Journal articles on the topic 'Governance variables'
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1
Polcyn, Jan. "The relation of social order to economic order in the concept of sustainable development." Problems of Economics and Law 1, no. 1 (January 2, 2019): 23–34. http://dx.doi.org/10.5604/01.3001.0012.8257.
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Aim of the study: The answer to the question whether and how variables describing the so-cial order affect - expressed in a synthetic measure - economic order. Material and methods: One of the important areas of scientific research on sustainable de-velopment includes factors affecting this development. As the nature of sustainable develop-ment is complex, it is necessary to examine various issues related to this development within four domains: environmental, economic, social and institutional-political. Mutual interactions between these governances are particularly interesting. Data for the analysis were obtained from the website of Eurostat. Variables were assigned to individual domains and divided into stimulants, nominants and destimulants based on the description of the variables provided by Eurostat. These data were used to determine the synthetic measure of economic governance and to select those groups of variables describing social governance that most completely de-scribe economic governance. Hellwig’s taxonomic measure was used to achieve this goal. Results: Total values for groups of variables relating to economic governance and total values for groups of variables relating to social governance were determined for 28 selected Europe-an countries based on observation conducted over successive ten years. These results were then subjected to the procedure of panel data modelling. A fixed effects model was then se-lected as the most appropriate model. Conclusions: The econometric model determined in the study describes economic govern-ance based on four groups of variables selected from among seven groups characterizing so-cial governance. The group of characteristics related to poverty and living conditions had the strongest positive impact on the direction of economic governance in the analysed period. The group of variables relating to consumption patterns and public health also had favourable ef-fects on the synthetic measure of economic governance. Two groups of variables: ‘demo-graphic changes’ and ‘public security’ had a negative impact on economic governance.
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Marrone, Arcangelo. "Corporate Governance Variables and Integrated Reporting." International Journal of Business and Management 15, no. 5 (April 10, 2020): 26. http://dx.doi.org/10.5539/ijbm.v15n5p26.
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Integrated reporting (IR) represents the last frontier of corporate disclosure. Its purpose is to provide information on an organization's strategy and its business model, performance and governance, offering a clear overview of the organization's capacity to create value. From an academic point of view, the focus on integrated reporting has grown significantly in recent years. However, an aspect still little explored is represented by the level of compliance of the integrated reports with the IIRC requirements. Among the few studies on the issue of the level of alignment of integrated reports with the IIRC framework, only two focused on identifying the determinants. This work aims to bridge this gap through the analysis of the effect of three characteristics of the board (size, average age, gender diversity) and one of the CEO (duality) on the level of compliance of integrated reports with the IIRC framework. The results show a significant and positive effect of board size and board gender diversity on the level of alignment of integrated reports with the IIRC framework. They also show a significant and negative effect of the CEO duality and a not significant effect of the board average age.
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Shulthoni, Moch, Siti Maria Wardayati, Ririn Irmadariyani, and Hendrawan Santosa Putra. "Variables Determinants of Social Performance And Islamic Banking and Conventional variable differentiator Social Performance Among Both Cases in Indonesia." International Journal of Social Sciences and Humanities Invention 5, no. 10 (November 8, 2018): 5060–65. http://dx.doi.org/10.18535/ijsshi/v5i10.09.
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This study aims to examine and analyze the effect of risk variables, governance, financial performance, capital structure, asset structure, intermediation and human capital functions on the social performance of sharia commercial banks and conventional commercial banks as well as to test and analyze the influence of risk variables, governance, financial performance, capital structure, asset structure, intermediation functions and human capital towards social differences in performance between conventional and sharia commercial banks. The type of research used in this study is explanatory research, roomates explains the influence of independent variables on the dependent variable and comparative research, the which is research that is used to explain variables that influence the differences in social performance of Islamic banks and conventional commercial banks. The Populations in this study are commercial banks (conventional) and Islamic public banks in Indonesia. The purposive sampling technique was used to Obtain samples items, namely commercial banks (conventional) and sharia commercial banks in Indonesia to publish audited financial reports, annual reports and Reviews those that corporate social responsibility reports submitted between 2013 - 2017. Technical Data analysis used multiple regression and discriminant analysis. The analysis in this study tested the hypothesis. Multiple regression is used to analyze variables that Affect the social performance of conventional commercial banks and Islamic commercial banks. While discriminant analysis is used to analyze what variables influence the social performance of conventional public commercial banks and Islamic banks in Indonesia. Based on the results of the analysis and discussion concluded that (a) the variables of governance, capital structure, asset structure of human capital, risk, intermediation function and financial performance have no significant effect on the social performance of sharia commercial banks; (B) risk and financial performance variables have a significant effect on the social performance of conventional commercial banks. While the variables of governance, capital structure, asset structure of human capital, and intermediation function have no significant effect on the social performance of conventional commercial banks and (c) the variables of risk and financial performance have a significant effect on the performance of social Distinguishing between commercial Islamic banks and conventional commercial banks. While the variables of governance, capital structure, asset structure of human capital, and intermediation function do not Significantly influence between social performance of commercial Islamic banks and conventional commercial banks.
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Akram, Aisha, Muhammad Omair, Huzaifa Ameen, Zohaib Khan Babar, and Jawwad Hassan Jaskani. "Variables affecting Corporate Governance in the Profitability of Banks in Pakistan." International Journal of Accounting and Financial Reporting 4, no. 2 (July 8, 2014): 66. http://dx.doi.org/10.5296/ijafr.v4i2.6080.
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Purpose: Understanding the issue of Corporate Governance requires to think beyond the Profit maximization for the firm. Corporate governance is the effective control of the issue regarding top management. Corporate governance is the major element of the present international business system. This research therefore investigates the connection between corporate governance and financial institutions profitability in Pakistan. Methodology: For this purpose a questionnaire is being adapted and responses are gathered from the executive body in banks of all the three divisions of Southern Punjab. Findings: The research found that good corporate governance is necessary for the profitability in banks. Limitation: The limitation of the study is that we had a small sample size due to the time constraint but it provides a research framework for future studies.
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S. Alsoboa, Sliman. "Exploring the Constructed Corporate Governance Index’s Effect on the Firm Performance and Firm Value: An Empirical Study on Service and Industrial Companies Listed in Amman Stock Exchange." European Scientific Journal, ESJ 12, no. 31 (November 30, 2016): 330. http://dx.doi.org/10.19044/esj.2016.v12n31p330.
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The purpose of this study is to investigate corporate governance’s quality for Shareholding Companies Listed on the Amman Stock Exchange; to see how corporate governance index (CGI) and firm performance and firm value are associated; and last but not the least is to check how CGI affects firm performance and firm value. A comprehensive CGI containing 112 points was constructed and analyzed for years 2010 and 2015. It reported that the Jordanian industrial and service companies have a good CGI during these two years. Pearson correlation has showed positive but weak relationships between CGI and all variables in the two years. Multiple regression analysis was performed to evaluate corporate governance index effects on the performance and the value of firm. The results did not support the hypotheses that CGI significantly affects these two variables. To reach to better corporate governance in Jordanian industrial and service companies, the Jordanian authorities might need to modify the inconsistence between laws and corporate governance rules.
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Lady Silvera, Dica, Achmad Hizazi, M. Syurya Hidayat, and Sri Rahayu. "Financial constraints and corporate governance as moderating variables for the determinants of tax avoidance." Investment Management and Financial Innovations 19, no. 1 (March 22, 2022): 274–86. http://dx.doi.org/10.21511/imfi.19(1).2022.21.
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The purpose of this study is to empirically investigate the effect of financial constraints and corporate governance as moderating variables on the determinants of tax avoidance, which includes foreign activity, corporate social responsibility, and political connections. All companies listed on the Indonesia Stock Exchange from 2017 to 2019 are the objects of this study. The panel data regression was used to address the research question. The findings show that foreign activity, corporate social responsibility, and political connections significantly affected tax avoidance with alpha 5%. The results also show that corporate governance can reduce the positive impact of foreign activity, corporate social responsibility, and political connection on tax avoidance with alpha 1%.Moreover, financial constraints may strengthen the positive impact of corporate social responsibility on tax avoidance with alpha 5%. The findings further provide empirical evidence about one of the strategies businesses use to conduct tax avoidance, notably foreign activity, corporate social responsibility, and political connection. Thus, companies that implement good corporate governance could reduce corporate tax avoidance acts, which can harm the company’s image and lead to a decrease in company value. This study discovered a new proxy for measuring financial constraints, as well as developments in the political connection.
