Influence Of Corporate Governance Practices Research Articles

Corporate governance and firm value: Bangladeshi manufacturing industry perspective

PurposeThe study aims to investigate the influence of corporate governance practices on enhancing firm value in manufacturing industries in Bangladesh.Design/methodology/approachThe study sample consists of 131 companies from 10 manufacturing industries listed in Dhaka stock exchange (DSE). Using the multiple regression method, the study analyzed 1,193 firm-year observations from 2012 to 2021.FindingsThe outcome reveals that managerial ownership, foreign ownership, ownership concentration, board size, board independence, board diligence and auditor quality have a significant positive influence on firm value. In contrast, audit committee size has no significant influence on firm value.Originality/valueThe practical implications of the current study demonstrated that good corporate governance creates value and must be invigorated for the interest of all stakeholders. Policymakers should formulate specific guidelines regarding firms' ownership structure and audit quality issues.

Impact of the board of directors’ structure on the company’s financial results

Subject of study — role of corporate governance practices in managing the largest Russian banks. The relevance of the study is due to the fact that decisions affecting financial results of companies depend on socio-demographic characteristics of their decision-makers and technology of these decisions. The Board of Directors is the body that controls the activities of management, and the efficiency of management decisions depends on its structure. The aim of the study is to estimate the influence of socio-demographic characteristics of directors on financial results of banks. In this research the authors use such method as panel regression analysis to estimate the significance of the obtained results. The sample captures the data on 6 largest Russian banks by total assets for the period 2011–2020. As the result, gender board diversity has a positive and statistically significant impact both on ROA and ROE. Meanwhile, the influence of national diversity on ROE is insignificant whereas the effect of this variable on ROA is significant and negative. In addition to board diversity features, business size is also an important determinant of profitability. The negative influence of this indicator should not be understood literally. The largest Russian banks are examined in this article, so the growth in the volume of their assets is associated with a decline in profitability in relative terms. The analysis also reveals that board independence and leverage do not affect profitability. Conclusion confirm a positive influence of board gender diversity on financial performance of Russian banks. Along with that, a negative impact of national diversity and an insignificant impact of board independence refute the results reported by both foreign and Russian authors. Further research on the influence of corporate governance practices on financial performance of Russian companies is required.

Corporate Governance and Service Delivery in National Government Administration: A Case of Kirinyaga County, Kenya

Corporate governance is vital in ensuring ethical operations and stakeholder interests in companies, preventing fraud, misconduct, and conflicts of interest, leading to a more sustainable and profitable business. Concerns around corporate governance practices in government agencies can hinder their effectiveness and ultimately impact the quality of services delivered to citizens. This study aimed to examine the influence of corporate governance practices on service quality in the national government administration, case of Kirinyaga County. The specific objectives of this study were to examine the influence of organizational structure, stakeholder participation, ethical issues, and legal framework/policies on the service delivery of Kirinyaga County's national government administration. Concerning the theoretical aspect, the study was anchored by agency theory, resource dependency theory, stakeholder theory, and the SERVQUAL model. This study utilized a descriptive research design. The target population was from all the administrative units of Kirinyaga County, namely: Kerugoya Central, Kerugoya East, Kerugoya West, Mwea East and Mwea West, which formed the unit of analysis. The unit of observation was 143 officials from each of those units. The study adopted a stratified random sampling technique to select the study participants. Primary data was obtained by using a semi-structured questionnaire. To validate the questionnaire, content, construct and face validity were used. The study instrument's reliability was measured using the Test-Retest method, and Cronbach's Alpha was utilized as the reliability measure. A Cronbach's alpha equal to or greater than 0.7 was set as the threshold for reliability. As a result, the study instrument was found to be reliable. Data collected were coded and entered into the software Statistical Package for Social Sciences, which was used to generate descriptive and inferential statistics. Descriptive statistics were utilized to summarize the observed data, which included frequencies, percentages, mean, and standard deviation. Additionally, inferential statistics were carried out using correlation and multiple regression analysis. The results of the correlation analysis indicated that all variables had a positive linear correlation. Regarding the impact of corporate governance measures on performance, the regression analysis indicated that the organizational structure and ethical issues variables had a strong positive relationship with national government service delivery. However, the stakeholder participation and legal and policy framework variables had a negative effect on the quality of service delivery. Based on the findings of the study, it can be concluded that maintaining an appropriate organizational structure and applying the appropriate ethical standards are key factors in determining positive service delivery. National government administration units that employ these two initiatives are likely to provide better quality service. In light of this, National government administration units should prioritize maintaining an appropriate organizational structure and implementing ethical standards to improve the quality of service delivery. Additionally, further research should be conducted on the negative impact of stakeholders' participation and legal and policies framework on service delivery to better understand how to mitigate these effects. By considering these recommendations, national government administration units can improve their service delivery and better serve their constituents.

