Elements Of Corporate Governance Research Articles

A Comprehensive Study on the Influence of Corporate Governance Factors on Financial Performance of Listed Banking Companies in Bangladesh

This comprehensive study investigates the influence of organizational management elements on the economic outcomes of publicly traded banking enterprises in Bangladesh. The research begins with an introduction highlighting the significance of this study Within the framework of the Bangladeshi Financial industry. The review of literature delves into existing research on Effective management of organizations and their economic achievements, providing a foundation for this study. It identifies gaps and emphasizes the need for specific analysis in the Bangladeshi banking industry. An abbreviated summary of corporate oversight principles and practices sets the stage for understanding the study’s framework. Subsequently, the analysis of the financial industry in Bangladesh offers essential context for the study. The examination and results portion showcases factual information and outcomes, demonstrating the correlation between corporate governance elements and economic efficiency in banks listed in Bangladesh. Here we use five years data of five banks and then we use SPSS as a statistical tool for data analysis. The conclusion synthesizes these findings, highlighting key takeaways and their implications for the sector. Finally, the study concludes by discussing policy implications. It outlines recommendations for regulatory bodies and banking institutions to enhance the financial performance of banks in Bangladesh by implementing effective corporate governance strategies and practices. This study intends to provide valuable perspectives for stakeholders and decision-makers in the banking industry.

Equity Concentration and Inefficient Investment

Enterprise investment efficiency has been a hot topic of concern to all walks of life, and equity concentration, as an important element of corporate governance and modern enterprise construction, has attracted extensive attention from the academic community. Hence, this paper provides theoretical analyses and empirical tests on the relationship between corporate inefficient investment and equity concentration. After regression analysis, this paper finds that there is a significant negative relationship between equity concentration and the degree of inefficient investment, which confirms the hypothesis that equity concentration reduces the level of inefficient investment; compared to the company with CEO duality, in the case of equity concentration, the separation of decision-making power and decision-controlling power is more able to reduce the level of inefficient investment; However, the allocation of decision-making power does not have a significant effect on this relationship mechanism. This paper provides some theoretical basis and implications for how enterprises can optimise their shareholding structure and promote the reform of corporate governance modernisation so as to enhance investment efficiency.

Towards novel blockchain decentralised autonomous organisation (DAO) led corporate governance framework

Decentralised autonomous organisation (DAO) powered by blockchain technologies has the potential to transform the organisational governance model with the foundations of algorithmic trust and democratic systems. DAO envisages a decentralised democratic organisation using software-based smart contracts to execute autonomous transactions with consensus among stakeholders. The study investigates the prospects of adopting DAO led corporate governance to manage agency (theory) problems in the light of institutional (theory) pressures. The paper depicts how algorithmic trust led corporate governance measures help any organisation follow policies, rules and regulations using DAO led corporate governance (DAOCG) framework. The authors mapped the constituents of agency theory, ethical decision-making, and institutional factors to propose the DAOCG framework. The DAOCG framework is assessed using a thematic analysis of 16 expert interviews with relevant experience from corporate governance and audit domains from varied industries across geographies. The research leveraged MAXQDA software to analyse interview transcripts and opinion codes. The framework helps to identify the core elements of DAO-led corporate governance (DAOCG) and provides the potential to study the theoretically sequenced practical constituents of corporate governance. The first-of-its-kind practical DAOCG framework can be used in the pursuits of digital transformation, business model innovation and social change.

Investigating the Impact of Corporate Governance on Financial Performance and Firm Value Prior To And During the Covid-19 Pandemic

Objective: This study aims to compare the impact of Corporate Governance on Financial Performance and Firm Value before and during Covid-19 Pandemic. Theoretical framework: This research is based on stakeholders and shareholders who also have rights to what they have provided to the company. Method: The study focuses on companies listed on the Indonesia Stock Exchange, analyzing the period from 2018 to 2021, which limits its scope to these entities during and before the pandemic. Utilizing ordinary least squares regression analysis through STATA, this study includes data from 146 companies. Results and conclusion: The results indicate that company size favorably influenced Financial Performances and negatively affected Firm Value during the pandemic. However, aspects of Corporate Governance, including the board of directors, the size of the board, independent directors and the audit committee, had no significant impact on the Financial Performance of the company's value during this period. Before the pandemic, the audit committee negatively affected Firm Value, company size was favorably correlated with Financial Performance and company age favorably influenced Firm Value. However, other elements of Corporate Governance, such as the board of directors, board size and independent directors, did not significantly affect the Financial Performance of the company's value. Implications of the research: This research offers important insights for companies in seeing how firm-related factors can lead to firm value in the capital market. Originality/value: This study contributes to the understanding of the relationship between Corporate Governance, Financial Performance, and Firm Value in the context of the COVID-19 pandemic.

