Impact of Corporate Governance Practices on Financial Performance of Microfinance Institutions in India

2014 ◽  
Author(s):  
Siddharth Singh Durgavanshi
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Microfinance Institutions ◽  
Governance Practices

scholarly journals Board governance regulation, practices and their relationships with financial performance: Cambodian bank and microfinance institution context

2010 ◽  
Vol 7 (4) ◽  
pp. 25-33
Author(s):  
Seng Cheaseth ◽  
Seng Samreth ◽  
Im Sethyra
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Positive Impact ◽  
Board Governance ◽  
Microfinance Institutions ◽  
Governance Practices ◽  
Minimum Requirements ◽  
Microfinance Institution ◽  
National Bank ◽  
Current Board

To improve corporate governance practices of bank and microfinance institutions, the Cambodia National Bank has developed and imposed governance practices regulation for the sector. The current study investigates the current board governance practices of the sector and determines how the practices impact on financial performance. In addition, it tests the validity of relevant corporate governance theories to the context and the benefits of the regulation. The findings indicate that current board governance practices of the sector meet the minimum requirements of the regulation and, to a great extent, have positive impact on financial performance. The relevant theories validated and supported in the context of Cambodia banks and microfinance institutions.

Board structure-performance relationship in microfinance institutions (MFIs) in an emerging economy

2016 ◽  
Vol 16 (5) ◽  
pp. 815-830 ◽  
Author(s):  
Sujani Thrikawala ◽  
Stuart Locke ◽  
Krishna Reddy
Keyword(s):  
Corporate Governance ◽  
Sri Lanka ◽  
Financial Performance ◽  
Emerging Economy ◽  
Board Structure ◽  
Microfinance Institutions ◽  
Policy Makers ◽  
Content Type ◽  
Regulatory Status ◽  
Governance Practices

Purpose The purpose of this paper is to investigate the relationship between board structure, financial performance and outreach of microfinance institutions (MFIs) in Sri Lanka, using unbalanced panel data for 300 MFI-year observations for the period 2007 to 2012. Design/methodology/approach Empirical research relating to governance practices in MFIs is still in its infancy, and further studies are needed to determine how improved governance practices may enhance sustainability and outreach of MFIs, especially in emerging economies. The authors use regression techniques to examine whether board structure has an influence on MFI performance. Findings After controlling for internal corporate governance variables, regulatory status, size, age, leverage and year effects, the authors report that board structure does contribute to the financial performance and outreach of MFIs in Sri Lanka. Research limitations/implications The availability of data in the public domain captures the major MFIs but does constrain the generalisability of findings. Practical implications This study enables individual MFIs to evaluate potential restructuring of their boards to promote a dual mission and achieve a more accelerated economic development. Social implications The findings may encourage policy makers to promulgate policy guidelines to deepen MFI outreach to the poorest people. Originality/value Inconsistent findings in prior studies and a general lack of empirical results for the microfinance industry have led to an unclear message regarding corporate governance and MFI performance. This study fills the research gap, contributing to the existing corporate governance literature in the microfinance sector and providing evidence from an emerging economy.

scholarly journals COMPARATIVE ANALYSIS OF ACCOUNTING AND FINANCIAL PERFORMANCE OF COMPANIES WITH GOOD CORPORATE GOVERNANCE PRACTICES IN BRAZIL

2012 ◽  
Vol 4 (1) ◽  
Author(s):  
Marcelo Alvaro Da Silva Macedo ◽  
Luiz João Corrar
Keyword(s):  
Corporate Governance ◽  
Comparative Analysis ◽  
Financial Performance ◽  
Good Corporate Governance ◽  
Governance Practices

Este artigo tem como objetivo analisar comparativamente o desempenho contábil-financeiro de empresas com boas práticas de governança corporativa e outras sem esta característica, através da aplicação da Análise Envoltória de Dados (DEA) às informações do setor de distribuição de energia elétrica no Brasil no período de 2005-2007. Para tanto, utiliza-se de informações sobre lucratividade, margem de lucro, giro do ativo, liquidez, endividamento e imobilização obtidas na base Melhores e Maiores da Exame-FIPECAFI. Em linhas gerais, a comparação entre o desempenho médio destes dois grupos, utilizando o teste não paramétrico de Mann-Whitney, ao nível de significância de 5 %, mostra que para o ano de 2005 e para o desempenho médio no período de análise pode-se concluir que as empresas com boas práticas de governança corporativa têm desempenho contábil-financeiro estatisticamente superior. Porém, em relação a 2006 e 2007 o desempenho dos dois grupos é estatisticamente igual ao nível de 5 %. Isso suporta apenas parcialmente as indicações de superioridade de desempenho apresentadas na literatura de governança corporativa.

