scholarly journals CORPORATE GOVERNANCE AND FIRM PERFORMANCE IN DEVELOPING COUNTRIES: EVIDENCE FROM EAST AFRICA

2021 ◽  
Vol 3 (7) ◽  
pp. 127-147
Author(s):  
David Namanya ◽  
Michelle Wye Leng Fong ◽  
Jude Thaddeo Mugarura
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Gender Diversity ◽  
Secondary Data ◽  
Common Market ◽  
Annual Reports ◽  
Governance Indicators ◽  
Enterprise Risk ◽  
Before And After ◽  
The Relationship

The main purpose of this study was to examine the relationship between corporate governance and firm performance; compare the influence of corporate governance on firm performance before and after the operationalization of the EAC- Common Market in 2010 and make recommendations about corporate governance codes that enhances firm performance. We adopted a positivist paradigm in a quantitative analysis using non-probability sampling to select forty-two EAC-listed companies. Hypothesizes were developed from literature review and secondary data from academic databases and annual reports was extracted and analysed using SPSS version 23 to generate descriptive statistics, correlation, and regression output. Our findings revealed that gender diversity of the board and enterprise risk management had no significant influence on firm performance but the relationship between board independence, the board size, and firm performance was inconclusive. On the changes in corporate governance indicators before and after the operationalization of the EAC Common Market in 2010, we discovered insignificant changes nevertheless, the results from regression model fit revealed that the indicators become relatively more relevant to company financial performance after the operationalization of the EAC Common Market in 2010 than before.

scholarly journals Impact of corporate governance index on firm performance: evidence from Pakistani manufacturing sector

2015 ◽  
Vol 4 (3) ◽  
pp. 163-174 ◽  
Author(s):  
Faisal Javaid
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Capital Investment ◽  
Random Effect ◽  
Annual Reports ◽  
Governance Mechanism ◽  
Inconsistent Result ◽  
Governance Index ◽  
Corporate Governance Mechanism ◽  
The Relationship

Corporate governance is considered to have significant impact on the growth and development perspective of an economy. Sound corporate governance practices leads the economy towards the achievement of higher performance, provide sources for capital investment by increasing the creditability of shareholders. The purpose of this study is to empirically investigate the relationship of corporate governance and firm performance in terms of accounting as well as market performance i.e.to be measured by Return on asset, Return on equity and Tobin’s Q. The theoretical base to conduct the study is the demand of separation of ownership and control characterize as agency theory. The previous studies have yielded inconsistent result. To achieve the purpose 58 textile sector companies were selected listed in the Karachi stock exchange and data was taken from annual reports of the companies for the period of 2009 to 2013. Descriptive statistics, correlation analysis and regression estimation using pooled, fixed effect, random effect and Hausman specification test were carried out after developing a composite index based on 21 proxies. The result entails that corporate governance index (CGI) and firm performance has positive and significant association but the relationship for each specific index is dependent upon the measure of firm performance. The result also shows that companies having strong corporate governance mechanism has greater chances to acquire finance. The implication of study demands that the reform effort should be directed towards the improvement in internal corporate governance mechanism and regulatory framework for the governance system.

scholarly journals Examining the Relationship Between Enterprise Risk Management and Firm Performance in Malaysia

2019 ◽  
Vol 10 (3) ◽  
pp. 239
Author(s):  
Mazurina Mohd Ali ◽  
Nur Shazwani Ab Hamid ◽  
Erlane K Ghani
Keyword(s):  
Risk Management ◽  
Firm Performance ◽  
Enterprise Risk Management ◽  
Audit Firm ◽  
Listed Firms ◽  
Significant Coefficient ◽  
Enterprise Risk ◽  
Before And After ◽  
The Mean ◽  
The Relationship

This study aims to examine the relationship between enterprise risk management (ERM) implementation and firm performance in Malaysia. Using the sample from 2010 to 2016, this study examines the relationship between ERM and firm performance among Malaysian top 100 public listed firms registered on the Index FTSE Bursa Malaysia 100 (FBM100) KLSE. This study also provides comparisons before and after the introduction of Bursa Malaysia Guidelines 2013. This study shows a positive and significant coefficient between profitability and firm performance towards ERM implementation. However, this study shows insignificant relationship between firm size, financial leverage and audit firm with firm performance. This study also shows that there is an increase in the mean score and standard deviation of these variables after the implementation of Bursa Malaysia Guideline 2013. The findings in this study provides an understanding to the Malaysian public listed firms on the importance of ERM and subsequently, maximise the benefits of ERM especially after the introduction of Bursa Malaysia Guidelines 2013 for the benefits of their stakeholders and regulatory improvement in future.

