Impact Of Corporate Governance Research Articles

Impact of Corporate Governance and Corporate Social Responsibility on Dividend Payout: Mediating role of Accounting Conservatism

Impact of Corporate Governance and Corporate Social Responsibility on Dividend Payout: Mediating role of Accounting Conservatism

Family business sustainability: the impact of governance and women’s empowerment in Saudi Arabia

Due to their strong emotional interest and ownership control, family firm owners significantly influence their firm’s strategies and governance, which has consequences for their business sustainability practices. The failure to establish or maintain formal organizational structures, and adopt good governance principles, may hinder family firms in their pursuit of long-term sustainability. This study empirically investigated the impact of corporate governance on family firms’ sustainability, with women’s empowerment and culture as moderating and mediating factors, respectively. Data for the study were obtained from a sample of 126 family firms from Saudi Arabia. The study adopted the partial least squares structural equation modelling (PLS-SEM) method. The study results empirically confirmed that corporate governance is positively associated with women’s empowerment, which also assists in achieving business sustainability in family-controlled firms. The adoption of good corporate governance policies, and empowerment of women through their appointment on corporate boards operating in a supportive culture, can reinforce an organization’s mission, purpose and strategies, which can create an enabling environment for family business sustainability.

The impact of corporate governance and state ownership on the default probabilities of Chinese firms

This study investigates the impact of state ownership and corporate governance mechanisms on the default risk in China since the sanctioning of default of state-owned firms in 2014. We find a positive relationship between inside ownership and default risk for both state-owned and non-state-owned firms. Institutional ownership serves as a monitoring mechanism that reduces default risk, irrespective of state ownership. Non-state-owned firms with CEO duality have higher default probabilities. Larger boards and more independent boards reduce the default probabilities of state-owned firms. Pandemic effects are less severe for state-owned firms.

The impact of corporate governance and ownership structure on the capital structure decisions of Saudi listed firms

The impact of corporate governance and ownership structure on the capital structure decisions of Saudi listed firms

Panel Data Analysis on the Impact of Corporate Governance on Firm Performance: Evidence from Bursa Malaysia Companies with Good CG Disclosures

Panel Data Analysis on the Impact of Corporate Governance on Firm Performance: Evidence from Bursa Malaysia Companies with Good CG Disclosures

The Effect of The Application of Good Corporate Governance (GCG) Principles on Job Satisfaction and Employee Performance

The application of good corporate governance principles is vital in all companies, particularly in the banking sector. This study examines the impact of good corporate governance on job satisfaction and employee performance, as well as the relationship between job satisfaction and employee performance. Public trust in state-owned banks is higher than that of private banks, making BNI an interesting case study. BNI, as the only state-owned bank operating globally, is known for its good corporate governance practices, as evidenced by its high CGPI score. This study focuses on permanent employees of BNI's Regional Office 15 in East Jatinegara, Jakarta. A survey was conducted among 125 respondents using SEM PLS. The results show that good corporate governance principles positively affect job satisfaction and employee performance, but job satisfaction does not directly impact employee performance. This research contributes to managerial implications, suggesting that companies can redesign positions, promotions, salaries, or rewards to enhance job satisfaction among employees. The findings of this study are expected to provide insights for managers to improve employee satisfaction and performance by implementing good corporate governance practices.

Examining the Influence of Macroeconomic Factors and Corporate Governance on Firm Performance in the ACE Market

This study focused on investigating the impact of macroeconomic factors and corporate governance on the financial performance of firms listed on the ACE Market of Bursa Malaysia. The ACE Market serves as a platform for smaller, emerging companies, providing them with an opportunity to raise capital with less stringent requirements compared to the Main Market. Using a panel data set of 72 companies over the period 2018-2022, the research employed panel-corrected standard errors (PCSE) regression. PCSE is a panel regression model that accounts for contemporaneous correlations, corrects for deviations from spherical errors, and enhances inference from linear models. The analysis revealed that ACE market companies, on average, show a negative return on equity (ROE) but positive numbers of women (NOW) and board meetings (NOM). The PCSE regression results, however, failed to show a statistically significant relationship between NOW and ROE, suggesting that the presence of women on the board of directors does not significantly impact the firm performance. The findings provide valuable insights for the firms in the ACE market companies regarding the consideration of important factors in improving firm performance. The research's broader goal is to inform the development of strategies fostering enhanced overall performance and sustainability in the ACE market. The study also suggests several recommendations such as broadening the scope and inclusion of international trade dynamics variables.