CORPORATE GOVERNANCE AND ITS IMPACT ON MARKET RETURN AND MARKET CAPITALIZATION IN BANKING SECTOR OF PAKISTAN

This study investigated the influence of corporate governance practices on bank market return and market capitalization in Pakistan. A sample of 19 commercial banks was selected using a simple random sampling method, and data was collected from 2010 to 2020. The study employed pooled OLS, Fixed Effect, and Random Effect models to analyze the relationship. The findings revealed mixed results concerning the impact of corporate governance variables on market return. The regression results highlight the influential role of director compensation and audit meetings on market capitalization, revealing a significant positive correlation with higher firm values. In contrast, variables such as board size, board composition, independent directors, and audit committee size and independence exhibit a lack of statistical significance in their impact on market capitalization. Moreover, board independence demonstrates statistical significance solely under the pooled OLS and Fixed Effect models. Similarly, variables including board size, board composition, director compensation, audit committee meeting frequency, and audit independence display no significant association with market return. These findings align with previous research in the field.

The Impact of Corporate Governance and International Orientation on Firm Performance in SMEs: Evidence from a Developing Country

Small and Medium-Scale Enterprises (SMEs) have been adopting corporate governance and international strategies to improve performance. However, little is known about the success of corporate governance practices and the international orientation of SMEs, especially in developing countries. Therefore, the objective of this paper is to examine the influence of corporate governance practices and international orientation on the performance of SMEs in a developing country. We used a survey to hand-collect data from 270 SMEs in Ghana in 2022. Consistent with prior studies, we perform robust reliability tests, including confirmatory factor analysis and the Cronbach alpha test. Further, we use the structural equation modelling to test the hypothesis of whether corporate governance and international orientation affect firm performance in SMEs. Our results are as follows. First, we found that international orientation drives good corporate governance practices, and this exerts a positive influence on firm performance. Second, we established that international orientation positively and significantly moderates the relationship between corporate governance and firm performance. The results imply that engaging in the international market offers new knowledge to SMEs in developing countries. Therefore, investors and the government should develop strategies and policies that support the internationalization of SMEs in developing countries.

Influence of Corporate Governance Practices on Quality of Financial Reporting in the Nigerian Public Sector

Purpose: This study assessed the influence of corporate governance (CG) practices on quality of financial reporting (QFR) in public sector institutions in Nigeria.
 Methodology: Descriptive research design and survey method was used to collect data from a total of two hundred and ten (210) senior level officers from finance and accounts, internal audit and senior management staffs from related departments of ten (10) public sector entities were sampled and selected using Multi-Stage sampling method. Relevant information was elicited from selected personnel using structured questionnaire. Data analysis involved descriptive and inferential statistics using Stata. In determining the relationship between corporate governance and quality financial reporting (QFR), some principles of good governance as listed by Organization of Economic Corporation and Development (OECD) were regressed against the characteristics of quality financial reporting as identify in the accounting framework. 
 Findings: It was discovered that some of the corporate governance principles like compliance with regulations, fairness, effective risk management, good internal auditing and ownership inclusiveness do positively and significantly influence quality of financial reporting. Characteristics like officer responsibility, openness and responsiveness shows weak influence. Gender and other demographic characteristics also have weak effect on QFR. Even the level of awareness of application of corporate governance principles to public sector is low and this affects compliance.
 Recommendation: The study recommend creation of better awareness and compliance with CG principles will help to improve quality of financial reporting in the public sector.

