scholarly journals THE STRATEGIC ROLE PLAYED BY CORPORATE GOVERNANCE MECHANISMS IN ENHANCING SUSTAINABLE CORPORATE PERFOMANCE: A SURVEY OF COMMERCIAL BANKS IN KENYA

2017 ◽  
Vol 1 (2) ◽  
pp. 24
Author(s):  
Stephen Kariuki ◽  
Kefah Njenga ◽  
Dan Irungu
Keyword(s):  
Corporate Governance ◽  
Commercial Banks ◽  
Banking Sector ◽  
General Purpose ◽  
Commercial Banking ◽  
Independent Directors ◽  
Governance Mechanisms ◽  
Sustainable Performance ◽  
Corporate Governance Mechanisms ◽  
Strategic Role

Purpose: The general purpose of study was to establish the strategic role that corporate governance mechanisms play in the sustainable corporate performance of commercial banking sector in Kenya.Methodology: The study adopted a descriptive research design. The actual population was also the targeted population was 43 banks since the banks were all accessible. A total of 17 banks were used as an actual sample representing 37% of the total population. The researcher in this study used questionnaire as a data collection tool. The data collected was analyzed by use of both inferential and descriptive statistics.Results: Study findings indicated that, there was an insignificant relationship between percentage mean of independent directors, top 10 shareholding and ROA. In addition there was an insignificant relationship between board size, percentage mean of independent directors, top 10 shareholding and individual shareholding, and Customer satisfaction index.Unique contribution to theory, practice and policy: The study recommends that, commercial banks in Kenya should continue adhering to corporate governance requirements since it may have positively contributed to sustainable performance.

Corporate Governance Mechanisms in Commercial Banks of Nepal

2020 ◽  
Vol 9 (1) ◽  
pp. 120-134
Author(s):  
Ravindra Prasad Baral
Keyword(s):  
Corporate Governance ◽  
Financial Institutions ◽  
Commercial Banks ◽  
Banking Sector ◽  
System Stability ◽  
Governance Mechanisms ◽  
Corporate Governance Mechanisms ◽  
Governance Practices ◽  
Transparency And Disclosure ◽  
Director Independence

Corporate governance in banking sector has received great attention among policymakers, practitioners and academicians in Nepal due to governance failures in some financial institutions in recent period. This study attempts to examine the corporate governance mechanisms adopted by Nepalese commercial banks by using a panel data of 30 commercial banks from 2012 to 2016. The internal corporate governance mechanisms are board structure and composition, board committees, director independence, transparency and disclosure, director remuneration, and shareholders rights. The study employs ANOVA test to examine differences in corporate governance mechanisms among state-owned, joint venture, and domestic banks. The study findings reveal that the corporate governance practices in financial institutions of Nepal is somewhat satisfactory; however, significant improvements are required especially in case of state-owned banks and local private banks. In order to achieve the policy of government of Nepal to enhance financial system stability, one of the major areas for policy focus should be to promote enhancement of corporate governance standards in the financial institutions as the stability of the banking sector depends largely on corporate governance practices they adopt. Promoting director independence, improving transparency and disclosure, and enhancing shareholders’ right are found to be important for improving standard of corporate governance in Nepal.

scholarly journals Pengaruh Ukuran Perusahaan Dan Corporate Governance Terhadap Manajemen Laba Di Industri Perbankan Indonesia

2021 ◽  
Vol 9 (1) ◽  
pp. 111-120
Author(s):  
Karina Karina ◽  
Sutarti Sutarti
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Audit Committee ◽  
Banking Sector ◽  
Audit Quality ◽  
Stock Exchange ◽  
Governance Mechanisms ◽  
Audit Firm ◽  
Corporate Governance Mechanisms ◽  
Size Firm

The purpose of this research is to provide empirical evidence of the affect of ownership concetration, firms size, and corporate governance mechanisms on earnings management. Ownership concetration was measure by the biggest stock of individual or organization, firms size was measure by natural logaritma of net assets, and corporate governance mechanisms were measure by three variabels (composition of board of commisioner, audit quality were measure by industry specialize audit firm, and composition of audit committee). Earnings management was measure by discretionary accruals use Modified Jones Method. The population of this research is 41 companies in the banking sector which were listed in Indonesian Stock Exchange (IDX). The research data were collected from banking companies financial statement for the period of 2016 to 2018. Based on purposive sampling method. The reseacrh hypotesis were tested using multiple regression analysis. The results of this research show that firm size, firm of commissioner and proportion of commissioner have significant relationships with earnings management. Next, variables composition of board of commissioner, ownership concetration and specialize audit firm have no significant relationship with earnings management. Keywords: ownership concetration, firms size, corporate governance, earnings management

scholarly journals Corporate governance mechanisms and bank performance: evidence from the Greek banks during crisis period

2017 ◽  
Vol 14 (1) ◽  
pp. 160-172 ◽  
Author(s):  
Andreas G. Georgantopoulos ◽  
Ioannis Filos
Keyword(s):  
Corporate Governance ◽  
Fixed Effects ◽  
Positive Impact ◽  
Independent Directors ◽  
Bank Performance ◽  
Governance Mechanisms ◽  
Board Size ◽  
Corporate Governance Mechanisms ◽  
Greek Banks ◽  
The Impact

