scholarly journals Corporate governance and firm performance in the emerging market: A review of the empirical literature

2021 ◽  
Vol 10 (1) ◽  
pp. 96-111
Author(s):  
Isaac Francis Antwi ◽  
Carla Carvalho ◽  
Cecília Carmo
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Audit Committee ◽  
Emerging Market ◽  
Gender Diversity ◽  
Science Research ◽  
Empirical Literature ◽  
Research Trend ◽  
Future Research ◽  
Research Experience

After decades of many corporate scandals and financial meltdowns, the quest for effective corporate governance and firm performance has raised the concern of a lot of academicians, practitioners, and researchers regarding articles written on this issue. This study seeks to review corporate governance and firm performance articles written in Ghana under the author’s keywords in order to fulfill the objective. The goal is to identify the research trend and then to suggest the idea of future research directions. The study has conducted a review of corporate governance research by searching at Scopus and Web of Science research databases from 2006 to 2020 to prepare the list of articles. A comprehensive review of recent corporate governance and firm performance literature is essential because it provides a basis for comparing Ghana’s corporate governance research experience with other emerging economies in other continents. The findings reveal that two keywords on corporate governance analysed in this study – board composition and ownership – have many written articles, while compensation has the least number of articles. However, in the future, gender diversity and audit committee may be investigated since it has received global attention.

Corporate Governance and Voluntary Disclosure: A Synthesis of Empirical Studies

2020 ◽  
Vol 8 (2) ◽  
pp. 117-138
Author(s):  
Rupjyoti Saha ◽  
K. C. Kabra
Keyword(s):  
Corporate Governance ◽  
Voluntary Disclosure ◽  
Emerging Market ◽  
Empirical Studies ◽  
Practical Importance ◽  
Empirical Literature ◽  
Future Research ◽  
Explanatory Variables ◽  
Legal Enforcement ◽  
The Relationship

Voluntary disclosure (VD) is considered potentially important for efficient functioning of the capital market as it communicates firms’ performance and governance to shareholders and potential investors, which boost their confidence. This article attempts to provide a brief conceptual framework of VD and corporate governance (CG), and also reviews the empirical literature dealing with relationship between them. To this end, the article uses systematic electronic literature search method, which takes into account 65 empirical studies published over the period 1998–2018. An investigation of empirical findings points to some factors that may have contributed toward the apparent inconsistent findings observed to date. In particular, the article focuses on two intervening factors for variation of results—such as CG system and measurement of explanatory variables. The findings suggest that studies mostly from Anglo-Saxon system (ASS) show complementary relationship between different attributes of CG with VD, whereas in case of communitarian system, studies mostly depict an insignificant impact of CG attributes on VD except for few studies showing their positive/negative impact on VD. However, in case of emerging market system (EMS), some studies show substitutive relationship between board independence (BI) and VD while other CG attributes such as board size (BS), (GD), and audit committee independence (ACI) in most of the studies complement VD supporting the resource-based perspective. Furthermore, the association of ownership structure (OS) and role duality (RD) with VD is mixed. Another factor, which is considered to be added to variation of results, is measurement of explanatory variables whereby albeit studies employed same concepts, operational definition of variables intervenes into the relationship between CG and VD. The findings of this article provide some deeper insights about the complementary and substitutive relationships between CG and VD by integrating diverse empirical findings under different research contexts. Future research can extend to analyze some other institutional factors like investors’ protection rights and legal enforcement, which might also have played some role in influencing the relationship between CG and VD. Furthermore, it is also evident from the review that BS and BI are the most commonly studied CG attributes in relation to VD, whereas attributes like GD and ACI, despite their theoretical relevance and practical importance are least studied in relation to VD, thus signaling the need to focus on these attributes in future studies.

scholarly journals The Nexus Between Corporate Governance and Firm Performance During COVID-19 Pandemic in Sri Lanka

2021 ◽  
Vol 3 (1) ◽  
pp. 81-88
Author(s):  
M. Farwis ◽  
M.M Siyam ◽  
MCA. Nazar ◽  
MACF. Aroosiya
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Sri Lanka ◽  
Audit Committee ◽  
Gender Diversity ◽  
Corporate Management ◽  
Unique Contribution ◽  
Quantitative Methodology ◽  
Board Size ◽  
The Impact

