Enhancing Shareholder Value through Corporate Governance Mechanism in Saudi Arabia

2021 ◽  
Vol 39 (10) ◽  
Author(s):  
Hamid Ghazi Sulimany ◽  
Suresh Ramakrishnan ◽  
Ayman Bazhair ◽  
Salih Adam
Keyword(s):  
Corporate Governance ◽  
Saudi Arabia ◽  
Positive Impact ◽  
Stock Exchange ◽  
Shareholder Value ◽  
Share Price ◽  
Board Independence ◽  
Governance Mechanism ◽  
Corporate Governance Mechanism ◽  
The Impact

This study investigates the effect of corporate governance mechanism in relation to shareholder value in Saudi Arabia listed companies. In today’s business, shareholder value has a great concern to the company shareholders. Numerous studies have been investigated shareholder value but with inconsistent empirical evidence. The focus of this research is to examine the impact of corporate governance mechanism (board independence) on shareholder value measured by share price and dividend yield. This is an empirical paper which proposes to determine the extent of board independence on shareholder value in the perspective of Saudi Arabia. The current study employed pooling regression analysis to retailing sector companies in Saudi Stock Exchange (Tadawul) from 2010 to 2019. The research has found that the presence of non-executive directors on the corporate board enhanced shareholder value. Likewise, board independence has a significant positive impact on shareholder value. The proposed study has value for Saudi Arabia government, corporate boards, stock exchange, shareholders, and policy makers by highlighting the distinct impact on shareholder value and its relation on board independence.

Corporate Governance Mechanism on Financial Performance (Evidence from the Indonesia’s Listed State-owned Enterprises)

2021 ◽  
Vol 1 (1) ◽  
pp. 24-34
Author(s):  
Anak Agung Kompiyang Ratih Maldini ◽  
Pananda Pasaribu ◽  
Christian Haposan Pangaribuan
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Positive Impact ◽  
Stock Exchange ◽  
Governance Structure ◽  
Board Independence ◽  
Governance Mechanism ◽  
Good Corporate Governance ◽  
Corporate Governance Mechanism ◽  
The Impact

Objective – This study aims to find the impact of privatization, which proxied by good corporate governance toward the financial performance of SOEs in Indonesia. Methodology – This study used 16 privatized SOEs that are listed in Indonesia Stock Exchange and also 16 privatized non-SOEs as the comparison. The data is collected from the year 2014 to 2018 and analyzed by using multiple regression panel data. Findings – This study found that director size and board independence have a positive impact toward SOEs financial performance. The director size and board independences have a positive significant impact toward the SOEs financial performance while the privatized non-SOEs is not significantly affected Novelty – This study examines proper governance structure in SOEs and non-SOEs, thus providing new insights about good corporate governance regulation in the Indonesian context.

scholarly journals The Value of Board Diversity in the Relationship of Corporate Governance and Investment Decisions of Pakistani Firms

2020 ◽  
Vol 6 (4) ◽  
pp. 146 ◽  
Author(s):  
Nauman Iqbal Mirza ◽  
Qaisar Ali Malik ◽  
Ch Kamran Mahmood
Keyword(s):  
Corporate Governance ◽  
Positive Impact ◽  
Stock Exchange ◽  
Panel Data Analysis ◽  
Investment Decisions ◽  
Board Independence ◽  
Board Size ◽  
Board Diversity ◽  
The Impact ◽  
The Relationship

Inspired by the studies on the impact of diversity among decision-making groups, this study was carried out to examine whether the diversity of the members of the board of directors, encompassing gender, nationality, education, and experience, moderates the relationship between the corporate governance and investment decisions of listed companies of the Pakistan Stock Exchange. Furthermore, the determinants of investment decisions in the context of Pakistani firms’ are also explored. Panel data analysis techniques are used to gauge the cause and effect relationship among the variables. We find short-term liquidity and profitability are the determinants of Pakistani firms’ investment decisions, both having adverse relationships. Moreover, we explore board independence, and chief executive officer (CEO) duality has a significant positive impact on investment decisions. We further find that experience diversity strongly moderates the relationship between board independence and board size with investment decisions in the opposite direction. Education diversity moderates the relation of board size and investment decisions in the same direction. Foreign directors’ presence on the board also significantly moderates the relationship between board independence and investment decisions. The results of this empirical study confirm that board diversity moderates the relationship between corporate governance and investment decisions.

scholarly journals Pengaruh Intellectual Capital dan Corporate Governance Terhadap Kinerja Bank di Indonesia

2019 ◽  
Vol 2 (1) ◽  
pp. 57
Author(s):  
Jadzil Baihaqi
Keyword(s):  
Corporate Governance ◽  
Intellectual Capital ◽  
Boards Of Directors ◽  
Audit Committee ◽  
Stock Exchange ◽  
Governance Mechanism ◽  
Moderation Effect ◽  
Corporate Governance Mechanism ◽  
The Impact ◽  
The Relationship

