WorldWideScience

Sample records for corporate governance ratings

  1. Corporate governance ratings as a means to reduce asymmetric information

    DEFF Research Database (Denmark)

    Balling, Morten; Holm, Claus; Poulsen, Thomas

    Can corporate governance ratings reduce problems of asymmetric information between companies and investors? To answer this question, we set out to examine the information basis for providing such ratings by reviewing corporate governance attributes that are required or recommended in laws...... suggest that rating providers by selecting relevant attributes in an intelligent way can improve the screening of companies according to governance quality. In contrast, it seems questionable that weighting, aggregation and classification of corporate governance attributes considerably improve...

  2. Corporate governance ratings as a means to reduce asymmetric information

    DEFF Research Database (Denmark)

    Holm, Claus; Balling, Morten; Poulsen, Thomas

    2014-01-01

    Can corporate governance ratings reduce problems of asymmetric information between companies and investors? To answer this question, we set out to examine the information basis for providing such ratings by reviewing corporate governance attributes that are required or recommended in laws......-set suggest that rating providers by selecting relevant attributes in an intelligent way can improve the screening of companies according to governance quality. In contrast, it seems questionable that weighting, aggregation, and classification of corporate governance attributes considerably improve...

  3. Corporate governance ratings as a means to reduce asymmetric information

    Directory of Open Access Journals (Sweden)

    Claus Holm

    2014-12-01

    Full Text Available Can corporate governance ratings reduce problems of asymmetric information between companies and investors? To answer this question, we set out to examine the information basis for providing such ratings by reviewing corporate governance attributes that are required or recommended in laws, accounting standards, and codes, respectively. After that, we scrutinize and organize the publicly available information on the methodologies actually used by rating providers. However, important details of these methodologies are treated as confidential property, thus we approach the evaluation of corporate governance ratings as a means to reduce asymmetric information in a more general manner. We propose that the rating process may be seen as consisting of two general activities, namely a data reduction phase, and a data weighting, aggregation, and classification phase. Findings based on a Danish data-set suggest that rating providers by selecting relevant attributes in an intelligent way can improve the screening of companies according to governance quality. In contrast, it seems questionable that weighting, aggregation, and classification of corporate governance attributes considerably improve discrimination according to governance quality.

  4. Advice and dissent: rating the corporate governance compact.

    Science.gov (United States)

    Wharton, C R; Lorsch, J W; Hanson, L

    1991-01-01

    The July-August 1991 HBR presented "A New Compact for Owners and Directors," a set of principles for reconciling differences between owners and managers. In "Advice and Dissent: Rating the Corporate Governance Compact," a panel of three experts evaluates the Compact--and takes issue with its fundamental recommendation. Clifton R. Wharton, Jr., chairman and CEO of TIAA-CREF, describes how his organization brings delinquent managers and directors to task. Harvard Business School professor Jay W. Lorsch explains why strengthening the role of outside directors will develop more effective corporate control. And Lord Hanson, chairman of Hanson PLC, reaffirms the importance of maintaining a unitary board of directors and maximizing shareholder value.

  5. A RESEARCH ON RELATIONSHIP BETWEEN CORPORATE GOVERNANCE RATINGS OF BANKS LISTED IN ISTANBUL STOCK EXCHANGE (BIST) CORPORATE GOVERNANCE INDEX AND SOME OF THEIR CHARACTERISTICS

    OpenAIRE

    Ozlem I. Koc

    2014-01-01

    Capital Markets Board of Turkey principles of corporate governance consist of four categories: Shareholders, Public Disclosure and Transparency, Stakeholders, Board of Directors. The corporate governance rating is determined by the rating institutions incorporated by Capital Markets Board of Turkey in its list of rating agencies as a result of their assessment of the company's compliance with the corporate governance principles. Publicly held corporations are listed in BIST Corporate Governan...

  6. Effects of corporate social responsibility and governance on its credit ratings.

    Science.gov (United States)

    Kim, Dong-young; Kim, JeongYeon

    2014-01-01

    This study reviews the impact of corporate social responsibility (CSR) and corporate governance on its credit rating. The result of regression analysis to credit ratings with relevant primary independent variables shows that both factors have significant effects on it. As we have predicted, the signs of both regression coefficients have a positive sign (+) proving that corporates with excellent CSR and governance index (CGI) scores have higher credit ratings and vice versa. The results show nonfinancial information also may have effects on corporate credit rating. The investment on personal data protection could be an example of CSR/CGI activities which have positive effects on corporate credit ratings.

  7. Examining corporate governance and corporate tax management

    Directory of Open Access Journals (Sweden)

    Martin Surya Mulyadi

    2014-07-01

    Full Text Available Taxation play an essential role both in a country and in a corporation. For a country it is one of the primary income source, while for the corporation taxes will reduce corporate net income. To minimize the tax payment, corporation conduct a corporate tax management. According to some of previous research, there is a correlation between corporate governance and corporate tax management. While there are many corporate governance proxies could be used in corporate governance research, in this research we are focusing on three: number of board, number of independent board and board compensation. We measure corporate tax management by using effective tax rate (GAAP ETR and current ETR are used in this research. By using several other control variables, we run the regression and conduct the statistical analysis to examine the correlation between corporate governance and corporate tax management. Our result show that corporate governance have a significant correlation to corporate tax management.

  8. Corporate Governance and Corporate Creditworthiness

    Directory of Open Access Journals (Sweden)

    Dror Parnes

    2011-12-01

    Full Text Available We examine the relation between corporate governance and bankruptcy risk as an underlying force affecting a bond’s yield. The level of corporate governance is captured by the G-index, along with the explicit groups of governance provisions. We estimate bankruptcy risk by Z-score, by cash-flow-score, by O-score, through Merton structural model default probabilities, and by S&P credit ratings. After addressing endogeneity and while controlling for firm-specific factors, based on the four objective methodologies we find that corporate governance is inversely related to bankruptcy risk. Yet, rating agencies take a mixed approach towards this association likely because of the conflicting impact of different governance provisions.

  9. Corporate Governance

    International Development Research Centre (IDRC) Digital Library (Canada)

    control and management information systems;. · monitor corporate performance against strategic and business plans;. · assess its own performance in fulfilling Board responsibilities;. · measure and monitor the performance of the. President and Chief Executive Officer; and. · ensure that the Centre has an effective.

  10. PRICE REACTION TO CORPORATE GOVERNANCE RATING ANNOUNCEMENTS AT THE ISTANBUL STOCK EXCHANGE

    Directory of Open Access Journals (Sweden)

    Aslıhan BOZCUK

    2010-01-01

    Full Text Available The purpose of this paper is to investigate the price reaction to corporate governance rating announcements at the Istanbul Stock Exchange and to identify the factors which could be driving the results. Using an event study analysis framework, the cumulative abnormal returns (AR are calculated for various event windows surrounding the announcement day for each firm. The average AR is 0.5% on announcement day, followed by all positive average cumulative ARs for the next 18 days following the announcement. In the multivariate regression analysis, a number of variables are used to proxy for factors suggested as relevant by the agency theory and the corporate governance literature; such as the size of the Audit Committee, the size of the Board of Directors, Corporate Governance Rating of each firm, number of non-executive members on the board, percentage of firm’s stock traded on the market, number of blockholders, family ownership, the price-earnings ratio, the market-to-book ratio and firm size. Audit committee size (P: 0.012 and board size (P: 0.043 together explained 32% of the variation in announcement day returns (F: 5.215, P: 0.018. Surprisingly, the corporate governance rating per se was not found to be significant. Overall, the price reaction on announcement day tends to be higher for firms with larger boards and smaller audit committees.

  11. Corporate Taxation and Corporate Governance

    DEFF Research Database (Denmark)

    Köthenbürger, Marko; Stimmelmayr, Michael

    2009-01-01

    The effects of corporate taxation on firm behavior have been extensively discussed in the neoclassical model of firm behavior which abstracts from agency problems. As emphasized by the corporate governance literature, corporate investment behavior is however crucially influenced by diverging...... interests between shareholders and managers. We set up an agency model and analyze the crucial issue in corporate taxation of whether the normal return on investment should be exempted from taxation. The findings suggest that the divergence of interests may be intensified and welfare reduced...... if the corporate tax system exempts the normal return on investment from taxation. The optimal system may well use the full return on investment as a tax base. Hence, tax systems such as an Allowance for Corporate Equity (ACE) or a Cash-flow tax do not have the familiar efficiency-enhancing effects in the presence...

  12. COMPARATIVE STUDY ON CORPORATE GOVERNANCE

    Directory of Open Access Journals (Sweden)

    Gavrea Corina

    2011-12-01

    Full Text Available Corporate governance is a key element of today’s economic reality being more and more present in many countries around the world. This paper has two main objectives. The first one is to offer more insight into the concept of corporate governance by a thorough literature review and by presenting and analyzing a framework of corporate governance. The second objective of this paper is to investigate the corporate governance situation in three developing economies (Romania, Bulgaria and Hungary. The World Bank and the European Bank for Reconstruction and Development published a series of reports on corporate governance. The present study uses data from these reports in order to illustrate how these developing economies are dealing with corporate governance. Based on ROSC Reports a corporate governance score was calculated. As this score shows, there is room for improvement for all three developing economies. This study is important because it shows the differences in corporate governance among developing economies and the need to study these nations at the individual country level. Corporate governance has many benefits for developing economies. It helps developing economies to register sustainable growth rates, to increases investors’ confidence in the national economy, and to increase the ability of capital markets to mobilize savings.

