Corporate Governance Mechanism on Financial Performance (Evidence from the Indonesia’s Listed State-owned Enterprises)

2021 ◽  
Vol 1 (1) ◽  
pp. 24-34
Author(s):  
Anak Agung Kompiyang Ratih Maldini ◽  
Pananda Pasaribu ◽  
Christian Haposan Pangaribuan
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Positive Impact ◽  
Stock Exchange ◽  
Governance Structure ◽  
Board Independence ◽  
Governance Mechanism ◽  
Good Corporate Governance ◽  
Corporate Governance Mechanism ◽  
The Impact

Objective – This study aims to find the impact of privatization, which proxied by good corporate governance toward the financial performance of SOEs in Indonesia. Methodology – This study used 16 privatized SOEs that are listed in Indonesia Stock Exchange and also 16 privatized non-SOEs as the comparison. The data is collected from the year 2014 to 2018 and analyzed by using multiple regression panel data. Findings – This study found that director size and board independence have a positive impact toward SOEs financial performance. The director size and board independences have a positive significant impact toward the SOEs financial performance while the privatized non-SOEs is not significantly affected Novelty – This study examines proper governance structure in SOEs and non-SOEs, thus providing new insights about good corporate governance regulation in the Indonesian context.

Enhancing Shareholder Value through Corporate Governance Mechanism in Saudi Arabia

2021 ◽  
Vol 39 (10) ◽  
Author(s):  
Hamid Ghazi Sulimany ◽  
Suresh Ramakrishnan ◽  
Ayman Bazhair ◽  
Salih Adam
Keyword(s):  
Corporate Governance ◽  
Saudi Arabia ◽  
Positive Impact ◽  
Stock Exchange ◽  
Shareholder Value ◽  
Share Price ◽  
Board Independence ◽  
Governance Mechanism ◽  
Corporate Governance Mechanism ◽  
The Impact

This study investigates the effect of corporate governance mechanism in relation to shareholder value in Saudi Arabia listed companies. In today’s business, shareholder value has a great concern to the company shareholders. Numerous studies have been investigated shareholder value but with inconsistent empirical evidence. The focus of this research is to examine the impact of corporate governance mechanism (board independence) on shareholder value measured by share price and dividend yield. This is an empirical paper which proposes to determine the extent of board independence on shareholder value in the perspective of Saudi Arabia. The current study employed pooling regression analysis to retailing sector companies in Saudi Stock Exchange (Tadawul) from 2010 to 2019. The research has found that the presence of non-executive directors on the corporate board enhanced shareholder value. Likewise, board independence has a significant positive impact on shareholder value. The proposed study has value for Saudi Arabia government, corporate boards, stock exchange, shareholders, and policy makers by highlighting the distinct impact on shareholder value and its relation on board independence.

scholarly journals The Effect of Good Corporate Governance Mechanism On The Financial Performance of Banking Companies Listed In Stock Exchange Indonesia 2012-2016

2019 ◽  
Vol 3 (2) ◽  
pp. 273-287
Author(s):  
Desi Pipian Pujakusum
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Board Of Directors ◽  
Audit Committee ◽  
Stock Exchange ◽  
Governance Mechanism ◽  
Return On Assets ◽  
Good Corporate Governance ◽  
The Board Of Directors ◽  
Corporate Governance Mechanism

This study aims to examine the effect of good corporate governance mechanism on the financial performance of banking companies listed on the Indonesian Stock Exchange 2012-2016 period. The corporate governance mechanism is proxied by the size of the board of directors, the size of the board of commissioners, audit committee size, the board of director's education, and the board of commissioner’s education. The company's financial performance is proxied by return on assets (ROA). Samples were taken by using purposive sampling. The total number of samples used in this study amounted to 180 research samples. This study was tested with SPSS 20 program. Data analysis technique used in this research is simple regression analysis.  The results showed that the size of the board of directors, the size of the board of commissioners, and audit comitee size have a significant effect on return on assets. These three factors have a significant effect on return on assets, while the board of commissioners education and the board of director's education have no significant effect on return on assets.

scholarly journals The Impact of Corporate Governance Mechanism over Financial Performance: Evidence from Romania

