scholarly journals Corporate Governance: Can Creditors Fit in with Companies’ Board of Directors?

2020 ◽  
Author(s):  
Bashir Mande Tsafe ◽  
Zuaini Ishak ◽  
Kamil Md Idris
Keyword(s):  
Corporate Governance ◽  
Factor Analysis ◽  
Firm Value ◽  
Statistical Tests ◽  
Two Dimensions ◽  
Sustainable Growth ◽  
Three Dimensions ◽  
Positive Effects ◽  
Depth Analysis ◽  
Credit Contracts

How do suppliers of finance make sure that firm managers enforce credit contracts, or do not invest in bad projects? This approach is missing in corporate governance research. To bridge the gap, we take steps towards developing a stakeholder perspective with the focus on examining the effects of creditor participation in a firm’s top decisions, in relation to board performance. Based on a sample of 154 questionnaire survey responses from Nigerian public firms, after relating all measured items to every construct in the statistical tests of exploratory factor analysis (EFA), we employed the use of confirmatory factor analysis (CFA) in a structural equation modelling (SEM) approach for an in-depth analysis to estimate how well the stakeholder model fits the data. Building upon the construct creditor participation, and based on the proposed theory, we confirmed three dimensions – protect risk projects, protect collateral, and enforce contracts – to be confirmed measures of the latent construct. Significant creditors such as banks interfering in the firm’s board, especially in major board decisions, can reduce the potentials of managers to engage in high-risk projects. This has significant positive effects on the board’s role performance. However, items in the two dimensions – protect collateral and enforce credit contracts show weak measurements after EFA. The consequences are a new research agenda for boards has been set. The agenda will focus on the suppliers of debt finance, as significant to the firms akin with their equity shareholders’ counterparts. This will create knowledge; reduce conflicts of interests, and exploitation; and ensure equitable distribution of firm value. The approach exposes firms to access more inclusive strategic inputs especially on important and less risky projects that will yield better margin and sustainable growth. This may stimulate further debates on other stakeholder researches that are vital to debt financiers and boards, thus becoming actionable for practitioners in decisions on projects.  

scholarly journals Complexity and corporate governance: an analysis of companies listed on the BM&FBOVESPA

2017 ◽  
Vol 28 (74) ◽  
pp. 213-228 ◽  
Author(s):  
Renata Rouquayrol Assunção ◽  
Márcia Martins Mendes De Luca ◽  
Alessandra Carvalho de Vasconcelos
Keyword(s):  
Corporate Governance ◽  
Inverse Relationship ◽  
Good Governance ◽  
Statistical Tests ◽  
Two Dimensions ◽  
Organizational Characteristics ◽  
Organizational Complexity ◽  
Governance Practices ◽  
And Control ◽  
The Relationship

ABSTRACT In light of the need to develop mechanisms of control, protection, and transparency regarding the relationships between principal and agent, and with the aim of eliminating or reducing the agency problem, corporate governance has emerged. Based on Agency Theory, separation of ownership and control of activities derives from the complexity of organizations. In this context, this study aims to analyze the relationship between dimensions of complexity and corporate governance in companies listed on the São Paulo Stock, Commodities, and Futures Exchange (BM&FBOVESPA), in which contingency factors might influence organizational characteristics. The investigation gathers data from a sample of 162 companies listed on the BM&FBOVESPA. The following statistical tests were used in the data analysis: Factor Analysis, Multiple Linear Regression, Correspondence Analysis, and Correlation Analysis. For measuring complexity, contingency variables such as age, size, diversification, and internationalization were adopted; and, to assess corporate governance, a representative index of the adoption of good governance practices was used. The results show that organizational complexity is explained by the size and diversification variables, whereas operational complexity is explained by the size, diversification, and internationalization variables. It was observed that in the two dimensions of complexity - organizational and operational - corporate governance was influenced by the diversification, internationalization, and age variables, with the latter involving an inverse relationship. It is concluded that companies displaying more complexity, in its two dimensions, record a higher level of corporate governance, which confirms the research hypothesis.

scholarly journals Does Usage of Online Social Media Help Users With Depressed Symptoms Improve Their Mental Health? Empirical Evidence From an Online Depression Community

2021 ◽  
Vol 8 ◽  
Author(s):  
Yingjie Lu ◽  
Taotao Pan ◽  
Jingfang Liu ◽  
Jun Wu
Keyword(s):  
Online Community ◽  
Two Dimensions ◽  
Three Dimensions ◽  
Negative Effects ◽  
Positive Effects ◽  
Shared Identity ◽  
Online Social Media ◽  
Negative Effect ◽  
Practical Implications ◽  
Depressed Symptoms