  13. Corporate Media Governance

    NARCIS (Netherlands)

    Kempen, Petrus Cornelis

    2011-01-01

    The media can make or break a reputation. This being said, it seems to be essential for companies, governments and institutions to pay specific attention to corporate media management in their daily operations. However, this thesis shows that they often neglect to pay adequate attention to corporate

  14. A new corporate governance

    Directory of Open Access Journals (Sweden)

    Ion Bucur

    2015-12-01

    Full Text Available The issue of corporate governance has become increasingly important as globalisation has begun to accelerate and the economic and financial turmoil have intensified. Post-crisis context has imposed the need to expand the prospects for analysis over governance and companies, as well as the need to identify new ways of administration and resource management. From this perspective, the author aims to highlight the conditions, factors and events that have generated profound changes within the business environment, while the analysis is focusing on contemporary changes in the systems of corporate governance and economic mutations, especially in terms of the companies. The establishment of new governance rules is demanding a theoretical approach based on new methodological requirements which are needed to reform theoretical foundations and to promote creative and effective shapes and governance systems.

  15. Contractual Corporate Governance

    NARCIS (Netherlands)

    Goergen, M.; Renneboog, L.D.R.

    2008-01-01

    Companies have the choice to deviate from their national corporate governance standards by opting into another system. They can do so via contractual devices – such as cross-border mergers and acquisitions, (re)incorporations, and cross-listings – which enable firms to choose their preferred level

  16. Corporate governance through codes

    NARCIS (Netherlands)

    Haxhi, I.; Aguilera, R.V.; Vodosek, M.; den Hartog, D.; McNett, J.M.

    2014-01-01

    The UK's 1992 Cadbury Report defines corporate governance (CG) as the system by which businesses are directed and controlled. CG codes are a set of best practices designed to address deficiencies in the formal contracts and institutions by suggesting prescriptions on the preferred role and

  17. Corporate governance and liquidity

    DEFF Research Database (Denmark)

    Farooq, Omar; Derrabi, Mohamed; Naciri, Monir

    2012-01-01

    This paper examines the impact of corporate governance mechanisms on liquidity in the MENA region, i.e. Morocco, Egypt, Saudi Arabia, United Arab Emirates, Jordan, Kuwait, and Bahrain. Using turnover as a proxy for liquidity, we document significant difference in liquidity between the pre...... difference in liquidity between the two periods. Furthermore, our results indicate that more than 50% of this difference between the two periods can be explained by operational and informational complexity of a firm – proxy for transparency. We argue that poor corporate governance mechanisms increase...... information asymmetries between insiders and outsiders. Outsiders, being liquidity providers, therefore do not trade in stocks for which they have no information. Therefore, firms with poor governance mechanisms usually experience higher decline in liquidity during periods of market-wide uncertainty....

  18. CORPORATE GOVERNANCE TERHADAP KINERJA PERUSAHAAN

    Directory of Open Access Journals (Sweden)

    Herman Darwis

    2017-03-01

    Full Text Available The research aimed to provide empirical evidence that corporate governance implementation,managerial ownership, institutional ownership, board of executive, and independent executiveaffected corporate performance. Population of the research was companies listed at IndonesianStock Exchange (ISX between 2006 – 2008; sampling method used was purposive sampling as well asmultiple regression analysis. The result showed the implementation of GCG affected corporate performance.This meant that if the listed companies at BEI and have been surveyed by IICG implement agood corporate governance, the performance would increase. The higher corporate governance wasmeasured by corporate governance index perception, the higher corporate obedience and result ina good corporate performance. Institutional ownership affected corporate performance. The greaterinstitutional share ownership, the better corporate performance. The result showed that controlfunction from the ownership did determine improving corporate performance. Managerial ownership,board of commissioner, and commissioner independent did not affect corporate.

  19. Nordic Corporate Governance Revisited

    DEFF Research Database (Denmark)

    Thomsen, Steen

    2016-01-01

    This paper reviews the key elements of the Nordic governance model, which include a distinct legal system, high governance ratings and low levels of corruption. Other characteristics include concentrated ownership, foundation ownership, semi two-tier board structures, employee representation...

  20. Corporate governance in India

    OpenAIRE

    Chakrabarti, Rajesh; Megginson, William L.; Yadav, Pradeep K.

    2007-01-01

    This study describes the Indian corporate governance system and examines how the system has both supported and held back India's ascent to the top ranks of the world's economies. While on paper the country's legal system provides some of the best investor protection in the world, enforcement is a major problem with slow, over-burdened courts and significant corruption. Ownership remains concentrated and family business groups continue to be the dominant business model. There is significant py...

  1. Corporate Governance Communication

    OpenAIRE

    Flavio Gnecchi

    2006-01-01

    The recognised critical importance of corporate governance, and the attention that it is paid today, can be ascribed to several factors: sensational financial scandals (and the repercussions they have had for securities and financial markets), the exponential development of stock option policies, the information asymmetry that can be noted in practically every company. The different requests for information of the various categories of stakeholders, combine to strengthen the decision to adopt...

  2. REFORMING CORPORATE GOVERNANCE IN ETHIOPIA ...

    African Journals Online (AJOL)

    milkii

    Federal Democratic Republic of Ethiopia (FDRE) Ministry of Justice is revising the Commercial .... 15 Malla Praveen Bhasa, Global Corporate Governance: Debates and Challenges, Corporate. Governance: The .... 38 Steve Letza et al, Corporate Governance Theorizing: Limits, Critics And Alternatives. International Journal ...

  3. Corporate Governance, CSR og menneskerettigheder

    DEFF Research Database (Denmark)

    Buhmann, Karin

    2005-01-01

    Artiklen diskuterer om der findes en forbindelse mellem Corporate Governance og Corporate Social Responsibility i forhold til menneskerettigheder. Det konkluderes, at en sådan forbindelse findes, i hvert fald i forhold til arbejdstagerrettigheder og dele af forholdet til eksterne stakeholdere....... Menneskeretsaspekter i Good (Public) Governance fungerer som udgangspunkt for identifikation af menneskerettighedselementer i Corporate Governance...

  4. Corporate Governance Country Assessment : Egypt

    OpenAIRE

    World Bank

    2004-01-01

    This report provides an updated assessment of Egypt's corporate governance policy framework, enforcement and compliance practices. It highlights recent improvements in corporate governance regulation, makes policy recommendations, and provides investors with a benchmark against which to measure corporate governance in Egypt. In recent years there have been a number of major reforms, mostly...

  5. An international corporate governance index

    NARCIS (Netherlands)

    Martynova, M.; Renneboog, L.D.R.; Wright, M.; Siegel, D.; Keasey, K.; Filatotchev, I.

    2013-01-01

    This chapter presents a comparative analysis of corporate governance regulatory systems and their development since 1990 in the United States and in 30 European countries. It introduces a proposed methodology that would help create detailed corporate governance indices which describe the primary

  6. THE SOUND OF CORPORATE GOVERNANCE

    Directory of Open Access Journals (Sweden)

    DUMITRASCU LUMINITA MIHAELA

    2012-07-01

    Full Text Available The paper explores the corporate governance and corporate social responsibility in music industry, by reviewing the literature and investigating the aspects in the context of a sample made by top companies in this domain. The paper spotlighting the mutual connections between corporate governance and corporate social responsibility. The research methodology used consists in investigate the corporate governance codes. It’s about a qualitative interpretive research methodology that was adopted. The findings suggest the intercorelation of corporate governance with corporate social responsibility. The main contribution of the author consists in the fact that the added value of this paper and the original contribution leads in the intercorelation of these two aspects of corporate governance and corporate social responsibility, the findings beeing interesting, implying that recent preoccupation with corporate governance in music industry is starting to be equable by some attention to social responsibility aspects, with growing appreciation of their interdependencies. Previous literature has researched corporate governance and corporate social responsibility independently. Due to this fact, this paper is considering them jointly. The paper is important for both practical and theoretical aspects: for managers and also can serve as the basis for future research on this topic. The current paper is realized in the doctoral program entitled “PhD in Economics at the Standards of European Knowledge- DoEsEc”, scientific coordinator Prof. PhD Niculae Feleaga, Institution: The Academy of Economic Studies Bucharest, Faculty of Accounting and Management Informatic System, Department of International Accounting, period of research 2009-2012.

  7. Corporate governance of the environment.

    OpenAIRE

    Purvis, B.

    2005-01-01

    The global pursuit of a more sustainable future cannot be achieved without the active engagement of the business community. The challenge for business has been to strategically engage with and embed environmental responsibility within their wider corporate governance to create effective corporate governance of the environment. The assumption would appear to be, that we have already witnessed the construction of such governance, delivered through the attainment of a paradigmatic shift in corpo...

