An Overview of Corporate Governance and Innovation in Chinese IT and Manufacturing Listed Firms

This study introduces the current structure of corporate governance (ownership and board structure) and innovation in Chinese IT and manufacturing listed firms. It highlights the unique features and potential issues of corporate governance and innovation in the Chinese institutional environment. This chapter helps advance the understanding of ownership and board structures, as well as innovation in Chinese IT and manufacturing industries. It is hoped that this study will encourage more research to pursue this interesting research field.

Corporate Governance in Islamic Banks

This study investigates the efficiency of the Shariah supervisory board as a corporate governance mechanism in Islamic banks. The authors mainly seek to examine the effect of the Shariah board's composition (size and academic background of its members) on the performance of Islamic banks. They also try to highlight the transmission channels explaining this effect, and compare the efficiency of the Shariah board with that of traditional corporate governance mechanisms, namely the board of directors. The empirical investigation is based on a sample of 72 Islamic banks from 19 countries. Estimation results suggest that the Shariah board positively affects the Islamic banks performance through the number of Islamic Shariah scholars. This effect is mainly due to the size and cost transmission channels. These results are robust to different performance measures. On the other hand, results show that the board of directors' size produces a positive effect on a bank's performance, offering evidence for complementarity between traditional and Islamic governance mechanisms.

Corporate Governance and Cash Holdings

Corporate cash induces the opportunistic behavior of corporate managers that can create an agency problem. A corporate governance system controls the opportunistic behavior of managers and can affect the firm's policy on holding cash. This study explains how the aspects of corporate governance, country-level and firm-level governance, can affect the corporate policy on holding cash. First, the study provides the nature, definition, and importance of corporate cash holdings. Second, it outlines various motivations and theories behind holding corporate cash. Third, it explains the relation between firm-level governance and corporate cash holdings. Fourth, it focuses on the impact of firm-specific governance attributes on the level of corporate cash holdings. Fifth, it presents the relation between country-level governance and corporate cash holdings.

Effect of Ownership Structure on Firm Performance Evidence From Non-Financial Listed Firms

In modern organizations, there is a separation between ownership and control of the firm. On the lenses of agency theory, this study statistically examines the relationship between ownership structure (i.e., ownership concentration and owner identity) and firm performance of non-financial listed firms of Pakistan by taking firm-level control variables of size, age, liquidity, financial leverage, and growth of the firm. Secondary data is collected from annual reports of 65 non-financial listed firms for the year 2008 to 2012. The least-square dummy variable model followed by the random effect model has been employed to statistically determining the impact of ownership structure on firm performance. The results of the least square dummy variable model reveal that the ownership concentration has a significant positive impact on firm performance. The owner identity (such as dispersed, family, institutional, and government ownership) has a significant causal effect on firm performance as indicated from t and p values.

Financial Performance Analysis of Companies Registered on BIST Corporate Governance Index

The aim of this study is to measure the 2018 financial performance of 49 businesses that are registered in the Istanbul Stock Exchange Corporate Governance Index. Therefore, the financial performances of 49 businesses were compared to the ROA, ROE, ROS, and MV performance indicators that were determined for the measurement of financial performance. For comparison, first, the significance levels of the indicators were determined by the AHP method, and MV was determined to be the most important indicator. The PROMETHEE method was used to be able to financially compare the businesses, and Tüpraş Türkiye Petrol Rafinerileri A.Ş. (Tüpraş Turkey Petroleum Refineries Inc.) was the most successful corporate governance business within the specified time period. The least successful business is Pınar Su ve İçecek Sanayi ve Ticaret A.Ş. (Pınar Water and Drink Industry and Trade Inc).

The Role of IT Governance and Managing IT Investment on Firm Performance

Although the multifaceted effects of managing or governing IT have been taken into consideration in both practice and theoretical debate, the mechanism through which these bring firm performance is yet unclear and limited. Drawing on the resource-based theory and the process theory, this chapter aims to systematically review the antecedents of business-IT alignment on the firm performance context. The findings of this study show that the business-IT alignment is derived from IT governance practices and managing IT investment to achieve firm performance. This study proposes that the firm performance cannot be attained by merely investing in IT; instead, firms should focus on effective management of IT practices and strategically align their business and IT strategies.

The Audit Committee as Component of Corporate Governance

Recently, numerous financial scandals (WorldCom, Enron, Parmalat, eToys) have shown that plentiful companies produce manipulated financial information. Consequently, regulators have prescribed corporate governance structures to protect investors and to avoid fraudulent financial reporting which are likely to control managers and limit their opportunistic behavior. Thus, there has been much debate over the extent to which corporate governance is playing a crucial role in increasing financial reporting quality from the theoretical perspective of agency theory, signaling theory, and stakeholder theory. This chapter aims at scrutinizing the internal and external mechanisms of corporate governance mainly the audit committee in the Dutch context. Firstly, the authors expose the numerous corporate governance mechanisms. Secondly, they focus on the audit committee as the main component of corporate governance, and they present the theoretical background, the role, and the characteristics of audit committee. Eventually, they exhibit the regulatory background of the Dutch context of the audit committee.

The Effect of the Mandatory IFRS Adoption on Audit Fees in Malaysia

This study examines the effect of the mandatory IFRS adoption on audit fees in an emergent context, such as the case of Malaysia. Using a comprehensive dataset of all publicly-traded Malaysians companies, the authors quantify an economy-wide increase in the mean level of audit costs after the IFRS transition. The final sample consists of 204 companies listed on the stock exchange of Malaysia, and publishes their information on audit fees in their annual reports allowed on the site of the Malaysian scholarship (Boursa Malaysia). Empirical results suggest that there has been some increase in audit fees in Malaysia after the mandatory adoption of IFRS in 2012. But this increase is considered more or less significant because Malaysia adopted the IFRS voluntarily in 2006. To discuss this meaning, the authors added an additional test that makes the results more robust.

Board Structure and Voluntary Disclosure

This chapter investigates the impact of board structure on the voluntary disclosure level in a Tunisian context. It aims to analyse the relationship between the different boards of directors characteristics of 51 companies listed on the Tunisian Stock Exchange for the year 2010. The empirical results affirm that the board independence and the presence of institutional shareholders in the board have a positive and significant influence on the voluntary disclosure in the Tunisian annual reports. However, the other characteristics presented in the chapter do not have significant impact on voluntary disclosure. This study could be considered as an important extension of prior research investigating the impact of governance mechanisms on voluntary disclosure, particularly those related to the impact of the board directors. It should be noted that, contrary to prior research, this chapter considers both financial and non-financial firms. Also, few studies examined the ownership structure within the board. The findings have potential implications for countries' regulators.

The Role of Governance Attributes in Corporate Social Responsibility (CSR) Practices Evidence From Jordan

The importance of information disclosure is increasing for stakeholders, mainly the non-financial disclosure, and the primary objective of the current study is to investigate the impact of a set of governance attributes on the level of corporate social responsibility disclosure in the Jordanian context. The study sample consisted of 51 industrial companies listed during 2012 to 2017; a set of statistical analyzes were used, such as descriptive statistics and multiple regression. Empirical evidence shows that the board size and audit committee play a crucial role in the social responsibility disclosure, while other factors (board activity, board compensation, non-executive directors, and audit company type) have no effect on disclosure. The findings are expected to have potential effects on the capital market in Jordan in terms of focusing on the strengths that support the social responsibility disclosure and the development of guidelines that contribute to promoting a disclosure culture between the listed companies, which support government plans in achieving sustainability.