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Narwal, Karam Pal, and Shweta Pathneja. "Effect of bank-specific and governance-specific variables on the productivity and profitability of banks." International Journal of Productivity and Performance Management 65, no. 8 (November 14, 2016): 1057–74. http://dx.doi.org/10.1108/ijppm-09-2015-0130.
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Purpose The purpose of this paper is to analyze the effect of bank-related variables and corporate governance-related variables on the productivity and profitability of public and private sector banks in India. Design/methodology/approach The Malmquist productivity index is applied to determine the productivity of different banks. Further, return on average assets is used as profitability of banks. The regression analysis is further used to assess the effect of different bank-related and governance-related variables on performance of banks. Findings Nearly all the bank-specific variables explain the productivity and profitability of banks but a weak relationship is observed between individual governance variables and performance variables. Two governance variables, i.e. board meetings and remuneration explicate the profitability of the public sector banks and only duality explains the profitability of the private sector banks. No significance is found between productivity and governance variables. Originality/value The study addresses the embryonic issue of corporate governance in the banking sector. The uniqueness of the paper lies in that no study has evaluated the effect of these variables on productivity and profitability of banks simultaneously.
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Lukason, Oliver, and Tiia Vissak. "Export behavior and corporate governance." Review of International Business and Strategy 30, no. 1 (January 15, 2020): 43–76. http://dx.doi.org/10.1108/ribs-07-2019-0097.
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Purpose This paper aims to study how firms’ export behavior is associated with their corporate governance. Design/methodology/approach This study uses whole population data of Estonian small and medium-sized enterprises: 9,530 exporters and 73,619 non-exporters. Several theory-driven corporate governance variables and exporting variables (based on previous studies) are used. Binary logistic regression is applied to study how exporters’ corporate governance differs from that of non-exporters. Eight additional continuous dependent variables are used to portray exporters’ internationalization with ordinary least squares regression. The robustness of the obtained base results is checked for younger/older and smaller/larger firms. Findings Having female board members did not lead to a higher likelihood of export activities. Experience – tenure’s length, board members’ age and other board memberships – provided mixed results. Having a larger board was associated with a higher export propensity and larger exports but a lower export share. A larger share of a chief executive officer’s shareholding was associated with lower export propensity, exporting less overall and activities on a smaller number of markets. The presence of a majority owner was associated with larger export share and export turnover, but more focus on the main export market. Firm age and size affected the results. Originality/value Previous studies about the interconnection of corporate governance and exporting have relied on varied theoretical explanations and limited sets of variables. This paper provides an extensive insight by using corporate governance variables emergent from various theoretical explanations accompanied by a large set of dependent exporting variables. The latter enables obtaining a more holistic view of the interconnection between the two phenomena.
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Musa, Hussam, Frederik Rech, Chen Yan, and Zdenka Musova. "The Deterioration of Financial Ratios During the Covid-19 Pandemic: Does Corporate Governance Matter?" Folia Oeconomica Stetinensia 22, no. 1 (June 1, 2022): 219–42. http://dx.doi.org/10.2478/foli-2022-0011.
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Abstract Research background: Corporate governance plays an important role in companies’ financial performance and its true importance and relevance are revealed during an economic shock, such as the COVID-19 pandemic. In the past, research regarding corporate governance and financial variables focused solely on performance variables such as Tobin’s Q and ROA. This assessment completely ignores that corporate governance principles have a broader implication on financial variables than only performance. Purpose: Our research aimed to determine whether companies with good corporate governance practices were more resilient during the COVID-19 pandemic, measured by the deterioration of various financial variables. Research methodology: To achieve the aim, in the empirical part of the article, information on companies’ corporate governance and financial variables was collected, and based on them, correlation, regression and scatter plot analyses were conducted. Results: Our correlation, regression, and scatter plot analyses revealed that on both group and individual company levels, companies with higher levels of corporate governance would have their financial variables deteriorate significantly more compared to companies with low levels of compliance. Novelty: This is the first publication on the given topic. While few publications are assessing the impact of the pandemic on companies using corporate governance, none of these publications have focused on financial variables.
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Benzeev, Rayna, Bradley Wilson, Megan Butler, Paulo Massoca, Karuna Paudel, Lauren Redmore, and Lucía Zarbá. "What’s governance got to do with it? Examining the relationship between governance and deforestation in the Brazilian Amazon." PLOS ONE 17, no. 6 (June 23, 2022): e0269729. http://dx.doi.org/10.1371/journal.pone.0269729.
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Deforestation continues at rapid rates despite global conservation efforts. Evidence suggests that governance may play a critical role in influencing deforestation, and while a number of studies have demonstrated a clear relationship between national-level governance and deforestation, much remains to be known about the relative importance of subnational governance to deforestation outcomes. With a focus on the Brazilian Amazon, this study aims to understand the relationship between governance and deforestation at the municipal level. Drawing on the World Bank Worldwide Governance Indicators (WGI) as a guiding conceptual framework, and incorporating the additional dimension of environmental governance, we identified a wide array of publicly available data sources related to governance indicators that we used to select relevant governance variables. We compiled a dataset of 22 municipal-level governance variables covering the 2005–2018 period for 457 municipalities in the Brazilian Amazon. Using an econometric approach, we tested the relationship between governance variables and deforestation rates in a fixed-effects panel regression analysis. We found that municipalities with increasing numbers of agricultural companies tended to have higher rates of deforestation, municipalities with an environmental fund tended to have lower rates of deforestation, and municipalities that had previously elected a female mayor tended to have lower rates of deforestation. These results add to the wider conversation on the role of local-level governance, revealing that certain governance variables may contribute to halting deforestation in the Brazilian Amazon.
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Widayawati, Eny, Moch Dzulkirom, and Ari Darmawan. "FACTORS AFFECTING VOLUNTARY DISCLOSURE WITH CORPORATE GOVERNANCE AS MODERATING VARIABLES." International Journal of Accounting and Business Society 28, no. 1 (April 1, 2020): 73–88. http://dx.doi.org/10.21776/ub.ijabs.2020.28.1.3.
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Purpose — The purpose of this research is to analyze and prove the influence of independent variables that are proxied by profitability, liquidity, firm size on voluntary disclosure, and moderated by corporate governance variables. Design/methodology/approach — The object of the research is the companies listed on the IDX from 2012 through 2016. This research uses a purposive sampling method involving 45 annual company reports and uses multiple regression and MRA (Moderated Regression Analysis) as a data analysis tool. Findings — The results of this research indicate that there is a significant positive effect between liquidity, firm size on voluntary disclosure, there is a significant negative effect between profitability and voluntary disclosure, and corporate governance moderates the relationship between profitability, liquidity, firm size, and voluntary disclosure. Practical Implications — Companies with high liquidity supported by good corporate governance will reduce voluntary disclosures due to the existence of independent commissioners whose positions are still less influential with the board of commissioners and board of directors, in the other hand, companies with low profitability supported by good corporate governance encourage managers to disclose company information more broadly to convince all stakeholders concerned. Originality/value —
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Khan, Bushra, André Nijhof, Rosalien A. Diepeveen, and Daniëlle A. M. Melis. "Does good corporate governance lead to better firm performance? Strategic lessons from a structured literature review." Corporate Ownership and Control 15, no. 4 (2018): 73–85. http://dx.doi.org/10.22495/cocv15i4art7.
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The objective of this paper is to disclose proven relationships between good corporate governance variables and the financial and/or non-financial performance of companies based on a meta-analysis of relevant studies. A meta-analysis was performed by means of academic research published between 2006 and 2016 in the five highest-ranked academic journals according to the Association of Business Schools (ABS) ranking. The relevant academic studies were selected on the basis of the relationship between corporate governance and performance. Our study provides evidence for the correlation between five corporate governance variables (board independence, board diversity, CEO characteristics, remuneration and oversight) and company performance. Furthermore, several mediating and moderating factors influencing the relationship between corporate governance variables and company performance were identified in this meta-study. The overview of corporate governance variables and their relation to company performance serves as input for a better understanding of this relationship and subsequently the ongoing dialogue on enhancing corporate governance in practice.
