Corporate Performance, Corporate Governance and CEO Dismissal in Malaysia

2013 ◽  
Vol 1 (2) ◽  
pp. 113-126
Author(s):  
Rokiah Ishak ◽  
Mohd ‘Atef Md. Yusof
Keyword(s):  
Corporate Governance ◽  
Ownership Structure ◽  
Corporate Performance ◽  
Voluntary Turnover ◽  
Ceo Turnover ◽  
Business Organization ◽  
Market Place ◽  
Ceo Dismissal ◽  
The Impact ◽  
The Relationship

Objective- This study empirically examines the incidence of CEO dismissal in Malaysian Public Listed Companies (PLCs). Methodology/Technique Logistic regression is used in this study to estimate the relationship between firm performance, corporate governance and CEO. Findings The result shows the impact of evaluation SPMS to solve the market place error and also ability of executives' level of management to solve the behaviours issue in business organization. Novelty - This paper study on the type of CEO turnover which segregate the type of turnover into forced and voluntary turnover. This research idea has limited finding globally as previous research on CEO turnover do not separate between forced and voluntary turnover Type of Paper Empirical paper Keywords: , CEO dismissal; corporate performance; board attributes; ownership structure

Corporate governance mechanisms and corporate performance of firms in Nigeria and Ghana

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Martha Coleman ◽  
Mengyun Wu
Keyword(s):  
Corporate Governance ◽  
Ownership Structure ◽  
Financial Distress ◽  
Corporate Performance ◽  
Tobin’S Q ◽  
Tobin's Q ◽  
Content Type ◽  
Structure Index ◽  
The Impact ◽  
The Relationship

PurposeThis study investigates the impact of corporate governance (CG) mechanisms with inclusion of compliance and diligence index on corporate performance (CP) of firms in Nigeria and Ghana. It further examines the moderating effect of financial distress on the relationship between CG and CP.Design/methodology/approachThe study used panel data of 102 nonfinancial listed firms of Nigeria and Ghana stock exchange for the period 2012–2016 with total observation of 510. The study first used OLS in estimating the influence of CG mechanisms on CP. Due to multicollinearity in the independent variables, ridge regression was employed.FindingsIt was revealed that ownership structure index and board compliance and diligence index, board size, board disclosure, ownership structure, shareholders' right and board compliance and diligence index had positive influence on ROA and ROE. Growth of Tobin's Q depends on board procedure and board compliance and diligence index. Also, financial distress (ZFS) negatively moderates the relationship between board structure index, board disclosure index, board procedure index, shareholders' right and performance (ROA and ROE) but negatively moderates between ownership structure index and Tobin's Q.Practical implicationsThis study provides interesting findings to policymakers in full implementation of CG codes as stated by OCED (2015) by West African firms with greater emphasis on compliance and diligence index since it positively influences all CP measures.Originality/valueThe study provides evidence of the importance of the introduction of the new index: compliance and diligence, which looks at disclosure of CSR activities. This has been overlooked by most researchers especially in Africa in assessing quality CG mechanisms.

scholarly journals CEO TURNOVER AND CORPORATE PERFORMANCE RELATIONSHIP IN PRE- AND POST- IFRS PERIOD: EVIDENCE FROM TURKEY

2012 ◽  
Vol 13 (3) ◽  
pp. 421-442 ◽  
Author(s):  
Banu Durukan ◽  
Serdar Ozkan ◽  
Fatih Dalkilic
Keyword(s):  
Corporate Governance ◽  
Performance Measures ◽  
Corporate Performance ◽  
Ceo Turnover ◽  
Financial Accounting ◽  
Governance System ◽  
Governance Systems ◽  
Corporate Governance System ◽  
The Impact ◽  
The Relationship

This study investigates CEO turnover and corporate performance relationship as a measure of the effectiveness of a corporate governance system. The impact of different financial accounting regimes on the turnover/performance relationship is also analyzed. If systems replace poorly performing managers, they are considered as not ineffective. The results provide evidence that corporate governance systems with poor governance characteristics may not be ineffective, due to the existence of alternative governance mechanisms. The disciplinary CEO turnover is found to be more strongly associated with corporate performance compared to voluntary CEO turnover, whereas in the IFRS subsample the relationship is stronger with contemporaneous performance measures.

scholarly journals Corporate performance and boards’ dilemma of listed subsidiaries

2013 ◽  
Vol 10 (4) ◽  
pp. 130-147 ◽  
Author(s):  
Emiliano Di Carlo ◽  
Francesco Ranalli
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Financial Performance ◽  
Ownership Structure ◽  
Corporate Performance ◽  
Listed Companies ◽  
The Impact ◽  
The Relationship ◽  
Parent Companies