  8. Corporate Governance Terhadap Kinerja Perusahaan

    OpenAIRE

    Darwis, Herman

    2009-01-01

    The research aimed to provide empirical evidence that corporate governance implementation,managerial ownership, institutional ownership, board of executive, and independent executiveaffected corporate performance. Population of the research was companies listed at IndonesianStock Exchange (ISX) between 2006 – 2008; sampling method used was purposive sampling as well asmultiple regression analysis. The result showed the implementation of GCG affected corporate performance.This meant that if th...

  9. Corporate governance and intellectual capital

    Directory of Open Access Journals (Sweden)

    Rahmat Alizadeh

    2014-01-01

    Full Text Available The purpose of this paper is to examine the association between corporate governance and Intellectual capital in the pharmaceutical companies accepted in Tehran Stock Exchange over the period 2004-2009 using a regression based model. The study investigates the impacts of three some independent variables of the corporate governance (i.e. the number of board members, the relative extent of nonexecutive to executive directors, the auditing committee. The results suggest that corporate governance had no special effect on intellectual capital in the pharmaceutical companies. Furthermore among corporate governance's variables, the first one (i.e. board size had negative impact on firms' intellectual capital and the second and the third variables had no effects on intellectual capital.

  10. Creditor Governance and Corporate Policies

    DEFF Research Database (Denmark)

    Arnold, Marc; Westermann, Ramona

    This paper analyzes the impact of debt covenant renegotiations on corporate policies. We develop a structural model of a levered firm that can renegotiate debt both at investment and in corporate distress. Covenant renegotiation at investment disciplines equity holders in their financing...... and investment decisions and, hence, mitigates the agency cost of debt. Our model explains the empirical intensity and patterns of the occurrence of debt renegotiation. We also quantify the role of debt covenant renegotiations as a governance channel on corporate financial policies and on the value of corporate...

  11. CORPORATE GOVERNANCE AND STAKEHOLDERS’ ACCOUNTABILITY

    Directory of Open Access Journals (Sweden)

    Elena CHIȚIMUȘ

    2015-04-01

    Full Text Available Corporate governance is the system through which companies are directed and controlled but until today academic environment, regulators, corporations couldn’t reach a unanimous definition. Corporate governance provisions suffered changes after several largely covered financial scandals. Entities incur costs when complying with new regulations but not complying impacts the reputation and investors might think twice before bringing their money into the company. Accountability for business decisions, risk management, control that set the economic path of the company is mandatory for proving that the company is run in a fairly and smart way. This study aims to investigate how corporate governance relates to accountability of all parties involved in the current business of companies as any conflict of interest is detrimental to the company and affects in a negative way its performance.

  12. Corporate Risk Disclosure and Corporate Governance

    Directory of Open Access Journals (Sweden)

    Kaouthar Lajili

    2009-12-01

    Full Text Available To date, research which integrates corporate governance and risk management has been limited. Yet, risk exposure and management are increasingly becoming the core function of modern business enterprises in various sectors and industries domestically and globally. Risk identification and management are crucial in any business strategy design and implementation. From the investors’ point of view, knowledge of the risk profile, risk appetite and risk management are key elements in making sound portfolio investment decisions. This paper examines the relationships between corporate governance mechanisms and risk disclosure behavior using a sample of Canadian publicly-traded companies (TSX 230. Results show that Canadian public companies are more likely to disclose risk management information over and above the mandatory risk disclosures, if they are larger in size and if their boards of directors have more independent members. Minority voting control ownership structures appear to negatively impact risk disclosure and CEO incentive compensation shows mixed results. The paper concludes that more research is needed to further assess the impact of various governance mechanisms on corporate risk management and disclosure behavior.

  13. Behavioral corporate governance : four empirical studies

    NARCIS (Netherlands)

    van der Laan, G.

    2009-01-01

    This thesis consists of studies of corporate governance from a behavioral perspective. The chapters are about trust between chief executive officers (CEOs) and board chairpersons, asymmetric effects of corporate social responsibility on corporate financial performance, compliance with corporate

  14. Corporate governance cycles during transition

    DEFF Research Database (Denmark)

    Mygind, Niels; Demina, Natalia; Gregoric, Aleksandra

    2004-01-01

    Ownership is determined by firm specific factors and the environment. Firms change over their life-cycle. The governance cycle - here defined as changes in identity of the dominant owner and own-ership concentration - is marked by key phases including start-up, growth, and possibly a restructur......-nancial system. To provide simple hypothesis tests, we use Russian enterprise data for 1995-2003 and Slovenian data covering 1998-2003. In spite of differences in institutional development, con-cerning privatization and development of corporate governance institutions, we find that govern-ance cycles are broadly...... of ownership on managers, external domestic and foreign owners. JEL-codes: G3, J5, P2, P3 - Keywords: corporate governance, life-cycle, privatization, ownership change, transition economies, Russia and Slovenia....

  15. The Nordic Corporate Governance Model

    DEFF Research Database (Denmark)

    Thomsen, Steen

    2016-01-01

    The Nordic countries – Denmark, Norway, Sweden, and Finland—have attracted attention in recent years. Some elements of the Nordic model—particularly the welfare state—are well understood, but its governance characteristics remain elusive to the international audience. This article reviews Nordic...... governance and discusses its relevance as a development paradigm. The article quantitatively documents the existence of a Nordic governance model using data from the World Bank, Transparency International and other sources. Secondly, it is shown how Nordic corporate governance – Nordic civil law......, concentrated ownership, semi two-tier board structures, employee representation and low-powered managerial incentives – has been shaped by the welfare state in ways consistent with systemic corporate governance theories. The article concludes with a skeptical discussion of the Nordic model as a development...

  16. Audit mode change, corporate governance

    Directory of Open Access Journals (Sweden)

    Limei Cao

    2015-12-01

    Full Text Available This study investigates changes in audit strategy in China following the introduction of risk-based auditing standards rather than an internal control-based audit mode. Specifically, we examine whether auditors are implementing the risk-based audit mode to evaluate corporate governance before distributing audit resources. The results show that under the internal control-based audit mode, the relationship between audit effort and corporate governance was weak. However, implementation of the risk-based mode required by the new auditing standards has significantly enhanced the relationship between audit effort and corporate governance. Since the change in audit mode, the Big Ten have demonstrated a significantly better grasp of governance risk and allocated their audit effort accordingly, relative to smaller firms. The empirical evidence indicates that auditors have adjusted their audit strategy to meet the regulations, risk-based auditing is being achieved to a degree, reasonable and effective corporate governance helps to optimize audit resource allocation, and smaller auditing firms in particular should urgently strengthen their risk-based auditing capability. Overall, our findings imply that the mandatory switch to risk-based auditing has optimized audit effort in China.

  17. Compliance management and corporate governance; Compliance Management und Corporate Governance

    Energy Technology Data Exchange (ETDEWEB)

    Becker, Uwe [Stadt Frankfurt am Main (Germany); Alsheimer, Constantin; Kassebohm, Kristian; Reutler, Susanne [Mainova AG, Frankfurt (Germany)

    2009-08-15

    Starting in the year 2009, numerous changes in the financial system and accountancy a well as in the corporate law come into effect for enterprises. Thereby, the requirements substantially are intensified to their corporate governance. The actual well-known reproaches of bribery, corruption and injuries of data protection intensify the pressure on executive committees and supervisory boards in order to meet normative and ethical requirements. All the more is valid for power suppliers whose reputation can already carry damage out with the first suspicion. Already in 2008, Mainova AG (Frnkfurt/Main, Federal Republic of Germany) implemented a compliance management.

  18. Corporate Governance Quality in Selected Transition Countries

    Directory of Open Access Journals (Sweden)

    Danila Djokic

    2017-12-01

    Full Text Available Important questions that concern the notion of good corporate governance focus on what good corporate governance is, who benefits from good corporate governance, and how corporate governance quality can be measured. The aim of our study was to broaden our understanding of the role of standards and codes of good corporate governance in improving governance practices.We found that not only formal regulations, standards, and governance codes, but also corporate governance indices-which make the assessment of companies’ governance practices possible-are important in measuring and improving governance quality. The results of the research based on the SEECGAN Index methodology indicated that mandatory requirements and voluntary recommendations of high governance standards had a positive impact on the corporate governance practice in Slovenia.

  19. Control mechanisms in corporate governance

    Directory of Open Access Journals (Sweden)

    Jovanović-Zattila Milena

    2016-01-01

    Full Text Available The structure of corporate governance is determined by the distribution of rights and responsibilities among different actors in the company structure. Organizationally complex structure of corporate entities, established as a reflection of composite forms of business corporations, give rise to the conflict of interest between the owners, the board of directors and managers, which is generally known as the principal-agency problem. Given the fact that operations of modern companies include interaction with a large number of stakeholders, matters of ethics and accountability to the owners, employees, creditors and the state are the basic postulates which have been subject to re-examination lately. The reasons for reassessing these issues are to be sought in numerous abuses by companies, which are on the other hand highly active in their effors to protect themselves from similar abuses (mainy cyber crime. In order to respond to new challenges and requirements, which include providing for the interests of both shareholders and stakeholders, corporate management is required to establish an adequate system of internal control covering all company activities. Contemporary trends in the development of internal audit, as a mechanism of good corporate governance, are reflected in providing advice in respect of anticipated future risks and risk management.