Examining the impact of corporate governance and family ownership on corporate performance: evidence from the Indonesian Stock Exchange

Examining the impact of corporate governance and family ownership on corporate performance: evidence from the Indonesian Stock Exchange

Pengaruh Good Corporate Governance terhadap Nilai Perusahaan dengan Corporate Social Responsibility sebagai Variabel Intervening pada Perusahaan Sektor Energi yang terdaftar di Bursa Efek Indonesia Tahun 2019-2022

The study aims to find out the impact of good corporate governance, which includes institutional ownership, board of commissioners size and board of directors size, on corporate value (PBV), with corporate social responsibility as an intervening variable, on energy sector companies listed in the IDX in 2019-2022. This research uses quantitative methods. The sampling technique uses purposive sampling of as many as 13 samples of energy sector companies. The data analysis method used is descriptive analysis, using path analysis using Eviews 12, and data has passed the classic assumption test. The results of the research showed that, in part, institutional ownership and the size of the board of commissioners had a positive and significant influence on the price to book value. in part, the size of the board of directors had a negative and significant impact on the price to book value. And the letter, corporate social responsibility, is unable to mediate the influence of institutional ownership, the board of commissioners, and the board of directors on price to book value.

Reducing airline accident risk and saving lives: financial health, corporate governance, and aviation safety

Purpose This study investigates the impact of financial health and corporate governance on aviation safety, aiming to fill a critical gap in existing research. The purpose of this study is to identify how these factors influence the safety records of airlines and provide insights for regulators, airlines and stakeholders to enhance aviation safety. Design/methodology/approach Using a comprehensive international sample spanning 1950–2009 and later, this empirical analysis draws on diverse databases. The authors examine 372 airlines across 70 countries from 1990 to 2016. The research uses statistical models to analyze the relationship between financial indicators, corporate governance quality and aviation safety, addressing limitations of prior single-country studies. Findings The findings reveal a significant inverse relationship between financial health and accident propensity, with profitable airlines exhibiting lower accident rates. Additionally, airlines with higher corporate governance quality, characterized by qualified directors and stable leadership, experience fewer accidents. The study identifies key factors such as pilot errors, mechanical failures and adverse weather, contributing to approximately 75% of accidents, emphasizing the importance of organizational control. Practical implications This research has crucial implications for aviation safety policies and practices. Regulators and international organizations, such as International Civil Aviation Organization and International Air Transport Association, should allocate resources to supervise financially vulnerable airlines and those with lower governance quality. Governments might consider incentivizing safety practices through tax deductibility for relevant expenses. Shareholders are encouraged to prioritize qualified, younger and less busy directors, recognizing their impact on safety performance. Originality/value This study contributes to existing literature by addressing methodological biases and offering a comprehensive international perspective. The identification of a link between financial health, corporate governance and accident rates in the aviation industry provides valuable insights. The research informs policymakers, regulators and industry stakeholders on effective strategies to improve safety by considering financial and governance factors under their control.

The Impact of Corporate Governance in Indonesia's Biggest Banks on Accounting Conservatism Through Audit Quality

The Impact of Corporate Governance in Indonesia's Biggest Banks on Accounting Conservatism Through Audit Quality

Governance mediation in the era of disruptive technologies: unveiling new perspectives on the risk of material misstatements

Purpose This study aims to examine the mediating effects of corporate governance mechanisms like the board of directors on the association between disruptive technology adoption by audit clients and the risk of material misstatements, including inherent risk and control risk. In particular, the authors study the mediating effects of board characteristics such as board size, independence and gender diversity. Design/methodology/approach Based on a sample of 100 audit clients listed on the FTSE 100 from 2015 to 2021, this study uses structural equation modelling to test the research objectives. Findings The findings indicate a significant and negative association between disruptive technology adoption by audit clients and inherent risk. However, there is no significant evidence observed for control risk. The utilisation of disruptive technology by the audit client has a significant impact on the board characteristics, resulting in an increase in board size, greater independence and gender diversity. The authors also find strong evidence that board independence mediates the association between disruptive technology usage and both inherent risk and control risk. In addition, board size and gender exhibit distinct and differential mediating effects on the association and across the two types of risks. Research limitations/implications The study reveals that the significant role of using disruptive technology by audit clients in reducing the risk of material misstatements is closely associated with the board of directors, which makes audit clients place greater emphasis on the construction of effective corporate governance. Practical implications This study offers essential primary evidence that can assist policymakers and standard setters in formulating guidance and recommendations for board size, independence and gender quotas, ensuring the enhancement of effective governance and supporting the future of audit within the next generation of digital services. Social implications With respect to relevant stakeholders, it is imperative for audit clients to recognise that corporate governance represents a fundamental means of addressing the ramifications of applying disruptive technology, particularly as they pertain to inherent and control risks within the audit client. Originality/value This study contributes to the existing literature by investigating the joint impact of corporate governance and the utilisation of disruptive technology by audit clients on inherent risk and control risk, which has not been investigated by previous research.

