Investigating The Effectiveness Of Corporate Governance Code Revisions On The Perspective Of The Revision Interval

Thisstudy investigatesthe effectiveness of corporate governancecode revisionsonfirm value using 35 countries’ public listed firms over 2007-2014.First, this study finds that progressive code revisions have significant positive relationship with firm value. Second, this study finds that theinterval ofcorporate governancecode revision is significant to influence the effectiveness of code revisions. Further analysis reveals that the relationship between code revision interval and firm value is non-linear, whichis depicted in inverted U-shaped. The findings suggest that a moderate code revision interval, i.e. 4 years once is optimal to maximize firm value. In overall, the findings of thisstudy have suggestedseveral practical implications to the development of thenationalcodesof corporate governance.

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Performance, corporate governance and new regulation

ENERO-JUNIO 2021 - Revista Innovaciones de Negocios ◽

10.29105/rinn9.18-4 ◽

2017 ◽

Vol 9 (18) ◽

Author(s):

Heriberto García

Keyword(s):

Corporate Governance ◽

Financial Performance ◽

Financial Market ◽

Information Disclosure ◽

Potential Growth ◽

Listed Firms ◽

Risk Return ◽

Corporate Governance Code ◽

Governance Practices ◽

The Relationship

Abstract. After the adoption of the Corporate Governance Code (Code) in Mexico, many companies increased financial performance and the leveraged during the following five years; we investigated the effect of how those firms improved the corporate governance practices and how was translated into better risk return company. We analyzed how and where better corporate governance practices affects performance and what was the relationship with Transparency, New Regulation and Governance Practices. Also we explored the gaps between transparency and information disclosure of Mexican Firms listed in U.S stockexchange and non U.S listed firms our findings were related to the potential growth of the Mexico Financial Market, Law and Finance.Keywords: corporate governance, financial performance, regulationResumen. Después de la adopción del Código de Gobierno Corporativo en México, algunas compañías incrementaron el desempeño financiero y el uso de deuda durante los siguientes cinco anos, nuestra investigación se enfoca en como dichas compañías mejoraron sus prácticas de gobierno corporativo y como estas prácticas se han traducido en un mejor relación de riesgo y rendimiento. En esta investigación exploramos cómo y en dónde mejores prácticas de gobierno corporativo afectan el desempeño y qué relación tiene con laTransparencia, Nuevas Regulaciones y prácticas de Gobierno Corporativo. Con lo anterior también identificamos aquellas compañías que cotizan fuera de México para identificar potenciales diferencias en dichas prácticas.Palabras clave: desempeño financiero, gobierno corporativo, regulación

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Corporate Investment and Hotel Firm Value: Does Corporate Governance Matter in Financially Constrained Firms?

Cornell Hospitality Quarterly ◽

10.1177/1938965517748772 ◽

2018 ◽

Vol 59 (4) ◽

pp. 339-351

Author(s):

Tarik Dogru

Keyword(s):

Corporate Governance ◽

Corporate Finance ◽

Firm Value ◽

Financial Constraints ◽

Financial Constraint ◽

Corporate Investments ◽

Corporate Governance Mechanisms ◽

The Relationship ◽

Practical Implications

Corporate investments are expected to create value for firms. Although some studies report evidence supporting such expectations, many studies document contradictory findings. However, it is not clear why corporate investments create value in some firms but reduce value in others. The purpose of this study is to examine the extent to which the quality of corporate governance and the degrees of financial constraints affect the relationship between corporate investments and hotel firm value in a unified model where both weak corporate governance and financial constraint problems are concurrently observed. Shareholders of poorly governed firms place a lower value on corporate investments compared with those of well-governed firms, whereas shareholders of financially constrained firms perceive corporate investments to be of greater value compared with those of unconstrained firms. The results further showed that CEOs of financially constrained firms make value-increasing investments despite poor corporate governance mechanisms. Theoretical and practical implications are discussed within the realm of corporate finance theories.

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Corporate governance and shareholder value in listed firms: An empirical analysis in five countries (France, Italy, Japan, UK, USA)

Corporate Ownership and Control ◽

10.22495/cocv10i3siart3 ◽

2013 ◽

Vol 10 (3) ◽

pp. 36-50 ◽

Cited By ~ 1

Author(s):

Barbara Monda ◽

Marco Giorgino

Keyword(s):

Corporate Governance ◽

Firm Value ◽

One Dimension ◽

Four Dimensions ◽

Listed Firms ◽

Governance Systems ◽

Governance Quality ◽

Corporate Governance Quality ◽

The Relationship

In this paper, we design a multi-dimensional index to measure the quality of Corporate Governance systems adopted by firms and use it to investigate the correlation between Corporate Governance quality and firm value. Unlike most studies that examine the relationship between only one dimension of Governance and firm value, we present a complex index (CGI) composed of 39 variables referable to four dimensions: Board, Remuneration, Shareholder Rights and Disclosure. By analysing a sample of 100 large companies listed on the main stock markets in five different countries over three years (2009-2011), we confirm the widespread hypothesis of the existence of a positive and statistically significant relationship between Corporate Governance, as measured by a subset of 12 variables, and firm value.

