scholarly journals STRUKTUR KEPEMILIKAN, CORPORATE GOVERNANCE, AGENCY COST, DAN KINERJA PERUSAHAAN

2020 ◽  
Vol 6 (3) ◽  
Author(s):  
Tyara Dwi Putri
Keyword(s):  
Corporate Governance ◽  
Agency Cost ◽  
Return On Equity ◽  
Expense Ratio

Penelitian ini bertujuan untuk menganalisis pengaruh struktur kepemilikan, corporate governance, agency cost, terhadap kinerja perusahaan. Sampel yang digunakan adalah sebanyak 20 perusahaan keluarga yang terdaftar di Bursa Efek Indonesia periode 2016-2018. Struktur kepemilikan diukur dengan kepemilikan saham oleh pihak keluarga. Corporate governance diukur dengan jumlah dewan direksi dan persentase komisaris independen. Proksi untuk agency cost adalah asset utilization dan expense ratio. Kinerja perusahaan diukur dengan Return on Equity (ROE). Hasil penelitian menunjukkan bahwa kepemilikan keluarga dan direksi tidak berpengaruh terhadap kinerja perusahaan. Sedangkan, komisaris independen, asset utilization dan expense ratio berpengaruh terhadap kinerja perusahaan.

scholarly journals Corporate Governance Independence in the Board of Directors and The Firms Financial Performance: Empirical Analysis of Cement Sector Firms Listed on Pakistan Stock Exchange (PSX)

2021 ◽  
Vol 09 (01) ◽  
pp. 01-24
Author(s):  
Muhammad Noman Ansari ◽  
◽  
Dr. Sayed Fayaz Ahmed
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Board Of Directors ◽  
Stock Exchange ◽  
Agency Cost ◽  
Independent Directors ◽  
Return On Assets ◽  
Return On Equity ◽  
Board Committees ◽  
The Board Of Directors

The corporate governance measures emphasize on presence of independence of the board of directors to bring objectivity and reducing the agency cost; whereas the institutions have the ability, skills and time to supervise the activities of the management and channelize it to better financial performance. The objective of this study is to explore the effect of independence of the board of directors on the financial performance of the firms. The independence was gauged by number of independent directors and non-executive directors, chairing of board committees by independent directors, institutional holding in the firm, and presence of institutional directors on the board. The financial performance of the firm is gauged using the return on equity (ROE) and return on assets (ROA). The corporate governance and financial performance data comprising of 75 firm years from 2014 to 2018 of the firms listed in the cement sector of the Pakistan Stock Exchange (PSX) were selected. GLM regression was performed to study the relationship between the variables. The results suggest that the majority of independence on the board of directors do not affect the financial performance of the firm; the independence in the board committees negatively affects the financial performance, whereas the presence of institutional holding and director in the firm does not have any effect on the performance of the firm. The study will provide a basis for future studies to find the association that independence can bring objectivity, reduce agency cost, and affect the performance of the firm.

scholarly journals Corporate governance, ownership structure and agency costs: evidence from Sri Lanka

2021 ◽  
Vol 19 (2) ◽  
pp. 121
Author(s):  
Pratheepkanth Puwanenthiren ◽  
Balaputhiran Sathasivam ◽  
Velnampy Thirunavukarasu
Keyword(s):  
Corporate Governance ◽  
Sri Lanka ◽  
Ownership Structure ◽  
Financial Management ◽  
Agency Costs ◽  
Agency Cost ◽  
Independent Directors ◽  
Expense Ratio ◽  
Structure And Agency ◽  
Asset Turnover

<p>The purpose of this paper is to examine the link between corporate governance, ownership structure and agency cost in Sri Lanka. The present study uses the regression model to analyse data for a sample of 150 firms listed in the Colombo Stock Exchange (CSE) for the financial years 2014 to 2018.  The empirical results show statistically significant and positive associations between board size, CEO duality, managerial ownership and agency cost proxies (i.e., asset turnover and expense ratio). The results also show a positive and significant relationship between the independent directors and asset turnover (though statistically insignificant with expense ratio), suggesting that, entrenched independent directors employ lower conflict of interest  in order to reduce the agency cost. Nonetheless, ownership concentration, was statistically insignificantly associated with agency costs, this paper provides support for such a view in Sri Lankan context. This study contributes to the literature on the on the association between corporate governance, ownership structure and agency costs. The findings may be useful for financial managers, investors, financial management consultants, and other stakeholders.</p>

scholarly journals STRUKTUR KEPEMILIKAN, CORPORATE GOVERNANCE, DAN AGENCY COST

2018 ◽  
Vol 13 (2) ◽  
Author(s):  
Tyara Dwi Putri
Keyword(s):  
Corporate Governance ◽  
Agency Cost ◽  
Expense Ratio

