scholarly journals Large changes in board size, corporate governance and firm value

2009 ◽  
Vol 7 (2) ◽  
pp. 440-450
Author(s):  
Yixi Ning ◽  
Massoud Metghalchi ◽  
Jonathan Du
Keyword(s):  
Corporate Governance ◽  
Empirical Evidence ◽  
Firm Size ◽  
Firm Value ◽  
Board Independence ◽  
Board Structure ◽  
Board Size ◽  
Good Opportunity ◽  
Long Run

We find that substantial changes in board size, either an increase or a decrease of three or more directors at one time, are permanent movements rather than temporary changes, but the large changes are followed by small reversal in the subsequent years. Empirical evidence shows that all types of directors (inside, affiliated, and independent) are strongly affected by board size expansions (or reductions). Large changes in board size provide a good opportunity for a firm to optimize its board structure by increasing board independence and retiring elder directors. Further analysis indicates that such substantial changes in board size are associated with more frequent board meetings, a higher likelihood of CEO transitions, and firm size expansions. However, we find no evidence that large decreases (or increases) in board size add (or destroy) firm value for shareholders in the long run.

scholarly journals PENGARUH KARAKTERISTIK PERUSAHAAN DAN CORPORATE GOVERNANCE TERHADAP INTELLECTUAL CAPITAL DISCLOSURE SERTA DAMPAKNYA TERHADAP NILAI PERUSAHAAN (Studi Empiris Pada Perusahaan Perbankan Yang Terdaftar di Bursa Efek Indonesia Tahun 2014-2018)

2020 ◽  
Vol 14 (2) ◽  
Author(s):  
Riyani Morin ◽  
Linda Y. Hutadjulu ◽  
Aaron M. A Simanjuntak
Keyword(s):  
Corporate Governance ◽  
Firm Size ◽  
Intellectual Capital ◽  
Firm Value ◽  
Audit Committee ◽  
Board Independence ◽  
Firm Characteristics ◽  
Board Size ◽  
Independent Variable

This study aims to analyze the influence of firm characteristics and corporate governance on intellectual capital disclosure and its impact on firm value. This research was conducted again to review the inconsistency of the diversity of the results of previous studies. Firm characteristics are proxied with corporate governance as an independent variable in this study, intellectual capital disclosure is an intervening variable, and firm value as the dependent variable. The results of this study show that firm size has influence on the intellectual capital disclosure. Leverage, profitability, board independence, audit committee, board size do not have influence on intellectual capital disclosure. Intellectual capital disclosure does not have influence on firm value.

scholarly journals TATA KELOLA DAN KINERJA KEUANGAN BADAN USAHA MILIK NEGARA (BUMN) GO PUBLIC PERIODE 2014-2018

2021 ◽  
Vol 10 (1) ◽  
pp. 82-101
Author(s):  
Andika Dwi Pradito ◽  
Axel Giovanni ◽  
Devi Wahyu Utami
Keyword(s):  
Corporate Governance ◽  
Linear Regression ◽  
Financial Performance ◽  
Empirical Evidence ◽  
Audit Committee ◽  
Stock Exchange ◽  
Analytical Tool ◽  
Board Independence ◽  
Government Ownership ◽  
Board Size

