scholarly journals The Impact Of Corporate Governance on The Financial Performance in Malaysia

2021 ◽  
Vol 5 (1) ◽  
pp. 41-58
Author(s):  
NURFATANAH ABDULLAH
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Firm Size ◽  
Audit Committee ◽  
Committee Meeting ◽  
Board Size ◽  
Firm Financial Performance ◽  
Normality Test ◽  
Lm Test ◽  
The Impact

The aim of this study is to investigate the relationship between corporate governance and firm financial performance in Malaysia. This study is mainly focusing on four sections of corporate governance which are board independent, board size, the frequency of audit committee meeting and firm size. The population of this study is Top 30 firms in Malaysia that are public listed in Bursa Malaysia while for the period, this study focusses on year 2016 to 2019 which is 4 years. This study uses Return on Assets (ROA) to measure the firm effectiveness and efficiency. As for statistical analysis, this study uses E-View to run all the test such as Breusch-Godfrey Serial Correlation LM Test, Hausman Test, Ordinary Least Squared (OLS) method, Autocorrelation, Multicollinearity and Normality Test. According to the results of the analysis, board independent has positive insignificant relationship with firm performances while board size and firm performances have negative and insignificant relationship. As for the frequency of audit committee meeting and firm size, the results display that both variables have negatively significant relationship with the performances of the firm. Apart from that this study use two theory which are Prospect Theory and Agency Theory.

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.

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.

Role of Corporate Governance in Shareholders Value Creation

2017 ◽  
Vol 8 (2) ◽  
pp. 70-82
Author(s):  
Muhammad Atif Khan ◽  
Muhammad Asif Khan ◽  
Idrees Liaqat
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Value Creation ◽  
Performance Optimization ◽  
Audit Committee ◽  
Positive Impact ◽  
Firm Financial Performance ◽  
Long Run ◽  
The Impact

The mechanism of governing corporate affairs in line with strategic goal of shareholders' value creation (SVC) has been pivotal debate among academic and institutional scholars over last few decades. Most of the studies in developing countries including Pakistan, have considered more conventional measures, like firm financial performance to examine the impact of corporate governance (CG). Theoretically, firm financial performance optimization has little role in maximizing SVC, that rarely streams to shareholders' exchequer. Therefore, the study is unique in its nature that identifies market capitalization, the most appropriate measure of value creation for shareholders over long run. The authors gathered panel and longitudinal data pertaining to PSX-100 listed firm over the period of 10 years ranging from 2006-15, which is analyzed using multivariate regression. Hausman and Likelihood tests guide the process of appropriate econometrics model selection. Empirical findings reveal that CG dimensions such as audit committee independence (ACI), managerial ownership (MO) and ownership concentration (OC) have positive impact on SVC, except board size (BS) and board independence (BI). The study offers valuable policy recommendations to make CG practices more effective, however, application of the model proposition at macro and micro level can be a substantial extension to literature incorporating some controlling dimensions.

scholarly journals Corporate governance structure and firm’ financial performance: Evidences from Egypt

2014 ◽  
Vol 10 (1) ◽  
pp. 49-59 ◽  
Author(s):  
Mohammed M. Soliman ◽  
Aiman A. Ragab ◽  
Mohammed B. Eldin
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Audit Committee ◽  
Audit Quality ◽  
Positive Impact ◽  
Governance Structure ◽  
Corporate Governance Structure ◽  
Ceo Duality ◽  
Firm Financial Performance ◽  
The Impact

Recent financial international scandals have generated hyped interest in the area of corporate governance as a mean to mitigate financial problems faced in developing nations. The purpose of this study is to examine the link between corporate governance structure and firm’ financial performance in Egypt. The data for analysis are gathered from manual review of the financial statements and websites of the thirty enterprises that make up the (EGX 30) covering the four years period 2007-2010. Results from the study indicate that board size; the presence of audit committee; and audit quality significantly have relationship with firm’ financial performance measured by ROA and ROE. The results also, indicate that board independence; and institutional ownership have no significant correlation with firm’ financial performance. For CEO duality, the results indicate that CEO duality has a positive impact upon companies’ financial performance measured by ROE, at the same time, is not correlated with the ROA measure of financial performance. This study is important because it offers evidence on the impact of corporate governance structure on firm financial performance. In addition, it provides useful information that is of great value to policy makers, academics and other stakeholders.

