Mediation or Moderation? The Role of R&D Investment in the Relationship between Corporate Governance and Firm Performance: Empirical Evidence from the Chinese IT Industry

2014 ◽  
Vol 22 (6) ◽  
pp. 501-517 ◽  
Author(s):  
Qing Zhang ◽  
Lilin Chen ◽  
Tianjun Feng
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Empirical Evidence ◽  
It Industry ◽  
The Relationship ◽  
D Investment

Ownership concentration, ownership composition and the performance of the Kuwaiti listed non-financial firms

2015 ◽  
Vol 25 (1) ◽  
pp. 108-132 ◽  
Author(s):  
Mejbel Al-Saidi ◽  
Bader Al-Shammari
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Arab Countries ◽  
Ownership Concentration ◽  
Content Type ◽  
Financial Firms ◽  
Large Shareholders ◽  
Ownership Composition ◽  
The Relationship

Purpose – This paper aims to investigate the relationship between ownership structure (ownership concentration and ownership composition) and firm performance in Kuwaiti non-financial firms. To this end, it examines the relationship between firm performance and ownership concentration to determine whether the impact of this relationship is conditional on the nature of the large shareholders. Design/methodology/approach – First, the relationship between ownership concentration and firm performance was tested using ordinary least squares regressions on 618 observations (103 listed firms) from 2005 to 2010; next, the ownership compositions were classified as institutional, government and individuals (families) and their impact on firm performance examined. Findings – The overall concentration ownership by large shareholders showed no impact on firm performance. However, when the type of shareholders was introduced, only the government and individuals (families) ownership categories influenced firm performance. Therefore, certain types of shareholders are better at monitoring, and not all concentration by large shareholders is beneficial to Kuwaiti firms. Research limitations/implications – This study examined only one important aspect of the corporate governance mechanisms, namely, ownership concentration. Thus, further study may include other mechanisms such as board variables, role of debt and shareholders rights in examining the firm performance. This study is limited to the Kuwaiti environment, and thus, next step can be very useful in case of comparing ownership concentration in the Gulf Cooperation Council (Kuwait, Bahrain, Qatar, Oman, United Arab Emirates and Saudi Arabia) or across different Arab countries. Practical implications – The results of this study have important implications for the regulators in Kuwait in their efforts to increase the efficiency of the rapidly developing capital markets and in protecting investors and keeping confidence in the economy. They may mandate a corporate governance code to protect minority shareholders. Investors may use the findings to understand Kuwaiti companies. Such findings may assist them to diversify their investment portfolios. Originality/value – This paper extends literature review by investigating the role of large shareholders in the context of a developing country that is characterized by high level of ownership concentration and weak legal protection for investors as well as the absence of code that organized the corporate governance practices.

Board Activity and Firm Performance

2017 ◽  
Vol 10 (1) ◽  
pp. 44-57
Author(s):  
Jyoti Paul
Keyword(s):  
Firm Performance ◽  
Empirical Evidence ◽  
Performance Measures ◽  
Firm Value ◽  
The Past ◽  
Point Estimates ◽  
Board Monitoring ◽  
The Impact ◽  
The Relationship

Because of recent failures in the past, the role of Board and the Board monitoring have become important. The directors are expected to be more accountable. In this study, the researcher tries to investigate the relationship between the level of board activity and firm value for firms in FMCG sector over a three-year period from 2010–2011 to 2012–2013. The primary aim of the article is to provide empirical evidence and specifically find out the impact of board activity measured by number of meetings and its impact on firm performance. The results indicate that the attendance in board meetings is significantly positively correlated with ROA. The OLS results with both the performance measures show that the point estimates of attendance at board meetings were significant indicating that attendance in such meetings is perceived to be an indicator of good monitoring activities of the board.

scholarly journals Role Of Board Size In Corporate Governance And Firm Performance Applying Pareto Approach, Is It Cultural Phenomena?

2014 ◽  
Vol 30 (5) ◽  
pp. 1395 ◽  
Author(s):  
Maria Malik ◽  
Difang Wan ◽  
Muhammad Ishfaq Ahmad ◽  
Muhammad Akram Naseem ◽  
Ramiz Ur Rehman
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Positive Relationship ◽  
Banking Sector ◽  
Bank Performance ◽  
Board Size ◽  
Performance Variables ◽  
Governance Practices ◽  
The Relationship