Online depression communities offer people with depressed symptoms new opportunities to obtain health information and provide social support for each other to fight against the depression. We sought to investigate whether usage of online community help improve depression outcomes and determine which types of usage behaviors have positive or negative effects on depression. We proposed that two dimensions of the sense of belonging (sense of identity and trust) and three dimensions of the sense of support (informational, emotional, and socializing) have significant effects on depression, and further considered gender difference and its effect on depression. We obtained a dataset consisting of 465,337 posts from 244 members from a popular online depression community to test all 10 proposed hypotheses. The results reveal that (i) the sense of shared identity, trust, informational support, and emotional support have positive effects on depression, while socializing support have negative effects on depression, and (ii) the sense of shared identity and trust have more positive effects on depression for female users than male users while socializing support has a more negative effect on depression for female users than for male users. The findings have important practical implications for designers and managers of online depression communities.

scholarly journals THE ROLE OF CORPORATE GOVERNANCE IN THE EFFECT EARNINGS MANAGEMENT HAS ON FIRM VALUE

2017 ◽  
Vol 31 (1) ◽  
pp. 51
Author(s):  
Surifah .
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Firm Value ◽  
Stock Exchange ◽  
Market Price ◽  
Positive Influence ◽  
Real Earnings Management ◽  
Positive Effects ◽  
Governance Practices

Previous researchers found that managers have conducted opportunistic earnings management (Abdolmohammadi et al., 2010; Crocker and Slemrod, 2007;Cornett et al., 2009; Jaggi et al., 2009). Corporate Governance (CG) is one of the instruments to overcome, or at least to minimize, earnings management. This research aims to provide empirical evidence about the effect of CG and earnings management on firm value, and the role of CG in the effect earnings management has on firm value. This research is needed, to explain the effectiveness of CG’s implementation by influencing earnings management, in order to lead to more efficient earnings management.This study uses national commercial banks’ data listed on the Indonesian Stock Exchange for the period 2006-2013. The research sample consists of 29 banks over an 8 year period, with a total of232 observations. The research variable consists of the value of the firm, measured by Tobin’s Q as the dependent variable, real activity-based earnings management and accrual-based earnings management as the independent variables and corporate governance, measured by the CG index, as a moderating variable.The results show that the CG index has a robust relationship with performance, controlled by both the ownership concentration’s level and the size of the bank. Corporate governance has positive effects on firm value. The bigger the corporate governance disclosure score is, the higher the market value of the bank becomes. These results indicate that markets respond to the corporate governance’s disclosure, so the company’s market price increases. The results show that the CG index reinforces the positive influence of Accrual-based Earnings Management (AEM) and Real Earnings Management (REM) on the performance. These results indicate that corporate governance practices are able to steer earnings management away from the opportunistic and into the efficiency spectrum.

Trust in E-Commerce

2008 ◽  
pp. 771-788
Author(s):  
Ye Diana Wang ◽  
Henry H. Emurian
Keyword(s):  
Factor Analysis ◽  
Confirmatory Factor Analysis ◽  
Interface Design ◽  
Two Dimensions ◽  
The Other ◽  
Three Dimensions ◽  
Design Features ◽  
Social Cue ◽  
The Social ◽  
Confirmatory Factor

The design of the interface for e-commerce transactions is one source of influence that can affect an online shopper’s trust in the merchant. This paper undertook a confirmatory factor analysis involving 14 trust-inducing interface design features that populated a conceptual framework proposed in our previous study. The factor analysis of self-reported ratings of the features, which were illustrated on a synthetic e-commerce interface by 181 survey respondents, revealed the following three underlying dimensions: (1) visual, (2) content, and (3) social-cue design dimensions. All 14 features were found to contribute to the composition of the three dimensions. The social-cue dimension was rated as less important than the other two dimensions, and shoppers who had been cheated by an online merchant showed lower overall trust ratings in comparison to the remaining shoppers. Qualitative reports by the survey respondents yielded additional insights about the importance of the interface. The results of this study may contribute to an appreciation of interface design features that may influence a user’s perception of the trustworthiness of an online merchant’s Web site.

scholarly journals The Construct Validity of Vallerand’s Academic Motivation Scale (AMS)