The COVID-19 has redefined the world operation. Specially COVID-19 pandemic shows a higher impact on the business field. Accordingly, this study aims to find the impact of corporate governance on firm performance during the Covid-19 pandemic in Sri Lanka. The quantitative methodology deployed and secondary data was collected from 27 companies listed in Colombo Stock Exchange (CSE) for 209 and 2020. The results depicted that pandemic has affected the Corporate Governance (CG) measures unfavorably. Further, board size and qualification of director’s show a positive association between firm performance meantime, NED proportion, Gender diversity, Board meeting, Audit committee size and Audit committee meeting show a negative association between firm performance. It clearly reveals that COVID-19 severely impact the corporate governance attributes and firm performance. The corporate management, regulators, and investors must consider the board’s board size and qualification to recover the corporate sector in any crisis. This study provides a unique contribution to the literature of COVID-19 and firm performance in emerging economies. 

Audit Characteristics, Gender Diversity and Firm Performance: Evidence from a Developing Economy

2021 ◽  
Vol 14 (1) ◽  
pp. 48-70
Author(s):  
Mohammad Rajon Meah ◽  
Kanon Kumar Sen ◽  
Md. Hossain Ali
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Audit Committee ◽  
Significant Contribution ◽  
Family Firms ◽  
Negative Impact ◽  
Interaction Analysis ◽  
Gender Diversity ◽  
Family Firm ◽  
The Impact

This study aims to explore the impact of audit characteristics and gender diversity on firm performance across family and non-family firms in Bangladesh. Using data of 61 non-family and 48 family firms from 2013 to 2019, this study applies system generalised method of moments approach to carry out regression analysis. Next, the consistency of results is detected by a full sample interaction analysis. In case of non-family firm, this study documents that Big4 audit firms (Big4) and female directors on board (FDR) have significant positive impact on firm performance. Conversely, audit meeting frequency (AMF) contributes negatively to the firm performance. Unfortunately, audit committee size (ACS) and audit committee independence (ACI) have no significant contribution on firm performance. In case of family firms, this study finds that ACS and ACI have significant negative impact on firm performance. Besides, Big4, AMF and FDR have no significant contribution on firm performance. It reflects that corporate governance mechanisms in family firm are not working well and even to some extent detrimental to the firm performance. It, ultimately, demands for reforms in corporate governance framework and incorporating new dimensions for family firms.

scholarly journals Investigating How Corporate Governance Affects Performance of Firm in Small Emerging Markets: An Empirical Analysis for Jordanian Manufacturing Firms

2016 ◽  
Vol 10 (1) ◽  
pp. 77
Author(s):  
Jehad S. Aldehayyat ◽  
Sliman S. Alsoboa ◽  
Mohammad H. Al-Kilani
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Emerging Markets ◽  
Audit Committee ◽  
Emerging Market ◽  
Manufacturing Firms ◽  
Board Members ◽  
Executive Directors ◽  
Ceo Duality ◽  
Positive Correlation

This paper aims at exploring how the mechanisms of corporate governance (audit committee size, CEO duality, board size, female board members and board composition) affect the firm performance. Based on data from 66 out of 69 firms, which represents (95.6%) of Jordanian publicly quoted manufacturing firms covering a five-year period (2008–2012), the use of multiple regression analysis was done for assessing how each of the mechanisms of corporate governance relates to firm performance. The empirical findings of this study suggest that size of firm and Tobin's Q and ROA shows a significant positive correlation, while leverage and ROA show significant correlations. Results indicate that CEO duality and size of board have negative correlation with ROA, while non-executive directors' proportion shows a positive correlation with ROA. No relationship was recognized between the female board members' proportion and audit committee size and ROA. Conversely, the variables of corporate governance do not show a relation with measure of market performance, which supports the argument that market-based performance measures are impartial when economic circumstances are normal in context of emerging markets. The paper provides insight into better understanding how the various mechanisms of corporate governance are related to the performance of firm given the scenario of a small emerging market of non-oil-producing country.

scholarly journals Corporate governance and firm performance in an emerging market - An exploratory analysis of Pakistan

