Influence Of Corporate Governance Practices Research Articles

Corporate governance practices in emerging markets: Evidence from Kazakhstan financial system

This research examines the influence of corporate governance practices on leverage and financial performance of firms in financial system of Kazakhstan. The research employs level data for financial institutions, listed on Kazakh Stock Exchange by using multivariate regression analysis under fixed effect model approach. Results of panel study showed that board size is significantly positively correlated with debt to equity ratio, and with the number of independent directors. Private investors’ shareholding is significantly negatively correlated with debt to equity ratio. CEO/Chair duality is significantly positively correlated with the debt to equity ratio. The size of form has also significant effect on the leverage level. Analysis of the banking sector showed a negative relationship between managerial ownership (MO) and both market value (Tobin’s Q) and performance (ROA and ROE). Moreover, there are statistically significant relationship between bank performance and stock market capitalization, scaled to GDP of country, and there is statistically significant negative relationship between Tobin’s Q and net interest income to total operating income as a proxy for income diversity. The findings also show higher risk-taking behavior (capital market indicators as risk measure, Z-score and the percentage of non-performing loans in total loans as NPL/L). There is a positive relation between MO and Z - scores, and negative relationship between MO and NPL. Moreover, there are significant relationship between banking risk and development of the financial markets which is proxy by private credit and stock market capitalization, both scaled by GDP of country, and, there is statistically significant negative relationship between debt intensity and risk.

Corporate governance and corporate investment: an exploratory research in the Brazilian publicly traded companies listed in Bovespa

This paper aims to study the influence of Corporate Governance practices in the institutional decision to invest. It was developed a Governance Index (iGov), a descending rank was prepared and a test was applied to check if the companies in the first 25% of this rank have the highest number of institutional investors among their biggest investors than the companies of the last 25%. For the validation of IGov it was tested if the companies with the best marks present highest Returns, lowest Capital Cost, highest Market Value, and highest Competiveness within the sector, lowest Beta, highest EVA® and lowest Share concentration. It has been proved that the best Corporate Governance practices do not have any statistical relation with the presence of more Institutional Investor.

Corporate governance and intellectual capital: evidence from an academic institution

PurposeThe purpose of this paper is to examine the relationship between intellectual capital (IC) and corporate governance (CG) in a university setting. In particular, the aim is to argue that the lack of good CG can lead to an inability to attract and retain IC.Design/methodology/approachThe article tests the CG/IC relationship at the American University of Beirut (AUB) by surveying the perceptions of full‐time faculty members. The survey addresses, in particular, the factors that attract IC to AUB and their perception of several aspects of CG at the institution.FindingsThe results suggest that CG and IC are indeed related and that faculty members view CG as a major factor for IC attraction. Respondents also consider that existing IC enhances the institution's ability to attract more IC. However, the mixed perceptions of the governance structure in place at AUB, as revealed by faculty responses, weaken the support for a strong relation between CG and IC at the university. The results also unveil some areas to be improved in the way resources are run.Research limitations/implicationsThe response rate for the survey was limited. The findings may be more substantive and conclusive if the sample was larger. As the study was done for one organization only, more research is needed to further explore the relationship between CG and IC.Originality/valueThe paper is the first to provide empirical evidence on the influence of CG practices on attracting and retaining IC from a general as well as from an academic institution perspective.