Adoption Of Corporate Governance Practices Research Articles

The corporate governance impacts on BNDES financing to the agribusiness expanded chain

Brazilian agribusiness stands out on the global stage as one of the main food producers and exporters in the world and is currently considered the most powerful segment of the country's economy. the present work aims to understand the impact that corporate governance has on the capture of so-called quality funding (attractive conditions of financial volumes, terms and costs), specifically from subsidized credit lines from BNDES, for the Agribusiness segment. It was used a final sample of 31 publicly traded companies (initially starting from 145 companies in the expanded agribusiness chain), listed on B3 which contracted financing from BNDES. The evidence of multiple linear regression, suggest that the adoption of corporate governance practices may not be decisive in attracting quality funding from the BNDES. It was found that companies in the final sample that adhere to the B3's maximum level of governance, namely the Novo Mercado, do not obtain, necessarily, lower financing costs than Levels 2 and 1 or those not adherent to the institution’s governance.

Does corporate governance affect the performance and stability of Islamic banks?

Purpose This paper aims to investigate the impact of corporate governance practices on cost efficiency and financial stability for a sample of Islamic and conventional banks. In the analysis, the author uses a set of corporate governance variables that include, the board size, board independence, director gender, board meetings, board attendance, board committees, chair independence and CEO characteristics. Design/methodology/approach The author uses corporate governance data of Islamic banks that is unique in this field. In the analysis, the author also uses stochastic frontier analysis and panel vector autoregression models to quantify long-run and short-run statistical relationships between the operational efficiency of Islamic Banks and corporate governance practices. Findings According to the results, Islamic and conventional banks exhibit important differences in the effects of corporate governance practices on cost efficiency and financial stability. Results show that with a blind general adoption of corporate governance practices, Islamic banks may suffer a loss in their value since the adoption of the third layer of binding practices, over and above the already existing ones, imposed by the Sharia Board and the Board of Directors, may lead to cumbersome business operations. This conclusion is of importance to Islamic Banks since they struggle to survive in a very competitive international environment. Practical implications The author believes that the results may be of a certain value to regulators, policymakers and managers of Islamic banks. Based on the results, the author postulate that Islamic banks should select carefully international corporate governance practices. Social implications Islamic banks should not adopt additional third layer of binding practices as that would result lower performance and instability that would be damaging for the economy Originality/value This study employs a unique sample of Islamic banks that includes corporate governance data hand collected. Our findings of the corporate governance impact on Islamic banks performance and stability are therefore unique in the literature.

Level of adoption of corporate governance practices in cooperatives of credit and agricultural branches in the west of Paraná

Level of adoption of corporate governance practices in cooperatives of credit and agricultural branches in the west of Paraná

LA INCIDENCIA DE LA ADOPCIÓN DE PRÁCTICAS DE GOBIERNO CORPORATIVO EN LAS RENTABILIDADES DE LAS SOCIEDADES ANÓNIMAS CHILENAS

El objetivo del presente trabajo fue determinar si la adopción de prácticas de gobierno corporativo incide positiva y significativamente en la rentabilidad de las empresas chilenas. El estudio consideró una muestra de 903 reportes entre los años 2015 y 2019. La investigación del tipo descriptivo – correlacional, demuestra un grado de adopción incipiente a nivel de mercado y sectores económicos, aumentando la heterogeneidad de resultados respecto a la relación entre el gobierno corporativo y el desempeño financiero. La incidencia significativa se alcanza en algunos sectores económicos, respecto a las categorías funcionamiento del consejo de administración y evaluación por un tercero independiente.

Diversity and Governance: Is There Really Progress?

