Application Of Corporate Governance Principles Research Articles

Do Institutional Investors Play a Meaningful Role in the Effective Implementation of Corporate Governance on SDG?

Objective: Corporate governance is a recent development in Kuwaiti financial markets. Corporate governance principles have created several new concepts, such as the independence of directors, the establishment of various committees, the separation of the CEO from the chairman of the board, and other related principles. This article will discuss how institutional investors can play a meaningful role in the effective implementation of Corporate Governance Principles. The primary aim of this research article is to seek a detailed understanding of the Kuwait Corporate Governance Code (KCGC) as it relates to instituting a special code for institutional investors. Method: Solving legal problems and finding the best way to apply special laws can best be highlighted by using a comparative legal analysis. This methodology allows scholars to compare the laws of several countries to find alternative ways of addressing legal issues. This research article will compare legislation in the developed market in the UK to evaluate its potential effectiveness in averting future problems and bringing a better understanding of this subject in Kuwait. Result & Conclusion: The institutional investor plays an influential role in increasing the effectiveness of the principle of commitment to the ‘Comply or Explain’ regime. In the UK, the stewardship code for financial institutions was issued to give them control and responsibility over the application of the governance system. The article suggests that institutional investors should play a more active role in insisting on the application of corporate governance principles. It considers the ‘Comply or Explain’ regime and how it is being used effectively by companies backed by institutional investors. In addition, a new corporate governance code for institutional investors should be developed, similar to the UK Stewardship Code.

Critical Perspectives of Organisational Behaviour towards Stakeholders through the Application of Corporate Governance Principles

Corporate governance is gaining interest not only from investors but companies that want to operate in international markets, prompting a more thorough analysis of the field to prioritise stakeholder interests alongside shareholder value. By adopting a holistic approach that considers stakeholders’ diverse needs and expectations, companies can build resilience, foster trust, and create sustainable value for all stakeholders, ensuring long-term success and societal impact. This paper analyses corporate governance principles applied at the international, European, and national levels, emphasising the importance of the field for the stakeholders. The practical approach of the paper analyses the application and compliance of the corporate governance code of 18 companies in the field of financial intermediation and insurance, which are listed on the Bucharest Stock Exchange, underlining the crucial role of transparency of operations in instilling confidence and reassurance in stakeholders. The conclusions present proposals for measures to improve corporate governance practices at the level of companies.

The “comply or explain” principle in corporate governance statements in Poland

Purpose: Each entity that submits a corporate governance statement is required to indicate the principles that it did not apply and to explain the circumstances and reasons for not applying them. The objective of this article is to assess the scope of corporate governance reporting in Poland, with a particular focus on the areas where companies deviated from applying corporate governance principles.Methodology/approach: The study involved 280 corporate governance statements made by 140 listed companies on the Warsaw Stock Exchange (WSE-LCs). The time scope of the study covers the years 2020–2021, as in that period, the scope of applying good practices of corporate governance was changed at the WSE. In addition to the content analysis of corporate governance statements, the study also applied the following research methods: bibliometric analysis, a critical review of the literature, comparative analysis, as well as induction and synthesis methods used in formulating the conclusions.Findings: The results of our empirical research demonstrate that the companies took various approaches to reporting their corporate governance obligations. In 2020, the full application of Best Practices for WSE-LCs was declared by only five companies, and in 2021, only four. This means that the other companies departed from applying them to a smaller or larger extent. While the Best Practices for WSE-LCs 2016 included only one recommendation and eight detailed principles from which at least 20% of the companies deviated, with regard to Best Practices for WSE-LCs 2021 that number was as many as 14 principles. This makes it possible to conclude that the 2021 amendment of the corporate governance good practices code affected the implementation of the “com-ply or explain” principle compared to the previous year.Originality/value: This article fits into the current trend of research on non-financial reporting, in particular, changes to the application of corporate governance principles. The article also fills a research gap, defining the key areas of departures from applying corporate governance principles, which were identified for Polish listed companies. The results may be of interest to both academia and the examined entities.