scholarly journals Impact of Corporate Governance on Firm Financial Performance in Islamic Financial Institution

2015 ◽  
Vol 51 ◽  
pp. 106-110 ◽  
Author(s):  
Najeeb Haider ◽  
Nabila Khan ◽  
Nadeem Iqbal
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Audit Committee ◽  
Positive Relationship ◽  
Banking Sector ◽  
Financial Institution ◽  
Annual Reports ◽  
Islamic Banking ◽  
Board Size ◽  
Firm Financial Performance

The paper discusses the influence and relationship between corporate governance practices and firm financial performance in Islamic banking sector. Main purpose of this study is to find or identify various factors or variables that affects the firm financial performance. Corporate governance focuses on three meters as board size, number of meeting and audit committee size and firm financial performance has also three indicators return on equity, return on asset and earning per share. Data relates to corporate governance and firm financial performance is collected from annual reports of different Islamic banks to analyze the results. Data reveals the positive relationship between corporate governance and financial performance of Islamic banking sectors. The most outstanding results of this study has considerable and strong positive relationship in large board size and firm financial performance in developing countries as Pakistani circumstances.

Role of Corporate Governance in Shareholders Value Creation

2018 ◽  
pp. 344-358
Author(s):  
Muhammad Atif Khan ◽  
Muhammad Asif Khan ◽  
Idrees Liaqat
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Value Creation ◽  
Performance Optimization ◽  
Audit Committee ◽  
Positive Impact ◽  
Firm Financial Performance ◽  
Long Run ◽  
The Impact

The mechanism of governing corporate affairs in line with strategic goal of shareholders' value creation (SVC) has been pivotal debate among academic and institutional scholars over last few decades. Most of the studies in developing countries including Pakistan, have considered more conventional measures, like firm financial performance to examine the impact of corporate governance (CG). Theoretically, firm financial performance optimization has little role in maximizing SVC, that rarely streams to shareholders' exchequer. Therefore, the study is unique in its nature that identifies market capitalization, the most appropriate measure of value creation for shareholders over long run. The authors gathered panel and longitudinal data pertaining to PSX-100 listed firm over the period of 10 years ranging from 2006-15, which is analyzed using multivariate regression. Hausman and Likelihood tests guide the process of appropriate econometrics model selection. Empirical findings reveal that CG dimensions such as audit committee independence (ACI), managerial ownership (MO) and ownership concentration (OC) have positive impact on SVC, except board size (BS) and board independence (BI). The study offers valuable policy recommendations to make CG practices more effective, however, application of the model proposition at macro and micro level can be a substantial extension to literature incorporating some controlling dimensions.

Impact of Corporate Governance on the Cash Holding of the Firms: An Empirical Study of Indian Manufacturing Sector

GIS Business ◽  
2017 ◽  
Vol 12 (4) ◽  
pp. 47-52
Author(s):  
Karam Pal Narwal ◽  
Sonia Jindal
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Manufacturing Sector ◽  
Control Variable ◽  
Cash Holding ◽  
Executive Directors ◽  
Control Effect ◽  
Board Size ◽  
Indian Manufacturing Sector ◽  
The Impact

The paper empirically examines the impact of corporate governance on the cash holding of the firms. The components of corporate governance are measured by board size, board meeting, audit committee members, directors remuneration and non executive directors and the cash holding is measured with the log of average cash and size is taken as control variable for the control effect on the dependent variables. Moreover, correlation and panel regression model were employed to examine the relationship between the corporate governance and cash holding. Empirical data was collected from 96 firms over the period of 2004-05 to 2013-14. The results show that directors remuneration and the number of audit committee members positively influence the cash holding and the board size also positively influences the cash holding whereas, the non executive directors and the board meetings do not play any role in enhancing the cash holding.

