scholarly journals Directorship, collateralized shares, risk, and performance of Taiwan banking industry

2008 ◽  
Vol 6 (Special Issue 1) ◽  
pp. 57-71
Author(s):  
Yi-Kai Chen ◽  
Lanfeng Kao ◽  
Alan T. Wang ◽  
Ming–Hsuan Hsieh
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Banking Industry ◽  
Stock Exchange ◽  
Securities Market ◽  
Bank Risk ◽  
Taiwan Stock Exchange ◽  
Monitoring Mechanism ◽  
The Board Of Directors ◽  
And Performance

In recent years, considerable concerns have arisen over the issue of corporate governance in banks’ supervision. One of the major issues has been investigated whether the sound mechanism of corporate governance benefits bank risk management and performance. The collateralized shares, serving stocks as collaterals, are one of financial leverage approaches and it is likely to be an incentive for block shareholders to misapply assets due to the deviation between the controlship and the ownership. The objective of this study is to examine whether the attitude of the board of directors toward risk will affect the bank risk and performance. Quarterly data of commercial banks listed either on the Taiwan Stock Exchange or GreTai Securities Market from 1999 to 2007 are examined in this study. The results show that the collateralized shares may have contributed to a lower return due to a higher risk and they are in line with previous studies our results are in line with previous researches. In conclusion, the monitoring mechanism should enforce relatively regulations more strictly to avoid the agency problems. Especially to the insiders of influence such as board of directors or block shareholders, more strictly regulations and the disclosure of relatively information should be necessary. The result will be expected to lead to better understanding of the nature of the collateralized shares and laying the groundwork for realizing that is the collateralized shares worth monitoring. It may provide policy implication for the regulators in the later monitoring requirement.

scholarly journals PENGARUH MEKANISME GOOD CORPORATE GOVERNANCE TERHADAP KINERJA KEUANGAN PADAPERBANKAN YANG TERDAFTAR DI BURSA EFEK INDONESIA (BEI)

2019 ◽  
Vol 7 (1) ◽  
pp. 49
Author(s):  
Mira Diyanty ◽  
Meina Wulansari Yusniar
Keyword(s):  
Corporate Governance ◽  
Linear Regression ◽  
Multiple Linear Regression ◽  
Board Of Directors ◽  
Audit Committee ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Governance Mechanism ◽  
Good Corporate Governance ◽  
The Board Of Directors

<em><span lang="EN-US">The purpose of this study was to analyze the effect of the Good Corporate Governance mechanism on the board of commissioners, the board of directors, the proportion of independent commissioners, the audit committee, CAR on ROA. This study also uses a purposive sampling method for sampling. The analysis test used is multiple linear regression analysis. The population used by companies listed on the Indonesia Stock Exchange in the period 2011 - 2013 and which meet the sample selection criteria. The sample used was 25 companies. Data is collected through secondary data collection in the form of the company's annual report for the period 2011 - 2013 which is published on the Indonesia Stock Exchange. The research hypothesis was tested by multiple linear regression which had met the testing of classical assumptions. The results of the analysis show that the board of commissioners, the proportion of independent commissioners, audit committees, CAR does not significantly influence ROA while the board of directors has a positive and significant effect on ROA.</span></em>

The Effect of Company Size on the Relationship between Corporate Governance and Corporate Performance in the Iraqi Stock Exchange

2021 ◽  
Vol 39 (11) ◽  
Author(s):  
Ghazwan Al-Shiblawi ◽  
Dalal Mahdi ◽  
Mohammed Mahdi
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Significant Relationship ◽  
Corporate Performance ◽  
Stock Exchange ◽  
Institutional Ownership ◽  
Company Size ◽  
Statistical Population ◽  
The Board Of Directors ◽  
The Relationship

