Impact Of Corporate Governance Structure Research Articles

The Impact of Corporate Governance Structure on the Financial Risk

This paper first introduces the research background of financial risks and corporate governance structure, using a sample of A-share companies listed in Shanghai and Shenzhen Stock Exchange from 2016 to 2018. It applies Z-score to measure financial risks and finds some quantitative methods to measure the factors in the corporate governance structure. This paper uses multiple linear regression model to analyze the correlation between financial risks and the corporate governance structure. The results show that ownership concentration, executive shareholding percentage and executive compensation have the most significant influence on financial risks and all of them are negatively correlated with financial risks. Therefore, we recommend companies to improve the non-executive director mechanism of listed companies, to maintain a relatively concentrated ownership structure, and to take effective incentive mechanism for executives. These recommendations can help companies better manage financial risks.

An Empirical Investigation on the Impact of Corporate Governance Structure on R&D Intensity: The Case of Information Technology Industry in China

An Empirical Investigation on the Impact of Corporate Governance Structure on R&D Intensity: The Case of Information Technology Industry in China

Research on the Influence of Corporate Governance Structure on Corporate Financial Performance

With the deepening of economic globalization, the topic of corporate governance has become a hot topic. Good corporate governance has a significant role in balancing the interests of all parties within the enterprise, and then improving the financial performance of enterprises. This paper studies the corporate governance data and financial data of a total of 4813 listed companies in China disclosed in the annual report of the listed companies and CSMAR database from 2015 to 2021 for seven consecutive years. The principal component analysis method is used to construct the corporate governance index, and the OLS multiple regression model is used to analyze the impact of corporate governance structure on corporate financial performance from three dimensions : ownership structure, board characteristics and management incentives. The study finds that ownership concentration, executive incentive and number of executives are significantly positively correlated with corporate financial performance. the board size and the proportion of independent directors are significantly negatively correlated with corporate financial performance ; the nature of equity, equity balance, and the proportion of female directors are not significantly correlated with corporate financial performance. The research results help investors to understand the development law and future trend of corporate financial performance through corporate governance structure, which is of great significance for enterprises to improve corporate governance structure and enhance financial performance. At the level of theoretical development, the conclusions of this study promote the academic research process in related fields.

Impact of Corporate Governance Structures on Earnings Management and Performance: An Empirical Investigation of Quoted Manufacturing Companies in Nigeria

The study examines the impact of corporate governance structure on earnings management and corporate performance of manufacturing listed firms in Nigeria. The study used a sample size of twenty-seven listed manufacturing firm in Nigeria from 2012-2021. The study adopted a panel data research design. A multiple regression statistical tool was used to test the hypotheses. The predictor variable was measured using board size, board meeting frequency, audit committee size and audit committee meeting frequency. Earnings management was measured using Discretionary Accrual after the modified Jones (1991) model. Corporate performance was measured by return on security market stock (RET). Results of the multiple regression analysis indicated that the four governance categories have a negative and significant association with earnings management, but a positive and significant relationship with RET. The study recommended that there should an increase in board size, board meeting frequency, audit committee size and audit committee meeting frequency

The impact of corporate governance structure on corporate social responsibility: An applied study on Egyptian companies

The impact of corporate governance structure on corporate social responsibility: An applied study on Egyptian companies

The impact of corporate governance structure on the readability of board of directors' report in Egyptian environment

The main purpose of this study is to investigate the impact of corporate governance structure on the readability of Egyptian board of directors’ reports. The sample includes all EGX100 companies listed from 2013 to 2015, and the study uses multiple regression analysis to test the main hypotheses. Readability level is measured by applying the LIX formula, which suits the Egyptian context. The results demonstrate that board reports for EGX100 companies are complex and hard to read. In addition, four corporate governance variables, namely separation between CEO and chairman roles, number of board of directors’ meetings, foreign board members. and number of audit committee meetings have an impact on the readability level of board reports for EGX100 companies. Further, all control variables except company performance are significantly associated with readability. Greater awareness of the complex style of disclosure reports is crucial for emerging markets to easily convey the required information and enhance communication with stakeholders. Based on the limited literature addressing readability, the current study contributes by investigating the impact of corporate governance structure on readability of corporate board of directors’ reports in an emerging market.

Is corporate governance relevant to the quality of corporate social responsibility disclosure in large European companies?