Penelitian ini menguji pengaruh struktur kepemilikan, struktur modal, dan corporate governance terhadap agency cost pada perusahaan yang terdaftar di Bursa Efek Indonesia. Jenis data dalam penelitian ini adalah data panel. Struktur kepemilikan diukur dengan kepemilikan saham oleh pihak manajemen dan pihak institusional. Corporate governance diukur dengan jumlah dewan direksi dan persentase komisaris independen. Proksi untuk agency cost adalah expense ratio. Hasil penelitian ini menunjukkan bahwa kepemilikan institusional dan jumlah dewan direksi mampu menurunkan agency cost perusahaan.

scholarly journals FAMILY OWNERSHIP AS MODERATING VARIABLE ON THE EFFECT OF AGENCY COST ON FINANCIAL PERFORMANCE : A STUDY IN INDONESIA MANUFACTURING COMPANY

2020 ◽  
Vol 2 (2) ◽  
pp. 17
Author(s):  
Yolandafitri Zulvia
Keyword(s):  
Financial Performance ◽  
Agency Cost ◽  
Family Ownership ◽  
Return On Equity ◽  
Purposive Sampling ◽  
Expense Ratio ◽  
Manufacturing Company ◽  
Utilization Ratio

Family Ownership As Moderating Variable On The Effect Of Agency Cost On Financial Performance: A Study In Indonesia Manufacturing Company. Perusahaan manufaktur merupakan sektor terbesar yang terdapat di Bursa Efek Indonesia (BEI). Penelitian ini bertuajuan untuk mengetahui seberapa besar pengaruh agency cost terhadap kinerja keuangan perusahaan manufaktur dengan perusahaan keluarga sebagai variabel moderasi. Agency cost dalam penelitian ini diproksikan dengan expense ratio dan asset utilization ratio, sementara itu kinerja keuangan perusahaan diproksikan dengan Return on Equity (ROE). Populasi penelitian ini adalah seluruh perusahaan manufaktur yang terdaftar di Bursa Efek Indoneia (BEI) periode 2013-2017 dan sampel dipilih berdasarkan metode purposive sampling sehingga diperoleh sampel sebanyak 310 perusahaan-tahun pengamatan. Data penelitian merupakan data sekunder yang diambil dari situs resmi Bursa Efek Indonesia (BEI). Penelitian ini menggunakan regresi panel sebagai alat analisisnya. Hasil penelitian menunjukkan bahwa expense ratio memiliki pengaruh negatif signifikan terhadap kinerja keuangan perusahaan. Kemudian untuk asset utilization ratio memiliki pengaruh positif signifikan terhadap kinerja keuangan perusahaan. Sementara itu, Kepemilikan keluarga sebagai variabel moderasi tidak memperkuat ataupun memperlemah hubungan antara expense ratio dan asset utilization ratio terhadap kinerja keuangan perusahaan.     Kata Kunci : Biaya Keagenan, Kepemilikan Keluarga, ROE

Relationship between Code of Corporate Governance and Corporate Financial Performance (An Empirical Study of Food Companies Listed on KSE)

GIS Business ◽  
2017 ◽  
Vol 12 (4) ◽  
pp. 01-09
Author(s):  
Asma Rafique Chughtai ◽  
Afifa Naseer ◽  
Asma Hassan
Keyword(s):  
Corporate Governance ◽  
Stock Exchange ◽  
Securities And Exchange Commission ◽  
Executive Directors ◽  
Agency Conflicts ◽  
Cross Sectional ◽  
Return On Equity ◽  
Governance Practices ◽  
Code Of Corporate Governance ◽  
The Impact