The aim of the present study is to assess The Effect of Company Size on the Relationship between Corporate Governance and Corporate Performance in the Iraqi Stock Exchange. The statistical population under study is listed companies of  Iraq Stock Exchange and the number of companies studied in Iraq is 35, from 2015-2019. The results concluded that there is a statistically significant relationship between the change (increase) of institutional ownership and the performance of the company, and this relationship is direct, as well as the relationship between the change (increase) of institutional ownership and the performance of the company. It can change under the influence of the company's size, and this relationship is negative, meaning the larger the company's size, the weaker the relationship. At the same time, the existence of a relationship between changing the composition of the members of the Board of Directors and the performance of the company was not supported, as well as between changing (increasing) the independence of the Board of Directors and the performance of the company, in addition to the relationship between changing the composition of the Board of Directors. The independence of the Board of Directors and the performance of the company is not affected by the change in the size of the company

Corporate Governance and Risk Management on Listed Banks, The Tanzania Perspective

2021 ◽  
Vol 8 (1) ◽  
pp. 27
Author(s):  
Erick Lusekelo Mwambuli ◽  
Avitus Mwebembezi Dominick
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Board Of Directors ◽  
Ownership Structure ◽  
Management Practices ◽  
Stock Exchange ◽  
Management Approach ◽  
Financial Risks ◽  
The Board Of Directors

The study was to assess on corporate governance and risk management in Tanzania. The study was guided by three objectives which were to assess if transparency, disclosure and audit have significant effect on risk management of the firm, to assess if the board of directors have significant effect on risk management of the firm and evaluate if the ownership structure have significant effect on risk management of the firm. Furthermore, we assess how corporate governance and particularly board of directors, ownership structure, transparency disclosure and audit can affect risk management practices in the context of Dar es Salaam stock exchange listed banks. By the use of a content in analysis approach, the level of exposing the risks in terms of likelihood, consequences of such risk and the strategies used for managing that risk were identified for each kind of risk by using attributes. The results show that corporate governance is related to board of directors, ownership structure, transparency, disclosure and audit play a positive significant and crucial role in establishing an integrative risk management approach. The results from data collected demonstrate that corporate governance has positive significant effect in determining the the good quality of risk management through the level of risk-taking in decisions, especially in terms of financial risks management.

scholarly journals PENGARUH MEKANISME CORPORATE GOVERNANCE TERHADAP KINERJA KEUANGAN PERUSAHAAN KELUARGA DI INDONESIA

2020 ◽  
Vol 10 (1) ◽  
pp. 1
Author(s):  
Adhitya Rechandy Christian Santoso
Keyword(s):  
Corporate Governance ◽  
Data Analysis ◽  
Board Of Directors ◽  
Sampling Method ◽  
Stock Exchange ◽  
Return On Assets ◽  
The Board Of Directors ◽  
Relationship Of ◽  
The Relationship ◽  
Positive Effect

This study discusses the application of corporate governance to the performance of family companies in Indonesia. The relationship of corporate governance in this study was proxied with an independent board of commissioners, the size of the board of directors, and the size of the audit board. The measurement of the financial performance of this study uses Return On Assets (ROA) with a sample of research companies listed on the Indonesia Stock Exchange in the 2014-2018 period.The sampling method in this study uses purposive sampling and data analysis using multiple linear regression with the help of SPSS 21.The results of data analysis, the proportion of independent commissioners and the size of the board of directors had a significant positive effect on the variable size of the audit board not having a significant effect.

scholarly journals The Effect of Good Corporate Governance Mechanism On The Financial Performance of Banking Companies Listed In Stock Exchange Indonesia 2012-2016

2019 ◽  
Vol 3 (2) ◽  
pp. 273-287
Author(s):  
Desi Pipian Pujakusum
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Board Of Directors ◽  
Audit Committee ◽  
Stock Exchange ◽  
Governance Mechanism ◽  
Return On Assets ◽  
Good Corporate Governance ◽  
The Board Of Directors ◽  
Corporate Governance Mechanism

