scholarly journals ESG Performance and Shareholder Value Creation in the Banking Industry: International Differences

2019 ◽  
Vol 11 (5) ◽  
pp. 1404 ◽  
Author(s):  
María Miralles-Quirós ◽  
José Miralles-Quirós ◽  
Jesús Redondo Hernández
Keyword(s):  
Corporate Governance ◽  
Value Creation ◽  
Global Financial Crisis ◽  
Banking Industry ◽  
Shareholder Value ◽  
Geographic Area ◽  
Socially Responsible ◽  
The Global Financial Crisis ◽  
The Relationship

The aim of this paper is to study the role of socially responsible activities on shareholder value creation in a sample of 166 banks from 31 countries over the 2010–2015 period. Prior research about this relationship is scarce and limited to the period before and during the global financial crisis. In contrast, this research analyzes banks over a period of time when these institutions have increased their social responsibility practices in order to reinforce their credibility and the trust their stakeholders have in them. More precisely, we analyze the relationship between these two magnitudes distinguishing between environmental, social, and corporate governance actions as well as between countries taking into account the level of development, legal systems, and the geographic area. Our findings are relevant not only for academics, but also for the managers of these companies, policymakers, investors, and society in general.

scholarly journals Corporate governance and performance of listed commercial banks in South Africa

2014 ◽  
Vol 11 (2) ◽  
pp. 677-687
Author(s):  
Sam Ngwenya
Keyword(s):  
South Africa ◽  
Corporate Governance ◽  
Commercial Banks ◽  
Global Financial Crisis ◽  
The United States ◽  
Executive Directors ◽  
Governance Indicators ◽  
And Performance ◽  
The Global Financial Crisis ◽  
The Relationship

The global financial crisis of 2008 that resulted in the collapse of many financial institutions in the United States (US) and Europe have resulted in debates over the failures of corporate governance structures to properly protect investors. The main objective of the study was to determine the relationship between corporate governance and performance of listed commercial banks in South Africa. The results of the study indicated a statistically positive significant relationship between board size, proportion of non-independent and non-executive directors and bank performance. The results of the rest of the corporate governance indicators are mixed when using different performance measurement variables.

An investigation of the credibility of and confidence in audit value: evidence from a developing country

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Taslima Akther ◽  
Fengju Xu
Keyword(s):  
Structural Equation ◽  
Global Financial Crisis ◽  
Auditor Independence ◽  
Order Type ◽  
Audit Committees ◽  
Content Type ◽  
Anglo American ◽  
The Global Financial Crisis ◽  
The Relationship

Purpose This study aims to investigate the factors that enhance the credibility of and confidence in audit value. Design/methodology/approach Data were collected from 254 institutional investors through a questionnaire survey and were analyzed using partial least squares structural equation modelling (PLS-SEM). Findings The findings reveal that the two influential predictors of enhanced credibility and confidence are perceived auditor independence and improved auditor communication. Factors related to auditor–client affiliation, such as restrictions on providing non-audit services, mandatory auditor rotation and the presence of effective audit committees, are identified as creating the perceived independence. Improved auditor communication is linked with improving the audit report and ensuring audit education, thus creating more sophisticated users who better understand the scope and purpose of an audit. Furthermore, independent audit oversight acts as a moderator in the relationship between perceived auditor independence, improved auditor communication and enhanced credibility. Enhanced credibility can lead to greater confidence in audit value. Originality/value In the wake of the global financial crisis and loss of confidence in the role of auditors, this study investigates the factors that can enhance the credibility of and confidence in audit value, especially in a non-Anglo-American setting. This study is unique in terms of methodological development, as it uses a higher-order Type II reflective–formative model using PLS-SEM.

scholarly journals The Role of Bank Management in the EU Resolution Regime for NPLs

2020 ◽  
Vol 6 (2) ◽  
pp. 204-232
Author(s):  
Andreas Kokkinis ◽  
Andrea Miglionico
Keyword(s):  
Corporate Governance ◽  
Global Financial Crisis ◽  
Regulatory Oversight ◽  
Bank Management ◽  
Monitoring Tools ◽  
Perverse Incentives ◽  
Regulatory Measures ◽  
The Global Financial Crisis ◽  
The Eu

ABSTRACT During the global financial crisis, the growth of non-performing loans (NPLs) was partly a consequence of lack of regulatory oversight and poor bank internal processes. NPLs require intrusive monitoring tools and effective corporate governance is crucial in dealing with the deterioration of loans; however, perverse incentives to delay their recognition leave the process at risk. The EU legislation has adopted a set of regulatory measures to resolve and restructure non-performing exposures. While existing literature approaches NPLs from a regulatory and accounting perspective, this article takes a distinctive corporate governance view in order to conceptualize the NPL problem. The strategies through which senior management and shareholder incentives may undermine regulatory objectives on NPL disclosure are identified and an evidence-based approach to reconsidering and settling these problems is advanced.

