Corporate Governance Mechanisms on the Internal Relations Between Managers and Subordinates

The World ◽

Internal Relations ◽

Governance Models

The concept of governance is as old as human civilization. However, recently the usage of this term has increased multifarious. A broader concept of corporate governance involves a set of relationships amongst the organization's stakeholders. A stakeholder is any person, organization, social group, or society at large that has a stake in the business. Recognizing the importance of corporate governance, most of the countries in the world have developed their own corporate governance mechanism known as corporate governance models. The mechanism of corporate governance depends upon various indigenous factors such as legal framework, regulatory framework, the pattern of shareholding, breadth, and depth of financial markets.

PENGARUH MEKANISME CORPORATE GOVERNANCE DAN UKURAN PERUSAHAAN TERHADAP KINERJA KEUANGAN (Survei Pada Perusahaan Manufaktur yang terdaftar di BEI )

Jurnal Aplikasi Akuntansi ◽

10.29303/jaa.v2i2.16 ◽

2018 ◽

Vol 2 (2) ◽

pp. 010-031

Author(s):

Animah Animah ◽

Lukman Effendy ◽

Alamsyah M. Thahir ◽

Erna Widiastuty

Keyword(s):

Corporate Governance ◽

Financial Performance ◽

Firm Size ◽

Sampling Technique ◽

Partial Least Square ◽

Least Square ◽

Governance Mechanism ◽

Governance Mechanisms ◽

The purpose of this research is to examine the effect of corporate governance mechanisms, firm size of financial performance. The Population of this research is the company manufacturing in BEI. The sampling technique used is purposive sampling. The analytical tool used is using partial least square program. The independent variables in this research are corporate governance mechanism, firm size while the dependent variable is the performance of the financial. The result of the research shows that firm size influence to financial performance, while other variables such as corporate governance mechanisms have no effect negative to financial performance.

Corporate Governance and Its Implications on Accounting and Finance - Advances in Finance, Accounting, and Economics ◽

Corporate Governance in Islamic Banks

10.4018/978-1-7998-4852-3.ch015 ◽

2021 ◽

pp. 322-337

Author(s):

Sami Ben Mim ◽

Yosra Mbarki

Keyword(s):

Corporate Governance ◽

Board Of Directors ◽

Supervisory Board ◽

Islamic Banks ◽

Governance Mechanism ◽

Governance Mechanisms ◽

Transmission Channels ◽

The Board Of Directors ◽

This study investigates the efficiency of the Shariah supervisory board as a corporate governance mechanism in Islamic banks. The authors mainly seek to examine the effect of the Shariah board's composition (size and academic background of its members) on the performance of Islamic banks. They also try to highlight the transmission channels explaining this effect, and compare the efficiency of the Shariah board with that of traditional corporate governance mechanisms, namely the board of directors. The empirical investigation is based on a sample of 72 Islamic banks from 19 countries. Estimation results suggest that the Shariah board positively affects the Islamic banks performance through the number of Islamic Shariah scholars. This effect is mainly due to the size and cost transmission channels. These results are robust to different performance measures. On the other hand, results show that the board of directors' size produces a positive effect on a bank's performance, offering evidence for complementarity between traditional and Islamic governance mechanisms.

Corporate governance in practice: the role of practitioners' understanding in implementing compliance programs

Accounting Auditing & Accountability Journal ◽

10.1108/aaaj-08-2016-2685 ◽

2020 ◽

Vol 33 (4) ◽

pp. 887-911

Author(s):

Riccardo Stacchezzini ◽

Francesca Rossignoli ◽

Silvano Corbella

Keyword(s):