  20. VALUE CREATION THROUGH CORPORATE GOVERNANCE

    Directory of Open Access Journals (Sweden)

    Elena Chitimus

    2013-12-01

    Full Text Available Companies spend time and money in order to improve their corporate governance (CG system and also do not forget to inform third parties about their efforts in this field. CG studies the separation of power at an entity level and the segregation of responsibilities between shareholders, management, and board of directors. As a mechanism CG helps to align management’s goals with those of the stakeholders in order to avoid conflict and to sustain and develop a healthy company. The objective of this article is to show how corporate governance is defined, what does it stands for and why it is important or maybe better said why companies give it so much importance.

  1. Implementation of corporate governance principles in Romania

    OpenAIRE

    Ramona Iulia (Dieaconescu) Țarțavulea

    2014-01-01

    The paper aims to conduct a study regarding the manner in which corporate governance principles are applied in Romania, in both public and private sector. In the first part of the paper, the corporate governance principles are presented as they are defined in Romania, in comparison with the main international sources of interest in the domain (OECD corporate governance principles, UE legal framework). The corporate governance (CG) principles refer to issues regarding board composition, tra...

  2. The integration of corporate governance in corporate social responsibility disclosures

    NARCIS (Netherlands)

    Kolk, A.; Pinkse, J.

    2010-01-01

    In recent years, not only has attention to corporate governance increased but also the notion has broadened considerably, and started to cover some aspects traditionally seen as being part of corporate social responsibility (CSR). CSR, corporate governance and their interlink seem particularly

  3. Corporate governance cycles during transition

    DEFF Research Database (Denmark)

    Jones, Derek C.; Mygind, Niels

    2004-01-01

    We begin by identifying a typical governance life-cycle, defined as changes in ownership structure, and including both the identity of the major owner and ownership concentration. The cycle is marked by key events and phases including start-up, initial growth, mature growth, and possibly a crisis...... Bal-tic countries. The data enable various measures of ownership to be constructed (including the iden-tity of major owners and ownership concentration). The empirical analysis covers the ownership cycle with emphasis on initial ownership and subsequent changes. Our key method is to assemble a series...... is faster in Estonia and this can be explained by the relatively fast pace of institutional change and evolution of important gov-ernance institutions, including tough bankruptcy legislation and advances in the financial system. JEL-codes: G3, J5, P2, P3 Keywords: corporate governance, life...

  4. TRENDS IN CORPORATE GOVERNANCE REPORTING

    Directory of Open Access Journals (Sweden)

    Diana Maria Tinjala

    2014-09-01

    Full Text Available The debate concerning sustainability has been present in economic literature for the last decades. However, the concept remains ambiguous for both specialists and the general public. For the last years, corporate sustainability reporting has evolved, but it has yet to use a homogenous approach, therefore making it difficult for stakeholders to use the information being reported. This study focuses on the evolution of corporate sustainability reporting on governance issues, with particular interest on two non-financial indicators: board independence and the separation of board chairman and chief executive officer. Through content analysis from both annual reports and company websites, courtesy of the firm Sustainalytics, we assessed the evolution of the above - mentioned indicators for 2894 companies based in developed and emerging Markets, as per the MSCI market classification. For the selected time period, 2011-2014, the general number of companies that publish sustainability related information has increased, attracting a similar evolution in the reporting of the two analysed indicators. This research also highlights the several countries that have demonstrated a particular concern for governance issues, as well as the laggards. We conclude by proposing a number of important attributes for possible future governance reporting standards based on best reporting companies.

  5. Corporate Governance: A Keynote Speech

    DEFF Research Database (Denmark)

    Balling, Morten

    1998-01-01

    the changing ownership structures in Europe and governance, the influence exerted by shareholders in financial institutions on the management of those institutions, the role of banks as shareholders in non-financial companies in different European countries, and the different types of transactions through...... cases of privatization in Western Europe. Almost everywhere, the role of institutional shareholders is increasing. The internationalization proces implies that also the role of the governance systems changes the incentives for corporate managers to demonstrate good financial performance, and there seems...... to be signs of system convergence. In Western Europe affected by the globalization of the economies and the implementation of the Internal Market. In Central and Eastern Europe as a result of the internationalization process and the gradual adaption of the financial regulatory systems to the principles...

  6. The Research Frontier in Corporate Governance

    DEFF Research Database (Denmark)

    Ahrens, Thomas; Filatotchev, Igor; Thomsen, Steen

    2011-01-01

    In this paper we attempt to identify the research frontier in corporate governance using three different approaches: (1) what challenges does the financial crisis 2007–2009 pose for corporate governance research? We show that the financial crisis is a huge natural experiment which has exposed gaps...... in our knowledge of corporate governance and is likely to lead of a rethink of central concepts like shareholder value, debt governance, and management incentives (2) what do we know and what do we need to how about the impact of national institutions on corporate governance? (3) What research questions...

  7. Corporate governance and transparency in Japan

    OpenAIRE

    Aman, Hiroyuki; Beekes, Wendy Anne; Brown, Philip Ronald

    2016-01-01

    We investigate the effect of corporate governance on corporate transparency in Japan, as indicated by the richness of the information environment for Japanese companies. We focus on firms’ disclosure frequency, properties of analysts’ forecasts and the speed of price discovery as indicators of corporate transparency. We find corporate governance in Japan is associated with increased disclosure and greater analyst following, but not more timely price discovery. In further analysis, we confirm ...

  8. CORPORATE GOVERNANCE IN INDIA: AN ANALYSIS

    Directory of Open Access Journals (Sweden)

    Meghna Thapar

    2017-03-01

    Full Text Available Corporate governance is a process, relation and mechanism set up for the corporations and firms based on certain guidelines and principles by which a company is controlled and directed. The principles provided in the system ensure that the company is governed in a way that it is able to set and achieve its goals and objectives in the context of the social, regulatory and market environment, and is able to maximize profits and also benefit those whose interest is involved in it, in the long run. The division and distribution of rights and responsibilities among different participants in the corporation (such as the board of directors, managers, shareholders, creditors, auditors, regulators, and other stakeholders and inclusion of the rules and procedures for making decisions in corporate affairs are identified with the help of Corporate Governance mechanism and guidelines. The need to make corporate governance in India transparent was felt after the high profile corporate governance failure scams like the stock market scam, the UTI scam, Ketan Parikh scam, Satyam scam, which were severely criticized by the shareholders. Thus, Corporate Governance is not just company administration but more than that and includes monitoring the actions, policies, practices, and decisions of corporations, their agents, and affected stakeholders thereby ensuring fair, efficient and transparent functioning of the corporate management system. By this paper, the authors intend to examine the concept of corporate governance in India with regard to the provisions of corporate governance under the Companies Act 2013. The paper will highlight the importance and need of corporate governance in India. We will also discuss the important case laws which contributed immensely in the emergence of corporate governance in India.

  9. CORPORATE GOVERNANCE IN ROMANIA. EVOLUTION AND PERSPECTIVES

    Directory of Open Access Journals (Sweden)

    BUȘAN GABRIELA

    2015-03-01

    Full Text Available Thanks to slow way to political, legal, social and economic reform, the corporate governance appears in Romania, from concept and filing, until the early 2000`s. This paper analyzes the evolution of corporate governance in the period 2000-2015, it is presented the OECD principles of corporate governance of companies listed on the Bucharest Stock Exchange and it analyse the situation of the public entities who had the obligation to apply the provisions of O.U.G 109/2011 on corporate governance of public entities and to publish on its Web site the Annual Report

  10. Regulating Corporate Governance in the EU

    DEFF Research Database (Denmark)

    Horn, Laura

    In the context of the financial and economic crisis, corporate governance and regulatory supervision failures are at the centre of public debates. Who controls the modern corporation, and why, has become one of the defining social power relations in contemporary capitalism. Regulation Corporate...

  11. Corporate governance mechanisms in IPO firms

    NARCIS (Netherlands)

    Roosenboom, P.G.J.

    2002-01-01

    This thesis studies the use of corporate governance mechanisms in IPO firms. The IPO often marks the beginning of a more diffuse ownership structure by selling shares to a large group of outside investors. In the thesis corporate governance is viewed as a relevant design issue at the time of the

  12. Corporate governance and development - an update

    NARCIS (Netherlands)

    Claessens, S.; Yurtoglu, B.

    2012-01-01

    This paper reviews the relationships between corporate governance and economic development and well-being. It finds that better-governed corporate frameworks benefit firms through greater access to financing, lower cost of capital, better firm performance, and more favorable treatment of all

  13. A taxonomy of systems of corporate governance

    NARCIS (Netherlands)

    Weimer, J.; Pape, J.C.

