scholarly journals An Empirical Investigation on Corporate Governance: Evidence from Pakistan

2020 ◽  
Vol V (III) ◽  
pp. 154-161
Author(s):  
Ghulam Nabi ◽  
Faheem Ghaznafar ◽  
Tahira Asif
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Board Of Directors ◽  
Ownership Structure ◽  
Empirical Investigation ◽  
Stock Exchange ◽  
Annual Reports ◽  
Tobin’S Q ◽  
Tobin's Q ◽  
The Board Of Directors

This study aims to examine the association between firm performance and ownership structure. We collect the data from the annual reports of 60 random firms, which are listed in the Karachi stock exchange (KSE 100 Index), for a period of 5 years from 2007-2011. Firm performance is measured by using market and accounting based proxies, Tobin's Q, ROA, and ROE, respectively, while ownership structure is measured as a percentage of shares held by the Board of Directors. The findings reveal that ownership structure has a negative and significant association with firm performance (accounting-based proxy).

scholarly journals The Relationship and Impact between Board of Director Criteria towards Firm Performance for Companies Listed on Bursa Malaysia: Trading and Services Sector

2017 ◽  
Vol 3 (1) ◽  
pp. 51-59
Author(s):  
Noorul Farha Mohd Jumali ◽  
Mohd Abdullah Jusoh ◽  
Syed Ismail Syed Mohamad
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Board Of Directors ◽  
Company Performance ◽  
Tobin’S Q ◽  
Governance Mechanism ◽  
Tobin's Q ◽  
Services Sector ◽  
The Board Of Directors ◽  
The Relationship

This research aims to investigate the relationship and impact between the board of directors criteria towards the company's performance. We hypothesized that the board of the directors criteria will increase the firm performance since board of the directors are viewed as one of the corporate governance mechanism that should be effective in monitoring and advice the management to protect the interest of shareholders. In this study, analysis of panel data has been used. The company's performance was measured by Return on Assets (ROA) and Tobin's Q. Using 159 listed firms in Trading and Services Sector from 2007 to 2013, our study exhibit that the size of the board of directors (BODSIZE) had significant and positive relationship on ROA and Tobin's Q. This shows when BODSIZE increases, the performance of the company will also increase. Next, CEO duality and independent board of directors (PERBODIND) had no significant relationship with ROA and Tobin's Q. Overall, good corporate governance is important to improve the company’s performance. The implication of this study is that it may affect various parties and include investors, financial institutions, academia, corporations, and governments in making judgments, decisions or improvements to corporate governance and company performance.

Corporate Governance and Risk Management on Listed Banks, The Tanzania Perspective

2021 ◽  
Vol 8 (1) ◽  
pp. 27
Author(s):  
Erick Lusekelo Mwambuli ◽  
Avitus Mwebembezi Dominick
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Board Of Directors ◽  
Ownership Structure ◽  
Management Practices ◽  
Stock Exchange ◽  
Management Approach ◽  
Financial Risks ◽  
The Board Of Directors

The study was to assess on corporate governance and risk management in Tanzania. The study was guided by three objectives which were to assess if transparency, disclosure and audit have significant effect on risk management of the firm, to assess if the board of directors have significant effect on risk management of the firm and evaluate if the ownership structure have significant effect on risk management of the firm. Furthermore, we assess how corporate governance and particularly board of directors, ownership structure, transparency disclosure and audit can affect risk management practices in the context of Dar es Salaam stock exchange listed banks. By the use of a content in analysis approach, the level of exposing the risks in terms of likelihood, consequences of such risk and the strategies used for managing that risk were identified for each kind of risk by using attributes. The results show that corporate governance is related to board of directors, ownership structure, transparency, disclosure and audit play a positive significant and crucial role in establishing an integrative risk management approach. The results from data collected demonstrate that corporate governance has positive significant effect in determining the the good quality of risk management through the level of risk-taking in decisions, especially in terms of financial risks management.

scholarly journals CORPORATE GOVERNANCE AND FIRM PERFORMANCE NEXUS: A CASE OF CEMENT INDUSTRY OF PAKISTAN

2018 ◽  
Vol 1 (1) ◽  
pp. 1-6 ◽  
Author(s):  
Abdul Ghafoor Kazi ◽  
Muhammad Asad Arain ◽  
Payal Devi Sahetiya
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Ownership Structure ◽  
Significant Relationship ◽  
Stock Exchange ◽  
Study Data ◽  
Cement Industry ◽  
Annual Reports ◽  
Board Structure ◽  
The Impact

