Corporate Governance Of Companies Research Articles

Study On The Implementation Of Good Corporate Governance In The Business Sector State Owned Banking In Langkat District

This research aims to examine the implementation of good corporate governance in the business sector state-owned banking in Langkat Regency. This research uses research methods qualitative. The data collection technique used in this research is method observation, interviews and documentation. Data analysis techniques used in research This is a qualitative data analysis technique. The data analysis component used is reduction data (data reduction), data presentation (data display), and drawing conclusions (conclusion drawings). The research results show that the role of internal audit has an influence on implementation of the principles of good corporate governance in the company. Obstacles and Obstacles in implementing Good Corporate Governance in companies, namely the cause is HR knowledge and understanding of GCG principles is still lacking. Lots of human resources who have not attended training, seminars. Apart from that, the principle of transparency is also implemented hampered by inadequate facilities and infrastructure, such as the unavailability of a website. Regarding Independence, Internal Audit at Bank Mandiri is objective in nature carry out audit activities. Apart from that, all internal audit members at the Bank Mandiri Langkat branch, has no family relationship with the Management or staff at the Langkat branch of Bank Mandiri.

Do independent directors enhance better corporate governance in companies in India?

PurposeThe effectiveness of independent directors in making autonomous decisions for better corporate governance in organizations has often been questioned. This paper aims to investigate their role in company’s decision making in India and the reasons behind their ineffectiveness.Design/methodology/approachThis paper examines the regulatory environment and ongoing reforms in which independent directors operate. It identifies crucial factors such as ownership patterns, the appointment and selection process that affect their autonomy. The analysis draws from newspaper articles, blogs, India’s regulatory requirements, The Companies Act and relevant related literature.FindingsThe findings reveal that the independence of directors remains largely in form but not in function. This paper recommends a fair and more robust selection through an independent authority, and disclosure of the resignations of independent directors. Independent directors should be given more powers and their risk-reward scheme should be analyzed.Originality/valueThe paper emphasizes the need for independent directors to be truly independent from the senior management, promoters, and other existing directors. It calls for tighter and more transparent appointment procedures to ensure that independent directors are not influenced by senior management and can bring objectivity to the company board.

Corporate Governance and Financial Performance of Listed Firms in Nigeria

The objective of this study was to investigate the impact of corporate governance practices on the financial performance of listed companies in Nigeria. The study encompassed three industries: manufacturing, finance, and oil and gas, spanning the years 2010 to 2020. Employing a content analysis approach, data were collected from corporate websites and the Securities and Exchange Commission website. A total of 33 businesses were selected for the study. The study's analysis revealed that a majority of the corporations disclosed the majority of their corporate governance policies. Notably, the banking industry exhibited the highest level of corporate governance disclosure compared to other sectors. This implies that a company's decision to publish its corporate governance information online in Nigeria might be influenced by the regulatory environment of the sector. However, intriguingly, the research did not establish a correlation between a company's corporate governance score and its financial performance. Nevertheless, there was notable variation in the extent of corporate governance reporting across different sectors. In light of these findings, the report recommends that the Securities and Exchange Commission's code of best practices should be made obligatory for all industries in Nigeria. Furthermore, the establishment of a compliance team is advised to ensure that businesses across all sectors in Nigeria adhere to the regulatory mandates outlined in the code of corporate governance.

Corporate Governance And Company Value: An Investigation Into The Role Of ACSG Score

This study investigates the complex relationships between Good Corporate Governance (GCG) scoring, specifically the ASEAN Corporate Governance Scorecard (ACGS) score and company value. The ACGS score, a standardized measure of corporate governance, is used to assess the performance of publicly traded companies in Indonesia from 2017 to 2020. The study reveals a significant negative impact of the ACGS score on firm value, suggesting that while the ACGS score provides a standardized measure of corporate governance, it may not fully capture the nuances of individual company practices. The checkbox-based nature of the ACGS score might be seen as a mere compliance requirement rather than a true reflection of the company's corporate governance performance. However, when control variables are introduced, the effect of the ACGS score on firm value weakens and becomes insignificant. This suggests that the firm value is influenced more by financial performance compared to corporate governance performance. The study concludes that while the ACGS score can provide some insights into a company's corporate governance performance, its impact on firm value can be overshadowed by other factors. Therefore, a comprehensive approach that considers various control variables is necessary to accurately assess firm value.

