scholarly journals Corporate governance and firm performance: New evidence from Brazil

2011 ◽  
Vol 8 (4) ◽  
pp. 527-531
Author(s):  
Mariana Vieira ◽  
Andre Carvalhal da Silva ◽  
Otavio Figueiredo
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Positive Relation ◽  
Academic Literature ◽  
Future Performance ◽  
Quality Of Governance ◽  
And Performance ◽  
New Evidence ◽  
The Relationship

The relationship between governance and firm performance has been vastly studied in the academic literature. Although most studies indicate a positive relation between governance and performance, this result is not clear and conclusive to many experts. This paper uses a new methodology to analyze the relation between governance and performance. We compute the change in the quality of governance and classify the firms into three groups (positive, neutral and negative variation). Then we calculate the current and future performance for each group and check if there is a relation between changes in governance and firm performance. Analyzing Brazilian data from 2002 to 2008, our results indicate that positive (negative) changes on corporate governance are associated with positive (negative) changes on firm performance

scholarly journals Quality of governance and the construction of governance indices: evidence from Spain

2007 ◽  
Vol 5 (1) ◽  
pp. 355-371
Author(s):  
Eloisa Pérez de Toledo ◽  
Evandro Bocatto
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Investor Protection ◽  
Extensive Literature ◽  
Firm Level ◽  
Public Companies ◽  
Corporate Governance Mechanisms ◽  
And Performance ◽  
Future Growth

Corporate governance is a set of mechanisms relevant to economic efficiency since it can minimize agency problems. The question is to determine how governance and firm performance interact. Recent research shows that firm-level corporate governance mechanisms are more important in countries with low investor protection, suggesting that firms can partially compensate for ineffective legal environments. Within this context, the objective of this paper is to construct a robust proxy for quality of corporate governance for the Spanish public companies. Thus, after providing an extensive literature review on the field of corporate governance and its interaction with firm performance, we construct a governance index (GOV-I) for a sample of 97 Spanish non-financial public companies. Finally, we assess the determinants of governance in the case of Spain. The results show a significant relationship between governance and performance, future growth opportunities and size, demonstrating that Spanish firms adopt better standards of governance to compensate for the low level of investor protection holding in the country.

scholarly journals A Thematic Review on Composition of Board of Directors (BOD) and Its Impact on Performance

NCC Journal ◽  
2018 ◽  
Vol 3 (1) ◽  
pp. 65-70
Author(s):  
Dipti Dhungel
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Board Of Directors ◽  
Boards Of Directors ◽  
Corporate Boards ◽  
Corporate Governance Mechanisms ◽  
Thematic Review ◽  
And Performance ◽  
Main Component ◽  
The Relationship

This thematic paper has been prepared to find out how the composition of Board of Directors makes impact on performance of firms. To find this impact, the articles published in international journals have been reviewed. In addition to this detailed study of the legislator, the provision regarding composition of BOD in Nepal was made as stated in BAFIA and Company Act. The Board of Directorsis the elected members among the shareholders who could best represent the interest of each and every member. Corporate boards are one of the, if not the most important, internal corporate governance mechanisms that monitor and advise management in fulfilling the mandate to protect shareholder interests.There is still much debate as to the relationship between firm performance and boards of directors, which are arguably the main component of corporate governance.The thematic review concludes that the relationship between BOD and performance was not found on the basis of existing literature reviewed. Thus, the study opened the ground for the researcher to test this empirically.NCC JournalVol. 3, No. 1, 2018, Page: 65-70

scholarly journals Governança corporativa e desempenho das empresas diante da crise econômica global de 2008: uma análise de dados em painel

2016 ◽  
Vol 9 (2) ◽  
pp. 293-311
Author(s):  
Flávia Schwartz Maranho ◽  
Marcos Wagner da Fonseca ◽  
José Roberto Frega
Keyword(s):  
Corporate Governance ◽  
Economic Crisis ◽  
Private Governance ◽  
Return On Assets ◽  
Public And Private ◽  
Panel Model ◽  
Global Economic Crisis ◽  
And Performance ◽  
The Relationship

The recent literature on corporate governance (CG) suggests that in addition to the micro and macroeconomic causes for the crisis, serious flaws in the structures of public and private governance contributed to the worsening of the global economic crisis of 2008. Given this scenario, the present research sought to advance in the understanding of the relationship between CG, performance and recessions. The objective was to verify the influence of the quality of the CG in the performance of Brazilian companies listed on Bovespa BMF in the context of the global economic crisis of 2008. The indicators of performance and corporate governance defined by the theoretical basis were calculated, the behavior of the variables suffered an exploratory analysis from descriptive statistics and an econometric data panel model was used to test the hypothesis. As a main result, this research found that the performance measured by return on assets (ROA) is explained by the quality of corporate governance. The relationship proved to be statistically significant and negative. Was registered a gradual growth of the quality of corporate governance. The behavior of the performance variable, between January 2004 and December 2012, demonstrates clearly the collapse caused in the results of companies with the outbreak of the global economic crisis in 2008. There is evidence that the results at the end of the period of the survey remained distant from the levels observed prior to the crisis. The relationship between the quality of corporate governance in the pre-crisis period and performance proved to be statistically significant and positive.

