Effect Of Corporate Governance Research Articles

Corporate governance and SME performance: Is technological capability a missing link?

Purpose This paper aims to examine the role of technological capability in the relationship between corporate governance and small and medium-sized enterprise (SME) performance. Design/methodology/approach Using panel data comprising 1,357 European SMEs from 2014 to 2020, this paper examines how technological capability acts as a mediator and moderator within the governance-performance nexus. Findings The results show a positive and significant link between corporate governance mechanisms and SME performance, as well as between technological capability and SME performance. In addition, this paper show that technological capability plays a crucial role in moderating and mediating the governance-performance relationship. Specifically, technological capability accentuates the positive effects of board size, the presence of outside directors and concentrated ownership on SME performance. Conversely, it attenuates the positive impacts of CEO duality and board gender diversity on SME performance. These results highlight corporate governance mechanisms and technological capability’s crucial role in significantly influencing SME performance. Practical implications The results suggest that SMEs should prioritize not only the implementation of effective corporate governance mechanisms but also the strategic utilization of technological innovations to boost performance. European policymakers are encouraged to enact supportive policies on technological innovation to strengthen the governance-performance dynamic. Originality/value This study contributes to the governance-performance literature by offering new insights into the critical role of technological capability, which has been previously explored in partial and fragmented ways.

COMPARATIVE ANALYSIS OF CORPORATE GOVERNANCE PRACTICES: A SYSTEMATIC LITERATURE REVIEW OF INDIA AND GCC NATIONS

This systematic literature review aims to review the effect of corporate governance on the firm’s financial performance and relationship between corporate governance mechanisms, government regulation and firm financial performance across different regions. The review therefore integrates conclusions from several related papers to establish how good governance practices improve sustainability, profitability, and investor satisfaction of firms. Applying the analytic approach studying the reaction of the corporate boards indicating that their diverse and actively participating in the strategic decision making has a positive impact to the increase of the financial performance and the betterment of their corporate health. In the similar vein, this study defines how strong regulatory measures that align them to the hubs and local fiscal and culture settings influences transparency and accountability to fuel financial performance. This study also reveals the new implementation problems and constraints of the governance practice including differential application of the laws and rules, and dynamic requirements for the local and global business environments for the models of the governance. The results accentuate the importance and continuous need for governance changes and serve as a platform for further research, especially focusing on digital governance and ESG factors. This research will therefore fit into this existing body of knowledge by showing how corporate governance is an imperative prerequisite for sustainable business success and stakeholder trust.

Corporate Board Characteristics of Family-Managed Firms and it’s Impact on Firm Performance

Well-balanced and active corporate boards ensure effective corporate governance in family firms. Studies in the area of corporate governance across the globe made considerable effort to study the composition of corporate boards and their effectiveness. The present study is an effort to evaluate the impact of board characteristics on the performance of selected Indian family-managed firms. The paper encompasses how various board parameters such as board size, board independence, the duality of the chairman, gender diversity, and inclusion of foreign directors in the board impact a firm's market and accounting performance measures. The data is collected from the CMIE PROWESS Database, consisting of 173 family-managed firms belonging to 11 macro-industrial sectors selected. The panel data used for the study consist of 2076 observations for 12 years, from 2010-11 to 2021-22. The study uses regression analysis to evaluate the impact of board characteristics on performance measure indicators Tobin’s Q and ROA of the firms.

Moderating Effect of Corporate Governance on the Relationship between Social Sustainability Reporting and Firm Value: Evidence from the Nairobi Securities Exchange, Kenya

Purpose: The main purpose of this study was to examine the moderating effect of corporate governance on the relationship between social sustainability reporting and firm value among companies listed in the Nairobi Securities Exchange, Kenya. Methodology: The study's target population include all 64 NSE-listed companies. The study employed secondary data collected by the use of the annual reports sourced from NSE and firms’ websites for eleven (11) years from 2012-2022. Content analysis technique was employed for the collection of secondary data using data collection sheets. This research used a longitudinal research approach and correlation research design. Results: The study found that social sustainability reporting had an insignificant effect on firm value among companies listed on the Nairobi Securities Exchange. Additionally, corporate governance was shown to have no significant moderating influence on the relationship between social sustainability reporting and firm value. Conclusion/Implication: These findings suggest that companies should reconsider the relevance and quality of their social sustainability reports to better align with stakeholder expectations. Enhanced transparency and storytelling regarding social impacts are necessary to improve investor engagement

