Junket Operation, Macao’s Growing Pains or Stimulants?

2019 ◽  
Author(s):  
Jieqi Guan ◽  
Ming Liu
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Negative Impact ◽  
Inspection System ◽  
Significant Drop ◽  
Gaming Industry ◽  
Growing Pains ◽  
Corporate Governance Quality ◽  
The Relationship

Two serious junket incidents happened in Macao in 2014 and 2015 which led to the significant drop in gross gaming revenue lasting for 27 consecutive months. Therefore, this paper intends to investigate the importance of junket operation towards gaming companies’ financial performance and also its interaction with the quality of corporate governance. This study uses regression analysis to investigate the relationships among corporate governance, financial performance, and junket promoters in Macao’s gaming industry as well as the differences between those relationships under different economic conditions. The result reflects that when economy is growing, the corporate governance quality of gaming operators shows a decreasing trend. Under the control of corporate governance, the gaming operators tend to cooperate with junket promoters in a positive manner. In contrast, without the interaction of corporate governance, the junket operation brings negative impact on casino income, especially during booming economic periods. The result is consistent with the actual commission percentage over casino revenue, corporate governance score, and EPS for gaming operators. The extant literature mainly focuses on the relationship between corporate governance and firm’s financial performance. In gaming sector, the importance of junket operation towards casino profit and its interaction with corporate governance leaves much to be explored in the related academia. This study not only fills in the research gap, but also provides constructive suggestions for Macao government to improve the gaming inspection system as well as the rules on junket operations.

Junket Operation: Macao’s Growing Pains or Stimulants?

2020 ◽  
Vol 13 (1) ◽  
pp. 23-42
Author(s):  
Jieqi Guan ◽  
Ming Liu ◽  
Yui-yip Lau
Keyword(s):  
Corporate Governance ◽  
Regression Analysis ◽  
Financial Performance ◽  
Negative Impact ◽  
Tourism Industry ◽  
Economic Conditions ◽  
Inspection System ◽  
Significant Drop ◽  
Growing Pains ◽  
Research Gap

Two serious junket incidents happened in Macao in 2014 and 2015 which led to the significant drop in gross gaming revenue lasting for 27 consecutive months. In this paper, we investigate the importance of junket operation towards gaming companies’ financial performance and the interaction between the performance of corporate governance and junket operation. This study uses regression analysis to examine the relationships among corporate governance, financial performance, and junket promoters in Macao’s gaming tourism industry as well as the differences between those relationships under different economic conditions. The resultsreflect that when economy is booming, the corporate governance performance of gaming operators shows a decreasing trend. Under the control of corporate governance, the gaming operators tend to cooperate with junket promoters in a positive manner. In contrast, the junket operation brings negative impact on casino incomewithout the interaction of corporate governance, especially during booming economic periods. The result is aligned with the actual commission percentage over casino revenue, corporate governance score, and EPS of gaming operators. In a gaming sector, the junket operation towards casino profit and its interaction with corporate governance still overlooked in the academic study. This study not only fills in the research gap, but also provides constructive suggestions for Macao government to optimize the gaming inspection system and the rules on junket operations.

scholarly journals The relationship between corporate governance and financial performance of small corporations in Australia

2014 ◽  
Vol 9 (2) ◽  
Author(s):  
Yongqiang Li ◽  
Anona Armstrong ◽  
Andrew Clarke
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Structural Equation ◽  
Small Firms ◽  
Negative Impact ◽  
Governance Mechanisms ◽  
Latent Constructs ◽  
Equation Modelling ◽  
Corporate Governance Mechanisms ◽  
The Relationship

This paper examines a widely explored but yet to be confirmed relationship between two latent constructs - corporate governance and financial performance of small corporations in Australia. Prior studies have either focused on larger organisations or isolated corporate governance mechanisms in small firms. However, few have examined how corporate governance mechanisms, as a bundle, relate to small corporations. This study fills this gap by empirically analysing the aforementioned relationship using Structural Equation Modelling (SEM). Based on 387 responses from small corporations, the results show that corporate governance bundles measured by the extant literature, has a negative impact on the financial performance of small corporations. The result calls for a stakeholder approach to the governance needs of small corporations.

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 Corporate governance and shareholder value in listed firms: An empirical analysis in five countries (France, Italy, Japan, UK, USA)

2013 ◽  
Vol 10 (3) ◽  
pp. 36-50 ◽  
Author(s):  
Barbara Monda ◽  
Marco Giorgino
Keyword(s):  
Corporate Governance ◽  
Firm Value ◽  
One Dimension ◽  
Four Dimensions ◽  
Listed Firms ◽  
Governance Systems ◽  
Governance Quality ◽  
Corporate Governance Quality ◽  
The Relationship

