scholarly journals How Are Company Size, Financial Performance and Corporate Governance Related to Directors' Remuneration?

2020 ◽  
Vol 11 (6) ◽  
pp. 12
Author(s):  
Norziana Lokman ◽  
Fattiadriati Mohd Tareh
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Financial Reporting ◽  
Pearson Correlation ◽  
Annual Reports ◽  
Company Size ◽  
Company Performance ◽  
Ceo Duality ◽  
The Relationship ◽  
A Company

This study examined the relationship between the company-specific characteristics, namely, company size, company performance, and company leverage and the corporate governance attributes of a company which includes CEO duality and remuneration committee independence as the predictor factors that determine directors’ remuneration. A sample of 260 public listed companies on Bursa Malaysia was selected using stratified random sampling for the financial reporting of 2018. All data concerning the company characteristics and corporate governance attributes were obtained from the annual reports of the companies, which can be accessed from the Bursa Malaysia website. Pearson correlation and multi-regression analysis were used to analyse the data to determine the relationship of the predictor variables with director remuneration. On the one hand, the results of the study showed that directors’ remuneration is positively and significantly related to the size of the company. On the other hand, the financial performance of a company is positively but weakly related to directors remuneration. The remaining predictors have no relationship with directors’ remuneration. The finding suggested that the key determinant factor of directors’ remuneration is company size whereas company performance may have a small impact. Lastly, company compliance with the recommendation of the Malaysian Code on Corporate Governance did not guarantee the effectiveness of the monitoring function of the remuneration committee in ensuring that directors’ remuneration is commensurate with company performance. The result of the study provides additional evidence and support that company size and financial performance are linked to director remuneration. Also the finding of the study reconfirmed prior study that board leadership structure (CEO duality) and remuneration committee independent have no impact on directors’ remuneration.

scholarly journals Corporate ethical reporting and financial performance: Evidence from the emerging market.

2017 ◽  
Vol 7 (4) ◽  
pp. 14-22
Author(s):  
Uwalomwa Uwuigbe ◽  
Jinadu Olugbenga ◽  
Olubukola Ranti Uwuigbe ◽  
Daramola Sunday Peters ◽  
Adegbola Otekunrin
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Ethical Issues ◽  
Emerging Market ◽  
Pearson Correlation ◽  
Least Square ◽  
Annual Reports ◽  
Listed Firms ◽  
The Impact ◽  
The Relationship

This paper examines the degree of comprehensiveness of ethical reporting in annual reports of listed firms in Nigeria. It also looks at the relationship between the extent of corporate ethical reporting and financial performance of the listed firms. In addition, it examines the impact of corporate governance on the financial performance of the listed firms. The study utilises the corporate annual reports for the period 2010-2014 as our main source of secondary data, while the content analysis technique is used to elicit data from the corporate annual report. In testing the research hypotheses, the study adopts the use of descriptive statistics, Pearson correlation and panel least square regression method to analyse the degree of comprehensiveness and the relationship between corporate ethical reporting and financial performance of the listed firms. Findings from the study show that there is lack of comprehensiveness of corporate ethical reporting in the selected industries. In addition, the study observed that a significant relationship exists between corporate ethical reporting and financial performance. Also, the study observed that the relationship between corporate governance and financial performance is not significant. The study recommends the need for a stand-alone report for corporate ethical issues in annual reports of companies in Nigeria.

Corporate governance and performance of medium-sized firms in Nigeria: does sustainability initiative matter?

2020 ◽  
Vol 20 (3) ◽  
pp. 401-427
Author(s):  
Babatunji Samuel Adedeji ◽  
Tze San Ong ◽  
Md Uzir Hossain Uzir ◽  
Abu Bakar Abdul Hamid
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Financial Reporting ◽  
Structural Equation ◽  
Negative Impact ◽  
Positive Impact ◽  
Mediating Effect ◽  
Content Type ◽  
And Performance ◽  
The Relationship

Purpose The non-existence of the corporate governance (CG) concept for practices by non-financial medium-sized firms (MSFs) in Nigeria informed. This study aims to determine whether CG practices influence firms’ performance and whether sustainability initiative (SI) mediates the relationship between CG and MSFs’ performance in Nigeria. Design/methodology/approach A total of 300 firms were selected on convenience sampling basis from South Western Nigeria using a structured questionnaire. The authors used Statistical Package for Social Sciences for exploratory data analysis and hypotheses were tested using covariance-based structural equation modelling. Findings The results show that CG has a significant positive effect on performance [financial performance (FNP) and non-financial performance (NFP)] and SI. SI has a mixed impact on performance, e.g. a significant positive impact on NFP but insignificant negative impact on FNP. Similarly, SI has a combined mediating effect in the relationship between CG and performance, e.g. fully mediates CG → NFP and does not mediate CG → FNP. Firms are to invest in social and environmental initiatives substantially. CG codes will complement the International Financial Reporting Standards for MSFs. Research limitations/implications This study supports the assumptions of theories (institutional, stakeholder and agency) as the basis for the usage of multiple approaches to determine the outcome of hypotheses, especially in developing climes. Practical implications The study contributes to CG and performance literature by examining the mediating effects of SI. The paper also shows the necessity to emphasise NFP aspect. Policymakers should evolve CG codes to encourage stakeholders to believe more in the corporate existence of MSFs for strengthening capital-base and quality personnel engagement. Originality/value To the best of the authors’ knowledge, this is one of the first empirical attempts showing the evidence on the relationship between CG and NFP in Nigeria.

