scholarly journals CORPORATE GROWTH, AGE AND OWNERSHIP STRUCTURE: EMPIRICAL EVIDENCE IN SPANISH FIRMS / KOMPANIJOS DYDIS, AMŽIUS IR NUOSAVYBĖS STRUKTŪRA: EMPIRINIS TYRIMAS ISPANIJOS ĮMONĖSE

2011 ◽  
Vol 12 (1) ◽  
pp. 164-196 ◽  
Author(s):  
Justo de Jorge Moreno ◽  
Leopoldo Laborda Castillo
Keyword(s):  
Corporate Governance ◽  
Ownership Structure ◽  
Firm Growth ◽  
Relative Size ◽  
Entrepreneurial Activity ◽  
Economic Activities ◽  
Governance System ◽  
Spanish Economy ◽  
Established Firms ◽  
Productivity And Competitiveness

The objective of this work is to analyse firm mobility among the different sectors of the Spanish economy according to a statistical classification of economic activities at the 1-digit level. Some of the stylised facts that we find are: an inverse relation between firm growth and age; an increase in new entrants’ average relative size in terms of sales compared to established firms among the different industries and cohorts; the importance of the firm's initial size in entrepreneurial activity; the favourable impact of the economy on firm growth; and a positive relation between non-concentration in the ownership structure and greater mobility. In this context, an efficient corporate governance system may prove as a significant policy tool for the investment and growth prospective of the Spanish economy. The regulatory framework of the Spaniard capital market has been coordinate with the EU standards. The challenge is now mostly for the firms to adopt the appropriate corporate governance structures, in order to achieve real convergence, in terms of productivity and competitiveness, with other developed economies. Santrauka Pateikiami empirinio tyrimo, atlikto Ispanijos kompanijose, rezultatai. Tirti buvo pasirinktos skirtingiems pramones sektoriams (pagal ekonomikos veiklu klasifikatoriu) priklausanèios imones. Tyrimo metu nustatyta, kad egzistuoja sryšis tarp imones dydžio ir amžiaus, kad itakos turi ir skirtingi pramones sektoriai, kuriuose veikia imone, nustatytas sryšis tarp imones dydžio bei ekonominio aktyvumo, imones nuosavybes ir augimo. Atsižvelgiant i tai, siuloma veiksminga verslo valdymo sistema, kuri gali buti priimta kaip viena svarbiausiu politikos priemoniu pritraukiant investicijas ir didinant Ispanijos ekonomikos augim. Pasiulytosios veiksmingos verslo valdymo sistemos priemones pades imonems didinti produktyvum ir stiprinti konkurencini pranašum, palyginti su kitomis ekonomiškai stipriomis valstybemis.

Does audit committee substitute or complement other corporate governance mechanisms

2017 ◽  
Vol 32 (7) ◽  
pp. 658-681 ◽  
Author(s):  
Yousef Hassan ◽  
Rafiq Hijazi ◽  
Kamal Naser
Keyword(s):  
Corporate Governance ◽  
Ownership Structure ◽  
Audit Committee ◽  
Negative Relationship ◽  
Governance Mechanisms ◽  
Governance System ◽  
African Countries ◽  
Content Type ◽  
Board Characteristics ◽  
Corporate Governance Mechanisms

Purpose The purpose of this paper is to examine the relation between audit committee (AC) and a set of other corporate governance mechanisms in one of the emerging economies, United Arab of Emirates (UAE). In particular, the current study examines whether an effective AC can serve as a substitute or as a complement mechanism to board characteristics and ownership structure of Emirati listed non-financial companies. Design/methodology/approach Using substitution and complementary theories, a panel data from 48 nonfinancial companies listed on the UAE Stock Exchanges [Abu Dhabi Stock Exchange and Dubai Financial Market] during the period between 2011 and 2013 were used in the current study. A composite measure of four proxies has been used to measure the AC effectiveness, namely, AC size, independence, financial expertise and diligence. To test the hypotheses formulated for the study, a logistic regression model was used to identify the influence of a set of board characteristics and ownership structure variables on the effectiveness of the AC after controlling for firm size, auditor type, industry type and profitability. Findings While AC effectiveness appeared to be positively associated with board size and board independence, it is negatively associated with CEO duality. This points to a complementary governance relation. On the other hand, the negative relationship between AC effectiveness and each of institutional and government ownership suggests substitutive relations. Research limitations/implications The main shortcoming of the current study is that it examines the influence of a certain set of corporate governance factors on the effectiveness of AC. Other corporate governance mechanisms may, however, contribute to the effectiveness of AC. The findings of the study can be used by companies’ managements and regulators in the UAE to improve the corporate governance system. Originality/value To the best of researchers’ knowledge, this study provides the first evidence about the interaction among multiple governance mechanisms required by the code of corporate governance issued by the UAE Ministry of Economy in 2009. The current paper is expected to add to the limited AC literature in Middle East and North African countries in general and Arab World in particular.

scholarly journals Corporate Governance and Firm Performance: Empirical Evidence from India

