Influence Of Corporate Governance Structure Research Articles

Influence of Corporate Governance Structure on Financial Fraud in Listed Companies

Influence of Corporate Governance Structure on Financial Fraud in Listed Companies

Analysis Of The Effect Of Corporate Governance Structure And Financial Distress

The purpose of this study is to see the influence of corporate governance structure (independent commissioner, audit committee, institutional ownership, managerial ownership) and financial distress on the integrity of financial statements of studies on manufacturing companies listed on the IDX for the 2017-2021 period. In this study, quantitative methods were used with secondary data obtained by collecting financial statement data for all manufacturing companies listed on the IDX for the 2017-2021 period, with the use of purposive sampling techniques, sample selection with predetermined criteria so that samples of 40 companies with 5 years of period were obtained with 200 samples. The study used SPSS data processing applications with analytical methods multiple linear regression. The results of the hypothesis test in this study found that independent commissioners, audit committees have no influence on the integrity of financial statements. On the contrary, institutional ownership, managerial ownership and financial distress have an influence on the integrity of financial statements. The results of the F test prove simultaneously that the variables of independent commissioner, audit committee, institutional ownership, managerial ownership, and financial distress affect the integrity of financial statements.

THE EFFECT OF CORPORATE GOVERNANCE ON R&D INVESTMENT WITH FINANCIAL SLACK AS A MEDIATING VARIABLE

The aim of this research is to examine the influence of corporate governance structures, namely independent commissioners and institutional ownership, on research and development (R&D) investment mediated by financial slack in pharmaceutical companies listed on the Indonesian Sharia Stock Index (ISSI) on the Indonesia Stock Exchange during the period (2018-2022). Data were extracted from annual reports and financial statements, with a total of 7 pharmaceutical companies listed on the ISSI serving as the sample. The analytical technique employed was the multiple regression test using panel data, conducted using Eviews. The research findings indicate that financial slack has a positive and significant effect on R&D investment. Independent commissioners have no significant effect on R&D investment. Institutional ownership has a significant effect on R&D investment. Then independent commissioners affect R&D investment through financial slack as a mediating variable, and institutional ownership has no effect on R&D investment through financial slack as a mediating variable. The conclusion is that the greater the level of financial slack, the higher the allocation of funds in R&D investment. Therefore, it is important to choose independent commissioners who are competent according to the company’s sector. On the other hand, institusional ownership is able to increase control over management because it has intensive knowledge, experience, and more networks.

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.

Do the Firms Utilize Market Timing? Capital Structure of Restaurant Firms by Pecking Order and Market Timing Theories

ABSTRACT The purpose of this study is to examine whether restaurant firms prefer debt to equity financing and utilize market timing well in equity financing during firm value maximization. For this purpose, two theories were applied – pecking order and market timing. Secondary financial data was collected from restaurant firms based in the United States. Subsequently, bivariate correlation, fixed and random effects, and pooled Ordinary Least Square (OLS) analyses were performed on the statistical data. The analysis outcomes support the pecking order theory, meaning that restaurant firms rely significantly on debt over equity in financing decisions. The analysis outcomes of the market timing proxy indicate that restaurant firms either do not use market timing enough or do not have a sufficient window of opportunity (firm value maximization) for equity financing. Although the restaurant industry has a relatively higher liability ratio than other industries, its financing decisions combining debt and equity have never been examined. The theoretical and managerial implications have been suggested in terms of balancing debt and equity financing decisions and the influence of corporate governance structure on financing decisions.

The Influence of Corporate Governance Structures on Financial Distress: A Study of Coal Mining Companies

The purpose of this research was to analyze the effect of corporate governance mechanisms on financial distress, through the measurement of board of directors, board of commissioners, independent ownership structures and managerial ownership structures. The sample consisted of coal mining companies listed on the Indonesian Stock Exchange from 2013 to 2017 and a purposive sampling method was used. Data were analyzed using descriptive analysis and multiple linear regression. The results confirmed that the size of the board of commissioners and institutional ownership had no effect on conditions of financial distress. This was possible because the board of commissioners functions as supervisor in the company, but sometimes it did not carry out its role to its full potential. Meanwhile, institutional ownership was expected to encourage more optimal supervision of management performance so that agency costs could be minimized, but this could not be proven. The size of the board of directors had a significantly positive effect on finances distress. The size of the board of directors could indicate collusion in the company and thus the possibility of experiencing financial distress was greater. Managerial ownership had a significantly negative effect on conditions of financial distress. With an increase in ownership by managers, managers could immediately feel the benefits and losses of the decisions taken.
 Keywords: board size, the company’s health condition, corporate governance, financial distress, the Altman Z-Score, the number of boards.