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Corporate Sustainability Management, Earnings Transparency, and Chaebols

Sustainability ◽

10.3390/su12104222 ◽

2020 ◽

Vol 12 (10) ◽

pp. 4222 ◽

Cited By ~ 1

Author(s):

Hyun Min Oh ◽

Sam Bock Park ◽

Hee Young Ma

Keyword(s):

Corporate Governance ◽

Earnings Management ◽

Information Asymmetry ◽

Differential Effect ◽

Positive Relationship ◽

Corporate Sustainability ◽

Sustainability Management ◽

Significant Positive Relationship ◽

Corporate Risk ◽

The Relationship

This study examines the association of corporate sustainability management with earnings transparency. Based on previous studies that indicate that sustainability management activities reduce earnings management and corporate risk and increase a firm’s value, this study predicts that the firms with effective sustainability management will have a high earnings transparency. In addition, this study examines the differential effect of corporate sustainability management on earnings transparency according to whether or not a firm belongs to a chaebol. We use Environmental, Social, and Governance (ESG) ratings of the Korean Corporate Governance Service (KCGS) as a proxy for corporate sustainability management and apply the method of Cheng and Subramanyam (2008) to measure earnings transparency. The empirical results show that there is a significant positive relationship between corporate sustainability management and earnings transparency. Furthermore, the association between corporate sustainability management and earnings transparency is more negative for firms belonging to a chaebol. These results indirectly show that firms belonging to a chaebol have a lower level of information asymmetry than firms not belonging to a chaebol. This study focuses on corporate sustainability management as a determinant of earnings transparency, and is useful for examining the effect of belonging to a chaebol on the relationship between sustainability management and earnings transparency. Our results are expected to provide important implications not only for managers, but also for investors and regulators.

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A Study of the Relationship between Corporate Governance and Non-business Real Estate

Korean Journal of Financial Studies ◽

10.26845/kjfs.2021.06.50.3.279 ◽

2021 ◽

Vol 50 (3) ◽

pp. 279-313

Author(s):

Changu Jeon ◽

Hyangmi Choi

Keyword(s):

Corporate Governance ◽

Real Estate ◽

Firm Value ◽

Positive Relationship ◽

Negative Relationship ◽

Shareholder Wealth ◽

Private Benefits ◽

Controlling Shareholders ◽

The Impact ◽

The Relationship

Corporate non-business real estate can be used for the private benefits of controlling shareholders, but is also likely to enhance shareholder wealth. This study explores the impact of corporate governance to address this contradiction, particularly the ownership-control disparity on non-business real estate. We further examine the moderating effect of foreign blockholders on the relationship, then conduct additional analyses on the relationship between non-business real estate and firm value. The results are as follows. First, the disparity has a consistently positive relationship with non-business real estate, which implies that corporate non-business real estate can be utilized for expropriation for the benefit of controlling shareholders. Second, the relationship between the disparity and non-business real estate is mitigated by foreign blockholders. Third, we find that non-business real estate has a negative relationship with firm value. This result implicates the inefficiency of non-business real estate and the possibility of agency problem. Forth, investment in non-business real estate is likely to decrease firm value, compared with investment in core business. This study revisits and extends corporate governance research in terms of non-business real estate by identifying the presence of agency problems and monitoring effects of outside blockholders.

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The Effects of Financial Restatement and Corporate Governance Mechanisms on Firm Value

International Journal of Engineering and Advanced Technology - Regular Issue ◽

10.35940/ijeat.f1094.0986s319 ◽

2019 ◽

Vol 8 (6S3) ◽

pp. 513-523

Keyword(s):

Corporate Governance ◽

Firm Value ◽

Negative Impact ◽

Governance Mechanisms ◽

Moderating Variables ◽

Listed Firms ◽

Financial Restatement ◽

Corporate Governance Mechanisms ◽

Financial Restatements ◽

The Relationship

This study examines the relationship between financial restatement and firm value in Malaysian public listed firms. In addition, it assesses the moderating effects provided by corporate governance mechanisms on the relationship of financial restatements and firm value. The study covers the period 2009-2015 and involves 142 public listed companies in Bursa Malaysia with financial restatements. The findings reveal that financial restatements do adversely impact firm value and that financial restatements negatively and significantly affect firm value. In terms of moderating variables, we find that the interaction between financial restatement and family ownership is negatively associated with firm value. In addition, this study also finds that the interaction between financial restatement and institutional ownership is positively and significantly associated with firm value. In conclusion, in the Malaysian context, this study establishes that financial restatement has a negative impact on firm value

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The Effects of Financial Restatement and Corporate Governance Mechanisms on Firm Value

International Journal of Engineering and Advanced Technology - Regular Issue ◽

10.35940/ijeat.f1126.0986s319 ◽

2019 ◽

Vol 8 (6S3) ◽

pp. 683-692

Keyword(s):

