Corporate Governance and Firm Profitability: Evidence from Korea before the Economic Crisis

ABSTRACTGood Corporate Governance (GCG) is a important measure in the corporation an business practice. Some fact that showed lowed rank in the implementation of GCG in Indonesia, had been one of important factors that caused economic crisis and slow face of economic growth in Indonesia, This is had been a trigger to all stakeholders to continue encourage implementation of GCG in Indonesia. There are four important principal in GCG that now continue to encourage, fairness, transparency, accountability, and responsibility.At the level of practice, the application of GCG in Indonesia, especially in BUMN and BUMD is still very low. Some of the obstacles that hinder the implementation of GCG in Indonesia, especially in BUMN and BUMD are the internal constraints, external constraints, and constraints of ownership. To overcome the obstacles it needs to be stressed to continue to raise awareness of all stakeholders about the important of GCG implementation, strengthening the legal basis of GCG implementation, strengthening government system reform until clean government that free from corruption had been establish, and do some reform throughout the business corporation that runs in Indonesia. Keywords : strategy, GCG, BUMN, BUMD STRATEGI PENGEMBANGAN DAN PENERAPAN GOOD CORPORATE GOVERNANCE (GCG) BAGI BUMN DAN BUMD DI INDONESIA ABSTRAKGood Corporate Governance (GCG) merupakan sebuah instrumen penting dalam praktek bisnis dan perusahaan. Fakta menunjukkan bahwa rendahnya penerapan GCG di Indonesia telah menjadi salah satu faktor penting terjadinya krisis ekonomi di Indonesia serta lambatnya pertumbuhan ekonomi di Indonesia. Hal ini telah menjadi pendorong berbagai pihak untuk terus mendorong penerapan GCG di Indonesia. Empat prinsip penting dalam GCG yang saat ini terus didorong untuk diterapkan adalah kewajaran, transparansi, akuntabilitas, dan responsibilitas. Pada tataran praktek, penerapan GCG di Indonesia, khususnya pada BUMN dan BUMD masih sangat rendah. Beberapa kendala yang menghambat penerapan GCG di Indonesia, khususnya pada BUMN dan BUMD adalah kendala internal, kendala eksternal, dan kendala kepemilikan. Untuk mengatasi berbagai kendala tersebut maka perlu ditekankan untuk terus meningkatkan kesadaran berbagai pihak akan pentingnya penerapan GCG, memperkuat dasar hukum penerapan GCG, mereformasi sistem pemerintahan hingga terciptanya praktek clean government yang bebas KKN serta reformasi di seluruh korporasi bisnis yang berjalan di Indonesia. Kata kunci : strategy, GCG, BUMN, BUMD

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How the Greek Crisis Determined Firm Profitability and Optimal Debt Ratio

Advances in Finance, Accounting, and Economics - Perspectives, Trends, and Applications in Corporate Finance and Accounting ◽

10.4018/978-1-5225-6114-9.ch001 ◽

2018 ◽

pp. 1-31 ◽

Cited By ~ 1

Author(s):

Ioannis Katsampoxakis ◽

Haralampos Basdekis ◽

Konstantinos Anathreptakis

Keyword(s):

Economic Crisis ◽

Turning Point ◽

Debt Ratio ◽

Theoretical Relationship ◽

Empirical Results ◽

Greek Crisis ◽

Time Period ◽

Firm Profitability ◽

Deep Recession

The goal of this chapter is to assess the influence of specific corporate and market features on Greek firms' profitability and the determination of the optimal debt ratio before and during the Greek crisis. The empirical results exhibit an average profitability of 6.97%, which varies significantly both between firms and during the time period examined. Another finding of this study is the verification of the theoretical relationship between the independent variables and Greek firms' profitability between 2005 and 2016. Related to the determination of the optimal debt ratio of Greek firms, the authors found that during the first sub-period examined (before the Greek economic crisis – 2005-2009), the results extracted are not consistent with the MM theory in contrary to the second sub-period (the period of the deep recession 2010-2016). During this period, the optimal debt ratio is estimated to be 40.9% and the turning point decreased considerably compared to the whole period sample (52.6%) 2005-2016.