Corporate Governance Practices and Organization Performance Among Deposit Taking Microfinance Institutions in Nairobi County, Kenya

The purpose of this study was to assess the influence of corporate governance practices on organizational performance of Deposit Taking Microfinance Institutions in Kenya. The following specific objectives guided the research: to assess the impact of the corporate governance documentation, corporate governance framework, corporate governance policies and corporate governance reporting on the performance of Deposit Taking Microfinance Institutions in Nairobi County, Kenya. The study also investigated the moderating effect of corporate culture on the relationship between corporate governance practices and performance of DMFIs. A descriptive research design was employed to fulfill the study's objectives. All 13 registered Deposit Taking Microfinance Institutions in Kenya were included in the study's population. Primary and secondary data were used in the study. Measures of tendency such as means, frequencies, and standard deviations were used in data analysis. Tables and figures were be used to show the study's findings. From the correlation analysis, the study found out that all the variables including corporate governance documentation, corporate governance framework, corporate governance policies, corporate governance and corporate culture had a positive significant effect on the performance of the deposit taking microfinance institutions in Nairobi county (p<0.01). This was supported from the regression analysis where the corporate governance practices studied were found to explain 74.5% of the variations in performance of the deposit taking microfinance institutions in Nairobi county (R2=0.745). This confirms a strong positive relationship between CG practices and performance. The moderated regression analysis model further showed that 76.2% of performance of the DTMFIs can be accounted for by the independent variables when corporate culture was moderating the relationship (Δ Adjusted R2=0.017). The study therefore concludes that appropriate formulation and implementation of these CG practices as per each firms’ requirements is critical in ensuring improved organizational performance. The study also concludes that the type of corporate culture in an organization not only affect the type of corporate governance practices that are adopted by a particular firm, but also the resulting effect of organizational operations and organizational performance accrued in the long run. The study recommends that financial corporate reports must now contain more information due to the increased complexity of business, as investors rely on corporate information when making investment decisions. The study recommends that firms should adopt diverse board duties, share information with employees to ensure that they are committed to corporate governance principles, and give crucial information to shareholders through disclosure of information, particularly financial reports. The study also recommends that current organizational principles shouldn't interfere with their work, and the organizational culture should promote organizational performance. Further, the study also recommends that in order to ensure sound corporate governance across all industries, the policymakers take the appropriate actions.

Corporate Governance and Financial Distress: Empirical Evidence from listed Consumer Services Firms in Sri Lanka

Objective - COVID – 19 has created unique and very profound challenges for almost all listed firms in Sri Lanka. The purpose of the study is to examine the influence of corporate governance practices on the financial distress status of listed companies in the consumer services sector in Sri Lanka. Methodology/Technique – To assess the level of corporate governance, the current study constructs six dimensions of corporate governance, such as board size, board composition, CEO duality, board meeting, director ownership, and audit committee size. The Altman Z-score is used as a proxy for financial distress and measures it inversely. The bigger the Z-score indicates the smaller the risk of financial distress. Using 108 individual observations of consumer services firms listed on the Colombo Stock Exchange for the period of 2019 to 2021 and employing the fixed effects model, the effect of corporate governance practices on financial distress is evaluated. Findings - The results from panel data regression analysis reveal that firms having a large number of directors on the board have a low likelihood of financial distress of listed consumer services companies in Sri Lanka. Furthermore, when a chief executive officer serves as the chairman of the board at a company, the more likely it is that the company will experience financial distress. The current study also provides evidence that firm-specific characteristics, such as firm size, leverage, and profitability, could be useful in determining the likelihood of financial distress. Novelty - This study extends the existing literature by investigating the association between corporate governance practices and financial distress in listed companies in the emerging markets during the period of the COVID 19 pandemic. Type of Paper: Empirical. JEL Classification: G30, G34 Keywords: Board size, CEO duality, corporate governance, financial distress Reference to this paper should be referred to as follows: Balagobei, S; Keerthana, G. (2022). Corporate Governance and Financial Distress: Empirical Evidence from listed Consumer Services Firms in Sri Lanka, Acc. Fin. Review, 7(1), 39 – 50. https://doi.org/10.35609/afr.2022.7.1(1)

The influence of Corporate Governance Practices on Financial Performance of Small and Medium-Sized Enterprises in Ghana

This study examined the influence of corporate governance practices on the financial performance of Small and Medium Sized Enterprises (SMEs) in Ghana. The study involved a survey of 320 owners/managers of SMEs through a stratified random sampling technique. The main instrument for the collection of data was a questionnaire whiles data was analysed using statistical tools such as mean and standard deviation as well as the use of multiple regression technique to answer the research questions. The results of the study showed that all the four areas of corporate governance practices examined in the study which include the size of the advisory board, the composition of the board, the managerial competence as well as financial disclosure and transparency were positively associated with financial performance of SMEs in Ghana. However, there is poor financial disclosure and transparency among SMEs in Ghana. Weak legal controls and law enforcement, and poor financial disclosure systems are some of the obstacles that affect the practice of corporate governance among SMEs. The study concludes that corporate governance practices of SMEs have significant impact on their financial performance. On the basis of the above findings and conclusion, it was recommended that shareholders of SMEs should ensure that their respective enterprises have active and sizeable advisory boards who meet regularly to support in the management of the firms. Also, managers of the firms should improve their managerial competence through training and development programmes as that affect performance of SMEs in Ghana

