Environmental Uncertainty and Firm Performance: The Moderating Role of Corporate Governance

2020 ◽  
Vol 24 (2) ◽  
pp. 187
Author(s):  
Reyry Aprisma, Erina Sudaryati
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Stock Exchange ◽  
Environmental Uncertainty ◽  
Sampling Techniques ◽  
Manufacturing Companies ◽  
Negative Effect ◽  
The Impact ◽  
Moderating Role

This research aimed to examine the effect of environmental uncertainty on firm performance. This research added corporate governance as a moderating variable. The research samples were manufacturing companies listed on the Indonesia Stock Exchange for the period 2014-2018 which were selected using purposive sampling techniques. The samples analyzed were 442 company data. The result showed that environmental uncertainty has a negative effect on firm performance. The result indicated environmental uncertainty causes operating expenses to increase so that the firm performance decreases. In addition, the results showed that corporate governance reduced the effect of environmental uncertainty on firm performance. The result indicated corporate governance is able to reduce the impact of environmental uncertainty so that firm performance increases.

scholarly journals Impact of Cash Holding on Firm Performance with Moderating Role of Corporate Governance

2021 ◽  
Vol 6 (2) ◽  
pp. 87-99
Author(s):  
Naveed Anjum ◽  
Dr. Faisal Khan ◽  
Shoib Hassan ◽  
Dr. Muhammad Arif
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Unobserved Heterogeneity ◽  
Stock Exchange ◽  
Generalized Method Of Moments ◽  
Secondary Data ◽  
Cash Holding ◽  
Financial Firms ◽  
Moderating Role

The main aim of this research is to analyze the association between cashholding and firm performance with moderating role of corporate governance. For the purpose of analysis, secondary data of 145 non-financial firms listed at Pakistan Stock Exchange (PSX) is taken from 2006-2017. The dynamic Generalized Method of Moments (GMM) is applied to cater the problem of unobserved heterogeneity. The results of this study suggest that cash holding has a significant impact on firm performance. Moreover, corporate governance significantly moderates the relationship between cash holding and firm performance.

scholarly journals The role of corporate governance on CSR disclosure and firm performance in a voluntary environment

2019 ◽  
Vol 20 (2) ◽  
pp. 294-306 ◽  
Author(s):  
Aruoriwo Marian Chijoke-Mgbame ◽  
Chijoke Oscar Mgbame ◽  
Simisola Akintoye ◽  
Paschal Ohalehi
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Developed Countries ◽  
Economic Benefits ◽  
Data Set ◽  
Content Type ◽  
Csr Disclosure ◽  
The Impact ◽  
Moderating Role

Purpose This study aims to investigate the impact of corporate social responsibility disclosure (CSRD) on firm performance and the moderating role of corporate governance on the CSRD–firm performance relationship of listed companies in Nigeria. Design/methodology/approach The paper uses a panel data set comprising 841 firm-year observations for the period covering 2007-2016. Fixed effect regression analysis was used to examine the relationship between CSRD and firm performance, and the moderating role of corporate governance in the CSRD–firm performance relationship. Findings The results of the study show that there are positive performance implications for firms that engage in CSRD. Although this study finds no effect of board size on the CSRD–firm performance relationship, it provides a strong evidence of a positive effect of board independence on the CSR–firm performance relationship. Practical implications The study contributes to the understanding of CSRD–firm performance relationship by providing evidence of the moderating role of corporate governance. It is, therefore, recommended that a stronger regulation be put in place for CSR engagement and the disclosure of same in Nigeria as well as robust measures for the enforcement of corporate governance mechanisms because there are economic benefits to be derived. Originality/value The findings contribute to the literature by providing up-to-date and original insights on the CSRD–firm performance relationship within a developing country context. It also uses an uncommon method of measuring CSRD, taking into account the institutional biases that may arise from other methods used in studies on developed countries.

The Role of Corporate Governance and Environmental Committees on Greenhouse Gas Disclosure

2019 ◽  
Vol 9 (7) ◽  
pp. 1403
Author(s):  
Daniel T. H MANURUNG ◽  
Andhika Ligar HARDIKA ◽  
Dini W. HAPSARI ◽  
Minda Maulina SEBAYANG
Keyword(s):  
Corporate Governance ◽  
Greenhouse Gases ◽  
Greenhouse Gas ◽  
Sampling Method ◽  
Stock Exchange ◽  
Gender Diversity ◽  
Manufacturing Companies ◽  
And Gender ◽  
The Impact

The study aims to determine the impact of corporate governance (board of commissioners, directors and gender diversity) and environmental committees in greenhouse gas disclosure. The sampling method in this study using purposive sampling method with a total of 26 manufacturing companies listed in Indonesia Stock Exchange by using multiple regression analysis. The results show that the role of the board of commissioners has not been able to provide control over the reduction of greenhouse gases on the company, the board of directors has no effect on the disclosure of greenhouse gases refuse to make emission gas reduction due to litigation pressure and expenditure, gender diversity has not been able to control the role of women and men in decision-making and risk and environmental committees have been little able to contribute to the disclosure of greenhouse gases as it is expected that the establishment of an environmental committee on the company.

