scholarly journals Transparency, corporate governance and firm performance in The Netherlands

2016 ◽  
Vol 90 (7/8) ◽  
pp. 308-322 ◽  
Author(s):  
Henry van Beusichem ◽  
Abe de Jong ◽  
Douglas DeJong ◽  
Gerard Mertens
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
The Netherlands ◽  
Firm Size ◽  
Annual Report ◽  
Annual Reports ◽  
Accounting Standard ◽  
Listed Firms ◽  
And Performance

We explore the relations between transparency, corporate governance, and performance for Dutch exchange-listed firms over 1997-2007. Our measure for transparency is based on annual report information. In 2005 a new accounting standard (IFRS) became mandatory and applicable to the annual reports of Dutch listed firms. We investigate the effects of IFRS by comparing pre and post IFRS periods. We find that under IFRS transparency has increased substantially, and that the determinants of transparency have also changed. Pre-IFRS, disclosure is mainly driven by firm size, leverage and protective preference shares. Post-IFRS, we observe very little variation in disclosure practices.

scholarly journals Corporate governance and firm performance: Evidence from an emerging market

2019 ◽  
Vol 9 (1) ◽  
pp. 45-52 ◽  
Author(s):  
Ahmed S. Alanazi
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Emerging Markets ◽  
Regression Models ◽  
Emerging Market ◽  
Operating Performance ◽  
Listed Firms ◽  
Developed Markets ◽  
Two Samples ◽  
And Performance

The paper investigates the link between corporate governance scores and firm performance among the largest 90 listed companies on the Saudi Stock market. The sample of 90 listed firms is split into two samples: firms with high governance scores and firms with low governance scores. The research compares and contrasts the operating performance of the two samples. In addition, regression models are used to test the link between governance scores and performance. No link between the companies’ corporate governance scores and operating performance is found. It is difficult to capture all elements of the complex corporate governance topic in corporate governance scores. It seems that corporate governance in emerging markets lags far behind that of developed markets. This is the first paper to examine the link between corporate governance scores and operating performance in the Saudi market, a new emerging market that has not been examined. The paper adds to the debate in the literature whether there is a link between corporate governance scores and performance. The evidence in the literature is inconclusive.

scholarly journals Collective personality of top listed firms in Australia and its impact on financial and market performance

2020 ◽  
Vol 18 (1, Special Issue) ◽  
pp. 438-449
Author(s):  
Anil Chandrakumara ◽  
Rohan Wickramasuriya ◽  
Grace McCarthy
Keyword(s):  
Firm Performance ◽  
Annual Report ◽  
Annual Reports ◽  
Learning Approach ◽  
Return On Equity ◽  
Listed Firms ◽  
Machine Learning Approach ◽  
Governance Practices ◽  
Research Problems ◽  
The Impact

This paper examines three research problems. First, what collective personality traits are reflected in CEOs’ statements in firms’ annual reports? Second, is there any impact of collective personality on financial (ROE – return on equity) and market (TQ – Tobin’s Q) performance? Third, whether attributes of CEOs or collective personality makes a greater impact on firm performance? Using the machine learning approach employed by IBM’s Personality Insights service, we performed a content analysis of 804 CEO’s annual report statements in 402 firms to estimate collective personality scores and adopted hierarchical multiple regression analysis to examine the intended relationships. The study found that collective conscientiousness and agreeableness impact positively on ROE and TQ and collective openness and neuroticism impact negatively on either or both ROE and TQ. Further, the collective personality tends to show a greater impact on ROE and firm size by assets than the impact of CEOs attributes. Besides exploring a relatively less-researched concept, the study highlights the practical value of developing intellectual and human capital through governance practices and leadership towards enhancing firm performance.

scholarly journals Board Activities and Performance of Firms Listed at the Nairobi Securities Exchange

2018 ◽  
Vol 14 (28) ◽  
pp. 250
Author(s):  
Moses Odhiambo Aluoch ◽  
Erasmus S. Kaijage ◽  
Cyrus Iraya ◽  
Martin Ogutu
Keyword(s):  
Corporate Governance ◽  
Regression Analysis ◽  
Annual Reports ◽  
Tobin’S Q ◽  
Tobin's Q ◽  
Listed Firms ◽  
Common Mean ◽  
Board Committees ◽  
And Performance ◽  
Board Ownership