The purpose of the study was to determine if the diversity of gender, nationality, and age has a positive and significant effect on adopting corporate governance practices. The study considered 1106 corporate social responsibility and corporate governance reports from 2015 to 2020. The research was of the descriptive–correlational type, with a longitudinal temporality, considering in the first instance an analysis of the disaggregated descriptive statistics to later determine if the diversity of gender, nationality, and age of the board affects the adoption of corporate governance practices. The results show a low degree of diversity and stagnation in the analyzed period. Regarding the adoption of corporate governance practices, these are in an incipient stage, and the most liquid companies in the Chilean stock market are the ones that have advanced the most during the period. It is concluded that gender diversity has a positive and significant impact on the degree of adoption of corporate governance practices, operation, and composition of the board of directors, and protection of shareholders, while the diversity of nationality has a positive and significant impact on the adoption of related practices to risk management. Finally, the study confirms the heterogeneity of results by linking board diversity variables versus non-financial variables.

Corporate Governance and Performance in agricultural co-operatives in Brazil

The aim of this study is to analyze the relationship between the adoption of corporate governance practices and the performance of agricultural co-operatives in Mato Grosso do Sul, Brazil. The document analysis was based on bylaws and meeting minutes from 2012 to 2014, from a sample of 21 co-operatives, totaling 84 documents. In order to assess the level of corporate governance we compared the co-operatives’ documents to the 40 recommendations proposed by the Brazilian Co-operatives Organization (OCB, 2016). These are distributed in 5 major areas: i) members and the general assembly; ii) management board; iii) supervisory board; iv) advisory bodies and audit; and v) ombudsman and co-operatives’ relationship with their members. The theoretical presupposition is that the adoption of corporate governance aligns the interests of the co-operatives and their members, which minimizes agency conflicts. To that end, we assumed the following theoretical precepts of the agency theory: i) monitoring, and ii) incentives. The results showed that the majority of governance practices recommended are related to the “management board” area, while those most adopted by the co-operatives are related to the dimension “members and general assembly”—which are strongly related to monitoring efforts. Considering the totality of recommendations proposed by OCB, only two have been 100% adopted by the co-operatives. The results show a low level of corporate governance in agriculture co-ops in Mato Grosso do Sul. We conclude that there is still a long way to go until governance practices become a mechanism to minimize agency conflicts.

La incidencia de la diversidad del directorio en la adopción de prácticas de gobierno corporativo

The main objective of this study is to analyze the relationship between member diversity in boards of directors and the adoption of corporate governance practices in 204 Chilean companies during the period 2015-2019. A descriptive-correlational analysis is performed, generating trees of significant correlations and regressions to assess relationships between variables. The results show the existence of significant correlations between the diversity of the boards of directors and the variables that classify shareholders and define risk management. Gender diversity positively and significantly affects the adoption of corporate governance practices. Nationality diversity positively and significantly affects practices related to shareholders and risk management. It is concluded that diversity in both gender and nationality encourages the adoption of good corporate governance practices.

Adoption of Corporate Governance Practices and Their Effect on Financial Performance of Savings and Credit Co-operative Societies in Nyandarua County, Kenya

Corporate Governance Practice is a management tool that was introduced by Nairobi Securities Exchange (NSE) through the Capital Markets Authority (CMA) as statutory requirement for companies listed at NSE to improve their financial performance. Though corporate governance practices have been enforced in Kenya, it has in equal measure experienced cases of mismanagement of Savings and Credit Co-Operative Societies (SACCOs) that has led to collapse of a number of them and others have experienced liquidity challenges. A case in point was the mismanagement of the giant Harambee SACCO which put management of SACCOs on the spotlight. Despite several studies on Corporate Governance Practices, it is not clear how insider lending, an aspect of corporate governance, affected the financial performance of SACCOs. The study examined effect of adoption of corporate governance practices, aforementioned, on financial performance of SACCOs. Three theories guided the study, namely; Agency, Stewardship and Stakeholder theories. The study adopted descriptive research design that involved set of methods and procedures that described intended variables and how they relate to each other. The study adopted Israel, (1992) formula to sample 53 from the population of 61 SACCOs registered with the County Co-operatives Officer in Nyandarua County, and thereafter, from the 53 sampled SACCOs, two top managers were sampled. This led to a sample of 106 respondents. Primary data was collected using a structured questionnaire whereas; secondary data was collected through documentary analysis. Data was analysed using descriptive and inferential statistics and results presented in form of tables and charts. Of the 106 distributed questionnaires, 100 were duly filled and returned and therefore the response rate was 94.3%. The R square was equal to 0.778 while the adjusted R square value was 0.770 which means that 77.0% of the corresponding variation in financial performance of the SACCOs can be explained by corporate governance practices employed by the SACCOs. Multiple regression analysis indicated that insider lending had a great effect on financial performance of SACCOs with a coefficient of -0.391 while the appointment of internal auditor with a coefficient of 0.243. The variable on insider lending had a negative coefficient implying that a unit increase in insider lending led to a decrease in financial performance of the SACCOs by 0.391 units. The variables were all significant at p=0.000 and p=0.013 for the constant term. The study therefore fails to accept the null hypothesis that corporate governance practices have no statistically significant effect on the financial performance of SACCOs in Nyandarua County and states that corporate governance practices.

