scholarly journals Internal and external governance mechanisms: Evidence from the Nigerian banking industry

2005 ◽  
Vol 2 (3) ◽  
pp. 62-67 ◽  
Author(s):  
Olatundun J. Adelegan
Keyword(s):  
Great Proportion ◽  
Banking Industry ◽  
Audit Committees ◽  
Annual Reports ◽  
Executive Directors ◽  
Governance Mechanism ◽  
External Governance ◽  
The Relationship ◽  
Nigerian Banking

This paper examines the relationship between internal and external governance mechanism employed by Nigerian banking companies. Data for the study was obtained from the annual reports of bank in Nigeria. I find a higher portion of non-executive directors and a greater likelihood of separating the role of company chairman and CEO in banks compared to similar studies of Nigerian quoted companies. The proportion of non-executive directors who are former executives is low. These suggest those banks are more likely to employ non-executives for monitoring. Banks in Nigeria have utilized audit committees since 1991 and the audit committees in Nigerian banks possess a great proportion of non-executive directors.

scholarly journals Dynamics of audit lag − board of directors and audit committees’ effect

2015 ◽  
Vol 12 (3) ◽  
pp. 281-294 ◽  
Author(s):  
Rabih Nehme ◽  
Guy Assaker ◽  
Rita Khalife
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Financial Institutions ◽  
Audit Committee ◽  
Audit Committees ◽  
Governance Mechanism ◽  
Audit Report ◽  
Corporate Governance Mechanisms ◽  
External Governance ◽  
The Relationship

Audit procedures are considered to be an external governance mechanism tool used by shareholders from an agency theory perspective. The empirical model is constructed to assess the theoretical and statistical relationship between audit lag and corporate governance characteristics over a period of four years (for FTSE 350 companies excluding financial institutions between 2007 and 2010). This paper studies the effect of corporate governance mechanisms, board of directors and audit committee, on audit report lag. The importance of this research comes from the few studies conducted regarding the relationship between corporate governance and audit report lag. It is crucial to understand the determinants of audit lag in order to minimize it as much as possible and accordingly generate timely information.

scholarly journals Impact of corporate governance index on firm performance: evidence from Pakistani manufacturing sector

2015 ◽  
Vol 4 (3) ◽  
pp. 163-174 ◽  
Author(s):  
Faisal Javaid
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Capital Investment ◽  
Random Effect ◽  
Annual Reports ◽  
Governance Mechanism ◽  
Inconsistent Result ◽  
Governance Index ◽  
Corporate Governance Mechanism ◽  
The Relationship

Corporate governance is considered to have significant impact on the growth and development perspective of an economy. Sound corporate governance practices leads the economy towards the achievement of higher performance, provide sources for capital investment by increasing the creditability of shareholders. The purpose of this study is to empirically investigate the relationship of corporate governance and firm performance in terms of accounting as well as market performance i.e.to be measured by Return on asset, Return on equity and Tobin’s Q. The theoretical base to conduct the study is the demand of separation of ownership and control characterize as agency theory. The previous studies have yielded inconsistent result. To achieve the purpose 58 textile sector companies were selected listed in the Karachi stock exchange and data was taken from annual reports of the companies for the period of 2009 to 2013. Descriptive statistics, correlation analysis and regression estimation using pooled, fixed effect, random effect and Hausman specification test were carried out after developing a composite index based on 21 proxies. The result entails that corporate governance index (CGI) and firm performance has positive and significant association but the relationship for each specific index is dependent upon the measure of firm performance. The result also shows that companies having strong corporate governance mechanism has greater chances to acquire finance. The implication of study demands that the reform effort should be directed towards the improvement in internal corporate governance mechanism and regulatory framework for the governance system.

scholarly journals The Moderating Role of Intellectual Capital between Relationship of Bank Specific Factors and Credit Risk of Islamic Banks

2019 ◽  
Vol 2 (4) ◽  
pp. 79-87
Author(s):  
Muhammad Nawaz ◽  
Alias Mat Nor ◽  
Habibah Tolos
Keyword(s):  
Credit Risk ◽  
Intellectual Capital ◽  
Management Policy ◽  
Annual Reports ◽  
Future Research ◽  
Islamic Banks ◽  
Relationship Of ◽  
The Relationship ◽  
Moderating Role

Purpose-The Objective of this study is to investigate the moderating role of Intellectual Capital between the relationship of Bank internal factor and Credit Risk in Islamic banks of Pakistan. Design/Methodology-Panel data are obtained from annual reports of 4 Islamic banks of Pakistan from the period 2006 to 2017. These are analyzed using hierarchical regression techniques, via Eviews 9 software. Findings-The results showed that intellectual capital significantly moderates the relationship of bank internal variable and credit risk in Islamic banks in Pakistan. Practical Implications-The study found that Intellectual Capital is a very important driver for credit risk. The investment in Intellectual Capital may lower the credit risk which will further help in the growth and sustainability of the bank and hence the growth in the economy. The results of the study will be useful for bank management, policy maker, and regulator and academia for future research.