The paper focuses on listed companies controlled by other (listed or not listed) entities. The decisionmaking power of listed subsidiary’s boards could be strongly influenced by (or instead could be autonomous from) the parent companies’ board. However, so far literature on corporate governance seems not to have considered adequately this aspect as well as the impact of that influence on listed companies’ financial performance and on corporate governance variables. The main objective of this paper is to explore how and why this phenomenon is relevant, giving some preliminary suggestions on the interpretation of the ownership structure, board demography and the financial performances of directed listed subsidiaries. In order to explore the relevance of the phenomenon, we use a sample of Italian listed companies controlled and consolidated by other companies for the year 2010. The analysis shows that 71.4% (145 firms) of Italian non-financial listed companies are consolidated by the respective controlling entities and 24.1% (35 firms) of these listed subsidiaries declare to be directed by their parents. Thus, they are not independent economic entities and the effort to study the relationship between corporate governance variables and firm performance could be strongly biased.

scholarly journals Effect of Corporate Governance and Capital Structure on Corporate Performance in Malaysian Listed Companies: A Conceptual Approach

2020 ◽  
Vol 5 (2) ◽  
Author(s):  
Fauzan ◽  
Azhar Bin Abdul Rahman ◽  
Marhaiza Binti Ibrahim
Keyword(s):  
Corporate Governance ◽  
Capital Structure ◽  
Corporate Performance ◽  
Annual Reports ◽  
Conceptual Approach ◽  
Public Companies ◽  
The Public ◽  
Thomson Reuters ◽  
The Impact ◽  
The Relationship

Purpose: Corporate governance and capital structure are seen as significant factors in improving corporate performance. Although many studies have examined the relationship between corporate governance and capital structure through corporate performance, this research gap is still significant when considering the relationship between corporate governance and capital structure in the Malaysian context. The purpose of this study is to develop a conceptual framework that examines the impact of corporate governance and capital structure on the performance of the public companies in Malaysia. Design/Methodology/Approach: The primary method will use quantitative with secondary data, using the annual reports of companies registered on Bursa Malaysia from the period 2013 to 2016. As well as the data available on Thomson Reuters Data Stream Version 5.1 available at the Sultanah Bahiyah Library of Universiti Utara Malaysia. Implications/Originality/Value: This study proposes to enhance the role of corporate governance and capital structure, and to redefine corporate governance policy and capital structure to enhance corporate performance. Finally, it is hoped that this study will enhance the performance of the companies, and benefit the financial report users, investors, creditors, shareholders, and other stakeholders in the public companies in Malaysia.

scholarly journals The relationship between corporate governance and firm performance revisited: where do we stand?

2010 ◽  
Vol 7 (3) ◽  
pp. 124-137 ◽  
Author(s):  
Stefan Hilger
Keyword(s):  
Corporate Governance ◽  
Business Models ◽  
Corporate Performance ◽  
Holistic Approach ◽  
Governance Mechanisms ◽  
Governance Practices ◽  
The Usa ◽  
The Impact ◽  
The Relationship

How is corporate governance measured, and what is the relationship between corporate governance mechanisms and corporate performance? This paper aims to shed light on these questions by providing an overview of the most important research findings in this area with a focus on the USA and Germany. My analysis gives rise to the following remarks. First, studies examining the impact of singles governance mechanisms are inconclusive and mixed in their findings, and especially the question of causality is still unanswered. Second, when a holistic approach is used, the proposition that good corporate governance enhances long-term performance is supported. However, corporate governance practices alone cannot assure long-term corporate performance and good standards of corporate governance are no substitute for the solidity of business models.

scholarly journals Audit committee chairman characteristics and corporate performance: Empirical evidence from Saudi Arabia

Accounting ◽  
2022 ◽  
Vol 8 (1) ◽  
pp. 47-56 ◽  
Author(s):  
Yahya Al-Matari
Keyword(s):  
Corporate Governance ◽  
Saudi Arabia ◽  
Audit Committee ◽  
Corporate Performance ◽  
Future Research ◽  
Committee Chairman ◽  
Performance Review ◽  
The Impact ◽  
The Relationship ◽  
Number Of Firms