Influence of Corporate Governance Practices on Quality of Financial Reporting in the Nigerian Public Sector

Purpose: This study assessed the influence of corporate governance (CG) practices on quality of financial reporting (QFR) in public sector institutions in Nigeria.
 Methodology: Descriptive research design and survey method was used to collect data from a total of two hundred and ten (210) senior level officers from finance and accounts, internal audit and senior management staffs from related departments of ten (10) public sector entities were sampled and selected using Multi-Stage sampling method. Relevant information was elicited from selected personnel using structured questionnaire. Data analysis involved descriptive and inferential statistics using Stata. In determining the relationship between corporate governance and quality financial reporting (QFR), some principles of good governance as listed by Organization of Economic Corporation and Development (OECD) were regressed against the characteristics of quality financial reporting as identify in the accounting framework. 
 Findings: It was discovered that some of the corporate governance principles like compliance with regulations, fairness, effective risk management, good internal auditing and ownership inclusiveness do positively and significantly influence quality of financial reporting. Characteristics like officer responsibility, openness and responsiveness shows weak influence. Gender and other demographic characteristics also have weak effect on QFR. Even the level of awareness of application of corporate governance principles to public sector is low and this affects compliance.
 Recommendation: The study recommend creation of better awareness and compliance with CG principles will help to improve quality of financial reporting in the public sector.

Analysis Of Good Corporate Governance As A Pillar Of Implementa-tion Of Corporate Social Responsibility (PT Bank Negara Indonesia (PERSERO) TBK Metro Branch Office)

This study aims to determine the relationship between the application of corporate governance principles (GCG) to the implementation of corporate social responsibility (CSR) practices and the motives behind CSR practices and disclosures carried out by companies. In the principles of good corporate governance (GCG), there is a principle of responsibility which is implemented in the form of implementing the CSR program. The main research question of this study is how the company implements GCG principles, especially the responsibility principle and how it implements CSR practices and how companies make CSR disclosures and what are the motives behind the CSR disclosure. Data collection methods used in this study were interviews and analysis of company documents.The results of this study indicate an important role between the implementation of GCG and the implementation of CSR practices, where by applying the principles of GCG, the implementation of the CSR program becomes more focused and more focused on the CSR programs needed by the wider community, which are more structured and have improved for the better from year to year. year. In addition, the results of this study indicate that the company's motivation in implementing CSR practices and various disclosures is to implement the principles of good corporate governance as a whole, meet stakeholder expectations, gain legitimacy, and win certain awards. CSR practices are based on the company's vision, mission, culture and CSR code of ethics...

Corporate Governance Principles in Sovereign Wealth Fund: The Case of Indonesia Sovereign Wealth Fund

The research aimed to determine the application of corporate governance principles for the Indonesian Sovereign Wealth Fund (ISWF) consisting of the Supervisory Board and the Board of Directors which had different functions. The research applied a normative juridical research method. The research concludes that the government needs to review the implementation of the principles of institutional corporate governance in the ISWF. The principles of corporate governance need to be rearranged, mainly the functions and powers of the Supervisory Board and the definition of the authority of the Board of Directors. It is considered that the research has its particular limitation as the discussion is based only on two laws and one corporate governance manual. It is suggested that further research have more development by comparing corporate governance in other countries.

The Application of Corporate Governance Principles in the Banking Sector in Sri Lanka – An Overview

<p>All economies in the world are propelled by banks and the banking industry. Since the end of the war, Sri Lanka’s development has been accelerated and banks play a prominent role in the economy as they finance growth and development. Corporate Governance (CG) is seen as a particularly important regime for banks, due to their engagement with public funds, the public’s confidence and trust is of paramount importance to a bank’s stability. It is crucial that laws and regulations provide a versatile framework for good governance of the banking sector. This study critically examined the state of CG development and its underlying implications in the banking sector. Primarily, the relevant provisions of the Companies Act, Banking Act and the Monetary Law in Sri Lanka were evaluated, in addition to the other relevant laws, in order to ascertain whether they provide an adequate framework to ensure proper CG of banks. The Central Bank of Sri Lanka (CBSL) has improved its capacity over the years to supervise, enforce and maintain financial stability. It ensures the safety and stability of banks at all times and has taken steps to implement risk management, BASEL II, for tight CG of banking. A mandatory code of CG has been issued by the CBSL, requiring all banks to fully comply with the rules on or before the 31<sup>st</sup> of January 2009. This study also explores the scope, extent, impact and the effectiveness of the supervisory and regulatory role of the CBSL and identifies the challenges faced by it when addressing the CG issues in the banking industry.</p>

Corporate Governance And Its Effect On Professional Performance In Palestinian Private Universities, In Light Of Quality, Accreditation, And Classification Requirements

