How do Competitive and Regulatory Pressures Interact with Internal Corporate Governance?: Evidence from the Cameroonian  Banking Sector

The objective of this article is to analyse the impact of both external and internal mechanisms of corporate governance on banks performance in Cameroon. The internal governance mechanisms consist of those linked with the Board of directors (its size and composition) and the ownership structure (ownership concentration, equity capital of each type of shareholder). External mechanisms consist of pressure from competitors, and regulatory pressure from the banking Commission following the adoption of equity principles or rules. Research carried out on a sample of 11 Cameroonian banks showed the effect of complementarity between the control exerted by internal stakeholders (institutional shareholders, insiders ownership, size of the Board of directors) and competitive pressure. On the contrary, a substitution effect was detected between State administrators and competitive pressure. Results obtained also revealed the substitution effect between control exercised by the Board of directors and regulatory pressure.

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Corporate governance and financial performance: An empirical study on Egyptian banks

Corporate Ownership and Control ◽

10.22495/cocv13i1c11p8 ◽

2015 ◽

Vol 13 (1) ◽

pp. 1359-1374

Author(s):

Hassan M. Hafez

Keyword(s):

Corporate Governance ◽

Financial Performance ◽

Board Of Directors ◽

Banking Sector ◽

Annual Reports ◽

Obvious Effect ◽

The Board Of Directors ◽

Conventional Banks ◽

The Impact

There is a distinct lack of research into the relationship between corporate governance and banks’ financial performance in the banking sector in Egypt. This research paper tries to fills this gab by examining the impact of corporate governance, with particular reference to the role of board of directors and ownership concentration, on the financial performance of Egyptian banks. Using a sample of 39 banks represent all commercial banks operate in Egypt for the period 2004– 2015 and controlling banks size and age. The study relied on the data through the annual reports of the respective banks, website of the central bank of Egypt and Data scope. The banks were selected for the study cutting across the local Islamic and Conventional banks, foreign Islamic and conventional banks, and regional Islamic and conventional banks. The results showed that banks ownership either foreign or national has an obvious effect on the banks’ financial performance. Board size has no significant effect. However, the hierarchy of the board of directors and the duality of the CEO has a direct effect on the banks financial performance in Egypt.

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The Impact of Corporate Governance Characteristics on the of Financial Distress

International Finance and Banking ◽

10.5296/ifb.v3i2.10370 ◽

2016 ◽

Vol 3 (2) ◽

pp. 162

Author(s):

Mahdi Filsaraei ◽

Reza Jarrahi Moghaddam

Keyword(s):

Corporate Governance ◽

Board Of Directors ◽

Financial Distress ◽

Financial Statements ◽

Multivariate Regression Analysis ◽

Company Stock ◽

Governance Indicators ◽

The Board Of Directors ◽

Qualified Audit Opinion ◽

The Impact

Given the importance of corporate governance for increasing the monitoring of company operations, i.e., reducing information asymmetry and increasing control over operations, in this study, we investigate some indicators of corporate governance and financial distress as one of the most important criteria in the decisions of the users of financial statements. Corporate governance Indicators that have been mentioned in this study, including the independence of the board of directors (the ratio of non-executive members), institutional investors and duality of CEO and Chairman of the Board of Directors. This study is applied research and the required information is gathered from financial statements of listed companies on the TSE. Using a sample of 82 company stock during the period 2010-2014 and multivariate regression analysis, the results of the analysis of information gathered indicates that institutional ownership reduces the financial distress. However, there was no significant relationship between board independence (proportion of outside board members) and the duality of CEO and Chairman of the Board with the financial distress. The results also indicate that financial leverage and a qualified audit opinion increases financial distress and firm size and management performance reduces it.

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Financial soundness of Islamic banks: does the structure of the board of directors matter?

