scholarly journals Capital Structure and Corporate Governance Mechanisms in Kuwait Stock Exchange (KSE)

2020 ◽  
Vol 12 (6) ◽  
pp. 38
Author(s):  
Mejbel Al-Saidi
Keyword(s):  
Corporate Governance ◽  
Capital Structure ◽  
Stock Exchange ◽  
Ownership Concentration ◽  
Government Ownership ◽  
Governance Mechanisms ◽  
Corporate Governance Mechanisms ◽  
Kuwait Stock Exchange ◽  
Corporate Capital Structure ◽  
The Impact

The study investigated the impact of corporate governance mechanisms on the corporate capital structure of the Kuwait Stock Exchange (KSE). Specifically, this study linked five corporate governance mechanisms—large shareholder ownership concentration, government ownership concentration, board size, board independence, and family directors—with capital structure for 81 non-financial listed firms between 2017 and 2018. The data indicated that only government ownership concentration and family directors affect capital structure.

scholarly journals Corporate Governance Mechanisms and Firm’s Performance: Evidence from Jordan

2020 ◽  
Vol 9 (2) ◽  
pp. 11
Author(s):  
Mohammad Abdullah Fayad Altawalbeh
Keyword(s):  
Corporate Governance ◽  
Stock Exchange ◽  
Board Members ◽  
Board Structure ◽  
Government Ownership ◽  
Governance Mechanisms ◽  
Financial Reports ◽  
Corporate Governance Mechanisms ◽  
Governance Practices ◽  
The Impact

The purpose of this study is to investigate the effect of corporate governance mechanisms on the firm’s performance. Corporate governance practices were divided into two groups; board structure and ownership structure. The sample of the study consists of 60 companies from industrial and service sectors that are listed on Amman stock exchange (ASE). Data was gathered manually through the annual financial reports for the period from 2012-2017 results in 366 year-observation. Stata statistical software was used to test the study hypotheses. The results revealed that board meetings frequency and government ownership positively and significantly impact the firm’s performance, these results suggest that board meetings frequency is considered an indicator of the board effectiveness that enhances decision making quality and thus the firm performance, the results suggest that government ownership is providing a helping hand that improves the firm’s performance. The findings also showed that board independence negatively and significantly impact the firm’s performance, this result suggests that independent board members do not guarantee to improve the performance of a firm, and it stays the firm’s responsibility to choose independent board members who are able to exercise effective oversight function for the purpose of enhancing the performance of a firm. This study contributes to the literature by providing empirical evidence from developing countries about the impact of corporate governance measures and practices on firms’ performance.

scholarly journals The influence of internal corporate governance mechanisms on capital structure decisions of Chinese listed firms

2017 ◽  
Vol 16 (4) ◽  
pp. 444-461 ◽  
Author(s):  
Agyenim Boateng ◽  
Huifen Cai ◽  
Daniel Borgia ◽  
Xiao Gang Bi ◽  
Franklin Nnaemeka Ngwu
Keyword(s):  
Corporate Governance ◽  
Capital Structure ◽  
Fixed Effects ◽  
The State ◽  
Ownership Concentration ◽  
Governance Mechanisms ◽  
Data Set ◽  
Content Type ◽  
Listed Firms ◽  
Corporate Governance Mechanisms

Purpose The purpose of this paper is to examine the effects of internal corporate governance mechanisms on the capital structure decisions of Chinese-listed firms. Design/methodology/approach Using a large and more recent data set consisting of 2,386 Chinese-listed firms over the period from 1998 to 2012, the authors use different statistical methods (OLS, fixed effects and system GMM) to analyse the effects of firm-specific and corporate governance influences on capital structure. Findings The authors find that the proportion of independent directors and ownership concentration exert significant influence on the level of Chinese long-term debt ratios after controlling for firm-specific determinants and split share reforms. Further analysis separating the sample of this paper into state-owned enterprises (SOEs) and privately owned enterprises (POEs) suggests that ownership concentration in the hands of the state leads to decrease in debt ratios. Research limitations/implications The finding implies that concentrated ownership in the hands of the state appears more efficient compared to their private counterparts in their monitoring role. Originality/value This paper extends prior literature, which has concentrated disproportionately on firm-specific influences on capital structure, to the effects of within-firm governance mechanisms on capital structure decisions. The paper contributes to the agency theory–capital structure discourse in an emerging country context where corporate governance system appears weak.