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Garzarelli, Giampaolo, Yasmina Rim Limam, and Stefania P. S. Rossi. "Public Governance and Productive Efficiency in Sub–Saharan Africa." Journal of Public Finance and Public Choice 32, no. 1 (April 1, 2014): 99–112. http://dx.doi.org/10.1332/251569214x15664520275057.
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Abstract Do economic variables operate through the channel of public governance to impact technical (or productive) efficiency in Sub Saharan Africa? We present different stochastic frontier models where technical efficiency is a relation between three economic variables, education, government spending, and trade openness, and three public governance variables, government effectiveness, political stability, and regulatory quality. In all cases, education operates through public governance to improve efficiency while government spending does not.
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Bolívar, Manuel Pedro Rodríguez, and Albert J. Meijer. "Smart Governance." Social Science Computer Review 34, no. 6 (August 3, 2016): 673–92. http://dx.doi.org/10.1177/0894439315611088.
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The attention for Smart governance, a key aspect of Smart cities, is growing, but our conceptual understanding of it is still limited. This article fills this gap in our understanding by exploring the concept of Smart governance both theoretically and empirically and developing a research model of Smart governance. On the basis of a systematic review of the literature defining elements, aspired outcomes and implementation strategies are identified as key dimensions of Smart governance. Inductively, we identify various categories within these variables. The key dimensions were presented to a sample of representatives of European local governments to investigate the dominant perceptions of practitioners and to refine the categories. Our study results in a model for research into the implementation strategies, Smart governance arrangements, and outcomes of Smart governance.
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Moldovan, Darie, and Mircea Moca. "A Clustering Of Listed Companies Considering Corporate Governance And Financial Variables." International conference KNOWLEDGE-BASED ORGANIZATION 21, no. 2 (June 1, 2015): 338–43. http://dx.doi.org/10.1515/kbo-2015-0056.
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Abstract The corporate governance quality has always been a decision criterion for investments, many recent studies trying to define metrics in order to help investors in their decision process. In this paper we investigate whether the clustering of companies’ information concerning their corporate governance politics and financial information could be mapped with the help of clustering. Our approach is to build clusters using machine learning techniques, based on corporate governance and financial variables from a number of 1400 listed companies. We evaluate the obtained clusters by matching them with the classes of two well-known indicators (Tobin’s Q and Altman Z-score), used to estimate the companies’ performance. We obtain partial matches of the benchmark variables and we compare the performances of the used algorithms.
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Castellini, Monia, and Otuo Serebour Agyemang. "Ownership and board structures to ensuring effective corporate governance through ownership and board control systems." Corporate Ownership and Control 9, no. 2 (2012): 343–54. http://dx.doi.org/10.22495/cocv9i2c3art4.
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In order to promote accountability, probity and transparency, corporations must indulge in good corporate governance practices. This paper reviews extant literature on corporate governance; construct a framework that links corporate governance mechanisms to good corporate governance through board and ownership control systems and thereafter, develops a testable proposition. It also indicates ways in which the various variables in the framework can be measured. The principal recommendation is since most of the variables in the framework cannot be measured quantitatively, this paper recommends corporate governance investigators to adhere to qualitative research approach.
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Ahmed, Ibrahim Anyass. "Capital Structure, Ownership Structure and Corporate Governance of SMEs in Ghana." JABM JOURNAL of ACCOUNTING - BUSINESS & MANAGEMENT 26, no. 01 (April 29, 2019): 45. http://dx.doi.org/10.31966/jabminternational.v26i01.397.
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The purpose of this paper is to investigate the relationship between three variables; capital structure, ownership structure and corporate governance. Although these issues have been largely researched, less attention has been focused on small and medium enterprises (SMEs). At the time of this study, evidence was not found for a study analyzing all three variables in relation to SMEs, within the context of a developing country. This current study examines the link between capital structure, ownership structure, and corporate governance. Using an appropriate regression model, the study assesses how governance mechanisms and ownership decisions affect the choice of financing SMEs. The results show a positive relationship for all corporate governance variables except for board size. Ownership structure is found to be positive and significantly related to capital structure. The signs indicated by control variables are those which are in consonance with conventional capital structure literature. Generally, ownership and corporate governance are found to affect the financing mix of SMEs in Ghana.
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Aseh, Khairi, and P. Ravindran Pathmanathan. "The Outcomes of Corporate Governance to Financial Performance: Empirical Evidence from a Developing Country." Archives of Business Research 8, no. 11 (November 21, 2020): 87–93. http://dx.doi.org/10.14738/abr.811.9273.
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Corporate governance has received increasing attention in the corporate world in these days. It is seen as a moral obligation and includes supporting the consistency of the law and showing ethical guidance. In this study, we attempted to examine the impact of corporate governance on corporate financial performance in Kuala Lumpur using a sample of 215 companies.Corporate governance variables have been shown to have a significant impact on corporate financial performance and market value measurement in general. The makeup of the board had a major positive impact on the ROA assessment variables, respectively. In addition, the CEO duality was positively correlated with all dependent variables, and the number of board committees was found to be negatively correlated with all measured variables, only significantly correlated with ROA.
KEYWORDS: Corporate governance, financial performance, Kuala Lumpur
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Fatima, Areeba, Noreen Safdar, and Naureen Afzal. "Role of Governance, Trade, and Tourism in Foreign Direct Investment in Pakistan." Review of Education, Administration & Law 5, no. 3 (September 30, 2022): 319–29. http://dx.doi.org/10.47067/real.v5i3.241.
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The Primal objective of this research is to reveal the role of governance, tourism, and trade in the stimulation of FDI inflows in Pakistan. These forces have been integrated for empirical methodology after a detailed examination of past studies. The study took data set for selected variables from World Development Indicators (WDI) and World governance indicators (WGI) for the past two decades (2000-2021). Except for governance, tourism, and trade, this research incorporates macroeconomic stability and financial development as the stimulators of FDI inflows in Pakistan. In statistical data estimation, after using the ADF test, the ARDL technique is applied based on the variable's cointegration order. Both short and long-run estimates of ARDL confirmed the statistical significance of all studied variables that are governance (GOVEF), tourism (LTRSM), trade (TD), gross savings (GS), and broad money (BM). Bound test and CUSUM disclosed that there is long-run cointegration and the examined model is statistically significant and stable. Overall findings disclosed that GOVEF and trade are positively correlated, while LTRSM confirmed a negative association with FDI inflows for the case of Pakistan.
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Pereira, Adalmiro Andrade, and Ângela Vaz. "Corporate Governance and banking performance in Portugal: The impact of variable - RAC_IMP (Impairments)." Journal of Information Systems Engineering and Management 7, no. 4 (October 18, 2022): 18121. http://dx.doi.org/10.55267/iadt.07.12548.
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Effective corporate governance practices are essential to achieving and maintaining societal trust in the banking system, which is essential for the smooth functioning of the financial sector and the economy.<br /> Much of the literature associated with Corporate Governance considers, in addition to concepts, the implementation cycle and the corresponding models. Corporate Governance cycles are related to corporate bankruptcies and the negligence of the board of directors, which are more common when a long period of economic expansion is followed by a period of crisis, which demonstrates failures in Corporate Governance. The main objective of the research is to analyze the impact of variables associated with governance, structure, and economy on the economic and financial performance of banking institutions in Portugal. In the model, a risk measure is used to determine whether Corporate Governance has an impact on a bank's risk-taking, the Impairment Ratio for Credit to Customers in relation to Assets.<br /> After performing the significance test for each of the variables (student t test), it is possible to determine that the following variables will be excluded: Bank Size (LNAT), Customer Deposits (LNDEP), Interest Rate (TXJUR). We accept the following variables Corporate Governance (CG); Financial Autonomy (CPAT); Return on Average Assets (ROAA); GDP Rate Variation (TXPIB) and Inflation Rate (TXINF).
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Rahmayuni, Siti, and Ardi Paminto. "Corporate Governance and Macroeconomics on The Financial Stability of Islamic Banks." IJEBD (International Journal of Entrepreneurship and Business Development) 4, no. 4 (July 31, 2021): 510–15. http://dx.doi.org/10.29138/ijebd.v4i4.1417.
