scholarly journals Risk Management in Corporate Governance Framework

2021 ◽  
Vol 13 (9) ◽  
pp. 5015
Author(s):  
Hania Rehman ◽  
Muhammad Ramzan ◽  
Muhammad Zia Ul Haq ◽  
Jinsoo Hwang ◽  
Kyoung-Bae Kim
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Emerging Markets ◽  
Financial Performance ◽  
Foreign Ownership ◽  
Board Size ◽  
Governance Framework ◽  
The Relationship

There is a scarcity of literature involving studies about the effect of risk management on the relationship between corporate governance and a firm’s financial performance, especially in emerging markets. The study fills this gap and adds to the existing literature by investigating whether risk management acts as a mediator between corporate governance and the firm’s financial performance. This study found that risk management partially mediates the relationship between board size and financial performance. Our results further indicate that risk management acts as a partial mediator between foreign ownership and financial performance.

scholarly journals Risk Management, Board Characteristics and Performance in the Tunisian Lending Institutions

2014 ◽  
Vol 3 (1) ◽  
pp. 186-200
Author(s):  
Ahmed Zemzem ◽  
Oumeїma Kacem
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Financial Performance ◽  
Board Size ◽  
Ols Regression ◽  
Management Board ◽  
Risk Committee ◽  
And Performance ◽  
Lending Institutions ◽  
The Relationship

The aim of our research is to investigate the relationship between risk management, corporate governance and performance in lending institutions. Mainly, this research seeks to examine the effect of risk management and some board’s features on financial performance. Empirical analyses are conducted from a sample of 17 Tunisian lending institutions over the period 2002-2011 using an OLS regression. The study shows that board size affect performance significantly. Most importantly, the existence of a risk committee within the institution has a negative and significant effect on performance.

scholarly journals Corporate governance and risk management in GCC banks

2016 ◽  
Vol 13 (3) ◽  
pp. 8-16 ◽  
Author(s):  
Ahmed A. El-Masry ◽  
Tarek Abdelfattah ◽  
Ehab Elbahar
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Panel Data Analysis ◽  
Capital Adequacy ◽  
Future Research ◽  
Islamic Banks ◽  
Board Size ◽  
Risk Management Framework ◽  
Gulf Countries ◽  
The Relationship

The current study examines the relationship between corporate governance and risk management in GCC banks. It aims to contribute to the literature by providing empirical evidence from the GCC’s banking industry of the association between risk management and corporate governance characteristics such as role duality, board size and percentage of nonexecutives. Design/Methodology - Using sample of 900 observations from banks in the Gulf countries, non-parametric regression, Quantile and panel data analysis have been used to test the hypotheses and the proposed model. The study uses data from financial institutions in the Gulf countries over the period from 2003 till 2012. Findings - Findings suggest that role duality and board size are negatively associated with the risk management. On other hand the percentage of non-executive members on the board was found to be insignificant. Moreover, findings indicate a positive significant relationship between governmental ownership and risk management. Research Implications - The results suggest that Islamic banks have a positive significant association with risk management measured by capital adequacy ratio. The results suggest future research to explore the relationship between risk management and other types of ownership structure such as institutional ownership. Future research can focus on risk management framework and practices in Islamic banks as such banks have its own risk.

scholarly journals Conceptual Model for Effective Board Composition in the Context of Emerging Markets

2015 ◽  
Vol 8 (1) ◽  
pp. 38
Author(s):  
Madi Almadi
Keyword(s):  
Corporate Governance ◽  
Emerging Markets ◽  
Financial Performance ◽  
Management Practices ◽  
Social Economic ◽  
Board Composition ◽  
Firm Financial Performance ◽  
The Impact ◽  
The Relationship ◽  
Practical Implications

The impact of context has little or no consideration in the mainstream corporate governance literature. The purpose of this paper is to consider social, economic, and political elements of the emerging Saudi Arabian market when developing a multi-theoretical model about the relationship between board composition and financial performance.<strong> </strong>The paper attempts to conceptually inform the conversation about context with regard to board composition and firm financial performance in emerging markets. In particular, it discusses these theoretical feedback loops in conjunction with a proposed research agenda for the field.<strong> </strong>The paper proposes shifting the focus of corporate governance in emerging markets from relying on the predominant Western corporate governance theories to the alignment of those theories with considerations on emerging markets context. Such an approach involves significant implications for corporate governance theories and management practices. The paper describes the conditions in which certain formation of board of directors is composed in the Saudi Arabia may generate a competitive advantage. The consideration of emerging markets context can have implications for society as it may influence firms and governments to improve corporate governance standards and practices<strong> </strong>A literature gap in the corporate governance literature identified in this paper holds theoretical and practical implications. This research will enable comparative studies with other emerging markets, and will provide a conceptual benchmark for future corporate governance research.

