scholarly journals The Influence of Corporate Governance and Operating Characteristics on Corporate Environmental Investment: Evidence from China

2019 ◽  
Vol 11 (10) ◽  
pp. 2737 ◽  
Author(s):  
Defeng Yang ◽  
Zhanqing Wang ◽  
Fangmin Lu
Keyword(s):  
Corporate Governance ◽  
Environmental Protection ◽  
Production Efficiency ◽  
Stock Exchange ◽  
Operating Characteristics ◽  
Factors Affecting ◽  
Environmental Investment ◽  
The Board Of Directors ◽  
The Relationship ◽  
Operation Characteristics

This study mainly explores the relationship between company governance, company operation characteristics, management connection and corporate environmental investment. Based on the theory of stakeholders and principal-agent, it expounds the factors affecting the environmental behavior of companies, and empirically tests the relationship of the involved variables. This study takes the non-financial listed companies of Shanghai Stock Exchange from 2009 to 2011 as a sample, and conducts empirical research on corporate governance, business operation characteristics, management connection and corporate environmental protection investment. The results show that under the same circumstances, if the CEO is also the chairman of the board of directors, it will lead to opportunistic situation of the controlling shareholder, and the degree of willingness to invest in environmental preservation is low, which is negatively related to environmental protection investment. The more redundant resources or the higher the production efficiency exist, the higher the willingness of enterprises to invest in environmental protection will be stimulated.

The Effect of Company Size on the Relationship between Corporate Governance and Corporate Performance in the Iraqi Stock Exchange

2021 ◽  
Vol 39 (11) ◽  
Author(s):  
Ghazwan Al-Shiblawi ◽  
Dalal Mahdi ◽  
Mohammed Mahdi
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Significant Relationship ◽  
Corporate Performance ◽  
Stock Exchange ◽  
Institutional Ownership ◽  
Company Size ◽  
Statistical Population ◽  
The Board Of Directors ◽  
The Relationship

The aim of the present study is to assess The Effect of Company Size on the Relationship between Corporate Governance and Corporate Performance in the Iraqi Stock Exchange. The statistical population under study is listed companies of  Iraq Stock Exchange and the number of companies studied in Iraq is 35, from 2015-2019. The results concluded that there is a statistically significant relationship between the change (increase) of institutional ownership and the performance of the company, and this relationship is direct, as well as the relationship between the change (increase) of institutional ownership and the performance of the company. It can change under the influence of the company's size, and this relationship is negative, meaning the larger the company's size, the weaker the relationship. At the same time, the existence of a relationship between changing the composition of the members of the Board of Directors and the performance of the company was not supported, as well as between changing (increasing) the independence of the Board of Directors and the performance of the company, in addition to the relationship between changing the composition of the Board of Directors. The independence of the Board of Directors and the performance of the company is not affected by the change in the size of the company

scholarly journals PENGARUH MEKANISME CORPORATE GOVERNANCE TERHADAP KINERJA KEUANGAN PERUSAHAAN KELUARGA DI INDONESIA

2020 ◽  
Vol 10 (1) ◽  
pp. 1
Author(s):  
Adhitya Rechandy Christian Santoso
Keyword(s):  
Corporate Governance ◽  
Data Analysis ◽  
Board Of Directors ◽  
Sampling Method ◽  
Stock Exchange ◽  
Return On Assets ◽  
The Board Of Directors ◽  
Relationship Of ◽  
The Relationship ◽  
Positive Effect

This study discusses the application of corporate governance to the performance of family companies in Indonesia. The relationship of corporate governance in this study was proxied with an independent board of commissioners, the size of the board of directors, and the size of the audit board. The measurement of the financial performance of this study uses Return On Assets (ROA) with a sample of research companies listed on the Indonesia Stock Exchange in the 2014-2018 period.The sampling method in this study uses purposive sampling and data analysis using multiple linear regression with the help of SPSS 21.The results of data analysis, the proportion of independent commissioners and the size of the board of directors had a significant positive effect on the variable size of the audit board not having a significant effect.

scholarly journals The Effect of Corporate Governance on Earnings Quality and Market Reaction to Low Quality Earnings: Korean Evidence

