Social Outcomes of Corporate Governance: Evidence from the Food Industry of Pakistan

Social and environmental problems are becoming strategic concerns for the managers in the current business scenario because it is challenging their sustainability. Here the need arises to respond to this changing phenomenon accordingly. In this regard social impact of corporate governance has not yet been explored where it can play a role of driver of excellence in terms of social performance and it is required to be studied. To check the existing situation, this study has been conducted where the social impact of corporate governance has been explored in the food Industry of Pakistan. Questionnaires have been filled from 176 managers working in six food producing firms listed in Pakistan Stock Exchange (PSX). Structural Equation Modeling based partial least square (PLS) has been used where Smart PLS has been used for model estimation. Results are supporting the stakeholder theory as Nestle Pakistan and Engro Foods are driving social excellence through corporate governance practices, where the corporations are showing strong positive relationships of corporate governance practices with stakeholders management, environmental integrity and protection, social cohesion and equity while insignificant relationship exists between strategic proactivity and corporate governance practices as people are resistant to change and innovation. The relationships can be explored in other industries like Oil and gas, Chemicals and Construction etc.

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Analysis of Banking Risk, Good Corporate Governance, Capital and Earning Influences on the Indonesia’s Commercial Bank Performances

10.31219/osf.io/vqm9y ◽

2021 ◽

Author(s):

M. Nuruddin Subhan

Keyword(s):

Corporate Governance ◽

Commercial Bank ◽

Commercial Banks ◽

Structural Equation ◽

Stock Exchange ◽

Partial Least Square ◽

Least Square ◽

Equation Modeling ◽

Good Corporate Governance ◽

Bank Soundness

This study aims to analyze the effect of commercial bank soundness in Indonesia based on Bank Indonesia regulation number 13/24/DPNP date 25 October 2011, which concern on the implementation guide for Bank Regulation in Indonesia number 13/1/PBI/ 2011 on assessment of bank healthy. In general, those assessments cover risks, good corporate governance (GCG), earning and capital. While, the performance of commercial bank is measured based on credit growth and profit growth. A total of 45 commercial banks listed on the Indonesia Stock Exchange are the population of the study which will be analyzed using the structural equation modeling program - partial least square (SEM-PLS). The results show that credit risk, GCG and earnings have no effect on bank’s performance in Indonesia. Market risk, liquidity risk and capital negatively affect the performance of commercial banks in Indonesia. This research is expected to contribute to the policy making of central banks and also commercial bank organization in particular to improve their performance. This research also contributes to the theory by enriching the discussion on related themes.

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Analysis of Banking Risk, Good Corporate Governance, Capital and Earning Influences on the Indonesia’s Commercial Bank Performances

Journal of Economics and Business ◽

10.31014/aior.1992.04.02.358 ◽

2021 ◽

Vol 4 (2) ◽

Author(s):

M. Nuruddin Subhan ◽

Keyword(s):

Corporate Governance ◽

Commercial Bank ◽

Commercial Banks ◽

Structural Equation ◽

Stock Exchange ◽

Partial Least Square ◽

Least Square ◽

Equation Modeling ◽

Good Corporate Governance ◽

Bank Soundness

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Bagaimana Good Corporate Governance (GCG) dalam Keberlanjutan Perusahaan?

AKTSAR Jurnal Akuntansi Syariah ◽

10.21043/aktsar.v3i2.7093 ◽

2020 ◽

Vol 3 (2) ◽

pp. 225

Author(s):

K. Kurniyati ◽

K. Khairiyani

Keyword(s):

