Contribution To Corporate Governance Research Articles

The Impact of Intellectual Capital and Corporate Governance on Bank Performance in Vietnam

Purpose – The importance of corporate governance and intellectual capital on financial performance has largely been ignored in emerging markets. The banking sector is considered to accumulate a higher level of intellectual capital and to adopt a better corporate governance system. We aim to examine the contribution of these two important aspects to the performance of Vietnam's banking sector. Design/methodology/approach – This paper utilizes data collected from the annual reports of banks in Vietnam from 2011 to 2021. The modified value-added intellectual coefficient (MVAIC) model is adopted to measure a bank's intellectual capital efficiency. In addition, the generalized method of moments is utilized to ensure the robustness of the findings. Findings – Empirical results strongly confirm that intellectual capital positively contributes to a bank's performance. In terms of corporate governance, the findings indicate that board size, board remuneration and major shareholders holding more than 20 percent of outstanding shares are the three most important factors that contribute positively to banks' performance. In addition, human capital efficiency and capital employed efficiency positively impact a bank's profit. Practical implications – Our study provides valuable evidence and implications for policymakers in managing and enhancing corporate governance and intellectual capital efficiency within the Vietnamese context, particularly in the banking sector. Originality/value – To the best of our knowledge, this is the first empirical paper conducted to examine the contribution of corporate governance and intellectual capital on banks’ performance in Vietnam.

CORPORATE GOVERNANCE CODES AND INTELLECTUAL CAPITAL DISCLOSURE (ICD) OF LISTED BANKS IN NIGERIA

Since the corporate global scandal of early 2000 underscore the need for firms all over the world to re-examine their Corporate Governance-COG codes and conducts. This increased scholarly debate spurred the need to examine the contribution of corporate governance codes to Intellectual Capital Disclosure-ICD. The content analysis approach was used to generate data used for the panel regression (random effect model). The study adopted the panel regression (random effect model) confirmed that, Accountability (ACT), Leadership Effectiveness (LEF), Remuneration Packages (REP), and Shareholder’s Relationship (SHR) has a positive yet considerable (significant) effect on ICD. By implication, the higher the Accountability (ACI), Leadership Effectiveness (LEF), Remuneration Packages (REP), and Shareholder’s Relationship (SHR), the more Nigerian banks disclose intellectual capital. Hence, the paper concludes that, corporate governance-COG codes improve ICD of banks in Nigeria provided that, shareholders relationship is harmonious. In light of the researcher’s findings, the paper recommend that, for regulators of the Nigerian banking industry to ensure that, the board of directors-BoDs of DMBs in Nigeria is accountable, they must ensure that, the board of directors-BoDs should make annual disclosures to shareholders that represent a fair, accurate and comprehensive assessment of the corporation's positions and corporate outlook. Lastly, regulators of the Nigerian banking industry should ensure that, efficient bank managers are rewarded dully while inefficient bank managers should be punished accordingly. This will serve as a deterrent to others.
 Keywords: Corporate Governance Codes, Intellectual Capital Disclosure (ICD), Listed Banks.

Corporate governance and performance in the UK insurance industry pre, during and post the global financial crisis

PurposeDue to stakeholders’ concerns on the contribution of corporate governance in monitoring insurance companies during financial crisis, this study aims to investigate whether and how various corporate governance practices would have affected firm performance of listed and non-listed insurance firms in the UK during financial crisis.Design/methodology/approachThis study uses a unique manually collected data set from listed and non-listed insurance firms in the UK and applies different regressions models to test the hypotheses and to address the endogeneity problem.FindingsThe findings show that board non-duality and the presence of a majority shareholder improve firm performance in insurance companies. Furthermore, the findings for the sub-samples indicate a stronger positive association between board of directors and firm performance in listed insurance companies after the financial crisis, while a positive impact has been found between large shareholders and external audit firms in non-listed insurance companies before and during the crisis.Practical implicationsThe results offer important practical implications for the government, management, shareholders and policymakers. For example, regulators and policymakers should benefit from these results to revise the recommendations for corporate governance mechanisms that prove to be effective on firm performance, as well as those mechanisms that have different or unexpected effects among listed or non-listed firms and/or during the turbulent periods. Investors should be aware of those specific corporate governance mechanisms that would have higher effect on performance of UK insurance firms in which they are considering to invest in.Originality/valueThis study contributes to the current literature by exploring the effect of corporate governance on financial performance by comparing between listed and non-listed insurance companies during financial crisis. Further, to the best of the authors’ knowledge, this is the first study to use two new insurance-related performance measures, the revenue growth ratio and the adjusted combined ratio, as performance proxies to explore whether these new variables create any insights.