Abstrak: Tata Kelola Dan Kinerja Keuangan Badan Usaha Milik Negara (BUMN) Go Public Periode 2014-2018. Penelitian ini bertujuan untuk memberikan bukti empiris mengenai pengaruh tata kelola perusahaan terhadap kinerja keuangan Badan Usaha Milik Negara (BUMN) yang terdaftar di Bursa Efek Indonesia (BEI) selama periode 2014-2018. Sampel penelitian yang memenuhi kriteria berjumlah 12 Badan Usaha Milik Negara (BUMN). Alat analisis yang digunakan adalah regresi linear. Hasil penelitian memberikan bukti mengenai urgensi komite audit dalam tata kelola perusahaan. Penelitian ini juga menunjukan bahwa board size, board independence serta kepemilikan pemerintah tidak memiliki peran dalam menjelaskan variabilitas kinerja keuangan Badan Usaha Milik Negara (BUMN).Kata kunci: Badan Usaha Milik Negara (BUMN), kinerja keuangan, tata kelola perusahaanAbstract: Governance and Financial Performance of State-Owned Enterprises (SOEs) Go Public Period 2014-2018. This study aims to provide empirical evidence regarding the effect of corporate governance on the financial performance of State-Owned Enterprises (SOEs) listed on the Indonesia Stock Exchange (IDX) during the 2014-2018 period. Research samples that met the criteria totaled 12 State-Owned Enterprises (BUMN). The analytical tool used is linear regression. The results of the study provide evidence of the urgency of the audit committee in corporate governance. This study also shows that board size, board independence, and government ownership do not have a role in explaining the variability in the financial performance of SOEs.Keywords: corporate governance, financial performance, state-owned enterprises (SOEs)

Board structure: an empirical study of firms in Anglo-American governance environments

2014 ◽  
Vol 40 (7) ◽  
pp. 681-699 ◽  
Author(s):  
M.I. Muller-Kahle ◽  
Liu Wang ◽  
Jun Wu
Keyword(s):  
Firm Value ◽  
Resource Dependence ◽  
Resource Dependence Theory ◽  
Board Independence ◽  
Board Structure ◽  
Board Size ◽  
Content Type ◽  
The Usa ◽  
The Uk ◽  
The Impact

Purpose – With boards of directors playing both monitoring and guidance roles, the purpose of this paper is to examine the impact of board structure on firm value in large US and UK firms using the lenses of agency and resource dependence theories. Design/methodology/approach – Using a sample of firms in the USA and the UK from 2000 to 2007, the paper conducts a panel data analysis of the impact of board structure on firm value and examine the nuances of different governance environments. Findings – The paper finds distinct differences in the impact of board independence, board size, and outside director busyness on firm value between UK and US firms. Specifically, the paper finds that board independence, board size, and board busyness all have a significant positive impact on firm value in the UK. However, the paper finds no significant relationship between board independence and firm value among US firms. Both board size and board busyness are found to be positively associated with firm value in the USA. Social implications – The paper finds strong support for resource dependence theory in the UK but limited support for agency theory in the USA. Originality/value – This paper takes a multi-country approach to examining the impact of board structure on firm value.

scholarly journals Can board mechanism affect the firm value in Pakistan?

2009 ◽  
Vol 6 (3) ◽  
pp. 308-317 ◽  
Author(s):  
Mian Sajid Nazir ◽  
Shafaqat Ali ◽  
Abdul Haque
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Firm Value ◽  
Board Structure ◽  
Board Size ◽  
Positive Role ◽  
Performance Variables ◽  
Performance Factors ◽  
Governance Indicators ◽  
The Relationship

Corporate governance is, undoubtedly, extremely essential for the performance of the organizations. The structure of corporate ownership has significant impact on the external as well as internal performance factors of firms. The relationship between corporate governance indicators and firm performance has been extensively investigated; however, a little work has been done on how the structure of board can add value to the firm. This paper sheds light on the relationship of some aspects of board structure like board size, board composition, and CEO duality with the performance variables Tobin’s Q and Return on Assets (ROA) by using a sample of 53 firms of cement and sugar sectors of Pakistan for a period of 2005-2007. The results indicate that the firms perform better with moderate board size and the performance is adversely affected if CEO also acts as chairperson of board of directors whereas the external directors can play a positive role for firm performance in Pakistan.

scholarly journals Impact of corporate governance on financial disclosures: Evidence from India

2014 ◽  
Vol 12 (1) ◽  
pp. 874-889 ◽  
Author(s):  
Mehul Raithatha ◽  
Varadraj Bapat
Keyword(s):  
Corporate Governance ◽  
Ownership Structure ◽  
Board Independence ◽  
Board Structure ◽  
Board Size ◽  
Cross Sectional ◽  
Listed Firms ◽  
Disclosure Requirements ◽  
Financial Disclosures

