Concept Of Corporate Governance Research Articles

Mediating Effect of Islamic Social Reporting on the Relationship between Good Corporate Governance and Company Value: The Case of the State-Owned Enterprises

The concept of Good Corporate Governance (GCG) is related to the disclosure of Islamic Social Reporting (ISR) which guarantees that the funds invested in the company are well managed and will provide adequate returns so that this can attract investors and indirectly can increase the company value. This research aims to analyze the indirect effect of GCG rating on company value through the disclosure of ISR and it also attempts to analyze the direct effect of GCG and ISR toward company value, and the effect of GCG towards ISR. This research used quantitative and descriptive approaches with secondary data. The state-owned enterprises in the manufacturing and mining sector listed in the Indonesian Sharia Stock Index (ISSI) were selected as the sample of the study. The method used in this study includes descriptive statistical analysis, partial least square, and mediation test. The result shows that GCG has a positive effect on company value and ISR disclosure, while ISR disclosure does not affect company value. However, GCG does not affect company value through ISR disclosure. This indicates that ISR disclosure has no mediation effect on the relationship between GCG and company value.

KURUMSAL YÖNETİM ENDEKSİNDE YER ALAN VE YER ALMAYAN FİRMALARIN FİNANSAL ORANLARININ KARŞILAŞTIRILMASI: BIST ÖRNEĞİ

Kurumsal yönetim kavramı ilk olarak OECD tarafından 1999 yılında oluşturulmuştur. Küreselleşen dünyada hızla kabul gören ve yayılan bu kavram ülkemizde 2003 yılında kabul görmeye başlamıştır. Ülkemizde kurumsal yönetim endeksine ilk olarak 2007 yılında 5 şirket dahil olmuştur. 2018 yılında ise kurumsal yönetim endeksinde işlem gören 47 şirket bulunmaktadır. Bu çalışmanın amacı kurumsal yönetim endeksinde yer alan şirketler ile bu endekste yer almayan şirketler arasında finansal oranları açısından anlamlı farklılıklar olup olmadığının araştırılmasıdır. Çalışma kapsamında incelenen firmalara ait 2010-2018 yılları arasındaki veriler kullanılmıştır. Çalışmanın inceleme grubu kurumsal yönetim endeksinde yer alan ve yer almayan firmalardan oluşmaktadır. Aynı sayıda firma kurumsal yönetim endeksi dışından firma büyüklüğü ve faaliyet gösterilen sektör kriterleri dikkate alınarak seçilmiştir. Çalışmada kurumsal yönetim endeksinde yer alan toplam 47 firmadan finans sektöründe faaliyet gösteren ve kullanılacak değişkenlerin hesaplanması için gereken verileri eksik olan 17 firma inceleme kapsamı dışında bırakılmıştır. Bu kapsamda yapılan incelemeler sonucunda kurumsal yönetim endeksinde yer alan şirketler ile yer almayan şirketler arasında finansal oranları bakımından anlamlı farklılıklar olduğu tespit edilmiştir.

CORPORATE GOVERNANCE: THE GATEWAY TO A ROBUST CORPORATE FINANCIAL PERFORMANCE IN MALAYSIA

In recent years, with corporate scandals and the global financial crisis, the emerging concept of 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. Corporate governance is seen as an important tool for the financial performance of companies, and investor investment decisions have become a more serious topic, so the relationship between corporate governance tools and measurement of financial performance has attracted researchers' interest in the past decade mainly in developed and developing cities. 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 on KLSE. Like previous research, firm, age, firm size, board size, CEO duality, board composition, board committees is the independent variables and their influence is to measure the financial ROA, ROE and Tobin's q , all kinds of test is used to investigate the relationship such as descriptive analysis, Pearson moment related test and regression using first data over a period of time.