2016 ◽  
Vol 1 (2) ◽  
pp. 48-65 ◽  
Author(s):  
Surya Bahadur G.C.
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Panel Data ◽  
Financial Performance ◽  
Ownership Structure ◽  
Independence Number ◽  
Negative Relationship ◽  
Governance System ◽  
Board Committees ◽  
Governance Practices

The paper attempts to analyze inter-linkages between corporate governance, ownership structure, capital structure and firm performance in India. The study employs a panel data of all CNX Nifty companies from 2008 to 2012. Using LSDV panel data models and 2SLS model the study reveals that that good corporate governance practices adopted by companies is positively related with financial performance. Board independence, number of board committees, and director remuneration are found to have positive relationship while larger board size, ownership by promoters and financial leverage have negative relationship with performance. There is existence of bi-directional relationship between corporate governance and financial performance. Companies with sound financial performance are more likely to conform to corporate governance norms and standards and implement sound corporate governance system. In addition, the findings reveal that corporate governance practices adopted by the listed firms depend on their ownership structure. Ownership concentration is found to effect corporate governance negatively.Journal of Business and Management Research, Vol. 1 (2), 2016, pp. 48-65. 

Institutional Reforms and the Effects of Family Control on Corporate Governance

2015 ◽  
Vol 29 (2) ◽  
pp. 174-188 ◽  
Author(s):  
Yung-Chih Lien ◽  
Chia-Chen Teng ◽  
Shaomin Li
Keyword(s):  
Corporate Governance ◽  
Ownership Structure ◽  
Institutional Environment ◽  
Governance System ◽  
Negative Effects ◽  
Institutional Reforms ◽  
Family Control ◽  
Family Governance ◽  
Pyramidal Ownership ◽  
Firm Governance

According to the institution-based view of corporate governance, firm-governance efficiency is influenced by the institutional environment in which the firm operates. In this study, we examine how firms under a family-governance system adapted to institutional reforms over time. The results of the analysis indicate that institutional reforms reduce firm dependence on family governance and eliminate the negative effects on performance exerted by a controlling family’s pyramidal ownership structure. We also find that institutional reforms foster external corporate governance by domestic institutional investors. In conclusion, our study shows that institutional reforms alter the essence of family firm governance.

scholarly journals Some issues in ownership structure and corporate governance

2014 ◽  
Vol 4 (3) ◽  
pp. 131-136 ◽  
Author(s):  
K.A. Darshana Lakmal
Keyword(s):  
Corporate Governance ◽  
Ownership Structure ◽  
Stock Exchange ◽  
Modern World ◽  
Stock Exchanges ◽  
Governance System ◽  
Institutional Differences ◽  
Emerging Issues ◽  
The Many ◽  
Corporate Resources

Corporate governance is a process that aims to allocate corporate resources in a manner that maximizes value for all stakeholders — shareholders, investors, employees, customers, suppliers, environment and the community at large and holds those at the helms to account by evaluating their decisions on transparency, inclusivity, equity and responsibility. Corporate governance has been commonly defined as the rules and procedures in place for governing an organization. It is the set of processes, customs, policies, laws, and institutions affecting the way a corporation (or company) is directed, administered or controlled. Corporate governance also includes the relationships among the many stakeholders involved and the goals for which the corporation is governed. Corporate governance principles and codes have been developed in different countries and issued from stock exchanges, corporations, institutional investors, or associations (institutes) of directors and managers with the support of governments and international organizations. As a rule, compliance with these governance recommendations is not mandated by law, although the codes linked to stock exchange listing requirements may have a coercive effect. However, given the rapid developments within the field and the increasing prominence of corporate governance in the modern world, this definition may be considered too narrow. Corporate governance, while a topic that has been examined in considerable depth in many areas, is widely applicable to a vast array of topics and issues. This study contributes to the literature by extending the mainly based on board literature to where there are important institutional differences and issues in ownership structure and corporate governance system and seeks to address new and emerging issues which have yet to be closely examined and have, to a degree, been overlooked.

scholarly journals Corporate governance models and their impact on financial performance. Evidence from Italian utility listed companies

2012 ◽  
Vol 9 (3) ◽  
pp. 43-51 ◽  
Author(s):  
Giuseppe Grossi ◽  
Patricia Bachiller
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Ownership Structure ◽  
Listed Companies ◽  
Profit Margin ◽  
Governance System ◽  
Competitive Firm ◽  
Corporate Governance System ◽  
Before And After ◽  
Governance Models

This paper analyses the theme of the corporate governance models of Italian utilities companies and explores how the changes of ownership structure after a merger affects financial performance. The objective of this paper is to study whether the mergers of utilities are effective for companies to be more competitive. We compare the financial performance of four Italian utility listed companies listed (A2A, IRIDE, HERA and ENIA) before and after the merger. Specifically we analyse six financial ratios (P/L for period, Profit margin, EBITDA, ROE, ROA and Gearing). Our results show that utility mergers are effective to create a more competitive firm because of the changes in the ownership of the company and consequently in the corporate governance system. Results also indicate that a listed merger company has a higher financial performance those pre-merger companies.

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