The influence of corporate governance structure on sustainability reporting in Malaysia

Purpose Following the introduction of the revised Malaysian Code on Corporate Governance in 2012 (MCCG 2012), this study aims to investigate the influence of corporate governance structure on the quality of sustainability reporting from the perspectives of agency theory and resource dependence theory. Design/methodology/approach Based on an analysis of 126 firms’ annual reports for the year ended 2010 and 2014, this study analyses sustainability reporting quality before the introduction of MCCG, 2012 (year ended 2010) and after (year ended 2014). Findings The findings of the study show that there was a significant increase in the quality of sustainability reporting from 2010 to 2014. Results from multiple regression analyses indicate that the number of sustainability-related training attended by the board of directors and the percentage of directors with sustainability-related experience have a significant impact on the quality of sustainability reporting. Practical implications Observations from the study provide useful insights into the importance of the appointment of directors with sustainability-related experience as part of the criteria for directors’ appointment. Moreover, the board of directors is encouraged to attend sustainability-related training to help firms improve sustainability practices and reporting. Social implications The increase in the quality of sustainability reporting indicates that companies are committed in ensuring that environmental degradation is put at the minimum level if not eliminated. It appears that companies are embracing the concept of sustainability reporting, and hence, contributing to improving and enhancing social well-being. Originality/value This study contributes to the discussion of both internal mechanisms (board independence and board capital) and external mechanisms (compliance to the code on corporate governance) of corporate governance structure on the quality of sustainability reporting. The findings can be used to identify necessary mechanisms that should be enhanced to strengthen the practice of sustainability reporting.

Influence of Corporate Governance on Financial Performance among Alcohol Beverage Firms

ABSTRACT The purpose of this study empirically investigates the influence of corporate governance structure on the firm’s financial performance of the alcohol beverage industry in the United States. Secondary financial data were collected for the U.S.-based alcohol beverage firms. Bivariate correlation and fixed-effects model analyses were performed to examine the proposed impacts. A two-stage least-squares (2SLS) regression analysis was subsequently performed to examine the endogeneity. The analysis outcomes support the finding that certain corporate governance attributes significantly affect the financial performance of alcohol beverage firms. Theoretically, the findings reaffirmed the financial impact of industry-specific corporate governance structures (i.e., stewardship versus agency theory, and integrated traits of hospitality, retail, and distribution of the alcohol industry). Managerial implications are suggested in terms of the alcohol industry’s specific corporate governance models, such as the balance among common stock ownership, executive tenure, board-size increase, and levels of control by outside board members. As a relevant sector (e.g., festival) of the hospitality and tourism industry, corporate governance of the alcohol beverage industry has never been empirically nor theoretically studied. The governance attributes in this study are compared between stewardship and agency theory and provide a better understanding of alcohol beverage industry firms’ corporate governance structure.

The Influence of Board Structure and Ownership Concentration on GRI Reporting

Purpose – The purpose of this paper is to investigate the relationship between corporate governance structure and GRI reporting. More specifically, the study seeks to analyse board independence, board size and ownership concentration and their relationships with GRI reporting. Design/methodology/approach – The hypotheses of the study were tested in a sample of 287 Brazilian companies listed on the B3, the Brazilian stock exchange, using logistic regression models. Data from 2013 were collected from the Econoinfo and GRI databases. Findings –The findings show that there is a positive relationship between both board independence and GRI reporting and board size and GRI reporting, and a neutral relationship between ownership concentration and GRI reporting. These results indicate that the corporate governance structure influences a company’s decision to engage in social issue and stakeholders’ relationship activities. Originality/value – The contribution of this study is it presents theoretical arguments and empirical evidence regarding the influence of corporate governance structure on CSD beyond the Anglo-Saxon context. The results show that good corporate governance practices cannot be generalized to different contexts.