Corporate Governance ◽

Firm Value ◽

Negative Impact ◽

Governance Mechanisms ◽

Moderating Variables ◽

Listed Firms ◽

Financial Restatement ◽

Corporate Governance Mechanisms ◽

Financial Restatements ◽

The Relationship

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Earnings manipulations in politically influenced firms

Corporate Ownership and Control ◽

10.22495/cocv15i1art6 ◽

2017 ◽

Vol 15 (1) ◽

pp. 65-71 ◽

Cited By ~ 2

Author(s):

Muhammad Sadiq ◽

Zaleha Othman

Keyword(s):

Corporate Governance ◽

Earnings Management ◽

Positive Relationship ◽

Stock Exchange ◽

Earnings Quality ◽

Listed Companies ◽

Large Sample ◽

Listed Firms ◽

Political Influences ◽

The Relationship

This paper investigates the relationship between political influences and earnings manipulations because little has been known about the relationship between both variables using multiple proxies. The authors measure earnings manipulation using models developed by Bhattacharya et al. (2003) and McNichols (2002), for a large sample of 129 listed firms in Pakistan Stock Exchange over the period 2009–2013. This study finds that politically influenced firms are involved in accruals earnings management and lack transparency, implying lower earnings quality. Our findings are consistent with prior studies, which show the positive relationship between political influences and earnings manipulations. However, the authors add contribution by using three proxies of political influences. The findings are useful for regulators to monitor earnings manipulations activities among public listed companies. In addition, the findings add to the growing literature in the field of corporate governance.

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Good Corporate Governance dan Kinerja Non Keuangan

JIATAX (Journal of Islamic Accounting and Tax) ◽

10.30587/jiatax.v1i2.1019 ◽

2018 ◽

Vol 1 (2) ◽

pp. 160

Author(s):

Retno Wulandari ◽

Tumirin Tumirin ◽

Suwandi Suwandi

Keyword(s):

Corporate Governance ◽

Positive Relationship ◽

Corporate Performance ◽

Control Variable ◽

Employee Development ◽

Employee Productivity ◽

Growth Opportunities ◽

Significant Positive Relationship ◽

Good Corporate Governance ◽

The Relationship

The purpose of the research is to know the relationship between corporate governance and non financial corporate performance. The rating of corporate governance perception index (CGPI) is used by the Indonesian Intitute for Corporate Governance to meansure the corporate governance implementation, employee productivity as a business internal prespective measurement, and employee development corverage as a learning and growth perspective measurement. This research also uses control variable that are activa composition and growth opportunities. Using a multiple regression to test the hypothesis that corporate governance and non financial corporate performance are positively related. The analysis shows that there is a significant positive relationship between corporate governance index and employee productivity, but there is no significant positive between corporate governance and employee development coverage.

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The Impact of Corporate Governance on the Value of the Company in the Egyptian Stock Market

Business Ethics and Leadership ◽

10.21272/bel.3(4).81-90.2019 ◽

2019 ◽

Vol 3 (4) ◽

pp. 81-90

Author(s):

E.M. Elhennawy

Keyword(s):

Corporate Governance ◽

Stock Market ◽

Firm Value ◽

Positive Relationship ◽

Stock Exchange ◽

Audit Committees ◽

Governance Index ◽

Special Rules ◽

The Impact ◽

The Relationship

This research aims to examine the relationship between corporate governance and the value of the company in the stock market, using a sample of non-financial companies listed on the Egyptian stock exchange for the period of four years 2015-2018. The study was conducted on companies registered in the Egyptian stock market, but after the exclusion of financial institutions because they are subject to special rules for disclosure and transparency and oversight, where a sample of non-financial companies will be selected at random. And You will get the necessary data for the applied research through the financial statements and reports of the Board of Directors and reports to the audit committees of listed companies in the Egyptian stock market during the period from 2015 and 2018, and the researcher will depend on the method of regression analysis to test the research hypotheses. The research problem stems from the need to answer the following questions: 1. Does corporate governance affect the level of the company’s performance? 2. Does the performance of the company’s affect value in the stock market? 3. Does corporate governance affect the value of the company in the stock market? The research is aimed at theoretical apartment: to identify the general framework for corporate governance in the light of the latest standards and studies and analyze the most important studies that have looked at the relationship between corporate governance and performance level of the company, as well as studies that looked at the relationship between corporate governance and the company’s value in the stock market in order to benefit from the findings of previous studies in this regard. The paper presents the results of an empirical analysis, studies the impact of corporate governance on the value of the company in the Egyptian stock market, which showed that there is a positive relationship, but not significant between the corporate governance index and the ratio of market value to book value per share, and the results indicate that there is a positive relationship, but not significant between the corporate governance index and the percentage of Tobin’s Q. The results of the research can be useful through its response to the theme, which is a vital and important as it tests the relationship between corporate governance mechanisms and the performance of the company and its value in the stock market with the application in the Egyptian environment. Keywords: corporate governance, firm value, and firm performance.

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