scholarly journals TATA KELOLA DAN KINERJA KEUANGAN BADAN USAHA MILIK NEGARA (BUMN) GO PUBLIC PERIODE 2014-2018

2021 ◽  
Vol 10 (1) ◽  
pp. 82-101
Author(s):  
Andika Dwi Pradito ◽  
Axel Giovanni ◽  
Devi Wahyu Utami
Keyword(s):  
Corporate Governance ◽  
Linear Regression ◽  
Financial Performance ◽  
Empirical Evidence ◽  
Audit Committee ◽  
Stock Exchange ◽  
Analytical Tool ◽  
Board Independence ◽  
Government Ownership ◽  
Board Size

Abstrak: Tata Kelola Dan Kinerja Keuangan Badan Usaha Milik Negara (BUMN) Go Public Periode 2014-2018. Penelitian ini bertujuan untuk memberikan bukti empiris mengenai pengaruh tata kelola perusahaan terhadap kinerja keuangan Badan Usaha Milik Negara (BUMN) yang terdaftar di Bursa Efek Indonesia (BEI) selama periode 2014-2018. Sampel penelitian yang memenuhi kriteria berjumlah 12 Badan Usaha Milik Negara (BUMN). Alat analisis yang digunakan adalah regresi linear. Hasil penelitian memberikan bukti mengenai urgensi komite audit dalam tata kelola perusahaan. Penelitian ini juga menunjukan bahwa board size, board independence serta kepemilikan pemerintah tidak memiliki peran dalam menjelaskan variabilitas kinerja keuangan Badan Usaha Milik Negara (BUMN).Kata kunci: Badan Usaha Milik Negara (BUMN), kinerja keuangan, tata kelola perusahaanAbstract: Governance and Financial Performance of State-Owned Enterprises (SOEs) Go Public Period 2014-2018. This study aims to provide empirical evidence regarding the effect of corporate governance on the financial performance of State-Owned Enterprises (SOEs) listed on the Indonesia Stock Exchange (IDX) during the 2014-2018 period. Research samples that met the criteria totaled 12 State-Owned Enterprises (BUMN). The analytical tool used is linear regression. The results of the study provide evidence of the urgency of the audit committee in corporate governance. This study also shows that board size, board independence, and government ownership do not have a role in explaining the variability in the financial performance of SOEs.Keywords: corporate governance, financial performance, state-owned enterprises (SOEs)

scholarly journals Pengaruh Mekanisme Corporate Governance Terhadap Kinerja Keuangan Badan Usaha

2010 ◽  
Vol 3 (2) ◽  
Author(s):  
Filia Puspitasari ◽  
Endang Ernawati
Keyword(s):  
Corporate Governance ◽  
Firm Size ◽  
Foreign Debt ◽  
Ownership Concentration ◽  
Managerial Ownership ◽  
Governance Mechanism ◽  
Outside Directors ◽  
Board Size ◽  
Corporate Governance Mechanism ◽  
The Impact

Nowdays, most researches in corporate governance field are conducted by researchers based on rising of many firms to become public corporation. According to this situation, they have to separate their functions on ownership and control of the firm. As result, it will arise agency conflict between owners and managers. The corporation enable solve the problem by apply the corporate governance mechanism optimally. This research is a replication research is conducted by Sanda et al (2005). It’s explained the specific study about the impact of corporate governance mechanism include managerial ownership, board size, outside directors, ownership concentration, and debt toward financial performance that measured by ROA, ROE, PER, and TOBINS’Q. The samples of this research are all corporations which listed at Bursa Efek Indonesia (BEI) by all sectors that delivered financial statement on time by regulation. The period of time in this research determined on 2005-2007. The model is extended by quadratic of managerial ownership, quadratic of board size, quadratic of ownership concentration, CEO foreign and firm size as control variables, and sectoral dummy. The result of this research explained that corporate governance mechanism simultaneously influence to ROA and ROE significantly. On partially, ROA is influenced by CEO foreign, debt, and firm size significantly. And ROE is inluenced by CEO foreign, firm size, and sector of basic industry significantly.

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