2018 ◽  
Vol 11 (1) ◽  
pp. 102 ◽  
Author(s):  
Hyejeong Shin ◽  
Su-In Kim
Keyword(s):  
Corporate Governance ◽  
Stock Returns ◽  
Stock Exchange ◽  
Earnings Quality ◽  
Foreign Ownership ◽  
Governance Mechanisms ◽  
Factors Affecting ◽  
Earnings Gap ◽  
The Board Of Directors ◽  
Reported Earnings

This study investigates whether corporate governance mechanisms are associated with earnings quality, especially accurate earnings reporting, and whether investors react differently to inaccurate earnings according to governance strength. Earnings accuracy is one of the key factors affecting a firm’s sustainability in the sense that reported earnings provide information about a firm’s long-term sustainability and further are directly associated with a firm’s cost of capital. In this paper, we employ the independence of the board of directors (BOD) and foreign ownership as governance mechanisms associated with the earnings gap between audited and unaudited earnings. Using 1976 non-financial firm-year observations listed on the Korea Stock Exchange from 2013 to 2016, we find that the gap between unaudited earnings and actual earnings is smaller for firms with independent BODs and foreign ownership, suggesting that earnings accuracy is higher for firms with effective corporate governance. This study also examines how investors react to the earnings gap. Stock returns to the earnings gap are less negative for firms with independent BODs and are more negative as foreign ownership increases, implying that each mechanism of corporate governance has different effects.

scholarly journals Pengaruh Corporate Governance Terhadap Hubungan Keterlibatan Dewan Di Bidang Politik Dan Manajemen Laba

2021 ◽  
Vol 4 (2) ◽  
pp. 138-151
Author(s):  
Yeasy Darmayanti ◽  
Dandes Rifa ◽  
Irna Khairia
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Hypothesis Testing ◽  
Board Of Directors ◽  
Stock Exchange ◽  
Political Connections ◽  
Manufacturing Companies ◽  
The Board Of Directors ◽  
Negative Effect ◽  
The Relationship

This study aims to analyze the effect of corporate governance on the relationship between board involvement in politics and earnings management in manufacturing companies on the Indonesia Stock Exchange. This study used 63 manufacturing companies which were selected using purposive sampling method. The data analysis method used is multiple regression which is processed through the help of the SPSS program. Based on the results of hypothesis testing, it was found that the board of commissioners involved in politics had a significant positive effect on earnings management. Meanwhile, the board of directors with political connections and corporate governance individually has a significant negative effect on earnings management. In the results of hypothesis testing, it is also found that the board of commissioners and the board of directors who have political connections have a significant effect on earnings management with corporate governance as a moderating variable in manufacturing companies on the Indonesia Stock Exchange. The results of this study found that the implementation of corporate governance will have a different impact on the relationship between the board of commissioners and the board of directors on earnings management. In the relationship between the board of commissioners and earnings management, corporate governance is able to weaken earnings management activities. Meanwhile, in the relationship between the board of directors and earnings management, corporate governance can strengthen earnings management activities.

The relationship between managers' narcissism and overconfidence on corporate risk-taking

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahdi Salehi ◽  
Amirhosein Afzal Aghaei Naeini ◽  
Safoura Rouhi
Keyword(s):  
Multiple Regression ◽  
Risk Taking ◽  
Fixed Effects ◽  
Stock Exchange ◽  
Content Type ◽  
Factors Affecting ◽  
Multiple Regression Models ◽  
The Board Of Directors ◽  
Corporate Risk ◽  
The Relationship

PurposeThe primary purpose is to investigate the relationship between narcissism and managers' overconfidence in listed companies' risk-taking.Design/methodology/approachIn this study, two criteria of signature and reward are used to measure manager's narcissism; manager's overconfidence, using multiple regression models and finally to measure companies' risk-taking by using companies' monthly returns. Multiple regression is employed to test the model using a sample of 890 firm-year participation on the Tehran Stock Exchange from 2012 to 2017 with panel data and model with fixed effects.FindingsThe findings indicate that the CEO's narcissism and the board of directors positively and significantly affect corporate risk-taking. Also, managers' overconfidence has a positive and significant relationship with corporate risk-taking.Originality/valueThe results of this study identified other factors affecting companies' risk-taking. This study also contributed to the development of the literature on narcissism, overconfidence and corporate risk-taking.