РЕФОРМУВАННЯ КОРПОРАТИВНОГО УПРАВЛІННЯ ГІРНИЧОДОБУВНИХ ПІДПРИЄМСТВ

The article is devoted to the study of the peculiarities of reforming the corporate management of enterprises in the mining industry. Challenges facing the industry are indicated. The role of corporate management is disclosed, the principles of such management are summarized. The advantages of corporate governance policy are outlined. Among the advantages, the following are highlighted: the possibility of wider access to financing, ensuring the protection of investors, maintaining the stability of the company. It has been investigated that the Government has set the task of introducing and ensuring compliance with corporate governance standards at the ten largest state-owned enterprises ofUkraine. The largest company in the mining industry - JSC "Naftogaz of Ukraine" was chosen as the object of the study. Considered how the process of reforming corporate governance took place in this company. The key elements of proper corporate governance of NJSC "Naftogaz of Ukraine" are: availability of full-fledged and effective management bodies; clear division of powers; functioning of the internal control system; elimination of political influence; creation of equal market conditions with private companies. It was determined that the attention of international organizations was drawn to the reform of the company's corporate governance. Experts of the Organization for Economic Cooperation and Development implemented two important projectsthat contributed to the implementation of the reform. The implementation of the corporate governance reform in Naftogaz of Ukraine led to the following changes: changes were made to the Company's Charter, the Ownership Policy was approved, new members of the Supervisory Board were elected, and a new corporate strategy was announced. It was concluded that the initiated reform of improving corporate governance by business entities remains an important priority for Ukraine. The success of the reform will depend on: the construction of the stock market and the maximum approximation of Ukraine to world standards; creation of a centralized body for state property management; avoiding political influence on the activities of companies; availability of professional stock managers; strengthening of regulatory influence

Corporate Governance Research in Asian Countries: A Bibliometric and Content Analysis (2001–2021)

Corporate failure suggests that weak corporate governance leads to frail institutions and exposes them to severe crises. Asian countries have faced financial crises in three different periods, most recently due to the COVID-19 pandemic. A crisis will trigger structural changes in corporate governance to enable firms to either respond to, or prevent, the reoccurrence of potentially similar events. The characteristic of corporate governance practice in Asian countries are also unique due to some institutional and informal factors. These will alter direction and future trend of research in corporate governance in Asian region. The objective of this study is to utilize a bibliometric analysis which focuses on research trends and themes, and citations (with additional inclusive visualization) and perform in-depth content analysis to trace the evolution and identify knowledge of corporate governance in Asian countries from 2001 to 2021. Following bibliometric analysis, a sample of 656 articles on corporate governance in Asian countries has been extracted and analyzed from the Scopus database. The results indicate that there is a growing of interest in corporate governance in Asian countries from 2001 to 2021. Eight major themes have been recognized: corporate governance, corporate social responsibility and financial performance, corporate strategy and performance, agency theory, corporate sustainability, audit and agency problems, firm size, and business ethics. Major findings, shortcomings, and directions for future research are also discussed in this study. In general, most cited articles related to corporate governance theme explain the importance of corporate governance in companies with the focus on preventing financial fraud, impact on earnings management, and cost of equity capital in the market and reporting methods.

Performance feedbackand firms search behaviors: Role of corporate governance in companies around the world

Research on firm’s motivation to undertake search behaviors in situations of positive and negative performance feedback is limited in empirical literature. In addition, the role of institutionalized corporate governance mechanisms in mediating firm’s aspiration-driven search behaviors is yet to be explored. Therefore, this study aims at examining whether firms around the world facing positive and negative performance feedback undertake different search behaviors. Furthermore, we test whether firm’s corporate governance mechanisms strengthen such search behaviors. This study reports that negative performance feedback positively influences firm problem-driven search behaviors, whereas positive performance feedback positively impacts its innovative search behaviors. Furthermore, we find a significant negative moderating influence of board strength, while a mixed positive influence of board effectiveness on firm performance feedback to carry out distinctive search behaviors. Therefore, we think that these findings would help the regulators and policy makers to strengthen their existing corporate governance mechanisms and regulations.JEL CLASSIFICATION: G30, G32, G34