The paper aims at identifying impact of corporate governance variables i.e. board structure (board size, board independence, board activity and board busyness) and ownership structure (foreign promoters holding, institutional shareholding and CEO duality) on financial disclosures made by the Indian firms. Using cross sectional data of 325 listed firms for the financial year 2009-10, we compute financial disclosure score (using 171 checklist points) based on disclosure requirements of accounting standards. We find average disclosure score of 73%, maximum and minimum being 100% and 46% respectively. Our finding support agency theory in terms of monitoring role of board since board size is found to be significant however we do not find any influence of board independence on the disclosures. The study also supports resource dependency theory in terms of outside directorship which might provide exposure to different corporate environment, brings diverse perspectives and knowledge to the directors and this in turn leads to improved disclosures. We also support the notion that having foreign promoter shareholding improves disclosures

Corporate governance and firm value: a study on European financial institutions

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hanen Ben Fatma ◽  
Jamel Chouaibi
Keyword(s):  
Corporate Governance ◽  
Financial Institutions ◽  
Firm Value ◽  
Gender Diversity ◽  
Ownership Concentration ◽  
Board Independence ◽  
Board Size ◽  
Content Type ◽  
Corporate Governance Mechanisms ◽  
Board Gender Diversity

PurposeThe purpose of this paper is to examine the impact of the characteristics of two corporate governance mechanisms, namely, board of directors and ownership structure, on the firm value of European financial institutions.Design/methodology/approachUsing the market-to-book ratio calculated by the Thomson Reuters Eikon ASSET4 database, this study measures the firm value of 111 financial institutions belonging to 12 European countries listed on the stock exchange during the period 2007–2019. Multivariate regression analysis on panel data is used to estimate the relationship between corporate governance attributes, such as board size, board independence, board gender diversity, ownership concentration and CEO ownership, and the firm value of European financial institutions.FindingsThe empirical results reveal that board gender diversity and CEO ownership are positively related to the firm value, whereas board size and ownership concentration are negatively related. Furthermore, the findings suggest that board independence is insignificantly correlated with the firm value. Regarding the control variables, the results show that financial institutions' size, age and legal system are significant factors in changing the firm value. Nevertheless, financial institutions' leverage and activity sector are not significantly correlated with their value.Originality/valueThis research contributes to the literature by providing the significant links between some corporate governance mechanisms and the firm value of companies from the financial industry, by addressing the information gap for this critical industry in the context of a developed market like Europe.

scholarly journals Faktor-Faktor Yang Mempengaruhi Nilai Perusahaan Dengan Moderasi GCG

2020 ◽  
Vol 24 (3) ◽  
pp. 468
Author(s):  
Henny Wirianata
Keyword(s):  
Corporate Governance ◽  
Capital Structure ◽  
Empirical Evidence ◽  
Firm Size ◽  
Firm Value ◽  
Stock Exchange ◽  
Institutional Ownership ◽  
Manufacturing Companies ◽  
Good Corporate Governance

The objective of this study is to obtain empirical evidence about the influence of capital structure, profitability, firm size, and good corporate governance (GCG) towards firm value of manufacturing companies listed in Indonesia Stock Exchange period 2016-2018. The data were tested in this research using EVIEWS 10. The results show that capital structure proxies by DER and profitability proxies by NPM have positive and significant effect towards firm value. Meanwhile, profitability proxies by ROA, firm size, and GCG proxies by institutional ownership have negative and significant effects towards firm value. The results also show that institutional ownership could not moderated the effects of capital structure, profitability, and firm size towards firm value of manufacturing companies listed in Indonesia Stock Exchange period 2016-2018.

