scholarly journals The Value of Board Diversity in the Relationship of Corporate Governance and Investment Decisions of Pakistani Firms

2020 ◽  
Vol 6 (4) ◽  
pp. 146 ◽  
Author(s):  
Nauman Iqbal Mirza ◽  
Qaisar Ali Malik ◽  
Ch Kamran Mahmood
Keyword(s):  
Corporate Governance ◽  
Positive Impact ◽  
Stock Exchange ◽  
Panel Data Analysis ◽  
Investment Decisions ◽  
Board Independence ◽  
Board Size ◽  
Board Diversity ◽  
The Impact ◽  
The Relationship

Inspired by the studies on the impact of diversity among decision-making groups, this study was carried out to examine whether the diversity of the members of the board of directors, encompassing gender, nationality, education, and experience, moderates the relationship between the corporate governance and investment decisions of listed companies of the Pakistan Stock Exchange. Furthermore, the determinants of investment decisions in the context of Pakistani firms’ are also explored. Panel data analysis techniques are used to gauge the cause and effect relationship among the variables. We find short-term liquidity and profitability are the determinants of Pakistani firms’ investment decisions, both having adverse relationships. Moreover, we explore board independence, and chief executive officer (CEO) duality has a significant positive impact on investment decisions. We further find that experience diversity strongly moderates the relationship between board independence and board size with investment decisions in the opposite direction. Education diversity moderates the relation of board size and investment decisions in the same direction. Foreign directors’ presence on the board also significantly moderates the relationship between board independence and investment decisions. The results of this empirical study confirm that board diversity moderates the relationship between corporate governance and investment decisions.

Corporate Governance Mechanism on Financial Performance (Evidence from the Indonesia’s Listed State-owned Enterprises)

2021 ◽  
Vol 1 (1) ◽  
pp. 24-34
Author(s):  
Anak Agung Kompiyang Ratih Maldini ◽  
Pananda Pasaribu ◽  
Christian Haposan Pangaribuan
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Positive Impact ◽  
Stock Exchange ◽  
Governance Structure ◽  
Board Independence ◽  
Governance Mechanism ◽  
Good Corporate Governance ◽  
Corporate Governance Mechanism ◽  
The Impact

Objective – This study aims to find the impact of privatization, which proxied by good corporate governance toward the financial performance of SOEs in Indonesia. Methodology – This study used 16 privatized SOEs that are listed in Indonesia Stock Exchange and also 16 privatized non-SOEs as the comparison. The data is collected from the year 2014 to 2018 and analyzed by using multiple regression panel data. Findings – This study found that director size and board independence have a positive impact toward SOEs financial performance. The director size and board independences have a positive significant impact toward the SOEs financial performance while the privatized non-SOEs is not significantly affected Novelty – This study examines proper governance structure in SOEs and non-SOEs, thus providing new insights about good corporate governance regulation in the Indonesian context.

Corporate Governance, Firms’ Characteristics and Environmental Performance Disclosure Practices of Indian Companies

2019 ◽  
Vol 12 (2) ◽  
pp. 142-155
Author(s):  
Ritu Pareek ◽  
Krishna Dayal Pandey ◽  
Tarak Nath Sahu
Keyword(s):  
Corporate Governance ◽  
Environmental Performance ◽  
Positive Impact ◽  
Stock Exchange ◽  
Panel Data Analysis ◽  
Independent Directors ◽  
Regulatory Body ◽  
Board Size ◽  
The Public ◽  
Negative Effect

This study attempts to explore the effect of corporate governance parameters like board size and independent directors along with firm-specific characteristics such as age, size and profitability on the environmental performance disclosure of 38 National Stock Exchange (NSE) listed Indian non-financial companies for the period of 2013–2017. This study uses panel data analysis and finally documents a positive impact of board size and age of firm on the environmental performance disclosures of Indian companies. The study also finds a significant and negative effect of board independence on the environmental performance disclosure of such companies. The study based on its findings questions the role of independent directors as an internal regulatory body and suggests external regulatory specifications for better environmental performance and its disclosure to the public.

scholarly journals The Impact of Corporate Governance on Dividend Decisions: Evidence from Non-Financial Sector of Pakistan

2021 ◽  
Vol 10 (1) ◽  
pp. 285-295
Author(s):  
IHTESHAM KHAN ◽  
MUHAMMAD SHAHID ◽  
SHAH RAZA KHAN
Keyword(s):  
Corporate Governance ◽  
Financial Institution ◽  
Stock Exchange ◽  
Annual Reports ◽  
Board Independence ◽  
Board Size ◽  
Financial Firms ◽  
Size Firm ◽  
The Impact ◽  
Individual Ownership

This study sought to ascertain the impact of corporate governance on dividend decisions of non-financial firms listed on Pakistan stock exchange (PSX). Panel data was collected from 2011to 2016. Data was collected from Non financial firms annual reports and State Bank of Pakistan (SBP) data base. The STATA software was used to analyze the data. The study investigates the association of firm’s performance and corporate governance. Specifically, this study investigate dividend decision (dividend per share(DPS)), corporate governance (board independence ,board size, size of firm, leverage, profitability, Insider ownership, individual ownership, and institutional ownership). A total of 42 non-financial firms are used to determine this relationship. The results show a positive significant relation between the Profitability, individual ownership with DPS. This study also found a negative and significant relationship between insiders ownership, financial institution ownership with DPS. It has also been found that Board independence, board size, firm size and leverage have negative and insignificant relationship with dividend per share (DPS). Keywords: Corporate Governance, Dividend Decisions, Dividend Policy.