Coalizão de acionistas e dividendos: evidências do mercado de capitais brasileiro

ABSTRACT This article examines the effect of the heterogeneity of shareholder coalitions on the distribution of dividends in companies listed in Brazil. To analyze the relationship between large shareholders and dividends, it is essential to consider the way the control is ensured. Large shareholders can share control by forming coalitions, and differences in the composition of coalitions can alter the incentives the cooperating parties have for the activity of monitoring. Based on shareholder agreements, we explore the heterogeneity among shareholder coalitions by presenting elements that can characterize the role of shared control in the corporate governance of companies in a market environment described by the concentration of control in a single large shareholder. This study presents potential economic and social impacts, as it is of particular interest to outsider shareholders, and even potential investors, to know how insiders can use dividend policy, since the distribution of profits tends to mitigate agency problems. To identify the shareholder coalitions we resorted to shareholder agreements. The analysis model was estimated using the two-stage system generalized method of moments (GMM-Sys) with unbalanced panel data for the period from 2008 to 2019. We discovered that the number of shareholders in the coalition and the leveraging of the voting rights of the biggest shareholder in the coalition are negatively related to the dividends distributed, and that the voting rights of the coalition are positively related to the dividends distributed. These results contribute to the principal-principal approach of agency theory and highlight that the incentives and capacity of shareholder coalitions to pursue private benefits of control depend on their own characteristics.

The Role of Corporate Governance in Investment Efficiency and Financial Information Disclosure Risk in Companies Listed on the Tehran Stock Exchange

This study’s primary purpose is to investigate corporate governance’s role in investment efficiency and financial information disclosure risk in companies listed on the Tehran Stock Exchange. A multivariate linear regression model based on the panel data model was used to test the research hypotheses. The results of the survey of 140 companies listed on the Tehran Stock Exchange from 2015 to 2021 indicate that investment efficiency has increased by increasing the quality of corporate governance. In addition, research findings show that improving the quality of corporate governance reduces the risk of financial information disclosure. The life cycle and firm size were used to evaluate the robustness of the results obtained in this study. It was observed that improving corporate governance in companies in the stages of growth and maturity increases investment efficiency and reduces the financial information disclosure risk. In contrast, in companies that are in the decline stage, it reduces investment efficiency and increases the risk of financial information disclosure. In terms of firm size, it was also observed that, in small firms, as corporate governance increases, investment efficiency decreases, and the risk of financial information disclosure increases. However, investment efficiency and financial information disclosure reduce risk by improving large companies’ corporate governance.

Mediating Role of Corporate Governance on the Effect of Earnings Management and Financial Risk on Firm Value

This study is to determine the effect of earnings management with discretionary accruals indicators and financial risk with debt to equity ratio (DER) indicators on firm value with price earning ratio (PER) indicators with corporate governance as a mediating variable with managerial ownership and institutional ownership indicators. The research method is quantitative with the object of research being the Property and Real Estate sub-sector companies listed on the Indonesia Stock Exchange (IDX) during 2015-2017 with all out observations of 87 information. The test results show that earnings management variables have a negative and significant effect on firm value. The financial risk variable has a negative and significant effect on firm value. The corporate governance variable has a positive and significant effect on firm value. The effect of earnings management on firm value has a negative effect on corporate governance as a mediating variable. This shows that corporate governance can reduce earnings management actions. The effect of financial risk on firm value has a negative effect by the company's administration as a mediating variable. This shows that corporate governance can reduce financial risk. The results of this study provide a theoretical contribution that supports agency theory and corporate governance, which in turn makes a practical contribution to the implementation of good corporate governance in companies.

Pengaruh corporate governance, perspektif fraud triangle, income smoothing dan karakteristik perusahaan terhadap fraud pada perusahaan manufaktur di Indonesia

The problems contained in this study are cases of fraud or fraud that still occur in companies listed on the Indonesia Stock Exchange. Corporate governance is considered as a solution to improve internal control so that it can reduce the number of fraud in the company. The purpose of this study is to analyze the effect of corporate governance, the motivation that arises through the fraud triangle theory, income smoothing, and company characteristics against fraud in companies engaged in the manufacturing sector listed on the Indonesia Stock Exchange. The research methodology used in this study is purposive sampling which produces 33 samples of companies for 5 years of research in the 2017-2021 period. The research model uses a panel of regression data that is processed using E-Views. The findings and contributions of this study are that corporate governance has a significant negative effect on fraud, income smoothing has a significant positive effect on fraud and company age has a significant negative effect on fraud. Meanwhile, the motivation to commit fraud described by the fraud triangle theory and firm size has no significant effect on fraud. The implications of this study are useful for management to determine areas that affect strengthening corporate governance in companies, reduce management aggressiveness in income smoothing actions and find out whether the level of debt ratios and changes in external auditors can increase motivation to commit fraud.