This study sought to examine the relationships among board activities and performance of firms listed at the Nairobi Securities Exchange. This study used a census approach and a target population of the study comprised of all companies listed at the Nairobi Securities Exchange between 2002 and 2016. A total of sixty five (65) companies were listed at the Nairobi Securities Exchange as at 31st December 2016. The data on board activities and performance of firms were extracted from annual reports of the individuals firms. This study employed longitudinal descriptive research design to determine relationships amongst board activities and performance of firms. A panel data regression analysis was conducted using random effects model which allowed the companies to have a common mean value of the intercept to determine whether corporate governance influence firm performance. An increasing trend was observed in other board activities variables such board ownership, board meetings, board tools, board committees and number of committees meetings. The study findings on the other hand revealed reducing trend in board tenure and board remuneration of listed firms Kenya. This was inferred to indicate that listed firms in Kenya have been strengthening their corporate governance over the study period. Regression analysis indicated that board activities are insignificant predators of Return on Assets, However board tenure, committees meetings and board remuneration were found to have a positive but insignificant effect on Tobin’s Q among listed firms in Kenya. Board ownership board tools, board meetings and number board committees were found to have negatively affected the performance measured by Tobin’s Q in listed firms in Kenya. However, only board tools significantly affected the performance measured by Tobin’s Q. The study concluded that listed firms in Kenya adopted corporate governance practices as part of the requirements of the regulating authority which had not impact on the specific company’s performance. Based on the findings of this study, stakeholders of listed firms and regulating authority such as Capital Markets Authority may relook at the board activities policies of listed firms with the view revising the existing policies or formulating new and more progressive policies to ensure shareholder interests are protected. These policies may go a long way to ensure listed firms not only strengthened their board activities during poor performing seasons but rather clear systems and activities that provide a clear roadmap to guide board operations.

scholarly journals Do corporate governance practices affect the performance of firms listed on the Ghana Stock Exchange?

2019 ◽  
Vol 17 (1) ◽  
pp. 107-115 ◽  
Author(s):  
Paul Adjei Onyina ◽  
Daniel Kojo Gyanor
Keyword(s):  
Corporate Governance ◽  
Business Performance ◽  
Stock Exchange ◽  
Annual Reports ◽  
Listed Firms ◽  
Weak Evidence ◽  
Governance Practices ◽  
Size Growth ◽  
And Performance ◽  
Ghana Stock Exchange

This paper investigates whether the performance of a firm matters if it has strong corporate governance practices and listed on the Ghana Stock Exchange. It uses annual financial statements between 2007 and 2016 from firms that have been certified by the Security and Exchange Commission and listed firms on the Ghana Stock Exchange. By means of the random effects model, the study does not provide statistically compelling evidence that listed corporate governance variables affect the performance of firms listed on the Ghana Stock Exchange. However, the study found weak evidence in favour of board size, leverage, firm size, growth, and asset tangibility. We find that many of the corporate governance variables used in the model have no significant impact on the performance of the firms. The relevance of the study is that it shows the relationship between policies on corporate governance and performance of firms, and governing bodies of firms informed about the type of corporate governance practices that will support business performance. Hence we recommend that policymakers take this up to embark on rigorous modification of practices on corporate governance involving listed companies in Ghana to ascertain first-hand how these firms are practising what has been documented in their annual reports

scholarly journals CORPORATE GOVERNANCE AND FIRM PERFORMANCE: EVIDENCE FROM LISTED FIRMS OF PAKISTAN

2021 ◽  
Vol 12 (1) ◽  
pp. 170-187
Author(s):  
Shuaib Ali ◽  
Guo Fei ◽  
Zhaid Ali ◽  
Farhan Hussain
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Audit Committee ◽  
Stock Exchange ◽  
Agency Problem ◽  
Institutional Ownership ◽  
Least Square ◽  
Ownership Concentration ◽  
Listed Firms ◽  
And Performance

This study aims to find the influence of corporate governance on firm performance for the listed non-financial firms on the Pakistan Stock Exchange (PSX) for the period 2005-15.  The article has measured corporate governance by the large boards with more independent directors, independence of audit committee, ownership concentration, non-existence ofCEOduality, and presence of foreign and institutional investors. To address this endogenous nature of institutional ownership and performance in this study we have used instrumental variables (IV) techniques using a two-stage least square (2SLS) by instrumentalizing institutional ownership with firm size and firm age. The study found that firms with large and independent boards outperform their counterparts. Similarly, the study found that firms having the joint position ofCEOand chairperson performs lower than counterparts. In Pakistan firms with foreign and institutional owners better than others. We found that firms with concentrated owners have a lower level of agency problem and ultimately perform well. Furthermore, we found that firms with a lower level of agency problem type II (measured via ownership concentration contestability) perform better in Pakistan. 