This study examines the impact of intellectual capital and corporate governance mechanism on banks’ performance both directly and also moderated effect. We used banks that were listed in the Indonesia Stock Exchange. The bank’s performance was measured by risk-based bank rating while intellectual capital was measured by the coefficient of VAICTM (Pulic, 1998). The corporate governance mechanism was measured based on the size of boards of directors, the composition of independent director, CEO remuneration, managerial ownership, the effectiveness of audit committee and ownership concentration. The result of the study shows that banks’ performance was positively influenced by intellectual capital. However, corporate governance mechanism did not influence the banks’ performance, while the moderation effect of corporate governance mechanism on the relationship between intellectual capital and banks’ performance was not confirmed.

scholarly journals Pengaruh Mekanisme Internal Corporate Governance Terhadap Pemilihan Auditor Eksternal

2020 ◽  
Vol 21 (2) ◽  
pp. 182
Author(s):  
Febrina Nafasati P ◽  
Dian Indu Dewi
Keyword(s):  
Corporate Governance ◽  
Stock Exchange ◽  
Governance Mechanism ◽  
Auditor Choice ◽  
Auditor Quality ◽  
Corporate Governance Mechanism ◽  
The Impact

<p><em>Internal Coporate Governance Mechanism influence for Auditor Choice. The research is to know of the impact of Internal Corporate Governance Mechanism on auditor choice by non-financial companies, where the proxies of Internal Corporate Governance Mechanism used are the largest shareholder, audit committee’s effectivenese, the number of board of commissioner and the proportion of independent commissioner. This study used Top 4-non Top 4 auditor segregation as a proxy of auditor quality that will be chosen by the company.</em></p><p><em>This study used Logistic Regresion and used 177 of non financial companies listed on the Indonesia Stock Exchange 2013. </em></p><p><em>The Result showed that there are significant of the number of board of commissioner and audit committee’s effectivenese on auditor choice by company. Therea are not significant of the largest shareholder and the proportion of independent commissioner on auditor choice by company.</em></p>

scholarly journals Real Earnings Management, Firm Performance, and Corporate Governance Mechanism

2021 ◽  
Vol 3 (2) ◽  
pp. 39-49
Author(s):  
Maria Stefani Osesoga ◽  
Rosita Suryaningsih ◽  
Febryanti Simon
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Earnings Management ◽  
Cash Flow ◽  
Stock Exchange ◽  
Real Earnings Management ◽  
Governance Mechanism ◽  
Discretionary Accrual ◽  
Corporate Governance Mechanism ◽  
The Impact

The purpose of this study is to analyze the impact of real earnings management on firm performance and the impact of corporate governance as an intervening variable in the relationship between real earnings management and firm performance. The object are companies include in Corporate Governance Perception Index during 2015-2019 and listed in Indonesia Stock Exchange (IDX) and analyzed by using path analysis method. Real earnings management has a significant effect on the firm performance. Furthermore, with corporate governance mechanism within the company, real earnings management significantly affect firm performance. This research is meaningful, but has limitations. The result cannot be generalizing because the sample only companies that listed in CGPI and IDX period 2015-2019. The research implication are as follows: top level management should be cautious about credit policy, cash flow from operation, discretionary expenditures, and production. Earnings management is one of variable that the most prevalent in recent studies but the proxy for earnings management in the recent studies used discretionary accrual. In this research, real earnings management is used to indicate earnings management which measured by abnormal cash flow from operation. Thus, it may provide some contribution to the literature.

scholarly journals The Impact of Corporate Governance Mechanism over Financial Performance: Evidence from Romania

2021 ◽  
Vol 13 (19) ◽  
pp. 10494
Author(s):  
Tatiana Dănescu ◽  
Ioan-Ovidiu Spătăcean ◽  
Maria-Alexandra Popa ◽  
Carmen-Gabriela Sîrbu
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Intellectual Capital ◽  
Stock Exchange ◽  
Governance Mechanism ◽  
Specific Context ◽  
Business Sustainability ◽  
Earnings Per Share ◽  
Corporate Governance Mechanism ◽  
The Impact

In the context of the globalization and internationalization of economies, to efficiently attract financial and intellectual capital that is necessary for business sustainability, the mechanisms of corporate governance have to be based on gaining the trust of all the interested parties. These objectives require an organizational culture and a climate which is based on correctness, responsibility, transparency, and efficiency, in which ethical principles govern the spread of behaviors in the entire entity. This research identifies the relation between the corporate governance and the entities’ financial performance using the specific context of Romania. The findings of this study reveal new insights on the corporate governance and financial performance based on a sample of companies listed on the Bucharest Stock Exchange. The results show a positive correlation between the net accounting results, earnings per share, and the duality of the CEO, and a negative correlation between price per share and the duality of the CEO.