Impact of Competitive Strategy on Corporate Governance in Companies Listed on Vietnam’s Stock Market

In this study, we explores the relationship between competative strategy and corporate governance through the analysis of 562 non-financial companies listed on the Vietnam’s stock market in 2010-2019, thereby making judgments about competitive strategies to determine which strategy has a meaningful impact on corporate governance. It is found that a cost leadership strategy has a negative impact on corporate governance, and a differentiation strategy has a positive impact on corporate governance. In addition, our study provides evidence for further studies in this field and suggests some possible solutions for investors and regulators in Vietnam.

Impact of Competitive Strategy on Corporate Governance in Companies Listed on Vietnam’s Stock Market

In this study, we explores the relationship between competative strategy and corporate governance through the analysis of 562 non-financial companies listed on the Vietnam’s stock market in 2010-2019, thereby making judgments about competitive strategies to determine which strategy has a meaningful impact on corporate governance. It is found that a cost leadership strategy has a negative impact on corporate governance, and a differentiation strategy has a positive impact on corporate governance. In addition, our study provides evidence for further studies in this field and suggests some possible solutions for investors and regulators in Vietnam.

Companies and Sustainable Development: The Adequacy of Environmental Impact Assessment for the Management of Environmental Risks

The choice of the environmental risk management instrument to be used within the scope of corporate governance in companies is of paramount importance to avoid or mitigate the triple environmental responsibility to which they are exposed. In this sense, the following research problem arises: The Environmental Impact Assessment (EIA), an instrument of the National Environment Policy and a model of environmental risk management adopted by some companies, proves to be efficient, effective and effective for the fulfillment of the duty to protect the environmental balance and, therefore, for sustainable development? The present study aims to elucidate this research problem. To this end, analyzes were carried out on risk and environmental damage, from a perspective of the socioenvironmental function of companies today; the need for a new posture by companies in view of the reflexes of environmental risks in business activity; and the question of the adequacy or inadequacy of the EIA as an instrument of the National Environment Policy and as a model for managing environmental risks and damages, in the pursuit of sustainable development. The method of approach used was the deductive one, and the research was carried out using the method of bibliographic procedure, through which research was carried out on books, scientific articles and legislation. The result points out the inefficiency and ineffectiveness of the EIA for the management of environmental risks and, thus, for the fulfillment of the duty to protect the environmental balance by companies.

The Role of Institutional Investors in Corporate Governance of Their Portfolio Companies – The Case of Croatia

The goal of this research is to examine the involvement of institutional investors in the corporate governance of companies in their portfolio by analyzing characteristics of institutional investors with respect to the type of investment, investment time horizon, and degree of involvement in the process of managing a company. The paper will outline the attitudes of managers on the level of investors’ involvement in the governance process in order to identify determinants of investment decisions, decisions to take corrective actions to enhance corporate governance, or decisions to leave the ownership structure. A qualitative approach was chosen, consisting of a series of structural interviews with 25 fund managers of different types of institutional investors. The results indicate that institutional investors are involved in the corporate governance of their portfolio companies, and that control mechanisms they use include voting rights, direct communication with the management with the aim of discussing strategies for future development, and collaboration with other institutional investors in the ownership structure.