An Assessment of Informal SMEs Governance Practices: A Case Study of SMEs in Harare CBD.

The study sought to assess the impact of implementing governance practices on the performance of Small and Medium Enterprise (SMEs) in the clothing sector operating in Harare’s CBD, Zimbabwe. Primary data was obtained mainly from structured interviews accompanied by questionnaires that sought to gather general information about the respondents. Face to face, verbal interviews were used to collect data during the study. The study made use of a sample that consisted of 100 respondents drawn from the target population using purposive sampling. The research study revealed that firms that implement corporate governance practices are more productive and perform well financially as compared to those that do not implement governance practices. The study also revealed that firms with corporate governance practices have better chances of surviving and acquiring funding for expansion and growth from banks and finance companies. The study concludes that governance practices impact the performance of SMEs operating in Harare’s CBD including their ability to introduce strategic changes. To encourage adoption of corporate governance practices by SMEs, government is encouraged to make the Code of Corporate Governance more relevant to SMEs as well as raising awareness through training and information dissemination.

Efeito da Governança Corporativa nos Retornos das Ações em Decorrência do Anúncio da Recompra

Objective: The objective of this study is to analyze whether or not the stock prices of companies respond to the announcement of the share buyback and what are the possible influences that the adoption of stricter corporate governance practices may have on the results.Method: A quantitative research was carried out on 329 public share buyback announcements, carried out by 99 companies, from 2003 to 2014. The quantitative part of this study used the ex-post-facto research technique, with data secondary and event study work methods.Originality/Relevance: The increase in cash distribution by companies through the repurchase of shares, the evidence of an abnormal return on shares as a result of the repurchase and whether or not the adoption of better corporate governance practices reduce information asymmetry in the market, has led researchers to analyze whether or not there is a relationship between the level of governance and the return on shares as a result of the announcement of the share buyback event.Results: The results indicate that there is evidence of an abnormal return in the Brazilian market before, during and after the announcement of the share buyback event. Regarding the adoption of corporate governance practices used by companies, no evidence was found that the adoption of stricter corporate governance practices reduces asymmetry.Theoretical/Methodological contributions: The research contributes to the discussion of the theme in the Brazilian stock market and to broaden the discussion in the literature if the adoption of best corporate governance practices reduces the asymmetry.

Impact of the adoption of corporate governance practices on the performance of information technology projects

This work illustrates the use of tools that allow linking project objectives with the vision and strategy of the organization, monitoring effectiveness and controlling the development of activities, to improve project results. One of these tools is precisely the balanced scorecard, which contemplates additional strategic dimensions to the traditional ones in the field of project management, known as the triple constraint (time, scope and cost). This research paper analyzes the impact of the use of the balanced scorecard in the management of information technology projects in Colombia. The results obtained are presented when comparing projects developed with different monitoring and control methodologies, for projects that have implemented the balanced scorecard including strategic measurement dimensions. The study involved 105 project managers. The results of the study provide empirical evidence that concludes that the balanced score card is a tool that improves the effectiveness and efficiency of project management. In addition, the results show that the balanced score card improves the effectively achieves alignment of the with the organization’s strategy.