This study aims to examine the effect of good corporate governance mechanism on the financial performance of banking companies listed on the Indonesian Stock Exchange 2012-2016 period. The corporate governance mechanism is proxied by the size of the board of directors, the size of the board of commissioners, audit committee size, the board of director's education, and the board of commissioner’s education. The company's financial performance is proxied by return on assets (ROA). Samples were taken by using purposive sampling. The total number of samples used in this study amounted to 180 research samples. This study was tested with SPSS 20 program. Data analysis technique used in this research is simple regression analysis.  The results showed that the size of the board of directors, the size of the board of commissioners, and audit comitee size have a significant effect on return on assets. These three factors have a significant effect on return on assets, while the board of commissioners education and the board of director's education have no significant effect on return on assets.

scholarly journals Corporate Governance Independence in the Board of Directors and The Firms Financial Performance: Empirical Analysis of Cement Sector Firms Listed on Pakistan Stock Exchange (PSX)

2021 ◽  
Vol 09 (01) ◽  
pp. 01-24
Author(s):  
Muhammad Noman Ansari ◽  
◽  
Dr. Sayed Fayaz Ahmed
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Board Of Directors ◽  
Stock Exchange ◽  
Agency Cost ◽  
Independent Directors ◽  
Return On Assets ◽  
Return On Equity ◽  
Board Committees ◽  
The Board Of Directors

The corporate governance measures emphasize on presence of independence of the board of directors to bring objectivity and reducing the agency cost; whereas the institutions have the ability, skills and time to supervise the activities of the management and channelize it to better financial performance. The objective of this study is to explore the effect of independence of the board of directors on the financial performance of the firms. The independence was gauged by number of independent directors and non-executive directors, chairing of board committees by independent directors, institutional holding in the firm, and presence of institutional directors on the board. The financial performance of the firm is gauged using the return on equity (ROE) and return on assets (ROA). The corporate governance and financial performance data comprising of 75 firm years from 2014 to 2018 of the firms listed in the cement sector of the Pakistan Stock Exchange (PSX) were selected. GLM regression was performed to study the relationship between the variables. The results suggest that the majority of independence on the board of directors do not affect the financial performance of the firm; the independence in the board committees negatively affects the financial performance, whereas the presence of institutional holding and director in the firm does not have any effect on the performance of the firm. The study will provide a basis for future studies to find the association that independence can bring objectivity, reduce agency cost, and affect the performance of the firm.

scholarly journals Analisis Struktur Kepemilikan dan Good Corporate Governance terhadap Manajemen Laba pada Perusahaan di Bursa Efek Idonesia

2021 ◽  
pp. 220-225
Author(s):  
Jova Yolanda ◽  
Dian Efriyenti
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Board Of Directors ◽  
Audit Committee ◽  
Stock Exchange ◽  
Management Practice ◽  
Institutional Ownership ◽  
Audit Committees ◽  
Good Corporate Governance ◽  
The Board Of Directors

Earnings management practice is the decision to choose a particular accounting method that can achieve the goal of increasing reported profits or reducing investment losses. Misappropriation of financial statements by management can affect the amount of reported income. This study aims to determine whether ownership structure and good corporate governance have a significant influence on earnings management. The study was conducted on pharmaceutical sub-sector companies listed on the Indonesia Stock Exchange (IDX) in a row for the 2016-2020 period. The sample technique used is purposive sampling, so as many as 7 samples of companies are used. The data testing method uses multiple linear analysis. The results of the data test show that partially institutional ownership has a negative and significant effect on earnings management, independent commissioners, the audit committee, and the board of directors has a negative but not significant effect on earnings management. Simultaneously the results state that institutional ownership, independent commissioners, audit committees, and the board of directors have an effect but not significantly on earnings management.

scholarly journals Pengaruh Corporate Governance Terhadap Pemilihan Auditor Eksternal (Studi Empiris pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia Tahun 2015-2017)

2019 ◽  
Vol 7 (1) ◽  
pp. 1453
Author(s):  
Yelsa Yulia Efwita ◽  
Erinos NR
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Audit Committee ◽  
Stock Exchange ◽  
Secondary Data ◽  
Manufacturing Companies ◽  
External Auditors ◽  
The Board Of Directors ◽  
Big Four ◽  
Selection Of