scholarly journals RISK MANAGEMENT AND BANKING PERFORMANCE WITH CORPORATE GOVERNANCE AS MODERATING VARIABLE

2021 ◽  
pp. 276
Author(s):  
Santi Hikmawati ◽  
Sutrisno Sutrisno
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Regression Analysis ◽  
Financial Performance ◽  
Sampling Method ◽  
Linear Regression Analysis ◽  
Control Variable ◽  
Multiple Linear Regression Analysis ◽  
Independent Variables ◽  
The Relationship

This research aims to analyze the effect of risk management on bank financial performance with corporate governance as a moderating variable. The independent variables used in this research are risk management, consist of credit risk (NPL), liquidity risk (LDR), and operating risk (OEIR). The dependent variable used is financial performance (ROA). Meanwhile, corporate governance as a moderating variable and firm size as a control variable. The regression model used are multiple linear regression analysis and moderated regression analysis. The sample was selected through purposive sampling method and 43 banks were selected as research sample. The result of this research showed that NPL and OEIR have a negative and significant impact on financial performance. Meanwhile, LDR has not significant effect on financial performance. Corporate governance was able to moderate the relationship between NPL and OEIR on financial performance, but unable to moderate the relationship between LDR on financial performance.

scholarly journals Does Corporate Social Responsibility Affect the Financial Performance of the Manufacturing Sector? Evidence from an Emerging Economy

2019 ◽  
Vol 11 (4) ◽  
pp. 1182 ◽  
Author(s):  
Jacob Cherian ◽  
Muhammad Umar ◽  
Phung Thu ◽  
Thao Nguyen-Trang ◽  
Muhammad Sial ◽  
...  
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Return On Assets ◽  
Board Size ◽  
Independent Variables ◽  
Corporate Social ◽  
The Impact ◽  
The Relationship

The present study analyzed the impact of corporate social responsibility (CSR) reporting on the financial performance of Indian companies. It used secondary data from 50 manufacturing companies over the period of fiscal years 2011 to 2017. The results suggested that there exists a significant relationship between the performance of Indian companies and their CSR. The CSR not only improves the firm’s social value and reputation but also improves profitability and performance. According to the results, return on assets is significantly determined by corporate governance, customers, products, number of employees, and board size. The customer has a negative impact on return on assets (ROA). The relationship between return on equity and independent variables is the same as the relationship between ROA and independent variables. Corporate governance and product positively impact ROE, but the relationship between customers, number of employees, and board size are negative. Corporate governance and product positively impact return on capital employed (ROCE), but the relationship between customer and the number of employees is negative. Education has positive impact on profit after tax (PAT) and profit before tax (PBT), but the PAT relationship between environments is negative. Corporate governance and product positively impact PBT. In general, we concluded that in India, socially responsible corporations perform better and vice versa.

Does corporate governance spillover firm performance? A study of valuation of MENA companies

2019 ◽  
Vol 15 (5) ◽  
pp. 597-620 ◽  
Author(s):  
Mahmoud Arayssi ◽  
Mohammad Issam Jizi
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Financial Performance ◽  
Ownership Concentration ◽  
Board Independence ◽  
Mena Region ◽  
Board Size ◽  
Content Type ◽  
Governance Committee ◽  
The Relationship

PurposeThe aim of the paper is to examine the association of corporate governance (CG), the firms’ characteristics and the financial performance of firms operating in the Middle East and North Africa (MENA) region after Arab Spring. The study focuses on CG, exemplified by boards’ composition and ownership structure. It also explores the possible moderating effects of environmental social and governance characteristics (ESG), leverage and size on the relationship between CG and the company’s performance.Design/methodology/approachUsing Thomson-Reuters database, a sample of 67 firms was extracted in the MENA region to measure CG and financial performance post Arab Spring from 2012 to 2016. Panel GLS regression random effects is used to quantify the relationship; robustness is checked by using several alternative regressions and specifications to the performance measure.FindingsThe results reveal that board independence (BI) is negatively correlated with firm profitability but ownership concentration and board gender diversification contribute to profits. When firms that voluntarily form a governance committee are examined, ownership is less concentrated. We obtain a stronger impact of good governance on performance in these firms: board composition, in general, and workers’ satisfaction generate more profits; and undertaking ESG activities become a more dispensable activity. The effect of board size (BS) and forming a governance committee are studied and ensuing recommendations are drawn. In addition, relevant internal control of firms’ characteristics that strongly predict firms’ market values are discussed in the context of agency and stewardship theories.Originality/valueDespite the fact that governance-performance nexus has been extensively discussed and examined, the focus of this volume of research is on western developed countries. The growing economies of the MENA countries, and the limited governance-performance literature in the MENA context have created a demand to understand the governance environment in these countries and its influence on firm’s performance. In this region where firms’ owners are mainly family members, governments and/or institutions, governance is typically weak; moreover, ownership concentration is expected to guarantee good performance, as the role of independent directors becomes ineffective. For firms where ownership is more diluted, a sound governance system should be established to replace ownership concentration, and to more efficiently monitor management, and consequently improve firm performance. Therefore, this study not only contributes a summary of the prevailing corporate structure in MENA. Moreover, it explains the settings where both the stewardship and agency theories apply in MENA firms. Some recommendation on the importance of changes to the existing governance rules are highlighted in terms of more rules requiring board independence, board gender diversity, limits on board size and establishing governance committees.