scholarly journals The Relationship between Board Diversity, Board Independence and Corporate Fraud

2021 ◽  
Vol 7 (1) ◽  
pp. 33
Author(s):  
Noor Hasniza Haron ◽  
Nazhatul Afzan Abdul Halim ◽  
Norhayati Alias
Keyword(s):  
Significant Relationship ◽  
Gender Diversity ◽  
Secondary Data ◽  
Annual Reports ◽  
Binary Logistic Regression Analysis ◽  
Board Independence ◽  
Women Directors ◽  
Board Diversity ◽  
Corporate Fraud ◽  
The Relationship

This study examines the relationship between board diversity, board independence and corporate fraud. This study employs agency theory to support the hypotheses. This study examines a sample of 42 companies that are listed on Bursa Malaysia, comprising 21 fraudulent companies and 21 non-fraudulent companies during the period from 2013 until 2017; with two firm-year observations which brings to eighty-four firm-year observations altogether. This study uses secondary data that have been obtained from the narrative information of the Corporate Information section of the annual reports of the said sample companies. This study uses binary logistic regression analysis to examine whether there is significant relationship between board diversity and board independence and corporate fraud. The results evidence significant relationship between gender diversity, board experience and board independence and corporate fraud whereby the increase in the number of women directors, a mixed of directors with industrial and accounting/finance experience and independent directors decrease the likelihood of the occurrence of corporate fraud. On the other hand, the results fail to document any relationship between board age and board education and corporate fraud.

scholarly journals Can board mechanism affect the firm value in Pakistan?

2009 ◽  
Vol 6 (3) ◽  
pp. 308-317 ◽  
Author(s):  
Mian Sajid Nazir ◽  
Shafaqat Ali ◽  
Abdul Haque
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Firm Value ◽  
Board Structure ◽  
Board Size ◽  
Positive Role ◽  
Performance Variables ◽  
Performance Factors ◽  
Governance Indicators ◽  
The Relationship

Corporate governance is, undoubtedly, extremely essential for the performance of the organizations. The structure of corporate ownership has significant impact on the external as well as internal performance factors of firms. The relationship between corporate governance indicators and firm performance has been extensively investigated; however, a little work has been done on how the structure of board can add value to the firm. This paper sheds light on the relationship of some aspects of board structure like board size, board composition, and CEO duality with the performance variables Tobin’s Q and Return on Assets (ROA) by using a sample of 53 firms of cement and sugar sectors of Pakistan for a period of 2005-2007. The results indicate that the firms perform better with moderate board size and the performance is adversely affected if CEO also acts as chairperson of board of directors whereas the external directors can play a positive role for firm performance in Pakistan.

scholarly journals The Benefit of Enterprise Risk Management (ERM) On Firm Performance

2019 ◽  
Vol 17 (2) ◽  
pp. 168
Author(s):  
Mochamad Muslih
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Firm Performance ◽  
Stock Exchange ◽  
Control Variable ◽  
Secondary Data ◽  
Enterprise Risk Management ◽  
Enterprise Risk ◽  
Research Findings ◽  
Independent Variable

<p>There were inconsistencies on the results of some ERM researches formerly.  There were some variabilities on the benefits and obstacles hampering the implementation of ERM.  The purpose of this research is to study the benefits of  Enterprise Risk Management (ERM) to increase firm performance.</p><p>This research used quantitative method, using the statistical software  of eviews 9 to process the data samples.  The Sampled firms arecompanies listed in the Indonesian stock exchange. 108 questionnaires were filled by the respondents. The variables measured are firm performances and enterprise risk management. The implementation of corporate governance and firm performance are also measured as control variables. Regression procedures were used to analyze the data samples. Some secondary data were also used to enrich analizing the research phenomena.</p><p>The research findings showed a significant relationship between ERM with firm performance. The effect of ERM as independent variable on firm performance waso significant so that the influence of corporate governance (CG) as  control variable became insignificant. Actually based on individual regression, CG influence on firm performance is significant. But totally the influence became insignificant, hampered by the magnitude of ERM influence significancy. These findings add to positive heuristics of falsification model of research as proposed by Imre Lakatos.</p>

scholarly journals ANALISIS PERBANDINGAN PENERAPAN GOOD CORPORATE GOVERNANCE SEBELUM DAN SESUDAH KONVERSI PADA BANK ACEH SYARIAH