2007 ◽  
Vol 4 (2) ◽  
pp. 216-225
Author(s):  
Mohammed Nishat ◽  
Rozina Shaheen
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Audit Committee ◽  
Stock Exchange ◽  
Emerging Market ◽  
Director Compensation ◽  
Return On Equity ◽  
Board Of Director ◽  
Governance Index ◽  
Governance Practices

This preliminary study aims to develop a corporate governance index based on governance practices followed by the listed firms at Karachi Stock Exchange (KSE). Since the corporate governance concept is at very initial level of its implementation and practices, this study also analyses the structure of good corporate governance practices and level of awareness about new regulations of corporate governance implemented by Security Exchange Commission of Pakistan. The data is collected through a structured questionnaire covering seven corporate governance categories: audit committee, board of directors, charter/bylaws, director education, executive and director compensation, ownership, and the progressive practices during the year 2004. The results indicate that all of the firm performance measures; return on equity, net profit margin, sales growth and dividend yield (except Tobin’s Q) have their expected positive relation with corporate governance index score (Gov-Score) and are significant in correlation and decile analysis. This suggests that firms with relatively poor governance are relatively less profitable, less valuable, and pay less cash to their shareholders. The role of audit and board of director are highly associated with good performance while the governance categories related to director’s education and charter/bylaws are least associated with good performance

Investments by Emerging-Market Multinationals in Other Emerging Markets

2018 ◽  
pp. 630-656
Author(s):  
Jing Li ◽  
Daniel Shapiro
Keyword(s):  
Sustainable Development ◽  
Corporate Governance ◽  
Emerging Economies ◽  
Multinational Enterprises ◽  
Emerging Market ◽  
Institutional Development ◽  
Spillover Effects ◽  
Investment Strategy ◽  
Future Research ◽  
Foreign Direct Investments

This chapter reviews the literature on foreign direct investments among emerging economies (E-E FDI), focusing on the motivations behind E-E FDI, country-specific advantages and firm-specific advantages associated with emerging-economy multinational enterprises (EMNEs), and spillover effects of E-E FDI on host-country economic and institutional development. We identify the following topics as posing important questions for future research: EMNEs’ ability to leverage home-government resources and diplomatic connections to promote investment in other emerging economies; nonmarket strategies of EMNEs in emerging economies; ownership and corporate governance affecting investment strategy and performance of EMNEs; E-E FDI contributions to sustainable development in host countries. Future studies should also consider potential heterogeneity among EMNEs by integrating insights from institutional theory, network theory, political science, corporate governance, corporate social responsibility, and sustainable-development research.

scholarly journals Serendipity and its study

2014 ◽  
Vol 70 (6) ◽  
pp. 1015-1038 ◽  
Author(s):  
Allen Edward Foster ◽  
David Ellis
Keyword(s):  
Information Seeking ◽  
Process Model ◽  
Empirical Studies ◽  
Science Research ◽  
Empirical Literature ◽  
Future Research ◽  
Content Type ◽  
Information Studies ◽  
Information Encountering ◽  
Citation Classics

Purpose – The purpose of this paper is to explore the concept of serendipity and approaches to its study particularly in relation to information studies. Design/methodology/approach – The origins of the term serendipity are described and its elaboration as an exploratory and explanatory concept in science and the social sciences are outlined. The distinction between serendipity and serendipity pattern is explained and theoretical and empirical studies of both serendipity and the serendipity patterns are explored. The relationship between information encountering is described. Empirical studies of serendipity using Citation Classics and other research approaches in information studies are described. Findings – The discrepancy between occurrences of serendipity in studies using Citation Classics and reported serendipity in philosophy of science, research anecdotes, information encountering and information seeking by inter-disciplinary researchers is highlighted. A comparison between a process model of serendipity and serendipity as an emergent behavioural characteristic are indicates directions for future research. Originality/value – The paper provides and original synthesis of the theoretical and empirical literature on serendipity with particular reference to work in information studies and an indication of the methodological difficulties involved in its study.

scholarly journals Corporate Governance and Firm Performance: An Empirical Analysis of Manufacturing Listed Firms in Ghana

2018 ◽  
Vol 7 (3) ◽  
pp. 111 ◽  
Author(s):  
Beatrice Sarpong-Danquah ◽  
Prince Gyimah ◽  
Richard Owusu Afriyie ◽  
Albert Asiama
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Manufacturing Sector ◽  
Gender Diversity ◽  
Generalized Least Squares ◽  
Manufacturing Firms ◽  
Board Independence ◽  
Outside Directors ◽  
Board Size ◽  
Listed Firms