Corporate governance and firm performance: empirical evidence from Pakistan

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Farooq ◽  
Amna Noor ◽  
Shoukat Ali
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Firm Size ◽  
Good Governance ◽  
Positive Impact ◽  
Least Square ◽  
Local Context ◽  
Content Type ◽  
Governance Index ◽  
Governance Quality

Purpose The purpose of this research is to look into the governance–performance relationship in the context of critical firm characteristics, such as firm size. Design/methodology/approach Based on total assets, sample firms were classified as small or large. The governance index, which is based on 29 governance provisions covering the audit committee, board committee, ownership and compensation structure of the respective firm, measures governance quality among sample firms. A higher governance index indicates a higher level of governance quality and vice versa. Accounting and market value measures are used to determine firm profitability. The authors used the two-stage least square (2SLS) method of estimation of the model to eliminate the simultaneous equation bias. Findings Corporate governance (CG) appears to have a positive impact on accounting return and market indices (Tobin’s Q), but it has little impact on return on equity. In terms of firm size, larger companies profited more from better governance implementation than smaller firms that lacked these principles, thus improving CG. The findings indicate that small businesses should improve their governance mechanisms to reap the benefits of CG in terms of increased profitability. Research limitations/implications There are certain drawbacks to this research. First, the authors omitted qualitative aspects of CG from the CG index, such as the board’s decision-making process, directors’ perceptions of the board’s position and directors’ age and qualifications. Such a qualitative component will improve the governance index in the future while building the governance index. Second, as the current study only looks at the nonfinancial sector, caution should be exercised before applying the findings to the entire population. Practical implications The findings show that companies that follow good governance standards have better accounting and market efficiency than those that do not. As a result, good governance practices can help firms in developing countries improve their performance. Academic researchers, regulators, investors, lenders and practitioners can find the findings useful in establishing a true relationship between firm performance and CG practices in Pakistan. Originality/value The relationship between governance and profitability in the context of firm size is examined in this research. Firms with varying resources and ability to implement CG codes have varying effects on profitability. To the authors’ knowledge, there was a gap in the literature that addressed this topic in the local context.

IMPACT OF CORPORATE GOVERNANCE ON FIRM PERFORMANCE: EVIDENCE FROM PAKISTAN

2021 ◽  
Vol 02 (01) ◽  
pp. 16-28
Author(s):  
Feryal Zafar ◽  
Shaheera Munir ◽  
Muhammad Saqib Khan
Keyword(s):  
Corporate Governance ◽  
Decision Makers ◽  
Annual Reports ◽  
Board Independence ◽  
Negative Effects ◽  
Research Issues ◽  
Listed Firms ◽  
Analysis Technique ◽  
Dependent Variables ◽  
The Relationship

The study attempts to figure out the relationship between the performance of the firms and corporate governance in Pakistan. Governance mechanisms used in this study are CEO duality, Independence of Board, Size of Board, and Ownership Concentration. While, the ROA and ROE have been used as dependent variables to measure the performance of firms. Using regression analysis technique on 10 listed firms trading over four years from 2014-2017, the results have been derived. The data regarding all the variables have been collected from all the companies’ annual reports. The discoveries of the study direct that fundamentals of corporate governance such as the Size of the Board, Ownership, and Duality Concentration of CEO have negative effects on performance of organization, as measured by ROA and ROE. While Board independence positively affects the performance of firms. The results are thus significant and provide valuable information for the decision makers about the research issues under consideration.

Corporate governance practices and firm performance: a configurational analysis across corporate life cycles

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hala M. Amin ◽  
Ehab K.A. Mohamed ◽  
Mostaq M. Hussain
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Analytical Approach ◽  
Research Study ◽  
Performance Outcomes ◽  
Life Cycles ◽  
Related Activity ◽  
Content Type ◽  
And Performance ◽  
Country Specific

Purpose This study aims to explore corporate governance (CG) practices that can lead to firms’ better performance in different organizational life cycles. The authors propose a configurational approach to explore how a set of CG practices combine in bundles to achieve high performance outcomes for firms across their corporate life cycles. Design/methodology/approach Fuzzy-set qualitative comparative analysis was used to analyze a sample of data of 21 countries and 9 industries. Data referred to the period of 9 years extending from the year 2005 to the year 2013. Findings This study reveals that there are multiple CG practices that exist through firms that can achieve high firm performance. Moreover, CG practices combine in different ways for firms in their growth, maturity and declining stages. Research limitations/implications This study demonstrates the value of using a configurational analytical approach to explore both the firm and country-specific CG practices (together) that engage firms to achieve the desired level of performance across the corporate life cycles. Practical implications The current study draws attention to the policymakers’ need to assess the current level of regulatory and competitive development of their countries and form policy accordingly. The approach used in the current research study not only offers the linkages between CG and performance to managers as incentives to comply with regulation but also to view CG-related activity as a strategic move. Social implications The approach used in the current research study not only offers the linkages between CG and performance to managers as incentives to comply with regulation but also to view CG-related activity as a strategic move. Originality/value This study broadening the focus of CG studies to include a rigorous explanation of the global CG phenomena and to provide effective solutions for the practitioners. Contribution to Impact This study demonstrates the value of using a configurational analytical approach to explore both the firm and country-specific CG practices (together) that engage firms to achieve the desired level of performance across the corporate life cycles.

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.

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