The purpose of the research is to know the corporate governance that is proxied by the board of commissioners, the effectiveness of the audit committee and the board of directors on the selection of external auditors. This study uses secondary data from the company's annual report for 2015-2017. The sampling method in this study used purposive sampling with a sample of 67 manufacturing companies listed on the Indonesia Stock Exchange in 2015-217. The analysis used in this study is logistic regression analysis. The results showed that the board of commissioners, the effectiveness of the audit committee had a significant positive effect on the selection of external auditors, while the board of directors did not influence the selection of quality external auditors.Keywords: auditor selection, big four, board of commissioners, board of directors

scholarly journals Developments in the european banking industry

2009 ◽  
Author(s):  
Μαρία-Ελένη Αγοράκη
Keyword(s):  
Corporate Governance ◽  
Banking Industry ◽  
Board Structure ◽  
Governance System ◽  
Firm Financial Performance ◽  
Governance Challenges ◽  
The Board Of Directors ◽  
European Banking ◽  
European Banks ◽  
And Performance

Corporate governance has become a leading topic of research, considering its importance as an implement for transparency in financial markets and corporations. On the other hand, the role of the banks is fundamental in any economy that urges for strong corporate governance. Banks are “special” financial institutions posing unique corporate governance challenges. However, very little attention has been paid to the corporate governance of banks. Recent scandals in the financial sector have brought corporate governance at the forefront of academic and supervisory attention. Banks’ versatile role in the economic system has caught regulatory and supervisory interest around the world in an effort to inspire high quality corporate governance standards. Board structure, in the sense of board size and composition, and its impact on corporate performance constitutes an indispensable and, at the same time, prevalent theme of the corporate governance discussion. This thesis examines corporate governance issues in the European banking industry. More specifically, it examines the relationship between board structure and performance, on a sample of 57 large European banks, over the period 2002-2006. The board structure mechanisms applied, are the size of the board of directors and the percentage of non-executives on the board. In addition, this study employs different measures of firm financial performance both market-based and accounting based. Control variables for the bank size and risk as well as for the different corporate governance system are included in the models. The empirical analysis also incorporates a number of bank-specific variables. […]

scholarly journals Pengaruh Good Corporate Governance, Reputasi Underwriter Dan Roa Terhadap Underpricing Tahun 2016-2019

2021 ◽  
Vol 17 (1) ◽  
pp. 27
Author(s):  
Jazzlin Marvella Gunawan ◽  
Kazia Laturette
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Stock Exchange ◽  
Secondary Data ◽  
Secondary Market ◽  
Financial Variables ◽  
Good Corporate Governance ◽  
The Board Of Directors ◽  
Negative Effect ◽  
High Level

One of the phenomena that occur in Indonesia capital market is underpricing. The underpricing phenomenon occurs when IPO shares are priced lower in the primary market than the closing price on the secondary market. The high level of underpricing can be detrimental to the company because the additional capital obtained through the IPO is not optimal, while the beneficiaries are investors because they get the initial return. This study purpose was to examine the influence of the components of Good Corporate Governance which include the board of commissioners, the independent board of commissioners, the board of directors and ownership concentration, non-financial variables, namely underwriter reputation and financial variables, namely Return On Assets (ROA) on underpricing. Samples were taken using the purposive sampling method. The number of samples finally used was 123 companies from all company sectors that conducted IPOs on the Indonesia Stock Exchange in the 2016-2019 period and experienced underpricing. This study used secondary data obtained from the prospectus, annual report, e-bursa and IDX Factbook in 2016-2019. The results of the multiple linear regression test show that variables including the board of commissioners, independent board of commissioners, board of directors and ROA have a significant negative effect on underpricing which means the larger/higher these variables can minimize underpricing. While the concentration of ownership and underwriter’s reputation did not influence underpricing.

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