Corporate Governance and The Modification of Audit Opinion: A Study in The Jordanian Market

1970 ◽  
Vol 2 (2) ◽  
pp. 28-46
Author(s):  
Mansour Saaydah
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Audit Committee ◽  
Stock Exchange ◽  
Unexpected Result ◽  
Audit Opinion ◽  
Financial Firms ◽  
Governance Indicators ◽  
The Board Of Directors ◽  
The Relationship

The objective of this study is to examine the relationship between some Corporate Governance indicators and the probability of modifying the independent auditor opinion in the Jordanian market. The sample consists of 104 non-financial firms listed on Amman stock Exchange for the year 2015. The logistic regression via SPSS is used to analyze the data. The results show that firm’s profitability (measured by ROA) and the number of institutional investors on the board of directors are significant negative predictors of the probability of receiving modified audit opinion by the firm. That is the higher the firm’s ROA and the larger number institutional investor representatives on the board of directors the less likely the firm will receive a modified audit opinion. On the other hand, the results also show that the board of directors’ size is significant positive predictor of receiving a modified audit opinion by the firm. That is the larger the size of the board of directors the more likely the firm will receive a modified audit opinion. Although, it is an unexpected result it agrees with some other studies results. Finally, board independence, board activity and the presence of audit committee have no significant impact on the type of audit opinion the firm receives.

HUBUNGAN BOARD DAN KOMITE AUDIT TERHADAP MANAJEMEN LABA

2010 ◽  
Author(s):  
Fivi Anggraini
Keyword(s):  
Corporate Governance ◽  
Moral Hazard ◽  
Earnings Management ◽  
Conflict Of Interest ◽  
Significant Relationship ◽  
Stock Exchange ◽  
Earning Management ◽  
Independent Directors ◽  
Relationship Of ◽  
The Relationship

Earnings management is the moral hazard problem of manager that adses because of the conflict of interest between the manager as agent and the stakeholder and the owner as principal. The behavior of earnings management will immediately influence the reported earning. The aims of this research at examining the relationship of board and audit committe to earnings management. The samples of this research is all of companies member Corporate Governance Perception Index (CGPI) in the years of 2003-2006 which were listed in Jakarta Stock Exchange. The results of this study show that (1) the proportion of independent directors on the board had not significant relationship to earning management, (2) competence of independent directors on the board had not significant relationship to earning management, (3) the size of board had significant relationship to earning management, (4) the proportion of independent directors on the audit committe had not significant relationship to earning management, and (5) competence of members of the audit committe had significant relationship to earning management.

scholarly journals Corporate governance and conglomerate diversification strategy – evidence from Vietnam

2018 ◽  
Vol 13 (6) ◽  
pp. 1578-1596 ◽  
Author(s):  
Thi Xuan Trang Nguyen
Keyword(s):  
Corporate Governance ◽  
Stock Exchange ◽  
Board Composition ◽  
Governance Mechanisms ◽  
Content Type ◽  
Unrelated Diversification ◽  
Corporate Governance Mechanisms ◽  
Control Devices ◽  
Interest Alignment ◽  
The Relationship