An investigation of the credibility of and confidence in audit value: evidence from a developing country

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Taslima Akther ◽  
Fengju Xu
Keyword(s):  
Structural Equation ◽  
Global Financial Crisis ◽  
Auditor Independence ◽  
Order Type ◽  
Audit Committees ◽  
Content Type ◽  
Anglo American ◽  
The Global Financial Crisis ◽  
The Relationship

Purpose This study aims to investigate the factors that enhance the credibility of and confidence in audit value. Design/methodology/approach Data were collected from 254 institutional investors through a questionnaire survey and were analyzed using partial least squares structural equation modelling (PLS-SEM). Findings The findings reveal that the two influential predictors of enhanced credibility and confidence are perceived auditor independence and improved auditor communication. Factors related to auditor–client affiliation, such as restrictions on providing non-audit services, mandatory auditor rotation and the presence of effective audit committees, are identified as creating the perceived independence. Improved auditor communication is linked with improving the audit report and ensuring audit education, thus creating more sophisticated users who better understand the scope and purpose of an audit. Furthermore, independent audit oversight acts as a moderator in the relationship between perceived auditor independence, improved auditor communication and enhanced credibility. Enhanced credibility can lead to greater confidence in audit value. Originality/value In the wake of the global financial crisis and loss of confidence in the role of auditors, this study investigates the factors that can enhance the credibility of and confidence in audit value, especially in a non-Anglo-American setting. This study is unique in terms of methodological development, as it uses a higher-order Type II reflective–formative model using PLS-SEM.

6. Company Management and Governance

2020 ◽  
pp. 100-120
Author(s):  
Imogen Moore
Keyword(s):  
Corporate Governance ◽  
Institutional Investors ◽  
Executive Directors ◽  
Corporate Governance Code ◽  
Executive Remuneration ◽  
Questions And Answers ◽  
The Uk ◽  
And Control ◽  
The Relationship

The Concentrate Questions and Answers series offers the best preparation for tackling exam questions and coursework. Each book includes typical questions, suggested answers with commentary, illustrative diagrams, guidance on how to develop your answer, suggestions for further reading, and advice on exams and coursework. This chapter explores important issues in company management and corporate governance, starting by examining the role of directors and shareholders (and the relationship between them) and the separation of ‘ownership and control’. Since the early 1990s, the governance of listed companies has been dominated by self-regulatory codes (currently the UK Corporate Governance Code). This chapter examines how these codes operate and considers key themes in corporate governance, including the role of non-executive directors and auditors; the position of institutional investors; and executive remuneration.

Ethical values and bank performance: evidence from financial institutions in Malaysia

2020 ◽  
Vol 11 (1) ◽  
pp. 233-256
Author(s):  
Tuan Azma Fatiema Tuan Ibrahim ◽  
Hafiza Aishah Hashim ◽  
Akmalia Mohamad Ariff
Keyword(s):  
Banking Sector ◽  
Positive Association ◽  
Annual Reports ◽  
Bank Performance ◽  
Ethical Values ◽  
Return On Assets ◽  
Content Type ◽  
And Performance ◽  
The Relationship

Purpose The purpose of this study is to investigate the relationship between ethical values and performance in the context of the banking sector in Malaysia. Design/methodology/approach Based on the philanthropic model, this study posits that firms undertaking zakat and charity are ethical firms. Zakat disclosure index (ZDI) and charity disclosure index (CDI) were constructed to measure ethical values. This study hypothesises that ethical values are positively associated with bank performance. Ethical values (i.e. CDI and ZDI) and financial performance data (i.e. return on assets) were collected from the disclosures made in the annual reports of 50 banks for a period of five years (2010-2014). Findings A positive association was found between zakat disclosure and bank performance. The results indicate that higher zakat disclosure is associated with greater bank performance. However, no relationship was found between charity disclosure and bank performance. Research limitations/implications Considering the limitation of the index used in this study, other dimensions such as corporate governance, sustainability, products and environment can be considered in the development of index to measure ethical values in future studies. Originality/value This study offers additional explanation on the relationship between ethical values and performance by examining the role of zakat disclosures that characterize the unique aspects of Malaysian companies.

scholarly journals Corporate governance compliance and its effectiveness in the Nigerian banking industry

2013 ◽  
Vol 10 (3) ◽  
pp. 63-75
Author(s):  
Achuzia Somuawine Azani ◽  
Mei Yu ◽  
Osita Chukwulobelu
Keyword(s):  
Corporate Governance ◽  
Central Bank ◽  
Commercial Banks ◽  
Banking Industry ◽  
Low Frequency ◽  
Independent Directors ◽  
Executive Directors ◽  
Corporate Governance Code ◽  
Compliance Level ◽  
Nigerian Banking