Corporate governance has become a subject of heightened importance and attention in government policy circles, academia, and the popular press throughout all over the world. The purpose of the study is to examine the actual status of corporate governance principles in Palestinian private universities at Gaza Strip Governorates, in order to propose a framework of governance for these universities, in light of quality, accreditation and classification requirements for Palestinian universities issued by Palestinian Ministry of Higher Education. In Gaza Strip Governorates there are four private universities, the study covers all these four universities. To achieve the study objectives, the descriptive analytical approach was implemented. The study population includes all the 458, stockholders, academic and administrative fixed contract employees at the four private universities in Gaza Strip. the sample was a random sample of 200 employees (44% of the population). A special questionnaire was prepared and distributed for the sample, 182 completed and correct questionnaire copies were collected (91% of total sample). Data was collected using Statistical Package for the Social Sciences SPSS program. The main finding of the study demonstrates that there is a significant relationship between private universities performance and the application of corporate governance principles, quality and accreditation requirements and classification requirements of Ministry of Higher Education (MOHE), and applied corporate governance framework, and there is a middle level of adequacy of corporate governance principles adequacy at private universities in Gaza Governorates. These findings reflect the actual situation of all Palestinian private universities. Based on the study results, the researchers recommend to build national standards for university governance, aiming to accelerate the issuance of a guide to the governance of private universities. Also, promoting cultural and knowledge awareness regarding the governance of private universities. These recommendations will help Palestinian private universities to achieve higher performance quality in both academic and managerial aspects, this will improve the outcomes of these universities and will be reflected in the capabilities of their graduate students.

The impact of the board process on board and corporate performance: the case of Slovakia

Nowadays a great deal of attention is paid to corporate governance (CG). Frequent takeovers of ownership rights by management bodies led to a need for business owners to establish clear rules for business management and compliance monitoring. The aim of this paper is to examine the relationship between selected characteristics of the governance process and the ability of governing bodies to perform their core tasks, as well as to model and predict the impact of the selected characteristics of the governance process on the company’s financial performance, measured by the year-on-year change in return on equity. The respondent sample consists of members of randomly selected top management entities with their headquarters in Slovakia. A total of 132 subjects participated and answered questions in the survey, 54% of which were joint stock companies, 36% were limited liability companies and 10% were respondents from cooperatives. Data were personally collected by a questionnaire survey conducted during 2019. To verify the assumptions and success of the formulated model, correlation analysis, binary logistic regression and other relevant tests were used. The results show that each of the examined board process attributes significantly affects at least one board performance attribute. All significant correlations have a positive value. Independent variables in the ROE regression model increased the estimation rate of ROE change from 54.5% to 93.9%. The model is applicable in the CG practice and allows the prediction of changes in ROE with respect to ongoing governance processes. AcknowledgmentThis paper has been supported by the Scientific Grant Agency of Slovak Republic under the project VEGA No. 1/0749/18 “Research on the application of corporate governance principles in companies in Slovakia”. The authors would like to express their gratitude to the Scientific Grant Agency of The Ministry of Education, Science, Research and Sport of the Slovak Republic for financial support of this research and publication.

Analisis Pengaruh Penerapan Good Corporate Governance Terhadap Pertumbuhan Modal Koperasi

The purpose of this reseach is to analyze whether the application of corporate governance principles have an influence on the performance of Cooperatives. This study was conducted on 132 Cooperatives which reported the financial reports of 2015 until 2016 to Department of Industry, Commerce, and Cooperatives of Pemalang District (DESPERINDAGKOP). The approach used was a purposive sampling. The collected data was then analyzed using multiple regressions. The result of this reseach showed that transparency, accountability, independence and fairness partially have a significant positive effect on capital growth, while responsibility does not have it. The obstacles found in this study were the financial reports which were used in only two years. Therefore, it presents far less accurate figure in relation with the performance measurement of cooperatives.

Market Share as a Function of Board Diversity and Board Size of Selected Deposit Money Banks in Nigeria

Deposit money banks around the world have been experiencing challenges over the years in the area of survival and market share. These challenges are attributable to weak or defective corporate governance mechanisms. Significant pressure led to the application of corporate governance principles, which were generally considered the solution to the problems occurring in these countries' market environments. In the light of this, this study sought to evaluate the effect of board diversity and board size on market share of selected deposit money banks in Lagos Nigeria. The study adopted the cross-sectional survey design. The total number of top managements including directors and Independent directors in the deposit money banks was two hundred and twenty six (226). Considering the size of the population of the study, total enumeration method was adopted as the sampling technique. The data for the study was obtained using a well-structured and validated questionnaire. The study found that board diversity and board size have a combined significant effect on market share of the selected deposit money banks (R = 0.386, R2 = 0.149 p < 0.05). On an individual level, it was found that board diversity has no significant effect on market share of deposit money banks in Lagos state (β = -0.189, p > 0.05), board size has a significant effect on market share of the selected deposit banks in Lagos state. (β = -0.413, p < 0.05). The study therefore recommended that firms especially deposit money banks should adopt proper strategies to improve board dynamics in terms of size and diversity in order to enhance their share of the market.