2019 ◽  
Vol 4 (4) ◽  
pp. 662-676
Author(s):  
Renny Sharah ◽  
Musfiari Haridhi
Keyword(s):  
Corporate Governance ◽  
Organizational Structure ◽  
Supervisory Board ◽  
Secondary Data ◽  
Annual Reports ◽  
Effective Implementation ◽  
Good Corporate Governance ◽  
Significant Difference ◽  
Before And After ◽  
Corporate Annual Reports

This study aims to see differences in the implementation of Good Corporate Governance in Bank Aceh Syariah before and after cut off. The type of this study is descriptive qualitative. The object of this study is Good Corporate Governance Bank Aceh Syariah. The type of data is secondary data as corporate annual reports of 2014-2017. The results of this study show that there was no significant difference in the implementation of Good Corporate Governance in Bank Aceh Syariah for the year of this research. The mechanism and tools for the effective implementation of Good Corporate Governance are relatively the same. There was additional organizational structure after cut off in the implementation of Good Corporate Governance with the establishment of a Sharia Supervisory Board, tasked with overseeing the business activities of the bank to fit the Fatwa of The National Sharia Council

scholarly journals Firm Characteristics, Corporate Governance and Tax Avoidance:Study on Mining Companies in Indonesia

2021 ◽  
Vol 04 (11) ◽  
Author(s):  
Sri Suranta ◽  
Keyword(s):  
Corporate Governance ◽  
Tax Avoidance ◽  
Secondary Data ◽  
Annual Reports ◽  
Firm Characteristics ◽  
Mining Company ◽  
Mining Companies ◽  
Kolmogorov Smirnov ◽  
The Relationship ◽  
Smirnov Test

This research was conducted with the aim of: (1) to determine whether firm characteristics and corporate governance affect tax avoidance in mining companies in Indonesia, and (2) to determine whether corporate governance moderates the relationship between firm characteristics and tax avoidance. The research sample is all mining companieslisted on the IDX forthe period 2015 to 2018, totally 156 observations. From 156 observations, 84 observations can be analyzed. This research data is secondary data in the form of mining company Annual Reports obtained from the official website of the IDX, namely www.idx.co.id and the official websites of the respective companies. Data analysis to test data normality used the Kolmogorov Smirnov test. Hypothesis testing uses moderated regression analysis (MRA) with SPSS. The result of the analysis shows that firm characteristics consisting of leverage and ROE have an effect on tax avoidance, while company size has no effect on tax avoidance. Another result is that CG as measured by the proportion of independent commissioners does not moderate the relationship between firm characteristics and tax avoidance.

The Relationship Between Corporate Governance and Corporate Social Responsibility Expenditure in Bangladesh: Moderating Role of Firm Value

2020 ◽  
Vol 13 (2) ◽  
pp. 190-209
Author(s):  
Md Sajjad Hosain
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Firm Value ◽  
Banking Sector ◽  
Gender Diversity ◽  
Annual Reports ◽  
Corporate Social ◽  
The Relationship

This article aims at identifying the relationship between corporate governance (CG) and corporate social responsibility expenditure (CSRE) for the Bangladeshi banking sector. CG has been considered as the single independent variable divided into three components: board size (BS), gender diversity (GD) and board members’ interrelationship (BMI), and CSRE has been considered as the dependent variable. Further, a single moderator—firm value (FV) as been employed in order to test the moderating influence. Annual reports from 2015 to 2019 (5 years) of 35 banking firms have been used as samples. The study utilized Pearson’s correlation coefficient in order to test the direct relationships and regression analysis to test the moderating effects. The analysis has revealed that BS and GD are positively associated with CSRE while BMI has a negative association with CSRE. Furthermore, has been revealed that FV can moderate all the direct relationships. The study is expected to aid researchers in further empirical investigation over this important issue and guide policymakers to obtain more representative outcomes to make constructive decisions regarding CG and CSRE that would, in turn, increase FV.