Corporate governance and fraudulent financial reporting

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Vahab Rostami ◽  
Leyla Rezaei
Keyword(s):  
Corporate Governance ◽  
Financial Reporting ◽  
Stock Exchange ◽  
Valuable Insight ◽  
Fraudulent Financial Reporting ◽  
Governance Mechanisms ◽  
Content Type ◽  
Corporate Governance Mechanisms ◽  
Financial Expertise ◽  
The Impact

Purpose This study aims to trace the impact of corporate governance and its mechanisms in preventing companies from turning to fraudulent financial reporting. Design/methodology/approach For this purpose, using the systematic elimination pattern, the information of 187 listed companies on the Tehran Stock Exchange over six years from 2013 to 2019 were collected, and the hypotheses were examined using a linear regression model. To measure fraudulent financial reporting, the adjusted model of Beneish (1999) was used to evaluate corporate governance. Its mechanisms based on nine corporate governance mechanisms, including board independence, board remuneration, CEO financial expertise, expertise in CEO industry, board financial expertise, board industry expertise, board effort, CEO duality and managerial ownership, have been examined. These mechanisms are calculated as a combined index of corporate governance. Findings The findings indicate that robust corporate governance significantly reduces companies’ intention toward fraudulent financial reporting. In the same way, a negative and significant relationship was observed between each of the nine corporate governance mechanisms, except for board compensation and fraudulent financial reporting. Originality/value This study’s findings provide valuable insight into the importance of strengthening companies to prevent companies’ managers from engaging in fraudulent financial reporting activities. Hence, it is suggested that professional references bodies more seriously follow the rules to dictate to companies for using and empowering their corporate governance.

scholarly journals Corporate Governance Mechanisms and Corporate Social Responsibility (CSR) in Kuwaiti Listed Firms

2020 ◽  
Vol 16 (8) ◽  
pp. 10
Author(s):  
Mejbel Al-Saidi
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Ownership Concentration ◽  
Governance Mechanisms ◽  
Board Size ◽  
Corporate Governance Mechanisms ◽  
Large Shareholders ◽  
Corporate Social ◽  
The Impact

Firms must maintain a balance between their performance and corporate social responsibility (CSR). This study examines the relationship between corporate governance mechanisms and the CSR of firms listed on the Kuwait Stock Exchange (KSE) within the framework of agency theory. Using a sample of 86 firms in 2019, this study explored five corporate governance mechanisms (i.e., ownership concentration by large shareholders, ownership concentration by government, board size, board independence, and family directors) and five control variables (i.e., debt, firm size, firm age, profitability, and industry type). The study used the index checklist to measure CSR and found that ownership concentration by large shareholders, ownership concentration by government, and board size affect a firm’s social responsibility while other variables have no impact. This study was the first to examine the impact of corporate governance mechanisms on corporate social responsibility in Kuwait after introducing the new corporate governance rules, and the findings will help Kuwait’s government, firms, and investors evaluate the current rules and improve CSR requirements.

scholarly journals The implications of ownership concentration for shareholder protection and strategic decision-making

2016 ◽  
Vol 61 (211) ◽  
pp. 69-98 ◽  
Author(s):  
Jelena Nikolic ◽  
Verica Babic
Keyword(s):  
Decision Making ◽  
Corporate Governance ◽  
Firm Strategy ◽  
Strategic Decision ◽  
Ownership Concentration ◽  
Strategic Decision Making ◽  
Governance Mechanisms ◽  
Shareholder Protection ◽  
Corporate Governance Mechanisms ◽  
The Impact

The purpose of corporate governance mechanisms is to prevent opportunistic behaviour by managers, in order to align the interests of owners and managers. Following from this, our research topic is the analysis of ownership concentration as an internal mechanism to protect the interests of shareholders. In the study of the interdependence between ownership concentration and shareholder protection, particular importance needs to be given to the relationship between ownership structure, the role of the board, and strategic decision-making. Starting from this interdependence, our research aim is to examine the impact of ownership concentration on the protection of shareholders? interests and the board?s responsibility for firm strategy. This paper presents the results of an empirical, pilot study in the Republic of Serbia. The research confirms the interdependence of corporate governance mechanisms and strategic decision-making. Our findings indicate that ownership concentration protects majority shareholder interests and leads to lower board responsibility for strategic decision-making.