PENGARUH CORPORATE GOVERNANCE TERHADAP MANAJEMEN LABA PERUSAHAAN DI INDONESIA

2012 ◽  
Vol 8 (1) ◽  
pp. 69
Author(s):  
Umi Murtini ◽  
Rizal Mansyur
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Negative Impact ◽  
Positive Impact ◽  
Governance Mechanism ◽  
Auditor Quality ◽  
Corporate Governance Mechanism ◽  
The Impact

This research aims to test the impact of corporate governance mechanism towards earnings management hold by Indonesian companies. The reseach explains the impact of manajerial,institusional ownership, independent commissioner, the size of commissioner council, and auditor quality (as corporate governance proxy) towards earnings management. The resultproves that manajerial ownership and independent commissioner give negative impact while commissioner council gives positive impact and institusional ownership and auditor qualitydo not affect the earnings management.Keywords: corporate governance, earnings management, auditor quality

Pengaruh Corporate Governance terhadap Keputusan Investasi

2009 ◽  
Vol 4 (1) ◽  
pp. 1
Author(s):  
Maria Gorethi Berek ◽  
Elok Pakaryaningsih
Keyword(s):  
Corporate Governance ◽  
Real Estate ◽  
Stock Exchange ◽  
Investment Decision ◽  
Institutional Ownership ◽  
Governance Mechanism ◽  
Real Estate Industry ◽  
Board Size ◽  
Corporate Governance Mechanism ◽  
Asset Growth

The objective of this research is to examine the effect of corporate governance mechanism on investment decision. Using two ways of measurement, namely, board size and institutional ownership, corporate governance is hypothesized to have an effect oninvestment decision in which measured by asset growth, equity growth and debt growth.Using real estate industry listed at Jakarta Stock Exchange as the sample, the result shows that both institutional ownership and board size do not affect investment decision.Keywords: Corporate governance, investment decision, institutional ownership, board size

scholarly journals Employee Benefits Accounting, Its Impact on the Market Share Price, the Volume of Credit Facilities and Deposits

2017 ◽  
Vol 10 (1) ◽  
pp. 23
Author(s):  
Mohammad Hamdan ◽  
Marie Bany Khaled ◽  
Sakhr Bany Khaled
Keyword(s):  
Market Share ◽  
Positive Impact ◽  
Stock Exchange ◽  
Market Price ◽  
Employee Benefits ◽  
Share Price ◽  
Economic Statistics ◽  
Amman Stock Exchange ◽  
The Impact ◽  
Descriptive Method

This study aims to examine the impact of employee benefitsaccounting (direct and indirect compensation) on (market price, volume of credit facilities and volume of deposits). The study community is represented by commercialbanks listed on the Amman Stock Exchange (ASE), all the continuous banks whose financial data were available during the study period (2007-2015) were selected represented in (13) banks. In order to realize the objectives of the study, the study was based on qualitative data and analytical descriptive method (Panel Data), (E-Views) economic statistics software was used to test hypotheses. The results of the study showed that there is a statisticallysignificant impact on both typesof employees compensations as a whole (direct and indirect) on the market share price, the volume of credit facilities and the volume of deposits. While the results of the study confirmed that the indirect compensation has not got an impact on the volume of customer deposits when it is measured separately. Finally, the study recommended the need to apply good systems that take into account the interest of both the employers and employees for the positive impact on the market share price, the volume of credit facilities and the volume of deposits.

scholarly journals Impact of Corporate Governance on Dividend Policy: Evidence from Pakistan

2021 ◽  
Vol 3 (3) ◽  
pp. 353-366
Author(s):  
Abdul Hameed ◽  
Farheen Zahra Hussain ◽  
Khawar Naheed ◽  
Muhammad Sadiq Shahid
Keyword(s):  
Corporate Governance ◽  
Dividend Policy ◽  
Negative Impact ◽  
Positive Impact ◽  
Stock Exchange ◽  
Payout Policy ◽  
Least Square ◽  
Political Connection ◽  
Dividend Payment ◽  
The Impact

Purpose: The objective of the paper is to examine the impact of corporate governance on the dividend payout policy of firms listed on the Pakistan stock exchange during 2010-2020. As Pakistani investors face issues regarding their return in the shape of dividends and depend upon the firm’s corporate governance strength. To test whether changes in firm code of corporate governance have a significant influence on dividend policy. Design/Methodology/Approach: The panel data has been used for the period 2010-2020 and panel least square has been applied. Further, to test the association, following factors such delisting risk, government tenure, political connection with institutional shareholding as many political firms hold corporate shares which influence the decision to pay dividends. Findings: Findings from the fixed effect model show that corporate governance has a negative impact on dividend policy while government tenure, politically connected firm has a positive impact on the dividend. The study also concludes that firm size, profitability, tax, asset turnover, leverage, and firm shareholding also influence firm dividend payment behavior. Implications/Originality/Value: The implication of study reveals that firms must focus on strong their governance and include more independent directors on the board which leads to favorable strategies regarding investors. The investor must invest in those firm where lower political connection, pay continuous dividend either high or low decease/increase delisting chances, strong corporate governance and firm specific factors also lead to make decision of dividend payment.

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