The Impact of Corporate Governance on Financial Distress: Evidence from Listed Financial Institutions in Sri Lanka

This study focuses on the role of corporate governance in predicting financial distress of companies in the finance sector in Sri Lanka. Over the past two decades, several finance sector companies collapsed in Sri Lanka affecting numerous victims with no proper compensation payments. The study aims to unveil the impact of corporate governance on financial distress of companies in the financial sector. A number of key variables included to measure the corporate governance such as board size, board gender diversification, frequency of board meetings, audit quality, board member remuneration, CEO duality, education level of the board members, and board independence. As control variables firm size, profitability, and financial leverage are considered. Financial distress is operationalized through the measures of institutions negative profit, cash flow, or worth for three consecutive years. Data from 54 listed financial institutions in Sri Lanka were collected from 2017 to 2022. Descriptive analysis, Pearson correlation analysis, corporate governance comparison model, and regression analysis were employed for data analysis. The findings indicate that board size, board gender diversification, frequency of board meetings, higher audit quality, education level of the board, board independence, and return on equity have a significant negative impact on financial distress. These findings can help identify at-risk financial institutions, support decision-making for investors and stakeholders, guide the implementation of corporate governance policies, and inform policymakers in developing new governance policies.

Impact of Environmental Regulation on Corporate Green Technological Innovation: The Moderating Role of Corporate Governance and Environmental Information Disclosure

Environmental degradation is an important issue facing the world today. Microcosmically, green technical innovation is needed to decrease environmental pollution. Therefore, exploring the relationship between the two is of great significance for promoting environmental protection and sustainable development. Thus, this research elucidates the interaction between green innovation (GI) and environmental regulations (ERs). This study utilizes the fixed effects model to examine how government environmental protection subsidies (EPSs) in market-incentive ER and environmental management system certification (EMSC) in voluntary participatory ER affect GI among listed companies in China. The sample observation period is from 2012 to 2021. Additionally, the impact of corporate governance (CGL) and environmental information disclosure (EID) on the relationship between ERs and GI within businesses is investigated. The empirical results show that both government environmental protection subsidies and environmental management system certification positively affect green innovation, and both corporate governance and environmental information disclosure positively moderate the impact of government environmental protection subsidies and environmental management system certification on green innovation. The above empirical results are still valid after a robustness test and can guide the formulation of government ERs, as well as corporate strategies for environmental management and GI.

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.

Impact of Green Corporate Governance and Green Finance on Sustainable Performance: A case of Manufacturing SMEs of Pakistan

Impact of Green Corporate Governance and Green Finance on Sustainable Performance: A case of Manufacturing SMEs of Pakistan

TATA KELOLA PERUSAHAAN DAN KECURANGAN PELAPORAN KEUANGAN: STUDI KASUS INDUSTRI BARANG KONSUMEN DI BEI

This research aims to investigate the impact of corporate governance on financial reporting fraud in the consumer goods industry listed on the Indonesia Stock Exchange (IDX). The corporate governance variables considered include board independence, the presence of a remuneration committee, CEO financial expertise, the presence of a financially literate board, board effort coverage, and managerial ownership. The research sample consists of 69 companies in this industry during the period 2018-2022. The data analysis method used is panel regression. The results of panel regression tests using Eviews 12 and IBM SPSS Statistics 25 show that the presence of a remuneration committee has a significant positive impact on reducing financial reporting fraud. However, the board independence variable does not have a significant effect on financial reporting fraud. Similarly, other variables such as CEO financial expertise, board financial expertise, board effort coverage, and managerial ownership also do not have a significant influence. The implications of these findings are discussed in the context of improving corporate governance practices to mitigate the risk of financial reporting fraud.