The purpose of this paper is to investigate the impact of corporate governance (CG) characteristics, specifically audit committee chairman (ACC) characteristics. (tenure, expertise, and directorship) on corporate performance (CP). The study was executed on 44 firms, which were registered under the finance sector at Bursa Saudi Arabia. In terms of its scope, the study stretched over quite a long period of time and observed a considerable number of firms; more specifically, it lasted from 2015 to 2019, and observed 195 firms. The relationship between the characteristics of audit committee (AC) directors and CP has been studied extensively in the past. Nevertheless, few studies have investigated the ACC's characteristics. To the best of the researcher's knowledge, no study has yet studied the effect of CG's characteristics, specifically, the ACC characteristics on CP. The study’s conclusions indicate that corporate governance (CG) characteristics, specifically audit committee chairman (ACC) characteristics (tenure and expertise) are positively related to the performance of finance companies. However, the audit committee chairman’s multiple directorships, on the other hand, has no relationship with corporate performance. Review of literature on the audit committee chairman characteristics used in this study is offered, the practical implications and the recommendations for future research works is also emphasized.

scholarly journals Executive compensation and corporate performance: Evidence from Jordanian commercial banks

2018 ◽  
Vol 14 (2) ◽  
pp. 38-44 ◽  
Author(s):  
Majd Iskandrani ◽  
Hadeel Yaseen ◽  
Asma’a Al-Amarneh
Keyword(s):  
Corporate Governance ◽  
Executive Compensation ◽  
Commercial Banks ◽  
Ceo Compensation ◽  
Corporate Performance ◽  
Stock Exchange ◽  
Emerging Market ◽  
Primary Data ◽  
The Impact ◽  
The Relationship

The wave of the recent financial crisis has reawakened interest in corporate governance as well as the relationship between executive compensation and corporate performance. Notably, corporate governance has been presented as a mechanism to absorb fiscal crisis faced in emerging economies. The principal aim of this study is to investigate the relationship between CEO compensation and corporate performance among commercial banks operating in a small emerging market, namely Jordan. Primary data were collected for a sample of 13 Jordanian commercial banks listed at Amman Stock Exchange (ASE) during the period of 2010 -2016. The findings of this paper suggest that corporate performance measured by return on equity (ROE) and return on assets (ROA) has no influence on CEO compensation. Furthermore, this paper examines the impact of a firm’s size on the relationship between CEO compensation and corporate performance. The results reveal a significant relationship between executive compensation and firm’s performance among the smaller sample firms.

scholarly journals The impact of corporate governance on market capitalization: evidence from Bahrain bourse

2016 ◽  
Vol 13 (3) ◽  
pp. 121-130 ◽  
Author(s):  
Muneer Mohamed Saeed Al Mubarak ◽  
Allam Mohammed Mousa Hamdan
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Ownership Structure ◽  
Fixed Effects ◽  
Future Research ◽  
Market Capitalization ◽  
Listed Firms ◽  
Econometric Methods ◽  
The Impact ◽  
The Relationship

Our study is based on the “Agency Theory”, as it interprets the relationship between corporate governance and market capitalization of firms listed in Bahrain Bourse (BB). Longitudinal data is used in this study from 36 listed firms in Bahrain Bourse during the period of 2009-2013. A set of econometric methods, including the fixed effects method, is used to overcome different measurement problems of such relationship. The study findings include a set of results that are related to effect of ownership structure and board of directors’ characteristics on market capitalization of firms. Based on these findings, a set of recommendations, along with study limitations and future research, are put forward.

The mediating role of intellectual capital in corporate governance and the corporate performance relationship

2020 ◽  
Vol 36 (4) ◽  
pp. 531-561
Author(s):  
Tamer Mohamed Shahwan ◽  
Mohamed Mahmoud Fathalla
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Intellectual Capital ◽  
Corporate Performance ◽  
Superior Performance ◽  
Operating Efficiency ◽  
Efficiency Ratio ◽  
Content Type ◽  
The Impact ◽  
The Relationship

Purpose This paper aims to investigate the impact of intellectual capital (IC) as a mediator variable on the association between corporate governance (CG) practices and firm performance. This study also examines bi-causality linkages between these variables. Design/methodology/approach The designated corporate governance index and the value-added intellectual coefficient method were used to assess the level of CG practices and the performance of IC. Tobin’s Q (TQ) and operating efficiency ratio were used to measure firm performance. Findings The aggregate CG score has a significant positive impact on the IC and the two measures of firm performance. However, the IC has only a partial mediation effect on the relationship between the aggregate corporate governance score and a firm’s operational efficiency ratio. The IC has partial and full mediation effects in the relationship between the sub-dimensions of corporate governance and the performance of Egyptian corporates. Moreover, a bi-causality relationship can be observed between CG and TQ. Research limitations/implications Generalizing the obtained results would require the sample size to be extended. Practical implications The findings should alert legislative institutions and practitioners of the need to comply with good CG practices and develop the efficiency of IC to elicit a firm’s superior performance. Originality/value This study is one of the first attempts to investigate the causality relationships and the mediation impact of IC on the relationship between CG practices and corporate performance in the Egyptian context.

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