Sustainability assurance and assurance providers: Corporate governance determinants in stakeholder-oriented countries

2017 ◽  
Vol 23 (5) ◽  
pp. 647-670 ◽  
Author(s):  
Jennifer Martínez-Ferrero ◽  
Isabel-María García-Sánchez
Keyword(s):  
Corporate Governance ◽  
Empirical Evidence ◽  
Random Effects ◽  
Board Independence ◽  
Logit Models ◽  
Accounting Profession ◽  
Board Size ◽  
Stakeholder Orientation ◽  
Corporate Governance Mechanisms ◽  
Sustainability Reports

AbstractThis paper examines the effect of corporate governance mechanisms on companies’ decision to assure their sustainability reports and their choice of assurance provider in countries with a greater stakeholder orientation. The corporate governance factors analyzed are related to the strength of the board’s monitoring function, which is determined by the size, independence and activity of the sustainability committee. The international sample consists of 610 companies operating in countries that are more stakeholder oriented from the period 2007–2014. We propose alternative logit models of analysis using the random effects estimator. Consistently with our propositions, our results provide evidence that a firm’s sustainability assurance and its choice of the accounting profession are positively associated with board independence and the activity of the sustainability committee. In addition, the empirical evidence obtained shows a U-shaped relationship between the board size and assurance issues.

scholarly journals The Effect of Corporate Governance on Financial Performance in Non-Financial LQ-45 Firms Listed on the Indonesian Stock Exchange from 2012 to 2017

2019 ◽  
Vol 4 (1) ◽  
pp. 21-27
Author(s):  
Erika Jimena Arilyn ◽  
Beny Beny ◽  
Emir Kharismar
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Firm Size ◽  
Stock Exchange ◽  
Panel Data Analysis ◽  
Jel Classification ◽  
Annual Reports ◽  
Board Independence ◽  
Financial Leverage ◽  
Board Size

Objective - This research is conducted in order to determine what factors in corporate governance affect the financial performance of a firm. Methodology/Technique - Financial performance, as the dependent variable, is measured by Return on Asset (ROA), while the independent variables (corporate governance) are measured using Board Independence, Board Size, Dividend, Firm Size, and Financial Leverage. The sampling method used in this research is purposive sampling. The requirements for the sample of this research are the non – financial firms included in LQ-45 from 2012 to 2017 that publish annual reports that are available to the public. The research method used in this paper is a quantitative method. Panel data analysis technique and E-views tools were also used. Findings - The results indicate that firm size and percentage of board independence has no effect on financial performance, while board size, dividends, and financial leverage all effect financial performance. Novelty - The study adds to the literature of corporate government and firm performance in emerging countries. Type of Paper Empirical Keywords: Board Independence; Board Size; Dividends; Firm Size; Financial Leverage; Financial Performance. JEL Classification: M40, M48, M49. DOI: https://doi.org/10.35609/afr.2019.4.1(4)

scholarly journals Internal Corporate Governance Practices and Choice of External Auditor in Nigeria: A Logistic Regression Analysis

2020 ◽  
Vol 11 (1) ◽  
pp. 9-16
Author(s):  
Kenny Adedapo Soyemi
Keyword(s):  
Corporate Governance ◽  
Logistic Regression ◽  
Firm Size ◽  
Institutional Investors ◽  
Estimation Method ◽  
Mean Difference ◽  
Board Independence ◽  
Board Size ◽  
Governance Practices ◽  
External Auditor

The research provided empirical evidence on how internal corporate governance practices were proxied by board size, board independence, and share ownership by institutional investors with firm size and leverage as control variables. It might influence the choice of the external auditor, (a dummy proxied with the Big4 versus non-Big4 audit firms dichotomy). The sample was composed of 27 purposely selected quoted non-financial firms spread across 10 sectors on the Nigerian Stock Exchange (NSE). There were 189 firms/year of dataset observations. These secondary panel data were sourced mainly from selected firms’ annual reports and accounts from 2011 to 2017. Moreover, descriptive analysis and test of mean difference were conducted, while the panel logistic regression was adopted as the estimation method. The test of mean difference reveals that many firms with larger board size, board independence, and considerably higher institutional investors engage Big4 auditors. Meanwhile, firms with higher leverage employ non-Big4 auditors. The results from the multivariate analysis show that key determinants of the choice of external auditors are board independence and firm size. This suggests that firms have a higher propensity of choosing a Big4 audit firm as the number of independent board members, as well as their increase in sizes. These findings are mostly consistent with previous studies.

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