scholarly journals The Relationship between Corporate Governance and Firm Performance: The Effect of Internal Audit and Enterprise Resource Planning (ERP)

2021 ◽  
Vol 10 (02) ◽  
pp. 56-76
Author(s):  
Amjaad I. Alsurayyi ◽  
Sulaiman A. Alsughayer
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Enterprise Resource Planning ◽  
Internal Audit ◽  
Resource Planning ◽  
The Relationship

scholarly journals Impact of Enhanced Enterprise Resource Planning (ERP) on Firm Performance through Green Supply Chain Management

2021 ◽  
Vol 13 (8) ◽  
pp. 4358
Author(s):  
Zeplin Jiwa Husada Tarigan ◽  
Hotlan Siagian ◽  
Ferry Jie
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Firm Performance ◽  
Enterprise Resource Planning ◽  
Resource Planning ◽  
Green Supply Chain Management ◽  
Green Supply Chain ◽  
Chain Management ◽  
Supplier Integration ◽  
Internal Integration

This study investigates the impact of enhanced enterprise resource planning (ERP) on firm performance through green supply chain management, supplier integration, and internal integration. The population is the manufacturer domiciled in East Java, Indonesia, which has implemented ERP and been certified by the International Organization for Standardization (ISO) in the environmental management system. Data collection used a questionnaire designed with the five-point Likert scale. Of 243 manufacturers, 150 questionnaires were distributed, and 135 questionnaires are considered valid for analysis. Data analysis used smart PLS software. The result indicated that all eight predetermined hypotheses were supported. Enhanced ERP affects supplier integration, internal integration, and green supply chain management. Internal integration affects green supply chain management and firm performance. Supplier integration affects green supply chain management and firm performance. Green supply chain management affects firm performance. An interesting finding is that green supply chain management, internal integration, and supplier integration mediate the effect of enhanced ERP on firm performance. This study’s novelty lies in the research model that analyzes the relationship between the four constructs simultaneously with the green supply chain management, internal integration, and supplier integration as a mediating variable. The research provides an insight for the manager on how to improve the firm performance in supply chain management. This study could also contribute to the current research in supply chain management.

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.

Corporate governance, globalization and firm performance in emerging economies

2018 ◽  
Vol 67 (8) ◽  
pp. 1310-1333 ◽  
Author(s):  
Neha Saini ◽  
Monica Singhania
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Panel Data ◽  
Foreign Capital ◽  
Good Governance ◽  
Foreign Ownership ◽  
Foreign Firms ◽  
Content Type ◽  
Governance Practices ◽  
The Relationship

PurposeThe purpose of this paper is to examine relationship between corporate governance (CG) and firm performance for a set of 255 foreign-funded firms in the form of foreign direct investment (FDI) and private equity (PE). The authors employ a wide range of CG measures including board size, meetings, board gender and foreign ownership which are used as the proxy of globalisation and control variables like firm age, leverage, firm size and capital expenditure to arrive at a conclusion.Design/methodology/approachPanel data set of 255 (187 companies funded by foreign capital in the form of FDI, and 68 companies having foreign capital in the form PE) companies listed on Bombay Stock Exchange, for the period of eight years (2008–2015) are analysed by using static (fixed and random effects) and dynamic (generalised method of moments (GMM)) panel data specifications to examine the relationship among CG, globalisation and firm performance.FindingsThe empirical results of static model indicate the relationship between CG and performance of foreign firms, which are not very strong in India. This is due to the fact that most of the firms are not following the guidelines and regulations strictly in the initial period of sample years. Diversity in board is found as an important variable in accessing firm performance. And the authors also found that foreign firms are very particular about the implementation of CG norms. The results of GMM model highlight the interaction term of foreign ownership with governance indicators. CG is having a positive and significant impact over performance, inferring that higher foreign ownership (in the form of FDI and PE) in firm leading to positive effect on profitability.Practical implicationsThe investor’s preference of financing a unit is guided by the performance of a firm. Investors are more inclined towards high-performing firms, and hence higher profitability leads to higher inflow of capital. The result indicates that higher accounting and market performance may be achieved by good governance practices, in turn, leading to reduced agency costs. Countries with high governance scores attract more of foreign capital. Similar to the best governed countries, the companies having good governance practices attract more foreign inflows in the form of capital.Originality/valueWhile previous literature considered a single measurement framework in the form of a CG index, the authors tried to incorporate a range of CG indicators to study the effect of globalisation and CG on firm performance. The authors segregated foreign-owned funds into two parts, especially FDI and PE. This paper examined heterogeneity in the form of FDI-funded and PE-funded firms, as no prior literature is available which has evaluated different sets of foreign funds simultaneously on CG.