scholarly journals The effect of industry nuances on the relationship between corporate governance and financial performance: Evidence from South African listed companies

2018 ◽  
Vol 21 (1) ◽  
Author(s):  
Jonty Tshipa ◽  
Leon M. Brummer ◽  
Hendrik Wolmarans ◽  
Elda Du Toit
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
South African ◽  
Resource Dependence ◽  
Stock Exchange ◽  
Listed Companies ◽  
Company Performance ◽  
Johannesburg Stock Exchange ◽  
Good Corporate Governance ◽  
The Relationship

Background: Premised on agency, resource dependence and stewardship theories, the study investigates empirically the existence of industry nuances in the relationship between corporate governance and financial performance of companies listed in the Johannesburg Stock Exchange. Aims: The main objective of the study is to understand the relationship between internal corporate governance and company performance from the perspective of three distinct economic periods, as well as industry nuances, cognisant of endogeneity issues. Setting: South Africa, as an emerging African market, offers an interesting research context in which the corporate governance and financial performance nexus can be examined empirically. Method: A sample of 90 companies from the five largest South African industries, covering a 13-year period from 2002 to 2014 (1170 firm-year observations) was examined with three estimation approaches. Results: Two key trends emerged from this study. First, the relationship between corporate governance and company performance differed from industry to industry. Second, the association between corporate governance and company performance also changes during steady and non-steady periods, which is an indication that the nexus is driven by the state of the global economy and the type of the industry. Conclusion: Evidence from the study suggests that companies should be allowed to optimise rather than maximise their corporate governance options. This finding questioned the approach of the recently published King IV Code of Good Corporate Governance, which requires Johannesburg Stock Exchange-listed companies to ‘apply and explain’ as opposed to ‘apply or explain’ as pronounced by King III Code of Good Corporate Governance.

scholarly journals Financial Leverage Determinants on the Financial Performance of a Company

2019 ◽  
Vol 8 (4) ◽  
pp. 11039-11042
Keyword(s):  
Financial Performance ◽  
Performance Assessment ◽  
Research Methodology ◽  
Financial Ratios ◽  
Annual Reports ◽  
Secondary Source ◽  
Financial Leverage ◽  
The Relationship ◽  
A Company ◽  
Source Of Information

The focus of the researchers is to examine the relationship between different financial leverage ratios like profitability, tangibility, growth and size to know the strength of the variables to justify financial performance of the company. The study is based on the secondary source of information collected from annual reports, websites, RBI bulletins, money control and CMIE reports. It is understood that the financial ratios are the strength of the financial performance assessment of a company for particular period of time which can be done through a well defined and designed research methodology basing on the facts and figures.

scholarly journals Analisis Faktor yang Mempengaruhi Kredibilitas Kinerja Perusahaan

2019 ◽  
Vol 28 (3) ◽  
pp. 1801
Author(s):  
Zaini Danu Brata ◽  
Maria M. Ratna Sari
Keyword(s):  
Corporate Governance ◽  
Ownership Structure ◽  
Stock Exchange ◽  
Sample Selection ◽  
Company Size ◽  
Company Performance ◽  
Good Corporate Governance ◽  
Research Population ◽  
A Company ◽  
Positive Effect

The purpose of this study is to determine the effect of the application of Good Corporate Governance, Ownership Structure, and Company Size on Company Performance. Several factors This study aims to determine the effect of Good Corporate Governance (CGPI) on the Performance of Companies listed on the IDX for the period 2013-2017. The research population is a company that is listed on the Indonesian stock exchange and at the same time follows the ranking of the Corporate Governance Perception Index with sample selection through a purposive sampling method. There are 55 companies that meet the criteria as research samples. The results show that Good Corporate Governance has a significant positive effect on company performance, Managerial Ownership has a positive and significant effect on company performance, Institutional Ownership does not have a positive and significant effect on Company Performance, Company Size positive and significant effect on Financial Performance. Keywords : Good corporate governance, ownership structure, company size, company performance.

scholarly journals Good Corporate Governance dan Kinerja Keuangan Perusahaan Perbankan di Bursa Efek Indonesia

2021 ◽  
Vol 31 (3) ◽  
pp. 524
Author(s):  
Putu Kevin Yudhia ◽  
A.A.G.P. Widanaputra
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Stock Exchange ◽  
Managerial Ownership ◽  
Return On Assets ◽  
Financial Condition ◽  
Good Corporate Governance ◽  
Analysis Technique ◽  
The Relationship ◽  
A Company

Financial performance is an achievement in a company that reflects a picture of the company's financial condition. Good Corporate Governance regulates the relationship between shareholders, directors and commissioners. The purpose of this study was to determine the effect of Good Corporate Governance on banking financial performance. This research was conducted in banking companies listed on the Indonesia Stock Exchange in the 2015-2017 period. The number of samples taken was 48 banking companies, with a purposive sampling method. The data analysis technique used is the classical assumption test and multiple linear regression test. The results of this study indicate that the board of commissioners has a negative and significant effect on financial performance. The results of this study indicate that managerial ownership has a positive and significant effect on financial performance. Keywords: Good Corporate Governance, Financial Performance, Return On Assets (ROA).