Corporate Governance ◽

10.1108/cg-06-2020-0237 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Afef Khalil ◽

Imen Ben Slimene

Keyword(s):

Corporate Governance ◽

Board Of Directors ◽

Islamic Banks ◽

Z Score ◽

Data Set ◽

Content Type ◽

Additional Hypothesis ◽

The Board Of Directors ◽

Financial Soundness ◽

The Impact

Purpose The purpose of this paper is to examine the Board of Directors’ characteristics and their impact on the financial soundness of Islamic banks. Design/methodology/approach Regression analysis is applied to test the impact of the Board of Directors’ characteristics on the financial soundness of Islamic banks, using a panel data set of 67 Islamic banks covering 20 countries from 2005 to 2018. The Z-score indicator is used to evaluate the Islamic banks’ soundness. To check the robustness of the results, this paper uses other dependent variables (CAMEL) than the Z-score. Findings The main results show that the presence of an independent non-executive director negatively impacts the financial soundness of Islamic banks, while the chief executive officer duality practice has a positive effect on it. Other characteristics of the Board of Directors do not significantly impact the financial soundness of Islamic banks (foreign director, institutional director, chairman with a Shari’ah degree, interlocked chairman and the Board of Directors’ size). Practical implications This study aims to fill the gaps in the literature that discuss the Board of Directors’ role in corporate governance and its impact on the financial soundness of Islamic banks. In other words, it shows the role played by the Board of Directors and improves the knowledge of the corporate governance-financial soundness relationship. Plus, managers, investors and regulators may gain evocative insights, particularly those looking to improve their Islamic banks’ soundness by restructuring their boards’ composition. Originality/value This study sheds new light on the literature on Islamic banking by clarifying the relationship between the Board of Directors and the financial soundness of Islamic banks. Contrary to previous research, this paper uses an additional hypothesis stating that a chairman with a Shari’ah degree (Fiqh Muamalt) has a positive impact on the financial soundness of Islamic banks.

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Corporate Governance and Economic Performance: The Limit of Short Termism

Financial Markets Institutions and Risks ◽

10.21272/fmir.3(4).49-61.2019 ◽

2019 ◽

Vol 3 (4) ◽

pp. 49-61

Author(s):

F. D. Tommaso ◽

A. Gulinelli

Keyword(s):

Corporate Governance ◽

Board Of Directors ◽

Economic Performance ◽

Performance Indicators ◽

Financial Management ◽

Firm Value ◽

Key Performance Indicators ◽

Common Interest ◽

The Board Of Directors ◽

The Impact

This article includes exploring arguments and counterarguments in the context of conducting a scientific discussion on the impact of corporate governance on a company’s financial and economic performance. The main purpose of this paper is to determine the nature of the impact of corporate governance policy on the activities of economic entities. The systematization of literary sources and approaches to problem solving has shown that there are two opposing points of view: firm value, efficiency), on the other hand, a number of scientists are convinced that there is a positive influence of the functioning of the corporate governance system on the valuation of listed companies. The work emphasizes the decisive role of the board of directors of the company in the development and adoption of the strategic direction of development of the organization. The author points out in the study the need for coordinated interaction of the board of directors with the financial management of the company and the business owners in order to increase the efficiency and profitability of the business entity. It is stated that the key economic tools for achieving and implementing the strategic plans of the company can be the key performance indicators and accordingly developed measures to achieve such success. As a result, it is justified that corporate governance should not be a set of rules and mechanisms aimed at managing and controlling companies, but rather as a process by which companies become sensitive to stakeholder rights. The spread of corporate culture, according to the author of a work aimed at protecting the common interest, is facilitated by the existence of good rules and effective authorities that control their observance. Keywords: corporate governance, financial and economic activity, board of directors, key performance indicators.

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The effectiveness of the internal corporate governance mechanism and the ownership of the government and agencies

Accounting ◽

10.5267/j.ac.2021.5.005 ◽

2021 ◽

Vol 7 (7) ◽

pp. 1655-1660

Author(s):

Khaled Salmen Aljaaidi

Keyword(s):