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Purpose: This study discusses the influence of Corporate Governance and macroeconomics on financial stability in the Islamic banking sector.
Design/methodology/approach: This study employed a quantitative and Data analysis uses panel data regression.
Findings: while the independent variable in this study is Corporate Governance and Macroeconomics, with the results showing that Corporate Governance and macroeconomics have no partial effect..
Research limitations/implications: There are only two variables considered in this paper: corporate governance and macroeconomic.
Practical implications: partially corporate governance has no effect and macroeconomics has a negative effect.
Originality/value: TThis study calculates and finds out the truth of corporate governance and macroeconomic variables on financial stability.
Paper type: Research Paper
Keyword: Corporate Governance, Macroeconomics, Financial Stability, Inflation
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Nourayi, Mahmoud M., Lawrence Kalbers, and Frank P. Daroca. "The Impact Of Corporate Governance And The Sarbanes-Oxley Act On CEO Compensation." Journal of Applied Business Research (JABR) 28, no. 3 (April 30, 2012): 463. http://dx.doi.org/10.19030/jabr.v28i3.6962.
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This paper examines the effects of corporate governance on CEO compensation in light of regulatory controls introduced by the Sarbanes-Oxley Act of 2002 (SOX). The influence of economic and corporate governance variables on incentive-based CEO compensation are considered, using cross-section time-series panel data that includes multiple observations for the years 1999 to 2005. As expected, sales, firm performance (returns), and CEO age were found to positively affect the incentive components of CEO compensation. CEO duality, board size, and the percentage of outside directors had a significant influence on CEO compensation in the pre-SOX, but not post-SOX, period. The influences of these three variables in the pre-SOX period were not in the expected directions. Stratification of our sample into two groups by size reveals similarities and differences between smaller and larger firms. For both groups, economic determinants are more dominant than corporate governance variables as determinants of incentive-based CEO compensation. We find differences in the pattern and significance of variables between the smaller and larger firms, particularly for corporate governance variables, pre- and post-SOX. These results suggest that the effectiveness of corporate governance mechanisms may vary by size of company.
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O’Connor, Matthew, and Matthew Rafferty. "Corporate Governance and Innovation." Journal of Financial and Quantitative Analysis 47, no. 2 (January 17, 2012): 397–413. http://dx.doi.org/10.1017/s002210901200004x.
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AbstractWe use Tobin’s q models of investments to estimate the relationship between corporate governance and the level of innovative activity. Simple ordinary least squares (OLS) models suggest that poor governance reduces innovative activity. However, OLS results are sensitive to controlling for serial correlation, unobserved effects, or using instrumental variables to control simultaneity. Controlling for these effects substantially reduces or eliminates the relationship between governance and innovative activity.
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Grove, Hugh, and Maclyn Clouse. "Corporate governance and market cap destruction: A predictive model." Corporate Ownership and Control 12, no. 2 (2015): 659–65. http://dx.doi.org/10.22495/cocv12i2c6p8.
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By focusing on specific board variables, both company performance and stock market performance have been investigated and a more comprehensive corporate governance approach has been advocated to help improve such performances (Larcker et al. 2007 and Grove et. al. 2011). In this paper, we extend such analyses by investigating a relationship between such corporate governance variables and market capitalization. We specifically integrate corporate governance variables into a predictive model for market capitalization (cap) destruction, using the example of the largest six (“Big 6”) gold mining companies publicly-listed in the U.S.
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Briguglio, Lino Pascal, Melchior Vella, and Stefano Moncada. "Economic growth and the concept of diminishing marginal governance effect." Journal of Economic Studies 46, no. 4 (August 5, 2019): 888–901. http://dx.doi.org/10.1108/jes-04-2018-0146.
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Purpose The purpose of this paper is to examine whether good governance across countries, utilising the Rule of Law indicator of the Worldwide Governance Indicators, is associated with economic growth, measured in terms of real GDP. It is to be noted that in this paper both variables are measured in terms of changes, comparing like with like. It is hypothesised that a country with a high level of economic development and a high level of good governance (typically an economically advanced country) tends to find it more difficult to improve these two variables, when compared to a country with lower levels GDP per capita and good governance (typically an economically backward country). This assumption is termed the “diminishing marginal governance effect”. Design/methodology/approach The paper tests the hypothesis that governance improvements are related to real GDP growth, using the panel data regression approach. In this way both variables are measured in terms of changes, comparing like with like. Relevant control variables are utilised to impose the ceteris paribus condition. Findings The paper finds that improvements in good governance are statistically and significantly related to economic growth. This confirms the hypothesised “diminishing marginal governance effect” explained above. Research limitations/implications The main research limitation of this paper is that measuring changes in the “Rule of Law” indicator over time may be subject to errors given that the “Rule of Law” score of each year is an average value with related standard deviations, and the latter vary from one year to another and from one country to another. Practical implications The major practical implication of this paper is that good governance matters for economic growth and that in order to produce evidence for this the governance score must be measured in terms of changes and not in terms of levels. Another implication is that equations that compare economic growth with levels of governance are misspecified as they would not be comparing like with like. Social implications There are various beneficial social implications associated with good governance which is considered as a major pillar for orderly social relationships. Economic growth also has important social implications as it means, if properly distributed, improvements in material well-being of the population. Originality/value The originality of this paper is that it measures governance in terms of changes and not of levels. Studies on the relationship between governance and economic growth that measure governance in terms of levels generally do not find a positive relationship between the two variables. In using changes in both governance and real GDP, this paper confirms the “diminishing marginal effect of governance”, hypothesis.
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Nag, Tirthankar, and Chanchal Chatterjee. "Exploring Linkages Between Corporate Governance and Business Performance: Does Good Corporate Governance Lead to Enhanced Business Value?" South Asian Survey 27, no. 1 (March 2020): 37–61. http://dx.doi.org/10.1177/0971523120907189.
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This study explores the influence of corporate governance practices in corporate boards on firm performance and draws insights on the relative importance for companies for fostering the development of governance mechanisms in business. The study examines 50 firms belonging to the benchmark index of the National Stock Exchange of India (NIFTY 50) and tracks them for over a five-year period. The study uses fixed and random effect econometric models to explore the relationship between corporate governance variables, and firm performance using both accounting returns (EVA, ROA and ROE) and market returns (MVA). The study finds that corporate governance variables significantly improve firm performance or value creation. Especially, multiple directorships, involvement of foreign institutional investors and increase in promoter holdings may significantly affect returns of the firm. The study suggests that it may be useful to foster better corporate governance practices and monitor linkages with firm performance as the effect is influenced by other control variables also.
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Jati, Kumara, and Aziza Rahmaniar Salam. "Governance and Accountability of Macroeconomic Variables to Accelerate Sustainable Development." Cendekia Niaga 5, no. 1 (June 23, 2021): 1–16. http://dx.doi.org/10.52391/jcn.v5i1.576.
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Abstract
Fluctuation in macroeconomics variables has given a difficulty to interested parties to implement good governance and appropriate accountability to accelerate sustainable development. This is a research to understand how to maintain stability of macroeconomic variables and its relations with partner countries. This study takes the examples of three major countries in Asia, Indonesia-Malaysia-Thailand (IMT), and India. Moreover, public sector openness and public administration need to facilitate information disclosure and increased cooperation between countries. Based on VAR model, the shock effect of macroeconomic variables (exchange rates, interest rates and foreign exchange reserves) vary each other. The existence of shock indicates the transmission among variables indirectly through intermediate channel, such as: capital, commodity and money market between 4 countries. Model ARMA-ARCH/GARCH and STSM shows macroeconomic variables in IMT and India will be relatively maintained and stable in 2022. Good governance should be based on principles of accountability, innovation, integration, and collaboration. Economic structure similarity and diplomatic relations established for decades have made IMT and India able to help each other to facilitated information disclosure and increased cooperation between the countries. However, the presence of shock from outside remains to be watched out as the global changes can disrupt the sustainable development.