CGSC, audit quality, and Internet reporting: The mediation and moderation analysis

Research Questions: In what ways does the corporate governance scorecard (CGSC) and internet reporting intersect with audit quality? To what extent do technological advancement and auditor qualifications moderate the association between internet reporting, corporate governance (CGSC), and audit quality? In what capacity does audit quality mediate the association between internet reporting and the corporate governance scorecard (CGSC)? Motivation: The rationale for conducting this study is to fill a known void in the academic literature concerning corporate governance in developing nations, with Egypt serving as an example. Idea: The main idea of our study is to understand the impact of CGSC-measured corporate governance on internet reporting of financial and non-financial information. Our study also seeks to determine whether audit quality acts as a mediator and whether auditor qualifications and technological advancement moderate this relationship. Data: Using a questionnaire, 258 auditors from various auditing firms, including the Big4 and national audit firms with international affiliation, data were collected. Tools: Factor analysis, Pearson correlation, and Structure Equation Modelling. Findings: Corporate governance assessed by CGSC improves the Internet reporting through the mediation of audit quality, with auditor qualifications and technological advancement serving as moderators. Contribution: This study contributes to the scholarly comprehension of the association that exist among CGSC, audit quality, and internet reporting. Implications for utilizing CGSC as a metric for evaluating corporate governance practices and its influence on online reporting are both theoretical and practical in nature. The investigation contributes valuable perspectives that can guide decision-making in practical and theoretical settings, thereby enhancing the academic discourse.

Disentangling ESG: Environmental, social and governance ratings and financial performance of Polish listed companies

Socially responsible investments are a significant element of the global capital market and are becoming increasingly important also in the eyes of Polish investors. ESG ratings are a crucial decisive criterion, as they provide information on the corporate governance (G), and social (S) and environmental (E) activities, of companies. Even though the abovementioned areas differ significantly, the use of ESG ratings by investors is often narrowed down to the total ESG score. Additionally, the literature does not provide unambiguous results on whether the impact of total score as well as the individual pillars of E, S and G on the accounting-based financial performance of companies is statistically significant, and positive or negative. Sparse academic studies concentrate mainly on highly developed markets and accounting-based measures of profitability, leaving aside emerging markets, like Poland, and the other main characteristics of financial performance, like liquidity, efficiency, or leverage. The aim of this paper is therefore to fill the above gap by identifying the dependence of ratings in E, S and G areas and the accounting-based financial performance of companies listed on the Warsaw Stock Exchange. Selected financial parameters and company quotations were taken from the Notoria Serwis SA database, while data on ESG ratings from Refinitiv Eikon were used to perform correlation analysis. The analysis covers the years 2013–2022. The findings indicate a significant positive bi-directional impact of corporate governance (G) and efficiency, as well as of controversies score and efficiency. A linkage has also been revealed between controversies score and profitability. However, the hypothesis of an unequivocally positive impact of ESG factors on financial results, or conversely of financial results on ESG aspects, should be rejected.

Stock Liquidity, Corporate Governance and Dividend Payout: Evidence From Tehran Stock Exchange

The main goal of this article is the impact of Corporate Governance and Stock Liquidity on the Dividend payout. In order to test the hypotheses, a sample of companies accepted in the Tehran Stock Exchange was selected between 2016 and 2021, which was analyzed using R software. The research method is multivariate regression using panel data. According to the research findings, there is not a meaningful relationship between Corporate Governance, Stock Liquidity and Dividend payout. Companies finance through debt regardless of the stock liquidity, therefore, stock liquidity does not have a decisive role in financing. Better corporate governance mechanisms apply more supervision, so that these mechanisms prevent the opportunistic behavior of managers and preventing them from hiding and manipulating information. By testing the mutual effect of stock liquidity and the quality of corporate governance, a significant relationship was found with the dividend payout of companies accepted in the Tehran Stock Exchange. The study tries to contribute to the current literature of corporate governance and stock liquidity by providing new evidence on the causal impacts of stock liquidity and corporate governance quality on dividend payout. Also, this study contributes to the literature on stock liquidity, corporate governance quality and dividend payout by exploring the mechanism of corporate governance quality and dividend payout from equity financing and internal financing.