PENGARUH GOOD CORPORATE GOVERNANCE, KONSERVATISME AKUNTANSI DAN UKURAN PERUSAHAAN TERHADAP MANAJEMEN LABA (Studi Empiris Pada Perusahaan Sektor Properti Yang Terdaftar Di Bursa Efek Indonesia Tahun 2018-2022)

This study aims to analyze the effect of Good Corporate Governance, accounting conservatism, and company size on earnings management (empirical study of property sector companies listed on the Indonesia Stock Exchange 2018-2022). This research method is quantitative. The object of this research is the annual report and audit report of Real Estate and property companies listed on the Indonesia Stock Exchange (IDX) for 2018-2022. The sampling method of this research is purposive sampling, with techniques based on judgment sampling considerations. The data used in this study are secondary. The data collection method is the documentation method. The analytical tool used in this research is multiple regression analysis with the help of the IBM Statistical Package for Sciences (SPSS) program version 26. The result of this study is that Good Corporate Governance has no significant effect on earnings management. Accounting conservatism hurts earnings management. Company size does not affect earnings management.

The Impact of Heterogeneous Market Sentiments on Corporate Risk-Taking and Governance

This research focuses on how market sentiment affects corporate governance in the Chinese market. The sample covers the years from 2014 to 2023. Market sentiment is estimated using a cross-sectional absolute deviation (CSAD) model, and earnings quality is used as an indicator of the consequences of corporate governance. Both mutual fund shareholding and the number of firm visits by mutual fund analysts are verified as effective corporate governance instruments that work well in a regular market but become ineffective when the market sentiment is high. The reason for this is that managers’ expectations change, and they may believe that disclosing good news during high-sentiment market periods significantly increases the share prices and helps them meet their performance requirements. In a high-sentiment market, an incentive contract encourages managers to take on projects with inappropriate risk or even manipulate earnings. One potential solution is to adopt venture capital firms’ high-water mark and clawback clauses to prevent managers from focusing on short-term goals rather than seeking long-term business sustainability.

CSR as a mediating to company characteristic, corporate governance, and firm value

Investors use the company's value as a benchmark to assess financial performance. Therefore, we must conduct research that uncovers factors capable of enhancing the company's value. Moreover, the majority of research conducted to date has primarily focused on direct testing. This research aims to explain the mechanism of comprehending factors in generating company value based on the signaling theory framework. This study investigates the effect of corporate social responsibility (CSR) practices, as well as mediators such as profitability and size, on firm value in manufacturing firms that have listed their shares on the Indonesia Stock Exchange (BEI). The data analysis was performed using the EViews application based on the collected sample of companies in the period 2019–2022. The results of this research indicate that the level of profitability, company size, and corporate governance effect firm value components directly. This study also suggests that, in line with the signaling theory stream of research, corporate social responsibility (CSR) acts as an important channel to bind the profitable and large-sized firms along with governance mechanisms through the utilization of signals by investors about influential variables such as profitability levels or company size; overall governance practices enacted.

Boardroom Dynamics: Exploring the Intersection of Corporate Governance and Firm Performance

The requirement for strong corporate governance in the modern economy is becoming more widely acknowledged in the framework of accounting for growth. Although corporate governance is seen as the pinnacle in today's economies, it is crucial for a company's entire development and progress. The ancient economies of India and Greece are where corporate governance first emerged. The study on the relationship between corporate governance and firm performance is examined in-depth in this article. The information were taken from Scopus's online databases. The performance of the firm has been shown to benefit from good corporate governance, and this has a favorable impact on national economic growth This article highlights the key conclusions and offers suggestions for further research into the relationship between effective corporate governance and firm performance. The study also presents intriguing conclusions about the relationships between corporate governance and performance of firms, and it also offers potential directions.