Risk management in corporate governance

Abstract In this paper I want to present the place and role of risk management within an organization in corporate governance. Thus, the risk management of an organization consists of defining the risk, identifying and evaluating the impact and probability of materialization and, subsequently, establishing appropriate ways to manage the significant risks. According to some authors, the risk management of an organization is among the newcomers in the context of the concept of corporate governance, which brings a holistic perspective, as an integrating factor of the parts of a whole, which is the organization. At the same time, it can be emphasized that, according to the standards regarding strategic risk management, risk management should become an integrated part of the way any organization works; and in other ideas, being the basis of management approaches, it should not be separated from the daily activities of any organization. In corporate governance, in any entity, risk management is necessary because both in the company and in the environment in which it operates, there are uncertainties about the nature of the threats in achieving the objectives, or the nature of the opportunities. Any manager must pose the problem of managing the threats, because, otherwise, not reaching their objectives, they would be disqualified, or to take advantage of the opportunities for the benefit of the organization, proving their efficiency. If uncertainty is an everyday reality, then the reaction to uncertainty must become a permanent concern.

BOARD MEMBERS’ RESPONSIBILITY IN A LIMITED LIABILITY COMPANY. THE PERSPECTIVE OF CORPORATE GOVERNANCE

The aim of the article is to evaluate legal solutions contained in the Act of 15 September 2000. Code of Commercial Companies concerning civil and criminal responsibility of board members in a limited liability company. The evaluation of legal solutions was based on the concept of corporate governance. It was assumed in the considerations that legal responsibility is an incentive to encourage board members to act in the interest of the company’s creditors, company and shareholders. In accordance with the regulations on civil law responsibility of the board members, the protected good is the good of the creditors and the company. The adopted legal solutions protect the shareholders in an indirect way. Under criminal law, the legislator penalises those actions or omissions of board members which harm a wider range of stakeholders, i.e. the company’s creditors, company, shareholders, contractors. In conclusion, it is emphasised that the Act of 15 September 2000. Commercial Companies Code comprehensively and exhaustively regulates the issue of responsibility of board members. However, a full assessment requires an analysis of the judicial and legal practice, which is not under consideration

БРИТАНСКАЯ КОНЦЕПЦИЯ КОРПОРАТИВНОГО МЕНЕДЖМЕНТА С ТОЧКИ ЗРЕНИЯ СОЦИОЛОГИЧЕСКИХ ТЕОРИЙ УПРАВЛЕНИЯ

Актуальность исследования обусловливается значением, которое имеет эффективное корпоративное управление для деятельности компании в современных условиях. Дается обзор экономической ситуации, сложившейся в современной Великобритании, а также особенностей устройства и функционирования британского бизнеса. Исследуется влияние на политику британских корпораций такого внешнего фактора, как действующее в стране законодательство. Прослеживается связь между системой ценностей, сложившейся на протяжении длительного исторического времени в британском обществе, и системой ценностей, существующей на уровне отдельной корпорации. Рассматривается общий механизм управления, что дополняется изучением функций его отдельных участников. Сравниваются статусы и сопряженные с ними роли, выполняемые акционерами и представителями высшего менеджмента компании. Анализируется структура совета директоров. Раскрываются принципы принятия управленческих решений, степень участия в этом процессе рядовых сотрудников, а также черты личности образцового руководителя. Описываются правила и традиции социального взаимодействия в организации, а также влияние иерархического устройства британского общества на формирование системы статусов и ролей в корпорации. Затрагиваются вопросы, связанные с проблематикой повышения производительности труда, кадровой политикой, подготовкой руководящего звена, а также степенью открытости инновациям. Цель: определение и характеристика показателей эффективности корпоративного управления на примере британской концепции. Методы: социологический анализ, сравнение, обобщение и систематизация на основе теорий М. Вебера и Э. Мэйо. Результаты заключаются в раскрытии характерных черт процесса управления корпорацией в современных социально-экономических условиях, определении факторов, которые влияют на формирование управленческих решений, а также важности изучения британской концепции корпоративного менеджмента. Вывод: отмечается, что британская концепция управления корпорацией в значительной степени соответствует принципам, изложенным в рамках бюрократической теории М. Вебера и доктрины «человеческих отношений» Э. Мэйо.