The influence of corporate governance practices on public sector sustainable development: A developing economy study

The study examines the relationship between corporate governance practices (CGPs) on the public sector’s investment in water management (IWM). The critical question addressed in the paper was how good CGPs can provide a vehicle for increasing IWM in the context of local government. The need for addressing an underinvestment gap in local government is necessitated by the surge in poor CGPs that continue to constrain efforts to attract and manage water sector investments (WSIs) (Jacobs, 2019). The study employed secondary data (2009–2019) concerning a sample of eight South African metropolitan municipalities (SAMMs) collected from the annual reports. The multivariate regression analysis is employed using the pooled ordinary least squares (POLS) and feasible generalised least squares (FGLS) models. The results revealed that gender equity and external audit outcomes had a positive and significant relationship with IWM except for human resources which shows an insignificant effect. The results have important implications for water service authorities (WSAs), the public sector, and policymakers to incorporate good CGPs for improved management of water investments to eliminate water provisioning challenges. The research findings acknowledge the degree of adherence to good CGPs requires endless attention. Future studies should focus on ensuring local municipalities comply with the existing water provisioning governance framework to eliminate shortfalls in IWM.

Influence of Corporate Governance Practices on Performance of Faith-Based Hospitals: A Systematic Review

Influence of Corporate Governance Practices on Performance of Faith-Based Hospitals: A Systematic Review

Corporate Governance Practices and Performance of Kenya Revenue Authority, Nairobi County

Corporate governance can potentially impact every aspect of how we conduct business today and more so, many companies internationally are willing to take the risk because results are great and outstanding. Adherence to corporate governance especially for public institutions can result in enormous reductions in cost or removal of unnecessary steps that cut down on time. The main research objective is to establish the influence of corporate governance practices and performance of Kenya Revenue Authority. The specific objectives of the study was to establish the influence of board structure on performance of Kenya Revenue Authority, to examine effect of ethical practices on performance of Kenya Revenue Authority, to establish the influence of CEO duality on performance of Kenya Revenue Authority, and to determine the effect of audit committees on performance of Kenya Revenue Authority. This study was guided by three theories which include the resource dependency theory, stewardship theory, and agency theory. The present study employed a case study approach and adopted descriptive research design. This study targeted all the employees at KRA (Kenya) which currently has a pool of 289 employees based in the Headquarters (Times Towers) (KRA, 2017). Simple random sampling technique was used to select 60 personnel from the population which represents 20.76% of the whole population. This study used both primary and secondary data. Primary data was collected through interviews while secondary data involved other sources of evidence such as internal company documents and company websites. Questionnaires were administered to the respondents through a drop and pick method. The researcher left the respondents to fill the questionnaire at their own time and collect the completed form within one week. This availed the respondents enough time to read, understand and fill the forms with maximum concentration. The Data obtained from the field was checked. The study generated both qualitative and quantitative data. For the quantitative data, regression analysis was used to examine the relationship between the variables. The qualitative data was first organized into themes corresponding to the study objectives. Content analysis of qualitative data included text analytics and document analysis. The validity of the data was measured by data obtained from senior managers of various departments of KRA. The significance of the study is that it would help researcher understand how corporate governance affects organizational performance. From the findings, the performance of Kenya Revenue Authority is significantly influenced by the corporate governance practices employed by the governance committee which also scrutinize all matters relating to corporate governance in the company and meets at least once during the year. There is also a nomination committee that lead the process for board appointments, make recommendations to the board and be involved with succession planning in the company. The researcher recommends that, the management should maintain and develop a responsible, creative, innovative board and a more appropriately elected and governed boards since transparency is one of the most essential indicators for evaluating corporate performance.

