scholarly journals Analyzing the Impact of Corporate Governance Factors on Enterprise Value and Capitalization

2021 ◽  
Vol 26 (3) ◽  
pp. 291-309
Author(s):  
Ol'ga D. KOSORUKOVA
Keyword(s):  
Corporate Governance ◽  
Value Management ◽  
Financial Indicators ◽  
Business Valuation ◽  
Enterprise Value ◽  
Value Based Management ◽  
Methods Of Synthesis ◽  
The Impact ◽  
Made In

Subject. The article focuses on business valuation methods and factors with reference to corporate governance principles. Objectives. I analyze how corporate governance factors influence the value and capitalization of public joint-stock companies, and make my suggestions concerning financial and administrative decisions in line with value-based management. Methods. The study is based on methods of synthesis, deduction, induction, statistical analysis, comparison and generalization. Results. Having analyzed the impact of such factors, as revenue, dividends paid, return on sale and equity, for an 11-year life span (2009–2019), on capitalization and value of the population made up of 20 Russian public joint-stock companies from four sectors, as classified by the number of owners and State interest, I figured out that capitalization enterprise value in Russia most of all depend on indicators of companies if it has 11 owners and more (71%), companies without the State interest (67%). As for basic factors, these are revenue and dividend policy that have the strongest effect on enterprise value, while capitalization depends on all the analyzable factors. Conclusions and Relevance. Currently, business valuation and business valuation management are critical for making correct strategic administrative decision. Doing so, the appraiser shall not only measure enterprise value with available financial results, but also consider its various non-financial indicators, which inter alia include corporate governance. Based on corporate governance principles set forth in the Letter of the Bank of Russia, I pointed out that definitely influence the enterprise value. Based on the above analysis, I determined what best results the Russian public joint-stock companies can attain in their corporate governance by sector, the number and quality of owners. Following the findings, I suggest how financial and administrative decisions on enterprise value management should be made, in line with the value-based management principles.

The methodology to assess the impact of corporate governance on the enterprise value

2021 ◽  
Vol 27 (9) ◽  
pp. 2008-2032
Author(s):  
Ol'ga D. KOSORUKOVA
Keyword(s):  
Corporate Governance ◽  
Business Value ◽  
Public Companies ◽  
Business Valuation ◽  
Corporate Managers ◽  
Enterprise Value ◽  
Corporate Governance Code ◽  
Pricing Factors ◽  
Legal Forms ◽  
The Impact

Subject. The article investigates pricing factors that determine the enterprise value with respect to the effect of corporate governance factors. Objectives. I analyze the impact of corporate governance factors on the enterprise value and build a technique for assessing the effect of corporate governance on the business valuation of the Russian public companies. Methods. The study relies upon the synthesis, deduction, induction, methods of statistical analysis, comparison and generalization. Results. I devised the method, which comprises five steps considering the effect of corporate governance factors on the enterprise value. Following the steps of the method, the specifics of the valuation subject is analyzed in terms of business and legal forms, the use of modern Russian corporate governance principles, the composition and the number of shareholders, industry the entity operates in, and fundamental metrics of the enterprise value. Conclusions and Relevance. Currently, there is few information in the literature about the impact of corporate governance principles set forth in the 2014 Corporate Governance Code, on business value. The article presents the method for assessing the impact of corporate governance on the business valuation, which accounts for the specifics of business and legal forms in terms of corporate governance principles, capital structure, the number of shareholders, the State’s involvement, industry, and fundamental metrics of business valuation. The proposed method can be used by financial analysts, appraisers, corporate managers so as to build and manage the enterprise value.

Do disclosure and transparency affect bank’s financial performance?

2019 ◽  
Vol 19 (6) ◽  
pp. 1344-1361
Author(s):  
Isaiah Oino
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Financial Performance ◽  
Financial Institutions ◽  
Content Type ◽  
Loan Portfolios ◽  
Cent Level ◽  
Transparency And Disclosure ◽  
The Impact