In this paper, we design a multi-dimensional index to measure the quality of Corporate Governance systems adopted by firms and use it to investigate the correlation between Corporate Governance quality and firm value. Unlike most studies that examine the relationship between only one dimension of Governance and firm value, we present a complex index (CGI) composed of 39 variables referable to four dimensions: Board, Remuneration, Shareholder Rights and Disclosure. By analysing a sample of 100 large companies listed on the main stock markets in five different countries over three years (2009-2011), we confirm the widespread hypothesis of the existence of a positive and statistically significant relationship between Corporate Governance, as measured by a subset of 12 variables, and firm value.

scholarly journals The importance of adopting principles of corporate governance for the quality of internal audit

2018 ◽  
Vol 12 (1) ◽  
pp. 1089-1101
Author(s):  
Fedaa Abd Almajid Sabbar ◽  
Zaid Yaseen Saud Al-Dulaimi ◽  
Talib Ghadhban Yaseen Alalawi ◽  
Arshed Makki Rashid
Keyword(s):  
Corporate Governance ◽  
Private Sector ◽  
Internal Audit ◽  
Financial Information ◽  
Internal Auditing ◽  
Private Companies ◽  
Economic Changes ◽  
Corporate Governance Quality ◽  
The Relationship

Abstract The topic of corporate governance and the quality of internal auditing have increased the importance in the light of fast economic changes. The financial systems of many of the world's largest companies face decreasing trust of the company's stakeholders and beneficiaries in the financial information they present. Iraq is considered one of the emerging countries in which the private sector suffers from the same problems as other international companies. At the same time, the indicators of financial and administrative corruption are increasing in the Iraqi economic and financial environments. The Iraqi environment requires the implementation of the principles of corporate governance, quality control and internal auditing. The aim of current study is to analyze the relationship and effects between the principles of corporate governance and the quality of the function of internal auditing in private companies in Iraq through statistical analysis of the survey data from a sample of internal audit managers and accountants. The recommendations presented aim to improve the quality of internal audit and support corporate governance to ensure the credibility of financial information disclosed in the financial statements by the executive departments in those companies, contributing to the decision-making process. The study reached several conclusions. The most important of these is that the effective and proper implementation of the principles of corporate governance in the private sector companies in Iraq will contribute to the improvement and development of the internal audit function in the company reflected positively on the performance, survival and continuity of corporate activity while safeguarding the interests of those involved.

scholarly journals Concentração de propriedade e qualidade da governança da empresa brasileira

2015 ◽  
Vol 13 (3) ◽  
pp. 438 ◽  
Author(s):  
Isac De Freitas Brandão ◽  
Vicente Lima Crisóstomo
Keyword(s):  
Corporate Governance ◽  
Good Governance ◽  
Generalized Method Of Moments ◽  
Ownership Concentration ◽  
Minority Shareholders ◽  
Governance Practices ◽  
Corporate Governance Quality ◽  
The Relationship ◽  
Negative Linear Relationship

The relationship between ownership concentration and corporate governance quality is analyzed in Brazil. Models are estimated by the system generalized method of moments (GMM) for a balanced panel of 85 companies in the period 2010-2013. The results indicate that the concentration of ownership has an adverse effect on the quality of corporate governance, as measured by an index based on 28 voluntary good governance practices. The negative linear relationship indicates that large shareholders are unfavorable to adoption of best corporate governance practices. Additionally, the negative quadratic relationship reinforces this result to high levels of concentration highlighting the possibility of expropriation of minority shareholders. Less ownership concentration favors the quality of corporate governance suggesting that the need for coalition to control decreases the power of the main shareholder, possibly helping to alleviate the conflict between controlling and minority shareholders under the principal-principal agency model theoretical framework.

IMPLEMENTASI KINERJA KEUANGAN TERHADAP NILAI SPIRITUALITAS PRIBADI

2012 ◽  
Vol 16 (3) ◽  
pp. 332
Author(s):  
Whedy Prasetyo
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Annual Report ◽  
Main Concern ◽  
Good Corporate Governance ◽  
Corporate Social ◽  
The Relationship ◽  
Personal Spirituality

Development of financial performance in the application of Good Corporate Governance and Corporate Social Responsibility which affects the values of honesty private individuals, in order to be able to run the accountability, value for money, fairness in financial management, transparency, control, and free of conflicts of interest (independence). The main concern in this study is focused on achieving value personal spirituality through the financial performance and capabilities of Good Corporate Governance (GCG) and Corporate Social Responsibility (CSR) in moderating the relationship with the financial performance of value personal spirituality. This study is a descriptive verifikatif. The unit of analysis in this study was 15 companies in Indonesia with a policy that has been applied through the concept since January of 2008 until now, with the support of the annual report of the company, the company's financial statements, company reports to the disclosure of Good Corporate Governance and Corporate Social Responsibility in the annual report. Overall reports published successively during the years 2008-2011. The results of this study indicate financial performance affects the value of personal spirituality, and for variable GCG obtained results that could moderate the relationship of financial performance to the value of personal spirituality. But for the disclosure of CSR variables obtained results can’t moderate the relationship with the financial performance of personal spirituality.

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