Pengaruh Struktur Dan Proses Corporate Governance Terhadap Kinerja Perusahaan Di Indonesia

The aims of the research is analyzing the influence of corporate governance structure and process on firm performance in Indonesia . The Indicators in this research is : institutional ownership, independent commissioner, board of directors size, board of directors meeting, board of commissioners meeting and audit committee meeting. Firm performance measured by TobinsQ value. This research uses multiplier regression analysis as statistic instrument. Population in this research is consumer goods manufacture listed on Bursa Efek Indonesia 2001-2015 obtain 85 samples base on determined criteria. The results of this research show that institutional ownership, independent commissioner and board of commissioners meeting has significant positive influence on firm performance, board of directors size and board of director meeting has significant negative influence on firm performance, while the audit committee meeting has no influence on firm performance

Pengaruh Struktur Dan Proses Corporate Governance Terhadap Kinerja Perusahaan Di Indonesia

The aims of the research is analyzing the influence of corporate governance structure and process on firm performance in Indonesia . The Indicators in this research is : institutional ownership, independent commissioner, board of directors size, board of directors meeting, board of commissioners meeting and audit committee meeting. Firm performance measured by TobinsQ value. This research uses multiplier regression analysis as statistic instrument. Population in this research is consumer goods manufacture listed on Bursa Efek Indonesia 2001-2015 obtain 85 samples base on determined criteria. The results of this research show that institutional ownership, independent commissioner and board of commissioners meeting has significant positive influence on firm performance, board of directors size and board of director meeting has significant negative influence on firm performance, while the audit committee meeting has no influence on firm performance

Do corporate governance structure and capital structure matter for the performance of the firms? An empirical testing with the contemplation of outliers.

A superlative combination of the Board of Directors (BOD) with diverse members is considered a sign of a good governance structure. Meanwhile, the key decision taken by BOD to make organizations profitable is the capital structure with the optimal mix of debt and equity. Unfortunately, previous literature has reported this relationship with a mixed trend, which may be due to research gaps in the statistical analysis. Moreover, it also shows that the relationship between them has not yet been fully predicted and can still be completely understood. This study contains time-variant and time-invariant variables, and these variables usually have an outlier’s problem. As we know that the OLS estimators are more sensitive to react adversely to this problem, yet we have not received enough evidence from similar researches that cares about it. Consistent with these arguments, this study focuses primarily on exploring the influence of corporate governance structure and the capital structure on firms' market-oriented and accounting-based performance, especially with the contemplation of outliers. Hypotheses have been evaluated using M-estimators and S-estimators of robust regression for 45 listed firms for the period from 2013 to 2017. The findings reveal that the governance structure of firms with BOD, independent director, institutional investors, audit committee and female directors accelerates its performance. Further, we find that the leverage ratio improves accounting performance, but it has a downward impact on the share prices of listed firms. Our study contributes to the prevailing literature by proving that the kind of governance structure that based on diverse expert members and a capital structure with a high volume of debt is of utmost importance to the performance of firms as a whole.

PENGARUH STRUKTUR CORPORATE GOVERNANCE DAN AUDIT TENURE TERHADAP INTEGRITAS LAPORAN KEUANGAN

This study aims to obtain empirical evidence about the influence of corporate governance structure and audit tenure on the integrity of financial statements. Population ofthis research is manufacturing companies listed on Indonesia Stock Exchange starting from 2015-2017. The sample selection used purposive sampling method and retrieved 66 companies. In this research, analysis data used multiple regression method.The results show that the corporate governance structure, consisted of independent commissioners, managerial ownership and audit committees had positive and significant influence on the integrity of financial statements, but institusional ownership had no influence. Meanwhile, audite tenure had negative and significant influence on integrity of financialstatements.