Abstrak
Fluktuasi variable ekonomi makro telah memberikan kesulitan bagi pihak yang berkepentingan untuk menerapkan Tata Kelola yang baik dan Akuntabilitas yang tepat untuk mempercepat pembangunan berkelanjutan. Ini adalah penelitian untuk memahami bagaimana menjaga stabilitas variable ekonomi makro dan hubungannya dengan negara-negara mitra. Studi ini mengambil contoh tiga negara utama di Asia, Indonesia-Malaysia-Thailand (IMT) dan India. Selain itu, keterbukaan sektor publik dan administrasi public perlu memfasilitasi keterbukaan informasi dan peningkatan kerjasama antar negara. Berdasarkan model Vector AutoRegression (VAR), Shok variable ekonomi makro (nilai tukar, suku bunga dan cadangan devisa) bervariasi satu sama lain. Keberadaan shok menunjukkan adanya transmisi antar variable secara tidak langsung melalui saluran perantara, seperti: pasar modal, pasar komoditas dan pasar uang antara 4 negara. Model ARMA-ARCH/GARCH dan Struktural Time-Series Model (STSM) menunjukkan bahwa variable ekonomi makro di IMT dan India akan relatif dapat dipertahankan dan stabil pada tahun 2022. Tata Kelola yang baik harus didasarkan pada prinsip-prinsip akuntabilitas, inovasi, integrasi, dan kolaborasi. Kemiripan struktur ekonomi dan hubungan diplomatik yang dibangun selama beberapa decade telah membuat IMT dan India dapat saling membantu untuk memfasilitasi pengungkapan informasi dan peningkatan kerjasama antar negara. Namun, keberadaan shok dari luar masih harus diwaspadai karena perubahan global dapat mengganggu pembangunan berkelanjutan.
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Hariyani, Ayu Aditia, and Andi Kartika. "Pengaruh Corporate Governance Terhadap Financial disstres." Owner 5, no. 2 (July 1, 2021): 307–18. http://dx.doi.org/10.33395/owner.v5i2.413.
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This study aims to examine and find empirical evidence regarding the influence of corporate governance as explained by managerial ownership, institutional ownership, independent commissioners, audit committee on financial distress in manufacturing companies listed on the IDX for the 2017-2019 period. In this study, leverage, profitability and company size are used as control variables. The population in this study are all manufacturing companies listed on the Indonesia Stock Exchange (IDX) in 2017-2019. The sample was selected using purposive sampling method and the results get a sample of 361 companies. The analytical tool used in this study is logistic regression. The test results show that managerial ownership has no effect on financial distress. Meanwhile, institutional ownership, independent commissioners, and audit committees have an effect on financial distress. Leverage and company size as control variables show results that are not in accordance with their function, namely that they do not affect financial distress, and profitability as control variables show results that are in accordance with their function and have an effect on financial distress
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Dejon, Renan, and Andre Carvalhal. "The influence of private equity in the governance of Brazilian companies." Corporate Ownership and Control 15, no. 4 (2018): 213–21. http://dx.doi.org/10.22495/cocv15i4c1p8.
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The private equity (PE) investors usually seek opportunities in the target companies in order to earn high returns. One opportunity explored by PEs is the potential that the company has to improve its governance and provide a better structure for the investor, which results in the generation of shareholder value and improve market value. For this, PE enhances the adoption of good corporate governance practices with the goal of creating value for their investment. This study explores how PE improves the governance of target companies in Brazil. The quality of corporate governance is measured by a firm-level corporate governance index, by cross-listing shares in the U.S., and by listing on New Market, a special governance segment in Brazil. We estimate different panel regression and probit models to analyse the relation between PE and governance. We also test different governance metric as dependent variables and use various firm characteristics as control variables. Our results show a positive influence of PE in improving corporate governance in Brazil.
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Buallay, Amina. "Corporate Governance, Sharia’ah Governance and Performance: A Cross-Country Comparison in the MENA Region." Al Qasimia University Journal of Islamic Economics 1, no. 1 (June 23, 2021): 189–215. http://dx.doi.org/10.52747/aqujie.1.1.26.
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This study examines the relationship between corporate governance bank’s operational (ROA), financial (ROE) and market performance (TQ) in both conventional and Islamic Banks. This study examines 127 banks listed on the MENA countries for ten years (2008-2017). The study independent variable is corporate governance principles, the dependent variables are return on assets (ROA); return on equity (ROE) and Tobin’s q (TQ). Also, the study utilizes bank and country specific control variables to help measuring the relationship between governance and bank’s Performance. The findings deduced from the empirical results demonstrate that sharia’ah governance significantly influenced the ROA and ROE. However, the corporate governance significantly influenced the TQ. Furthermore, the results indicate that there are differences between sharia’ah governance and corporate governance with regard to operational, financial and market performance. The study provides insights about the differences in the relationship between sharia’ah governance, corporate governance, and the improvement of performance, which might be utilized by both banks to re-adopt the governance practices in enhancing the operational, financial and market performance.
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Sandhya, S., and Neha Parashar. "An index to study corporate governance in banks in India." Corporate Governance and Sustainability Review 4, no. 2 (2020): 40–49. http://dx.doi.org/10.22495/cgsrv4i2p4.
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There are many factors that affect corporate governance (CG). It is highly difficult to comprehend corporate governance and define it. Yet, research is imperative to understand the changing specific needs of good corporate governance practices and the impact of such practices. As banks have special governance needs, in this study the corporate governance of banks in India has been studied with the help of corporate governance index (GCI) especially designed for banks. Following the method used by Ararat, Black, and Yurtoglu (2017) to investigate the effectiveness of corporate governance, the index was divided into six sub-indices and to test the index it was used to find the correlation of CG practices with the banks profitability measured in terms of return on assets (RAO) and net interest margin (NIM) as dependent variables. The fixed regression model was run to know the relationship between the sub-indices and the dependent variables. Apart from the CG index, capital adequacy ratio (CAR) and Net NPA ratio were taken as independent variables. A weak correlation was found between CG and ROA and NIM that contributes to the findings of Fallatah and Dickins (2012).
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Pohan, Hotman Tohir. "ANALISIS PENGARUH PENGETAHUAN, TATA KELOLA PERUSAHAAN TERHADAP SAHAM SYARIAH DALAM PERSPEKTIP ISLAM DENGAN PENDEKATAN CIRCULAR CAUSATION DI BURSA EFEK INDONESIA." Media Riset Akuntansi, Auditing dan Informasi 14, no. 1 (May 3, 2017): 115. http://dx.doi.org/10.25105/mraai.v14i1.1756.
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<p>The aim of this research is to prove and analyze the effects of knowledge<br />and corporate governance to sharia stocks. Moreover, the background of the<br />research is based on the different philosophy between mainstream corporate<br />governance and Islamic corporate governance. The methodology of this research<br />applies to circular causation approach which the variables are endogeneity and<br />reciprocal effects. The results of the research are; firstly, it indicates that there are<br />significant positive effects of knowledge to sharia stocks, sharia stocks to knowledge,<br />knowledge to corporate governance, and corporate governance to knowledge.<br />Secondly, there are significant negative effects of corporate governance to sharia<br />stocks and sharia stocks to corporate governance. The reciprocal positif effects are<br />the form of interaction which complements among variables which contain manfaah<br />and mashlaha, whereas the reciprocal negative effects are the form of interaction<br />among variables that contain dharar.<br />Keywords : Circular Causation; Endogeneity; manfaah and mashlaha; dharar.</p>
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Abdlazez, Fahed Abdullah, Alhashmi Aboubaker Lasyoud, and Abdlmutaleb Boshanna. "The relationship between Malaysian public-listed firms’ corporate governance and their capital structure." Corporate Ownership and Control 16, no. 3 (2019): 98–112. http://dx.doi.org/10.22495/cocv16i3art9.
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The purpose of this paper is to investigate the relationship between corporate governance practices and capital structure of public-listed companies in Malaysia. Using the annual reports of 273 Malaysian public-listed firms on the Bursa Malaysia between 2008 and 2012, hierarchical multiple regression analysis was conducted. Corporate governance was measured by variables including board size, CEO duality, ownership structure, and board meeting. Capital structure was measured through four variables: debt-to-equity ratio, long-term debts, short-term debts, and debt ratio. The findings indicated that corporate governance practices have a positive influence on the debt-equity ratio, long-term debt, short-term debt and a debt ratio of capital structure. However, corporate governance practices’ influence on the debt ratio is found statistically insignificant. The findings also indicate that firm size moderates the relationship between corporate governance variables and capital structure. Empirically, these findings are useful for measuring and understanding financing decisions taken by the Malaysian public listed firms. It also offers insights to policymakers interested in enhancing the role of corporate governance in formulating management strategies.