Compliance as a Tool for Ensuring the Economic Security of an Organization: Problems and Prospects of Application

Compliance is applicable in any organization and acts as one of the modern types of control, during which the compliance of the organization's activities with the norms of national legislation is monitored. This tool provides real protection against corruption, conflict of interest, and contains in its arsenal a whole range of elements that can be implemented in the organization's economic security system. Compliance allows you to identify the risks of the organization's functioning at the early stages of manifestation and prevent the application of sanctions by regulatory authorities, and subsequently prevent economic damage. The authors present approaches to the definition of the term, types of compliance, and a comparative analysis of compliance with other types of control, confirming its uniqueness. According to the authors, one of the disadvantages in the development of compliance is its reduction to a set of formal management standards and procedures. The authors concluded that this is not just an element of corporate governance, but also an effective way to prevent corruption crimes. The prospects of using this tool in modern conditions of global instability and the development of digital management methods are considered.

Main Predictor(s) of Good Corporate Governance in National Government Departments: A Decision-tree Classification and Prediction Analyses

Purpose: Good public sector corporate governance leads to good management, stewardship of public wealth, public engagement, and ultimately, better outcomes for citizens. As South Africa has one of the worst Gini coefficients in the world, its public sector should effectively address the challenges of inequality, poverty, and unemployment. Yet, almost 30% of national and provincial government departments obtain unfavourable audit outcomes. Methodology: Supporting the drive for clean audit outcomes that equate to good corporate governance, the research objective was to determine the predictors of national government departments’ corporate governance success. The study used CHAID (chi-squared automatic interaction detection) analyses, a decision-tree technique based on information reported over a 13-year period. Findings: The CHAID analyses indicated that national government departments’ corporate governance success is primarily explained by three factors, namely: a quality internal audit function (main predictor), the number of fraud incidents, and the number of internal control weaknesses. Implication: Even though all the variables in this study receive attention in literature and regulation, the problem of unfavourable audit outcomes persists. The question is where to focus on resolving the problem. Regulators may take note of where to focus their efforts in strengthening elements of good corporate governance.

Does a Female Director in the Boardroom Affect Sustainability Reporting in the U.S. Healthcare Industry?

In this in-depth study, we explored the nuanced dynamics of boardroom gender diversity and its consequential impact on sustainability reporting within the U.S. Healthcare sector. Leveraging a comprehensive dataset from Refinitiv Eikon, our analysis spanned a spectrum of 646 observations across 57 healthcare entities listed in the S&P 500, covering the period from 2010 to 2021. Our methodology combined various empirical techniques to dissect correlations, unravel heterogeneity, and account for potentially omitted variables. Central to our findings is the discovery that various metrics of board gender diversity, such as the proportion of female directors and the Blau and Shannon diversity indices, exhibit a robust and positive correlation with the intensity and quality of sustainability reporting. This correlation persists even when controlling for a multitude of factors, including elements of corporate governance (such as board size, independence, and meeting attendance), as well as intrinsic firm characteristics (such as size, profitability, growth potential, and leverage). The presence of female directors appears to not only bolster the breadth and depth of sustainability reporting but also align with a broader perspective that their inclusion in boardrooms significantly influences corporate reporting practices. These insights extend beyond academic discourse by offering tangible and actionable intelligence for policymakers and corporate decision-makers. By elucidating the intrinsic value of gender diversity in governance, our study contributes a compelling argument for bolstering female representation in leadership roles as a catalyst for enhanced corporate responsibility and stakeholder engagement.

Integrating corporate governance and forensic accounting: A sustainable corporate strategy against fraud

In the realm of financial oversight and corporate management, forensic accounting (FA) holds a critical position, serving as a central control mechanism and being widely recognized as an essential component of corporate governance. FA plays a crucial role as a central control mechanism and is acknowledged as a pivotal element of corporate governance. Consequently, it needs to continuously adapt in response to shifts in corporate governance practices, while the role of internal auditors transforms to actively support corporate sustainability. The aim of this research is to assess the effectiveness of FA and explore its relationship with corporate governance, based on the relevant literature. Thus, the main objectives of the present study are to identify the internal control attributes that influence the quality of its performance and to evaluate how corporate governance contributes to enhancing the quality of FA. To achieve the aim and the objectives of the paper, a literature analysis was carried out. The main contribution of the present paper is to refresh the existing body of knowledge on contemporary FA and its interplay with corporate governance.