This paper is the first research attempt that investigates the impact of a large number of corporate governance mechanisms on the performance of Greek banks,employing widely accepted in the literature of corporate governance econometric models. Results indicate that system GMM models are more suitable methodological tools than pooledOLS and fixed effects models to address well-known econometric problems, such as endogeneity, simultaneity and unobserved heterogeneity of individual banks. The findings, as derived from the application of GMM models, imply that increasing the board size and the number of independent directors can both have positive impact on the performance of Greek banks, but only up to a certain point. Thus, bank efficiency will increase as board size and the proportion of independent directors grow up to a point where these relationships hit a maximum from which bank performance decreases. Our multi-model estimations failed to trace any significant contribution of the number of female and foreign directors on the performance of Greek banks. Finally, the dual appointment of a CEO as Chairman appears to affect negatively two out of four proxies of bank performance. Overall, the results provide support for the positive impact of corporate governance mechanisms on the performance of Greek banks. The significance of these findings increases, considering that the period under study (2008-2014) is marked by high market volatility and uncertainty due to the well-known debt crisis that plagues Greece since the beginning of 2008.

scholarly journals Emerging policies and the effectiveness of corporate governance mechanisms on earning quality

2020 ◽  
Vol 9 (3) ◽  
pp. 157-164
Author(s):  
Mohammed Mahdi Obaid ◽  
Muneer Rajab Amrah
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Gulf Cooperation Council ◽  
Independent Directors ◽  
Board Independence ◽  
Governance Mechanisms ◽  
Corporate Governance Mechanisms ◽  
Earning Quality ◽  
The Relationship

Current study review extant empirical researches on the relationship between CG and EQ. However, the scope of the reviewed studies was shown to vary, most studies on CG and EQ are specific in focus, with different studies focusing on specific aspects or measures of CG. This study evaluates the role of emerging policies and the effectiveness of corporate governance mechanisms on earning quality within a conceptual framework for the Gulf cooperation council. This study concludes that the majority of companies with big board size, higher board independence, and more frequent meetings have improved EQ. Also, the result indicates companies with big audit committee size, a larger number of independent directors, more audit committee meetings and more experts tend to have an increase in EQ. Finally, this review emerged as a framework suitable for assessing the level of EQ disclosed and the relationship between CG and EQ base on GCC policies.

scholarly journals Relationships of Corporate Governance Mechanisms and Financial Performance in Islamic Banks: a Meta-analysis

2014 ◽  
Vol 9 (1) ◽  
Author(s):  
Yongqiang Li ◽  
Anona Armstrong ◽  
Andrew Clarke
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Empirical Research ◽  
Ownership Structure ◽  
Meta Analysis ◽  
Supervisory Board ◽  
Independent Directors ◽  
Islamic Banks ◽  
Governance Mechanisms ◽  
Corporate Governance Mechanisms

Relationships between corporate governance mechanisms and the financial performance of Islamic banks have been researched extensively in prior empirical research. However, the results are mixed, mainly due to the heterogeneity of the samples used for the empirical investigations. This paper reports the results of a meta-analysis of the existing literature on governance mechanisms from which a framework was developed to guide the constructions of governance indices. The results showed that Islamic banks banks tend to have better financial performance if there was (1) a higher proportion of independent directors on the board; (2) the Shari”ah Supervisory Board was large and consisted of top scholars; (3)numerous directors; (4) the CEO was chairman; (5) auditing was enforced and (6) ownership structure was dispersed, reducing shareholding of directors, foreigners and institutional investors, while increasing family and governments’ shareholding. Managers’ shareholding was insignificant.

Determining factors of key audit matter disclosure in Thailand

2020 ◽  
Vol 32 (4) ◽  
pp. 563-584
Author(s):  
Suneerat Wuttichindanon ◽  
Panya Issarawornrawanich
Keyword(s):  
Corporate Governance ◽  
Southeast Asia ◽  
Audit Committee ◽  
Independent Directors ◽  
Governance Mechanisms ◽  
Content Type ◽  
Big 4 ◽  
Corporate Governance Mechanisms ◽  
Determining Factors

Purpose In Southeast Asia, auditors play a crucial role in the quality of financial reports. With the introduction of a new format of auditors’ report that requires disclosure of key audit matters (KAM), the disclosure practice of auditors is, thus, of great interest. Specifically, this study aims to investigate the factors that auditors take into consideration when issuing KAMs. Design/methodology/approach The research design is quantitative, with a focus on the number of KAM disclosures issued by auditors. As existing studies rely on the number of KAM disclosures in the analysis, this current research, thus, uses the quantity of KAM disclosures for comparison purposes. The analysis relies on secondary data and multiple regression analysis is used to establish the association between the number of KAM disclosures and three groups of determining factors, namely, auditor characteristics, corporate governance mechanisms and firm characteristics. Findings The significant determining factors of KAM disclosure include auditor’s litigation risk, firm complexity, profitability and industry type. Firms using a Big 4 audit firm, firms with many subsidiaries and firms in the technology, property and construction and finance industries have higher numbers of KAMs, while highly profitable firms issue lower numbers of KAMs. As for corporate governance mechanisms, the number of KAMs is significantly positively correlated with the number of independent directors (p < 0.10). Originality/value This research includes key corporate governance parties in the examination, including external auditors, independent directors and audit committees. The finding affirms the influence of Big 4 on KAM disclosure in Southeast Asia, while their roles are not significant in Western samples. The result also unearths the monitoring role of independent directors in KAM disclosure. The role of the audit committee in KAM disclosure is insignificant in Thai samples, while the committee role is statistically significant in the Western samples. Variations in the findings between this study and previous research could be attributed to differences in institutional settings between both regions.

Sign in / Sign up

Export Citation Format

Share Document