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Deepika Bansal and Shveta Singh. "A Literature Review on Intellectual Capital and Corporate Governance Effect on Companys Performance." Think India 22, no. 1 (March 12, 2019): 14–26. http://dx.doi.org/10.26643/think-india.v22i1.7754.
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This paper examines the impact of intellectual capital and corporate governance on company’s performance in the world on the basis of previous studies. The study particularly focuses on how intellectual capital and its components such as human capital, structural capital and corporate governance variables such as board structure, ownership structure influence company’s performance. The review paper comprises of seven important parts. The first part of the paper reviews the literature on financial performance of companies. Second section reviews the literature on intellectual capital. Third part summarizes the literature on components of intellectual capital. Fourth section reviews the literature on corporate governance. Fifth section studies the literature on components of corporate governance. Sixth and seventh section studies the influence of intellectual capital and corporate governance variables on company’s performance. The study reveals that intellectual capital has significant relation with company’s performance and is an efficient indicator of long run performance of companies. Evidence also proves that corporate governance variables such as board size, number of committees, board meetings and ownership structure influence the performance of company’s both positively and negatively.
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Ahmad, Syed Muhammad Hassan Gillani, Suresh Ramakrishnan, Hamad Raza, and Humara Ahmad. "Review of Corporate Governance Practices and Financial Distress Prediction." International Journal of Engineering & Technology 7, no. 4.28 (November 30, 2018): 30. http://dx.doi.org/10.14419/ijet.v7i4.28.22385.
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Good corporate governance practices play an import role in increasing the firm value. Based on the agency theory related to corporate governance, if an agent (management) does not protect interest of principal (shareholders) then, agency cost is occurred and this creates a bad impact on the corporate performance. Therefore, it is necessary to address weak corporate governance practices in early stages otherwise firms can go in financial distress and eventually become bankrupt. The objective of this current study is to conduct a nonsystematic review of literature on theories and models related to corporate governance and financial distress. In the light of thorough review of literature, it is found that corporate governance variables (i.e. ownership concentration, board size, board composition, CEO duality, level of independence of board from management and managerial ownership) are good predictors for predicting financial distress. Moreover, it is also found that these corporate governance variables were not only used separately for predicting financial distress but also used along with others variables (firm level and country level) for the purpose of enhancing quality of financial distress models.
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Eugene, Hakizimana, Arturo Lara Rivero, and Ignacio Llamas Huitron. "Social-Ecological System constraints of Protected Areas. A case study of Mexican protected forests." Fronteiras: Journal of Social, Technological and Environmental Science 8, no. 2 (May 1, 2019): 227–44. http://dx.doi.org/10.21664/2238-8869.2019v8i2.p227-244.
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Protected Areas are worldwide accepted as conservation policy instrument. However, effectiveness of this instrument for sustainability management of protected resources is still problematic. It is in this context this paper investigates Social-Ecological System constraints which lead to unsuccessful situations in protected forests in Mexico. To achieve this objective, a methodology of E. Ostrom SES framework to carry out meta-analysis of case studies of Mexican forests is used. The results show that constraints are imbedded into attributes of governance of these resources by local communities through a set of variables whose patterns of interactions lead to successful or unsuccessful situations. These variables are variables characterizing governance system and variables characterizing actors’ system. The interactions of these variables lead to successful situations in case studies in which local community members highly participate in governance system.
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Robiyanto, Robiyanto, and Auberta Danice Susanto. "Corporate Governance Structure and Stock Price Synchronicity." Jurnal Organisasi dan Manajemen 16, no. 2 (September 29, 2020): 114–28. http://dx.doi.org/10.33830/jom.v16i2.967.2020.
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The corporate governance structure within the company is formed to carry out proper supervision, but a company can have agency problems that affect investment decision making. Transparency of a company is important to prevent agency problems. In addition, transparency in the form of company-specific information can be reflected in stock prices. When investors’ trust in company-specific information increase, stock price synchronicity will decrease. The research was conducted in the banking sector in Indonesia during the 2016-2019 period, using purposive sampling and panel regression methods. Findings. The analysis was carried out twice, namely analysis with and without control variables. Analysis without control variables found that the size of board of commissioners has a positive effect on stock price synchronicity, while independent board of commissioners, board of commissioners’ gender heterogeneity, size of board of directors, and board of directors’ heterogeneity have no effect on stock price synchronicity. Analysis with control variables shows that company size as a control variable must be controlled so that supervision is more effective and yields on Bank Indonesia Sharia Certificate as interest rates that have a positive effect on stock price synchronicity, while all independent variables have no effect on stock price synchronicity.
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Zulfiqar Ali Shah, Syed, and Safdar Ali Butt. "The Impact of Corporate Governance on the Cost of Equity: Empirical Evidence from Pakistani Listed Companies." LAHORE JOURNAL OF ECONOMICS 14, no. 1 (January 1, 2009): 139–71. http://dx.doi.org/10.35536/lje.2009.v14.i1.a6.
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This study examines the impact of the quality of corporate governance, as measured by a specially constructed corporate governance index, on the expected cost of equity calculated using the capital asset pricing model (CAPM) approach. A total of 114 listed companies were investigated to analyze the relationship between the two variables for the period 2003 to 2007. The quality of corporate governance was measured by assigning weights to a set of related variables, although these variables were also considered individually. We used descriptive statistics, a correlation matrix, a simple ordinary least squares (OLS) approach, and fixed effect model to test the panel data collected. We found a negative relationship between managerial ownership and board size with the cost of equity, and a positive relationship between board independence, audit committee independence, and corporate governance with the cost of equity. These results could be due to the transition phase through which Pakistani companies are passing after the promulgation of the Code of Corporate Governance in 2002.
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Fadun, Olajide Solomon. "Corporate Governance and Organisational Performance: Analysis of Nigeria Stock Exchange Listed Companies." International Journal of Finance & Banking Studies (2147-4486) 6, no. 4 (February 14, 2018): 12. http://dx.doi.org/10.20525/ijfbs.v6i4.777.
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<p><em>Corporate governance is relevant in both developed and emerging economies. The study investigated the impact of corporate governance on organisational performance, using thirty (30) randomly selected listed companies in the Nigeria Stock Exchange (NSE) in the year 2016. The study focused on three corporate governance variables (i.e., Board Size, Board Independence, CEO Duality/Tenure); and two performance variables - i.e., Returns on Asset (ROA) and Returns on Equity (ROE). The study does not cover the market measure performance variable of Tobin’s Q. The study is an empirical research, with analytical research design. Secondary data, extracted from published annual reports of selected quoted companies and NSE website, is used for the study. The findings revealed a positive correlation between board size, independence directors, and performance variables; but, showed a negative correlation between CEO tenure and performance variables. The result showed that number of directors was not positively related to performance in selected quoted companies in terms of ROA; but, it revealed a positive correlation between board size and performance in terms of ROE. It also showed that the correlation between CEO tenure and performance variables was negative on the two performance variables (ROA and ROE). Regarding relationship between CEO Duality and performance variables (ROA and ROE), the result showed that CEO Duality has a positive correlation with ROA; but had a negative relationship with ROE. Generally, the study revealed that adoption of sound corporate governance practices by listed companies can improve their performance. Companies can benefit from this improved corporate governance practices by way of increased investment from investors and reduced capital cost. Shareholders confidence would be enhanced with attendant improvement in shareholders wealth. The nation’s economy would also benefit from sound corporate governance practices by way of improved GDP. </em></p>
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Rohaya, Mat Rahim Siti, and Fauziah Mahat. "Risk governance: Experience of Islamic banks." Risk Governance and Control: Financial Markets and Institutions 5, no. 2 (2015): 31–40. http://dx.doi.org/10.22495/rgcv5i2art4.