scholarly journals ESG disclosure and firm performance before and after IR

2020 ◽  
Vol 28 (3) ◽  
pp. 429-444 ◽  
Author(s):  
Khaldoon Albitar ◽  
Khaled Hussainey ◽  
Nasir Kolade ◽  
Ali Meftah Gerged
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Gender Diversity ◽  
Ownership Concentration ◽  
Content Type ◽  
Moderation Effect ◽  
Corporate Governance Mechanisms ◽  
Before And After ◽  
The Uk ◽  
The Relationship

Purpose This paper aims to investigate the effect of environmental, social and governance disclosure (ESGD) on firm performance (FP) before and after the introduction of integrated reporting (IR) further to exploring a potential moderation effect of corporate governance mechanisms on this relationship. Design/methodology/approach Ordinary least squares and firm-fixed effects models were estimated based on data related to FTSE 350 between 2009 and 2018. The data has been mainly collected from Bloomberg and Capital IQ. This analysis was supplemented with applying a two-stage least squares (2 SLS) model to address any concerns regarding the expected occurrence of endogeneity problems. Findings The results show a positive and significant relationship between ESGD score and FP before and after 2013, among a sample of FTSE 350. Furthermore, the study is suggestive of a moderation effect of corporate governance mechanisms (i.e. ownership concentration, gender diversity and board size) on the ESGD-FP nexus. Additionally, this paper finds that firms voluntarily associated with IR have a tendency to achieve better firm financial performance. Practical implications The findings of the present study have several policy and practitioner implications. For example, managers may engage in ESGD to enhance their firms’ financial performance by the voluntary involvement in IR, which believed to help investors to rationalise their investment decisions. Likewise, the results reiterate the crucial need to integrate more social, environmental and economic regulations to promote sustainability in the UK. The paper also offers a systematic picture for policymakers in the UK as well as future researchers. Social implications The findings of this paper indicate that IR plays a significant role in the relationship between ESGD and FP, where IR firms seemed to be achieving better FP as compared with their non-IR counterparts. This implies that stakeholders may have played a magnificent effort to encourage firms’ voluntary engagement in IR in the UK. Originality/value To the best of the authors’ knowledge, this is the first study to explore the potential moderating effect of ownership concentration, gender diversity and board size on the relationship between ESGD and FP and to examine whether firms’ voluntary involvement in IR can lead to better FP after the introduction of IR in 2013 in the UK.

Diversity ASX corporate governance recommendations: a step towards change?

2017 ◽  
Vol 8 (3) ◽  
pp. 335-357 ◽  
Author(s):  
Sonia Shimeld ◽  
Belinda Williams ◽  
Justin Shimeld
Keyword(s):  
Corporate Governance ◽  
Cultural Change ◽  
Listed Company ◽  
Gender Diversity ◽  
Business Case ◽  
Annual Reports ◽  
Gender Inequity ◽  
Content Type ◽  
Disclosure Requirements ◽  
Before And After

Purpose The business case argument was used to underpin the inclusion of diversity disclosures within the Australian Securities Exchange (ASX) Corporate Governance Principles and Recommendations (2010). By adding a requirement for diversity disclosure, an increase in focus on diversity would be expected because of a heightened level of accountability. Whether this change in the Recommendations affected any change in the boardroom is questionable though. The purpose of this paper is to explore the effectiveness of these disclosure requirements. Design/methodology/approach The authors draw on data obtained from a random sample of 120 ASX-listed company annual reports across two time periods: 2009 and 2012 (before and after the change in the Recommendations). Findings Although findings indicate that there has been some change, especially in the more visible companies (ASX200), many of the changes appear to be largely superficial with a continued focus on the business case perspective. Social implications While the disclosure recommendations have the potential to be a driver in addressing gender inequity, the findings of this paper indicate that without deep change at the organisational level, requiring listed companies to disclose on gender diversity may have little impact, with the focus remaining on the business case and business as normal. Originality/value This paper contributes to the literature on gender diversity in the boardroom and the effect of disclosure. The empirical findings contribute to an understanding of the diversity Recommendations within the ASX Corporate Governance Principles and Recommendations, but in doing so, it calls for deeper organisational cultural change if real change is to take effect.

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