Corporate governance is the system of rules, practices and method by that business corporations are directed and controlled. The aim of this research is to examine the impact of the corporate governance on the financial performance of the enlisted cement industry on the Pakistan Stock Exchange from the year 2013-17. This research is a “quantitative research” which focuses on numbers and results based on empirical analysis of actual data and logic. Ten out of seventeen cement firms listed at PSX from the period 2013-17 are selected as sample of the study. Data was collected from documents and records. Descriptive statistics, Pearson’s correlation and multiple regressions were used for data analysis. The results showed that there is no significant relationship between leverage and firm performance, the board structure has no significant relationship with firm performance, and firm size has an insignificant relationship with firm performance. The results however suggested that ownership structure has significant relationship with firm performance. The future investors in cement industry of Pakistan must consider above factors before investments. This study helps shareholders and management in decision making about the effect of ownership structure on firm performance and how these can change ownership structure. This study helps students to gain knowledge and understanding about good corporate governance and its impact on firm performance. It will also help them to go through the annual reports of companies and to analyse the financial statements so that they could learn how to analyse the performance of the firm in terms of ROE. Moreover, the study would also be a direction for future researchers and students to further add value to the subject of corporate governance and firm performance.

scholarly journals Analisis Hubungan Manajemen Laba dan Struktur Kepemilikan Terhadap Kinerja Perusahaan di BEI Tahun 2016-2019

Owner ◽  
2021 ◽  
Vol 5 (2) ◽  
pp. 653-662
Author(s):  
Sari Dewi ◽  
Lisa Lisa
Keyword(s):  
Firm Performance ◽  
Earnings Management ◽  
Board Of Directors ◽  
Ownership Structure ◽  
Asset Management ◽  
Stock Exchange ◽  
Secondary Data ◽  
Real Earnings Management ◽  
The Board Of Directors ◽  
Q Model

Firm performance includes the activities produced by company management and high firm performance can be said to allow them to plan their work according to their own goals and take risks with full responsibility. This study was conducted to determine the effect of earnings management, the size of the board of directors, and ownership structure (blockholders ownership, institutional ownership, family ownership, and managerial ownership) on the firm's performance. By using sample data listed on the Indonesia Stock Exchange (IDX) from 2016 to 2019. Because there are several previous studies that produce different values ?? on firm performance. Therefore, it is necessary to re-examine this. In this study using the firm's performance with Tobin's Q model to determine the value of asset management generated by the company. The data used is panel data with secondary data collection techniques to test outliers by SPSS software version 25, then test descriptive statistics, multicollinearity, heteroscedasticity, R Square, F test, and also t-test using Eviews software version 10. The results of this study conclude that both accrual-based and real earnings management have a significant positive effect on firm performance, while the size of the board of directors has a significant negative effect on performance. The ownership structure has no significant effect on the firm's performance. The result of insignificant results could be caused by not supporting the agency theory perspective, as well as the lack of company control.

Women on Board and Firm Performance

2019 ◽  
pp. 312-335
Author(s):  
Haya Lori ◽  
Allam Mohammed Hamdan ◽  
Adel Sarea ◽  
Thaira Mohammed Al Shirawi
Keyword(s):  
Board Of Directors ◽  
Listed Companies ◽  
Annual Reports ◽  
Company Performance ◽  
Tobin’S Q ◽  
Tobin's Q ◽  
Measurement Models ◽  
Accounting Measurement ◽  
The Board Of Directors ◽  
The Relationship

This chapter aims to measure the relationship between the number of women in the board of directors and company performance in the listed companies in Bahrain Bourse. The study uses panel data where the data is collected from the investor's guide in Bahrain Bourse and the annual reports from the listed companies from 2013 to 2017. The sample of the study includes 39 listed companies; the independent variable is the number of women in the board of directors in each company, which was measured using dummy variables; and the dependent variable is the company performance, which was measured using two measurement models driven from previous studies: accounting measurement (return on assets) and market measurement (Tobin's Q). The study also utilizes three control variables in order to help measuring the relationship between the number of women in the board of directors and company performance. The study concludes that there is a positive correlation between the number of women in the board of directors and the company's ROA and Tobin's Q.