Contribution of Corporate Governance on Performance of Listed Companies in Kenya

Leadership is a process of social influence in which one person can enlist the aid and support of others in the accomplishment of a common task. Corporate governance has dominated leadership policy agenda in developed market economies for more than a decade and African continent is gradually adopting it on their policy agenda on leadership and governance of their organisations. The Nairobi Securities Exchange (formerly Nairobi Stock Exchange) (NSE) is the principal stock exchange of Kenya. This study was to establish the contribution of Corporate Governance on leadership performance of Listed Companies in Kenya. The target population consisted of the 62 listed companies that had been listed at the NSE in 2015. The study used primary data which was collected using questionnaires. Data was analysed and presented using the Statistical Package for Social Sciences (SPSS). Descriptive and inferential statistics were used to present the results of this study. The study found that good corporate governance is a major ingredient to leadership performance and there must be deliberate effort by company leadership to create systems that ensure there is effective corporate governance. The study recommends that board of directors should actively promote long term performance, take control of the company business and significantly promote growth in financial performance, market performance, shareholder return, share value and customer satisfaction. The study encourages company leaders to draw strong strategies to counter any political interferences, ethnicity and nepotism which are the major cancerous effect to leadership styles and structures, leadership composition, leadership independency, stakeholders’ ownership and ownership concentration which are significant factors to performance.

Women’s Skills and Aptitudes as Drivers of Organizational Resilience: An Italian Case Study

The economic system has experienced heavy consequences caused by the recent pandemic. This paper investigates the interaction between the crisis and organization reaction, focusing on the female managerial role and contribution to overcoming the crisis in male-owned and managed companies. To achieve the research objectives, we used a qualitative research method based on an explorative case study. The results show that female managerial skills have fostered organizational resilience in terms of: (i) the attitude to change; (ii) the ability to promote new initiatives; and (iii) the ability to have initiated, consolidated, and managed solid formal relationships with institutional stakeholders. Our results also highlight the decisive contribution of corporate governance (even if male-oriented) in favoring the growth and autonomy of women in positions of responsibility. This contribution is evidenced by (iv) increasing delegation of roles and responsibilities in managing relationships with institutional stakeholders to women managers; and (v) recognizing women managers’ talents in terms of career progression. The originality of this work is represented by the survey that aims to determine how the female management of businesses managed and owned by men can foster the resilience of companies. On the other hand, this paper investigates how female leadership drives organizational resilience during unexpected shocks, opening an interdisciplinary viewpoint.

NPO Funding in Italy: The Role and the Contribution of Corporate Governance

By adopting mainly the “principal-agent theory”, the study analyses how non-profit organizations (NPOs) corporate governance structure could increase the trust of the donors and therefore affect their ability to receive donations from taxpayers. Starting from a literature review we concentrated our attention on the non-profit sector where NGOs represent the largest category. In Italy, starting from 2006, all NPOs could receive funding deriving from taxes paid by citizens when making tax returns with the so called ‘5 per thousand’ of the personal income tax. We analyzed the corporate governance disclosure practices of the first Italian 100 NPOs that received the highest donations from 5 per thousand. In particular, we elaborated a CGI index that includes governance and informativeness. This paper shows how an efficient and transparent corporate governance structure motivates the donors to donate 5 per thousand to NPOs that demonstrate good corporate governance. The findings suggest that taxpayers are inclined to allocate 5 per thousand to organizations where the information level, from a governance point of view, is high, easily available and clear about the purpose in the specified field of research.

The Extent of Corporate Governance Contributions To Benchmarking Reports In The Performance Evaluation of Production Units (Case Study) In The Northern Cement State Company

The Extent of Corporate Governance Contributions To Benchmarking Reports In The Performance Evaluation of Production Units (Case Study) In The Northern Cement State Company

Antecedents and Outcomes of Corporate Governance: Evidence from Indonesia

This study empirically explores the relationship between three important decisions in financial theory and the business organization goals for 18 companies incorporated in the LQ-45 index listed on the Indonesia Stock Exchange (IDX) over the periods 2010-2017. The purpose of this study is to investigate the effect of investment opportunities, dividend policy and financial decision on firm value and to examine the contribution of corporate governance in moderating the effect between investment opportunities to firm value. This study employs panel data regression through Eviews 9 program specification methodology. The results of the panel data regression analysis indicate a positive and significant relationship between investment opportunities, financial decision, and firm value. The results also indicate that corporate governance has a significant negative moderating effect on investment decision to firm value.