公司治理结构对会计信息质量的影响研究

公司治理结构对会计信息质量的影响研究

Efeitos da Estrutura de Governança Corporativa e das Características Institucionais no Disclosure Socioambiental

Devido à crescente preocupação das organizações em evidenciar informações socioambientais, e levando-se em conta esse fenômeno sob determinados aspectos empresariais, a presente pesquisa tem como objetivo analisar a influência da estrutura de governança corporativa das companhias abertas brasileiras e de suas características institucionais na qualidade do disclosure socioambiental. Neste estudo, que é descritivo e quantitativo, são analisados os relatórios institucionais referentes a 2014, por meio da atribuição de escores para a qualidade da informação evidenciada a partir da adaptação dos construtos de Chen, Feldmann e Tang (2015) e Skouloudis, Evangelinos e Kourmousis (2010). Aplicou-se também a regressão linear múltipla. Os resultados apontaram que a proporção de membros independentes no conselho de administração, como estrutura de governança, e a participação da empresa no ISE, como característica institucional, são capazes de influenciar o nível do disclosure socioambiental. Dessa forma, há evidências de que os conflitos de agência e as pressões de legitimidade podem agir sobre o comportamento socioambiental da empresa perante os stakeholders.

PENGARUH STRUKTUR CORPORATE GOVERNANCE DAN RISIKO PERUSAHAAN TERHADAP FEE AUDIT

This study aims to analyze and provide empirical evidence of the influence of corporate governance structure and client risk towards audit fees. Corporate governance structure in this study uses the existence of independent commissioner, audit committee and majority shareholder. The bond ratings is used to measure client risk. This study uses secondary data from Indonesian Capital Market Directory (ICMD), annual reports, and bond ratings from PT. PEFINDO of companies which listed on Bursa Efek Indonesia in 2012-2013. This study uses purposive sampling method and resulted 104 firms. The method of analysis of this study used multi regression with SPSS 15.0. Program. The results indicate that corporate governance structure had no influence on audit fees, client risk have a positive influence on audit fees.

Pengaruh Struktur Corporate Governance terhadap Integritas Laporan Keuangan Perusahaan pada Perusahaan LQ45 yang Terdaftar di BEI

The influence of Corporate Governance Structure on Integrity Corporate Financial Statements of the LQ45 companies listed on the Indonesia Stock Exchange 2009-2014. (Under the guidance of Dr. H. Ardi Paminto, MS and Herry Ramadhani, SE., MM). The purpose of research is to analyze the influence of Corporate Governance Structure on Integrity Corporate Financial Statements of the LQ45 companies listed on the Indonesia Stock Exchange 2009-2014. The data used in this study is 18 companies using criteria through purposive sampling method. Analysis of the data used in this study is the classical assumption test and multiple linear regression SPSS 19.0. The results of this study indicate that the institutional ownership has a negative and significant influence on integrity corporate financial statements, Managerial Ownership is positive but no significant effect on integrity corporate financial statements, Audit Committee is positive and has a significane effect on integrity corporate financial statements, Independent Commissioner is negative and no significant effect on integrity corporate financial statements.Keywords: Institutional Ownership, Managerial Ownership, Audit Committee and Independent Commissioner.

Research on the Influence of Corporate Governance Structure on the Performance of Nepal Commercial Banks

Research on the Influence of Corporate Governance Structure on the Performance of Nepal Commercial Banks

Influence of Corporate Governance Structure on Financial Performance: A Case of Listed Commercial Banks in Kenya

Influence of Corporate Governance Structure on Financial Performance: A Case of Listed Commercial Banks in Kenya

Corporate governance and non-bank financial institutions profitability

PurposeThis study aims to investigate the influence of corporate governance structures of non-bank financial institutions (NBFI) on their profitability.Design/methodology/approachThe analysis is performed using data derived from the Bank of Ghana database during a nine-year period, 2006-2014. Correlated panels corrected standard errors model is used to estimate the regression equation. The study uses board size, board independence, gender diversity, CEO duality and tenure and board meetings as proxies for corporate governance. Audit committee size, independence and meetings are used as measures of audit committee activity. The study also uses the return on assets as measures of NBFI profitability.FindingsResults of the study show that there exists positive relationship among board size, audit committee size, meetings of the audit committee and profitability. However, board composition, gender diversity, board meetings and audit committee independence show a negative relationship with NBFI performance. From the findings of the study, it is evident that there are mixed results regarding corporate governance mechanisms and profitability of Ghanaian NBFIs. The results imply that the Ghanaian NBFI industry have unique characteristics and may react differently to corporate governance structures.Originality/valueThe value of this study is in its contribution to the extant literature on corporate governance and profitability of NBFIs.