scholarly journals Corporate Governance and Performance of Financial Institutions in Pakistan: A Comparison between Conventional and Islamic Banks in Pakistan

2010 ◽  
Vol 49 (4II) ◽  
pp. 461-475 ◽  
Author(s):  
Ramiz Ur Rehman Ramiz Ur Rehman ◽  
Inayat Ullah Mangla
Keyword(s):  
Decision Making ◽  
Corporate Governance ◽  
Financial Institutions ◽  
Governance Structure ◽  
Islamic Banks ◽  
Corporate Governance Structure ◽  
And Performance ◽  
Monitoring Performance ◽  
Conventional And Islamic Banks ◽  
The Way

Corporate Governance refers to the way an organisation is directed, administrated or controlled. It includes the set of rules and regulations that affect the manager’s decision and contribute to the way company is perceived by the current and potential stakeholders. The corporate governance structure specifies the distribution of rights and responsibilities among different participants in the corporation such as; boards, managers, shareholders and other stakeholders and spells out the rules and procedures and also decision-making assistance on corporate affairs. By doing this, it also provides the structure through which the company’s objectives are set and the means of obtaining those objectives and monitoring performance. Corporate governance may be the ways of bringing the interests of investors and managers into line and ensuring that firms are run for the benefit of investors.

scholarly journals Do Multinational Companies Practice Good Corporate Governance? Empirical Evidence from Bangladesh

2017 ◽  
Vol 7 (2) ◽  
pp. 96
Author(s):  
G. M. Wali Ullah ◽  
Sarwar Uddin Ahmed ◽  
Samiul Parvez Ahmed ◽  
Kazi Md. Jamshed
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Stock Returns ◽  
Governance Structure ◽  
Multinational Companies ◽  
Governance Mechanisms ◽  
Corporate Governance Structure ◽  
Corporate Governance Mechanisms ◽  
The Impact ◽  
The Way

Corporate Governance refers to the way an organization is directed, administrated or controlled. It includes the set of rules and regulations that affect the manager's decision and contribute to the way company is perceived by the current and potential stakeholders. The corporate governance structure specifies the distribution of rights and responsibilities among different participants in the corporation such as; boards, managers, shareholders and other stakeholders and spells out the rules and procedures and also decision-making assistance on corporate affairs. Corporate governance practices in Bangladesh are gradually being introduced in most companies and organizations (Du, 2006). However, Bangladesh has fallen behind its neighboring countries and global economy in corporate governance (Gillibrand, 2004). Corporate governance structure is mainly considered ambiguous. Specific governance structures or practices will not necessarily fit all companies at all times. Firms with strong corporate governance mechanisms are generally associated with better financial performance, higher firm valuation and higher stock returns. Unfortunately, investors in Bangladesh have a little information about how these corporate values affect the performance of the Multinational Companies (MNCs). This study aims to provide a quantitative contribution to the literature by examining the impact of corporate governance mechanisms on financial performance from the perspective of MNCs. A panel data based Ordinary Least Squared (OLS) regression model was used to measure the quantitative significance of various corporate governance related variables on MNC performance, as identified through a detailed literature review.

scholarly journals Corporate governance and performance: A study of the reform of cooperative credit system in Italy

2020 ◽  
Vol 18 (1, Special Issue) ◽  
pp. 370-381
Author(s):  
Elena Bruno ◽  
Giuseppina Iacoviello
Keyword(s):  
Corporate Governance ◽  
Radical Change ◽  
Governance Structure ◽  
Credit System ◽  
Corporate Governance Structure ◽  
Control Functions ◽  
Pilot Model ◽  
And Performance ◽  
Universal Applicability

The aim of the paper is to identify and discuss the suitability of the corporate governance structure of the Cooperative Banking Group (CBG) for preserving the distinctive characteristics of the cooperative credit banks (CCBs), such as mutuality and localism, as well as for guaranteeing the levels of capitalization, respecting the overall performance objectives. The analysis methodology uses a case study. The paper provides some reflections on the possible impacts of a radical change in the Italian cooperative credit system following the 2016 reform. The pilot model needs further adjustments in itinere, based on rigorous empirical tests conducted to confer on it the characteristics of universal applicability in the context of the CCBs. The major contribution of the paper is evident from the resulting interpretative process; the analysis conducted on a case study allows us to highlight the importance of the organizational dimension in the CCBs; the performances achieved by these, although with some distinctions throughout the Italian territory, are the result of the adequacy of the governance structures and the corporate control functions, which, even when partly outsourced, are always rigorously inspired by the logic of interconnection among those responsible for the functions themselves

scholarly journals Corporate governance and corporate performance: evidence from Kuwait

2009 ◽  
Vol 7 (1) ◽  
pp. 334-349 ◽  
Author(s):  
Bader Al-Shammari ◽  
Waleed Al-Sultan
Keyword(s):  
Corporate Governance ◽  
Stock Exchange ◽  
Governance Structure ◽  
Board Size ◽  
Corporate Governance Structure ◽  
Accounting Performance ◽  
Corporate Scandals ◽  
Kuwait Stock Exchange ◽  
And Performance ◽  
The Relationship

An increasing number of recent corporate scandals and failures worldwide give rise to interest in the corporate governance structure in the performance of companies. This study investigates the relationship between corporate governance characteristics and performance of 66 non-financial companies listed on the Kuwait Stock Exchange (KSE) during the years 2004-2007. The findings of this study show that corporate governance characteristics such as board size, role duality, and less concentrated share ownership were positively associated with market performance, whereas only board size and role duality were positively related to accounting performance. The result is robust with respect to controls for company size, leverage, and industry.

scholarly journals Does Corporate Governance Influence Leverage Structure in Bangladesh?