Purpose The purpose of this paper is to examine the impact of internal corporate governance mechanisms, including interest alignment and control devices, on the unrelated diversification level in Vietnam. Additionally, the moderation of free cash flow (FCF) on these relationships is also tested. Design/methodology/approach The study is based on a balanced panel data set of 70 listed companies in both stock markets, Ho Chi Minh Stock Exchange and Hanoi Stock Exchange, in Vietnam for the years 2007–2014, which gives 560 observations in total. Findings The results show that if executive ownership for CEOs is increased, then the extent of diversification is likely to be reduced. However, the link between unrelated diversification level and executive stock option, another interest alignment device, cannot be confirmed. Among three control devices (level of blockholder ownership, board composition and separation of CEO and chairman positions), the study finds a positive connection between diversification and blockholder ownership, and statistically insignificant relations between the conglomerate diversification level and board composition, or CEO duality. Additionally, this study discovers a negative link between diversification and state ownership, although there is no evidence to support the change to the effect of each internal corporate governance mechanism on the diversification level of a firm between high and low FCF. Practical implications The research can be a useful reference not only for investors and managers but also for policy makers in Vietnam. This study explores the relationship among corporate governance, diversification and firm value in Vietnam, where the topics related to effectiveness of corporate governance mechanisms to public companies has been increasingly attractive to researchers since the default of Vietnam Shipbuilding Industry Group (Vinashin) happened in 2010 and the Circular No. 121/2012/TT-BTC on 26 July 2012 of the Vietnamese Ministry of Finance was issued with regulations on corporate governance applicable to listed firms in this country. Originality/value This research, first, enriches current literature on the relationship between corporate governance and firm diversification. It can be considered as a contribution to the related topic with an example of Vietnam, a developing country in Asia. Second, the research continues to prove non-unification in results showing the relationship between corporate governance and conglomerate diversification among different nations. Third, it provides a potential input for future research works on the moderation of FCF to the effects of corporate governance on diversification.

scholarly journals The Relationship between Liquidity and Firms’ Profitability: A Case Study of Karachi Stock Exchange

2017 ◽  
Vol 9 (1) ◽  
pp. 54 ◽  
Author(s):  
Nazish Bibi ◽  
Shehla Amjad
Keyword(s):  
Regression Analysis ◽  
Stock Exchange ◽  
Negative Relationship ◽  
Return On Assets ◽  
Current Ratio ◽  
Factors Affecting ◽  
Operating Income ◽  
Secondary Sources ◽  
Individual Variables ◽  
The Relationship

The purpose of this paper is to investigate the relationship between firm’s liquidity and profitability; and to find out the effects of different components of liquidity on firms’ profitability.The relationship between liquidity and firms’ profitability is empirically examined by collecting the data of 50 listed firms of Karachi Stock Exchange, Pakistan. Panel data has been collected from secondary sources for the year 2007 to 2011 .Net operating income and Return on assets are used measure of firm’s profitability. Liquidity of the firm is measured by using cash gap in days and current ratio. Firm size measured by net sales, total assets and market capitalization .The study applies regression analysis to determine factors affecting profitability. Incremental tests are carried out to see the importance of individual variables in the model.The results of correlation and regression analysis showed that there is a significant negative relationship between cash gap and return on assets while current ratio has significant positive relationship with profitability. Results further indicate that log of sales and log of total assets has positive significant relationship with profitability. The findings of this study are based on firms listed on the Karachi Stock Exchange (KSE). Hence, the results cannot be generalizable to those firms which are not listed on Karachi stock exchange. The sample of the study comprises only the merchandising and manufacturing firms. Banks are excluded due to their nature of work.

Relationship between corporate governance and audit switching: Iranian evidence

2017 ◽  
Vol 59 (5) ◽  
pp. 673-686
Author(s):  
Mahdi Salehi ◽  
Ali Asgar Alinya
Keyword(s):  
Corporate Governance ◽  
Design Methodology ◽  
Stock Exchange ◽  
Listed Companies ◽  
Panel Analysis ◽  
Cross Sectional ◽  
Content Type ◽  
Effective Factors ◽  
Dependent Variables ◽  
The Relationship

Purpose This paper aims to investigate the relationship between corporate governance and auditors switching of listed companies on the Tehran Stock Exchange. Design/methodology/approach To achieve the objectives of this study, 12 hypotheses developed which and tests the relationship between corporate governance and selecting and switching auditors in Iran during 2008-20014 by selecting 116 listed companies on the Tehran Stock Exchange. To test the hypotheses, the cross-sectional time-series nature of research variables data, panel analysis is used. Also, to investigate the relationship between independent and dependent variables in each year, the logistic regression is used. Findings The results of the study indicate that there is a weak relationship between corporate governance auditors switching. Therefore, it could be concluded that there are some other effective factors on which selecting and switching auditors in studied companies are more dependent. Originality/value The current study is almost the first study which has been conducted in Iran, so the results of the study may be beneficial to the Iranian conditions as well as other developing countries.

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