CORPORATE SOCIAL RESPONSIBILITY, SOCIAL AND COMMUNITY DEVELOPMENT PROGRAM AS THE IMPLEMENTATION OF GCG AT PT PLN (PERSERO)

The implementation of the Corporate Social Responsibility (CSR) program is one implementation concept of good corporate governance. Good corporate governance regulates the relationships of all stakeholders that can be fulfilled proportionally, avoid mistakes in corporate strategy and ensures that mistakes can be corrected immediately. PT. PLN (Persero) is a State-Owned Company (BUMN), a company engaged in the electric energy has a commitment to improve the quality of people's lives through electricity and make electricity as a driving force for economic activities and environmentally sound businesses. PLN business objectives will be achieved if the Company is able to maintain a balance of economic, social and environmental performances. The obtained economic value is eligible for the benefits of the community, the environment, employees and customers, through quality and sustainable social and environmental responsibility programs Social responsibility programs that meet people’s needs, improve living standards and expand employment opportunities, positive interaction between PLN and the community will increase their sense of belonging and help maintain PLN installations in their residential areas.

Communication between government and business entities and challenges of creation of “digital government”

The present paper consists of two parts. In the first part, the issues of communication between government and business entities have been considered. The role of the communication for the modern society development has been assessed. Implementation of concepts of open government, public participation and corporate governance are the requirements to the governments who would like to “keep in touch” with business entities. In many countries, cooperation, awareness and continuous interaction not only with citizens, but also with business entities became important factors of changes in the system of management, especially in the government information policy. In such countries, a shift is observed of regulatory function toward more open and more interactive interaction. Business entities have a real chance now to influence the improvement and development of public policy and management system. The publications on this subject mainly those published abroad, have been analysed. A particular emphasis is on the characteristics of communication channels: reliability, speed and effectiveness (efficiency). In the second part of the paper, the issues of creation of “digital government”, as well as special aspects of creation of “digital government” in developing countries have been considered, although in many ways the processes of “digitalization” of government organs are characteristic for the developed countries as well. It has been noted, that the implementation of digital information technologies and digital communications in the public sector organization would have a favorable impact on the way the public services are provided. With proper implementation, the digital government may decrease the cost of provision of public services and establish conditions for better contacts with citizens, especially in distant and less populated regions. Digital government can also influence the creation of better transparency and accountability of the decisions made, stimulate the development of local digital culture and promote the development of democracy. To determine the efficiency of any particular act of communication the concept of “communicative result” is introduced. The cultural dependence of the communication result has been noticed.

Implikasi Corporate Social Responsibility Dalam Good Corporate Governance Untuk Mengurangi Konflik Keagenan

The purpose of writing this article is to identify, study, map research related to CSR in reducing agency conflict. This article begins with the presentation of the concepts of Good Corporate Governance (GCG), Corporate Social Responsibility (CSR), CSR in GCG, and agency conflict. Identification is made by collecting articles in the field of financial management that are related to CSR, agency conflict, and corporate value. Furthermore, an assessment of these studies is carried out to determine the results of each article. Articles are grouped into two articles that support the existence of agency conflict in CSR and group that do not have agency conflict.The method of review of CSR and agency conflict is carried out using previous studies. The identification, assessment and mapping of prior studies are not limited to new studies (less than ten years) but also reviews of more than 20 years. Based on the results of previous research, mapping can be synthesized the influence of CSR in reducing agency conflict.The Implementation of CSR related to agency conflict in the field of financial management is still being debated. Based on empirical evidence, the results are still inconsistent. CSR activities that synergize financial performance, the environment, and society can reduce the use of cash flow that benefits managers so that it will increase the value of the company. On the other hand, empirical evidence that does not support CSR considers that managers use CSR for personal gain.Keywords: GCG, CSR, Agency Conflict

Model Pengembangan Teori Islamic Corporate Governance

Corporate governance becomes an interesting discussion when financial crisis occurs caused by financial scandals in 1980. Since then, many corporate governance concepts have emerged, including the concept of Islamic corporate governance (ICG). However, ICG research is still limited to the discussion of methodology development science. This study attempts to explain the development model of Islamic corporate governance theory by using the literature review method. The result of this study indicates that the development model of Islamic corporate governance theory can use a non-modification model that comes from the teachings of Islam and non-modification model that combines various sources.