2021 ◽  
Vol 13 (19) ◽  
pp. 10494
Author(s):  
Tatiana Dănescu ◽  
Ioan-Ovidiu Spătăcean ◽  
Maria-Alexandra Popa ◽  
Carmen-Gabriela Sîrbu
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Intellectual Capital ◽  
Stock Exchange ◽  
Governance Mechanism ◽  
Specific Context ◽  
Business Sustainability ◽  
Earnings Per Share ◽  
Corporate Governance Mechanism ◽  
The Impact

In the context of the globalization and internationalization of economies, to efficiently attract financial and intellectual capital that is necessary for business sustainability, the mechanisms of corporate governance have to be based on gaining the trust of all the interested parties. These objectives require an organizational culture and a climate which is based on correctness, responsibility, transparency, and efficiency, in which ethical principles govern the spread of behaviors in the entire entity. This research identifies the relation between the corporate governance and the entities’ financial performance using the specific context of Romania. The findings of this study reveal new insights on the corporate governance and financial performance based on a sample of companies listed on the Bucharest Stock Exchange. The results show a positive correlation between the net accounting results, earnings per share, and the duality of the CEO, and a negative correlation between price per share and the duality of the CEO.

scholarly journals The Influence of Good Corporate Governance and Capital Structure on Firm Value: The Mediation Role of Financial Performance

2020 ◽  
Vol 35 (2) ◽  
pp. 230
Author(s):  
Ridwan Nurazi ◽  
Intan Zoraya ◽  
Akram Harmoni Wiardi
Keyword(s):  
Corporate Governance ◽  
Capital Structure ◽  
Financial Performance ◽  
Firm Value ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Multiple Linear Regression Analysis ◽  
Company Value ◽  
Good Corporate Governance ◽  
The Impact

<pre>The objective of this study is empirically identify the impacts of Good Corporate Governance and capital structure on firm value with financial performance as intervening variable. We operate quantitative approach within the scope of manufacturing company of metal, chemical, and plastic packaging sector which listed in Indonesia Stock Exchange during the 2017-2018 periods as the population. Samples are chosen by purposive sampling method inwhich the company must report the financial statement in a row, obtained 79 observations. The data analysis technique used is financial ratio analysis to determine the condition of the business financial ratios of the variables studied. Data were analyzed using multiple linear regression analysis. The result shows that corporate governance and capital structure influence the firm value, moreover the use of institutional ownership ratio and capital structure will increase the value of the firm. The result also shows that the impact of Corporate governance and capital structure on the company value are mediated by financial performance. It means that the value of the firm can increase if the company able became an effective monitoring tool.</pre>

scholarly journals The Value of Board Diversity in the Relationship of Corporate Governance and Investment Decisions of Pakistani Firms

2020 ◽  
Vol 6 (4) ◽  
pp. 146 ◽  
Author(s):  
Nauman Iqbal Mirza ◽  
Qaisar Ali Malik ◽  
Ch Kamran Mahmood
Keyword(s):  
Corporate Governance ◽  
Positive Impact ◽  
Stock Exchange ◽  
Panel Data Analysis ◽  
Investment Decisions ◽  
Board Independence ◽  
Board Size ◽  
Board Diversity ◽  
The Impact ◽  
The Relationship

Inspired by the studies on the impact of diversity among decision-making groups, this study was carried out to examine whether the diversity of the members of the board of directors, encompassing gender, nationality, education, and experience, moderates the relationship between the corporate governance and investment decisions of listed companies of the Pakistan Stock Exchange. Furthermore, the determinants of investment decisions in the context of Pakistani firms’ are also explored. Panel data analysis techniques are used to gauge the cause and effect relationship among the variables. We find short-term liquidity and profitability are the determinants of Pakistani firms’ investment decisions, both having adverse relationships. Moreover, we explore board independence, and chief executive officer (CEO) duality has a significant positive impact on investment decisions. We further find that experience diversity strongly moderates the relationship between board independence and board size with investment decisions in the opposite direction. Education diversity moderates the relation of board size and investment decisions in the same direction. Foreign directors’ presence on the board also significantly moderates the relationship between board independence and investment decisions. The results of this empirical study confirm that board diversity moderates the relationship between corporate governance and investment decisions.