    1999-01-01

    This paper argues that debate on corporate governance in an international context is hampered by the lack of a coherent framework. A taxonomy of systems of corporate governance is proposed as a remedy. The taxonomy is based upon eight characteristics: the prevailing concept of the firm, the board

  14. Implementation of corporate governance principles in Romania

    Directory of Open Access Journals (Sweden)

    Ramona Iulia Țarțavulea (Dieaconescu

    2014-12-01

    Full Text Available The paper aims to conduct a study regarding the manner in which corporate governance principles are applied in Romania, in both public and private sector. In the first part of the paper, the corporate governance principles are presented as they are defined in Romania, in comparison with the main international sources of interest in the domain (OECD corporate governance principles, UE legal framework. The corporate governance (CG principles refer to issues regarding board composition, transparency of scope, objectives and policies; they define the relations between directors and managers, shareholders and stakeholders. The research methodology is based on both fundamental research and empirical study on the implementation of corporate governance principles in companies from Romania. The main instrument of research is a corporate governance index, calculated based on a framework proposed by the author. The corporate governance principles are transposed in criteria that compose the framework for the CG index. The results of the study consist of scores for each CG principles and calculation of CG index for seven companies selected from the public and private sector in Romania. The results are analyzed and discussed in order to formulate general and particular recommendations. The main conclusion of this study is that that a legal framework in the area of corporate governance regulation is needed in Romania. I consider that the main CG principles should be enforced by developing a mandatory legal framework.

  15. Product market competition and corporate governance

    Directory of Open Access Journals (Sweden)

    Julia Chou

    2011-04-01

    Full Text Available This paper investigates whether product market competition acts as an external mechanism for disciplining management and also whether there is any relationship between the degree of competition a firm faces and its corporate governance. We find that firms in competitive industries or with low market power tend to have weak corporate governance structures. Results are robust to various competition measures at firm and industry levels, even after controlling for firm-specific variables. We further find that corporate governance quality has a significant effect on performance only when product market competition is weak. The overall evidence suggests that product market competition has a substantial impact on corporate governance and that it substitutes for corporate governance quality. Finally, we provide evidence that the disciplinary force of competition on management is from the fear of liquidation.

  16. Pengungkapan Corporate Social Responsibility, Struktur Corporate Governance dan Nilai Perusahaan

    Directory of Open Access Journals (Sweden)

    Salmah Pattisahusiwa

    2017-06-01

    Full Text Available The concept of the corporate social responsibility has a significant interest in Indonesia because believed to increase corporate’s value for shareholders. This study aims to find the effect of corporate social responsibility disclosure and corporate governance structure on corporate value. The data were taken from annual report of mining companies listed in Indonesian Stock Exchange for period of 2014-2015. The sample collection has been done by using purposive sampling with the certain criteria so that 18 companies which meet criteria have been obtained as samples. Multiple Regression analysis was employed to analyze data. The result of this research show that corporate social responsibility disclosure and corporate governance structure have significant effect to thecorporate value.

  17. The Relationship of Corporate Governance, Corporate Social Responsibilities and Corporate Financial Performance in One Continuum

    OpenAIRE

    Murwaningsari, Etty

    2010-01-01

    This study aims to identify the impact of Good Corporate Governance, represented by institutional ownership and managerial ownership, on Corporate Social Responsibility and Corporate Financial Performance.It examines 126 manufacturing companies listed at the Indonesian Stock Exchange (IDX) and have issued audited financial statements for 2006. The statistical method used to test the hypothesis is Path Analysis. The main results suggest that Good Corporate Governance has effects on both Corpor...

  18. Adding value to corporate ventures through governance

    DEFF Research Database (Denmark)

    Skat-Rørdam, Peter

    2005-01-01

    This working paper examines the governance of corporate ventures based upon a qualitative interview based case study of a European industrial conglomerate. The purpose is to explore the value adding mechanisms of governance, that are considered more critical to the success of corporate ventures...... than the control mechanisms widely explored in connection with the governance of large public corporations. The paper provides examples of how value can be added as well as perspectives on the challenges and effectivenes here-off as evaluated by venture CEO's and venture board members...

  19. Corporate Governance in PT Lippo Karawaci Tbk

    Directory of Open Access Journals (Sweden)

    Retno Kusumastuti

    2012-06-01

    Full Text Available When mismanagement and misuse run rampant in giant corporations, as in the case of Enron in 2001, good corporate governance becomes mandatory. From the perspective of the agency theory, the separation of capital owners and management must lead to strictly applied good corporate governance. The purpose is to eliminate any disadvantages to the corporation's objective, namely providing added values to all relevant parties. The agency theory also covers two aspects: agency issues and agency costs. The research uses the qualitative approach and data is gathered through extensive interview, secondary data, and bibliography study. Key persons among the sources are selected based on specific criteria. Data validity is obtained through the triangulation technique, and the samples used are PT Lippo Karawaci Tbk and subsidiaries. The results show that governance practices are unique in each corporation, in accordance with their characteristics.

  20. 12 CFR 1710.10 - Law applicable to corporate governance.

    Science.gov (United States)

    2010-01-01

    ... 12 Banks and Banking 7 2010-01-01 2010-01-01 false Law applicable to corporate governance. 1710.10... AND URBAN DEVELOPMENT SAFETY AND SOUNDNESS CORPORATE GOVERNANCE Corporate Practices and Procedures § 1710.10 Law applicable to corporate governance. (a) General. The corporate governance practices and...

  1. Associative corporate governance: the steel industry case

    NARCIS (Netherlands)

    Joustra, P.K.

    2011-01-01

    This thesis argues for a radical change in the way multinational corporations prepare their decisions, both on a strategic level and on a day-to-day operational level. It proposes and details a new perspective of corporate governance based on the principles of associative democracy as a

  2. Privatisation and Corporate Governance in Eastern Europe

    DEFF Research Database (Denmark)

    Meyer, Klaus E.

    2003-01-01

    An unintended outcome of transition is the emergence of new forms of governance.Stakeholders other than shareholders influence corporate management to a higher degree thanin mature market economies. Employees gained influence through ownership stakes or workcouncils, while elsewhere investment...

  3. An Inverse Problem Study: Credit Risk Ratings as a Determinant of Corporate Governance and Capital Structure in Emerging Markets: Evidence from Chinese Listed Companies

    Directory of Open Access Journals (Sweden)

    ManYing Kang

    2017-11-01

    Full Text Available Credit risk rating is shown to be a relevant determinant in order to estimate good corporate governance and to self-optimize capital structure. The conclusion is argued from a study on a selected (and justified sample of (182 companies listed on the Shanghai Stock Exchange (SHSE and the Shenzhen Stock Exchange (SZSE and which use the same Shanghai Brilliance Credit Rating & Investors Service Company (SBCR assessment criteria, for their credit ratings, from 2010 to 2015. Practically, 3 debt ratios are examined in terms of 11 characteristic variables. Moreover, any relationship between credit rating and corporate governance can be thought to be an interesting finding. The relationship we find between credit rating and leverage is not as evident as that found by other researchers for different countries; it is significantly positively related to the outside director, firm size, tangible assets and firm age, and CEO and chairman office plurality. However, leverage is found to be negatively correlated with board size, profitability, growth opportunity, and non-debt tax shield. Credit rating is positively associated with leverage, but in a less significant way. CEO-Board chairship duality is insignificantly related to leverage. The non-debt tax shield is significantly correlated with leverage. The correlation coefficient between CEO duality and auditor is positive but weakly significant, but seems not consistent with expectations. Finally, profitability cause could be regarded as an interesting finding. Indeed, there is an inverse correlation between profitability and total debt (Notice that the result supports the pecking order theory. In conclusion, it appears that credit rating has less effect on the so listed large Chinese companies than in other countries. Nevertheless, the perspective of assessing credit risk rating by relevant agencies is indubitably a recommended time dependent leverage determinant.

  4. Corporate Governance, between Classicism and Modernism

    Directory of Open Access Journals (Sweden)

    Niculae Feleaga

    2006-07-01

    Full Text Available Corporate governance represents a complex concept, being an assembly of mechanisms used to set order into company leaders’ decisions. The rules of corporate governance are the ones keeping the score between the economic entity’s leaders and the third parties who invest their resources in the business. The corporate governance issue did not appear by hazard, but it resulted from the necessity to reconcile many business interests within a company (sometimes contradictory issues, especially the ones between the shareholders and the business leaders. The Anglo-Saxon view, in which the business power is given to the Equity items, is traditionally opposing the European (continental vision, where focus is being made on the Stakeholders’ interests. Within a world dominated by globalization issues, and where the financial markets evolve on an exponential curve, the two above mentioned corporate governance models ought to interact one with another in a constructive manner. Even if the corporate governance concept has developed recently, mainly during the last 25 years, its origins are rooted way back into the world history. Corporate governance is organically linked to the capitalist society and economy. After the 11 September attacks, many of the contemporary authors had the tendency to declare this date as the beginning of the XXIst century. If the ‘Twin Towers’ had hosted companies like: Tyco, Enron, Xerox, Wordcom and many other Stock Exchange-quoted businesses, it is likely that the financial crisis from 2000-2002 would have been differently perceived, and corporate governance had developed slightly different evolutionary mechanisms. A scientific article, based on the comparison between the classical and modern corporate governance experiences, would therefore suit the Romanian business environment.