<p>This paper examines the relationship between board size and firm performance. This relationship is tested in the light of Pareto Approach for Pakistani banking sector. For this purpose a sample of fourteen listed commercial banks of Pakistan are taken for analysis from 2008-2012 on the basis of their performance. Different econometric models are applied to test the relationship between bank performance variables and corporate governance practices in these banks. The results of this study are contradictory with the existing literature of corporate governance variables and firm performance. The most prominent result of this paper is the significant positive relationship between board size and bank performance. It is concluded in the findings that a large board size can enhance the bank performance in Pakistani scenario.</p>

scholarly journals Substitute governance structure and the effect of monitoring: Evidence from Bangladesh

2010 ◽  
Vol 8 (1) ◽  
pp. 9-23
Author(s):  
Mohammad Istiaq Azim
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Board Of Directors ◽  
Empirical Evidence ◽  
Governance Structure ◽  
Policy Implications ◽  
Corporate Governance Structure ◽  
External Auditors

This paper investigates the role of monitoring mechanisms in a corporate governance structure, focusing on listed companies in a developing country, Bangladesh. Specifically, it examines whether different interrelated monitoring mechanisms - board of directors and committee, management and external auditors - affect firm performance. This research found the possibility of having a substitution or complementary links in monitoring mechanisms that explain why there is no consistent empirical evidence between individual monitoring mechanisms and firm performance. This study has policy implications for the Bangladeshi corporate environment. Progress of implementation of the guidelines appears to be reasonable. However, credibility of the reported figures and quality of implementation remain open to discussion. To what extent these status reports reflect improved governance or are largely a form of paper compliance is a debatable issue. This research also suggests that when considering any change in corporate monitoring, the Bangladeshi government should take into account the nation‟s business, social structure, culture and legal practices.

BOARD OF DIRECTORS AS A FACTOR OF FIRM PERFORMANCE IN INNOVATIVE COMPANIES

2019 ◽  
Vol 23 (06) ◽  
pp. 1950060
Author(s):  
IRINA BEREZINETS ◽  
KIRILL BEREZKIN ◽  
YULIA ILINA ◽  
IRINA NAOUMOVA
Keyword(s):  
Firm Performance ◽  
Emerging Markets ◽  
Board Of Directors ◽  
Public Companies ◽  
Composition And Structure ◽  
The Board Of Directors ◽  
The Impact ◽  
The Relationship ◽  
D Investment

The emerging markets undergo constant transformations and changes, and thus, a change of strategy can be critical for companies. However, the impact of R&D investment on firm performance and the role of the board of directors that makes decisions about a company’s innovative activities remain inconclusive. This paper investigates the relationship between a board of directors’ composition and structure in innovative companies and firm performance. Using the panel data of innovative Russian public companies that made R&D investments in 2011–2013, we found a positive relationship between the boards’ independence and ROA as an indicator of firm performance. Moreover, it was shown that innovative companies that establish a strategy committee will on average have a higher ROA ratio than innovative companies without such a committee. Innovative firms in emerging markets might consider creating strategic committees and increasing board independence to enhance their performance and increase the number of successful R&D investments.

scholarly journals Editorial: Scientific, managerial and political debate in corporate governance and sustainability

2021 ◽  
Vol 5 (4) ◽  
pp. 4-6
Author(s):  
Mara Del Baldo
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Empirical Research ◽  
Financial Disclosure ◽  
Political Debate ◽  
The Relationship

The articles published in this issue address interesting corporate governance and sustainability-related topics, by focusing on key themes that are currently at the centre of the scientific, managerial, and political debate. The contributions included in this issue outline a stimulating picture in terms of theoretical constructs and empirical research approaches adopted by the authors, and share a common file rouge since they are grounded on the relationship between non-financial disclosure and firm performance and the role of the governance in fostering transparency and sustainability-oriented strategies in a complex and adverse scenario.

scholarly journals The association between corporate governance and earnings management: The role of independent directors

2006 ◽  
Vol 3 (4) ◽  
pp. 65-75 ◽  
Author(s):  
Mark Benkel ◽  
Paul R. Mather ◽  
Alan Ramsay
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Board Of Directors ◽  
Empirical Evidence ◽  
Audit Committee ◽  
Independent Directors ◽  
Corporate Governance Codes ◽  
The Board Of Directors ◽  
The Relationship

The agency perspective of corporate governance emphasizes the monitoring role of the board of directors. This study is concerned with analyzing whether independent directors on the board and audit committee (recommendations of the ASX Corporate Governance Council, 2003) are associated with reduced levels of earnings management. The results support the hypotheses that a higher proportion of independent directors on the board and on the audit committee are associated with reduced levels of earnings management. The results are robust to alternative specifications of the model. This study adds to the very limited research into the relationship between corporate governance and earnings management in Australia. It also provides empirical evidence on the effectiveness of some of the regulators’ recommendations, which may be of value to regulators in preparing and amending corporate governance codes

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