Fixed Effects Regression ◽  
Nonfinancial Firms ◽  
Mediation Modeling

This study explored the effect of corporate governance on disclosure transparency, coming from the changes of the largest shareholder and the designation as an unfaithful disclosure firm. In addition, the study verified whether this designation on a firm increases voluntary disclosure level the following year. According to results of analyzing nonfinancial firms listed in the Korea stock market from 2009 to 2017, the more frequently the largest shareholder changed in the recent three years, the significantly higher the possibility of the firm in being designated as an unfaithful disclosure firm. For firms that were designated as unfaithful disclosure firms, voluntary disclosure significantly increased the following year. These results were strengthened by the addition of several more analyses including quality of management forecasts, consideration of fixed-effects regression and the mediation modeling. These results imply the necessity for the supervision of authorities to take caution, while it shows the effectiveness of the unfaithful disclosure designation regulation in improving disclosure transparency.

Choice of governance structure and earnings quality

2016 ◽  
Vol 29 (4) ◽  
pp. 372-390 ◽  
Author(s):  
Pamela Kent ◽  
Richard Anthony Kent ◽  
James Routledge ◽  
Jenny Stewart
Keyword(s):  
Cluster Analysis ◽  
Corporate Governance ◽  
Firm Size ◽  
Design Methodology ◽  
Best Practice ◽  
Earnings Quality ◽  
Governance Structure ◽  
Governance Mechanisms ◽  
Content Type

Purpose The purpose of this paper is to examine the effectiveness of voluntary governance mechanisms in Australia. Design/methodology/approach This study identifies similar choices of corporate governance by Australian firms and tests the effectiveness of the choices made based on the earnings quality of reported firms. Cluster analysis is conducted using governance best practice variables, firm size and an earnings quality variable. Findings This paper’s results support the voluntary governance approach for smaller firms, but suggest that mandatory governance requirements could be beneficial for larger firms. Evidence suggests that a benefit accrues for larger firms with the adoption of governance best practice. Cluster analysis indicates that larger firms tend to exhibit higher levels of adoption of governance best practice than smaller firms. Originality/value This paper adds to the literature by providing important information regarding the suitability of adoption of voluntary governance mechanisms in Australia.

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