  5. Corporate Governance, between Classicism and Modernism

    Directory of Open Access Journals (Sweden)

    Cristina Vasile

    2006-09-01

    Full Text Available Corporate governance represents a complex concept, being an assembly of mechanisms used to set order into company leaders’ decisions. The rules of corporate governance are the ones keeping the score between the economic entity’s leaders and the third parties who invest their resources in the business. The corporate governance issue did not appear by hazard, but it resulted from the necessity to reconcile many business interests within a company (sometimes contradictory issues, especially the ones between the shareholders and the business leaders. The Anglo-Saxon view, in which the business power is given to the Equity items, is traditionally opposing the European (continental vision, where focus is being made on the Stakeholders’ interests. Within a world dominated by globalization issues, and where the financial markets evolve on an exponential curve, the two above mentioned corporate governance models ought to interact one with another in a constructive manner. Even if the corporate governance concept has developed recently, mainly during the last 25 years, its origins are rooted way back into the world history. Corporate governance is organically linked to the capitalist society and economy. After the 11 September attacks, many of the contemporary authors had the tendency to declare this date as the beginning of the XXIst century. If the ‘Twin Towers’ had hosted companies like: Tyco, Enron, Xerox, Wordcom and many other Stock Exchange-quoted businesses, it is likely that the financial crisis from 2000-2002 would have been differently perceived, and corporate governance had developed slightly different evolutionary mechanisms. A scientific article, based on the comparison between the classical and modern corporate governance experiences, would therefore suit the Romanian business environment.

  6. Corporate Governance for A.S.E. Listed Firms

    Directory of Open Access Journals (Sweden)

    Tellidou Theognosia

    2016-03-01

    Full Text Available The present paper focuses on the level of compliance and application of corporate governance from the corporations listed in the Athens Stock Exchange (A.S.E. and attempts to highlight improvements from the adoption of best practices suggested by corporate governance recent trends worldwide. In order for the research to be conducted, a series of qualitative and quantitative variables were used, as derived from the financial statements of 162 public companies. A more extensive analysis regarding the level of compliance with corporate governance was conducted in 25 companies with the highest and 25 corporations with the lowest score, whose classification in these positions was the result of a rating system that was created for this purpose.

  7. Business systems and corporate governance

    DEFF Research Database (Denmark)

    Pedersen, Torben; Thomsen, Steen

    1999-01-01

    The paper tests the applicability of Whitley' s business systems framework to the study of international differences in corporate ownership structure. In support of Whitley' s framework we document the existence of large differences among the largest companies in 12 European nations. Furthermore we...

  8. Hubungan Corporate Governance, Corporate Social Responsibilities Dan Corporate Financial Performance Dalam Satu Continuum

    OpenAIRE

    Murwaningsari, Etty

    2009-01-01

    This research aims to identify the influence of Good Corporate Governance, represented by institutional ownership and managerial ownership, on Corporate Social Responsibility and Corporate Financial Performance, and also to observe the possible influence of Corporate Social Responsibility on Corporate Financial Performance. This research examines 126 manufacturing companies which are listed in Indonesian Stock Exchange (ISX) and have issued an audited financial statement for 2006. The statist...

  9. Corporate governance of non-listed companies

    NARCIS (Netherlands)

    McCahery, J.A.; Vermeulen, E.P.M.

    2008-01-01

    Studies of corporate governance traditionally focus on the governance problems of large publicly held firms, and policymakers' recommendations often focus on such firms. However most small firms, and in many countries, even many large companies, are closely held. This book provides a comprehensive

  10. Parallels in government and corporate sustainability reporting

    Science.gov (United States)

    D. J. Shields; S. V. Solar

    2007-01-01

    One of the core tenets of Sustainable Development is transparency and information sharing, i.e., government and corporate reporting. Governments report on issues within their sphere of responsibility to the degree that their constituents demand that they do so. Firms undertake reporting for two reasons: they are required to do so by law, and doing so makes good...

  11. Performance, corporate governance and new regulation.

    Directory of Open Access Journals (Sweden)

    Heriberto Garcia

    2012-07-01

    Full Text Available 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 stock exchange and non U.S listed firms our findings were related to the potential growth of the Mexico Financial Market, Law and Finance.

  12. Hubungan Corporate Governance, Corporate Social Responsibilities dan Corporate Financial Performance Dalam Satu Continuum

    Directory of Open Access Journals (Sweden)

    Etty Murwaningsari

    2009-01-01

    Full Text Available This research aims to identify the influence of Good Corporate Governance, represented by institutional ownership and managerial ownership, on Corporate Social Responsibility and Corporate Financial Performance, and also to observe the possible influence of Corporate Social Responsibility on Corporate Financial Performance. This research examines 126 manufacturing companies which are listed in Indonesian Stock Exchange (ISX and have issued an audited financial statement for 2006. The statistical method used to test the hypothesis is Path Analysis. The result suggests that Good Corporate Governance influences both the disclosure of Corporate Social Responsibility and Corporate Financial Performance and that Corporate Social Responsibility significantly influences Corporate Financial Performance. The result also suggests that CEO Tenure, the controlling variable, holds a significant influence on the disclosure of Corporate Social Responsibility. Yet, there is no strong evidence to support the type of industries as an influencing factor of Corporate Social Responsibility. Furthermore, we found that the latter condition would also apply when we analyze the influence of Corporate Secretary and Nomination and Remuneration Committee on Corporate Financial Performance. Abstract in Bahasa Indonesia: Penelitian ini bertujuan untuk mengidentifikasi pengaruh antara struktur Coorporate Governance yang diproksikan sebagai kepemilikan institusional, kepemilikan manajerial terhadap corporate social responsibility dan corporate social responsibility terhadap corporate financial performance. Penelitian menggunakan data sekunder dari laporan tahunan 2006 perusahaan publik yang terdapat di Pusat Referensi Pasar Modal (PRPM Bursa Efek Indonesia (BEI. Sampel dalam penelitian ini sebanyak 126 perusahaan. Melalui pendekatan analisa jalur (path analysis menunjukkan Good Corporate Governance yaitu kepemilikan managerial dan institusional mempunyai pengaruh terhadap

  13. A Corporate Governance Index : Convergence and Diversity of National Corporate Governance Regulations

    NARCIS (Netherlands)

    Martynova, M.; Renneboog, L.D.R.

    2010-01-01

    The issue of appropriate corporate governance framework has been a focal point of recent reforms in many countries. This study provides a comprehensive comparative analysis of corporate governance regulatory systems and their evolution over the last 15 years in 30 European countries and the US. It

  14. Impact of Social Auditing on Corporate Governance, Corporate ...

    African Journals Online (AJOL)

    Social auditing process is intended as a means for social engagement, transparency and communication of information leading to greater accountability of decision-makers, managers and officials. The underlying ideas are directly linked to the concepts of corporate governance, democracy and participation. The study has ...

  15. Risk and Control Developments in Corporate Governance

    DEFF Research Database (Denmark)

    Holm, Claus; Laursen, Peter Birkholm

    2007-01-01

    Are the risk and control developments in corporate governance changing the role of the external auditor? This paper examines how the concepts of risk and control are incorporated in current corporate governance promulgations and analyses the implications for the role of the external auditor...... be perceived as the experts regarding internal control and risk management and that this must be engrained as part of the service rendered, i.e. part of the value adding nature of an audit. At the same time they must improve the transparency of the audit standards and the communication processes of audit....... It is suggested that up till now the corporate governance debate has strengthened the position or role of the internal auditor in the advantage of the role of the external auditor. The promulgations have influenced the internal control mechanisms, and the control responsibilities have become more explicit...

  16. A RELATIONAL ANALYSIS OF CORPORATE GOVERNANCE

    Directory of Open Access Journals (Sweden)

    Gheorghe MINCULETE

    2014-04-01

    Full Text Available One of the realities brought forward by the financial crisis is that the corporate Governance, based until now mainly on self-regulation, has not been as effective as possible. A better management of organizations is important not only in order to reduce the possibility of occurrence of a new crisis in the future, but also for organizations to be more competitive. Currently we do not have a definition of corporate governance that is unanimously accepted. At global level, there are a variety of definitions for this term, depending on national, cultural or legislative characteristics. In this article we present the concept of corporate governance as being a complex process occurring at the level of the management of the organization, which integrates control, risk management and internal audit in a formula that is meant to determine the level of performance for the organizational achievements.

  17. Intern kontrol fra et Corporate Governance Perspektiv

    DEFF Research Database (Denmark)

    Holm, Claus; Birkholm Laursen, Peter

    2003-01-01

    En stadig voksende interesse for risiko styring (Risk Management) som en central proces i virksomhedsledelse vil måske betyde en ændret opfattelse af intern kontrol. Dette artikel fokuserer på intern kontrol fra et Corporate Governance perspektiv. "Intern kontrol" kan udfra de forskellige...... definitioner på begrebet summarisk beskrives som et begreb der integrerer kontrol og elementer, der kan henføres til overordnet ledelse/daglig ledelse i forbindelse med disses styring af virksomheden (Laursen, 2000). De forskellige aktører identificeret ved Corporate Governance perspektivet kan have forskellig...

  18. Corporate governance and audit features: SMEs evidence

    OpenAIRE

    Al-Najjar, Basil

    2018-01-01

    Purpose\\ud The purpose of this paper is to investigate the effect of corporate governance factors on audit features, namely, audit fees and the selection of Big 4 audit firms within the UK SMEs context.\\ud \\ud Design/methodology/approach\\ud The author uses different regression models to investigate the impact of corporate governance characteristics on audit features, and employs cross-sectional time series models as well as two-stage least squares technique. In addition, the author has used l...