Board Of Directors ◽

Negative Impact ◽

Governance Mechanism ◽

Board Size ◽

Internal Governance Mechanisms ◽

The Board Of Directors ◽

The Government ◽

Relationship Of ◽

The Impact ◽

The Relationship

This paper examines the impact of the government and its agencies’ ownership on the effectiveness of one the main internal governance mechanisms, namely; board of directors, for a sample of 140 energy and petrochemical Saudi listed firms over 2012-2019. The Saudi Arabia provides an interesting context due to the domination of government-linked corporations’ ownership. This setting arranges for the impact of such ownership on the board of directors’ monitoring and advisory roles. The board of directors’ effectiveness is measured as an interaction term of the board size and meetings of the board of directors. The study finds that government-linked energy and petrochemical corporations’ ownerships are inversely related to the board of directors’ effectiveness. This result is sensitive to the measurement of the board of directors’ effectiveness as each variable consisting of the board of directors’ effectiveness was examined individually. The study also finds that government-linked corporations’ ownership had a strong negative impact on the board size. In contrast, the proposed model does not provide any evidence supporting the relationship of the government-linked corporations’ ownerships with board meetings. Overall, the evidence supports the substitution hypothesis on the relationship of government-linked corporations and board of directors’ effectiveness.

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PENGARUH GOOD CORPORATE GOVERNANCE TERHADAP KINERJA KEUANGAN PERUSAHAAN PERBANKAN YANG TERDAFTAR DI BEI TAHUN 2014-2018

E-Jurnal Manajemen Universitas Udayana ◽

10.24843/ejmunud.2021.v10.i03.p05 ◽

2021 ◽

Vol 10 (3) ◽

pp. 290

Author(s):

Della Ayu Rizki ◽

Eni Wuryani

Keyword(s):

Corporate Governance ◽

Financial Performance ◽

Board Of Directors ◽

Audit Committee ◽

Banking Sector ◽

Audit Quality ◽

Institutional Ownership ◽

External Audit ◽

Good Corporate Governance ◽

The Board Of Directors

The purpose of this study was to determine the effect of implementing good corporate governance on financial performance in banking companies. Proxies for good corporate governance are the board of directors, the independent board of commissioners, the audit committee, external audit quality, and institutional ownership. Measurement of banking financial performance uses Return on Assets (ROA). The sample used is 26 samples of banking sector companies listed on the IDX during 2014-2018. The analysis technique uses multiple regression analysis. The results showed that the board of directors and institutional ownership have an influence on financial performance, while the independent board of commissioners, audit committee, and external audit quality have no influence on financial performance. Keywords: Good Corporate Governance;Financial Performance;Banking Sector.

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Impact of Corporate Governance on Corporate Value: Research in Vietnam

Research in World Economy ◽

10.5430/rwe.v11n1p161 ◽

2020 ◽

Vol 11 (1) ◽

pp. 161

Author(s):

Nguyen Thi Thanh Phuong ◽

Dang Ngoc Hung

Keyword(s):

Corporate Governance ◽

Board Of Directors ◽

Firm Value ◽

Direct Impact ◽

Book Value ◽

Research Results ◽

Board Of Director ◽

The Board Of Directors ◽

The Individual ◽

The Impact

The paper examines the impact of corporate governance (CG) on firm value (FV) of enterprises in Vietnam. We consider the GC issue from the individual aspects of each member of the Board of Directors (BOD). The research uses GLS regression model, data collected at energy enterprises listed on the stock market in Vietnam during the period 2008 - 2018, with 2937 observations. The research results have found that the size of the BOD has a direct impact on FV, while it is interesting that the Board of Directors' independence has a direct impact on FV when measured by market value, but is in an inverse relation with FV if measured at book value. In addition, BOD chairperson cum CEO has an inverse impact on FV and female BOD members do not have an impact on FV. Further, the research results also prove that an enterprise’s size is directly related with its value, whereas financial leverage is inversely related with the enterprise’s value. Empirical research results serve as a useful basis for enterprises to increase their value, thus enabling the consideration of factors of the board of director at each enterprise.