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Management, Macht und Moral

Der Betriebswirt: Volume 54, Issue 3 - Der Betriebswirt ◽

10.3790/dbw.51.4.12 ◽

2010 ◽

Vol 51 (4) ◽

pp. 12-17 ◽

Cited By ~ 1

Author(s):

Ulrike Reisach

Keyword(s):

Corporate Governance ◽

Economic Crisis ◽

Balanced Scorecard ◽

Decision Makers ◽

Corporate Ethics ◽

Balance Scorecard ◽

Multiple Stakeholders ◽

Good Corporate Governance ◽

Essential Tool ◽

External Stakeholders

Management und Macht sind sehr eng mit einander verwoben. Dieser Beitrag beschreibt und Kriterien für den verantwortungsvollen Umgang mit persönlicher und unternehmerischen Macht basierend auf einer Balance Scorecard unternehmensethischer Kriterien. Diese Kriterien setzen eindeutige Standards für den Gebrauch von Macht innerhalb der Unternehmen und in Bezug auf ihre Kunden und Wettbewerber, wie auch auf alle Interessensgruppen des Betriebs. Darüberhinaus bieten diese Kriterien ein wesentliches Instrument für die Unternehmensführung. Wer Macht langfristig erfolgreich ausüben will, braucht die öffentliche Zustimmung zu Produkt, Geschäftsmodell und Unternehmenspolitik. Erfolg muss immer auch als Mehrwert für die Gesellschaft definiert sein. Nur so können Unternehmen die besten Mitarbeiter gewinnen und zum unternehmerischen Mit- und Weiterdenken, zum Einbringen ihrer vielfältigen Kreativitätspotenziale motivieren. Nur so können sie Kunden von ihrer Einzigartigkeit überzeugen und Vertrauen schaffen. Management and power are closely interlinked. The article explains objectives and criteria for the responsible use of personal and corporate power, based on a balanced scorecard model for corporate ethics. Those criteria set clear standards for the use of power inside the company and towards its multiple stakeholders. Going beyond the usual appeals those criteria are an essential tool to enhance and monitor good corporate governance. Convincing internal and external stakeholders that those standards are taken serious and put into practice by corporate decision makers helps regaining confidence and reputation that has been fading during the economic crisis. Keywords: management, macht und moral

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DOES CORPORATE GOVERNANCE PREDICT FIRM PROFITABILITY? AN EMPIRICAL STUDY IN OMAN

The International Journal of Accounting and Business Society ◽

10.21776/ub.ijabs.2020.28.1.7 ◽

2020 ◽

Vol 28 (1) ◽

pp. 161-177

Author(s):

Essia Ahmed ◽

Tariq Alabdullah ◽

Mohammed Thottoli ◽

Eny Maryanti

Keyword(s):

Corporate Governance ◽

Audit Committee ◽

Design Methodology ◽

Annual Reports ◽

Fiscal Year ◽

Cross Sectional ◽

Financial Firms ◽

Firm Profitability ◽

The Impact ◽

Practical Implications

ABSTRACT Purpose — This research aims to test whether corporate governance (CG) predicts firm profitability in a sample of firms listed in the financial mark in Oman. Design/methodology/approach — This research analyses cross-sectional data across 50 non-financial firms. This study used annual reports for the fiscal year 2018 to analyze the impact of CG on firm profitability. This work tested its hypotheses and analyzing them via the Partial Least Squares (PLS). Findings — The result of this research indicates that a positive link between all the predictors is found: board size, ownership, gender, and audit committee, and firm profitability (financial performance). Practical Implications — Originality/value — This research is the first of its kind via examining the link between this set of predictors of (CG) and firm performance in the Omani context. The present study provides empirical evidence for the researchers, policymakers, and other stakeholders.

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