  19. INTERNAL AUDIT IN CORPORATE GOVERNANCE

    Directory of Open Access Journals (Sweden)

    Felicia Gabriela UNGUREANU

    2010-03-01

    Full Text Available Internal Audit, compared with verification of transactions and compliance with established procedures, identify risks and assess the effectiveness of risk management.Internal audit based on risk analysis assesses the adequacy and effectiveness of internal control in all areas of activity, helps management in its task by analyzing the causes and consequences, with recommendations concerning the activities examined, whereas both shareholders and existing and potential investors are interested in how the entity is governed.

  20. How Corporate Governance Affects Strategy of Corporations : - Lessons from Enron Corporation -

    OpenAIRE

    Ahmed, Hameed; Najam, Ali

    2006-01-01

    Corporate governance is a subject of academic and professional debate. It has and it will continue to be a topic under scrutiny for subsequent deliberations since there are many different research dimensions and contexts associated with it. However, it has been observed that the linkage between corporate governance and strategy of a corporation remains as an untapped area with considerable avenues of research. This paper tends to explore this linkage, using Enron scandal as backdrop. In the a...

  1. Corporate Governance Structure and Audit Quality

    OpenAIRE

    ZENG, SHIWEN

    2012-01-01

    Audit quality has always been the focus of attention by government regulatory authorities, the legislature, public investment and other stakeholders. This paper is going to investigate the effects of corporate governance structure on audit quality for the UK evidence. The sample study consists of 226 companies among FTSE 350 listed on the London Stock Exchange (LSE) for the fiscal year of 2011. The regression results and analysis are used to investigate the relationship between the audit qual...

  2. Does Corporate Governance Impact Risk Management System?

    Directory of Open Access Journals (Sweden)

    Petre BREZEANU

    2011-04-01

    Full Text Available This paper brings forth the contribution of corporate governance to risk management system at the enterprise level. The research is a complex one, integrating both quantitative and qualitative information. The quantitative information consists of balance sheet and profit and loss account data while the qualitative one includes dummy variables reflecting the agency and monitoring costs which govern the relationship between managers and shareholders.

  3. CORPORATE GOVERNANCE AND THE PERFORMANCE OF ...

    African Journals Online (AJOL)

    management, cohesive policies, processes and decision-rights for a given area of responsibility in a separate legal entity ... Literature Review. Corporate governance refers to the processes, structures and information used for directing and overseeing the management of an institution (Duncan and Cameron, 2005). A good ...

  4. CORPORATE GOVERNANCE OF BANKS : A SURVEY

    NARCIS (Netherlands)

    de Haan, Jakob; Vlahu, Razvan

    This paper reviews the empirical literature on the corporate governance of banks. We start by highlighting the main differences between banks and nonfinancial firms and focus on three characteristics that make banks special: (i) regulation, (ii) the capital structure of banks, and (iii) the

  5. Commercial lending in different corporate governance systems

    NARCIS (Netherlands)

    Pape, J.C.

    1999-01-01

    This thesis is concerned with corporate governance, or more accurately, about one of its many aspects. This thesis is about banks that finance firms and it is about the commercial loans that enterprises use to finance investments. It is not about shareholders, managerial remuneration or about the

  6. Risk management and corporate governance performance ...

    African Journals Online (AJOL)

    The study examines the relative effect of risk management and corporate governance on bank performance in Nigeria. The study utilizes both primary and secondary data. The primary data were collected using structured questionnaire that were administered in Four-hundred and eighty (480) employees of Wema Bank Plc ...

  7. Nordic Corporate Governance and Industrial Foundations

    DEFF Research Database (Denmark)

    Thomsen, Steen

    to the international audience. This paper therefore reviews the Nordic corporate governance model with special emphasis on a unique ownership structure, industrial foundations (foundations that own business companies). Rather than a meticulous description of details it emphasizes the Nordic model as a mode...

  8. Recent Developments in German Corporate Governance

    NARCIS (Netherlands)

    Goergen, M.; Manjon, M.C.; Renneboog, L.D.R.

    2004-01-01

    We contrast the features of the German corporate governance system with those of other systems and discuss the recent regulatory initiatives.For example, the rules on insider trading and anti-trust have been strengthened.The Restructuring Act has been revised to prevent minority shareholders from

  9. RELEVANCE OF CORPORATE GOVERNANCE IN NIGERIAN ...

    African Journals Online (AJOL)

    providing financial assistance of 620 billion naira and technical assistance, through the replacement of the affected bank chiefs ... examine corporate governance issues as they affect the current financial crisis in the country. Methodology ... accounting and financial reporting framework in Nigeria. Furthermore, Okike (1999).

  10. The Financial Sector and Corporate Governance

    DEFF Research Database (Denmark)

    Mallin, Chris; Mullineux, Andy; Wihlborg, Clas

    2004-01-01

    In 1992 the Cadbury Committee report on the financial aspects of corporate governance waspublished. The Committee had been established following the failures of a number of highprofile businesses in the UK which had shaken confidence in the market. Some nine yearslater, in 2001, the collapse...

  11. OVERVIEW OF CORPORATE GOVERNANCE IN ETHIOPIA: Abstract

    African Journals Online (AJOL)

    eliasn

    Enron, WorldCom and Arthur Andersen, and the resulting loss of confidence of the investing public in the stock market led to dramatic declines in share prices and substantial financial losses to millions of individual investors.32 Both the public and the experts have identified failed corporate governance as a principal.

  12. Political connectedness, corporate governance, and firm performance

    Czech Academy of Sciences Publication Activity Database

    Domadenik, P.; Prašnikar, J.; Švejnar, Jan

    2016-01-01

    Roč. 139, č. 2 (2016), s. 411-428 ISSN 0167-4544 R&D Projects: GA ČR GA15-24642S Institutional support: RVO:67985998 Keywords : political connectedness * political corruption * corporate governance Subject RIV: AH - Economics Impact factor: 2.354, year: 2016

  13. Corporate Governance in Crisis? The Politics of EU Corporate Governance Regulation

    DEFF Research Database (Denmark)

    Horn, Laura

    2012-01-01

    on the transformation of company law and corporate governance in the last decade. Here, the article illustrates how company law has become increasingly focused on the rights of shareholders, while worker rights have been relegated to the area of social policies and labour law. The study also traces the shift from......This article emphasises the essentially political nature of corporate governance regulation and argues that the transformation of corporate governance regulation is part of a broader political project of economic restructuring and market-making in the EU. The first part of the analysis focuses...

  14. MODELS AND PRACTICES OF CORPORATE GOVERNANCE WORLDWIDE

    Directory of Open Access Journals (Sweden)

    Mihaela Ungureanu

    2012-10-01

    Full Text Available In the current context of globalization, we can no longer talk about increasing organizational value ignoring the interests of shareholders, employees, business partners, etc. Such interests may come into conflict, leading to internal conflicts, with negative influence on the entity’s performance. To avoid such discrepancies, a responsible behavior from managers is increasingly necessary, which means, in fact, adopting a corporate governance model.The aim of this article is to make a comparative study between the main corporate governance models used globally by analyzing strengths and weaknesses for each one, in the sense to determine which one is the best model and if it can be adapted to different economic systems, in order to be applied on a scale as large. We used a bibliographic method for our research is the one. Literature does not provide concrete answers to this problem, most authors treating each one the governance model specific to their home country.

  15. Relationship between Corporate Governance and Information Security Governance Effectiveness in United States Corporations

    Science.gov (United States)

    Davis, Robert E.

    2017-01-01

    Cyber attackers targeting large corporations achieved a high perimeter penetration success rate during 2013, resulting in many corporations incurring financial losses. Corporate information technology leaders have a fiduciary responsibility to implement information security domain processes that effectually address the challenges for preventing…

  16. Earnings management, corporate governance and expense sticki

    Directory of Open Access Journals (Sweden)

    Shuang Xue

    2016-03-01

    Full Text Available Cost and expense stickiness is an important issue in accounting and economics research, and the literature has shown that cost stickiness cannot be separated from managers’ motivations. In this paper, we examine the effects that earnings management has on expense stickiness. Defining small positive profits or small earnings increases as earnings management, we observe significant expense stickiness in the non-earnings-management sub-sample, compared with the earnings-management sub-sample. When we divide expenses into R&D, advertising and other general expenses, we find that managers control expenses mainly by decreasing general expenses. We further examine corporate governance’s effect on expense stickiness. Using factor analysis, we extract eight main factors and find that good corporate governance reduces expense stickiness. Finally, we investigate the interaction effects of earnings management and corporate governance on expense stickiness. The empirical results show that good corporate governance can further reduce cost stickiness, although its effect is not as strong as that of earnings management.