scholarly journals Corporate governance disclosure and corporate performance of Nigerian banks

2021 ◽  
Vol 3 (3) ◽  
pp. 14-36
Author(s):  
Wilson Herbert ◽  
ThankGod C. Agwor
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Board Of Directors ◽  
Commercial Banks ◽  
Stock Exchange ◽  
The Body ◽  
Annual Reports ◽  
The Board Of Directors ◽  
Code Of Corporate Governance ◽  
Governance Disclosure

Corporate disclosure is a key mechanism of corporate governance. This study examined the effect of corporate governance disclosure (CGD) on the financial performance of commercial banks listed on the Nigeria Stock Exchange. Based on the provisions of the Code of Corporate Governance for Public Companies in Nigeria, 2011 and the Code of Corporate Governance for Banks and Discount Houses 2014, the study developed a disclosure checklist and employed content analysis technique to extract corporate governance (CG) from 78 annual reports of 13 Nigerian commercial banks from 2011 to 2016. The study trichotomized CGD into those relating to the board of directors, risk framework, and whistleblowing policy. The results of the hypothesized relationships showed a positive and significant association between CGD and the banks' financial performance, with a positive effect of CGD on the board of directors and whistleblowing policy. However, the study did not find a significant association between CGD of risk management framework and the banks' financial performance. This study contributes to the body of knowledge by providing a broader understanding of the effect of CGD on banks' financial performance. The development of a disclosure checklist based on the regulators’ codes of corporate governance is a useful addition to the literature.

scholarly journals Corporate governance reform within the UK banking industry and its effect on firm performance

2009 ◽  
Vol 7 (1) ◽  
pp. 456-470 ◽  
Author(s):  
Elewechi Okike ◽  
Andrew Turton
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Board Of Directors ◽  
Banking Industry ◽  
Negative Impact ◽  
Annual Reports ◽  
Governance Reform ◽  
Return On Equity ◽  
The Board Of Directors ◽  
The Uk

Using a corporate governance scorecard (Corp-Gov Score) measuring twenty-six areas of corporate governance best practices in four UK banks, this study examined whether improved levels of corporate governance led to higher levels of firm performance within the UK banking industry over the time period 1999-2006. The twenty-six measures were split into four sub-sector areas of Corp-Gov Score comprising Board of Directors, Remuneration Policies, Auditing Policies, and Transparency/Disclosure Policies. Using both correlation and regression analysis on the information extracted from the Annual Reports, the study provides evidence about the extent to which UK banks have complied with recent corporate governance reforms post Enron. The results indicate that improvements in corporate governance can enhance the performance of UK banks when measuring using Return on Equity. The biggest sub-sector driver of this improvement is in the area of the Board of Directors. Our results further indicate that large boards within UK banks can have a negative impact on firm performance, and that increases in directors’ remuneration does not lead to increased levels of firm performance. Evidence is given that corporate governance within UK banks plays an important role, but how it affects firm performance is open to debate.

scholarly journals Intellectual Capital Disclosures and Corporate Governance in Gaining the Firms’ Non-Discretionary Profits and Market Value in ASEAN-5

2020 ◽  
Vol 11 (22) ◽  
pp. 276-304
Author(s):  
Saarce Elsye Hatane ◽  
Felicia Nathania ◽  
Jocelyn Lamuel ◽  
Fenny Darusman ◽  
Devie
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Intellectual Capital ◽  
Stock Exchange ◽  
Market Value ◽  
The Other ◽  
Tobin’S Q ◽  
Net Income ◽  
Tobin's Q ◽  
Asean Countries