Environment uncertainty and a firm’s strategic change the moderating role of political connection and family ownership

2019 ◽  
Vol 10 (4) ◽  
pp. 313-327
Author(s):  
Kai Wang ◽  
Massimiliano Matteo Pellegrini ◽  
Jiaan Xue ◽  
Cizhi Wang
Keyword(s):  
Strategic Change ◽  
Stock Exchange ◽  
Environmental Uncertainty ◽  
Family Ownership ◽  
Political Connection ◽  
Content Type ◽  
Strategic Changes ◽  
The Impact ◽  
Moderating Role

Purpose Strategic change is integral to the survival and development of firms. The purpose of this paper is to analyze the impact of environmental uncertainty on a firm’s strategic change and further demonstrates the moderating role of political connection and family ownership on the relationship between environmental uncertainty and a firm’s strategic change. Design/methodology/approach This paper uses the population sample of Chinese firms listed on the Shenzhen Stock Exchange and the Shanghai Stock Exchange from 2008 to 2014 and quantitatively tests hypotheses through correlation analysis, regression analysis and other methods. Findings Environmental uncertainty has a positive effect on the degree of strategic changes made. Political connection and family ownership negatively moderate the impact of the two dimensions of environmental uncertainty (environmental dynamism and environmental munificence) on strategic changes. Originality/value Conclusions enrich the research of other studies on firms’ strategic changes. From an open systems perspective, this paper reveals the influences of external environmental factors on firms’ strategic changes. In addition to this, in analyzing the ways in which environmental uncertainty affects a firm’s strategic change, the research expands the application scope of information processing theory and resource-based view. This paper also provides significant practical observations on firms’ strategic decision making in this area.

scholarly journals A ROLE A CORPORATE GOVERNANCE AND FIRM’S ENVIRONMENTAL PERFORMANCE: A MODERATING ROLE OF INSTITUTIONAL REGULATIONS

2019 ◽  
Author(s):  
Farheen Akram ◽  
Muhammad Abrar-ul-Haq ◽  
Saqlain Raza
Keyword(s):  
Climate Change ◽  
Corporate Governance ◽  
Environmental Performance ◽  
Global Scale ◽  
Manufacturing Companies ◽  
State Regulations ◽  
Governance Environment ◽  
The Impact ◽  
Moderating Role

Climate change has become one of the biggest issue across the globe as most countries have been bearing the consequences of this phenomenon on a global scale. Countries have been drafting environmental regulations to help mitigate the environmental pollution caused by climate change. Therefore, the implications of environmental policies in various sectors of the economy are dependent on state regulations. The main objective of this study is to investigate the impact of corporate governance on environmental performance. Furthermore, this study examines the impact of institutional regulations on the relationship of corporate governance and firms’ environmental performance. The data was collected from the top 120 manufacturing companies that are based in Pakistan, India, China and Bangladesh. The binary logit regression methodology was employed in this study. The results indicate that the attributes of corporate governance have a positive and significant impact on green performance. In addition, the results were also positive and significant on the moderating role of institutional regulation for corporate governance and firm performance. Hence, based on the empirical findings, this study recommends strict environmental institutional regulations to further enhance environmental performance. Keywords:Green performance, corporate governance, environment, institutional policies

scholarly journals Evaluating the Impact of Corporate Governance on Firm Performance Using Board Index

2016 ◽  
Author(s):  
Basil Okoth ◽  
Metin Coşkun
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Positive Relationship ◽  
Stock Exchange ◽  
Negative Relationship ◽  
Vital Role ◽  
Outside Directors ◽  
General Business ◽  
The Impact

In 2013, the CMA at the İstanbul Stock Exchange increased the weight assigned to the Board of Directors component of its Corporate Governance Index to 35% from the previous 25%. Interpreting this as a recognition of the increasing vital role of the board, this study seeks to enhance the work of Abdıoğlu and Kılıç (2015) by putting more focus on the role of women in the boards and the effect of the busy chairman as well as the presence of outside directors on the effectivity of the Board. (The general business structure is associated with family owned groups and holdings which results into a network of intertwined board membership and cases of multiple directorship where, one board chairman can hold the same position or any directorship in as many as ten firmshence the busy chairman). I employ a different method of evaluating performance (EVA) together with the accounting measures of ROE and ROA (as opposed to the overused Tobin’s Q), which I regress against the Board Index to be created. The focus is on firms on the BIST 100 index (excluding financial) between 2009 and 2013. The results reveal that the BINDEX has a significant and positive relationship with firm performance as measured by EVA. A second model reveals no relationship between the BINDEX and firm ROA, similar to the results of Kiliç and Abdioğlu (2015). ROA however has a positive relationship with the proportion of female directors in the board, as earlier reported by LückerathRovers (2013). Another model using ROE as the proxy for performance registers a significant negative relationship with the index. The contradiction obtained in the results from these three models underscore the importance choosing the right methods when estimating the performance of a firm.