Agency conflicts, corporate governance, and capital structure decisions of Indian companies: evidence from new governance laws

PurposeThis study investigates the effects of elements of corporate governance along with firm specific variables on the financial leverage of listed Indian firms in the context of agency conflicts and new governance laws.Design/methodology/approachA series of panel ordinary least squares as well as fixed/random effects regression models of book and market value of financial leverage on variables of corporate governance (board size, board composition, board meeting, board attendance and board gender) along with a set of control variables (asset tangibility, firm size, growth, liquidity and profitability) were estimated by employing 113 listed Indian firms during 2010–2021. Dynamic panel generalized method of moments models were also estimated to check the robustness of empirical results. Further, the full sample of firms was divided into small and large board sized companies using the median approach to investigate differences between small and large board characteristics on financial leverage.FindingsThe evidence predominantly suggested that the governance variables have significant impact on leverage ratios of selected firms. Governance variables such as board size, composition, attendance and gender are significantly found to be reducing the financial leverage of firms indicating that in general these attributes in a way, through monitoring managers, put pressure on them to pursue lower financial leverage. Board meeting is found to be positive and significantly related with financial leverage suggesting that the frequency of meetings signals its monitoring ability that may influence lenders' risk assessment lowering borrowing cost. The results on small and large board sized companies indicate that firms with small boards relatively issue more debt compared to firms with large boards suggesting that small boards adopt high debt policy.Practical implicationsThe main policy implication of the study is that elements of internal corporate governance is a significant governance tool that has the potential to reduce agency conflict between the managers and agents through monitoring and decision making that has tangible effects on critical corporate decisions such as capital structure choices.Originality/valueThis paper contributes to the existing literature by bringing new evidence relating to agency conflicts and capital structure decisions in an emerging market like India post adoption of new regulations related to corporate governance specified in Clause 49 of Securities and Exchange Board of India and Companies Act, 2013 as there is significant dearth of such empirical work.

Female ownership and female directors’ moderating role as corporate governance monitoring mechanisms in increasing the value of Thai family-owned firms

PurposeThe phenomenon of “broken rungs” has prevented most women from attaining managerial positions relative to men. Despite this gender disparity in management, female executives are more likely to enhance shareholder trust due to higher ethical standards, which can be hypothesized to mitigate the negative impact of family ownership on firm value. Therefore, this study aims to investigate the moderating role of female ownership and female directors in mitigating the unfavorable effects of family ownership on firm value as measured by Tobin’s Q and the Market Value of Equity (MVE).Design/methodology/approachMultiple linear regression is applied to examine the proposed hypotheses, as well as other vital factors, such as board independence (BI), the dual chief executive officer (CEO)–chairman role (CEO duality) and control variables (i.e. firm size, firm age, leverage and investment ratio).FindingsThe results revealed that female directors could buffer the negative impact caused by family ownership, leading to higher firm value, when given a sufficient level of female ownership or the appointment of more female directors, regardless of female ownership levels. Otherwise, female ownership cannot help overcome the negative effects of family ownership in Thai-listed firms. This study also sheds light on corporate governance elements that impact firm value. CEO duality reduces the value of Thai-listed companies, whereas board independence increases firm value.Practical implicationsThe managerial roles for women should be promoted in Thai-listed enterprises. The government can support new laws, policies and programs for embracing a cross-cutting gender perspective. Female network initiatives enable women to advance in their managerial careers.Originality/valueTo the best of the authors’ knowledge, this study intends to fill the research gap by investigating how female directors and owners can moderate family ownership’s influence on the value of firms listed on the Stock Exchange of Thailand (SET), which is one of the emerging capital markets.

AVIATION COMPANY CORPORATE GOVERNANCE ASSESSMENT FOR STRATEGIC DEVELOPMENT

The purpose of the research is to analyze the corporate governance system and evaluate the quality of the corporate governance system using the example of the international company Lufthansa Group. The management quality rating methodology is based on determining the weighted average sum of scores of factors such as positioning, management and control bodies, information transparency, the rights of owners and other stakeholders, and stress factors. The article defines the main elements of corporate governance and methods for assessing the quality of the corporate governance system.

IMPACT OF CORPORATE GOVERNANCE ON BUSINESS VALUE: A LITERATURE REVIEW

In the given article discussed theories and issues of business value formation, reviewed the approaches of economists, methods for assessing the value of business, factors affecting assessment, approaches to calculation, issues of increasing the value of business through the usage of elements of corporate governance and corporate code. Performed recommendations for maintaining financial and non-financial reporting, development trends of modern corporate reporting.