Corporate Governance Structure and Performance of Indian Companies

2010 ◽  
Vol 3 (2) ◽  
pp. 110-121
Author(s):  
Shikha Chauhan ◽  
J.S. Pasricha
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Significant Relationship ◽  
Participation Rate ◽  
Governance Structure ◽  
Least Square ◽  
Corporate Governance Structure ◽  
And Performance ◽  
The Impact ◽  
The Relationship

This study investigates the relationship between corporate governance structure and performance of Indian companies. The main objective of this study is to examine the impact of selected board characteristics and ownership structure on the firm performance. This analysis ranges over a period of six years, from 2001-02 to 2006-07 and is based on Pharmaceutical and IT industry. Least square dummy variable regression model has been used to study the relationship. We find that while board size, listing status of firm and foreign shareholding has positive and significant relationship with firm performance, public shareholding has negative and significant impact. However, independent director proportion, participation rate of independent directors and separation of Chairman and CEO post does not have a significant relationship with firm performance.

Corporate Governance and Performance of Shariah-Compliant Companies

2020 ◽  
pp. 547-566
Author(s):  
Mustafa Bin Mohd Hanefah ◽  
Muhammad Iqmal Hisham Kamaruddin ◽  
Rosnia Masruki ◽  
Mohd Marzuki Ismail
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Negative Correlation ◽  
Consumer Products ◽  
Board Size ◽  
Governance Practices ◽  
And Performance ◽  
Using Data ◽  
Code Of Corporate Governance ◽  
The Relationship

This chapter examines the relationship between corporate governance practices and firm performance. The characteristics of the board of Shari'ah-compliant companies in consumer products counter of Bursa Malaysia were examined against the firm's performance using data from 77 companies from 2014 to 2016. Based on the result of multiple regression; board size, Muslim chairman, and Muslim director have a weak positive correlation with the performance of the firms. However, directors with Shari'ah background seem to have a negative correlation with the performance of the firms. The findings of the chapter would be very useful to the regulators to improve the Malaysian Code of Corporate Governance (MCCG). The findings also help to fill the gap on scarce literature that study the relationship between the corporate governance practices involving Muslim characteristics and performance.

Relationship between corporate governance and firm performance: Metadata analysis for M&A participating firms

2021 ◽  
Vol 5 (4) ◽  
pp. 45-55
Author(s):  
Sarika Kumar ◽  
Sheeba Kapil
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Mergers And Acquisitions ◽  
Future Research ◽  
Academic Literature ◽  
The Past ◽  
Metadata Analysis ◽  
Future Work ◽  
The Impact ◽  
The Relationship

This paper is an attempt to overview the academic literature on the mergers and acquisitions (M&A) market and further focuses on the relationship between corporate governance (CG) and firm performance in M&A participating firms by systematizing the existing knowledge and further deriving specific implications for the future work scope. M&A market experiences trillions of USD dollar deals on yearly basis. Therefore, M&A becomes the highly studied area by the researchers for analysis of different combinations between CG, firm performance, takeovers, mergers, acquisitions, etc. In this paper, the research has been carried out as a structural assessment of the past fourteen years of research on different CG variables and firm performance. Further, it has been observed that the majority of research has been conducted to identify the impact of specific bid characteristics of CG on firm performance however; there is a dearth of study to analyze the relation between CG and firm performance for the firms actively participating in M&A market as an acquirer or as a target. In lieu of this, the paper has extracted the prospective area of the study and provided a path towards future research. This review will be useful for academicians and researchers working in the area of CG and M&A, and firm performance

scholarly journals Board of directors specificities in the context of Portuguese corporate governance and corporate law

2019 ◽  
Vol 1 (1) ◽  
pp. 41-57 ◽  
Author(s):  
Elisabete Vieira ◽  
Joaquim Neiva
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Board Of Directors ◽  
Corporate Law ◽  
Positive Relation ◽  
Listed Firms ◽  
The World ◽  
The Board Of Directors ◽  
The Relationship ◽  
State Of Art

The corporate governance is a mechanism to protect investors in the markets around the world. This study analyses the board of directors’ specificities in the context of Portuguese Corporate Governance, and study the corporate governance effect of Portuguese listed firms on firm performance. The results show that the Latin Model (Two-Tier Model) is the most (least) adopted by Portuguese firms. The percentage of executive members is higher than that of non-executive members. In the year of 2014, women held only 9.5% of positions on board, which is very low. The results concerning the relationship between corporate governance and firms’ performance are not consensual. Although some studies find evidence of a positive relation between the two variables, others find no relationship. With this study, we contribute to the state of art of corporate governance in a country which investigation is still scarce.