The Empirical Evidence of Enterprise Resource Planning System Adoption and Implementation on Firm’s Performance Among Medium-sized Enterprises

2019 ◽  
pp. 097215091984975 ◽  
Author(s):  
Adejare Yusuff Aremu ◽  
Arfan Shahzad ◽  
Shahizan Hassan
Keyword(s):  
Enterprise Resource Planning ◽  
Structural Equation ◽  
Information Access ◽  
Resource Planning ◽  
Communication Process ◽  
Planning System ◽  
Future Research ◽  
Erp System ◽  
The Relationship

The objective of this study is to examine the mediating role of enterprise resource planning (ERP) system adoption on the relationship between performance of medium enterprises (PMEs) and organizational culture (OC), communication process (CP), organizational structure (OS), information technology readiness (ITR), technological change (TC), government policy (GP), information access (IA) and technology infrastructure support (TIS). This study also includes the role of top management support (TMS) as a moderating variable on the relationship between ERP and PME. This study proposes a theoretical framework based on theories such as resource-based view, contingency theory and diffusion of innovation. The data were collected from medium-sized enterprise (ME) organizations operating in South Western Nigeria. A total of 658 questionnaires were distributed to selected MEs and only 355 were returned and used for the analysis. The empirical data were analyzed using the Partial Least Squares Structural Equation Modelling (PLS-SEM). The results showed that CP, ERP, GP, IA, ITR, OC, OS, TC, TIS and TMS have significant direct relationships with the ERP and PME while GP is not significantly linked to ERP adoption. Moreover, IA, ITR, OC, OS and TC have no significant relationship with PME while ERP system adoption mediates the relationship between the CP, OC, OS, TC and TIS with PME. The findings showed that the presence of CP, OC, OS, TC and TIS will influence the PMEs in the adoption of ERP and confirmed that TMS plays an important role in moderating the relationship between ERP and PME. The findings provide important insights to CEO, managers, policymakers and researchers to help them understand the importance of using the ERP system to enhance the performance of medium-sized enterprise (PMSE) organizations. Limitation of the study is based on MEs only. In this light, future research can focus on the evolution of not only small enterprises but also large firms.

Can internal audit functions improve firm operational efficiency? Evidence from China

2020 ◽  
Vol 35 (8) ◽  
pp. 1167-1188
Author(s):  
Ying Chen ◽  
Bin Lin ◽  
Lizhen Lu ◽  
Gaoguang Zhou
Keyword(s):  
Corporate Governance ◽  
Internal Control ◽  
Internal Audit ◽  
Operational Efficiency ◽  
Alternative Measure ◽  
Maturity Model ◽  
Firm Level ◽  
Content Type ◽  
Internal Auditors ◽  
The Relationship

Purpose The purpose of this study is to examine the effects of internal audit function (IAF) quality on the operational efficiency of Chinese firms. Design/methodology/approach The authors use regression models with a sample of Chinese listed companies to test their research hypotheses. Findings The authors find that IAF quality is positively associated with firm operational efficiency. The result is unchanged after correcting for endogeneity via the instrumental variable method and using an alternative measure of firm operational efficiency. The authors show that IAF competence improves firm operational efficiency, but the relationship between IAF independence and firm operational efficiency is insignificant. Additionally, they find that IAF quality can only significantly improve firm operational efficiency in the presence of effective corporate governance at the firm level and strong institutions at the province level. Using path analysis, the authors find that an IAF can improve firm operational efficiency directly or indirectly by promoting firm internal control quality. Practical implications The findings of this study suggest the need for a balance between IAF competence and independence to achieve the goals of IAF. Additionally, the authors study suggests that the effectiveness of IAF is contingent on corporate governance and market-based institutions. Originality/value The study’s findings contribute to the burgeoning literature on the relationship between IAF and firm operational performance and deepen the authors’ understanding of the role of IAF in an emerging economy whose government plays a major role in promoting and enforcing internal audits. The study also empirically support the Internal Audit Governance Maturity Model proposed by the Institute of Internal Auditors.

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