scholarly journals Do Board Characteristics Matter for Growth Firms? Evidence from China

2021 ◽  
Vol 14 (8) ◽  
pp. 380
Author(s):  
Qiuwei Li ◽  
Wei Zhou ◽  
Hui Zhou ◽  
Jiaxuan Chen
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Performance Indicator ◽  
Information Technology Industry ◽  
Analysis Method ◽  
Board Characteristics ◽  
Technology Industry ◽  
Growth Enterprise Market ◽  
Growth Firms ◽  
Established Firms

Previous research on the effect of board characteristics mostly examines established firms. This raises the question of whether the findings from the board characteristics literature are applicable to rapidly growing enterprises, as their corporate governance landscape can be very different from that in large, mature companies. Our paper extends the corporate governance literature by investigating the performance implications of board characteristics in startups using a unique set of firms: 121 startups operating in the information technology industry listed on the Growth Enterprise Market (GEM) in China. Using a firm performance indicator constructed through the factor analysis method, we find significant correlations between firm performance and board size, age structure, board meeting frequency, and board ownership of shares. Our findings contribute to the corporate governance literature by shedding new light on the performance implications of board characteristics for startups operating in fast-paced industries.

Effect of board characteristics on firm value: evidence from India

2018 ◽  
Vol 7 (1) ◽  
pp. 41-72 ◽  
Author(s):  
Rakesh Kumar Mishra ◽  
Sheeba Kapil
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Firm Value ◽  
Structural Equation ◽  
Corporate Performance ◽  
Equation Modeling ◽  
Significant Positive Association ◽  
Data Set ◽  
Content Type ◽  
Board Characteristics

Purpose The purpose of this paper is to explore the relationship of board characteristics and firm performance for Indian companies. Design/methodology/approach Corporate governance structures of 391 Indian companies out of CNX 500 companies listed on National Stock Exchange have been studied for their impact on performance of companies. Structural equation modeling methodology has been employed on data for five financial years from 2010 to 2014 for selected companies. Market-based measure (Tobin’s Q) and accounting-based measure (return on asset) have been employed for measuring firm performance. Findings Empirical findings indicate that there is significant positive association between board size and firm performance. Board independence is found significantly related to firm performance. Number of board meetings is found to be sending positive signal to the market creating firm value. Separation of CEO and chairman of the board is found to be value creating and overburdened directors affect firm performance adversely. Findings also suggest that the governance-performance relationship is also dependent upon the type of performance measures used in the study. Research limitations/implications Limitations of this study are in terms of data methodology and possible omission of some variables. It is understood that the qualitative dynamics happening inside board meetings impact corporate performance. The strategic decisions-making process adopted by the boards to fight competition or to increase market share is not available in public domain easily. The decision-making processes and monitoring for implementation of these decisions could impact corporate governance-performance relationship. These parameters and their impact on corporate performance are not covered under the scope of the present study. However, the same could have thrown more light on governance-performance relationship. Originality/value The paper adds to the emerging body of literature on corporate governance-performance relationship in the Indian context using a reasonably wider and newer data set.

scholarly journals Corporate Governance and Firm Performance: The Role of the Board and Audit Committee

2018 ◽  
Vol 10 (1) ◽  
pp. 210
Author(s):  
Netai Kumar Saha ◽  
Rehnuma Hoque Moutushi ◽  
Mohammad Salauddin
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Group Dynamics ◽  
Internal Control ◽  
Audit Committee ◽  
Performance Indicator ◽  
Positive Impact ◽  
Board Independence ◽  
Board Size

Corporate Governance (CG) has become a paramount issue due to its greater significance of practicing accuracy, maintaining accountability, establishing effective internal control and regulating organizations for achieving organizational goals. The study is conducted to explore the relationship between corporate governance and firm performance with considering the role of board and audit committee. The multiple liner regression analysis is used as the underlying statistical test on the dependent variables, ROA, ROE and TQ to test the association between the independent variables (board size, board independence, size of audit committee and audit committee composition) with firm performance. Homogeneous purposive sampling has been used. The sample size of the study is 81 listed companies in DSE. The results of the study signify that board independence ratio and audit committee is statistically significant and has positive impact on ROA and TQ. But it is not statistically significant in the case of firm performance indicator ROE in this study. In addition to, Board size is not statistically significant and has negative correlation with firm performance due to group dynamics, communication gaps and indecisiveness of larger groups.

scholarly journals Practitioner Perspectives Of Information Technology Industry Intrapreneurship: An Exploratory Study