scholarly journals Performance, corporate governance and new regulation

2017 ◽  
Vol 9 (18) ◽  
Author(s):  
Heriberto García
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Financial Market ◽  
Information Disclosure ◽  
Potential Growth ◽  
Listed Firms ◽  
Risk Return ◽  
Corporate Governance Code ◽  
Governance Practices ◽  
The Relationship

Abstract. After the adoption of the Corporate Governance Code (Code) in Mexico, many companies increased financial performance and the leveraged during the following five years; we investigated the effect of how those firms improved the corporate governance practices and how was translated into better risk return company. We analyzed how and where better corporate governance practices affects performance and what was the relationship with Transparency, New Regulation and Governance Practices. Also we explored the gaps between transparency and information disclosure of Mexican Firms listed in U.S stockexchange and non U.S listed firms our findings were related to the potential growth of the Mexico Financial Market, Law and Finance.Keywords: corporate governance, financial performance, regulationResumen. Después de la adopción del Código de Gobierno Corporativo en México, algunas compañías incrementaron el desempeño financiero y el uso de deuda durante los siguientes cinco anos, nuestra investigación se enfoca en como dichas compañías mejoraron sus prácticas de gobierno corporativo y como estas prácticas se han traducido en un mejor relación de riesgo y rendimiento. En esta investigación exploramos cómo y en dónde mejores prácticas de gobierno corporativo afectan el desempeño y qué relación tiene con laTransparencia, Nuevas Regulaciones y prácticas de Gobierno Corporativo. Con lo anterior también identificamos aquellas compañías que cotizan fuera de México para identificar potenciales diferencias en dichas prácticas.Palabras clave: desempeño financiero, gobierno corporativo, regulación

scholarly journals The Relationship Between Corporate Governance Practices and Financial Performance: Evidence from Amman Stock Exchange

2021 ◽  
pp. 63-87
Author(s):  
Hussein Ahmad Bataineh ◽  
Sulaiman Salim Al Harthy ◽  
Raqiya Ali Al Balushi
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Stock Exchange ◽  
Predictor Variable ◽  
P Value ◽  
Amman Stock Exchange ◽  
Governance Practices ◽  
Unit Increase ◽  
Beta Coefficient ◽  
The Relationship

The objective of the study was to establish the relationship between corporate governance Index and financial performance and evidence from Amman stock exchange. To achieve this objective, this study applied descriptive research structure. In this case, the research focused on the 181 firms listed at the Amman Stock Exchange (Appendix I). The statistical techniques that was applied to analyze collected data included descriptive statistics. The information analyzed revealed that the model summary indicated that the R² to be 0.243. This meant that 24.3% of the variation in performance (ROA) was due to the predictor variable captured in the study. This also implied that 75.7% of the variation in ROA was attributed to the measurements of error and other factors that could have had an effect on the ROA but were not captured in the study. The estimated model showed that ROA when other factors are held constant was 1.610. The outcomes also revealed that governance score had a beta coefficient of 0.573 indicating that for every unit increase in governance score on the ROA went up by 0.573. This relationship is significance since P-value of 0.025<0.05. Therefore, the model qualified as a good predictor. Keywords: Corporate Governance, Financial Performance, Amman stock Exchange.

scholarly journals The financial impacts of board mechanisms on performance: The case of listed Moroccan banks

2021 ◽  
Vol 3 (2) ◽  
pp. 93-113
Author(s):  
Issam El Idrissi ◽  
◽  
Youssef Alami ◽  
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Fixed Effects ◽  
Audit Committee ◽  
Negative Impact ◽  
Governance Mechanisms ◽  
Return On Equity ◽  
Corporate Governance Mechanisms ◽  
Governance Practices ◽  
The Impact

Abstract Purpose: The present study examines the impact of corporate governance mechanisms on listed Moroccan banks' financial performance. Research methodology: This study investigates the relationship between listed banks' governance mechanisms and financial performance in the CSE for six years between 2014-2019. This study employs three performance measures, return on assets, return on equity, and Tobin's Q, to determine bank performance. This research uses the GMM EGLS approach to analyze data. In the first phase of this empirical research, we did use OLS, Fixed Effects, and Radom Effects regressions to show their inefficiency. Results: Our results portray that most board mechanisms have a negative impact on financial performance. In comparison, the audit committee and nomination & remuneration committee have a positive effect on financial performance. Limitations: Many qualitative and quantitative factors could influence financial performance and not only the used variables in this paper. Contribution: This research shows that the dynamic connection between corporate governance and financial performance is robust in the Moroccan banking context. Also, our study has important implications for establishing good corporate governance practices in emerging economies.

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