scholarly journals Institutional Ownership Board Characteristics and Firm Performance

2021 ◽  
Vol 12 (2) ◽  
pp. 1-15
Author(s):  
Abdul Waheed ◽  
Qaisar Ali Malik
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Financial Institutions ◽  
Stock Exchange ◽  
Institutional Ownership ◽  
Dynamic Panel Data ◽  
Performance Variables ◽  
And Performance ◽  
Moderating Role

This research study attempts to investigate the moderating role of financial institutions with corporate governance and firm performance variables in the light of a purposely developed contingent theoretical framework. The current study analyzed an unbalanced panel of 287 non-financial sector firms listed on Pakistan Stock Exchange (PSX) from 2005 to 2015 by using the technique Arellano-Bond dynamic panel-data estimation under assumptions of generalized methods of moments (GMM). The contingency framework proposed in this study confirmed the moderating role of financial institutions in corporate governance and performance variables. Empirical evidence revealed that higher level of institutional ownership in firm's ownership structure although discourages the large size board but encourages higher ratio of independent directors in the governing body. To the best of the authors' knowledge, the current study provides a deeper understanding regarding the role of financial institutions in corporate governance and performance mechanism particularly in the context of Pakistani emerging economy.

Corporate governance and dividend policy in Indonesia

2013 ◽  
Vol 14 (5/6) ◽  
pp. 135-143 ◽  
Author(s):  
Doddy Setiawan ◽  
Lian Kee Phua
Keyword(s):  
Corporate Governance ◽  
Manufacturing Industry ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Maximum Point ◽  
Manufacturing Companies ◽  
Content Type ◽  
Negative Effect ◽  
The Impact ◽  
Positive Effect

Purpose – This study aims at examining the impact of corporate governance on dividend policy among Indonesian companies. There are two theories of the effect of corporate governance on dividend policy: substitution and outcome theory. Substitution theory argue that corporate governance have negative effect on dividend policy, while outcome theory argue that corporate governance have positive effect on dividend policy. Therefore, this study investigates the effect of corporate governance on dividend policy in Indonesia. This study aims at examining the impact of corporate governance on dividend policy among Indonesian companies. There are two theories of the effect of corporate governance on dividend policy: substitution and outcome theory. Substitution theory argue that corporate governance have negative effect on dividend policy, while outcome theory argue that corporate governance have positive effect on dividend policy. Therefore, this study investigates the effect of corporate governance on dividend policy in Indonesia. Design/methodology/approach – The sample of this research comprises 248 firms from Indonesian Stock Exchange during 2004-2006. This research using Transparency and Disclosure Index (TDI) to measure corporate governance in Indonesia Findings – We find that TDI are low among Indonesian firms, with a score of 32 per cent out of the maximum point. This score indicates that Indonesian corporate governance is still low. The results show that there is a negative relation between corporate governance and dividend policy in Indonesia. Thus, the Indonesian companies pay more dividends when corporate governance practice is low. This result confirms applicable of substitution theory in Indonesia. Research limitations/implications – This research focuses on manufacturing industry in Indonesia. Therefore, the conclusions of this research apply on the manufacturing companies in Indonesia Practical implications – This research shows that companies with poor corporate governance pay dividend higher than companies with better corporate governance. Thus, investor can use this information to make investment decision. Originality/value – This research provides evidence on the negative effect of corporate governance on dividend policy in Indonesia (substitution theory).

scholarly journals The role of corporate governance in the relationships of family company with real earnings management

2018 ◽  
Vol 22 (1) ◽  
Author(s):  
Indah Masri
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Family Firms ◽  
Stock Exchange ◽  
Real Earnings Management ◽  
Manufacturing Companies ◽  
Performance Impact ◽  
The Family ◽  
Negative Effect

The purpose of this research was to determine the effect of family ownership on real earnings management with corporate governance as a moderation variable in this relationship. This research is also looking at the role of accrual earnings management as a substitute in the relationship accrual earnings management with real earnings management in a family company. This study uses data 61 manufacturing companies on the Indonesia Stock Exchange in the period 2010 to 2013. The research results according to which hypothesized that family firms tend to negatively affect with real earnings management. The role of corporate governance as strengthening internal oversight negative effect on family companies with real earnings management. The results also proved the existence of a relationship of substitution for family firms tend to be doing accrual earnings management than real earnings management. This is because on the one hand the motivation of control as a strong incentive to do accrual earnings management in the family company, while on the other hand, the family companies tend to dislike real earnings management for their negative performance impact.

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