Examining the Influence of Sustainable Management Accounting on Sustainable Corporate Governance: Empirical Evidence

This study, with its practical implications, is a valuable resource for organisations. It examines the impact of Sustainable Management Accounting (SMA) practices on the implementation and effectiveness of Sustainable Corporate Governance (SCG) within organisations. It also investigates the various dimensions of SMA and explores the mediating roles of the Internal Control System (ICS) in the relationships between SMA and SCG. The empirical data, collected from 512 individuals across India using a purposive sampling technique, represent a diverse cross-section of the population, including shareholders, investors, finance officers, executives, and professionals such as chartered accountants, lawyers, bankers, and company secretaries. The findings of this study are actionable, indicating that SMA has a positive and significant impact on SCG. Furthermore, it was found that SMA is influenced by factors such as the accounting system, reporting method, transparency policy, and stakeholder involvement. Moreover, the results suggest that companies with well-developed sustainable accounting systems have enhanced ICS and corporate governance metrics, which in turn result in improved board oversight and stakeholder engagement. Finally, the outcome of this study not only assists in developing sustainable corporate governance through sustainable accounting management but also contributes to the UN’s sustainable goals through accounting and governance in the corporate culture and approach.

Drivers of corporate environmental policy at country, sector, and firm levels

Abstract This study provides a holistic approach to the potential drivers of corporate environmental policy. Institutional and/or stakeholder theories are used to explain any influence on this type of policy in situations with different characteristics. Specifically, the analysis considers country-, industry-, and firm-level determinants of an international sample of listed companies. Exploratory factor analysis was first applied to the variables at the country level because their underlying interrelationships were unknown. Using ordered probit models clustered at the firm level, we found that some environmental characteristics of a country and some macro-level variables considered together affect corporate environmental policy, along with pressure from industry peers. Moreover, we observed that companies with better policies for stakeholders, greater board independence, and greater gender diversity tended to develop better environmental policies. This study offers insight into fostering environmental responsibility through policy incentives and effective corporate governance structures.

The Effect of Good Corporate Governance and Profitability On Earnings Management Pharmaceutical Companies

This research aims to examine and analyze the factors that can affect of Earnings Management in pharmaceutical companies listed on the Indonesia Stock Exchange (IDX). The independent variable used to analyzed of Earnings Management is Good Corporate Governance and Profitability. This research aims at pharmaceutical companies listed on the Indonesia Stock Exchange (IDX) during the 2017-2021 period. The population in this study amounted to 11 companies. The sampling method used was the purposive sampling method and obtained a sample of 5 companies. The data analysis method used is the multiple linear regression analysis and the residual test method. The result of this research show that simultaneously Good Corporate Governance and Profitability had positive influence and significant on Earnings Management. While, partially Good Corporate Governance and Profitability had positive influence and significant on Earnings Manegement in companies listed on the Indonesia Stock Exchange (IDX) for the 2017-2021 period

The Impact of Capital Structure, Company Size, and Good Corporate Governance on Financial Performance and Company Value

This study aims to resolve the inconsistencies in prior research regarding the effects of capital structure, firm size, and good corporate governance (GCG) on company value. Additionally, it investigates the moderating role of corporate social responsibility (CSR) in the relationship between financial performance and company value, offering new insights into this dynamic interaction. This study utilizes a saturated sample or census approach, including all population members, due to the small population size and the researcher's ability to access the required data. Data from 71 manufacturing companies listed on the Indonesia Stock Exchange (IDX) between 2018 and 2022 were obtained from their financial statements and annual reports. A quantitative analysis was conducted using Partial Least Square (PLS) regression with the SmartPLS 4.0 software. The results indicate that capital structure, company size, and GCG significantly impact financial performance. Additionally, capital structure was found to significantly affect company value, while company size and GCG did not. Financial performance significantly influenced company value, but CSR did not directly affect company value and did not moderate the relationship between financial performance and company value.

Boardroom Diversity and Whistleblowing Disclosure: Empirical Evidence from Malaysia’s Top 100 Publicly Listed Companies

The disclosure of whistleblowing policies is a critical component of effective corporate governance. High standards of whistleblowing policy disclosure signal a company’s commitment to safeguarding stakeholder interests. This research aims to analyze the relationship between board composition and whistleblowing policy disclosure in the top 100 Malaysian publicly listed companies. Specifically, the study investigates whether board independence, board size, the frequency of board meetings, and board gender diversity affect the level of whistleblowing policy disclosure. The relationships between these board characteristics and whistleblowing policy disclosure are analyzed using an Ordinary Least Squares (OLS) regression model. The findings reveal that board independence and gender diversity are significantly and positively associated with whistleblowing policy disclosure. However, board size and frequency of the board meetings do not exhibit significant relationships with whistleblowing policy disclosure. This study has contributed to the existing literature by extending the principal-principal conflict theory to the context of whistleblowing policy disclosure, offering new insights into the governance mechanisms that drive transparency in corporate reporting.