PurposeThis paper aims to report on the quality of corporate social responsibility (CSR) disclosure in S&P Europe 350 companies. The paper also examines the impact of corporate governance structure and other firm-specific characteristics on the quality of CSR disclosure in European companies.Design/methodology/approachThe paper uses a disclosure index adopted from Jizi et al. (2014). Moreover, the paper contributes to the CSR disclosure literature by developing a new index that includes all the aspects introduced by the Global Reporting Initiative version 4.The data of CSR reporting are manually collected from the firms’ reports. The population and sample of this study are related to 350 companies operating in 16 European countries. Tobit regression analysis is used to test the hypotheses.FindingsThe results reveal that directors’ ownership, the presence of a CSR committee and firm size positively affect the quality of CSR reporting. Further testing of the independent variables on each CSR sub-category is made. The CSR sub-categories used are, namely, community involvement, employees, environment, social product and service quality, supply chain sustainability and business ethics. The presence of a sustainability committee inside the company is the only factor that shows a strong positive effect on the disclosure of every CSR sub-category and the CSR inclusive index.Research limitations/implicationsThe limitations of this research are that it focuses exclusively on the effect of the internal corporate mechanisms on the quality of CSR reporting; disregarding the economic, institutional, political and cultural factors that can play a role in influencing sustainability reporting of the companies.Practical implicationsBetter CSR disclosure leads to the firm having a better image in the society; this, in turn, has implications on firm performance, attracting funds, as well as recruiting and retaining high profile employees. Stakeholders are placing cumulative significance to corporate transparency particularly in the area of CSR. Managers should exert more efforts into not only improving the disclosure of the various facts of CSR but also into using the various media available for disclosure. Companies should take the initiative of establishing a CSR committee to ensure effective formation and implementation of CSR policies and disclosure of CSR activities.Social implicationsThe CRS research itself bears the merit of social implications. Moreover, the findings of this research pave the way for future researches to examine the effect of the adoption of global CSR initiatives and frameworks on the quality of CSR reporting.Originality/valueThis paper contributes to the CSR disclosure literature by developing a new index that includes all the aspects of CSR and exploring the relation between the rarely explored “presence of sustainability committee” and CSR disclosure, as well as testing a vast number of CSR sub-categories that is not extensively covered in previous studies. Moreover, the paper covers a large sample of companies across 16 European countries, in terms of their stand-alone sustainability reports, dedicated chapters of CSR in annual reports, integrated reports, website CSR information and any attachments/links provided on the websites for further CSR documents, brochures or data sheets.

Corporate Governance: Theory and Practice Impact of Corporate Governance on Firm Performance

Corporate governance is one of most widely researched topics in the different fields of management sciences. Additionally, governance plays equal role in firm performance in all countries especially developing countries become more important like Pakistan which contain equal importance to be studied with in subject to developed countries as to be well known in governance values, moreover there is increased interest to observe impact of corporate governance on different dimensions of firm performance. The objective of this paper is to underlay the corporate governance theories and practices and we have studied and try to analysis the impact of corporate governance structure on firm performance. This is a descriptive type of study in which we analysis different studies as coded all studies as they may have different implications in developed countries but here they may have different results as in developing countries and Pakistan is different among other Asian countries because of number of reasons as discussed in introduction with respect to its governance structure. We also have find interesting results as from other empirical studies recently a part of Pakistan perspective research and having number of important implications with respect of changes need to be made in Pakistan’s governance structure. Findings shows there is impact of corporate governance on firm performance and market performance of firm also been effected with governance style

Impact of corporate governance onsustainability and outreach of microfinance institutions: Empirical evidence from India

The study of corporate governance is gaining momentum as corporate governance compliance has been made mandatory. Even though made mandatorythe number of corporate governance issues are on the rise. The high profile scandals in Enron, World Com and also the Satyam scandal, Tata Mistry issues in India have also stimulated policy makers, investors, academicians and other stakeholders Innumerable studies have investigated the relationship between corporate governance factors and performance (Black 2006; Chhaochharia and Grinstein, 2007; Bennett and Robson, 2004), Spanos (2005) argues that corporate governance has significant implications for the growth prospects of an economy. In spite of the numerous studies the results rather remain inconclusive. Good governance is of crucial importance. The Centre for the Study of Financial Innovations (CSFI) 2008 and 2009 surveys of the commercial micro finance industry warned that poor corporate governance poses a serious risk for microfinance organizations (Augustine, 2012). The importance of good governance for MFIs has also been confirmed by the Microfinance Banana Skins survey (CSFI, 2011, 2012). In addition, the 2012 Microfinance Banana Skins survey shows that the top concern of investors in microfinance is the quality of their corporate governance of MFIs. The variables considered in the model are measures of sustainability and outreach measured by OSS and number of active borrowers and corporate governance characteristics which include number of independent directors, board size and the presence of women on board. The model used for analysis also included certain firm specific variables. These firm specific variables are total asset and gross loan portfolio which depicts the volume of business. To investigate the impact of corporate governance structure on the sustainability and outreach of MFIs, the study used a panel data OLS regression model for a sample of top 15 microfinance institutions quoted in the Bombay Stock Exchange. The results of the panel data analysis show that the CG factors board size has a significant negative relation whereas gender diversity shows significant positive relation with sustainability and outreach of MFIs.