Corporate Governance ◽

Firm Value ◽

Stock Price ◽

Structural Equation ◽

Partial Least Square ◽

Least Square ◽

Equation Modeling ◽

Tobin’S Q ◽

Tobin's Q ◽

Good Corporate Governance

<p>This research aimed to examine the effect of Good Corporate Governance (GCG) on firm value. Good Corporate Governance (GCG) was measured by the Corporate Governance Perception Index (CGPI). CGPI was assessed by the Indonesian Institute of Corporate Governance (IICG), an independent institute that was conducting the development of Good Corporate Governance in Indonesia. The firm value was reflected by the stock price, PBV (Price to Book Value), and Tobin’s Q. This study used ten firms as a sample consistently listed in the Indonesian Stock Exchange and followed the CGPI program during 2014-2019. The sample was determined by using purposive sampling. Analysis of data in this study used Structural Equation Modeling-Partial Least Square (SEM-PLS) with SmartPLS 3rd version. The result showed that CGPI reflected Good Corporate Governance affected firm value (stock price, PBV, and Tobin’s Q).</p>

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PENGARUH INTELLECTUAL CAPITAL DAN CORPORATE GOVERNANCE TERHADAP NILAI PERUSAHAAN DENGAN PROFITABILITAS SEBAGAI VARIABEL MODERASI

Jurnal Ekonomi dan Bisnis (EK&BI) ◽

10.37600/ekbi.v4i1.255 ◽

2021 ◽

Vol 4 (1) ◽

pp. 426-436

Author(s):

Anisa Hediyanti Muasiri ◽

◽

Erna Sulistyowati ◽

Keyword(s):

Corporate Governance ◽

Intellectual Capital ◽

Firm Value ◽

Structural Equation ◽

Secondary Data ◽

Partial Least Square ◽

Least Square ◽

Equation Modeling ◽

Analysis Technique ◽

Modeling Data

This study aims to test the influence of intellectual capital and corporate governance on firm value with profitability as a moderating variable. The population of this study is banking companies listed on IDX during 2015 –2019 amounted to 45 companies. Sampling techniques using purposive sampling so that research samples obtained as many as 15 companies. The research data used is secondary data obtained from the annual report and GCG reportof banking companies listed on IDX during 2015 –2019. This study uses structural equation modeling data analysis technique –partial least square (SEM-PLS) with WarpPLS 7.0 software. The result of this study shows that: (1) Intellectual capital positively and significantly affects the firm value, (2) Corporate governance has no effect on the firm value, (3) Profitability can moderate the influence of intellectual capital on the firm value, (4) Profitability can’t moderate the influence of corporate governance on the firm value.Keywords: Intellectual Capital, Corporate Governance, Firm Value, Profitability

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Corporate governance practices’ influence on customer loyalty in Nigerian retail banks

Acta Commercii ◽

10.4102/ac.v18i1.549 ◽

2018 ◽

Vol 18 (1) ◽

Author(s):

Olubunmi O. Obioha ◽

Ajay K. Garg

Keyword(s):

Corporate Governance ◽

Customer Loyalty ◽

Structural Equation ◽

Banking Sector ◽

Positive Influence ◽

Retail Banking ◽

Partial Least Square ◽

Least Square ◽

Bank Management ◽

Governance Practices

Orientation: Customer loyalty is crucial in the retail banking sector, given the increasing competition within the industry and from emerging non-traditional players.Research purpose: This study sought to establish the influence of corporate governance practices on customer loyalty in Nigerian retail banks.Motivation for the study: Conducting a study of this nature highlights how corporate governance practices contribute to customer loyalty in the retail banking sector of Nigeria as a developing country in Africa.Research design, approach and method: Premised on relationship marketing and stakeholder theoretical orientations, the study used a sample of 424 bank customers scientifically selected from eight commercial banks identified within Ibadan Metropolis, Nigeria. A six-construct survey instrument was used to collect relevant data. Partial least square structural equation modelling (PLS-SEM) version 3 was utilised to ascertain the interaction between customer loyalty and corporate governance practices domains.Main findings: The result of the PLS-SEM model established that all corporate governance practices had a positive effect on customer loyalty at a very significant level (p < 0.01), except transparency and disclosure, which had an inverse relationship and effect on customer loyalty, though at a non-significant level (β = -0.005, p = 0.93). Presence of competent bank management had the highest positive influence on customer loyalty.Practical/managerial implications: The findings of this study will be useful for bank management and role players in the financial and other service sectors on the importance of good corporate governance and specific attributes of the identified corporate governance that are critical for business success.Contribution/value-add: This study was able to identify corporate governance practices from customers’ perspective, which is a departure from the traditional shareholder perspective in business studies. It has advanced the relatively known terrain in corporate governance and business literature by opening up new debates on the relevance of corporate leadership beyond the confines of the boardroom.