Corporate Governance: Exploring Key Concepts, Mechanisms, and Historical Evolution

Corporate governance involves several key concepts that help define its scope and purpose. Though review of key corporate governance concepts and historical evolution is widespread in the extant literature, detailed review across the globe is limited. Motivated by this dearth, this study reviewed these concepts and explored how firms rely on them to implement effective corporate governance. The study employed documentary and descriptive research methods to review concepts of corporate governance, systems, mechanisms and historical perspectives around the world. Our study discovered that understanding internal controls helps ensure compliance, minimize risks and safeguard the firm’s assets. Similarly, the study discovered that executive compensation structures help align management interests with shareholder value and external oversight through auditing and regulation which provides an unbiased assessment of the firm’s financial reports. Our historical perspective of corporate governance highlighted significant milestones that have shaped its evolution. Importantly, these include reports and acts aimed at addressing corporate scandals and improving governance practices. We also discovered that to improve corporate governance standards worldwide, multilateral organizations like the Organisation for Economic Cooperation and Development (OECD) among others have played a number of roles in developing international guidelines and codes of best practice. Further, the study explored the dynamic nature of corporate governance in response to evolving economic, social and technological trends. The study concluded that understanding the concepts, systems, mechanisms and historical perspectives of corporate governance is essential for firms and stakeholders to maintain transparency, accountability and sustainable performance.

The effect of corporate governance attributes on human capital disclosure in South Africa

The disclosure of human capital (HC) information in corporate reports continues to be at the centre of discussions in the executive boardroom. Currently, standard setters grapple with implementing uniform disclosure requirements for human capital disclosure (HCD) and as a result this information is scant, erratic, and inconsistently reported. Hence the ISO 30414 was introduced to breach this gap. The aim of the study is to critically examine how corporate governance attributes affect HCD. A quantitative based cross-sectional design was followed using a sample of top 100 companies listed on the Johannesburg Stock Exchange (JSE). The ISO 30414 HR reporting framework containing 48 metrics was utilised to construct an assessment instrument with a 7-point scale to assess the extent of HCD. Overall, board meeting attendance yielded positive statistically significant association with HC information disclosed on recruitment, retention rate, turnover rate, internal mobility rate, competency rate, employee value-added, absenteeism rate. The board of directors play a critical role in improving the disclosure of HC information in the integrated reports. The study provides first empirical evidence on the impact corporate governance attributes have on HCD using the ISO 30414 HR reporting framework.

The Influence Of Good Corporate Governance On Firm Value With Financial Performance As A Moderation

The aim of this research is to determine the effect of good corporate governance on firm value in food and beverage companies on the Indonesia Stock Exchange with financial performance as a moderating variable. This research is quantitative research. The number of companies in the food and beverages subsector consists of 30 (thirty) companies. The sample in this research consisted of 13 companies over 5 years. Data collection is carried out through financial reports. This research data was analyzed using a moderation test. The findings of this research indicate that 1) There is an influence of financial performance on firm value. 2) There is an influence of Independent Commissioners on firm value. 3) There is an influence of Independent Directors on firm value. 4) There is an influence of Independent Audit on firm value. 5) There is a moderating influence of the Independent Commissioner's financial performance on firm value. 6) There is a moderating influence of independent directors' financial performance on firm value. 7) There is a moderating influence of financial performance on Independent Audit on firm value in Food and Beverage Companies on the Indonesian Stock Exchange.

Effect Of Profitability and Good Corporate Governance On Firm Value With Corporate Social Responsibility As An Intervening Variable

The company was founded with a goal, one of which is to improve the welfare of its shareholders. By increasing the company's share price, the company's value in the eyes of investors will also increase. The value of a company can be seen from the Tobin'Q ratio. Companies registered in LQ 45 have quite high company value. The aim of this research is to analyze the influence of profitability and GCG on company value through CSR as an intervening variable. This research is a type of associative research with a quantitative approach. The object of this research is the LQ 45 company listed on the IDX for the 2018–2022 period. Sampling in this study used a purposive sampling method and 20 companies were found that met the sample criteria. This research uses secondary data in the form of Sustainability reports and company annual reports. This research uses the path analysis method using SPSS as an analysis tool. The results of this research show that: (1) Profitability has a positive and significant influence on company value. (2) GCG has a positive and insignificant influence on company value. (3) CSR has a significant positive influence on company value. (4) Profitability has a positive and significant influence on company value throught CSR. (5) GCG has negative and insignificant influence on company value throught CSR.

