Good Corporate Governance Value Research Articles

Corporate Governance Practices in Large and Medium-Sized Auditing Firms in South Africa

South African corporate failures and audit failures, including those of VBS Bank, Tongaat, Steinhoff and KPMG, have exposed vulnerabilities in audit quality and the role of governance failures in auditing firms. In auditing firms, good corporate governance principles are not always followed. Additionally, South Africa does not have a corporate governance code that governs auditing firms, nor is there a sector supplement to the King IV Report on Corporate Governance that applies to other industries. To identify areas for improvement in South Africa, this study aimed to ascertain the current corporate governance practices in South African auditing firms and compare them to the United Kingdom (UK) Audit Firm Governance Code. A structured questionnaire based on the UK Audit Firm Governance Code was used to collect qualitative data. Nine large and medium-sized South African auditing firms with 20 or more auditing partners made up the population. The literature study emphasised the value of good corporate governance in auditing firms, as well as the difficulties these firms encounter with corporate governance. The review also emphasised the absence of codes and standards regulating corporate governance in auditing firms. The empirical results highlighted the resultant inconsistencies in corporate governance application in South African auditing firms. Areas requiring improvement were identified in the study.

Critical Analysis of the Linkage Between Good Corporate Governance and Institutional Performance in TVET Colleges in South Africa

The value of good corporate governance in TVET colleges can never be downplayed. There is a correlation between good corporate governance and institutional performance. The rationale behind the formulation of corporate governance ethical codes was to ensure that academic institutions and other organisations could be systematically managed. TVET colleges have been, over the years, striving to offer vocational and occupational education and training to prepare students to become functional workers in a skilled trade. This elucidates how corporate governance supports positive institutional performance. Nonetheless, KMPG, Deloitte, Institute of Directors, and other observers of the South African corporate environment noted that the development of King I, II, and III reports on corporate governance initially focused on corporate bodies only. Institutions such as TVET colleges and other organisations were later covered. This was done to address inequity and consider the significant role of such educational institutions for the development of the nation’s economy. The subsequent King’s reports were designed in a manner that permitted them to apply for any organisation regardless of manner or form of incorporation. Keywords : Corporate governance, Institutional performance DOI: 10.7176/EJBM/13-3-07 Publication date: January 31 st 2021

PENGARUH GOOD CORPORATE GOVERNANCE (GCG) TERHADAP NILAI PERUSAHAAN PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BURSA EFEK INDONESIA TAHUN 2015-2017

All information in a company's financial statements is useful for investors and users of financial statements because the information contained in financial statements can be used by interested parties or users of financial statements for consideration in making economic decisions, but sometimes the attention of financial statement users or investors is only focused on earnings information. The purpose of this research is to find out. Effect of Good Corporate Governance managerial ownership of institutional ownership and the Audit Committee on Company Value in manufacturing companies listed on the Indonesia Stock Exchange 2015-2017.
 The population in this study are manufacturing companies listed on the Indonesia Stock Exchange (IDX) in 2015-2017. The companies that became the population in this study were 24 manufacturing companies. The variables in this study were managerial ownership, institutional ownership and an audit committee on Company Value. Methods of data analysis using multiple linear regression, coefficient of determination and hypothesis testing. The results of this study indicate that the managerial ownership regression coefficient is 0.304, t count (3.847)> t table (1.66) and sign (0.000), <(0.05), institutional ownership is 0.337, t count (3.375)> t table (1.66) and sign (0.001) <(0.05) and audit committee 0.341, t count (4.110)>ttable (1.66) and sign (0.000) <(0.05) based on the coefficient test results R2 determination of 62.8%. This means managerial ownership of institutional ownership and audition committee. Together - they have a positive and significant effect on Company Value. This can be proven in the F test of 38,231 in manufacturing companies listed on the Indonesia Stock Exchange 2015-2017. Company value calculation using PBV (price book value) proxy. However, the calculation of company value can be done using other methods such as Tobin's Q because the calculation of company value does not only use PBV. Given the results of this study indicate that a positive effect on a corporate value of good corporate governance

The Impact of Mutual Fund Performance Management on Good Corporate Governance Banking

Management of mutual funds Portfolios by investment managers and bank as dealers of mutual funds portfolios, good corporate governance banking be able to support cooperation with mutual funds companies who manages mutual funds portfolio. This explanatory methodology research is used in several phases technique analysis that is forming equation function of mutual funds performance portfolio with indicated net assets value of every mutual funds portfolio and equation function of good corporate governance with indicated the composite Good Corporate Governance aspects. This research found that balanced mutual portfolios and fixed income mutual portfolios able to explain Good Corporate Governance model by the positive influence means that performance management can optimize of return efforts if the banking composite Good Corporate Governance value predicated very good. The excellent Good corporate governance banking capable of being described by equity mutual funds portfolios and money market mutual funds portfolios by negative influence means performance management of equity mutual funds portfolios and money market mutual funds portfolios not efforts to getting optimize return achievement.