The Influence of Corporate Governance Practices on Financial Distress of Firms Listed at the Nairobi Securities Exchange: Moderating Influence of Financial Leverage

The Influence of Corporate Governance Practices on Financial Distress of Firms Listed at the Nairobi Securities Exchange: Moderating Influence of Financial Leverage

Exploring Linkages Between Corporate Governance and Business Performance: Does Good Corporate Governance Lead to Enhanced Business Value?

This study explores the influence of corporate governance practices in corporate boards on firm performance and draws insights on the relative importance for companies for fostering the development of governance mechanisms in business. The study examines 50 firms belonging to the benchmark index of the National Stock Exchange of India (NIFTY 50) and tracks them for over a five-year period. The study uses fixed and random effect econometric models to explore the relationship between corporate governance variables, and firm performance using both accounting returns (EVA, ROA and ROE) and market returns (MVA). The study finds that corporate governance variables significantly improve firm performance or value creation. Especially, multiple directorships, involvement of foreign institutional investors and increase in promoter holdings may significantly affect returns of the firm. The study suggests that it may be useful to foster better corporate governance practices and monitor linkages with firm performance as the effect is influenced by other control variables also.

Do Corporate Governance Practices Influence Working Capital Management Efficiency? Evidence From Listed Manufacturing Companies in Sri Lanka

The purpose of the study is to investigate the influence of corporate governance practices on working capital management efficiency in the listed companies of the manufacturing sector in Sri Lanka. Board meeting, board size, CEO tenure and size of the audit committee are used as corporate governance practices and the cash conversion cycle is calculated to measure the working capital management efficiency. Sales growth and firm size are considered as control variables to evaluate the influence of corporate governance practices on working capital management efficiency. Relevant data are extracted from the annual reports of 30 listed manufacturing companies for the period from 2013 to 2017. Finally, 150 observations are used for the data analysis. Pearson correlations are executed to determine the relationship between corporate governance practices and working capital management efficiency. OLS regression analysis is performed to determine the explanatory power of the combination of corporate governance practices on the efficiency of working capital management. The correlation analysis shows that board meeting, CEO tenure and firm size have a significant positive relationship with cash conversion cycle. The regression results suggest that board meetings and CEO tenure have a significant positive influence on cash conversion cycle. Generally, the shorter the cash conversion cycle is better for the business, therefore, according to this result the increase in a board meeting and CEO tenure have the considerable decreasing in liquidity position in an organization. Therefore, the outcome of the study may be useful to the top management of the firms and practitioners when they are implementing governance mechanisms in order to enhance the working capital efficiency.

Corporate Governance and Performance: An Empirical Investigation of Sugar Producing Companies in Kenya

Corporate governance is concerned with the running of an organization in a way that guarantees that its owners or stockholders receive a fair return on their investments while the expectations of other stakeholders are also met. The study sought to examine the relationship between corporate governance practices and performance of sugar producing companies in Kenya. The study intended to establish the corporate governance practices adopted by the companies and the influence of these practices on their performance. Through a cross-sectional survey of 11 companies, data were gathered using a structured questionnaire and analyzed using both descriptive and inferential statistics. The results indicate that all the studied companies practice some form of corporate governance although the degree of adoption differ across them. The study also revealed that board decisions are not influenced by founder members and that it was not common for board members to engage in financial transactions with the companies. The results of regression analysis show that overall, there is a positive and statistically significant influence of corporate governance practices on performance of the sugar producing companies. The study draws a conclusion that a combination of good corporate governance practices is responsible for a large percentage of good performance achieved by the sugar companies. Individual corporate governance practices acting on their own do not always lead to improved performance. The study offers support for theories that anchor performance implications of good corporate governance as well as findings of previous similar studies. Based on the findings of the study, recommendation for policy and practice are made as well as suggestions for further research.

Corporate governance practices’ influence on customer loyalty in Nigerian retail banks