Determining characteristics of boards adopting Integrated Reporting

2018 ◽  
pp. 37-71 ◽  
Author(s):  
Simona Alfiero ◽  
Massimo Cane ◽  
Ruggiero Doronzo ◽  
Alfredo Esposito
Keyword(s):  
Corporate Governance ◽  
Financial Reporting ◽  
Positive Relationship ◽  
Company Performance ◽  
Communication Tool ◽  
Environmental Aspects ◽  
Integrated Reporting ◽  
Negative Effect ◽  
The Relationship ◽  
Corporate Information

Nowadays, companies and markets are increasingly international and growing numbers of stakeholders are affected by the economic, social and environmental aspects of business, resulting in significant changes in how corporate information is both perceived and published. Over the last few years, this new scenario has led to many company boards voluntarily adopting an accounting and company performance communication tool, known as Integrated Reporting, (IR) which is a single disclosure document that satisfies stakeholders' increasing need for communication. This study's objective is to contribute to existing literature on the relationship between financial reporting and corporate governance, investigating into whether certain characteristics of the board - including numbers, gender, nationality, average age - influence decisions to adopt IR or not. The analysis was carried out on a sample of 120 Italian companies in different sectors for the year 2014. These results showed a positive relationship between the decision to use IR and the size of the board and the presence of female boardmembers, whereas the presence of foreign and older boardmembers had a negative effect on adopting IR.

scholarly journals Good Corporate Governance, Corporate Value, Tax Avoidance and Financial Performance

2018 ◽  
Vol 6 (2) ◽  
pp. 71-82
Author(s):  
Nurma Risa
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Stock Exchange ◽  
Tax Avoidance ◽  
Corporate Value ◽  
Performance Practices ◽  
Good Corporate Governance ◽  
Relationship Of ◽  
The Relationship ◽  
A Company

If a company applies GCG practices it will have an impact on the value of the company. But the implementation of GCG alone is actually not enough to increase the value of the company, there are other things, namely the practice of tax avoidance and financial performance. This study aims to prove that tax avoidance and financial performance practices are intermediary variables in the relationship of GCG to corporate value. The sample of this study is companies that take the IICG survey and have CGPI scores, and are listed on the stock exchange in the period of 2012-2015. Path analysis is used as a method of data analysis. The results of the study show that the GCG practices influence the value of the company indirectly, but through the practice of tax avoidance and financial performance as intermediaries.

scholarly journals CEO compensation, corporate governance, and performance of listed platinum mines in South Africa

2016 ◽  
Vol 13 (2) ◽  
pp. 408-416
Author(s):  
Sam Ngwenya
Keyword(s):  
South Africa ◽  
Corporate Governance ◽  
Financial Performance ◽  
Executive Compensation ◽  
Significant Relationship ◽  
Ceo Compensation ◽  
Company Performance ◽  
Performance Variables ◽  
And Performance ◽  
The Relationship

Executive compensation has been studied extensively in the past three decades, yet the relationship between company performance and executive compensation continues to be a debated topic judging from the number of articles in academic literature. The main objective of this study was to determine the relationship between CEO compensation, corporate governance and financial performance of listed platinum mines in South Africa. The results of the study indicated no statistics significant relationship between CEO compensation and the financial performance variables ROE and ROA. The results also indicated a positive relationship between some corporate governance variables such as board size and proportion number of independent non-executive directors, but found no statistic significant relationship between CEO compensation and proportion number of female board members.

scholarly journals Sustainable business Islamic banks in Indonesia

Accounting ◽  
2021 ◽  
pp. 299-310
Author(s):  
Indra Siswanti ◽  
Yohanes Fery Cahaya
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Intellectual Capital ◽  
Secondary Data ◽  
Partial Least Square ◽  
Least Square ◽  
Annual Reports ◽  
Company Size ◽  
Islamic Banks ◽  
Sustainable Business

The purpose of this study is to create a sustainable business model of Islamic banks in Indonesia through financial and non-financial aspects with financial performance as a mediate variable. The study uses quantitative approach by collecting secondary data of Islamic Banks from financial statements and annual reports over the period 2010-2018. The population of this study is 9 (nine) Islamic banks and the sample of research uses the census method. Data processing methods uses Partial Least Square. The results of the study stated that corporate governance has a significant effect on financial performance, intellectual capital has a significant effect on financial performance and company size has a significant effect on financial performance, but corporate governance has no effect on sustainable business. In addition, intellectual capital has a significant effect on sustainable business but company size has no effect on sustainable business. Moreover, financial performance has a significant effect on sustainable business, financial performance mediated the effect of corporate governance on sustainable business, financial performance partially mediated the effect of intellectual capital on sustainable business and financial performance mediated the effect of company size on sustainable business.

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