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Risk governance has evolved tremendously in the banking industry. Risk governance recommends the imperative roles of Chief Risk Officer (CRO) to oversee risk. This study explores risk governance influence over the Islamic banks performances. Multivariate analysis techniques measure simultaneously via Structural Equation Modelling (SEM). This study employed cross-sectional sample of 200 Islamic banks across 21 countries for the year 2014. To examine risk governance and Islamic banks performance, the study captures seventeen variables developed from risk management and corporate governance (ROA, ROE, Profit Margin, CRO, Shariah committee member, CEO, board size, remuneration meeting, credit rating, external audit, accounting standard, loan loss provision, capital adequacy ratio, total deposit ratio, GDP, central bank lending rate and inflation). The simulation result reveals, risk governance act as mediating variables towards Islamic banks performance. This study has practical and significance contribution for Islamic banks to understand risk governance, aligning with the fundamental risk management and corporate governance.
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Asongu, Simplice A., Uchenna Efobi, and Vanessa S. Tchamyou. "Globalisation and governance in Africa: a critical contribution to the empirics." International Journal of Development Issues 17, no. 1 (April 3, 2018): 2–27. http://dx.doi.org/10.1108/ijdi-04-2017-0038.
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Purpose This study aims to assess the effect of globalisation on governance in 51 African countries for the period 1996-2011. Design/methodology/approach Ten bundled and unbundled governance indicators and four globalisation variables are used. The empirical evidence is based on Generalised Method of Moments. Findings Firstly, on political governance, while only social globalisation improves political stability, only economic globalisation does not increase voice and accountability and political governance. Secondly, with regard to economic governance: only economic globalisation significantly promotes regulation quality; social globalisation and general globalisation significantly advance government effectiveness; and economic globalisation and general globalisation significantly promote economic governance. Thirdly, with respect to institutional governance, while only social globalisation improves corruption-control, the effects of globalisation dynamics on the rule of law and institutional governance are not significant. Fourthly, the impacts of social globalisation and general globalisation are positive on general governance. Practical implications It follows that political governance is driven by voice and accountability compared to political stability; economic governance is promoted by both regulation quality and government effectiveness from specific globalisation angles; and globalisation does not improve institutional governance for the most part. Originality/value Governance variables are bundled and unbundled to reflect evolving conceptions and definitions of governance. Theoretical contributions and policy implications are discussed.
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Syadullah, Makmun. "Governance and Tax Revenue in Asean Countries." Journal of Social and Development Sciences 6, no. 2 (June 30, 2015): 76–88. http://dx.doi.org/10.22610/jsds.v6i2.845.
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Tax revenue is influenced by many factors. Existing studies reveal that political stability, level of corruption, quality of the policy, income per capita, share of agriculture to the GDP, and market openness are some of the factors influencing tax revenue. This study aims to analyze the influence of governance by using some indicators, such as political stability, government effectiveness, quality of regulation, law enforcement accountability and control on corruption in tax area through empirical analysis of ASEAN countries. Descriptive analysis and causality methods are employed in this study. causality method is used to determine the relationship between observed variables using panel regression. The results of the study indicate that the controlon corruption, voice and accountability and political stability variables have significant negative effects on the tax ratio, while rule of law and quality of regulatory variables have positive impact on the tax ratio.
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Rodríguez-Gulías, María Jesús, Vítor Manuel de Sousa Gabriel, and David Rodeiro-Pazos. "Effects of governance on entrepreneurship: European Union vs non-European Union." Competitiveness Review: An International Business Journal 28, no. 1 (January 15, 2018): 43–57. http://dx.doi.org/10.1108/cr-06-2016-0035.
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Purpose The purpose of this paper is to analyse the effect of six governance indicators on the rate of creation of new companies between countries that are members of the European Union (EU) and those that are not. H1 states that the various dimensions of governance help to explain the immediate creation of new businesses in European and non-European countries. H2 states that the various dimensions of governance help to explain the deferred creation of new businesses in European and non-European countries. Design/methodology/approach The paper uses two types of analyses: firstly, univariate analysis, which is a descriptive statistics of the dependent, independent and control variables, and the results of a t-test; and secondly, multivariate analysis, which estimates using the fixed-effects estimator under the specifications previously raised for the subsample of 28 EU countries and for the subsample of 103 non-EU countries during the period 2004-2014. Findings The results show that the variables of governance are not significantly higher in the EU, although the density of the enterprises is. Within the governance indicators, government effectiveness is significant in the EU. The results obtained for the EU confirmed H1and H2, with a significant positive effect of government effectiveness on entrepreneurship, while the other governance variables were not significant in the EU subsample. The results obtained for non-EU countries suggest no significant immediate effects (H1) and a slightly significant delayed effect of rule of law on the entrepreneurship (H2) concerned. Research limitations/implications Future research in this area could consider introducing another regional division or other types of methodology as variables affect models. Practical implications Governance can be defined as the ability of a government and its public institutions to provide services and design, and implement rules, which is a factor that affects the creation of new companies. However, the effect of governance could differ depending on the country and its economic environment. This paper analyses the effect of six governance indicators on the rate of creation of new companies considering two different geographic regions as countries are presumably heterogeneous. Therefore, these results indicate that the effect of governance variables on entrepreneurship differs according to the region. Social implications The effect of governance variables on entrepreneurship according to the region is also known. Originality/value This study applied panel data analysis to two samples of countries during the period 2004-2014, one formed by 28 countries of the EU and the other by 103 non-EU countries. No other paper considers this number of countries for this period. To assess the impact of governance on the creation of new companies, this paper considered the existence of immediate and deferred effects of governance on entrepreneurship.
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Shahid, Muhammad Naeem, Aamir Abbas, Khalid Latif, Ayesha Attique, and Safwan Khalid. "The mediating role of board size, philanthropy and working capital management between basic corporate governance factors and firm's performance." Journal of Asian Business and Economic Studies 27, no. 2 (April 4, 2020): 135–51. http://dx.doi.org/10.1108/jabes-07-2018-0050.
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PurposeThis study aims to identify the impact of corporate governance on performance of sugar mills. In order to study this relation, a model is constructed in which ownership structure and independent directors are taken as independent variables. Whereas firm performance is analyzed by using proxy variables such as return on asset (ROA), return on equity (ROE) and sales growth. Moreover, size of board, working capital management (WCM) and philanthropy are taken as mediating variables between governance variables and firm performance.Design/methodology/approachThe data of 32 sugar mills listed at Pakistan Stock Exchange for the period of four years (i.e. 2014–2017) is used for this research. Moreover, to investigate the model, generalized least squares statistical method is used to measure the relationship between variables.FindingsThe results revealed that there is significant but positive relationship between independent directors and ROA while ownership structure and ROE have significant but negative relationship. Thus, the board of directors should make it sure that all stakeholders and organizations should increase the nonfamily ownership in firms for better corporate performance. Moreover, philanthropy and WCM mediate the relationship between corporate governance and firms' performance.Practical/implicationsThis research work will be helpful in the corporate governance, and further researchers can conduct their study by considering executive/nonexecutive director and institutional owners as governance variables.Originality/valueThis paper fulfills an identified need to study how Corporate Governance effect the performance of firm.
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Gunarsih, Tri, and M. Jusuf Wibisana. "The National Culture, Best Countries Rank Number, Corruption Performance Index, and Governance. A Study in 8 Countries." International Journal of Social Sciences and Humanities Invention 6, no. 7 (July 8, 2019): 5541–47. http://dx.doi.org/10.18535/ijsshi/v6i7.03.
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This study implements correlation analysis to explore the relationships between the national culture; best countries rank number, Corruption Performance Index (CPI) and governance in 8 countries in the Europe region (Croatia, France, Hungary, and Italy) and Asia region (Indonesia, Malaysia, Philippine, and Singapore). The national culture based on six dimensions of Hofstede et al. The best countries rank number based on usnews.com. The CPI based on transparency.org. The Governance based on The World Bank Worldwide Governance Indicators, in six expressions. The two highest of culture indicators is Malaysia (Power distance and Indulgence). The two most top indicators of culture are Hungary (Individualism and Masculinity), while the highest uncertainty avoidance is France, and the highest score of long term orientation is Singapore. The highest CPI Score is Singapore (84 out of 100 ratings), and the highest number of best countries is France (9 out of 80 countries). Six indicators of Culture correlate with governance indicators. CPI correlates with best countries rank number and five governance indicators. Country Rank correlates with six governance indicators. The results show that not all of the variables correlate with other variables, but governance correlates with all the three variables. These suggest that the improvement of national culture, the higher the rank number of the best countries and the higher the CPI will lead to being better governance.