scholarly journals The Analysis of Corporate Governance on Non-Performing Loans: Evidence from Indonesia

2021 ◽  
Vol 1 (1) ◽  
pp. 1-23
Author(s):  
Jovita Ramadhanti ◽  
Ivan Destian Butar Butar ◽  
Christian Haposan Pangaribuan
Keyword(s):  
Corporate Governance ◽  
Banking Sector ◽  
Stock Exchange ◽  
Foreign Bank ◽  
Board Independence ◽  
Regression Result ◽  
Board Size ◽  
Bank Ownership ◽  
Domestic Banks ◽  
The Impact

Objective – This study aims to know the impact of corporate governance mechanisms on the non-performing loan of a bank. This study also aims to analyze which corporate governance aspects are significant to the banks’ non-performing loans in Indonesia. Another objective of this study is to examine whether the relationship between corporate governance and non performing loan depends on bank ownership. This study’s corporate governance variables are the board size, board independence, and bank ownership category. This study focuses on the non-performing loan of the banks in Indonesia. Methodology – This study will examine 26 banks in Indonesia listed on the Indonesian Stock Exchange (IDX). It includes both foreign-owned (foreign bank) and domestic banks. The length of the period of observation is seven years, from 2012 to 2018. Panel data of these banks are analyzed using the fixed-effect regression. Findings – The regression result shows that board size and bank ownership category have no significant impact on the non-performing loan, while the board independence impacts non-performing loans negatively. Novelty – This study contributes to the academic literature, specifically on the issue of corporate governance in the banking sector. This study’s result and findings could be used as the reference for other studies and further research on the corporate governance issue. This study will also expand the literature about corporate governance in the Indonesian banking sector since there are still a limited number of studies that discussed this specific matter.

Tax Planning and Corporate Governance on Firm Value: Board Diversity as Moderating

2020 ◽  
Vol 11 (1) ◽  
pp. 52-52
Author(s):  
Amelia ◽  
Yulius Kurnia Susanto
Keyword(s):  
Corporate Governance ◽  
Firm Value ◽  
Audit Committee ◽  
Stock Exchange ◽  
Tax Planning ◽  
Board Independence ◽  
Board Meeting ◽  
Board Diversity ◽  
The Relationship ◽  
Female Member

This research is intended to analyse the influence of tax planning, CEO ownership, female member, board size, board independence, audit committee, and board meeting on firm value and the influence of board education background and board age on the relationship between tax planning and firm value in non-financial companies listed in Indonesia Stock Exchange. The population of this research are all non-financial companies consistently listed in Indonesia Stock Exchange from 2016 to 2018. This research uses 53 samples of non-financial companies selected through purposive sampling method resulting in 159 data to be analysed using moderating regressions analysis. The result of this research showed that audit committee has influence positive and significant on firm value. The board age has influence positive and significant on the relationship between tax planning and firm value. While tax planning, CEO ownership, female member, board size, board independence, board meeting have no significant influence on firm value. The influence of board education background on the relationship between tax planning and firm value has no significant. The increase in the size of audit committee will increase the value of firm, it is because the presence of audit committee that consists of independent members will reduce financial manipulation or fraud in the firms. Board age is strengthen the relationship between tax planning and firm value. Because the older the member of board directors, the more they obey their obligation to pay taxes, so the tax planning activities will be more effective and it will increase the value of the firm. Keywords: Firm Value, Tax Planning, Board Diversity, Corporate Governance

scholarly journals Corporate Governance Mechanism and Firm Performance as Determinants of CEO Compensation: A Panel Data Analysis of Pakistani Listed Companies

2013 ◽  
Vol 8 (4) ◽  
pp. 307-314
Author(s):  
Zahid Irshad Younas ◽  
Bilal Mehmood ◽  
Asal Ilyas ◽  
Haseeb Asif Bajwa
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Panel Data ◽  
Fixed Effects ◽  
Ceo Compensation ◽  
Stock Exchange ◽  
Panel Data Analysis ◽  
Governance Mechanism ◽  
Board Size ◽  
The Impact

The purpose of this study is to investigate the impact of corporate governance, firm performance on CEO compensation. More specific, firm performance, board size and audit expenditure are linked with CEO compensation. Using panel data for 151 Pakistani firms listed on Karachi Stock Exchange (KSE), fixed effects regression has been performed. The results indicate firm performance is negatively associated with CEO compensation, which hold managerial power theory. While, board size and audit expenditure showed a positive relationship with CEO compensation, which reflects the presence of human capital theory. The results of study are in line with the prior studies done on CEO compensation.