This study aims to find the effect of Intellectual Capital Disclosure (ICD) and Corporate Governance (CG) on firm performance in ASEAN countries. Firm performance is divided into accounting-based performance and market-based performance. The accounting-based performance consists of Non-Discretionary Net Income (NDNI) and Cash Flow Operations (CFO), while market-based performance consists of Tobin’s Q and Market-to-Book Ratio (MBR). The measurement of ICD components uses a scoring system. The sample of this research is 112 firms in the industrial technology listed in the stock exchange of ASEAN-5 between 2011 and 2018. This study finds that NDNI increases when firms increase RCD quality. No ICD components are capable of affecting CFO. On the other hand, SCD is a variable that decreases NDNI value. BGEN is found to reduce NDNI and CFO values. RCD is also the only ICD component that can increase market-based performance, especially MBR. HCD consistently lowers the values of MBR and Tobin’s Q. BSIZE holds a significant role in raising Tobin’s Q score, and BGEN lowers MBR instead. BIND has no part in the market-based performance, but it significantly lowers NDNI value. This study adds another view to ICD’s benefits from two firm performance perspectives, accounting-based performance and market-based performance, especially in ASEAN-5.

Corporate governance and firm performance: empirical evidence from Jordan

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ahmad Yuosef Alodat ◽  
Zalailah Salleh ◽  
Hafiza Aishah Hashim ◽  
Farizah Sulong
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Performance Measures ◽  
Ownership Structure ◽  
Audit Committee ◽  
Superior Performance ◽  
Tobin’S Q ◽  
Tobin's Q ◽  
Content Type ◽  
The Impact

Purpose This study aims to assess the effect of director board and audit committee attributes and ownership structure on firm performance. In general, resource dependency and agency theories have underlined the superior performance of firms equipped with stronger Corporate Governance (CG) versus those of deficient governance. Concurrently, the study delineated the provisions of ownership structure provision, specifically foreign ownership and institutional ownerships, thus describing the component denoting the structural significance in explicating firm performance. Design/methodology/approach The current study implemented an empirical approach involving the construction of extensive CG measures thus, subjected to 81 non-financial firms listed on the Amman Stock Exchange spanning the period of 2014–2018. Findings The current study identified the positive and significant relationship between the board of directors and audit committee characteristics with the firm performance measures tested, namely, return on equity (ROE) and Tobin’s Q. In terms of ownership structure, both foreign and institutional ownerships yielded a significant and positive relationship with ROE. Meanwhile, Tobin’s Q led to an insignificant and negative relationship between both ownership types and firm performance measures. Practical implications The analytical outcomes substantiate the possibility of enhanced performance shown by growing global firms because of the implementation of CG mechanisms, specifically because of the practices resulting in minimised agency costs. Originality/value The current study offers novel evidence detailing the impact of CG effectiveness towards performance and its implementation in emerging markets following the minimal amount of scholarly efforts on the topic. It is a timely contribution towards the current understanding of the relationship linking governance and performance for the purpose of ensuring the adoption and imposition of a strong corporate governance code by the government.

scholarly journals Director remuneration, family ownership and firm performance: An analysis from Malaysian listed firm for period of 2005 till 2013

2017 ◽  
Vol 14 (2) ◽  
pp. 98-113 ◽  
Author(s):  
Nazrul Hisyam Ab Razak ◽  
Salmi Huwaina Palahuddin
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Stock Returns ◽  
Family Firm ◽  
Annual Reports ◽  
Family Ownership ◽  
Future Market ◽  
Tobin’S Q ◽  
Tobin's Q ◽  
Accounting Measurement

This study examines the association between directors’ remuneration, corporate governance structures and firm performance of 140 Malaysian listed firms which 70 firms are family firm and 70 firms are non-family. Data has been collected through annual reports in Bursa Malaysia’s database from 2005 till 2013. The results show that firm performance is positively and significantly related to directors’ remuneration, firm’s growth and size measured by ROA, ROE and Tobin’s Q. However, firms’ performance in this study is not responsive to anticipated future market valuations in Stock returns. The study also finds that family ownership leads to lower performance than non-family owned firms on accounting measurement (ROA and ROE) and market measurement (Tobin’s Q ) after controlling company specific characteristics. The findings also reveal that role duality has no significant effect on accounting and market performance. Meanwhile the study explores that firm performance is negatively and significantly related to leverage. The findings can be useful to regulators to limit director’s influence over remuneration packages especially in family firm. The study also contributes to the growing literature on executive and directors’ remuneration and it provides international evidence on the effects of corporate governance reforms in recent years in influencing boardroom remuneration and ownership structure on a firm’s efficiency and performance.

Sign in / Sign up

Export Citation Format

Share Document