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Lamichhane, Pitambar. "Corporate Governance and Financial Performance in Nepal." NCC Journal 3, no. 1 (June 14, 2018): 108–20. http://dx.doi.org/10.3126/nccj.v3i1.20253.
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This paper analyzes the factors that affect corporate governance and influence on financial performance of Nepalese firms for theperiod of fiscal year 2009/10 to 2015/16 using descriptive and causal comparative research design. The profit margin and return on assets are dependent variables usedto measure financial performance and corporate governance and firm related variables such as corporate governance index, age of firms, size of assets, debt ratio, market to book ratio and ownership concentration are considered as explanatory variables. The result of this paper reveals thatprofit margin and return on assets of firms are positively related with age, market to book ratio and overall corporate governance index which implies that higher age, market to book ratio and corporate governance increase financial performance of Nepalese firms. Further, the regression result of the study shows that size of assets and debt ratio have negative effect and ownership concentration has no relationship with firms’ financial performance. Finally, result of this paper concludes that corporate governance, market to book value ratio, age, size of assets and debt ratio have strong explaining power of financial performance of Nepalese firms.NCC JournalVol. 3, No. 1, 2018, Page: 108-120
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M. Etale, Lyndon, and Seth W. Tueridei. "Corporate Governance and Financial Performance of Listed Healthcare Sector Companies in Nigeria." Sumerianz Journal of Business Management and Marketing, no. 311 (November 28, 2020): 174–82. http://dx.doi.org/10.47752/sjbmm.311.174.182.
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The Healthcare sector companies are veritable investment companies on the Nigerian Stock Exchange. The study aimed to investigate the effect of corporate governance and financial performance of listed healthcare sector companies in Nigeria. It employed the ex-post facto research design and equally used secondary data generated from the annual report and accounts of all eight (8) sampled listed healthcare sector companies in Nigeria from 2008 to 2019. The sample size was arrived at by using a purposive sampling technique. The study analysed the data using least square, descriptive and covariance techniques. It adopted Tobin-Q as a measure for firm financial performance, whereas corporate governance variables include board size, board independence and managerial ownership. From the empirical results, the study concludes that there are some level of significance between financial performance and two out of the three corporate governance variables (board independence and managerial ownership). However, the correlation result shows no relationship among the variables examined. The study, therefore, recommends that companies in the healthcare sector should as a matter of necessity embrace complete compliance to corporate governance structure in order to attract the tremendous benefits and improve corporate financial performance therein. This could be done simultaneously with the governance structure at the district, state or hospital level to achieve greater performance. More so, further studies could examine other corporate governance variables together with the already examined variables in this study. Other financial performance variable could also be employed to ascertain any relation or significance among them for the healthcare sector companies.
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Suklev, Bobek, Stojan Debarliev, and Ljubomir Drakulevsk. "Structuring Corporate Boards: Some Facts and Determinants from the Macedonian Setting." Central European Management Journal 28, no. 2 (June 15, 2020): 57–82. http://dx.doi.org/10.7206/cemj.2658-0845.22.
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Purpose: Knowing the factors that might affect board structure is an important step in understanding boards and their role in corporate governance. This research aims to examine the effect of firm characteristics closely related to corporate governance mechanisms, such as the model of corporate governance, shareholder capital concentration, and stock exchange listing on board structure variables (size, independence, and gender diversity). Methodology: The sample of this study stems from large Macedonian joint-stock companies. We run a hierarchical linear regression of board characteristics on common demographic firm characteristics as control variables and contextual firm characteristics related to corporate governance mechanisms as independent variables. Findings: Joint-stock companies in the Republic of North Macedonia have relatively small boards, which provide no positive effects that would originate from the larger number of board members. Moreover, the number of outside independent members is small, insufficient to influence the boards with greater objectivity, independence, and quality. Larger companies with a one-tier model have statistically significant larger corporate boards and a larger number of independent directors. Implications: The best corporate governance practices worldwide must be used as a basis for future improvements of corporate governance in joint-stock companies in developing economies.
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Waweru, Nelson M. "Corporate governance and the value of the firm: An empirical analysis of companies listed in the JSE securities exchange of South Africa." Corporate Ownership and Control 10, no. 1 (2012): 125–36. http://dx.doi.org/10.22495/cocv10i1art11.
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This study examines the corporate governance characteristics influencing the value of the value of the firm in South Africa (SA). Corporate governance variables including Block shareholding, Dispensed shareholding, Board size, Proportion of non-executive directors and Audit quality were identified from the corporate governance literature. Using panel data of 247-firm years obtained from the annual reports of the 50 largest companies listed on the JSE Securities Exchange of SA, this study found that block shareholding and the proportion of NEDS as the main corporate governance characteristics influencing the value of the firm in SA. The results of this study are important to the King Committee and other corporate governance regulators in SA, in their effort to improve corporate governance practices and probably minimize corporate failure and protect the wellbeing of the minority shareholders. Furthermore, the study contributes to our understanding of the corporate governance variables affecting firm value in developing economies, especially SA.
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Jain Gupta, Parul, and Pradeep Suri. "Measuring public value of e-governance projects in India: citizens’ perspective." Transforming Government: People, Process and Policy 11, no. 2 (May 15, 2017): 236–61. http://dx.doi.org/10.1108/tg-07-2016-0043.
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Purpose Most of the existing studies in e-governance context have attempted to measure public value of projects in terms of quality of services provided, cost effectiveness of public organizations and extent to which public organizations are able to meet their social objectives. However, it is also important to explore variables influencing public value to pursue for attaining high public value from such projects. This paper aims to attempt to explore such variables based on Situation-Actor-Process (S-A-P) framework. In India, physical presence of citizens is still required at many public centers established for delivering a variety of government services. A citizen at the time of his visit to a public service center faces a situation, deals with different actors and is subjected to a set of processes. At the end of the service cycle, the citizen develops a perception about public value of the e-governance project. The paper aims at exploring the likely influence of “Improved Situation”, “Capability Level of Actors” and “Flexible Process Workflow” on “Public Value” of e-governance projects. Design/methodology/approach On the basis of a review of literature, variables likely to be influencing public value have been identified in terms of situation, actors and processes. A questionnaire was designed, and a survey conducted to measure public value and S-A-P-related variables in the context of two e-governance projects, namely, Passport Seva Project and Driving License Project in India. Survey data have been analyzed to study the influence of S-A-P-related variables on the public value of e-governance projects. Learning issues have been synthesized in terms of implications for practitioners as well as researchers for enhancing public value of e-governance projects. Findings The study has revealed that a citizen-centric e-governance project with observed high value of conceptualized S-A-P variables is expected to be characterized by high public value. The analysis has also reflected upon a need for an in-depth study to explore empirically validated linkages between S-A-P variables and public value of e-governance projects. Research limitations/implications The paper is based on a pilot study in the context of two citizen-centric e-governance projects. It is required to study more such projects for the purpose of validating the proposed framework and arriving at generalized findings. Practical implications The study results are expected to sensitize practitioners to keep in view conceptualized variables related to situation, actors and processes while planning for citizen-centric e-governance projects. This may result in improved situation at the public service centers, better performance of employees and more flexible processes which may further help to increase the public value of such projects. Practical implications E-governance projects can perform a vital role in improving public value. In the context of India, a key objective of e-governance projects is to improve the service delivery of citizen-centric projects. The findings of the pilot study, based on the select two citizen-centric e-governance projects in India, reflect upon the likely relationship between public value and S-A-P variables. Thrust on improving situational aspects, as conceptualized in this study, is expected to improve comfort level of citizens while taking benefit of IT enabled services of government organizations. Better capability of actors at public organizations is likely to build trust and confidence among citizens toward these services. Adoption of flexible processes by public organizations is expected to ensure seamless delivery of services to citizens through alternate options. Enhanced delivery of services satisfies the need for improved public value and create positive attitude among society toward public organizations. It contributes to satisfaction level of citizens in terms of saving of time, money and efforts. Originality/value A review of literature has revealed a few studies undertaken in recent past with focus on measurement of public value in e-governance context. This paper is based on a novel idea of exploring the likely relationship between conceptualized S-A-P-related variables and public value of citizen-centric e-governance projects. Recommendations based on learning issues are expected to trigger suitable interventions to generate high public value from such projects.