The crucial role that implementation of Code of Corporate Governance plays on protecting the rights of minorities, shareholders, local as well as foreign investors cannot be denied. Companies all over the world are required to implement their respective Code of Corporate Governance for avoiding agency conflicts between companies management and stakeholders and for assuring transparency in accountability. This paper aims at exploring the impact of implementation of corporate governance practices (designed by Securities and Exchange Commission of Pakistan) have on the financial position of companies. For explanatory variables of the study, composition of the board as per the Code of Corporate Governance that comprises of presence of independent, executive and non-executive directors has been taken into consideration. Return on equity has been taken as an indicator of firms profitability i.e. the dependent variable. For this study, companies listed on food producing sector of Karachi Stock Exchange have been screened for excogitation of the relationship. It is an empirical research based on nine years data from 2007–2015. Using Hausman Test for selecting the data analysis technique between Fixed or Random, Fixed Cross Sectional Panel Analysis has been used for analysis of the data collected. Findings indicate that presence of independent, executive and non-executive directors as per the code requirements levies a significant impact on the profitability of companies indicated by return on equity. It is, thus concluded that companies should ensure compliance with code of governance practices to reduce not only the agency issues but also to increase their profitability.

Impact of corporate governance on financial performance of sugar sector firms listed in Pakistan stock exchange

2019 ◽  
Vol 12 (2) ◽  
Author(s):  
Muhammad Wasim Jan Khan ◽  
Usman Saeed
Keyword(s):  
Developing Countries ◽  
Corporate Governance ◽  
Financial Performance ◽  
Firm Size ◽  
Stock Exchange ◽  
Balance Sheet ◽  
Board Size ◽  
Return On Equity ◽  
Firm Financial Performance ◽  
Relationship Of

Corporate governance is considered as environment of trust, set of processes, policies and laws affecting the way corporations are administrated and directed. The previous literature in context of the corporate governance relationship with firm financial performance shows controversial findings; similarly literature shows lack of studies in context of developing countries as Pakistan. Therefore, this research explores the relationship of the corporate governance and the firm financial performance in context of developing country as Pakistan. The data has been collected from the sugar sector listed in KSE (Pakistan Stock Exchange), 20 corporations are selected as sample from sugar sector on basis of outstanding shares. Corporate governance taken as independent variable and measured as CEO biformity (CB), board size (BS), firm age (FA), firm size (FS). Financial performance of firms taken as dependent variable and measured as return on asset (ROA), return on equity (ROE), net profit margin (NPM). Data is collected for period of 2000-2013 from reports of the sugar companies listed in KSE (Pakistan Stock Exchange) issued annually and analysis of balance sheet given by State Bank of Pakistan (SBP). Result shows that CEO biformity significantly affecting firm financial performance. Board size (BS) shows partially significant impact on firm financial performance. Firms age (FA) show partially significant impact on firm financial performance. Firm size (FS) shows partially significant impact on firm financial performance. Therefore, conclusion has been drawn based on the results of analysis that this study adds new knowledge to the existing body of knowledge of corporate governance impact on firm financial performance and in context of developing countries as Pakistan. Keywords: Corporate governance, firm financial performance, sugar sector, Pakistan.

Pengaruh Islamic Social Reporting terhadap Profitabilitas (Return on Asset dan Return on Equity) Pada Bank Umum Syariah Di Indonesia

2019 ◽  
Vol 4 (2) ◽  
pp. 1
Author(s):  
Ana Santika
Keyword(s):  
Corporate Governance ◽  
Commercial Banks ◽  
Sampling Technique ◽  
Social Reporting ◽  
Annual Reports ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Collection Method ◽  
Return On Equity ◽  
Social Environmental

The act of accuracy and prudence is very important in the company because is the factor that determines the sustainability of companies such as banking. This study aims to analyze the effect of Shariah Complaints towards the profitability of Islamic Banks in Indonesia. This type of research is quantitative. The data collection method used is the documentation method and library study method. The sampling technique uses purposive sampling with the criteria of Islamic commercial banks that publish annual-reports from 2013 to 2017 from 13 Islamic commercial banks (BUS) in Indonesia. The results of this study show that the Funding and Investment, Products and Services, Employees, Community or Social, Environmental, Corporate Governance simultaneously does not have influence significantly the ROE variable, but it does significantly influence to ROA. Means that the wider the Islamic social reporting of Islamic banking, the greater the profitability of Islamic banking. In addition, high profitability will encourage managers to provide more detailed information, because they want to convince investors of company profits and its compensation for management.