CAPITAL MARKET COMPANIES IN THE UAE: DETERMINANTS AND FACTORS AFFECTING THE PERFORMANCE OF LISTED UAE COMPANIES

This research examines the influence of international ownership, national ownership, and CEO duality on organizational performance within listed organizations on the Dubai Financial Market (DFM). A multiple regression analysis was employed to assess the effects of international ownership, national ownership, and CEO duality on organizational performance. The study focused on 60 organizations during the fiscal year 2020. Through regression analysis of the collected data, the results indicate that national ownership has an insignificant yet positive impact on organizational performance. Furthermore, the findings demonstrate that international ownership significantly and positively affects organizational performance. Additionally, the analysis reveals that non-CEO duality positively correlates with organizational performance. The practical implications of this study are reflected in its findings, which underscore the importance of the independent variables within the context of investment possibilities—serving as proxies in our study. These findings enhance the understanding of the value of robust corporate governance elements, not solely for directly enhancing organizational performance, but also for amplifying their influence on external factors. Such insights can prove valuable to various stakeholders, including policymakers, regulators, and other interested parties, in their review of procedures in the UAE, particularly following the implementation of corporate governance laws. This study contributes to the existing literature by highlighting the roles played by international ownership, national ownership, and CEO non-duality in enhancing organizational performance.

Mortgage potential and the military pension system

Relevance. The quality of capital management, taking into account the transformation of the external and internal conjuncture of Russia's development as a systemic phenomenon of the market economy, must evolve, showing flexibility in decision-making. State capital in Russia, playing a key role in the placement of assets, sets the trend in the capital market. However, many experts consider this role of the state as negative, suppressing the ability of entrepreneurs to take advantage of new, interesting macroeconomic opportunities, due to the centralization of cash flow and the distribution of liquidity in relation to system-forming enterprises that suppress the competitive environment. Hypothesis. The Military Pension System (PSV), along with other institutional funds, can ensure the decentralization of state capital through the introduction of elements of corporate governance, including with the participation, for example, of a board of independent directors. The scientific novelty of the research results lies in the need to create and integrate PSV into the investment and industrial processes of the economy. The author considers at the initial stage of the pension system reform the possibility of implementing this initiative by integrating the PSV into the housing construction sector and related sectors of the economy. The research is based on the analytical method and the method of synthesis, generalization of the results of practices of countries with developed economies. Results: the step-by-step capitalization of the PSV will allow for a smooth transition from the implementation of a system of financing capital-intensive industries with conservative financial risks to the possibility of investing in medium and small businesses, including educational and social projects, thereby ensuring the transformation of monetary capital into human capital, with increased risks, but also corresponding profitability. Such a transition is based on long-term planning of the development of funds not only as an element of corporate governance, but also as an integral part of the vision of their future by military personnel, taking into account the chosen region for permanent residence.

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

THE EFFECT OF AUDIT COMMITTEE AND BOARD OF COMMISSIONERS ON AUDIT REPORT LAG

Corporate governance has emerged as a vital area of study in ensuring transparency and accountability within organizations. Two key elements of corporate governance are the Audit Committee and the Board of Commissioners. The Audit Committee plays a crucial role in overseeing financial reporting and internal controls, while the Board of Commissioners holds responsibility for strategic decision-making and overall governance. The purpose of this study is to determine the influence of the Audit Committee (X1) and the Board of Commissioners (X2) on Audit Report Lag in Banking Companies Listed on the Indonesia Stock Exchange (IDX) for the 2018-2022 period. The research methodology used by the author is descriptive quantitative method. The population used in this study is the banking sector companies. While the data analysis used was the Common Effect Model (CEM) test, Fixed Effect Model (FEM), Random Effect Model (REM), regression test, classical assumptions, and hypothesis testing using the T test (partial) and F test (simultaneous) with using Ms. Excel and Eviews version 12. The results of the research found that the T test hypothesis 1 variable Audit Committee (X2) has an effect on the Audit Report Lag variable (Y), T test Hypothesis 2 the Board of Commissioners variable (X2) has an effect on the Audit Report Lag variable (Y), and the results of the F test show that the variables (X1 & X2) of the Audit Committee and the Board of Commissioners simultaneously affect the variable Audit Report Lag (Y).

