scholarly journals Impact of Corporate Governance on Financial Practices of New Zealand Companies

2013 ◽  
Vol 2 (2) ◽  
pp. 14
Author(s):  
Hardjo Koerniadi
Keyword(s):  
Corporate Governance ◽  
New Zealand ◽  
Dividend Policy ◽  
Cost Of Capital ◽  
Firm Level ◽  
Governance Index ◽  
Fama And French ◽  
Financial Practices

This study examines the effects of firm level corporate governance on financing policiesof New Zealand firms. Using a unique self-constructed corporate governance index andemploying the methodology of Fama and French (1999) of financing of firms, we can reportthat firms with weak corporate governance generally issue more debt and have significantlyhigher cost of capital than do firms with strong governance. It is further observed thatcorporate governance does not have significant impact on dividend policy in New Zealand.

scholarly journals Corporate Governance and Cost of Capital: Evidence from Emerging Market

Risks ◽  
2020 ◽  
Vol 8 (4) ◽  
pp. 104
Author(s):  
Muhammad Yar Khan ◽  
Anam Javeed ◽  
Ly Kim Cuong ◽  
Ha Pham
Keyword(s):  
Corporate Governance ◽  
Lower Cost ◽  
Cost Of Capital ◽  
Emerging Market ◽  
Firm Level ◽  
Listed Firms ◽  
Corporate Failure ◽  
Governance Index ◽  
Governance Practices ◽  
Code Of Corporate Governance

This study used a researcher self-constructed corporate governance index as a proxy to measure the firm-level corporate governance compliance and disclosure with the 2002 Pakistani Code of Corporate Governance, to examine the relationship between corporate governance and cost of capital. We found a negative and significant association between the Pakistani Corporate Governance Index (PCGI) and block ownership with the firm-level cost of capital. On average, better-governed Pakistani listed firms tend to be associated with a lower cost of capital than their poorly governed counterparts are. As an emerging market, good corporate governance practices are mainly related to minimise corporate failure and assist firms in attracting capital at a lower cost.

scholarly journals “Governance” premium? Evidences from the nine emerging markets of Asia

2008 ◽  
Vol 6 (Special Issue 1) ◽  
pp. 6-14
Author(s):  
Chien-An Wang ◽  
Lin Lin ◽  
Ming-Yuan Li
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Emerging Markets ◽  
Stock Return ◽  
Cost Of Capital ◽  
Stock Exchange ◽  
Firm Level ◽  
Fundamental Value ◽  
Accounting Reports ◽  
The Relationship

This paper hypothesizes the relationships of corporate governance, firm performance, and cost of capital, using the firm-level sample from the nine emerging markets of Asia in 2001 and 2002. Our empirical results confirmed the relationship between the corporate governance and firm performance, measured by the stock return and the rate return on asset, is not significant. Evidence implied that the stock return of emerging markets may be largely influenced by unknown but irrational factors, and their accounting reports of the companies listed in such stock exchange are not trustworthy due to window-dressing. The fundamental value and the value of corporate governance are thus not incorporated into the re-evaluation of the prices of the related stocks. However, empirical evidence also indicated that the firms with better corporate governance can reduce their costs of capital in a defensive manner, realized when a raise of fund is required.

scholarly journals Estimating Firm-Level Effective Marginal Tax Rates and the User Cost of Capital in New Zealand

2013 ◽  
Author(s):  
Richard Fabling ◽  
Norman Gemmell ◽  
Richard Kneller ◽  
Lynda Sanderson
Keyword(s):  
New Zealand ◽  
Cost Of Capital ◽  
Tax Rates ◽  
User Cost ◽  
Firm Level ◽  
Marginal Tax Rates

scholarly journals Effect of Corporate Governance Index on Dividend Policy: An Investigation of Textile Industry of Pakistan

2017 ◽  
Vol 5 (2) ◽  
Author(s):  
Safdar Husain Tahir ◽  
Sara Sohail ◽  
Saba Babar ◽  
Irtaza Oayyum
Keyword(s):  
Corporate Governance ◽  
Textile Industry ◽  
Dividend Policy ◽  
Positive Impact ◽  
Stock Exchange ◽  
Payout Policy ◽  
Profit Margin ◽  
Dividend Payout ◽  
Governance Index ◽  
The Impact

This study empirically observes the impact of corporate governance index on dividend payout policy by using the data on thirty textile firms listed at Karachi Stock Exchange. The data cover the five-year period from 2009 to 2013. The data were gathered from financial statements of all the sample firms. Multiple regression models were used to check the impact of corporate governance on dividend policy. No effect of corporate governance index on firm dividend policy was found, and the largest shareholders also had no impact on dividend payout policy. A significant positive relationship was found between payout policy and stock value. Gross profit margin and operating profit margin had significant positive impact on the firm’s dividend payout policy. There is a significant correlation between the firm’s performance and payout policy.

The Determinants of Firm-Specific Corporate Governance Arrangements, IFRS Adoption, and the Informativeness of Accounting Reports: Evidence from Brazil

2016 ◽  
Vol 15 (2) ◽  
pp. 101-124 ◽  
Author(s):  
Alexsandro Broedel Lopes ◽  
Martin Walker ◽  
Ricardo Luiz Menezes da Silva
Keyword(s):  
Corporate Governance ◽  
Essential Elements ◽  
Accounting Quality ◽  
Firm Level ◽  
Ifrs Adoption ◽  
Cross Listing ◽  
Governance Index ◽  
Corporate Governance Quality ◽  
Accounting Reports ◽  
Governance Arrangements

ABSTRACT In this study we investigate the complementary effect of firm-level incentives and IFRS adoption on the informativeness of accounting reports in Brazil. Using a specially constructed corporate governance index—Brazilian Corporate Governance Index (BCGI)—we show that the quality of corporate governance is linked to the growth opportunities firms face. Consistent with the argument that accounting numbers are essential elements of corporate governance arrangements, we show that improvements in corporate governance are associated with economically material and statistically significant improvements in indicators of accounting quality. We also show that corporate governance quality and accounting quality are also positively affected by cross-listing, although cross-listing is not the only driver of either of these quality choices. Our results also show that IFRS adoption leads to an increase in the informativeness of accounting reports in Brazil, especially for firms that do not possess the ex ante incentives to produce high-quality financial statements.

scholarly journals Corporate governance and financial performance: an emerging economy perspective

2016 ◽  
Vol 13 (3) ◽  
pp. 228-236 ◽  
Author(s):  
Faizul Haque ◽  
Thankom G. Arun
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Agency Theory ◽  
Financial Reporting ◽  
Operating Performance ◽  
Jel Classification ◽  
Three Dimensions ◽  
Firm Level ◽  
Study Results ◽  
Governance Index

This paper investigates the influence of firm-level corporate governance on financial performance of the listed firms in Bangladesh. Agency theory suggests that better corporate governance reduces expropriation costs, which, in turn, enhances investors’ confidence in the firm’s future cash flow and growth prospects, leading to higher firm valuation. Likewise, a decrease in private benefits is likely to cause an improved operating performance. This paper uses a questionnaire survey-based corporate governance index (CGI), comprising of the three dimensions – shareholder rights, independence and responsibilities of the board and management, and financial reporting and disclosures. The study results partly confirm the prediction of the agency theory, with a statistically significant positive relationship between a firm’s corporate governance quality and its valuation, even though the relationship between firm level corporate governance and operating performance seems inconclusive. Keywords: corporate governance index, agency theory, financial performance, Bangladesh. JEL Classification: G32, G34, G38, O16

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