Corporate Governance ◽

Governance Mechanism ◽

Content Type ◽

Case Study Analysis ◽

Implementation Processes ◽

Compliance Programs ◽

Potential Benefits ◽

PurposeThis article investigates the implementation of a compliance programme (CP) in terms of how practitioners conceive of and execute the responsibilities arising from this corporate governance mechanism.Design/methodology/approachThis study involves a practice lens approach forms the case study analysis and interpretation, involving both interviews and documentary materials collected from an Italian company with prolonged compliance experience. Schatzki's (2002, 2010) practice organisation framework guides the interpretation of CP as a practice organised by rules, practical and general understandings and teleoaffective structures.FindingsCP practice evolves over time. A practical understanding of daily actions required to accomplish the CP and a general understanding of the responsibilities connected with the CP, such as the attitudes with which the CP is performed, are mutually constitutive and jointly favour this evolution. Dedicated artefacts – such as IT platforms, training seminars and compliance performance indicators – help spread both of these types of understanding. These artefacts also align practitioners' general understanding with the CP's teleoaffective structures imposed, including the CP's assigned objectives and the desired reactions to them.Research limitations/implicationsThe findings have theoretical and practical implications by revealing the relevance of practitioners' understanding of corporate governance mechanisms in their implementation processes.Originality/valueThis study reveals the potential benefits of practice lens approaches in corporate governance studies. It responds to the call for qualitative studies that demonstrate corporate governance as implemented in daily activities.

MEKANISME CORPORATE GOVERNANCE DAN MANAJEMEN LABA MODEL LONG TERM DISCRETIONARY ACCRUAL PADA PERUSAHAAN GO PUBLIK DI INDONESIA

Jurnal Manajemen Dayasaing ◽

10.23917/dayasaing.v21i1.7400 ◽

2019 ◽

Vol 21 (1) ◽

pp. 55-69

Author(s):

Wiyadi Wiyadi ◽

Rina Trisnawati ◽

Ecclisia Sulistyowati

Keyword(s):

Corporate Governance ◽

Earnings Management ◽

Institutional Investors ◽

Audit Committee ◽

Governance Mechanism ◽

Purposive Sampling ◽

Discretionary Accrual ◽

Penelitian ini bertujuan menganalisis pengaruh mekanisme corporate governanceinternal dan eksternal terhadap manajemen laba dengan pendekatan long termdiscretionary accrual perusahaan go publik di Indonesia yang tergabung dalamindeks LQ45 dan JII selama periode 2011-2015. Sampel penelitian berjumlah 226perusahaan diambil secara purposive sampling. Mekanisme CorporateGovernance terbagi menjadi: Mekanisme Corporate Governance internal daneksternal. Mekanisme Corporate Governance internal diproksikan dengan komiteaudit dan dewan komisaris independen. Sedangkan corporate governanceeksternal diproksikan dengan konsentrasi kepemilikan dan investor institusi.Metode analisis data menggunakan regresi linier berganda. Hasil penelitianmenunjukkan bahwa konsentrasi kepemilikan berpengaruh terhadap manajemenlaba. Sedangkan komite audit, dewan komisaris independen dan investor institusitidak berpengaruh terhadap manajemen laba.This study aims to analyze the influence of internal and external corporate governance mechanisms on earnings management with the long term discretionary accrual approach of companies incorporated in the LQ45 and JII indices during the period 2011-2015. The research sample was 226 companies taken by purposive sampling. The Corporate Governance mechanism is divided into: Internal and external Corporate Governance Mechanisms. The internal Corporate Governance mechanism is proxied by the audit committee and independent board of commissioners. While external corporate governance is proxied by the concentration of ownership and institutional investors. Methods of data analysis using multiple linear regression. The results showed that ownership concentration had an effect on earnings management. While the audit committee, independent board of commissioners and institutional investors have no effect on earnings management

The Role of Islamic Law in Convergence to Western Corporate Governance Features in Pakistan

Journal of Law & Social Studies ◽

10.52279/jlss.03.02.93103 ◽

2021 ◽

Vol 3 (2) ◽

pp. 93-103

Author(s):

Dr. Imtiaz Ahmed Khan

Keyword(s):

