Quality Of Governance Practices Research Articles

Measuring the Quality of Oil Sector Governance in Algeria Based on the Results of Resources Governance Index (RGI)

The importance of oil and gas, as main materials using in most industrial products, in the development process makes the governance of hydrocarbons sector very important where the strength and weakness points in this sector should be precisely identified and an index for the quality of the use of such resources should be developed.
 In this side, this study aims to measure the quality of governance practices related with oil industry in Algeria based on the three Resources Governance Principles, namely: value realization, revenue management and country’s enabling environment, contained in RGI adopted by the International Institute of Natural Resources Governance.
 The research is a descriptive and an analytical research where the results of NRGI report have been analyzed. The main research’s findings are as follows: the lack of creating value due to the weakness of procedures which concerned as the basis for governance practices, the poor revenue management index due to the lack of governance framework that ensures the benefit of citizens from the wealth of extractive resources, the poor quality of the enabling environment due to the low level of accountability and transparency. Based on those results, the recommendations are: the necessity of providing information about extractive activities and implementing laws related to this sector, the need to join the Extractive Industries Transparency Initiative by Algerian Government

Corporate governance: An analysis of the relationship between quality and cost

The purpose of this study is to analyse linkages between the quality and cost of Canadian firms’ governance practices. With this in mind, the study relates the compensation of chief executive officers (CEOs) and non-executive directors to best governance practice index developed by The Globe and Mail. We collected data for the years 2013, 2014 and 2015, constituting 602 observations from all the Canadian companies included in The Globe and Mail corporate governance ratings for which financial information was available on the Research Insight database. We examined the relationship between the quality and cost of Canadian firms’ governance practices with a regression model. The analyses results tend to indicate some relationship between CEO and non-executive director compensation and the quality of governance practices. However, firm size appears to the determining explanatory factor. The study results also indicate that some activity sectors seem to have better governance practices than others

Direct and indirect impacts of governance on the value of Brazilian corporations

This study estimated the quality of governance practices employed by a sample of publicly traded companies in Brazil between 2002 and 2006. It also explored the way quality of governance is related to three variables: risk, performance, and value. The Hausman test showed endogeneity between governance and value. Afterwards, the structural equations method was applied to construct various models involving the relationships among Statistically significant results were observed among high levels of governance, low risk, strong performance and high value. This suggests that governance affects the value of companies directly as well as affecting the value of companies indirectly through the mediating variables of risk and of performance.

Good corporate practices in poor corporate governance systems

PurposeAttempts to benchmark corporate governance practices have focused primarily on developed capital markets, whereas cross‐country comparisons remain difficult for emerging markets. Given the growing importance of emerging markets as an asset class, this paper attempts to shed some light on the quality of governance practices in a large sample of countries and the extent to which that quality may offset perceived weaknesses in the institutional framework in which companies operate.Design/methodology/approachIn the absence of comparable data for many emerging markets, the paper employs new survey evidence from the World Economic Forum's Global Competitiveness Report.FindingsThe analysis suggests the following: first, legal institutions play a key role for corporate governance, but other factors, such as politics and cultural and historical roots, matter too. While corporate governance practices in emerging markets tend to be weaker than in developed capital markets, several emerging markets have already made substantial progress in upgrading their practices and, as their institutions continue to emerge, the existing quality gap looks set to narrow further. There are several countries whose companies on average appear to follow better practices than the quality of their legal and regulatory environments would suggest.Research limitations/implicationsGood corporate governance at the company level need not be tied or constrained by its local environment. That good company practices may at least partly offset weak framework conditions and could have important implications for the mode of entry foreign investors choose, an issue to be left for further research.Originality/valueOverall, the paper's main contribution lies in its novel approach to disaggregate different levels of corporate governance, thus allowing a more textured assessment of corporate governance risk.