Purpose The purpose of this paper is to examine the impact of transparency and disclosure on the financial performance of financial institutions. The emphasis is on assessing transparency and disclosure; auditing and compliance; risk management as indicators of corporate governance; and understanding how these parameters affect bank profitability, liquidity and the quality of loan portfolios. Design/methodology/approach A sample of 20 financial institutions was selected, with ten respondents from each, yielding a total sample size of 200. Principal component analysis (PCA), with inbuilt ability to check for composite reliability, was used to obtain composite indices for the corporate governance indicators as well as the indicators of financial performance, based on a set of questions framed for each institution. Findings The analysis demonstrates that greater disclosure and transparency, improved auditing and compliance and better risk management positively affect the financial performance of financial institutions. In terms of significance, the results show that as the level of disclosure and transparency in managerial affairs increases, the performance of financial institutions – as measured in terms of the quality of loan portfolios, liquidity and profitability – increases by 0.3046, with the effect being statistically significant at the 1 per cent level. Furthermore, as the level of auditing and the degree of compliance with banking regulations increases, the financial performance of banks improves by 0.3309. Research limitations/implications This paper did not consider time series because corporate governance does not change periodically. Practical implications This paper demonstrates the importance of disclosure and transparency in managerial affairs because the performance of financial institutions, as measured in terms of loan portfolios, liquidity and profitability, increases by 0.4 when transparency and disclosure improve, with this effect being statistically significant at the 1 per cent level. Originality/value The use of primary data in assessing the impact of corporate governance on financial performance, instead of secondary data, is the primary novelty of this study. Moreover, PCA is used to assess the weight of the various parameters.

Social and Psychological Effects of Major Craniofacial Deformity

1992 ◽  
Vol 29 (6) ◽  
pp. 578-584 ◽  
Author(s):  
Thomas Pruzinsky
Keyword(s):  
Quality Of Life ◽  
Subjective Evaluation ◽  
Psychological Effects ◽  
Family Factors ◽  
Facial Deformity ◽  
Social Stressors ◽  
The Social ◽  
The Impact ◽  
Made In

This paper discusses the social and psychological experiences of patients with the most severe forms of craniofacial deformity. The paper concludes that individuals with the most severe forms of craniofacial deformities are at risk for experiencing social and psychological stress and for having their quality of life negatively impacted by the experience of having a facial deformity. Much of the stress experienced by these individuals is the result of the negative social response to their facial deformity. It is emphasized that many patients will not develop psychopathology, because of intervening personality and family factors that may ameliorate these negative social stressors. The excellent progress made in assessing, preventing, and treating the negative psychosocial impact of facial deformity is noted. Finally, in attempting to understand the impact of facial deformity on quality of life, emphasis is placed on the subjective evaluation of these factors by each individual patient and family.

scholarly journals Corporate Governance Role in Improving the Financial Information Quality within the Saudi Electricity Company: دور حوكمة الشركات في تحسين جودة المعلومات المحاسبة في الشركة السعودية للكهرباء

2020 ◽  
Vol 4 (1) ◽  
Author(s):  
Arwa Hassan Baabbad
Keyword(s):  
Corporate Governance ◽  
Significant Relationship ◽  
Information Quality ◽  
Survey Methodology ◽  
Governance System ◽  
And Performance ◽  
The Right ◽  
Descriptive Survey ◽  
The Impact

The present study aimed to find out the role of corporate governance in improving the quality of information in the Saudi Electricity Company. The researcher used the descriptive survey methodology. As to achieve the study objectives، the researcher utilized the questionnaire tool، in which the study sample (50) members of SEC distributed into employees، managers and decision makers. The study concluded to many results، among of which are: there is a statistically significant relationship between the availability of corporate governance system and performance improvement of the Saudi Electricity Company، there is a statistically significant relationship between corporate governance and appropriateness in improving the performance of the Saudi Electricity Company، it was also found that there is a statistically significant relationship between corporate governance and optimal disclosure in improving the performance of Saudi Electricity Company. The study also found that there is a statistically significant relationship between corporate governance and the right timing in improving the performance of the Saudi Electricity Company. The study suggested number of recommendations، among of which are: the importance of the shareholding companies to comply with the corporate governance regulations considering the interest of companies and their shareholders and all other parties benefiting from the financial statements، attempting to take advantage of the multiple benefits of corporate governance and expand its application in the various economic units in Saudi Arabia، conduct studies on companies that applies the requirement of the Corporate Governance Regulations، and the impact of the application of corporate governance on the shares of these units to find out the relationship between the quality of accounting information in light of the application of corporate governance and the stock market from another angle، imposing deterrent penalties concerning the Corporate Governance Regulations on companies that did not apply this regulation.

scholarly journals The Overseas Experience of Audit Committee and Audit Fees: Empirical Evidence from China

Complexity ◽  
2021 ◽  
Vol 2021 ◽  
pp. 1-16
Author(s):  
Chengai Li ◽  
Lin Pan ◽  
Meilan Chen
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Learning Experience ◽  
Accounting Information ◽  
Audit Fees ◽  
Positive Influence ◽  
Positive Role ◽  
Quality Of Accounting Information ◽  
The Impact

The complexity of audit committee experience, including the overseas experience, has an important impact on corporate governance. In this paper, we study the impact of the overseas experiences of the members of audit committee on audit fees. Our empirical analysis and results show that the audit committee overseas experience can significantly increase audit fees. Further, the positive influence of the audit committee overseas experience on audit fees is more pronounced in state-owned enterprises and regions with weak marketization. In addition, we divide the overseas experience into overseas learning experience and overseas working experience. We find that both types of experience present in the audit committee significantly increase the audit fees. Finally, we find that the audit committee overseas experience can significantly improve the quality of accounting information and play a positive role in corporate governance.