Corporate Governance ◽

Financial Crisis ◽

Islamic Law ◽

Good Governance ◽

Financial System ◽

Governance Mechanism ◽

The World ◽

Recent Financial Crisis

This article examines the role of Islamic Law in convergence to western corporate governance features in Pakistan. The recent financial crisis in the world highlighted the importance of good corporate governance features. This phenomenon highlighted the possibility of adopting an alternative to conventional financial system in Pakistan. Islamic finance has shown its presence in the wake of financial crisis in the world. Therefore, this articles analyses, in comparative perspective, the Islamic financial system viz a viz conventional financial system. It further analyses the possibility of convergence of corporate governance mechanism, which is key for good governance in any financial system, in Pakistan. It concludes that Islamic Financial System may be adopted as alternative financial system as well as corporate governance mechanism may be converged to western corporate governance features in Pakistan. However, while doing so Islamic norms may act as a litmus test which may not be as problematic as it appears at first sight.

PENGARUH MEKANISME ISLAMIC CORPORATE GOVERNANCE TERHADAP KINERJA BANK SYARIAH DI INDONESIA BERDASARKAN MAQASHID SYARIAH INDEKS

BISNIS : Jurnal Bisnis dan Manajemen Islam ◽

10.21043/bisnis.v6i1.3696 ◽

2018 ◽

Vol 6 (1) ◽

pp. 36

Author(s):

Anton Anton

Keyword(s):

Corporate Governance ◽

Supervisory Board ◽

Islamic Banks ◽

Governance Mechanism ◽

Governance Mechanisms ◽

Business Goals ◽

Rights And Interests

To be able to realize the business goals and social objectives of Islamic banks need to be supported by Islamic corporate governance mechanisms that protect the rights and interests of all stakeholders who are subject to the rules of sharia. The purpose of this study was to determine the effect of Islamic corporate governance mechanism variables on the performance of Islamic banks in Indonesia based on the maqashid sharia index. The results showed that the number and education of the Sharia Supervisory Board had a significant effect. While concurrent positions and meetings of the Sharia Supervisory Board have no significant effect on the performance of Islamic banks in Indonesia based on the maqashid sharia index.

Good corporate governance and earnings management in Indonesian initial public offerings

Corporate Ownership and Control ◽

10.22495/cocv13i4c4p5 ◽

2016 ◽

Vol 13 (4) ◽

pp. 558-565

Author(s):

Tatang Ary Gumanti ◽

Ari Sita Nastiti ◽

Ayu Retsi Lestari

Keyword(s):

Corporate Governance ◽

Earnings Management ◽

Initial Public Offerings ◽

Management Practices ◽

Governance Mechanism ◽

Public Offerings ◽

Listed Firms ◽

Good Corporate Governance ◽

This study investigates the relationship between corporate governance mechanisms and earnings management (as measured by discretionary current accruals) for Indonesian IPO firms. Previous studies have mainly focused on an examination of the effect of corporate governance on the earnings management of publicly traded firms, whilst this study examines newly listed firms. It employs a modified Jones model to measure earnings management as developed by Tykvova (2006). The hypothesis predicts that Indonesian IPO firms with good corporate governance will engage in less earnings management in the periods prior to the IPO year. The sample consists of 75 IPOs and the results show that the proportion of board of commissioners, public ownership, institutional ownership and managerial ownership constrain the extent of earnings management of IPO firms. This study contributes to the literature in showing that corporate governance mechanism is an important determinant in earnings management practices for Indonesian IPO firms.