2019 ◽  
Vol 7 (3) ◽  
pp. 50
Author(s):  
Mohammad Nazim Uddin ◽  
Mohammed Shamim Uddin Khan ◽  
Mosharrof Hosen
Keyword(s):  
Decision Making ◽  
Corporate Governance ◽  
Serial Correlation ◽  
Governance Structure ◽  
Managerial Ownership ◽  
Manufacturing Companies ◽  
Cross Sectional ◽  
Corporate Governance Structure ◽  
Panel Methods ◽  
Family Connections

This paper examines the regulation of corporate governance on leverage structure decision-making in Bangladesh from 2003 to 2017. Appropriate panel methods are employed to control the problems of serial correlation, heteroskedasticity, and the cross-sectional nature of manufacturing companies. The study finds that corporate governance attributes such as board size, managerial ownership, and duality are the dominant factors for leverage decision-making. The results also indicate that control variables such as firm size and profitability have an influential role on leverage decision-making in Bangladesh. Our findings substantiate the idea that political and family connections to corporate governance structure greatly influence the leverage decision-making of corporate firms in Bangladesh.

scholarly journals Corporate governance and discretionary accruals: Evidence from Indonesian Islamic banks

2017 ◽  
Vol 14 (3) ◽  
pp. 259-265 ◽  
Author(s):  
Hadri Kusuma ◽  
Hanifah Dina Zain
Keyword(s):  
Corporate Governance ◽  
Banking Sector ◽  
Discretionary Accruals ◽  
Governance Structure ◽  
Annual Reports ◽  
Islamic Banks ◽  
Board Of Director ◽  
And Performance ◽  
And Gender ◽  
Earning Quality

The objective of this study is to investigate the effect of the corporate governance on the discretionary accruals. The study of the corporate governance structure in the banking sectors is an important component within the enhancement of banks’ efficiency and performance. While prior studies employed corporate governance dimensions as variable proxies, this study uses a single proxy: corporate governance efficiency. The measurement of the corporate governance efficiency employed the Data Envelopment Analysis with the help of the EMS software. Using purposive sampling, the data were extracted from the financial statements and annual reports of the Islamic banks. The regression using panel data was employed to analyze the relationship between the efficiency and bank’ discretionary accruals. The main findings show that the corporate governance efficiency significantly correlated to the Islamic bank’ discretionary accruals, implying that good corporate governance can minimize earning management and therefore improve earning quality. The efficiency level of the corporate governance also improved significantly during the research period. Additional results indicated that the control variables of risk and gender board of director were not significant, but the percentage gender board and board size significantly influenced the discretionary accruals. The results of this study draw some implications that help academicians, banks and investors of the banking sector.

scholarly journals Director remuneration, corporate governance and performance: A comparison between government linked companies vs non government linked companies

2014 ◽  
Vol 10 (2) ◽  
pp. 46-63
Author(s):  
Nazrul Hisyam Ab Razak
Keyword(s):  
Corporate Governance ◽  
Governance Structure ◽  
Matched Pair ◽  
Company Performance ◽  
Government Control ◽  
Government Ownership ◽  
Corporate Governance Structure ◽  
Significant Relationships ◽  
And Performance ◽  
The Impact

This study has examined the relationship between director’s remuneration, corporate governance structure and performance of a sample of 150 companies listed on the Bursa Malaysia from year 2008 until 2013. The sample was selected to provide matched-pair of government linked companies (GLCs) and non-government linked companies (non-GLCs), as it was anticipated that these group would have different governance structure, the key difference being government ownership. The result holds even when we control for company specific characteristic such as corporate governance, company size, leverage, director’s remuneration, board size and auditors. This study uses panel based regression model to examine the impact of government control mechanism on company performance using two important measurers. These are accounting based measure proxies by ROA and non-accounting based measures by Tobin’s Q. Statistically significant relationships were found across the groupings and for different performance measures. Findings appear to suggest that there is a significant impact of government ownership on company performance after controlling for company specific characteristics.

scholarly journals The corporate governance structures of GLCs and NGLCs and firm performance in Malaysia

2011 ◽  
Vol 8 (2) ◽  
pp. 1
Author(s):  
Azmi Abd. Hamid
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Univariate Analysis ◽  
Governance Structure ◽  
Governance Structures ◽  
Return On Assets ◽  
Corporate Governance Structure ◽  
Return On Equity ◽  
Significant Relationships ◽  
And Performance

This study examines the relationship between corporate governance structures and the performance of matched-pairs of Government Linked Companies (GLCs ) and Non-Government Linked Companies INGLCs). The empirical results indicate that there are eight statisticallv significant differences between the corporate governance structures of GLCs and NGLCs, thus providing a rationale for examining the association between corporate governance structure and firm performance of these two distinct groups. Accordingly, univariate and multivariate analyses were performed on two sample sets: GLCs and NGLCs. In the univariate analysis, only Board size (BSZ) exhibited a significant relationship with respect to firm performance, in contrast the multivariate analysis found no empirical evidence of a consistent relationship between corporate governance structure and performance, which was measured in relation to return On Assets (ROA) and Return On Equity (ROE) in GLCs and NGLCs over the same period. Statistically significant relationships were found across groupings and for different performance measures, but were not sustained across all the years considered. The results indicate that despite the identification of eight differences in the governance structures of GLCs and NGLCs, the observed differences in firm performance cannot be explained by governance structure. This finding supports the view that governance structures purely provide appropriate means to monitor company management rather than improve performance.

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