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Corporate Governance an Imperative for Stakeholders Protection: Evidence from Risk Management of Indian Listed Firms

Business Perspectives and Research ◽

10.1177/2278533719886995 ◽

2019 ◽

Vol 8 (2) ◽

pp. 89-116 ◽

Cited By ~ 1

Author(s):

Showkat Ahmad Busru ◽

G. Shanmugasundaram ◽

Shariq Ahmad Bhat

Keyword(s):

Corporate Governance ◽

Structural Equation ◽

Good Governance ◽

Negative Relationship ◽

Partial Least Square ◽

Least Square ◽

Equation Modeling ◽

Board Structure ◽

Governance System ◽

Board Diversity

The central focus of the study is to assess corporate governance effectiveness in mitigating risk and controlling risk behavior of management of Indian firms. From sample of 270 NSE listed Indian firms for period of 9 years ranging from 2007–2008 to 2015–2016 using partial least square structural equation modeling (PLS-SEM) method an alternative to covariance-based SEM was applied to test hypothesis. While testing hypothesized negative relationship between good governance and risk-taking as documented in prior research, our results have shown contradictory results only in case of effectiveness of committee level governance especially compensation and risk committee effectiveness has failed to significantly claim causality on compensation risk and other risk measured through financial and investment risk. Similarly, board structure and activities have failed to reduce compensation sensitivity to performance, while as, characteristics like board diversity, expertise, average tenure, and CEO vested power boards have positive inclination to debt financing and spending on research and development. However, using Cohens D, called effect size, all corporate governance constructs have no or very minimal contribution in explaining changes in risk variability, thus creating ample scope for improvements in Indian corporate governance system.

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A Study Of Investor Financial Behavior on Online Trading System in Indonesian Stock Exchange: E-Satisfaction, E-Loyalty, And E-Trust

Journal of Economics Business and Accountancy Ventura ◽

10.14414/jebav.v23i1.2176 ◽

2020 ◽

Vol 23 (1) ◽

Author(s):

Rohmad Fuad Armansyah

Keyword(s):

Structural Equation ◽

Stock Exchange ◽

Partial Least Square ◽

Least Square ◽

Financial Behavior ◽

Equation Modeling ◽

Trading System ◽

Perceived Satisfaction ◽

Online Trading ◽

Least Square Approach

The online trading system allows traders to enter orders directly into the system via electronic media immediately and directly. This condition will affect the level of customer satisfaction while increasing customer loyalty. This research examines financial behavior in terms of satisfaction, trust, and loyalty in the use of an online trading system in the Indonesian stock exchange. Data was collected through an electronic questionnaire for the Indonesia Stock Exchange investors using convenience sampling. As many as 255 respondent data were obtained and processed using PLS-SEM (Structural Equation Modeling-Partial Least Square) approach. The results show that financial behavior, e-trust, e-satisfaction have an effect on the creation of e-loyalty of online trading system users in the Indonesia Stock Exchange. This suggests that the online trading system providers must improve their system's perceived satisfaction, including the features of advice and support in making purchasing decisions.

