scholarly journals CORPORATE GOVERNANCE AND FIRM PERFORMANCE: A STUDY ON MODERATING EFFECTS OF FIRM SIZE AND LEVERAGE ON THE RELATIONSHIP BETWEEN CORPORATE GOVERNANCE AND FIRM PERFORMANCE IN BANKING SECTOR OF PAKISTAN

2013 ◽  
Vol 01 (02) ◽  
pp. 40-46
Author(s):  
Irfah Sohail ◽  
Muhammad Bilal Saeed ◽  
Zeenat Murtaza
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Banking Sector ◽  
Governance Mechanism ◽  
Moderating Effects ◽  
Significant Relation ◽  
Return On Assets ◽  
Corporate Governance Mechanism ◽  
The Impact ◽  
The Relationship

The main purpose of this study is to examine the impact of the corporate governance mechanism on firm performance. The variable employed in this study to measure firm performance, is return on assets. The empirical results indicate that firm performance is in positive and significant relation to corporate governance. On the other hand, the relationship between firm performance and corporate governance is moderated by size of the firm where as the leverage does not play its role in moderating the relationship between the variables of interest of this study.

A critical review of relationship between corporate governance and firm performance: GCC banking sector perspective

2015 ◽  
Vol 15 (1) ◽  
pp. 18-30 ◽  
Author(s):  
Tamanna Abdul Rahman Dalwai ◽  
Rohaida Basiruddin ◽  
Siti Zaleha Abdul Rasid
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Banking Sector ◽  
Future Research ◽  
Governance Mechanism ◽  
Content Type ◽  
Conventional Banks ◽  
Relationship Of ◽  
The Impact ◽  
The Relationship

Purpose – The purpose of this paper is to evaluate existing studies on the relationship of corporate governance with firm performance in different regions and address the need for similar analysis for the Gulf Coperation Council (GCC) sector. The banking sector comprises the conventional and Islamic banks in the GCC sector and is important due to their ability to bring stability to this region. Existing studies that measure the relationship of GCC sector conventional banks and firm performance are limited. This study proposes a need for future research on corporate governance in the GCC region. Design/methodology/approach – This paper will review and analyze the different empirical and theoretical contributions in establishing the relationship between corporate governance and firm performance. Findings – This paper will create a focus for future research of measuring the impact of corporate governance mechanism on firm performance. The regulators will be encouraged to focus on more research studies for the GCC sector development in the field of corporate governance of the banking sector. Research limitations/implications – The existing studies are valid and practicable for the region under study, and the results need not be applicable for other business environments. In addition, the evolving business and economic environment have always brought about inconsistent conclusions; thus, the period of study can always give varied results. Practical implications – The analysis undertaken in this paper will address the literature gaps for the GCC banking sector and play an instrumental role for future studies by theoreticians and regulators. Originality/value – This paper identifies the literature gaps for the GCC region and analyses the most applicable existing studies that can be useful for the banking sector corporate governance improvement. This paper will create opportunities for the future researchers.

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 Impact of Corporate Governance index on Firm Performance: evidence from Pakistani manufacturing sector

2015 ◽  
Vol 5 (2) ◽  
pp. 1 ◽  
Author(s):  
Faisal Javaid ◽  
Abdul Saboor
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Capital Investment ◽  
Manufacturing Sector ◽  
Random Effect ◽  
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 manufacturing 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 Pengaruh Intellectual Capital dan Corporate Governance Terhadap Kinerja Bank di Indonesia

2019 ◽  
Vol 2 (1) ◽  
pp. 57
Author(s):  
Jadzil Baihaqi
Keyword(s):  
Corporate Governance ◽  
Intellectual Capital ◽  
Boards Of Directors ◽  
Audit Committee ◽  
Stock Exchange ◽  
Governance Mechanism ◽  
Moderation Effect ◽  
Corporate Governance Mechanism ◽  
The Impact ◽  
The Relationship