Corporate Governance Stability And its Impact on the Quality of Accounting Information of Companies Listed on the Iraq Stock Exchange

Purpose: This research attempts to examine the influence of corporate governance stability on the accounting information quality. Theoretical framework: Stability in different mechanisms of corporate governance can help companies develop coherent plans and strategies and achieve their goals. Multitudinous changes in factors such as ownership and management and monitoring institutions such as independent auditors and members of audit committee can make changes in the company's goals thus affecting the financial reporting quality as a means of accountability of corporate governance elements. Methodology: The stability of corporate governance was measured using four criteria, namely managerial stability, ownership stability, independent audit tenure stability, and audit committee tenure stability. The statistical population includes the companies admitted to the Iraq Stock Exchange, and the research sample has been selected by the application of the conditions of the study variables to 55 companies in 2011 and 2020. In order to analyze the data and test the hypotheses, the statistical technique of multiple regression with panel data has been used. Finding: This work shows that the first hypothesis is rejected and that the managerial stability is negatively correlated with the accounting information quality. Moreover, according to the results, the second hypothesis of the research is also rejected and ownership stability is negatively correlated with the quality of accounting information. The third hypothesis outcomes also indicate the rejection of the research hypothesis and the independent auditor tenure stability and the accounting information quality have a similar relationship. Accordingly, the audit committee tenure stability is not significantly correlated with the accounting information quality. Research, Practical & Social implications: The results of testing the hypotheses showed that the greater the stability in the governance and monitoring elements of companies, the lower the quality of accounting information. Originality/value: Prior studies have focused on one or more corporate governance criteria and measured their impact on the accounting information quality. It should be noted that none of the conducted studies have provided a model to identify the impact of corporate governance on the accounting information quality.

ANALYSIS OF CORPORATE GOVERNANCE AND CORPORATE SUSTAINABILITY PERFORMANCE IN THE INDONESIAN CONTEXT

This study aims to examine the effect of corporate governance on the Corporate sustainability performance. The samples of this study consist of publicly-traded primary and secondary sector companies in Indonesia for eleven years, from 2010 to 2020. This study discusses the effect of corporate governance on corporate sustainability performance, Corporate governance, and corporate sustainability performance. The data used in the study are hand-collected data sourced from annual financial and company sustainability reports. The findings of the study indicate that Corporate Governance (CG) is positively affecting the Corporate Sustainability Performance (CSP) and its dimensions (Economy, Environmental, and Social aspects) significantly. Furthermore, the findings of the study have also disclosed that the CG elements consisting of the rights of shareholders (Category A), The equitable treatment of shareholders (Category B), The role of stakeholders in corporate governance (category C), disclosure principles and transparency (category D), and the responsibilities of the board (Category E) relatively showing positive effects significantly towards the CG and its elements. However, different effects have been found in the elements B and D, where it is showing that the sample companies indicate the weaknesses in the practice of the equitable treatment of shareholders and Disclosure and transparency. This study is expected to contribute to or assist the companies’ policymakers by creating regulations to improve the Corporate sustainability performance. Our research adds to the research on corporate governance and Corporate sustainability performance in analyzing the correlation between CG and CSP deeply and broadly by utilizing the instruments according to the developed OECD principles.

PURPOSE, TASKS AND PRINCIPLES OF EFFECTIVE MANAGEMENT OF CORPORATE CULTURE IN JOINT-STOCK COMPANIES

In the context of globalization, the introduction of effective elements of corporate governance for the victory of joint-stock companies in healthy competition is a service that has increased the profitability of companies. Companies impose an individual corporate culture depending on their type of activity and nature. This article discusses the systematization of the conceptual content of functional aspects of corporate culture in joint-stock companies, as well as prevention and resource opportunities of social problems and conflicts in joint-stock companies. The influence of various factors on the definition of corporate culture in joint-stock companies is considered. It consists in developing proposals and recommendations for further improvement of the national corporate governance system in accordance with the Corporate Code in the context of economic diversification and the formation of corporate culture in joint-stock companies.

THE NEED TO FORM A CORPORATE CULTURE IN JOINT-STOCK COMPANIES

In the context of globalization, the introduction of effective elements of corporate governance for the victory of joint-stock companies in healthy competition is a service that has increased the profitability of companies. Companies impose an individual corporate culture depending on their type of activity and nature. This article discusses the systematization of the conceptual content of functional aspects of corporate culture in joint-stock companies, as well as prevention and resource opportunities of social problems and conflicts in joint-stock companies. The influence of various factors on the definition of corporate culture in joint-stock companies is considered. It consists in developing proposals and recommendations for further improvement of the national corporate governance system in accordance with the Corporate Code in the context of economic diversification and the formation of corporate culture in joint-stock companies.