The relations between the quality of financial statements and corporate governance

Abstract Business entities operated in the form of capital companies, to maintain reliability and transparency of the activities conducted, should observe general supervisory framework of legal nature. The primary objective of the information policy is to provide stock market participants with appropriate standards of company transparency which through the corporate governance regulations should lead to the improvement in the quality of financial reporting. Financial statements should be reliable as it is only then that their aims and targets are met, and the image of business they depict should be created according to the true and fair principle, invoking the responsibility of individuals supervising the process of drawing up a financial statement. The aim of the paper is to indicate the essence of the relationship between the quality of financial statements and the application of corporate governance principles. The paper uses the analysis of regulations and review of literature in the field of corporate governance and reporting of listed companies. The results of the analysis confirm that the quality of reported information determines the effectiveness of corporate supervision; that integrated reporting (IR) is a tool enabling organizations to communicate their value to investors; and that corporate supervision allows said organizations to adopt the comprehensive approach in developing sustainable value.

The role of corporate governance in debt and dividend policies: case of Slovakia

Do good corporate governance practices affect the amount of intermediated debt used by corporations and their dividend payout decisions? This study addresses the direct effects of corporate governance practices on both the indebtedness and the dividend pay-outs in corporations listed on the Bratislava Stock Exchange in 2015–2017 in Slovakia. Because of the relatively weakly developed stock market, the hypothesis is set only to found whenever there is a correlation between those variables. For analyzing the data, Spearman’s rank correlation was used because of the absence of normal distribution. Furthermore, authors adjusted the data set specifically in both cases to reflect more precisely the situation and increase the significance of the models. The most important result of this paper is the finding that the application of the corporate governance principles affects financial decisions of companies. There is a correlation between the responsible application of corporate governance principles and the total debt of companies. Also, there is a correlation between the responsible application of corporate governance principles and the amount of dividends paid to shareholders.

Advances in the corporate governance practices of Johannesburg Stock Exchange companies

Since the 20th century, corporate governance mechanisms have been developed globally to curb the negative effects of the agency problem. South Africa was a pioneer with the publication of the first King Report on corporate governance in 1994. Given the paucity of research on corporate governance in the country, the researchers set out to investigate the corporate governance practices of 230 companies listed on the Johannesburg Stock Exchange over the period 2002 to 2010. Annual corporate governance scores were compiled by means of content analysis of the sample companies’ annual reports. The empirical findings revealed an increasing compliance trend towards 2010. Although the sample companies tended to improve the disclosure of their corporate governance practices over time, their practices were not per se acceptable (where acceptability implies meeting the King II recommendations). Inexperienced directors and managers might benefit from more training to enhance their understanding of the application of corporate governance principles.

Field of Application of Corporate Governance Principles in the Turkish Company Law (Joint Stock Companies)

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The Impact of Corporate Governance on Financial Management of Public Secondary Schools in Kenya: A Case of Siaya County

This study sought to investigate the impact of corporate governance on financial management of public secondary schools in Kenya. The specific objectives of the study were to: To establish the impact of the board composition on financial management of secondary schools, to establish the composition of board skills on the financial management of public secondary schools, and to analyze how the application of corporate governance principles impacts the financial management of public secondary schools. This study was undertaken among the 41 secondary schools in Siaya County the target population comprised of 205 respondents who were either Chairman. Treasures, parent teacher association member, board of governor member or auditor in the respective institution. Using stratified sampling a sample size of 137 was arrived at although only 110 responded giving an 80% response rate which was considered sufficient. Questionnaires was used as a data collection tool and using SPSS version 20, the descriptive and inferential statistics was computed. The analysis revealed that majority were aware of budgeting practices in schools and as board member, they oversee supply chain management, movable asset management and control. It was also noted that the members prioritize on use of scarce resources to ensure effective stewardship over public money and assets and most of the respondents were actively involved in planning and implementation of the financial plan, accounting and reporting on funds management. A positive correlation was established thus a positive change in board composition led to a positive change in financial management. The findings also revealed that presence of accounting knowledge was vital in order to improve financial management in schools and the board had illustrated governance expertise in the last five year. It was also established tenure of board member affected financial management and all members had information on projects undertaken by the school. Positive correlation revealed that with every positive change in board skills there is a positive change in financial management. Lastly the findings revealed that management and board of director’s are efficient and have capacity to perform their duties properly and it was also established that there are set rules and policies that generate information on roles and responsibilities. The members were also found to be able to effectively manage issues of procurement, allocation and control of financial resources although there was no clear response on difficulties in managing large volumes of paper work. Positive correlation revealed that with every positive change in corporate governance there is a positive change in financial management.

