Corporate Governance, Financing Pattern and Cost of Capital: Evidence from New Zealand Companies

2009 ◽  
Author(s):  
Hardjo Koerniadi ◽  
Alireza Tourani Rad
Keyword(s):  
Corporate Governance ◽  
New Zealand ◽  
Cost Of Capital ◽  
Financing Pattern

scholarly journals Impact of Corporate Governance on Financial Practices of New Zealand Companies

2013 ◽  
Vol 2 (2) ◽  
pp. 14
Author(s):  
Hardjo Koerniadi
Keyword(s):  
Corporate Governance ◽  
New Zealand ◽  
Dividend Policy ◽  
Cost Of Capital ◽  
Firm Level ◽  
Governance Index ◽  
Fama And French ◽  
Financial Practices

This study examines the effects of firm level corporate governance on financing policiesof New Zealand firms. Using a unique self-constructed corporate governance index andemploying the methodology of Fama and French (1999) of financing of firms, we can reportthat firms with weak corporate governance generally issue more debt and have significantlyhigher cost of capital than do firms with strong governance. It is further observed thatcorporate governance does not have significant impact on dividend policy in New Zealand.

Impact of XBRL on Voluntary Adopters' Financial Reporting Quality and Cost of Equity Capital

2018 ◽  
Vol 15 (2) ◽  
pp. 45-65
Author(s):  
Tienshih Hsieh ◽  
Jean C. Bedard
Keyword(s):  
Corporate Governance ◽  
Financial Reporting ◽  
Cost Of Capital ◽  
Interactive Effect ◽  
Reporting Quality ◽  
Equity Capital ◽  
Financial Reporting Quality ◽  
Cost Of Equity Capital ◽  
Public Companies ◽  
Expected Benefits

ABSTRACT We investigate whether corporate governance quality explains differences in financial reporting quality and cost of capital following the XBRL Voluntary Filing Program (VFP) launched by the SEC. Research on the effects of voluntary XBRL adoption remains valuable, as a bill recently introduced in Congress could revert the majority of U.S. public companies to voluntary compliance. Further, such research informs investors, researchers, and regulators in other countries that do not yet require XBRL. We hypothesize that the likelihood of achieving XBRL's expected benefits is greater in companies with stronger corporate governance. For instance, such companies might implement XBRL in ways that substantially improve information gathering and reporting; or make better use of XBRL to enhance its benefits, regardless of implementation strategy. Results confirm the expected interactive effect of voluntary XBRL adoption and corporate governance strength on both financial reporting quality and cost of capital. These findings suggest that not all voluntary adopters benefited from XBRL; rather, only those with superior corporate governance show measurable benefits during our study period.

scholarly journals Corporate Governance and Cost of Capital: Evidence from Emerging Market

Risks ◽  
2020 ◽  
Vol 8 (4) ◽  
pp. 104
Author(s):  
Muhammad Yar Khan ◽  
Anam Javeed ◽  
Ly Kim Cuong ◽  
Ha Pham
Keyword(s):  
Corporate Governance ◽  
Lower Cost ◽  
Cost Of Capital ◽  
Emerging Market ◽  
Firm Level ◽  
Listed Firms ◽  
Corporate Failure ◽  
Governance Index ◽  
Governance Practices ◽  
Code Of Corporate Governance

This study used a researcher self-constructed corporate governance index as a proxy to measure the firm-level corporate governance compliance and disclosure with the 2002 Pakistani Code of Corporate Governance, to examine the relationship between corporate governance and cost of capital. We found a negative and significant association between the Pakistani Corporate Governance Index (PCGI) and block ownership with the firm-level cost of capital. On average, better-governed Pakistani listed firms tend to be associated with a lower cost of capital than their poorly governed counterparts are. As an emerging market, good corporate governance practices are mainly related to minimise corporate failure and assist firms in attracting capital at a lower cost.

Corporate governance and risk-taking in New Zealand

2013 ◽  
Vol 39 (2) ◽  
pp. 227-245 ◽  
Author(s):  
Hardjo Koerniadi ◽  
Chandrasekhar Krishnamurti ◽  
Alireza Tourani-Rad
Keyword(s):  
Corporate Governance ◽  
New Zealand ◽  
Risk Taking

Corporate governance and cost of equity: empirical evidence from Latin American companies

2016 ◽  
Vol 16 (5) ◽  
pp. 831-848 ◽  
Author(s):  
Emanuele Teti ◽  
Alberto Dell’Acqua ◽  
Leonardo Etro ◽  
Francesca Resmini
Keyword(s):  
Corporate Governance ◽  
Latin American ◽  
Cost Of Capital ◽  
Negative Relationship ◽  
Developed Countries ◽  
Equity Capital ◽  
Cost Of Equity ◽  
Content Type ◽  
The Cost ◽  
The Relationship

Purpose This paper aims to investigate the extent to which corporate governance (CG) systems adopted by Latin American listed firms affect their cost of equity capital. Several studies on the link between the two aforementioned dimensions have been carried out, but none in the context of Latin American firms. Design/methodology/approach A CG index is created by taking into account the peculiarities of each country and the recommendations given by the corresponding CG institutes. In particular, to assess the level of CG quality, three sub-indexes have been identified: “Disclosure”, “Board of Directors” and “Shareholder Rights, Ownership and Control Structure”. Findings The results indicate a negative relationship between CG quality and the cost of equity. In particular, the “Disclosure” component is the one mostly affecting the cost of equity. Research limitations/implications This study contributes to the literature by adding knowledge on the relationship between CG and cost of capital considering, for the first time, the overall Latin American market. Practical implications The paper proves that institutional investors all over the world are disposed to pay a premium to invest in firms with effective CG standards; moreover, this premium is higher in emerging countries such as those analyzed in this paper, rather than in developed countries. Originality/value To the authors' knowledge, this is the first paper empirically investigating the relationship between CG and cost of capital in Latin America.

scholarly journals Determinants of nomination committee: New Zealand evidence

2011 ◽  
Vol 7 (2) ◽  
pp. 54-63 ◽  
Author(s):  
Md. Borhan Uddin Bhuiyan ◽  
Ahsan Habib
Keyword(s):  
Corporate Governance ◽  
New Zealand ◽  
Selection Process ◽  
Audit Committees ◽  
Cross Sectional ◽  
Controlling Shareholders ◽  
The One ◽  
Director Independence ◽  
Compensation Committees

A sizable volume of corporate governance literature documents that an independent and competent board of directors matter for organizational success. In order to function effectively, board comprises of different sub-committees and the three most common sub-committees are audit committees, compensation committees and nomination committees. Surprisingly, there is a paucity of research in understanding the determinants of nomination committee notwithstanding the importance of an independent nomination committee in board selection process. We contribute to the nomination committee literature by investigating the factors associated with the determination of nomination committees in New Zealand. We find that cross-sectional variation in the firm-specific characteristics affect the existence of nomination committees. This finding casts doubt on the „one-size-fits all‟ approach of corporate governance. Our logistic regression of the nomination committee determinants indicates that firm size, governance regulation and busy directors are positively associated with the existence of nomination committees, whereas firm leverage, controlling shareholders, and director independence are negatively related to the formation of nomination committees.

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