Adoption of corporate governance practices in the computer science environment. Mexican food franchise analysis in the Colombian context

In a globalized world characterized by aggressive competition in all sectors of the economy, it is essential that organizations establish adequate corporate governance in order to properly coordinate interests within the organization to generate wealth. One of the models associated with corporate governance is the balanced scorecard consisting of four perspectives. This work provides an important input to consider within the organizational goals in the perspective of the balanced scorecard client in Mexican food franchises in Cali - Colombia, as is the client’s knowledge. The research approach is mixed and predominantly descriptive. As a result of the study there is a consumer profile in Mexican food franchises in the city of Cali. Thus, the average consumer of Mexican food is a young person, of medium socioeconomic status and who shares in family the consumption of this type of food. In addition, the study identifies the main variables that determine the decision to consume Mexican food, such as the possibility of home shopping through mobile applications, hygiene and food presentation.

Analysis of the compliance of Brazilian firms with good corporate governance practices

Purpose: Studies report that the adoption of good corporate governance practices tends to improve firm value. However, the results of such adoption seem to be conditioned by specific institutional and legal characteristics of each country. This study aims to analyze compliance with good corporate governance practices in the context of publicly traded companies in the Brazilian market.
 Methodology: The sample is made up of 1336 annual observations of 167 companies listed on the B3 (Brasil, Bolsa, Balcão) in the period 2010-2017. The practices recommended by the main corporate governance codes in Brazil were used as benchmark. Tests for the difference in means (t-test) and in proportions (z-test) were used to compare the observed situation in the group of firms and the recommendations in the Brazilian market.
 Results: Despite the adoption of many of the best practices recommended, there is still space for advancement in the Brazilian firm corporate governance. The results indicate noncompliance of the Brazilian firm with the recommendations regarding the audit committee and fiscal council, which may particularly weaken transparency and control of firm’s internal activities. In addition, adherence to distinguished market segments is associated to a greater trend to observe the suggestions emanating from the codes, which may be due to the perception of a favorable cost-benefit ratio of the adoption of corporate governance practices.
 Contributions of the Study: The work provides additional contribution by presenting a detailed analysis of the current scenario of the Brazilian firm corporate governance captured from the evaluation of the degree of adoption of each practice recommended individually.

Adoption of corporate governance practices of the chilean market in triennium 2015 – 2017

The present research describes the degree of adoption of corporate governance practices of 203 Chilean open anonymous corporations during the 2015-2017 triennium, in compliance with the Norm of General Character N°385. The aforementioned practices must be reported annually to the securities market regulator in Chile, called Comisión para el Mercado Financiero (Commission for the Financial Market). The data analysis, within a confidence interval of 95%, was divided into two stages. First, with a descriptive statistical analysis, and secondly, the presentation of the levels of adoption at the market level, categories and principles for the periods 2015, 2016 and 2017. In both stages, it was established that the degree of adoption is low (close to 30%), and that in the three years of study no interest to make significant improvement in the adoption of corporate governance practices has been evidenced by the corporations.

The Impact of Corporate Governance on Company Performance: A Study among Medium and Large Enterprises in Kosovo

Abstract An effective corporate governance system is established to ensure proper balance of long-term interests of different stakeholders (primarily: owners, employees and management) and improve company's performance and its competitive position in the market. This paper provides a theoretical discussion and empirical evidence on the interdependence between corporate governance and company performance among medium and large enterprises in Kosovo. A questionnaire survey was employed for data collection purposes. The study included a sample of 87 managers from 87 medium and large enterprises. Results indicate that effects of corporate governance on the performance tend to be greater in larger companies. Regarding the determinants, the theoretical expectations are confirmed. Results confirm that the size of the company, the level of investment, export activities and company life expectancy are statistically significant determinants of the adoption of corporate governance practices. As a result, larger companies with large scales of investment and longer market experience tend to adopt more corporate governance practices. The study suggests that corporate governance will inevitably affect companies’ performance and further research is needed in this context.