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Banking Governance in The Era of Digital Transformation

Journal of Research in Administrative Sciences ◽

10.47609/jras2020v9i2p3 ◽

2020 ◽

Vol 9 (2) ◽

pp. 10-16

Author(s):

Badr FIGUIGUI ◽

◽

Fouad MACHROUH ◽

Keyword(s):

Corporate Governance ◽

Board Of Directors ◽

Two Dimensions ◽

Digital Transformation ◽

Governance System ◽

Blockchain Technology ◽

Theoretical Approaches ◽

Challenges And Opportunities ◽

The Board Of Directors ◽

The Impact

For nearly four decades, we have been witnessing the development of the concept of corporate governance. This concept has evolved considerably since its appearance because of its multidisciplinary nature and the high diversity of its theoretical grids. There are two main theoretical approaches. The disciplinary and cognitive approaches. Given the challenges and opportunities of digital transformation and its inevitable impact on the bank's business model, it is natural that it also impacts on its governance. This impact can be analyzed from the two dimensions of governance. First, a cognitive dimension, which concerns all the players in the governance system, particularly the board of directors. Then, a disciplinary dimension dictated by the radical transformation of the confidence relations (Board of Directors/managers) established by the blockchain technology which could call into question the notion of opportunism advocated by the agency theory as the basis of the disciplinary approach of governance. In this paper, we will explore from an unprecedented analysis of the impact of digital transformation on banking governance. This analysis will focus on the two dimensions of governance: disciplinary and cognitive. Finally, an empirical study will be presented on the digital transformation at the level of Moroccan banks which refers in particular to the cognitive aspects of governance. Keywords: corporate governance, disciplinary governance, cognitive governance, banking governance, digital transformation

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THE IMPACT OF CORPORATE GOVERNANCE STRUCTURE ON THE EXTERNAL AUDIT FEE IN SHARIA SHARES

Jurnal Ekonomi dan Bisnis Airlangga ◽

10.20473/jeba.v31i12021.1-13 ◽

2021 ◽

Vol 31 (1) ◽

pp. 1

Author(s):

Abdul Rasid

Keyword(s):

Corporate Governance ◽

Board Of Directors ◽

Hypothesis Test ◽

Panel Data Analysis ◽

Internal Audit ◽

Audit Committees ◽

Audit Fee ◽

The Board Of Directors ◽

Average Size ◽

The Impact

Introduction: This study aims to determine the impact of corporate governance structures on external fees in sharia stocks that are consistently listed in JII in 2013-2018.Methods: The number of samples in this study recorded 12 consistent sharia stocks listed in the years 2013-2018. This study uses a quantitative approach with panel data analysis method.Results: The results show that the average size of the board of commissioners is six to seven people, the average size of the board of directors is seven to eight people, the average size of the audit committees is three to four people, and the average size of the internal audit is fifteen to sixteen people. The hypothesis test shows that variables which have a significant impact on the audit fee are the size of the board of commissioners and the internal audit. Meanwhile, the size of the board of directors and the audit committees do not have a positive impact on audit fees.Conclusion and suggestion: Companies use more funding from debt than their own capital. Judging from the liquidity ratio, it shows that the company is in a liquid state, which is very capable of fulfilling obligations or debts that must be immediately paid by the company.

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Board of directors’ characteristics and bank performance: Evidence from the Egyptian banking sector

Journal of Governance and Regulation ◽

10.22495/jgrv9i4art10 ◽

2020 ◽

Vol 9 (4) ◽

pp. 116-125

Author(s):

Mohamed Hassan Abdel-Azim ◽

Sabah Soliman

Keyword(s):

Board Of Directors ◽

Banking Sector ◽

Performance Indicator ◽

Independent Directors ◽

Bank Performance ◽

Return On Assets ◽

Stock Return Volatility ◽

The Board Of Directors ◽

Foreign Directors ◽

The Impact

This paper examines the impact of the board of directors’ characteristics on bank performance in an Egyptian context. Board of directors’ size and composition diversity in terms of gender, nationality, and independence are used as proxies for the board of directors’ characteristics. Bank performance is measured using the return on assets as an accounting-based profitability indicator besides stock return volatility as a market-based performance indicator while controlling for the bank, regulatory and country-specific characteristics. Regression analysis is performed for a sample of 21 Egyptian banks covering the period from 2012 till 2018. The results show that banks with large boards including a high proportion of female and foreign directors achieve higher performance. Also, the higher is the proportion of independent directors, the lower is the performance, which contradicts with the agency theory proponents. Most importantly, the findings provide empirical evidence that market-based performance indicators react negatively to females’ directorship, while the opposite is found with independent directors as reflected in the positive market reaction. The findings are highly relevant since improved financial performance is one of the key objectives of bank supervisors and regulators to sustain economic growth.

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