Corporate Governance and Organisational Survival in Manufacturing Firms in Port Harcourt

This study examined the correlation between corporate governance and organisational survival in manufacturing firms in Port Harcourt. It sought to proffer solutions to survival challenges experienced by firms, through an in- depth application of the concept of corporate governance. Data was collected from 198 management staff through the use of questionnaire. The data was analysed by the use of descriptive statistics and Spearman’s Rank Order Correlation Coefficient. The result revealed a positive relationship between the dimensions of corporate governance board independence and board supervision, and the measures of organisational survival (Innovation and adaptability. Also, the result showed that organisational structure significantly moderates the relationship between corporate governance and organisation survival. The study concludes that board independence has a significant and positive correlation with organisational survival in manufacturing firms. Based on the findings it was recommended that manufacturing firms should ensure that their boards are independent and board supervision should be enthroned to enhance efficiency and corporate survival. Keywords: Corporate Governance, Organisational Survival, Board independence, Board size, Innovation, Adaptability DOI: 10.7176/JRDM/64-06 Publication date: April 30 th 2020

Corporate Governance and Business Sustainability of Deposit Money Banks in Nigeria

The global financial crisis that swept the financial markets and economies around the world, causing bankruptcies and resulting economic recession has brought the concept of corporate governance into the limelight. Hence this study examined the effect of corporate governance practices on sustainability of deposit money banks in Lagos Nigeria. The study adopted a quantitative methodology using the cross-sectional survey design. The population of the study comprised of fifteen selected deposit money banks operating in Nigeria as at March, 2019. Data was collected using a well-structured and validated research questionnaire with Cronbach's alpha ranging from 0.721 to 0.849. Data were analysed using multiple regression analysis. The study revealed that transparency and accountability jointly have a significant effect on business sustainability (R2 = 0.084, p = 0.000 < 0.05). Hence, the study recommended that money deposit banks should adopt openness in their practices, they should be transparent in all they do at board level and should be committed to accountability at all levels of bank management in order to sustain customer's confidence.

Implementing good corporate governance in zakat institution

Implementation of good corporate governance in zakat institution is very important to strengthen the reputation of zakat institution and gain trust from Muzakki (zakat prayer) for long term sustainability. Zakat institution has an intermediary function that is collect zakat from zakat prayer and pay zakat for the recipient (mustahik). Therefore the reputation from zakat institution is very important. The study aims to describe the general concept of corporate governance and how to apply the concept of corporate governance to zakāh administration in Indonesia. This study uses the methodology of the qualitative approach by describing the implementation of Zakat governance through an annual report from Rumah Zakat in 2015. The result of this research can describe the general concept of corporate governance and how to apply the concept of corporate governance to zakāh administration in Indonesia, especially in Rumah Zakat Indonesia.

Corporate Governance and Audit Risk

Corporate Governance is a contemporary issue in the business world. It could be described as a company’s overall efficient control to ensure transparency and full disclosure in organization business dealings. Despite organizations establishing various forms of Corporate Governance incidence of corporate failures still, occur which poses audit risk and affects auditors' reputation. This study was a form of explorative research which investigated how corporate governance affects Audit client audit risk. We carried out an in-depth study of past literature to gain a better understanding of the concepts of corporate governance and audit risk and to also know the findings of previous researches on the subject. Our study concluded that when there is good governance in the organization, the quality of the financial report will improve and this will ultimately reduce audit risk.

Corporate governance and performance of medium-sized firms in Nigeria: does sustainability initiative matter?

PurposeThe non-existence of the corporate governance (CG) concept for practices by non-financial medium-sized firms (MSFs) in Nigeria informed. This study aims to determine whether CG practices influence firms’ performance and whether sustainability initiative (SI) mediates the relationship between CG and MSFs’ performance in Nigeria.Design/methodology/approachA total of 300 firms were selected on convenience sampling basis from South Western Nigeria using a structured questionnaire. The authors used Statistical Package for Social Sciences for exploratory data analysis and hypotheses were tested using covariance-based structural equation modelling.FindingsThe results show that CG has a significant positive effect on performance [financial performance (FNP) and non-financial performance (NFP)] and SI. SI has a mixed impact on performance, e.g. a significant positive impact on NFP but insignificant negative impact on FNP. Similarly, SI has a combined mediating effect in the relationship between CG and performance, e.g. fully mediates CG → NFP and does not mediate CG → FNP. Firms are to invest in social and environmental initiatives substantially. CG codes will complement the International Financial Reporting Standards for MSFs.Research limitations/implicationsThis study supports the assumptions of theories (institutional, stakeholder and agency) as the basis for the usage of multiple approaches to determine the outcome of hypotheses, especially in developing climes.Practical implicationsThe study contributes to CG and performance literature by examining the mediating effects of SI. The paper also shows the necessity to emphasise NFP aspect. Policymakers should evolve CG codes to encourage stakeholders to believe more in the corporate existence of MSFs for strengthening capital-base and quality personnel engagement.Originality/valueTo the best of the authors’ knowledge, this is one of the first empirical attempts showing the evidence on the relationship between CG and NFP in Nigeria.