scholarly journals The Impact of Corporate Governance Mechanisms on Compliance with IFRS and Financial Reporting Quality

2021 ◽  
pp. 57-79
Author(s):  
Cheng-Wen Lee Lee ◽  
Yi Tang Hu
Keyword(s):  
Corporate Governance ◽  
Financial Reporting ◽  
Audit Quality ◽  
Stock Exchange ◽  
Reporting Quality ◽  
Financial Reporting Quality ◽  
Governance Mechanisms ◽  
Corporate Governance Mechanisms ◽  
The Impact ◽  
Non Audit Services

The present study examines the impact of corporate governance mechanisms on compliance with IFRS and financial reporting quality, especially focusing on non-audit service and accountant’s tenure. The adoption of IFRS is launched in Taiwan since 2012. The study aims to investigate this issue using a sample of 3997 data gathered from listed companies traded on the Taiwan Stock Exchange and OTC over the period from 2012 up to 2019. The results show the evidence to support that the collective effect of non-audit services/accountant’s tenure on audit quality has changed to be more influential. This research findings also open valuable insights to regulators, stock markets, practitioners, and academicians in this issue. JEL classification numbers: D22, G32, M41. Keywords: IFRS, Non-audit services, Accountant’s tenure.

scholarly journals Corporate governance and conglomerate diversification strategy – evidence from Vietnam

2018 ◽  
Vol 13 (6) ◽  
pp. 1578-1596 ◽  
Author(s):  
Thi Xuan Trang Nguyen
Keyword(s):  
Corporate Governance ◽  
Stock Exchange ◽  
Board Composition ◽  
Governance Mechanisms ◽  
Content Type ◽  
Unrelated Diversification ◽  
Corporate Governance Mechanisms ◽  
Control Devices ◽  
Interest Alignment ◽  
The Relationship

Purpose The purpose of this paper is to examine the impact of internal corporate governance mechanisms, including interest alignment and control devices, on the unrelated diversification level in Vietnam. Additionally, the moderation of free cash flow (FCF) on these relationships is also tested. Design/methodology/approach The study is based on a balanced panel data set of 70 listed companies in both stock markets, Ho Chi Minh Stock Exchange and Hanoi Stock Exchange, in Vietnam for the years 2007–2014, which gives 560 observations in total. Findings The results show that if executive ownership for CEOs is increased, then the extent of diversification is likely to be reduced. However, the link between unrelated diversification level and executive stock option, another interest alignment device, cannot be confirmed. Among three control devices (level of blockholder ownership, board composition and separation of CEO and chairman positions), the study finds a positive connection between diversification and blockholder ownership, and statistically insignificant relations between the conglomerate diversification level and board composition, or CEO duality. Additionally, this study discovers a negative link between diversification and state ownership, although there is no evidence to support the change to the effect of each internal corporate governance mechanism on the diversification level of a firm between high and low FCF. Practical implications The research can be a useful reference not only for investors and managers but also for policy makers in Vietnam. This study explores the relationship among corporate governance, diversification and firm value in Vietnam, where the topics related to effectiveness of corporate governance mechanisms to public companies has been increasingly attractive to researchers since the default of Vietnam Shipbuilding Industry Group (Vinashin) happened in 2010 and the Circular No. 121/2012/TT-BTC on 26 July 2012 of the Vietnamese Ministry of Finance was issued with regulations on corporate governance applicable to listed firms in this country. Originality/value This research, first, enriches current literature on the relationship between corporate governance and firm diversification. It can be considered as a contribution to the related topic with an example of Vietnam, a developing country in Asia. Second, the research continues to prove non-unification in results showing the relationship between corporate governance and conglomerate diversification among different nations. Third, it provides a potential input for future research works on the moderation of FCF to the effects of corporate governance on diversification.

Sign in / Sign up

Export Citation Format

Share Document