This study examines the impact of intellectual capital and corporate governance mechanism on banks’ performance both directly and also moderated effect. We used banks that were listed in the Indonesia Stock Exchange. The bank’s performance was measured by risk-based bank rating while intellectual capital was measured by the coefficient of VAICTM (Pulic, 1998). The corporate governance mechanism was measured based on the size of boards of directors, the composition of independent director, CEO remuneration, managerial ownership, the effectiveness of audit committee and ownership concentration. The result of the study shows that banks’ performance was positively influenced by intellectual capital. However, corporate governance mechanism did not influence the banks’ performance, while the moderation effect of corporate governance mechanism on the relationship between intellectual capital and banks’ performance was not confirmed.

scholarly journals BOARD STRUCTURE AND BANK PERFORMANCE: EVIDENCE FROM SERBIAN BANKING SECTOR

2020 ◽  
pp. 057
Author(s):  
Verica Babić ◽  
Jelena Nikolić ◽  
Marijana Simić
Keyword(s):  
Corporate Governance ◽  
Banking Sector ◽  
Bank Performance ◽  
Board Composition ◽  
Board Structure ◽  
Governance Mechanism ◽  
Board Size ◽  
Data Set ◽  
Corporate Governance Mechanism ◽  
The Impact

Traditional perspective relying on agency theory is based on the assumption that the board structure, as an internal corporate governance mechanism, determines board effectiveness and, therefore, financial performance. Board size, board composition and leadership structure are distinguished as relevant variables of the board structure. Since the results of previous empirical studies are often contradictory, examining the correlation between board structural characteristics and corporate performance is a relevant research question, particularly in banking sector. In order to improve effectiveness of internal corporate governance mechanism, and consequently bank performance, the main research objective is to identify the impact of the board size and the board composition on bank performance in the Republic of Serbia using the CAMELS model. We analyze this relation using Ordinary Least Squares regression analysis on balanced panel data-set of 54 observations. The paper contributes to recent research efforts by making conclusions on the effects of board structure on bank performance, in order to define recommendations for improving performance in banking sector. 

Do bank independency and diversification affect bank failures in Europe?

2019 ◽  
Vol 18 (3) ◽  
pp. 366-398
Author(s):  
Mehdi Mili ◽  
Anis Khayati ◽  
Amira Khouaja
Keyword(s):  
Corporate Governance ◽  
Bank Failure ◽  
Bank Failures ◽  
Governance Mechanism ◽  
Content Type ◽  
Failure Risk ◽  
Corporate Governance Mechanism ◽  
The Impact ◽  
The Relationship

Purpose Motivated by agency theory, this paper aims to explore the impact of bank diversification and bank independency on the likelihood of bank failure. The effects of corporate governance (ownership and board structures) are also examined. Design/methodology/approach Logistic regressions are used to explore the role of corporate governance on bank failure risk. This sample covers 608 banks from eight European countries. Findings The results suggest that the well-documented finding that diversification and bank independency may increase bank failure risk does not persist under strong corporate governance mechanism. Thus, to reduce the bank failure risk, diversification should be strongly monitored by the management to avoid excessive risk-taking by shareholders. Originality/value The approach used in this study differs from that used in previous studies from certain perspectives. First, unlike most previous studies that focused on the relationship between bank performance and bank diversification, the impact of income and asset diversification on bank failure is tested. Also, the impact of a combined effect of diversification and corporate governance variables on bank failure is tested. This allows the control for different ownership and board variables as factors that would potentially affect the likelihood of bank failure.

scholarly journals Real Earnings Management, Firm Performance, and Corporate Governance Mechanism

2021 ◽  
Vol 3 (2) ◽  
pp. 39-49
Author(s):  
Maria Stefani Osesoga ◽  
Rosita Suryaningsih ◽  
Febryanti Simon
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Earnings Management ◽  
Cash Flow ◽  
Stock Exchange ◽  
Real Earnings Management ◽  
Governance Mechanism ◽  
Discretionary Accrual ◽  
Corporate Governance Mechanism ◽  
The Impact