scholarly journals PENGARUH CORPORATE GOVERNANCE TERHADAP ENVIRONMENTAL STRENGTH DALAM CORPORATE SOCIAL RESPONSIBILITY

2020 ◽  
Vol 22 (1) ◽  
Author(s):  
Windijarto Windijarto ◽  
Sekar Ajeng Savitasari
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Stock Exchange ◽  
Positive Influence ◽  
Board Independence ◽  
Manufacturing Companies ◽  
Board Size ◽  
Corporate Social ◽  
The Relationship

Abstract : This study aims to analyze the relationship between corporate governance (board independence dan board size) to the implementation of environmental standards in corporate social responsibility. This study uses a sample of 200 manufacturing companies listed on the Indonesia Stock Exchange (IDX) taken from 2015-2016. The result of this research is that there is a significant and positive influence between board independence and board size of commissioners on the environmental strength in corporate social responsibility. Keywords: corporate governance, board independence, board size, environmental strength, corporate social responsibility

Enhancing Shareholder Value through Corporate Governance Mechanism in Saudi Arabia

2021 ◽  
Vol 39 (10) ◽  
Author(s):  
Hamid Ghazi Sulimany ◽  
Suresh Ramakrishnan ◽  
Ayman Bazhair ◽  
Salih Adam
Keyword(s):  
Corporate Governance ◽  
Saudi Arabia ◽  
Positive Impact ◽  
Stock Exchange ◽  
Shareholder Value ◽  
Share Price ◽  
Board Independence ◽  
Governance Mechanism ◽  
Corporate Governance Mechanism ◽  
The Impact

This study investigates the effect of corporate governance mechanism in relation to shareholder value in Saudi Arabia listed companies. In today’s business, shareholder value has a great concern to the company shareholders. Numerous studies have been investigated shareholder value but with inconsistent empirical evidence. The focus of this research is to examine the impact of corporate governance mechanism (board independence) on shareholder value measured by share price and dividend yield. This is an empirical paper which proposes to determine the extent of board independence on shareholder value in the perspective of Saudi Arabia. The current study employed pooling regression analysis to retailing sector companies in Saudi Stock Exchange (Tadawul) from 2010 to 2019. The research has found that the presence of non-executive directors on the corporate board enhanced shareholder value. Likewise, board independence has a significant positive impact on shareholder value. The proposed study has value for Saudi Arabia government, corporate boards, stock exchange, shareholders, and policy makers by highlighting the distinct impact on shareholder value and its relation on board independence.

scholarly journals Boards of directors and firm performance: A study of non-financial listed firms on the Kuwait Stock Exchange

2021 ◽  
Vol 18 (2) ◽  
pp. 40-47
Author(s):  
Mejbel Al-Saidi
Keyword(s):  
Firm Performance ◽  
Boards Of Directors ◽  
Stock Exchange ◽  
Board Independence ◽  
New Governance ◽  
Board Size ◽  
Board Diversity ◽  
Listed Firms ◽  
Kuwait Stock Exchange ◽  
The Impact

Prior to 2017, there were no corporate governance rules in Kuwait. The previous rules were silent regarding boards of directors, shareholders’ rights, disclosure, and auditing. However, at the beginning of 2017, the Kuwaiti government introduced new governance rules and required all firms listed on the Kuwait Stock Exchange (KSE) to comply with these rules. This study examined the impact of boards of directors on firm performance following the implementation of these new rules using a sample of 89 non-financial listed firms from 2017 to 2019. The study used four board variables – namely, board size, board independence, family directors, and board diversity – and found that, based on Tobin’s results, board size, board independence, and board diversity significantly impact firm performance whereas the ROA results indicate that only family directors significantly impact firm performance

scholarly journals The Effect of Corporate Governance on Financial Performance in Non-Financial LQ-45 Firms Listed on the Indonesian Stock Exchange from 2012 to 2017

2019 ◽  
Vol 4 (1) ◽  
pp. 21-27
Author(s):  
Erika Jimena Arilyn ◽  
Beny Beny ◽  
Emir Kharismar
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Firm Size ◽  
Stock Exchange ◽  
Panel Data Analysis ◽  
Jel Classification ◽  
Annual Reports ◽  
Board Independence ◽  
Financial Leverage ◽  
Board Size

Objective - This research is conducted in order to determine what factors in corporate governance affect the financial performance of a firm. Methodology/Technique - Financial performance, as the dependent variable, is measured by Return on Asset (ROA), while the independent variables (corporate governance) are measured using Board Independence, Board Size, Dividend, Firm Size, and Financial Leverage. The sampling method used in this research is purposive sampling. The requirements for the sample of this research are the non – financial firms included in LQ-45 from 2012 to 2017 that publish annual reports that are available to the public. The research method used in this paper is a quantitative method. Panel data analysis technique and E-views tools were also used. Findings - The results indicate that firm size and percentage of board independence has no effect on financial performance, while board size, dividends, and financial leverage all effect financial performance. Novelty - The study adds to the literature of corporate government and firm performance in emerging countries. Type of Paper Empirical Keywords: Board Independence; Board Size; Dividends; Firm Size; Financial Leverage; Financial Performance. JEL Classification: M40, M48, M49. DOI: https://doi.org/10.35609/afr.2019.4.1(4)

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