2011 ◽  
Vol 14 (1) ◽  
Author(s):  
Matthew G. Kenney ◽  
Nile M. Khanfar ◽  
Lee E. Kizer
Keyword(s):  
Information Technology ◽  
Firm Performance ◽  
Exploratory Study ◽  
Management Practices ◽  
Corporate Entrepreneurship ◽  
Job Applicants ◽  
Information Technology Industry ◽  
Technology Industry ◽  
Field View

Scholars have shown that maintaining an intrapreneurial culture contributes to superior firm performance (Parboteeah, 2000) and attracting better qualified job applicants (Olmsted, 2005). Yet, there remains a need for more research “regarding the successes or failures of large companies that systematically instill corporate entrepreneurship” (Thornberry, 2003 p. 332).  While an increasing number of scholars have examined the benefits and challenges of creating and maintaining an intrapreneurial culture, there remains a need to examine intrapreneurship from an intrapreneur’s perspective. This article is an exploratory study which qualitatively, through the use of informational interviews, explores how experienced intrapreneurs within the Information Technology (IT) field view intrapreneurial opportunities and how management practices explicitly and/or implicitly effect intrapreneurial perceptions.

scholarly journals Influence of Corporate Governance on Performance in Public Hospitals in Embu County, Kenya

2021 ◽  
Vol 5 (4) ◽  
pp. 33-52
Author(s):  
Christopher Mutuiri Kinyua ◽  
Lazarus K Ngari
Keyword(s):  
Corporate Governance ◽  
Leadership Style ◽  
Policy Formulation ◽  
Public Hospitals ◽  
Analysis Method ◽  
County Governments ◽  
Board Characteristics ◽  
Content Analysis Method ◽  
Employees Satisfaction ◽  
Minimal Research

Corporate governance is important to the performance of Public Hospitals (PHs) all over the world. This study investigated the Influence of Corporate Governance on Performance in PHs in Embu County, Kenya. The objective of the study was to assess how board characteristics influence performance in PHs in Embu County. The study’s main problem was to assess the performance in PHs using level of customer satisfaction, level of employees’ satisfaction and efficiency. Given that there is minimal research in corporate governance on management of PHs especially in Embu County, the study addressed challenges faced by management, thus helping formulate policies and strategic guidance for County Governments (CGs). The Stewardship Leadership Theory and Organizational Leadership Style were used to develop the theoretical framework on corporate governance. The information was gathered from 140 respondents using questionnaires. Quantitative data was analyzed using Descriptive Statistics whereas Qualitative data was analyzed using Content Analysis Method. The findings were then recapitulated to ascertain whether PHs have put in place policies and guidelines that conduct best practices of corporate governance. Some of the outcome were; PHs complied with the application of corporate governance but failed to implement it fully; the PHs adhered to most of the regulations and government policies but failed to fully adhere to corporate governance guidelines on board characteristics. Finally, the summary and recommendations were then prepared for policy formulation and future use in research on corporate governance on performance in PHs in Embu County, Kenya and globally.

scholarly journals Corporate Governance Compliance in Banking Industry: The Role of the Board

2020 ◽  
Vol 6 (4) ◽  
pp. 137
Author(s):  
Rudi Zulfikar ◽  
Niki Lukviarman ◽  
Djoko Suhardjanto ◽  
Tubagus Ismail ◽  
Kurniasih Dwi Astuti ◽  
...  
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Banking Industry ◽  
Stock Exchange ◽  
Sampling Technique ◽  
Analysis Method ◽  
The Public ◽  
Board Characteristics ◽  
Compliance Level

This study seeks to supply empirical evidence for how board characteristics influence corporate governance compliance in the Indonesian banking industry. Corporate governance compliance level represents a company’s actions to fulfill regulatory obligations that aim to protect the public from potential investment losses in the banking industry. This research was conducted by analyzing the influence of board characteristics, specifically how a board of commissioners’ institutions and their instruments affect corporate governance compliance. The entire banking industry, which was listed on the Indonesia Stock Exchange from 2010 to 2015, was employed as the population for this research. Purposive sampling was used as the sampling technique, resulting in 195 observations. To test this study’s hypotheses, multiple regression was applied as the data analysis method. The results revealed that the size of the board of commissioners, the proportion of independent commissioners, the experience of commissioners, and the size of the audit committee were factors that encouraged management in the banking industry to improve their firms’ corporate governance compliance. This indicates that monitoring from the board acts as an effective mechanism for reducing information asymmetry. This research also proves that open innovation following regulations can increase compliance with laws.