GLOBAL ACCOUNTING REGULATION: IMPACT OF IFAC ON FINANCIAL REPORTING QUALITY

This paper provides an analysis of various dimensions of accounting and corporate governance that have led to the currently troubling state of affairs in the financial reporting environment. Good Corporate Governance (GCG) is a mandatory requirement in today’s corporate world by every stakeholder groups. Failure of giant corporate groups in the last twothree decades strengthens the demand further. And surprisingly, in some of such failures, accounting as a discipline is held liable. The way accounting is practiced or the interpretations that may give different prescriptions in similar situations are some dark areas that may open some scope for the corrupted accountants. The paper covers the concept of corporate governance, its legal framework, its current status and how accounting may be practiced to protect corporates from corruption by establishing governance. The paper analyzes how IFAC is succeeding as an international standard setter with an established place in the global financial infrastructure and it reveals a growing reliance on governance by experts together with a growth in influence of the large, multinational accounting firms. Until corporate boards are truly independent of corporate management and are knowledgeable enough to act as effective shareholder advocates, changes in accounting will be of limited impact.

ПОНЯТИЕ КОРПОРАТИВНОГО УПРАВЛЕНИЯ В РОССИЙСКОМ ГРАЖДАНСКОМ ПРАВЕ

ПОНЯТИЕ КОРПОРАТИВНОГО УПРАВЛЕНИЯ В РОССИЙСКОМ ГРАЖДАНСКОМ ПРАВЕ

Corporate governance in the indian it sector- trends and implications

Corporate governance is basically the system by which business corporations are directed and controlled. The structure of corporate governance specifies the distribution of rights and responsibilities among different participants in the corporation, such as, the board, managers, shareholders and spells out the rules and procedures for making decisions on corporate affairs. Corporate governance guidelines are essentially policies that are put in place, to facilitate seamless operations of an organization vis-a-vis factors like compliance with law, allocation and distribution of roles and responsibilities, inhibiting concentration of powers in a few hands or abuse of power, etc. In India, the Securities and Exchange Board of India (SEBI) appointed a committee under the Chairmanship of Kumar Mangalam Birla to recommend a code of corporate governance. The report was submitted by the committee in November 1999 and accepted by SEBI in December 1999. Listed companies were asked to comply with the guidelines by 2001. Infosys was one of the early adopters and had accepted the recommendation of both CII & SEBI. Through this rigour, the company was able to manage its company affairs, much better than its peers. As a result, the company had received many awards and recognitions for its corporate governance endeavour. However, since the late 2016, the company has been slipping on various corporate governance issues. A huge fracas between the founding members and the management, and the developments thereafter, had led to a lot of speculation on the company’s own corporate governance standards. Through this paper, we wish to discuss the concept of corporate governance, its utility for corporates, the genesis in India, early mover - Infosys and the misses on this front the company has reported of late.

Konsep Islamic corporate governance sebagai tata kelola perusahaan Bakpiapia Djogja

Purpose — This study tries to build a paradigm and implementation of Islamic corporate governance in a company.Research method — This research uses qualitative research methods and descriptive data. The sample in this study is Bakpiapia Djogja company. The data used is a report on the implementation of Islamic corporate governance.Result — The study found that Bakpiapia Djogja company has implemented a small part of the principles contained in the concept of Islamic Corporate Governance.

Developing sustainable tax strategies in the post-BEPS era.

<p>As never before, the concepts of tax planning, corporate governance and sustainability are having a close relation. Despite the fact that governments have tackled tax avoidance schemes, the director´s duty of care still obliges them to seek the best tax optimization for the Company they manage. In that sense, developing sustainable tax strategies that comply with transparent post-BEPS policies should could be considered as a standard of good corporate tax governance in today’s entrepreneurial world.</p><div> </div>