2021 ◽  
Vol 2021 ◽  
pp. 1-9
Author(s):  
Salem Ali Salem Algharaibeh
Keyword(s):  
Factor Analysis ◽  
Extrinsic Motivation ◽  
Academic Motivation ◽  
Two Dimensions ◽  
Three Dimensions ◽  
Factorial Structure ◽  
Factor Solution ◽  
Academic Motivation Scale ◽  
Motivation Scale ◽  
Three Factor

It seems that the academic motivation structure is affected by cultural factors. Many studies have examined the factorial structure of the academic motivation scale (AMS), and the results showed different factorial structures of AMS (e.g., Taghipour Ali Hosein et al. (EL-yazidi and Louzani, 2017) concluded that the scale consists of two dimensions; Natalya and Purwanto (2018) concluded that it consists of three dimensions; Alruaili (2020) concluded that it consists of four dimensions; Abu Awad (2009) concluded that the scale consists of six dimensions). The AMS is one of the most widely used academic motivation measures across the world. It was built on the basis of the self-determination theory. The current study aimed at investigating the factorial structure of the AMS using the exploratory factor analysis (PCA) and the confirmatory factor analysis (CFA). The AMS was applied to a sample of 401 university students. The results of PCA suggested a three-factor solution (intrinsic motivation, extrinsic motivation, and Amotivation), and CFA was conducted for three competing structures (three factors, five factors, and seven factors); the results confirmed the three-factor solution for the AMS. The results also showed that the AMS dimensions had good alpha coefficient values which were greater than the acceptable cut-off value of 0.7. In conclusion, the Jordanian version of the AMS is a valid scale that consists of 24 items loaded on three factors (intrinsic, extrinsic, and Amotivation) for measuring academic motivation.

Consumer-Based Brand Authenticity and Brand Trust in Brand Loyalty in The Korean Coffee Shop Market

2020 ◽  
pp. 109634802098005
Author(s):  
Soon-Ho Kim ◽  
Minseong Kim ◽  
Stephen Holland ◽  
Kyle M. Townsend
Keyword(s):  
Brand Loyalty ◽  
Two Dimensions ◽  
Three Dimensions ◽  
Brand Trust ◽  
Coffee Shop ◽  
Brand Authenticity ◽  
Positive Effects ◽  
Dynamic Relationships ◽  
Brand Affect

Based on a well-established framework, this study proposes and tests a model that attempts to understand the dynamic relationships among three dimensions of brand authenticity (i.e., quality commitment, heritage, and sincerity), two dimensions of brand trust (i.e., brand reliability and brand intention), brand affect, and brand loyalty among coffee shop customers. The verified model confirmed that all aspects of brand authenticity had significant effects on brand reliability and brand intention. Two aspects of brand trust had positive effects on brand affect and brand loyalty. Last, brand affect was, in turn, positively associated with brand loyalty. This research suggests that coffee shop brand managers may be well served by focusing on developing and strengthening brand authenticity and brand trust.

scholarly journals Examination of UNDP Goal Orientation of CSR Activities towards Sustainable Development by Corporates in Pharmacy Sector

2020 ◽  
Vol 9 (4S) ◽  
pp. 14-27
Keyword(s):  
Sustainable Development ◽  
Corporate Governance ◽  
Social Responsibility ◽  
Goal Orientation ◽  
Development Program ◽  
Recent Decade ◽  
Two Dimensions ◽  
Sustainable Growth ◽  
Annual Reports ◽  
United Nations Development Program

In recent decade, the two words viz. “Corporate Governance” and “Corporate Social Responsibility (CSR)” have been seeking increasing attention stake holders. The ultimate result of them is assumed that they should turn into sustainable development of the country. There are two dimensions to these concepts. The one dimension is of statutory compliance and another is non statutory initiatives. Thus, every company is spending on activity in some form which falls under the task of discharging the social responsibility. However, it is interesting to look at these activities from the goals of the sustainable development. The indicators of sustainable development are the results of these activities. These goals are also reflected from the nature of activities undertaken by a corporate. United Nations Development Program (UNDP) has given the list of 17 goals which are in recommendatory nature and it is expected that all countries should work towards the achievement of these goals. The authors intend to study these goals and analyses these activities from the direction point of view towards the goal. There are in all 17 goals/results are considered for the purpose of analysis. The data is taken from the most authentic source i.e. annual reports of the companies from Pharmacy sector for the year 2018-19. The activities are classified based on their nature. Further, they are examined in the light of these goals/objectives in which there are very high propensity to result into these goals. Comparison is made on the parameters that whether conducting the activities in a particular sector will lead to progressing towards achievement of these goals. With reference to above said analysis and the literature regarding Corporate Responsibility and Corporate Governance have given their suggestions. These suggestions shall be useful in creation of objectivity for the Corporate towards the Sustainable Growth and discharge their responsibilities more meaningfully.