Corporate governance mechanisms and earnings management in Nigerian food product companies

One of the major challenges facing investors now is how to mitigate earnings management. Therefore, this research paper tries to find out whether this can be achieved through the application of corporate governance mechanisms. A sample of six (6) firms was selected out of eleven (11) firms in the Nigerian food product firms. The data were sourced from yearly report and account of selected firms for a period of twelve years (12), starting from 2003 to 2014. Descriptive statistics and correlation technique were employed in the analysis of data collected. A panel data regression technique was used because the data had time series and cross sectional attributes. It was found that board meeting has negative impact on earnings management; board gender and institutional ownership have negative relationship with earnings management while audit committee meeting has positive impact on earnings management. Size of the firm which is the control variable has positive effect on earnings management. The findings support the application of corporate governance principles as they motivate institutions to ensure that earnings management practice in Nigerian food product firms is adequately supervised. The study adopts agency theory which believes in bringing managers and shareholders to have a common understanding, thereby reducing agency cost. Therefore, the study recommends that institutional shareholdings should be encouraged as this would help to reduce the extent of earnings management in Nigerian food product firms.

Practical application of corporate governance principles in a developing country: A case study

The importance of examining corporate governance in organisations cannot be overemphasised. Corporate governance failure which has resulted from weak corporate governance systems has highlighted the need for research aimed at contributing to the improvement and reform of corporate governance at business, national and international level. A review of corporate governance mechanisms and their practical application in two retail companies in South Africa was undertaken. The research question that informed the study was: What is the nature of corporate governance mechanisms in the South African retail sector? The research design entailed analysis of secondary data, namely Annual Reports and other pertinent documents, and document analysis was used to show what is accessible to the ordinary share/stake-holder and what is not. Data analysis was conducted both qualitatively and quantitatively. With regard to corporate governance mechanisms, the results and discussion show that the two companies have not yet complied with the King II and III codes. Recommended strategies to strengthen corporate governance mechanisms in the South African retail sector should include a commitment to risk disclosure and revamping of the corporate governance structure of the ‘whole’ system.

Responsibility in The Corporate Governance Framework and Financial Decision Making Process

Abstract Many organizations today have realized that if they want to be successful, they must have a sense of responsibility not only for their business activities but also for the development of the whole society. Honesty, fairness, integrity and the people – consumers, customers, clients, community, the public, the company and their needs and interests are gradually taking top ranks in the charts of corporate values. This approach is entirely consistent with the concept of socially responsible business, of which corporate governance (in the economic field) can be considered an integral part.Our main objective is to highlight the importance of applying the principles of governance corporate for companies whose securities are listed on the Bratislava Stock Exchange.The paper uses a correlation analysis to examine the association between corporate governance as a part of socially responsible business and financial decision making process in the area of dividend policy and indebtedness. We measured the level of corporate governance by corporate governance index, which contains information about the disclosure of annual reports, corporate governance information in annual reports, the content of corporate governance statements, boards of companies, remuneration of board members, risk management, audit,remuneration and nomination committee characteristics. We have compiled the first corporate governance index in Slovakia and we found inspiration in foreign studies with respect to the specifics of the Slovak financial market.The most important contribution of this paper is the finding that the application of the principles of corporate governance affects financial decisions of companies. There is a correlation between the responsible application of corporate governance principles and the total debt of companies. And also, there is a correlation between responsible application of corporate governance principles and the amount of dividends paid to shareholders.

Corporate Governance and Development: The Case of Uzbekistan

This paper discusses the concept of corporate governance and its application as well as its development in the case of Uzbekistan. The paper briefly focuses on the history of the corporate governance and provides different approaches, which were used to explain the underlying concept of corporate governance. This review of main definitions is followed by necessary regulations adopted for improving the practice of corporate governance in Uzbekistan. The paper also mentions important steps taken in order to develop corporate government principles. Moreover, the legislation of corporate governance is also thoroughly discussed through the paper. Finally, the paper discusses the application of corporate governance principles of developed countries including Germany, USA and UK.