scholarly journals Re-examination of connectivity between CEO compensation and tenure at the helm and firm performance

2010 ◽  
Vol 7 (4) ◽  
pp. 347-364
Author(s):  
Samuel Bulmash
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Ceo Compensation ◽  
Compensation Package ◽  
Asset Bubble ◽  
Compensation Packages ◽  
Statistical Relationships ◽  
And Performance ◽  
Short Time ◽  
The Relationship

This paper presents empirical evidence related to a CEO’s tenure, compensation, and performance. It reviews some generally accepted assumptions that have driven the rationale for CEO compensation packages, performance, and monitoring by the boards in charge of corporate governance. The empirical results of this paper provide only partial support for the underpinning basis of many of the compensation and corporate governance packages in today’s corporate world. The paper uses data that was available to management and shareholders prior to the onset of the asset bubble that imploded during 2007-2009 period, and shows that there was already by then room for concern. The empirical findings presented here suggest that there is a mild positive relation between improvement in firm performance and the compensation package but even this is more evident in firms where the CEO service has a longer tenure compared to firms with a shorter tenure serving CEO. The results also support the findings from earlier studies that it is desirable to have an incentive scheme contingent on future returns, not only on the short time horizon. The findings presented here also confirm that CEOs who have passed the “early probation” test of time and skills and gained time to develop experience to lead the firm and its business have a stronger relationship between compensation and firm performance. However, the relatively low statistical relationships between compensation and firm performance for the whole sample overall leave room for concerns about the limited extent of their effectiveness. This paper also raises indirectly also concerns that the theoretical motivations of some compensation packages and the actual practices in the real world were not well aligned despite the large number of studies and efforts aimed at improving the relationship between CEO compensation and firm performance.

scholarly journals Interdependence between board and firm performance: evidence from the stock exchange of Tunisia

2008 ◽  
Vol 5 (4) ◽  
pp. 492-499
Author(s):  
Imene Lamiri ◽  
Hasna Chaibi ◽  
Hiba Khémiri
Keyword(s):  
Firm Performance ◽  
Stock Exchange ◽  
Simultaneous Equations ◽  
Board Independence ◽  
Board Structure ◽  
Reverse Causality ◽  
Quality Of Governance ◽  
And Performance ◽  
Different Characteristics

Recent empirical researches show a positive relationship between the quality of governance and firm performance. The objective of this research is to study the reverse causality between different characteristics of board and performance. Instead looking at one simple mechanism separately, we use a system of simultaneous equations in order to detect a possible endogeneity. In a panel of 36 traded firms at Tunis Stock Exchange between 2004 and 2006, our results show a significant interdependence between board size, board independence and firm performance. In addition, the 3SLS estimator allows us to conclude that board influences performance. Also, our results show that firms change their board structure in response to firm performance

scholarly journals EXPRESS: Unbundling the Effects of Internationalization on Firm Performance in Emerging Economies: The Moderating Effects of Strategic Resource Decisions

2021 ◽  
pp. 1069031X2110306
Author(s):  
Nilay Bicakcioglu-Peynirci ◽  
Robert E. Morgan
Keyword(s):  
Firm Performance ◽  
Emerging Economies ◽  
Emerging Market ◽  
Strategic Marketing ◽  
Slack Resources ◽  
Moderation Effect ◽  
Strategic Resource ◽  
And Performance ◽  
Resource Decisions ◽  
The Relationship

We investigate how strategic resource decisions—concerning slack resources and strategic marketing ambidexterity—influence the relationship between internationalization and firm performance of emerging market firms. Based upon the resource-based view, we synthesize two dominant, yet divergent, perspectives that explain the respective resource slack advantages and liabilities in the internationalization literature: the flexible capacity and the efficient capacity perspectives. We also explore the moderating role of strategic marketing ambidexterity which comprises a bundle of marketing activities covering both exploitation-dominant actions and exploration-dominant actions. We empirically examine our hypothesized relationships with data from a sample of 1,683 firm-year observations for the period between 2005 and 2018 and find that distinct forms of resource slacks have contrasting effects on the relationship between internationalization and performance. Our results provide strong evidence for positive moderation effect of unabsorbed slack resources and a negative moderation effect of absorbed slack resources on the internationalization-performance relationship. We also indicate nonsignificant moderating effect of strategic marketing ambidexterity, demonstrating that internationalization attains higher firm performance regardless of its exploration-dominant or exploitation-dominant strategic emphasis in emerging economies.

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