scholarly journals Empirical Evidence of Corporate Governance Disclosure and Board Size Modular with Financial Performance in select IT Companies in India

2017 ◽  
Vol 13 (01) ◽  
Author(s):  
Saurabh Kumar ◽  
Twinkle Prusty
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Return On Assets ◽  
Board Size ◽  
Independent Variable ◽  
Governance Practice ◽  
Corporate Governance Practice ◽  
Using Data ◽  
The Relationship ◽  
Governance Disclosure

This paper investigates the relationship and impacts of board size and corporate governance disclosure of selected listed Indian IT companies on its financial performance using data for five companies over a single period of 2014 to 2015. Using structure equation modelling, the study demonstrates the extent to which board size and disclosure helps explain the financial performance of the selected companies. The main findings show that there’s a significant relationship between independent variable i.e. board size and disclosure and dependent variable i.e. return on assets and capital employed. Thus board size is having inverse relationship with the returns whereas corporate governance disclosure is having positive relationship with the returns. Hence, the more the board size it will negatively affect the returns and more the corporate governance disclosure will lead to increase in returns. At backdrop this paper has also witnessed that different companies are having their own different attitude and approach regarding the disclosure of their corporate governance practice.

scholarly journals The relationship between board characteristics and firm financial performance in Malaysia

2016 ◽  
Vol 14 (1) ◽  
pp. 259-268 ◽  
Author(s):  
Sin Huei Ng ◽  
Boon Heng Teh ◽  
Tze San Ong ◽  
Wei Ni Soh
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Voluntary Disclosure ◽  
Random Effect ◽  
Board Size ◽  
Return On Equity ◽  
External Auditors ◽  
Board Characteristics ◽  
Firm Financial Performance ◽  
The Relationship

Corporate governance has drawn attention of investors and government after the incidence of financial crisis world- wide since the late 90’s. Despite that reforms of corporate governance have been in place in Malaysia, voluntary disclosure of corporate governance has yet to proof its impact on the financial performance of the companies. This study examines the relationship between corporate governance attributes and firm financial performance in Malaysia. The relationship between board characteristics (board tenure, board size and CEO duality) were analyzed to investigate their correlation with firm financial performances. A total of 100 public listed companies were randomly selected from Bursa Malaysia for the year 2009 to 2013. Random effect panel data regression was obtained by using Stata. This study finds that board size, board tenure were significant to Return on Equity (ROE) and Return on Assets (ROA). However, firm size has no significant relationship with firm financial performance. It is recommended that apart from including more variables as controlling effects on firm financial performance and examining few industries as sample, it is also good to examine the correlation between board characteristics and corporate governance variables (foreign listings, equity analysis, external auditors, leverage ratios, dividend policy, etc.) on one hand, and ownership structures on the other hand, that have significant impact on firm financial performance.

IMPLEMENTASI KINERJA KEUANGAN TERHADAP NILAI SPIRITUALITAS PRIBADI

2012 ◽  
Vol 16 (3) ◽  
pp. 332
Author(s):  
Whedy Prasetyo
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Annual Report ◽  
Main Concern ◽  
Good Corporate Governance ◽  
Corporate Social ◽  
The Relationship ◽  
Personal Spirituality

Development of financial performance in the application of Good Corporate Governance and Corporate Social Responsibility which affects the values of honesty private individuals, in order to be able to run the accountability, value for money, fairness in financial management, transparency, control, and free of conflicts of interest (independence). The main concern in this study is focused on achieving value personal spirituality through the financial performance and capabilities of Good Corporate Governance (GCG) and Corporate Social Responsibility (CSR) in moderating the relationship with the financial performance of value personal spirituality. This study is a descriptive verifikatif. The unit of analysis in this study was 15 companies in Indonesia with a policy that has been applied through the concept since January of 2008 until now, with the support of the annual report of the company, the company's financial statements, company reports to the disclosure of Good Corporate Governance and Corporate Social Responsibility in the annual report. Overall reports published successively during the years 2008-2011. The results of this study indicate financial performance affects the value of personal spirituality, and for variable GCG obtained results that could moderate the relationship of financial performance to the value of personal spirituality. But for the disclosure of CSR variables obtained results can’t moderate the relationship with the financial performance of personal spirituality.

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