The motivations of earnings management and financial aggressiveness in American firms listed on the NASDAQ 100

Purpose The purpose of this paper is to examine the motivations of earnings management and financial aggressiveness levels in the big 100 companies listed on the NASDAQ 100 after the 2007 financial crisis. Design/methodology/approach This paper uses two samples. The first contains 471 observations of 100 companies listed on the NASDAQ 100 for the period 2008-2012 and is used to examine the motivations of earnings management. The second represents 282 observations of companies listed on the NASDAQ 100 that use financial aggressiveness. The authors use a panel data model to analyze the effects of four explanatory variables (corporate governance structure, CEO compensation, CEO characteristics and audit fees) on both earnings management and financial aggressiveness levels. Findings The results of the investigation show the significant impact of corporate governance structure, CEO compensation, CEO characteristics and audit fees on reducing the earnings management and financial aggressiveness levels. Research limitations/implications The findings can be valuable to both investors and researchers. For researchers, the present work may help in explaining the motivations of earnings management and financial aggressiveness practices used by large American firms after the 2007 US financial crisis. For investors, this study serves to highlight the critical importance of corporate governance, CEO compensation and CEO characteristics in limiting such behaviors. Thus, investors are recommended to account for such variables in order to make effective investment decisions. As an extension to this study, researchers might consider other CEO psychological variables. Other market indices could also be considered in order to generalize and validate the results of the research. Practical implications Investors must take into consideration the corporate governance structure and ask for supplementary information about CEO characteristics to ensure better investment decisions. Originality/value In this paper, and in contrast to previous research, the authors test the impact of corporate governance structure, CEO compensation, CEO characteristics and audit fees together on the level of both earnings management and financial aggressiveness behavior for large US non-financial firms after the 2007 financial crisis. The authors show that older CEOs use less earnings management and financial aggressiveness. The findings can be valuable to investors, managers and regulators because they have implications for their interactive decision-making process.

기업 지배구조가 차입비용에 미치는 영향

This paper investigates the impact of corporate governance structure on the firm's debt costs under different governance environments. We find that after the 2008 banking crisis, family firms with controlling shareholders benefit from lower debt cost through the strong control rights of dominating large shareholders, compared with the firms with diversified minority-shareholders. Foreign investors are related statistically to the higher cost of debt. Before the 2008 banking crisis, cash flows and growth potentials are positively associated with the firm's cost of debt.

Corporate governance structure and firm’ financial performance: Evidences from Egypt

Recent financial international scandals have generated hyped interest in the area of corporate governance as a mean to mitigate financial problems faced in developing nations. The purpose of this study is to examine the link between corporate governance structure and firm’ financial performance in Egypt. The data for analysis are gathered from manual review of the financial statements and websites of the thirty enterprises that make up the (EGX 30) covering the four years period 2007-2010. Results from the study indicate that board size; the presence of audit committee; and audit quality significantly have relationship with firm’ financial performance measured by ROA and ROE. The results also, indicate that board independence; and institutional ownership have no significant correlation with firm’ financial performance. For CEO duality, the results indicate that CEO duality has a positive impact upon companies’ financial performance measured by ROE, at the same time, is not correlated with the ROA measure of financial performance. This study is important because it offers evidence on the impact of corporate governance structure on firm financial performance. In addition, it provides useful information that is of great value to policy makers, academics and other stakeholders.

An investigation on the effect of the corporation governance structure and free cash flow on over- investment

Article history: Received July 28, 2013 Received in revised format 20 November 2013 Accepted 8 January 2014 Available online January 9 2014 This study examines the impact of corporate governance structure and free cash flow on overinvestment on 121 firms listed in Tehran Stock Exchange over the period 2008-2011. To measure over-investment, free cash flow and corporate governance variables based on available information reported on financial statements are gathered and using cross section regression method, different hypotheses of the survey are examined. The results indicate that among corporate governance mechanisms investigated in survey, there is a significant relationship between percentage of non-executive directors and ownership concentration with overinvestment. However, there was no meaningful relationship among controlling shareholders and duality with over-investment. Furthermore, a significant relationship between free cash flow and over-investment has been found.

외국인 기관투자자와 기업지배구조가 차입비용에 미치는 영향

Abstract This paper examines the impact of corporate governance structure on the cost of debt. Total sample is divided into the small sample, the medium sample and the large sample of equity concentration, based on the equity ownership of large shareholders. Our regression results show that foreign investors are not associated with the cost of debt in the small and medium samples of equity ownership, whereas foreign investors are significantly associated with the reduction in the cost of debt in the large sample of equity concentration. Academic implications of our findings are that as the ownership of dominating shareholders rises, they seek their private interests of perks causing an increase in agency costs and a decrease in firm's economic value, thus expanding borrowing costs. Practical business implications are that foreign investors may alleviate agency problem of dominating large shareholders in the firm through monitoring activities, thus enhancing the efficiency of business decision-makings.