Impact of Microfinance on Poverty in the Context of Global Financial Crisis

2019 ◽  
pp. 1317-1333
Author(s):  
Arindam Laha
Keyword(s):  
Regression Analysis ◽  
Financial Crisis ◽  
South Asia ◽  
Global Financial Crisis ◽  
Poor Households ◽  
Head Count ◽  
The Global Financial Crisis ◽  
The Impact ◽  
The Relationship

The microfinance programme in the South Asia region has proven to be resilient to the shocks of global financial crisis. In fact, cross country experiences in South Asia reveal little impact of the global financial crisis on the penetration of the microfinance programmes to poor households. To explore the impact of microfinance on poverty in the backdrop of global financial crisis, an attempt has been made in this present study to examine the relationship between MFI's gross portfolio per active borrower and the measures of poverty. Empirical evidences based on Pooled Regression Analysis suggest that gross portfolio per active borrower is negatively and significantly associated with the poverty head count ratio or poverty gap measure, which is consistent with the author's hypothesis that micro loans reduce poverty. The poverty alleviation role of microfinance in South Asian countries is not changing its dynamics even in post-crisis scenario.

Impact of Microfinance on Poverty in the Context of Global Financial Crisis

2015 ◽  
pp. 399-415 ◽  
Author(s):  
Arindam Laha
Keyword(s):  
Regression Analysis ◽  
Financial Crisis ◽  
South Asia ◽  
Global Financial Crisis ◽  
Poor Households ◽  
Head Count ◽  
The Global Financial Crisis ◽  
The Impact ◽  
The Relationship

The microfinance programme in the South Asia region has proven to be resilient to the shocks of global financial crisis. In fact, cross country experiences in South Asia reveal little impact of the global financial crisis on the penetration of the microfinance programmes to poor households. To explore the impact of microfinance on poverty in the backdrop of global financial crisis, an attempt has been made in this present study to examine the relationship between MFI's gross portfolio per active borrower and the measures of poverty. Empirical evidences based on Pooled Regression Analysis suggest that gross portfolio per active borrower is negatively and significantly associated with the poverty head count ratio or poverty gap measure, which is consistent with the author's hypothesis that micro loans reduce poverty. The poverty alleviation role of microfinance in South Asian countries is not changing its dynamics even in post-crisis scenario.

scholarly journals CORPORATE GOVERNANCE: THE GATEWAY TO A ROBUST CORPORATE FINANCIAL PERFORMANCE IN MALAYSIA

2020 ◽  
Vol 8 (7) ◽  
pp. 91-98
Author(s):  
Khairi Aseh ◽  
Kamal Kenny ◽  
Ravindran Pathmanathan
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Global Financial Crisis ◽  
Descriptive Analysis ◽  
Corporate Financial Performance ◽  
Board Committees ◽  
Corporate Scandals ◽  
The Global Financial Crisis ◽  
The Impact ◽  
The Relationship

In recent years, with corporate scandals and the global financial crisis, the emerging concept of corporate governance has received increasing attention in the corporate world in these days. It is seen as a moral obligation and includes supporting the consistency of the law and showing ethical guidance. Corporate governance is seen as an important tool for the financial performance of companies, and investor investment decisions have become a more serious topic, so the relationship between corporate governance tools and measurement of financial performance has attracted researchers' interest in the past decade mainly in developed and developing cities. In this study, we attempted to examine the impact of corporate governance on corporate financial performance in Kuala Lumpur using a sample of 215 companies on KLSE. Like previous research, firm, age, firm size, board size, CEO duality, board composition, board committees is the independent variables and their influence is to measure the financial ROA, ROE and Tobin's q , all kinds of test is used to investigate the relationship such as descriptive analysis, Pearson moment related test and regression using first data over a period of time.

scholarly journals Dangerous frontiers in corporate governance

2014 ◽  
Vol 20 (3) ◽  
pp. 268-286 ◽  
Author(s):  
Thomas Clarke
Keyword(s):  
Corporate Governance ◽  
Global Financial Crisis ◽  
Shareholder Value ◽  
Value Orientations ◽  
Company Law ◽  
The Board Of Directors ◽  
The Global Financial Crisis ◽  
The Uk ◽  
Short Termism ◽  
The Impact

AbstractThe historical evolution of corporate governance is considered, highlighting the different eras of governance, the dominant theoretical and practical paradigms, the reformulation of paradigms and counter paradigms. Two alternative and sharply contrasting theorizations, one collective and collaborative (the work of Berle and Means), the other individualistic and contractual (agency theory and shareholder value) are focused upon. The explanatory potential of Blair and Stout's team production theory is elaborated, and its conception of the complexity of business enterprise, with a mediating hierarch (the board of directors) securing a balance between the interests of different stakeholders. The potential for reform of corporate purpose, corporate governance and directors’ duties is examined with reference to the UK Modern Company Law Review. The impact of the intensification of the financialization of corporations is analysed, with the increased emphasis upon short-termism. The origins of the global financial crisis in shareholder value orientations and the continuing reverberations of the crisis are explored. Finally, the imperative of the advance of sustainable enterprise is argued, and the critical changes necessitated in corporate purpose and directors’ duties.

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