scholarly journals Large pension funds and the corporate governance practices of Brazilian companies

2012 ◽  
Vol 9 (2) ◽  
pp. 76-84 ◽  
Author(s):  
Rodrigo Miguel de Oliveira ◽  
Ricardo Pereira Câmara Leal ◽  
Vinicio de Souza Almeida
Keyword(s):  
Corporate Governance ◽  
Institutional Investors ◽  
Pension Funds ◽  
Brazilian Government ◽  
Good Corporate Governance ◽  
Political Views ◽  
Governance Practices ◽  
Corporate Governance Quality ◽  
The Impact

We do not find any consistent evidence that the presence of the largest Brazilian pension funds as relevant shareholders is associated to higher corporate governance scores by public Brazilian companies. Even though companies with institutional investors as relevant shareholders presented a higher average corporate governance score than other companies, they were also larger and had greater past profitability than other companies, which are common attributes of firms with better corporate governance according to the literature. The impact of Brazilian institutional investors on the corporate governance quality of their investees is either negligible or cannot be captured by the proxies we employed. Finally, we note that these two pension funds may represent the policy and political views of the incumbent Brazilian government and that the actions of their board appointees may or not reflect what is understood as good corporate governance practices.

scholarly journals ANALYSIS IMPLEMENTATION PARTNERSHIP PROGRAMS AS EVALUATION MATERIALS FOR EQUATING EDUCATION QUALITY IN INDONESIA

2020 ◽  
Vol 8 (2) ◽  
pp. 93-101
Author(s):  
Widowati Pusporini ◽  
Zamroni ◽  
Mansur Arsyad ◽  
Qomariyatus Sholihah
Keyword(s):  
School Principals ◽  
School Principal ◽  
Education Quality ◽  
Curriculum Management ◽  
School Programs ◽  
Almost All ◽  
The Impact ◽  
Partnership Program ◽  
Made In

Purpose of the study: This research was compiled to analyze the improvement of the quality of education in Indonesia. The purpose of program evaluation is to know for sure whether the achievement of the results, progress, and obstacles encountered in the implementation of the program. Recognizing the low competency of school principals of the principal's partnership programs. Methodology: The type of this research is development, research which aims to produce instruments to evaluate a school principal partnership program. The development design in this study using the Plomp model. The data was analyzed qualitatively as input for improvement of activities in 2018. The following data was collected using questionnaires, interviews, and observations. Main Findings: The data and analysis show that the partnership program has recorded various advances made in the impact schools — both those related to curriculum management and implementation of supervision of learning and strengthening of school ecosystems. The effectiveness of school programs is very dependent on the carrying capacity of each school. However, it is the real result of this program is the change in mindset not only for principals but for almost all stakeholders. Applications of this study: This Study is analyzed based on the school principal partnership program report to become recommendation and references for another partnership programs, improving the competency of school principals, and developing remote area (3T regions/frontier, outermost, and disadvantaged in Indonesia national scale) of Indonesia. Novelty/Originality of this study: The findings imply that the partnership program has a significant impact on the equity growth in remote areas.

scholarly journals The Impact of Inventory Valuation Methods on Corporate Financial Reports.

2016 ◽  
Vol 12 (3) ◽  
pp. 125-134
Author(s):  
A. Bruce Caster ◽  
Wanda K. Causseaux
Keyword(s):  
Learning Outcomes ◽  
Business Students ◽  
Balance Sheet ◽  
Financial Statement ◽  
Financial Indicators ◽  
Hypothetical Case ◽  
Financial Reports ◽  
Income Statement ◽  
The Impact

Business students are generally introduced to LIFO and FIFO in their first accounting course. However, that introduction generally focuses exclusively on computing ending inventory and cost of goods sold.  Students are rarely challenged to compute or analyze the impacts of LIFO and FIFO on the income statement, balance sheet, or cash flow statement.  This paper presents a hypothetical case designed to provide a framework within which students can compute, analyze, and discuss the financial statement impacts and economic impacts of choosing one or the other of these accounting methods.  The questions in this case also address the effects of this choice on financial indicators like liquidity ratios, the impacts of each method on quality of earnings, and the potential impacts of IFRS convergence on companies that are currently using LIFO.One important feature of this case is its adaptability to support a variety of learning outcomes in different courses.  This flexibility results from making the questions posed in the case as independent of each other as possible.  That independence allows a professor to select only the questions that support the learning outcomes for that professor’s specific course.  The teaching notes discuss in detail possible course applications and uses of this case.

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