scholarly journals Exploratory Factor Analysis of Institutional Environment: An Evidence from Gender Perspective in China’s Microebusiness

2020 ◽  
Vol 218 ◽  
pp. 03022
Author(s):  
Xi Zhao ◽  
Knerr-Sievers Beatrice ◽  
Qiuting Lu
Keyword(s):  
Factor Analysis ◽  
Exploratory Factor Analysis ◽  
Institutional Environment ◽  
Two Dimensions ◽  
Three Dimensions ◽  
Female Group ◽  
Gender Perspective ◽  
Cronbach's Alpha ◽  
New Perspective ◽  
Cognitive Dimensions

This study proposes regulatory, normative, and cognitive dimensions and empirically investigates how these three dimensions take form in a measure of institutional environment from gender perspective. The study carried out the work within the micro-ebusiness sector in China and collected the data with 689 females and 357 males. Exploratory factor analysis (EFA) is used to test the dimensionality of institutional environment. It also used Cronbach’s alpha to check the reliability of the intended measure. The findings show that the early scholars’ measurement of the institutional environment in regulatory, normative, and cognitive dimensions still applies to Chinese males in the micro-ebusiness sector. However, the specific items regarding regulatory and normative form distinct factors of what mixed the two dimensions in female group. From the evidence of China, it challenges the widely recognized measurement of institutional environment, which need to be redesigned for females in regulatory and normative dimensions. The study outcomes provide a better understanding of how different the institutional environment was evaluated and functioned to female and male. It can help government departments reconsider and improve institutional environment to promote entrepreneurship from gender perspective. This new perspective would add some insights into the literature of micro-ebusiness and enhance the knowledge of the dimensionality of institutional environment.

scholarly journals How Financial Performance and State-Owned Enterprise (SOE) Values Are Affected by Good Corporate Governance and Intellectual Capital Perspectives

Economies ◽  
2021 ◽  
Vol 9 (4) ◽  
pp. 134
Author(s):  
Yustinus Budi Hermanto ◽  
Lusy Lusy ◽  
Maria Widyastuti
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Intellectual Capital ◽  
Firm Value ◽  
Good Governance ◽  
Stock Exchange ◽  
Total Study Population ◽  
Positive Effects ◽  
Company Value ◽  
Good Corporate Governance

The implementation of good governance and attention to resources will affect company survival. The purpose of this study was to examine the effect of good corporate governance and intellectual capital on financial performance and company value through statistical and econometrical tests on SOEs in Indonesia. This is quantitative research with state-owned enterprises (SOEs) listed on the Indonesia Stock Exchange. The total study population was 16 SOEs. This study used a saturated sample. Furthermore, the exogenous variables in this study were good corporate governance (GCG) and intellectual capital, whereas the endogenous variables were the company and financial performance. This study used the statistical analysis inferential because the variables used indicators and were formative. The results indicated that GCG and financial performance have positive effects on firm value, intellectual capital does not affect company value, and GCG and intellectual capital have positive effects on financial performance. The evaluation of indirect effects in this study showed that financial performance mediates the effect of intellectual capital and GCG on company value.

Pengaruh Kinerja Keuangan dan Good Corporate Governance (GCG) Terhadap Nilai Perusahaan

MBIA ◽  
2019 ◽  
Vol 17 (2) ◽  
pp. 1-10
Author(s):  
Rolia Wahasusmiah
Keyword(s):  
Corporate Governance ◽  
Firm Value ◽  
Sampling Method ◽  
Total Population ◽  
Annual Report ◽  
Stock Exchange ◽  
Secondary Data ◽  
Positive Influence ◽  
Manufacturing Companies ◽  
Good Corporate Governance

This study aims to determine the effect of financial performance and good corporate governance (GCG) on the value of companies in manufacturing companies listed on the stock exchange Indonesia. The type of data used is secondary data in the form of annual report 2016. Population used in this study are all companies listed on the Indonesia Stock Exchange (BEI). This research uses purposive sampling method with total population of 144 companies and sample of 31 companies. The results show that simultaneously ROA, OPM, NPM, KM, and KI have a positive influence on firm value. While partially ROA  have a positive influence on firm value. While OPM, NPM, KM, and KI have no positive influence on firm value).

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