Beneficial Ownership and Corporate Governance in Ghana

One of Ghana’s most recent innovations in corporate law is the introduction of a statutory beneficial ownership disclosure regime. This article explores the contribution of the regime to corporate governance in Ghana. The article examines whether the disclosure regime would in any way enhance the relationship among the various stakeholders in both listed and private companies. It is argued that while the newly introduced statutory disclosure regime is likely to contribute towards promoting good corporate governance of companies in Ghana, that alone may be insufficient to protect the interests of a company’s stakeholders in the absence of other safeguards. Ghana, beneficial ownership disclosure, corporate governance, Act 992, Act 920, financial and economic crimes, central register, anti-money laundering, abuse of the corporate form

Impact of Board Diversity on Agency Costs in the Context of Agency Theory Approach: Evidence From Listed Companies in Sri Lanka

Effective corporate governance leads the way towards aligning the interest between managers and shareholders. Effectiveness of practicing the corporate governance of companies in Sri Lanka is debatable topic due to the variation between standard and actual practices. This study aims to examine the influence of board diversity on agency costs of companies listed in Sri Lanka as proposed by agency theory. The sample of this research consists of all companies listed in Sri Lanka, exclusive of bank and financial institutions which are practicing unique governance practices issued by Central Bank of Sri Lanka. The final sample consists of 180 companies during the period from 2013 to 2019. This study deployed panel regression analysis to test the relationship formulated in the hypotheses by using the EViews 9 software. The results showed that the board diversity-related variables such as separate leadership structure and presence of non-executive director on companies’ board are appeared to have significant influence on agency costs. Meanwhile, board size does not have direct impact on agency costs. The findings of this study regarding board diversity and agency costs have important managerial implications, that these findings are unlikely to the prediction of agency theory and best practices. Agency theory is not applicable to these companies, since the exiting corporate governance practices increase agency costs. The potential benefits of this study led to re-think the board of directors of the companies, managers, shareholder and the policymakers to re-organise the implementation of best practices.

Corporate governance and remuneration: a bibliometric analysis

PurposeThis study aims to pinpoint gaps in the literature on corporate governance and remuneration by producing a comprehensive bibliometric review for the period 1990–2020.Design/methodology/approachBibliometric analysis is the quantitative study of the bibliographic material in a specific research field. It allows an analyst to classify that material by paper, journal, author, indexation, institution or country, among other possibilities. This study reviews a total of 298 Web of Science–indexed journal articles on corporate governance and top-management remuneration schemes.FindingsThe authors find five distinct research strands: (1) firm performance and remuneration of top management, (2) the remuneration and independence of boards of directors and the efficiency of boards of directors as a governance system, (3) outside-director remuneration and the efficiency of outside directors as a monitoring system, (4) director remuneration and the corporate governance of companies and (5) the role of ownership structure and top managers' compensation schemes as corporate-governance tools. The authors identify gaps in the literature and avenues for future research for each of these strands.Practical implicationsThe authors’ findings have implications for board diversity (e.g. gender diversity), remuneration policy for top-level managers and governance issues (independent directors, separation of ownership with control). This study is the only one to summarize the key topics on which top research has been focused and can be broadly used for corporate governance management perspective.Originality/valueThis paper provides an overview of how the literature on corporate governance and remuneration has developed and a synopsis of the most influential and most productive authors, countries and journal sources. It creates an opportunity for other researchers to focus on this area. This study will also serve as a foundation for future meta-analyses.

Sustainable Corporate Governance: A Way Forward?

Abstract This article looks at proposals to improve sustainable corporate governance of companies. These include: how to deal with shareholder primacy; a proposed requirement for companies to have an overarching purpose “to create sustainable value within planetary boundaries;” a directors’ duty to promote the undertaking’s interests to fulfil its overarching purpose; a directors’ duty to balance stakeholders’ interests; a duty to undertake a due diligence sustainability assessment; company and director liability for breaches; stakeholder enforcement of directors’ duties and public enforcement of directors’ duties. It considers problems with the proposals. It suggests alternative ways to make companies’ corporate governance more sustainable, including: improved corporate reporting relating to engagement with key stakeholders and how this contributes to the company’s long-term sustainability; better viability reporting by companies; reporting on capital allocation; better stewardship similar to the UK Stewardship Code 2020; more collaborative engagement by shareholders with companies in a manner similar to that promoted by the UK Investor Forum; making requisitioning of resolutions work better in practice; and, possibly, a vote on whether the company is creating sustainable value in the long term (a say on sustainability).

Comply or Explain Principle in the Context of Corporate Governance in Companies Listed at the Warsaw Stock Exchange

Comply or Explain Principle in the Context of Corporate Governance in Companies Listed at the Warsaw Stock Exchange