The purpose of this study is to analyze the impact of real earnings management on firm performance and the impact of corporate governance as an intervening variable in the relationship between real earnings management and firm performance. The object are companies include in Corporate Governance Perception Index during 2015-2019 and listed in Indonesia Stock Exchange (IDX) and analyzed by using path analysis method. Real earnings management has a significant effect on the firm performance. Furthermore, with corporate governance mechanism within the company, real earnings management significantly affect firm performance. This research is meaningful, but has limitations. The result cannot be generalizing because the sample only companies that listed in CGPI and IDX period 2015-2019. The research implication are as follows: top level management should be cautious about credit policy, cash flow from operation, discretionary expenditures, and production. Earnings management is one of variable that the most prevalent in recent studies but the proxy for earnings management in the recent studies used discretionary accrual. In this research, real earnings management is used to indicate earnings management which measured by abnormal cash flow from operation. Thus, it may provide some contribution to the literature.

Relationship of Corporate Governance with Firms Performance and Dividend Payout: A Literature Review

Think India ◽  
2018 ◽  
Vol 21 (2) ◽  
pp. 26-35
Author(s):  
Sushila Soriya ◽  
Narender Kumar
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Research Work ◽  
Future Research ◽  
Governance Mechanism ◽  
Research Papers ◽  
Dividend Payout ◽  
Corporate Governance Mechanism ◽  
Relationship Of ◽  
The Relationship

The present study aims to find the research gap between corporate governance, firm performance, and dividend payout through available literature and develop future scope of the study. The study reviewed 100 research papers covering time from 1995 to 2016. The papers were classified and analyzed based on various approaches. The review of literature indicates that research work on area of corporate governance has increased after 2007-08 crises. The study reveals that the relationship of different variables of corporate governance with dividend payout and firm performance are mixed in nature. It also indicates that different countries have different socio-economic, cultural, political, and legal dimensions that in turn affect the governance regulations of any country. Present study classifies, summarizes, and analyzes the past literature and provides a comprehensive review on corporate governance mechanism, which may be helpful for future research in same area.

Would Firm Performance be Better with Women Directors? Evidence from India

2019 ◽  
Vol 23 (2) ◽  
pp. 180-188 ◽  
Author(s):  
Pavana Jyothi ◽  
Jayasree Mangalagiri
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Regression Models ◽  
Gender Diversity ◽  
Women Directors ◽  
Return On Assets ◽  
Indian Context ◽  
Board Level ◽  
The Impact ◽  
The Relationship

The purpose of this article is to examine the impact of women directors on firm performance of Indian companies and to check the impact after controlling their firm-specific and corporate governance variables. Further, the study explores the impact of women directors on firm performance of group firms and standalone firms. Regression models used in the study reveal that women directors create a positive and significant impact on firm performance as measured by return on assets (ROA) and Tobin’s Q. Further, the study found that the relationship becomes stronger if a firm belongs to the business group. This article adds to the existing literature on gender diversity at the board level, by analysing the impact of women directors on firm performance in the Indian context. This study is the first to examine the aspect of gender diversity in the Indian context.

scholarly journals Corporate Governance and Firm Performance: An Analysis of Family and Non-family Controlled Firms

2011 ◽  
Vol 50 (1) ◽  
pp. 47-62 ◽  
Author(s):  
Qaiser Rafique Yasser
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Governance Structure ◽  
Jel Classification ◽  
Governance Mechanism ◽  
Governance Mechanisms ◽  
Corporate Governance Structure ◽  
Corporate Governance Mechanisms ◽  
Corporate Governance Mechanism ◽  
The Impact

The aim of this study is to scrutinise the impact of corporate governance mechanism on on the performance of family and non-family controlled firms in Pakistan. It has been found that a corporate governance structure influences the performance of both family and non-family controlled companies significantly. However all corporate governance mechanisms are not significant as the significant variables differ between family and non-family controlled companies. Thus, regulators need to be cautious in setting codes for different companies. JEL classification: G34, L21, L25 Keywords: Corporate Governance, Firm Performance

Sign in / Sign up

Export Citation Format

Share Document