This paper assesses the effect of corporate governance on the financial performance of manufacturing firms in a developing country. Specifically, the paper investigates whether gender diversity, board independence, and board size affects return on asset (ROA) and return on equity (ROE) of manufacturing listed firms in Ghana. We use the generalized least squares (GLS) panel regression model to analyze the dataset of 11 listed manufacturing firms from 2009-2013. Our result reveals an insignificant representation of women on boards. Also, the empirical result shows that board independence and board gender diversity have significant positive effect on ROE and ROA. However, there is no statistical significant relationship between board size and firm performance (ROE and ROA). We suggest that manufacturing firms should appoint female board members as well as outside directors on their boards as this can make significant contribution to firm’s performance. Our study provides the first comprehensive explicit exposition of corporate governance-performance nexus using data from the manufacturing sector in Ghana.

Audit committee effectiveness and financial reporting timeliness

2018 ◽  
Vol 9 (1) ◽  
pp. 34-55 ◽  
Author(s):  
Ahmed Atef Oussii ◽  
Neila Boulila Taktak
Keyword(s):  
Financial Reporting ◽  
Audit Committee ◽  
Emerging Market ◽  
Listed Companies ◽  
Audit Committees ◽  
Future Research ◽  
Governance System ◽  
Content Type ◽  
Financial Expertise ◽  
The Impact

Purpose The purpose of this paper is to investigate whether there is any relationship between the effectiveness of an audit committee and the financial reporting timeliness of Tunisian listed companies as proxied by external audit delay (AD). Analysis focuses on five audit committee characteristics: authority, financial expertise, independence, size and diligence. Design/methodology/approach Empirical tests address 162 firm-year observations drawn from Tunisian listed companies during 2011-2013. Findings Multivariate analyses indicate that audit committees with members who have financial expertise are significantly associated with shorter AD. Thus, the results suggest that audit committee financial expertise contributes to the improvement of financial statements’ timeliness. Research limitations/implications The audit committee attributes examined in this study were based on DeZoort et al. (2002) framework. There could be other aspects of audit committee effectiveness such as audit committee tenure and audit committee chair characteristics, which were not addressed in the present study. Thus, future research may consider and examine these other components of audit committee effectiveness. Practical implications Findings have managerial implications. Companies can re-look into how to further improve audit committee composition in order to enhance the timeliness of financial reporting. The issues of audit committee effectiveness and timely reporting also affect regulators and policy makers since they need to play a role in the establishment of effective audit committees and the improvement of financial reporting timeliness. Originality/value This study is one of few that have examined the impact of audit committee effectiveness on ADs in an emerging market country. Findings lend credence to the belief that audit committee members’ financial expertise enhances the quality of financial reporting by firms in a North African market criticized for the lack of maturity of its corporate governance system (Klibi, 2015; Fitch Ratings, 2009).

The role of national culture in the impact of board gender diversity on firm performance: evidence from a multi-country study

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Navaz Naghavi ◽  
Saeed Pahlevan Sharif ◽  
Hafezali Bin Iqbal Hussain
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Generalized Method Of Moments ◽  
Gender Diversity ◽  
Governance Structure ◽  
Corporate Governance Structure ◽  
Data Set ◽  
Content Type ◽  
Board Gender Diversity ◽  
The Impact

PurposeThis study seeks to add more insights to the debate on “whether”, “how”, and “under which condition” women representation on the board contributes to firm performance. More specifically, the current study aims to investigate if the effect of board gender diversity on firm performance is dependent on macro factors of national cultures.Design/methodology/approachThe authors used the generalized method of moments regression and a data set consists of 2,550 company year observations over 10 years.FindingsThe results indicated that cultural variables interact with board diversity to influence firm performance. Having women on the board in countries with high power distance, individualist, masculine and low-uncertainty avoidance culture influences the firm performance negatively.Originality/valueThe findings indicate that the effects of corporate governance structure on firm performance depends on culture-specific factors, providing support for the argument that institutional norms that are governed by cultural norms affect the effectiveness of corporate governance structure.

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