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Peran Kinerja Keuangan dalam Memediasi Islamic Corporate Governance terhadap Fraud

Syntax Literate ; Jurnal Ilmiah Indonesia ◽

10.36418/syntax-literate.v6i1.2232 ◽

2021 ◽

Vol 6 (1) ◽

pp. 418

Author(s):

Siti Juariah ◽

Dinnul Alfian Akbar ◽

Titin Hartini

Keyword(s):

Corporate Governance ◽

Structural Equation Modeling ◽

Structural Equation ◽

Partial Least Square ◽

Least Square ◽

Equation Modeling ◽

Good Corporate Governance ◽

Illegal Acts

Fraud dapat didefinisikan sebagai penyimpangan atau perbuatan melanggar hukum (Illegal Acts) yang dilakukan dengan sengaja, untuk tujuan tertentu Penipuan dalam pandangan Islam adalah perbuatan tercela, karena sudah merugikan orang lain. Jika manusia melakukan penipuan maka orang tersebut tidak menghargai kejujuran dalam mencapai suatu tujuan. Penelitian ini bertujuan untuk menganalisis pengaruh variabel independen yaitu Shariah Compliance terhadap Fraud sedangkan Kinerja Keuangan sebagai variabel mediator. Penelitian ini menggunakan data sekunder yang berasal dari Laporan Tahunan dan Laporan Good Corporate Governance 2015-2019 Perbankan Syariah yang terdaftar di Bank Indonesia. Penelitian ini menggunakan software Structural Equation Modeling (SEM), khususnya Partial Least Square (PLS). Hasil penelitian ini adalah: Islamic Corporate Governance berpengaruh negatif terhadap Fraud; Islamic Corporate Governance berpengaruh signifikan positif terhadap Kinerja Keuangan; Kinerja Keuangan berpengaruh signifikan negatif terhadap Fraud; dan Kinerja Keuangan Memediasi pengaruh Islamic Corporate Governance terhadap Fraud. Jenis penelitian yang digunakan adalah penelitian kuantitatif dengan pendekatan penelitian asosiatif atau relasional. Populasi dalam penelitian ini adalah seluruh karyawan tetap PT. Musi Hutan Persada Provinsi Sumatera Selatan yang berjumlah 108 orang. Pengambilan sampel yang digunakan oleh peneliti adalah sampling sensus yang diperoleh 50 responden. Teknik analisis data yang digunakan adalah regresi berganda yang diolah dengan menggunakan SPSS. Hasil penelitian menunjukkan bahwa Serikat Pekerja dan Hubungan Industrial berpengaruh positif dan signifikan terhadap Kesejahteraan Karyawan Tetap pada PT. Musi Hutan Persada Provinsi Sumatera Selatan.

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Determinant of Tax Aggressiveness and Relationship with Firm Value (Empirical Study Company Listed Go-Public in Indonesia Stock Exchange)

Jurnal Ekonomi Bisnis dan Kewirausahaan ◽

10.26418/jebik.v9i2.41245 ◽

2020 ◽

Vol 9 (2) ◽

pp. 109

Author(s):

Akhmad Hitten ◽

Novita Novita

Keyword(s):

Firm Value ◽

Structural Equation ◽

Stock Exchange ◽

Control Variable ◽

Total Sample ◽

Partial Least Square ◽

Least Square ◽

Equation Modeling ◽

Tax Aggressiveness ◽

Section Data

This study aims to determine the effect of liquidity, profitability, and solvability on the level of tax aggressiveness with firm value as a control variable. Total sample was 86 non-financial company that implicate tax aggressiveness in Indonesia Stock Exchange (IDX), with purposive sampling, with cross section data period 2007 to 2017. This study using agency theory and signaling theory as the grand theory. The data were analyzed using Structural Equation Modeling- Partial Least Square (SEM-PLS). This study uses a SmartPLS 3.0 and must pass outer and inner criteria. The reason why the author choose SmartPLS is because this application program can explain each indicator of the variable, so will be easy to evaluate which indicator that not have the correspondent affect with the dependend variable. The previous studies of ETR showed inconsistent results in various countries. Test results show that liquidity and profitability have a negative and significant influenced with tax aggressiveness. Solvability has a negative and not significant influenced on tax aggressiveness. Firm value has a positive and significant influenced on tax aggressiveness.