Governança e Futebol: Um Estudo em Clubes de Caxias do Sul

This article aims to analyze the relationship between the adoption of corporate governance practices and sports performance in Caxias do Sul soccer clubs: Esporte Clube Juventude and Sociedade Esportiva e Recreativa Caxias do Sul, between 2012 and 2016. Data were collected through interviews with football club leaders, complemented with information from documents analyzed as the statutes of the respective associations. The dimensions analyzed were: governance structure, compliance, accountability, social return and managerial practices. The findings demonstrate that in the cases studied, corporate governance principles are still incipient, but these have influenced the clubs' sports performance. The Esporte Clube Juventude performed well in the period and that Sociedade Esportiva e Recreativa Caxias do Sul, after having overcome managerial and sports problems in the period, is being structured to achieve better results. Finally, it is understood that in order to survive and seek positive results, soccer clubs will no longer be able to pursue archaic management practices.

Implementación de prácticas de gobierno corporativo en Colombia: un análisis desde el isomorfismo institucional en empresas familiares y no familiares

Desde la perspectiva del isomorfismo institucional fue estudiada la implementación de prácticas de gobierno corporativo durante los años 2008 a 2014 en 105 empresas inscritas en el Registro Nacional de Valores y Emisores (RNVE) de Colombia. No se encontró evidencia para afirmar que en dicha implementación exista isomorfismo. Estos resultados pueden deberse al poco tiempo que tiene de promulgado el Código País (siete años), siendo un periodo de estudio corto para reflejar cambios significativos en la variación del índice de Gobierno Corporativo Código País (IGCCP) en Colombia. Se validó que la tendencia hacia la homogeneización en la implementación de prácticas de gobierno corporativo es diferente en las empresas familiares frente a las no familiares.

Determinantes dos Honorários de Auditoria das Empresas Brasileiras de Capital Aberto

The studies on the determinants of audit fees in Brazil became possible with the mandatory disclosure of audit expenses in 2009. Thus, the objective of this research was to identify the determinants of the fees paid by Brazilian publicly traded companies to independent auditors in 2010 to 2014. The analysis took place through regression with data arranged in panel. Size, performance, complexity, audit firm size, adoption of corporate governance practices, audit rotation, industry and litigation risks have all been found to have an impact on the fees. Therefore, the aspects that can be used by companies for the purpose of information management or that require more auditing timefor signaling points of greater risks are highlighted. In addition, understanding the determinants allows companies to plan future expenditures with audit fees and assists regulators and inspectors in defining and comparing key determinants of firms for identifying abnormal payments. These results complement the research in Brazil, Australia, Bangladesh, Norway, Bahrain, England, Jordan, Kuwait, USA, Malaysia, Nigeria, Abu Dhabi, Italy and Indonesia.

Does better corporate governance increase operational performance?

PurposeThis study aims to examine the association between the adoption of corporate governance practices and operational performance in companies listed on the Brazilian Stock Exchange.Design/methodology/approachThe sample comprises the 80 largest companies in market value present in the Brazil Stocks Index in 2014. Principal component and cluster analyses techniques are used to evaluate performance and capital structure, and a regression model is applied to identify the relationship between key variables.FindingsThe findings show that the incidence of a high level of corporate governance in Brazil occurs among smaller companies with less desirable operational performance, rather than the biggest (blue chip) companies. Using a regression model with the return on assets as a dependent variable, a dummy variable for “governance”, and the size of the companies as a control variable, the authors find no association with good practices of corporate governance and operational performance for the companies in the sample.Practical implicationsNewer companies are more likely to exhibit a higher level of corporate governance because of the actions of foreign investors who demand the adoption of stronger corporate governance practices. Although there is demand from wealthy local institutional investors, many older traditional firms could still restructure to achieve higher levels of governance, especially in the case of emerging economies with less mature stock exchangesOriginality/valueThis study contributes to the recent debates in the literature by identifying evidence for an association between operational performance and corporate governance rather than a causal relationship.

El “Cinismo” y el Gobierno Corporativo

In this article, the author explains about the adoption of corporate governance practices, which depends on an evaluation of costs and benefits. Peruvian companies do not assume these practices because of the lack of incentives, informality and poor regulation. Finally, he concludes peruvian regulation of corporate governance practices lacks content, which means that it is not a priority for companies.