Analysis of the Effect of Good Corporate Governance Mechanisms and Financial Performance on the Disclosure of Sustainability Reports with Firm Size as a Moderating Variable in Banking Companies Listed on the Indonesia Stock Exchange 2017-2022

The purpose of this study was to test and analyze the effect of Good Corporate Governance (GCG) and others: managerial ownership, number of Board of Commissioners and Audit Committee, and Financial Performance, which included ROA and ROE on company sustainability in banking sub-sector companies listed on the Indonesia Stock Exchange. In addition, this study also aims to determine whether the firm size can be used as a moderation variable to strengthen or weaken the relationship between good corporate governance (GCG) and the financial performance of the company's sustainability. This research is a type of quantitative research with a descriptive approach. Purposive sampling techniques were used from 47 banking companies in the IDX, and 19 banks were included in the research sample within 6 years of the period. The data used are secondary data and data collection methods, accessed by accessing the IDX's 2017-2022 annual report. The results of this study show that good corporate governance (GCG) has no significant effect on sustainability. The audit committee has no significant effect on sustainability reports. Managerial ownership has a significant effect on sustainability reports, independent commissioners have no significant effect on sustainability reports, the Board of directors has no significant effect on sustainability reports, and financial performance has a significant effect on sustainability reports, where ROA and ROE have a significant effect on sustainability reports. Firm size can moderate the influence of GCG and financial performance with sustainability reports. Keywords: good corporate governance, audit committee, board of commissioners, managerial ownership, financial performance, ROA, ROE, sustainability report, and firm size

Performance of manufacturing and allied firms listed at the Nairobi Securities Exchange, Kenya: The role of corporate governance

The Kenyan government has implemented numerous reforms, including the inclusion of the manufacturing sector as one of the government's four major agendas for revitalizing the sector. Despite these reforms, statistics show that over the last ten years, manufacturing industries in Kenya listed on the Nairobi Securities Exchange have experienced stagnation and declining profits, slowing growth, and declining market share, necessitating the establishment and execution of effective corporate governance. Therefore, the current study investigated the effects of corporate governance on performance of manufacturing and allied firms listed at Nairobi Security Exchange, Kenya. The study specifically investigated the effects of board composition, board size, board independence and board diversity on performance of manufacturing and allied firms. Agency theory, RBV and stakeholder’s theory anchor the study. Descriptive research design was used. Stratified random sampling technique was used as a sampling technique. A self-administered semi-structured questionnaire was used to collect primary data from a population of four hundred and thirty-nine manufacturing and allied firms. Two hundred and nine corporate managers from these manufacturing companies were sampled. A pilot test of twenty-nine respondents was conducted. Collected data was coded, cleaned, and analyzed. Data analysis included the creation and interpretation of descriptive means, percentages, and standard deviations, which was presented in the form of tables, charts, and graphs. The results of regression analysis established that board composition, board size, board independence and board diversity significant influenced firm performance of manufacturing and Allied Firms listed at the Nairobi Securities Exchange, Kenya.

Quality of information disclosed: Effects of corporate governance and the audit committee

This research aims to analyze the effect of corporate governance and the Audit Committee, on disclosing the quality of information of publicly traded companies listed on [B]3, with financial information in the reference form and in the Economática database ® for the years 2014 to 2023. Study is based on qualitative disclosure of information and corporate governance, combined with the Audit Committee based on disclosure and stakeholder theories and audit committee analysis. The research is descriptive, quantitative, documentary, with the population being companies listed on [B]3 S.A., made up of 400 companies. To compose the sample, 320 publicly traded companies were selected with information on the constructs raised. The results showed that there are significant statistical differences with the presence of the Audit Committee and companies with external audits conducted by the big four, which favors the quality of the information that is disclosed, compared to companies that are not audited by them. In the results it was possible to verify that more profitable companies have greater commitment to disclosures and, therefore, are more likely and committed to the responsibility of disclosing information. The research contributes to the understanding that, in Brazil, the majority of companies have highly concentrated ownership, the pressure exerted by controlling shareholders may be reducing the positive impact of corporate governance practices.