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KEPUTUSAN KEUANGAN, EFISIENSI OPERASIONAL, DAN INOVASI TERHADAP PENINGKATAN KINERJA KEUANGAN DAN NILAI PERUSAHAAN PADA PERUSAHAAN FARMASI DI BURSA EFEK INDONESIA

JBMI (Jurnal Bisnis, Manajemen, dan Informatika) ◽

10.26487/jbmi.v16i1.4730 ◽

2019 ◽

Vol 16 (1) ◽

pp. 22-38

Author(s):

Nurwahyuni Syahrir ◽

Syamsu Alam ◽

Abdullah Sanusi

Keyword(s):

Financial Performance ◽

Structural Equation ◽

Stock Exchange ◽

Investment Decision ◽

Operational Efficiency ◽

Partial Least Square ◽

Least Square ◽

Equation Modeling ◽

Financing Decision ◽

Company Value

Penelitian ini bertujuan menguji dan menganalisis pengaruh keputusan keuangan, efisiensi operasional dan inovasi terhadap kinerja keuangan dan nilai perusahaan di perusahaan farmasi yang terdaftar di Bursa Efek Indonesia (BEI) periode 2011 hingga 2017. Populasi penelitian sebanyak sepuluh perusahaan. Sementara sampel penelitian sebanyak tujuh perusahaan yang memenuhi kriteria. Penentuan sampel menggunakan teknik penyampelan purposif. Data diperoleh melalui Bursa Efek Indonesia dan situs web perusahaan. Data dianalisis menggunakan Structural Equation Modeling (SEM) dengan pendekatan Partial Least Square (PLS). Hasil penelitian menunjukkan bahwa (1) keputusan investasi memengaruhi kinerja keuangan secara positif dan tidak signifikan, (2) keputusan pendanaan memengaruhi kinerja keuangan secara negatif dan signifikan, (3) efisiensi operasional mempengaruhi kinerja keuangan secara positif dan signifikan, (4) inovasi memengaruhi kinerja keuangan secara negatif dan signifikan, (5) keputusan investasi memengaruhi nilai perusahaan secara positif dan signifikan, (6) keputusan pendanaan memengaruhi nilai perusahaan secara positif dan signifikan, (7) efisiensi operasional memengaruhi nilai perusahaan secara negatif dan tidak signifikan, (8) inovasi memengaruhi nilai perusahaan secara positif dan tidak signifikan, (9) kinerja keuangan memengaruhi nilai perusahaan secara negatif dan signfikan.Kata Kunci: Keputusan investasi, keputusan pendanaan, efisiensi operasional, inovasi, kinerja keuangan, dan nilai perusahaan. The research aimed at examining and analysing the effect of the financial decision, operational efficiency and innovation on the financial performance and company value in pharmaceutical companies registered in Indonesian Stock Exchange of period from 2011 to 2017. The research population was 10 companies. The research samples were seven companies which fulfilled the criteria. The samples were taken using the purposive sampling technique. Data were obtained through the Indonesian Stock Exchange website and companies’ website. The data were analyzed using Structural Equation Modeling (SEM) with Partial Least Square (PLS). The research result indicates that (1) the investment decision positively and insignificantly affects the financial performance, (2) the financing decision negatively and significantly influences the financial performance, (3) the operational efficiency positively and significantly affects the financial performance, (4) the innovation negatively and significantly influences the financial performance, (5) the investment decision positively and significantly affects the company value, (6) the financing decision positively and significantly influences the company value, (7) the operational efficiency negatively and insignificantly affects the company value (8) the innovation positively and insignificantly influences the company value (9) the financial performance negatively and significantly affects the company value.Keywords: Investment decision, financing decision, operational efficiency, innovation, financial performance, and company value.

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