PENGARUH CORPORATE GOVERNANCE MECHANISM TERHADAP NILAI PERUSAHAAN MELALUI PERTUMBUHAN, PROFITABILITAS DAN KEBIJAKAN DIVIDEN

EKUITAS (Jurnal Ekonomi dan Keuangan) ◽

10.24034/j25485024.y2015.v19.i1.1761 ◽

2017 ◽

Vol 19 (1) ◽

pp. 42

Author(s):

Muhamad Umar Mai

Keyword(s):

Corporate Governance ◽

Growth Effect ◽

Governance Mechanism ◽

Manufacturing Companies ◽

Governance Mechanisms ◽

Board Size ◽

Return On Equity ◽

Dividend Payments ◽

The purpose of this research is to analyze the influence of corporate governance mechanisms to the value of the firm through growth, profitability and dividend policy. The population of this study are all of manufacturing companies listed on the Indonesia Stock Exchange for the period of 2000-2012. The sampling method used in this study was purposive sampling, with the criteria that the company distributed cash dividends and have an independent member of the board of trustees. This study proves that the growth of the company affecting the profitability and the firmsvalue, despite the fact that the company reduced its dividend payments. Sobel’s test result shows that firm’s growth effect to firm value mediating by profitability significantly, represented by return on equity. Corporate governance mechanisms plays an important role in preventing unproductively growth of companies that have reached the stage of maturity. The intensification of the firms value, also influenced by its ability to increase the profitability and dividend payments. Institutional ownership and board size as a proxy for corporate governance mechanism plays an important part to encourage companies to improve their return on equity, while the independent board persuade companies to increase the dividend payments. In this study the board size variable has shown a very important role on the increase of profitability, dividend payments, and therealizations of the value of the company.

Corporate governance and investment efficiency in Indonesia: the moderating role of industry competition

Journal of Financial Reporting and Accounting ◽

10.1108/jfra-12-2020-0351 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Irenius Dwinanto Bimo ◽

Engelbertha Evrantine Silalahi ◽

Ni Luh Gde Lydia Kusumadewi

Keyword(s):

Corporate Governance ◽

Generalized Method Of Moments ◽

Investment Efficiency ◽

Governance Mechanism ◽

Content Type ◽

Industry Competition ◽

The Relationship

Purpose This study aims to analyse the effect of corporate governance on investment efficiency and the moderating impact of industry competition on the relationship between corporate governance and investment efficiency. Design/methodology/approach The research sample includes a total of 36 publicly listed companies assessed by the Indonesian Institute for Corporate Directorship from 2012 to 2018. Testing is performed on full sample and overinvestment and underinvestment subsamples. Additional testing is further carried out using the generalized method of moments to address endogeneity problems and a robustness test is performed to assess the estimated investment efficiency. Findings Corporate governance can increase investment efficiency and the effectiveness of corporate governance is found to drop when the level of industry competition is higher. Practical implications The results of the present study corroborate the suggestion that companies need to implement corporate governance mechanisms. Furthermore, designing a corporate governance mechanism requires the scrutiny of the external environment, including industry competition. Originality/value The present study adds the profitability factor in the calculation of investment efficiency levels. This study also considers external factors that can influence the effectiveness of corporate governance in determining investment efficiency.

Corporate Governance Models and Applications in Developing Economies - Advances in Human Resources Management and Organizational Development ◽

Equilibrium in Corporate Governance

10.4018/978-1-5225-9607-3.ch007 ◽

2020 ◽

pp. 114-132

Author(s):

Sonia Marcos ◽

Luis A. Castrillo

Keyword(s):

Developing Countries ◽

Corporate Governance ◽

Governance Mechanism ◽

Governance System ◽

Public Enforcement ◽

Legal Traditions ◽

Business Environments ◽

Governance Systems ◽

Corporate governance systems around the world are shaped by legal traditions, but the most important determinant of their effectiveness is law enforcement. Developing countries tend to have weak institutional structures and contracting environments. In this context, markets are inefficient and ownership concentration becomes the main corporate governance mechanism in order to protect property rights. How can developing countries design an optimal corporate governance system in their poor business environments? Corporate governance mechanisms are interdependent, and each country needs to search for a set of mechanisms in equilibrium—that is, an optimal combination of control and incentives—that solves its own agency problems. But another problem in developing countries is the lack of public enforcement. Just as internal mechanisms may substitute for ineffective external mechanisms, private initiatives may reinforce weak public enforcement.