Corporate governance and tax disclosure phenomenon in the Malaysian listed companies

PurposeThis paper aims to examine the impact of corporate governance internal mechanisms on tax disclosure in non-financial firms in Malaysia. Managerial ownership and incentive compensation are used as proxies to reflect corporate governance conduct.Design/methodology/approachThis study uses panel data set to analyse 286 non-financial listed companies on Bursa Malaysia for the years 2010-2012. Tax disclosure was gathered from the financial statements, particularly in the consolidated of tax expenses. Tax disclosure was measured using modified effective tax rate reconciling items. Multivariate statistical analyses were run on the sample data.FindingsThis study finds that managerial ownership and incentive compensation do not significantly influence tax disclosure. On the other hand, it is found that there are significant positive associations between each of firm size and industry dummy, and tax disclosure. This means that company-specific characteristics are important factors affecting corporate tax disclosure.Research limitations/implicationsThis study extends the work of previous studies by suggesting that the signalling theory and the agency theory are the main theories concerned with tax disclosure and corporate governance. The authors add an additional appreciation of the contribution of corporate governance from the interested parties’ tax disclosure evaluation in the Malaysian environment.Practical implicationsThe evidence found by this study has important policy and practical knowledge implications for the authorities, researchers, decisionmakers and firm managers. The findings provide them with some relevant insights on the importance of corporate governance practices from the companies’ perspectives and contribute to the discussion of who verifies and deduces from tax disclosure directed by companies.Originality/valueTo the best of the authors’ knowledge, this study is the first attempt to examine the influence of the corporate governance internal mechanisms on tax disclosure in a developing nation like Malaysia. Although this paper focuses on a single country, it contributes significantly to the debate about tax disclosure in relation to “comply or explain”, as suggested in the Code of Corporate Governance. This study shows that companies are trying to avoid as far as possible disclosing tax-related information.

Corporate governance, internal audit function and accountability in statutory corporations

The purpose of this study was to establish the contribution of corporate governance and internal audit function on accountability in statutory corporations. This study is cross sectional and correl...

“And of course our major contribution remains to run a decent business.” Making sense of Shell's sense-making in Nigeria during the 1990s

AbstractThe intellectual engagement with multinational enterprises in International Relations has found a new home within the narratives of global governance and corporate social responsibility. Both narratives seem to agree that the role of business has changed as state capacities to provide governance assumingly have diminished and, based on broader social and political responsibilities, enterprises began to participate more actively in the provision of collective goods. Increased participation alone, however, does not reveal how corporate actors define and make sense of their responsibilities and their roles within global governance. In fact, focusing on corporate responsibilities and corporate governance contributions does not consider enterprises as actorsin their own rightwho actively interpret and respond to changes in their normative environments. To fill this gap, the article proposes a framework that conceptualizes corporate agency as inherently social and creative. This framework, which can be applied to different contexts, is illustrated by reconstructing interpretative frames and self-understandings advanced by Shell in response to its crisis in Nigeria during the 1990s. Based on this reconstruction, Shell failed to develop and communicate a clear understanding of its social responsibilities, and its overall integration into global governance is likely to remain an ambiguous process in which uncertainty and indeterminacy prevail.

Corporate Governance and Financial Crises

This paper focuses on answering the three following questions: (1) Does corporate governance matter in financial crisis? And how does it matter? (2) Does the effect of corporate governance level on crisis in developing countries differ from that in developed countries? Why? (3). Does weak corporate governance make countries more vulnerable during global financial crisis? Theoretically, the contribution of corporate governance to financial crises is through two channels. The first channel is that weak corporate governance increases aggressive risk taking of financial institutions and the collapse of latter may cause a crisis (Tarraf (2011)). The second explanation is proposed by Johnson and all (2000) that weak corporate governance can cause an increase in net outflow of capital since the foreign investors lose their confidence. As a result, depreciation of exchange rate increases. Using the macroeconomic data and Worldwide Governance Indicators of 14 countries from 1996-2014, I find that besides economic fundamentals, better corporate governance reduces significantly the probability of financial crises, especially in developing countries and Asian ones. This effect remains unchanged in the global crisis period for the developing countries and the Asian ones while it seems to be smaller for the developed ones. However, the effect of corporate governance on the relative change of exchange rate is limited. Corporate governance indicators only influence the exchange rate in developing countries and this effect still remains during global financial crisis.

The Impact of Corporate Governance on Market Performance

In this study, we examine how corporate governance affects portfolio management. Investors are expected to opt for a judicious trade-off between risk and return. Such an objective can be achieved through the contribution of corporate governance which is assumed to align manager and shareholders interests and minimize agency conflict.Our results show that governance structure affects risk and return. However, this impact is not the same whether we use market or accounting measures (whether before or after 2000). Moreover, we find that governance quality has an impact though various mechanisms on excess return and idiosyncratic risk for active portfolio strategies.