Orientation: Customer loyalty is crucial in the retail banking sector, given the increasing competition within the industry and from emerging non-traditional players.Research purpose: This study sought to establish the influence of corporate governance practices on customer loyalty in Nigerian retail banks.Motivation for the study: Conducting a study of this nature highlights how corporate governance practices contribute to customer loyalty in the retail banking sector of Nigeria as a developing country in Africa.Research design, approach and method: Premised on relationship marketing and stakeholder theoretical orientations, the study used a sample of 424 bank customers scientifically selected from eight commercial banks identified within Ibadan Metropolis, Nigeria. A six-construct survey instrument was used to collect relevant data. Partial least square structural equation modelling (PLS-SEM) version 3 was utilised to ascertain the interaction between customer loyalty and corporate governance practices domains.Main findings: The result of the PLS-SEM model established that all corporate governance practices had a positive effect on customer loyalty at a very significant level (p < 0.01), except transparency and disclosure, which had an inverse relationship and effect on customer loyalty, though at a non-significant level (β = -0.005, p = 0.93). Presence of competent bank management had the highest positive influence on customer loyalty.Practical/managerial implications: The findings of this study will be useful for bank management and role players in the financial and other service sectors on the importance of good corporate governance and specific attributes of the identified corporate governance that are critical for business success.Contribution/value-add: This study was able to identify corporate governance practices from customers’ perspective, which is a departure from the traditional shareholder perspective in business studies. It has advanced the relatively known terrain in corporate governance and business literature by opening up new debates on the relevance of corporate leadership beyond the confines of the boardroom.

The influence of corporate governance practices on corporate social responsibility reporting

PurposeThis study aims to investigate if “corporate governance practices” have any influence on firm corporate social responsibility (CSR) reporting by listed firms in Bangladesh.Design/methodology/approachThis study uses a content analysis to examine specific corporate social responsibility (CSR)-related attributes from 101 publicly listed non-financial firms in Bangladesh. Using various attributes of social and environmental reporting, a disclosure index is also constructed.FindingsThe finding of this study is that corporate governance practices do not have any influence on firm CSR reporting. The findings, in particular, show that CSR disclosure by firms is not responsive to new corporate governance regulations.Research limitations/implicationsThis study is subject to some limitations, such as the subjectivity or judgement associated in the coding process.Practical implicationsThe implication of this study is that firm CSR practices are legitimization exercises and firms will not make increased disclosure due to regulator’s quest for institutionalisation of corporate governance practices.Originality/valueThis study contributes to the literature on the practices of CSR reporting in the context of developing countries following regulator’s quest for institutionalisation of corporate governance practices.

Corporate Governance and Cash Holdings: Empirical Evidence from an Emerging Country, Sri Lanka

This study examines the influence of corporate governance practices on cash holdings of Sri Lankan listed companies. It develops hypotheses about the relationship between cash holding and corporate governance practices such as size, frequency of meetings, independence, independent chair and gender diversity. Using multiple regression analysis on data collected from the corporate annual reports of 90 listed companies, the study finds that corporate governance practices such as board size and gender diversity have a significant negative influence on cash holdings as well as independent chair has a significant positive influence on cash holdings. However, there is no evidence that board meetings affect cash holding in Sri Lankan companies. The study contributes to the literature on the factors that make variation in the amount of cash holding of the listed company and it may be useful for financial managers, business analyst, financial controller, operations managers, investors, financial management consultants and other stakeholders.

Does corporate governance influence earnings management?: Evidence from Singapore

The industrial revolution followed by globalization and multi-nationalization of businesses has enhanced the need for best practices of corporate governance. This paper examines the influence of corporate governance practices on earnings management. Specifically, the core objective of this study is to test whether the roles of board of directors and other key committees influence Earnings Management (EM) through Discretionary Accruals (DAC). This study has analyzed the governance practices of 326 companies listed in the Singapore stock exchange by using the observations of two years. The structural model linking the corporate governance practices and EM through DAC has been tested using Lisrel 9.1 student version. The key findings of the study are: (1) the chances of recording discretionary accruals are high if the board size is big implying that higher control can lead to better management. These controls must come through appointment of more independent directors for Boards that are big; (2) board independence, segregation of duties between the CEO and chairman, sizes of the audit committee and nomination committee have significant positive influence on board size; (3) the nomination committee influences the remuneration committee directly implying that the motivation for recording discretionary accruals is higher leading to higher possibilities of earnings management; and (4) board size mediates the relationship between corporate governance practices (board independence, segregation of duties between CEO and chairman, audit committee size and nomination committee size) and EM through DAC implying that board size is crucial to effect better control. We accentuate that segregation of responsibilities between the remuneration committee and the nomination committee, when the Board size is big, will reduce earnings management through discretionary accruals. These governance practices will reduce the agony of stakeholders due to broken trust. The findings are pertinent to Asian countries where the institutional investors have a very small role to play. The onus of protecting the minority shareholders and foreign investors are in the hands of insiders. This requires effective corporate governance practices. The regulatory bodies must ensure that the practices of good governance are strictly adhered to.