Board characteristics and firm value for Indian companies

2018 ◽  
Vol 10 (1) ◽  
pp. 2-32 ◽  
Author(s):  
Rakesh Kumar Mishra ◽  
Sheeba Kapil
Keyword(s):  
Decision Making ◽  
Corporate Governance ◽  
Firm Performance ◽  
Firm Value ◽  
Corporate Performance ◽  
Strategic Decision ◽  
Tobin’S Q ◽  
Tobin's Q ◽  
Content Type ◽  
Board Characteristics

Purpose This paper aims to explore the relationship between board characteristics and firm performance for Indian companies. Design/methodology/approach Corporate governance structures of 391 Indian companies out of CNX 500 companies listed on National Stock Exchange have been studied for their impact on performance of companies. Panel data regression methodology has been used on data for five financial years from 2010 to 2014 for the selected companies. Performance measures considered are market-based measure (Tobin’s Q) and accounting-based measure (return on asset [ROA]). Findings The empirical findings indicate that the market-based measure (Tobin’s Q) is more impacted by corporate governance than the accounting-based measure (ROA). There is a significant positive association between board size and firm performance. Board independence is found significantly related to firm performance. Number of board meetings is found to be sending positive signal to the market creating firm value. Separation of chief executive officer and chairman of the board is found to be value-creating, and overburdened directors affect firm performance adversely. Research limitations/implications Limitations of the study are in terms of methodology and possible omission of some variables. It is understood that the qualitative dynamics happening inside board meetings impact corporate performance. The strategic decision-making process adopted by the boards to fight competition or to increase market share is not easily available in public domain. The decision-making processes and monitoring for implementation of those decisions could impact corporate governance performance relationship. These parameters and their impact on corporate performance are not covered under the scope of the present study. Originality/value The paper adds to the emerging body of literature on corporate governance performance relationship in the Indian context by using a reasonably wider and newer data set.

Corporate Governance and Firm Performance in Indian Textile Companies: Evidence from NSE 500

2020 ◽  
Vol 13 (2) ◽  
pp. 210-226
Author(s):  
Ishfaq Gulzar ◽  
S. M. Imamul Haque ◽  
Tasneem Khan
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Performance Measures ◽  
Board Independence ◽  
Board Size ◽  
Ceo Duality ◽  
Board Characteristics ◽  
And Performance ◽  
Business Practitioners ◽  
Measure Of Performance

This article endeavours to study the relationship between corporate governance and performance for a sample of 11 textile firms listed on Nifty 500 Index in India. The article examines whether the board characteristics have any impact on performance measures. The data covers the time period from 2014 to 2018. The study uses board size, board meetings, board independence as corporate governance surrogates from different dimensions along with other widely uses of independent variables to assess their impact in a panel data-based regression. The findings provide mixed results between the board characteristics and the firm performance. Board size and firm performance is statistically significant with return on assets and Tobin’s Q. Whereas, board independence, board meetings and CEO duality are not statistically significant with both accounting-based measure of performance and market-based measure of performance. The article provides empirical evidence that board independence, board meetings and CEO duality is not necessary for listed textile companies in India and would be of interest to regulatory bodies, business practitioners and academic researchers. The main value of this article is the analysis of the effect of corporate governance on performance measures on listed Indian textile industries.

scholarly journals Pengaruh Kepemilikan Keluarga dan Good Corporate Governance Terhadap Kualitas Laba dan Kinerja Perusahaan

2017 ◽  
Vol 2 (1) ◽  
pp. 73
Author(s):  
Anna Mathova ◽  
Halim Dedy Perdana ◽  
Isna Putri Rahmawati
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Institutional Ownership ◽  
Performance Model ◽  
Family Ownership ◽  
Debt Ratio ◽  
Analysis Method ◽  
Quality Model ◽  
Good Corporate Governance ◽  
Earning Quality

This research is purposed to find out the effect of family ownership and Good Corporate Governance toward the earning quality and firm performance of the company listed in Indonesian Stock Exchange from 2012 up to 2014. The sample of this research is using 153 companies for the earning quality model and 137 companies for firm performance model in Indonesia from 2012 up to 2014. The sampling is done using purposive sampling method. The analysis method used is multiple linear regression analysis method using SPSS version 21.00. The result of the regression testing of earning quality model shows that only debt ratio influent the earning quality, while family ownership, institutional ownership, independent commissioner, type audit and payout ratio do not.  The test for the firm performance shows that the institutional ownership, independent commissioner, type audit and payout ratio are influencing the firm performance while the family ownership and debt ratio are not.

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