To Know the Guidance of Good Corporate Governance in Indonesia (Indonesian)

Good Corporate Governance (GCG) represents one of the management model placing forward progress and company continuity inwroughtly and totally. Three important pillar in this concept GCG among others, that is (i) state and its peripheral as regulator, (ii) corporate world as market perpetrator, and (iii) society as consumer of product and corporate world service. Its meaning that in inwrought company management and have continuation, it cannot be conducted by the company itself, because there are two other role, which is played the part of parties of eksternal company which must be adhered and served, so that satisfaction of the parties can give the guarantee to taking place company in period to come.TARIF, representing very ground and krusial value of GCG that have to become the base arrange the good corporate governance. The ground among others that is (i) transparency, (ii) accountability, (iii) responsibility, (iv) independency and also (v) equity and equivalence (fairness) needed to reach the continuity of effort (sustainability) of company by paying attention stakeholders. And, to run arrange the good company management, hence company better compile the guidance of execution GCG with the the following payload: (i) vision, mission and company values; (ii) domicile and function RUPS, Board of Commissioner, Board of directors, committee of Board of Commissioner supporter, and internal observation; (iii) policy to ascertain executing of function of each;every company organ effectively; (iv) policy to ascertain executing of akuntabilitas, effective internal operation and real correct financial reporting; (v) of behavior guidance which is relied by values of company and business ethics; (vi) of medium of information expression for the stockholder of other and pemangku importance; and (vii) of completion policy of various company regulation in order to fulfilling principle GCG.Hereinafter, to be effective ambulatory execution GCG, hence needed process that taking part in all parties in company through the following step: (i) develop; build the understanding, caring and komitmen to execute the GCG by all member of Board of directors and Board of Commissioner, and also Controller Stockholder, and all employees; (ii) study to condition of company that related to execution of needed correctional GCG action and; (iii) compile the program and guidance of execution of GCG company; ( iv) conducting internalization of execution GCG, so that formed sense of belonging from all parties in company, and also understanding to the execution of guidance GCG in everyday activity; and (v) conducting the assessment by company itself or by using other party of service independent eksternal to ascertain the applying GCG chronically. Result of the assessment laid open in annual report and reported in annual RUPS.

PENGARUH KINERJA KEUANGAN TERHADAP NILAI PERUSAHAAN DENGAN PENGUNGKAPAN CSR DAN GCG SEBAGAI VARIABEL PEMODERASI

This Thesis investigated the influence of financial performance toward corporate value by exposing Corporate Sosial Responsibility (CSR) and Good Corporate Governance (GCG) as Moderating Variables. Corporate Financial performance as independent variable is represented by the Financial Value Added (FVA) and Corporate Value as Dependent Variable is represented by Tobin `s Q value. CSR value is indexed based on the 78 items of exposure themes and GCG value is indexed using the 18 items of exposure themes which the researcher called Corporate Governance Perception Index. After selecting 149 companies listed in Indonesia Stock Exchange, the researcher found 39 manufacture companies. qualified as the research objects based on the defined criteria, with observation timeframe from the year of2005 to 2008. The result of the research concludes that: Financial Performance (FVA) significantly influences the corporate value (Tobins 'Q); Corporate Sosial Responsibility also influences the relationship of corporate financial performance and the corporate value; and Good Corporate Governance influences the relationship of corporate financial performance and the corporate value as well.Keywords: Financial value Added, Tobin 's Q, CSR, GCG

Corporate Governance Legal Reforms and Stock Return in Malaysia

This paper examines the relationship between the changes in corporate governance legal system and stock return in Bursa Malaysia (formally known as Kuala Lumpur Stock Exchange, KLSE) in Malaysia for the period from 1996 to 2003. The cross-sectional evidence indicates that the corporate governance is positively associated with stock return before the Asian financial melt down, but there is no evidence of such connection during the 1997 crisis. After the crisis, an implementation of Financial Reporting Act in 1997 and the Code on Corporate Governance in 2000 combined with a revise of Kuala Lumpur Stock Exchange (KLSE) regulations in 2001 have restored the investors’ confidence and enhanced the investor’s awareness and realization of the value of good corporate governance. This study supports a proposition that the changes in legal system have improved the corporate governance in Malaysia.

Cross-Monitoring and Corporate Governance

We take the view that corporate governance must involve more than corporate law. Despite corporate scholars' nearly exclusive focus on corporate law mechanisms for controlling managerial agency costs, shareholders are not the only constituency concerned with such costs. Given the thick web of firms' contractual commitments, it should not be a surprise that other financial claimants may also attempt to control agency costs in their contracts with the firm. We hypothesize that this cross-monitoring by other claimants has value for shareholders. We examine bank loans for empirical evidence of the value of cross-monitoring. Our approach builds on prior empirical work on the value of good corporate governance, to which we add data on the presence of bank loans and their interactions with free cash flow, governance indices, and individual corporate governance provisions. To our knowledge, ours is the first study to measure the performance effects of bank debt as a device for reducing managerial agency costs, and the first study on the interaction of ongoing bank monitoring with corporate governance arrangements. We find strong evidence that bank monitoring adds value. In effect, bank monitoring can counteract somewhat the value-decreasing effects of managerial entrenchment. Bank monitoring may substitute for good corporate governance.