This paper examines the extent of compliance to the Central Bank of Nigeria (CBN) 2006 Corporate Governance Code by 24 Nigerian commercial banks and reveals a compliance level of 76.6%. The major non-compliance areas include non-constitution of a board committee consisting of non-executive directors, that regulates the compensation for executive directors, and the non-inclusion of independent directors on the main boards of many banks. Furthermore, the analysis shows that the benefits resulting from the changes for compliance outweigh the additional layers of supervisory checks and bureaucratic overbearing associated with the Code. The Code has brought about more effective corporate governance, accountability and greater transparency despite a low frequency of supervision and examination of the banks by the CBN.

scholarly journals Assessing the Impact of Corporate Governance on Non-Performing Loans: Empirical Analysis of the Listed Commercial Banks of Pakistan

2019 ◽  
Vol IV (III) ◽  
pp. 188-196
Author(s):  
Ihtesham Khan ◽  
Muhammad Ilyas ◽  
Shehzad Khan
Keyword(s):  
Corporate Governance ◽  
Banking Industry ◽  
Annual Reports ◽  
Governance System ◽  
Nonperforming Loans ◽  
Time Period ◽  
Corporate Governance System ◽  
The Impact ◽  
Code Compliance

Financial crisis shows the ambiguous role of the corporate governance system. Hence, the main purpose of this paper is to assess the impact of corporate governance on Non-performing loans of the banking industry of Pakistan. The time period selected from 2006 to 2016 and source of data is annual reports of respective banks and the World Bank. In order to explain the relationship between the governance system and non-performing loans used descriptive, correlational and panel data analyses. The results revealed a negative and significant effect of corporate governance on nonperforming loans of sample firms of the study. Therefore, suggested for the banking industry of Pakistan to implement and make sure their reports according to corporate governance code compliance to control non-performing loans.

scholarly journals Remuneration of independent directors: Determinants and policy implications

2019 ◽  
Vol 17 (1) ◽  
pp. 278-291
Author(s):  
Massimo Belcredi ◽  
Stefano Bozzi
Keyword(s):  
Policy Implications ◽  
Independent Directors ◽  
Gender Quotas ◽  
Executive Directors ◽  
Firm Characteristics ◽  
Positive Role ◽  
Pay Gap ◽  
Listed Firms ◽  
The Relationship

Taking advantage of a unique database on Italian Corporate Governance, we study the determinants of remuneration paid to individual non-executive directors (NEDs) and, in particular, to independent directors (INEDs). Our results on a database covering around 16,000 positions/year for non-executive directors in Italian listed firms (over a 9-year period) show that: 1) Remuneration is strongly affected by firm characteristics, in particular by firm size. Independent directors are paid less than gray directors; the gap between the two categories is, however, gradually closing, due to lower additional compensation being paid to gray directors in subsidiaries. Contrary to what happens in other countries, NED remuneration remained quite stable: a small increase is observable only for independent directors; 2) NED remuneration is influenced by the functions performed by individual directors within the board. On the contrary, individual directors’ characteristics have little or no impact. We find evidence of a gender pay gap among independent directors in less recent years; however, this gap has gradually disappeared in conjunction with the increasing number and role of female directors, following the adoption of gender quotas; 3) The relationship between independent directors’ pay and some variables of interest has changed over time: this is true not only for gender but also for Tobin’s Q (a proxy for the benefits from monitoring) and for the number of positions held in other companies. The changes we observe are apparently consistent with the market for directors’ pay in Italy becoming more mature after the introduction of Say-on-Pay and other regulation favouring investor activism. This is also consistent with a positive role played by both institutional investors and their representatives sitting on the board of listed companies after the introduction of said legislation.

Managing technology transfer between coopetitive firms: the roles of coopetition, asset specificity and justice

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ruijia Liu ◽  
Jianjun Yang ◽  
Feng Zhang
Keyword(s):  
Technology Transfer ◽  
Positive Impact ◽  
Exchange Process ◽  
Governance Mechanism ◽  
Governance Mechanisms ◽  
Informal Governance ◽  
Positive Role ◽  
Content Type ◽  
The Relationship

Purpose Prior studies have demonstrated the important role of coopetition in firms’ innovation. Based on the paradox perspective, this study aims to focus on technology transfer, the pre-innovation stage, to provide a supplementary understanding of the complementarity and contradictoriness of paradoxical coopetition, with the formal and informal governance mechanisms which are suitable with this understanding in coopetition. Design/methodology/approach This study conducted an original, multisource survey of 280 Chinese manufacturing firms. Hypotheses were tested through multiple regressions. Findings Coopetition has a positive impact on technology transfer between firms. Along with the increasing specificity of assets invested ex ante as a kind of formal governance mechanism, the relationship between coopetition and technology transfer becomes stronger. Meanwhile, inter-firm justice as an informal governance mechanism in the technology transfer process can be positively affected by coopetition between partners. Originality/value The study adds to the business-to-business coopetition literature on how to properly treat and use coopetition in technology transfer. Using the paradox perspective in the Chinese context, the findings emphasize the positive role of coopetition in the inter-firm technological exchange process, enriching the understanding of the complementary and contradictory features of paradoxical coopetition. To govern coopetitive relationships, the firms should also implement two fundamental governance mechanisms, that is, specialty asset and inter-firm justice.

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