Corporate Governance Structure and Its Impact on Human Resource Management and Financial Performance

In this paper, the authors discuss the impact of corporate governance structure on human resource management and financial performance in the context of Colombian business environment. For this purpose, the paper will analyze the concept of corporative governance and discuss the streams of thought that study both the structure of corporate governance as the behavior of managers, the agency theory and stewardship theory. The methodological development aims to test four models by using regression analysis. The results allow to identify that the structure of corporate governance and distinctive capabilities of human resource are positively related to company performance, but this does not explain the attitude steward of the CEO and collaboration systems.

Corporate Governance Structure And Firm Performance: Empirical Evidence From Brusa Malaysia, Kuala Lumpur

The issue of corporate governance has been emerging as important phenomena that has been searched extensively both in developed countries due to its strategic impact on the monitoring of management activities and firms performance. Yet little attempt has been made in developing countries like Malaysia to ascertain what constitute corporate governance and its impact on firm's performance. Therefore, this study aims at examining the structure of the corporate governance and its impact on firms performance. This study is based on 100 firms, which are the component of the Composite Index (CI) serve as market barometer. This study employs cross-sectional annual multiple regression model to examine, what constitutes the corporate governance structure and its impact on performance of the firm. The analysis was based on annual regression over 5 years period from 1997 through 2001. Three different blend of surrogate for corporate governance were developed for good corporate governance structure. These are the independent non-executive (outside) directors, audit committee and remuneration committee. To isolate the size effect from the impact of corporate governance structure on firms performance, firms size was also included are variable in the model. The ratio of net income before tax to total asset is used as a surrogate for firms performance. Evidence from the study indicates that there is partial relation between corporate governance structure and corporate performance. The presence of both audit and remuneration committee serves as an important monitoring device to control management activities that lead to increase firm's performance. While on average, the presence of independent non-executive directors does not provide any significant explanation for the firm's performance. However, the firm size appears to have significant impact on corporate performance.

Corporate governance structure and firm performance in developing economies: evidence from Nigeria

PurposeThe purpose of this paper is to examine the link between corporate governance structure and firm performance in Nigeria.Design/methodology/approachThe present study uses the regression model to analyze publicly available data for a sample of 107 firms quoted in the Nigerian Stock Exchange for the fiscal years 1998 to 2002.FindingsThe empirical investigations showed that ownership concentration has a positive impact on performance. Although the results revealed no evidence to support the impact of board composition on performance, there is significant evidence to support the fact that CEO duality adversely impact firm performance. The result also suggests firm size and leverage to impact on firm performance. A new variable, identified as more than one family member on the board, is found to have an adverse effect on firm performance.Research limitations/implicationsThe study relied much on publicly available data for a sample of 107 listed firms in Nigeria for the fiscal years 1998 to 2002. Thus, effort should be made to look at this study in a more elaborate viewpoint and across borders.Practical implicationsGood corporate governance standards are imperative to every organization and should be encouraged for the interest of the investors and other stakeholders.Originality/valueInterestingly, from a developing country perspective, especially in sub‐Saharan Africa, the paper is the first of its kind and offers evidence on the impact of corporate governance structure on firm performance. The paper provides useful information that is of great value to policy makers, academics and other stakeholders.

The Impact of Corporate Governance Structure on the Efficiency Performance of Insurance Companies in Taiwan

The Impact of Corporate Governance Structure on the Efficiency Performance of Insurance Companies in Taiwan

Corporate governance as a determinant of corporate values

PurposeThis paper aims to test the impact of corporate governance structure on corporate values.Design/methodology/approachThe paper employs factor analysis and three‐stage least squares to identify and explain variance in corporate values.FindingsIn accordance with the proposed theoretical framework ownership, board and stakeholder structure are found to influence corporate values. When value determinants are taken into account there is no significant relationship between values and profitability.Research limitations/implicationsThis is a pilot study of 71 Danish firms. Further research needs to address measurement of corporate values and to test hypotheses on larger datasets.Practical implicationsOne practical implication is that corporate values should be grounded in the company's ownership, board and stakeholder structure. Real changes in corporate values may require real changes in governance structure.Originality/valueThe paper tests a new approach to the study of corporate values which connects values to governance. It thereby establishes empirical foundations for current discussions about corporate values. This should be important both to practical work on company missions, values and responsibilities and to academics who search for an operational approach to the study of corporate values.