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 Impact of Corporate Governance Mechanism in Mitigating Creative Accounting Practice of Listed Conglomerate Companies in Nigeria

2021 ◽  
pp. 39-50
Author(s):  
Abdulrahman Bala Sani ◽  
Ruth Oluwayemisi Owoade
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Board Independence ◽  
Managerial Ownership ◽  
Governance Mechanism ◽  
Board Size ◽  
Accounting Practice ◽  
Creative Accounting ◽  
Good Corporate Governance ◽  
Corporate Governance Mechanism

This study examined the impact of corporate governance mechanism in mitigating creative accounting practice of listed conglomerate companies in Nigeria. The study used Secondary data obtained from the company’s annual reports and accounts for the period 2013 to 2020. The population of the study includes six conglomerate companies listed on the Nigeria Stock Exchange and the entire population was used for the study. The dependent variable creative accounting was measured using discretionary accruals as estimated by modified Jones model. The independent variable corporate governance mechanism was proxied by audit committee, board size, board independence, managerial ownership. Multiple regression technique was employed for the panel data analysis using Stata version 13 statistical tools. Findings of the study revealed that audit committee has negative significant impact on creative accounting practice. Managerial ownership has significant positive impact on creative accounting practice. Board size and board independence has no significant impact on creative accounting practice of listed conglomerate companies in Nigeria. The study concludes that good corporate governance have impact on creative accounting practice. Based on these findings, the study recommends that companies are to effectively apply good corporate governance mechanism. They should have an independent audit committee, so as to minimize creative accounting practice.

scholarly journals The effect of good corporate governance mechanism and leverage on the level of accounting conservatism

2017 ◽  
Vol 6 (1) ◽  
pp. 67
Author(s):  
Habiba Habiba
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Stock Exchange ◽  
Accounting Conservatism ◽  
Managerial Ownership ◽  
Governance Mechanism ◽  
Manufacturing Companies ◽  
Comprehensive Income ◽  
Good Corporate Governance ◽  
Corporate Governance Mechanism

Accounting conservatism is a condition where a company acknowledges the debts and costs more quickly, but on the other hand, the company acknowledges the income and assets more slowly. Some factors that can affect the accounting conservatism are stan-dards changes, corporate governance, and so forth. The purpose of this study is to analyze the effect occurring on the variable of accounting conservatism when using comprehensive income and income for the current year in manufacturing companies listed on the Indonesian Stock Exchange in 2012 and 2013. The variables studied are institutional ownership, managerial ownership, the existence of audit committee, the number of audit committee meetings, and leverage. The statistical method used in this study is multiple regression analysis. The results of this study indicate that institu-tional ownership, managerial ownership, and the number of audit committee meetings do not have significant effect on accounting conservatism when using comprehensive income and income for the current year, but the variables of the existence of audit committee and leverage have significant effect on accounting conservatism when using comprehensive income and income for current the year.

scholarly journals Pengaruh Mekanisme Internal Corporate Governance Terhadap Pemilihan Auditor Eksternal

2020 ◽  
Vol 21 (2) ◽  
pp. 182
Author(s):  
Febrina Nafasati P ◽  
Dian Indu Dewi
Keyword(s):  
Corporate Governance ◽  
Stock Exchange ◽  
Governance Mechanism ◽  
Auditor Choice ◽  
Auditor Quality ◽  
Corporate Governance Mechanism ◽  
The Impact

<p><em>Internal Coporate Governance Mechanism influence for Auditor Choice. The research is to know of the impact of Internal Corporate Governance Mechanism on auditor choice by non-financial companies, where the proxies of Internal Corporate Governance Mechanism used are the largest shareholder, audit committee’s effectivenese, the number of board of commissioner and the proportion of independent commissioner. This study used Top 4-non Top 4 auditor segregation as a proxy of auditor quality that will be chosen by the company.</em></p><p><em>This study used Logistic Regresion and used 177 of non financial companies listed on the Indonesia Stock Exchange 2013. </em></p><p><em>The Result showed that there are significant of the number of board of commissioner and audit committee’s effectivenese on auditor choice by company. Therea are not significant of the largest shareholder and the proportion of independent commissioner on auditor choice by company.</em></p>

Sign in / Sign up

Export Citation Format

Share Document