Does corporate governance affect the performance of Islamic banks? New insight into Islamic countries

2020 ◽  
Vol 20 (6) ◽  
pp. 1073-1090 ◽  
Author(s):  
Ejaz Aslam ◽  
Razali Haron
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Positive Impact ◽  
Islamic Banks ◽  
Governance Mechanism ◽  
Method Of Moment ◽  
Content Type ◽  
Return On Equity ◽  
Islamic Countries ◽  
And Performance

Purpose Corporate governance plays a significant role to overcome agency issues and develop the culture of transparency and openness. In this context, this paper aims to examine how corporate governance mechanisms affect the performance of Islamic banks (IBs). Design/methodology/approach Stepwise, two-step system generalize method of moment estimation technique is used in the analysis in which control variables are added into the model sequentially. This study used data on 129 IBs from 29 Islamic countries (Middle East, South Asia and Southeast Asia) during the period of 2008 to 2017. Findings The findings suggest that the audit committee (AUDC) and Shariah board (SB) have positive impact on the performance of IBs (return on assets and return on equity). However, board size and risk management committee have negative and significant effect on the performance of IBs. CEO duality and non-executive directors have mixed relationship with the performance of IBs. These results support the argument that IBs need to improve their financial performance through appropriate governance mechanism. Research limitations/implications The findings of the study added a new dimension to the governance research that could be a valuable source of knowledge for policymakers and regulators to improve the existing governance mechanism for better performance of IBs. Originality/value The study fills the gap in the literature by addressing the issue of corporate governance on performance of IBs across countries. Agency theory is discussed to explain the relationship between corporate governance mechanism and performance.

scholarly journals Corporate Governance, Political Connections, and Bank Performance

2019 ◽  
Vol 7 (4) ◽  
pp. 62 ◽  
Author(s):  
Haris ◽  
Yao ◽  
Tariq ◽  
Javaid ◽  
Ain
Keyword(s):  
Corporate Governance ◽  
Profit Margin ◽  
Political Connections ◽  
Return On Assets ◽  
Board Size ◽  
Bank Profitability ◽  
Return On Equity ◽  
Net Interest Margin ◽  
The Impact ◽  
Interest Margin

This study investigates the impact of corporate governance characteristics and political connections of directors on the profitability of banks in Pakistan. The study uses the data of 26 domestic banks over the latest and large period of 2007–2016. Our findings firstly affirm that bank profitability is negatively affected by the presence of politically connected directors on the board, reporting significantly lower return on assets, return on equity, net interest margin, and profit margin. Secondly, our findings also affirm the negative political influence on the sustainability of the banking industry, reporting significantly lower return on assets, return on equity, net interest margin, and profit margin during the government transition of banks having politically connected directors sitting on their board. Our findings further report an inverted U-shaped relationship between board size and bank profitability, suggesting that a board size beyond 8–9 members decreases the profitability. The study further finds a positive impact of board composition, board independence, and director compensation on bank profitability, while also finding a negative impact of frequent board meetings, presence of foreign directors, and audit committee independence.

scholarly journals Impact of Corporate Governance on Financial Performance: Karachi Stock Exchange, Pakistan

2016 ◽  
Vol 6 (2) ◽  
pp. 401 ◽  
Author(s):  
Aon Waqas Awan ◽  
Javed Ahmed Jamali
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Audit Committee ◽  
Stock Exchange ◽  
Profit Margin ◽  
Audit Committees ◽  
Board Size ◽  
Good Decision ◽  
Return On Equity ◽  
The Impact

The aim of the research is to understand the impact of corporate governance on financial performance of listed companies on Karachi Stock Exchange Pakistan. Data was collected from forty two companies from different sectors like, insurance, banking, investment banking, and sugar industries. Study includes variables like profit margin & return on equity as a dependent (profitability) and board size, audit committee, annual general meetings & chief executive office (corporate governance). Using Pooled OLS, the result of the study proved those board size and audit committees have positive relationship with Profit margin and Return on Equity, if any independent variable changes it also stimulus the positively changing impact on Return on Equity (ROE) and Audit Committee (AC). This research offers imminent guidelines to the policy and decision makers in any type of firms to take good decision to set their firms hierarchy system.

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