  17. Corporate Governance & Auditor Choice in Malaysia

    Directory of Open Access Journals (Sweden)

    Wan Nasrudin Wan Asma

    2017-01-01

    Full Text Available The aim of this paper is to investigate the determinants of firm’s auditor choice in Malaysia in respect of their corporate governance mechanisms. A logit regression model was developed to test the impact of firms’ internal corporate governance mechanism on auditor choice decisions made by public listed companies listed on main board of Bursa Malaysia from year 2006 to 2015. Five variables are used to proxy for firm’s internal corporate mechanism which are the ownership concentration, the duality of CEO and chairman of BOD, the size of audit committee, the size of BOD and the number of independent directors on the board. All auditors in Malaysia were classified into Big Four and non-Big Four, assuming Big Four auditors can provide higher quality audit services. The final result show that firms with less concentrated ownership, with larger size of audit committee, larger size of the BOD, with lower proportion of independent directors on the board, or in which CEO and BOD’s chairman are not the same person are more likely to hire a high-quality auditor. Hence, it suggests that when benefits from lowering capital raising costs are trivial, firms with good corporate governance mechanism are prone to choose a high-quality auditor.

  18. Corporate governance in Balkan financial institution, case of Albania

    Directory of Open Access Journals (Sweden)

    Rezart Dibra

    2013-06-01

    this paper is to make such connections and ground the policy debate on scientific evidence. The Corporate Governance in banks is one of the most important discussions overall the world, being reinforced especially after the crises period. It is related with the sensitive situation and the stage of developments of the local economy and moreover with the impact of the crises that is still ongoing. As an answer, during late 2008 and beginning 2009, it has been noticed a fast reaction and total focus from all banks on building (if missing and improving their structures of Corporate Governance. The liquidity problems suddenly affecting the banking sector constrained Banks to enlarge their activities / operations and forced them in better evaluating their investments. The importance of a strong financial sector in impacting the country’s economy growth through both level of banking development and stock market liquidity (Levine and Sara Zervos 1996, 1998 is quite evident even in the developing countries. Moreover, Peter Rousseau and Watchel (2000 findings’ confirm the positive impact of the stock market activity and the banking development. For this reason the governments in the developing countries are insisting in increasing credits of banks towards the private firms. The banking system in Bulgaria, Romania, Serbia and Albania has certain similarities in terms of development stage, related with the economic growth rate as well. The banking system, there is operating for more than 100 years instead of 15-20 years of development in the remaining countries.

  19. Corporate Governance and Strategic Management Accounting Disclosure

    Directory of Open Access Journals (Sweden)

    Setianingtyas Honggowati

    2017-06-01

    Full Text Available The aim of this study is to examine the corporate governance influence on strategic management accounting disclosure. The strategic management accounting disclosure in this study was measured by the disclosure level regarding strategic management accounting published in the company's annual report according to the index (made by the author. The corporate governance is proxied by board size, independent board, and managerial ownership. The data of this study are 497 manufacturing companies in Indonesia in the period of 2011-2015 and the method employed in this study is regression analysis method. The findings show that board size has significant positive influence on the disclosure level of strategic management accounting of manufacturing companies in Indonesia, and the proportion of independent board does not influence SMA disclosure, while managerial ownership has negative influence the disclosure level of strategic management accounting.

  20. Corporate governance in banks: Problems and remedies

    Directory of Open Access Journals (Sweden)

    Monika Marcinkowska

    2012-05-01

    Full Text Available Weak and ineffective corporate governance mechanisms in banks are pointed out as the main factors contributing to the recent financial crisis. Deep changes in this area are necessary to reinforce the financial sector stability. The paper presents key aspects requiring reforms: the role, constitution and accountability of board, risk management, management remuneration, transparency. New regulations and guidance are presented, creating the foundations for a new order of the financial market. The paper also points out the banks’ stakeholders’ accountability.

  1. Privatization and Corporate Governance in Poland: Problems and Trends

    OpenAIRE

    Piotr Kozarzewski

    2006-01-01

    The paper is devoted to the problems of the impact of privatization on corporate governance formation in Poland. It discusses the dilemmas of choosing a model for privatization and corporate governance, legal background, mechanisms of corporate governance formation depending on a privatization method applied, and the evolution of these structures in the course of systemic transformation in Poland. The Author comes to the conclusion that the processes of privatization and corporate governance ...

  2. Advances in the corporate governance practices of Johannesburg ...

    African Journals Online (AJOL)

    Given the paucity of research on corporate governance in the country, the researchers set out to investigate the corporate governance practices of 230 companies listed on the Johannesburg Stock Exchange over the period 2002 to 2010. Annual corporate governance scores were compiled by means of content analysis of ...

  3. 31 CFR 30.0 - Executive compensation and corporate governance.

    Science.gov (United States)

    2010-07-01

    ... 31 Money and Finance: Treasury 1 2010-07-01 2010-07-01 false Executive compensation and corporate governance. 30.0 Section 30.0 Money and Finance: Treasury Office of the Secretary of the Treasury TARP STANDARDS FOR COMPENSATION AND CORPORATE GOVERNANCE § 30.0 Executive compensation and corporate governance...

  4. Sovereign Wealth Funds – the New Challenge for Corporate Governance

    Directory of Open Access Journals (Sweden)

    Dariusz Urban

    2010-10-01

    Full Text Available The article discusses Sovereign Wealth Funds with reference do the process of corporate governance. In the first part the paper presents the rise, growth and current investment activity of those funds. In the second section the author consider reasons for implementation of corporate governance best practices. The last part of the paper compares Santiago Principles with OECD principles of corporate governance.

  5. FINANCIAL PERFORMANCE ANALYSIS OF ENTERPRISES UNDER THE CORPORATE GOVERNANCE INDEX

    Directory of Open Access Journals (Sweden)

    Fatih Temizel

    2016-08-01

    Full Text Available According to regulations of Capital Market Board (CMB, Corporate Governance Principles Compliance Notes are given by independent rating institutions to companies whose shares are traded on Borsa İstanbul. Via those notes the 50 most successful companies on corporate governance are determined. In order to obtain indicators for the price and yield analysis, the 50 most successful shares are included in the Borsa İstanbul Corporate Governance Index. In this study with the exception of financial sector companies, financial performance ranking of 34 out of 50 companies of the Corporate Governance Index is performed by TOPSIS (Technique for Order Preference by Similarity to Ideal Solution method. TOPSIS method was used based on the 10 financial ratios of the companies. 5 year performance rankings covering the years 2011-2015 were obtained and the ranking changes were examined. Finally, the 5-year average performance rankings were calculated and financial performance ratings of the companies in the index for 5 years is revealed.

  6. Perspektif Shareholding Versus Stakeholding di Dalam Memahami Fenomena Corporate Governance

    Directory of Open Access Journals (Sweden)

    Niki Lukviarman

    2009-08-01

    Full Text Available This paper challenges the notion of “universalist” or “one-size-fits-all” approach to corporate govern¬ance. It considers different perspective of understanding organization (corporations which in turn generate alter¬nate paradigms concerning the issue of corporate governance and the way one could govern the corporation. It looks more closely of various assumptions and theoretical frameworks underpinning the governance concepts. The main proposition of this paper is that different perspectives in theory and paradigms result in different diagno¬ses of and the solutions to the problems of corporate governance in practice. Hence, it might be argued that there should be varies model of governance that should be considered based on specific characteristics of organization -and of different context- in order for such model to be effective.Keywords: shareholding, stakeholding, corporate governance, shareholder rights, corporate efficiency

  7. SOCIAL RESPONSABILITY AND CORPORATE GOVERNANCE IN EVALUATING

    Directory of Open Access Journals (Sweden)

    MIRON VASILE-CRISTIAN-IOACHIM

    2015-10-01

    Full Text Available The evaluation of an entity's economic performance is often perceived by the public as being limited to the analyses carried based on a component of the annual financial statements or on a component of the profit and loss account. We believe, however, that the current financial reporting system no longer offers an informational potential sufficiently high in the process of assessing the performance of an economic entity, and we sustain the large scale introduction of an additional component of reporting (voluntary or required by legal settlements that must be seen as ethical behavior in reporting. This study aims to bring to light this ethical component of reporting by analyzing the concepts of social responsibility and corporate governance, analyzing specialized literature concerning these concepts, but also how this "ethical behavior" is experienced at the level of the entities that activate in the energy sector. In other words, this approach is not an analysis of the ethics in the research of economic performance of entities, but a research of the ethical side of the performance analysis. However, an important objective of this study is to analyze and assess the extent to which ethical behavior of economic entities (shown here by the application and reporting related to social responsibility and corporate governance can influence the performance of an economic entity, or they represent a consequence of performance. The results of the study show that at the level of the analyzed entities from the energy sector there are different approaches in terms of both applying the concepts of social responsibility and corporate governance, as well as regarding the way of reporting these issues. If in the application of these concepts, we can assume that each economic entity is free to find its own vision, regarding the manner of reporting the application of these concepts, we believe that this should be done in a more unitary way, in order to ensure

  8. Corporate governance, analyst following and firm value

    OpenAIRE

    Mouselli, Sulaiman; Hussainey, Khaled

    2014-01-01

    Purpose – The purpose of this paper is to examine the impact of a firm’s corporate governance (CG) mechanisms on the number of financial analysts following UK firms. The potential effect of the number of analysts following firms in the UK on the association betweenCGmechanisms and firm value was also examined. Design/methodology/approach – Multiple regression models were used to examine the association between CG, analyst coverage and firm value for a large sample of UK firms listed in London...

  9. Compliance with Corporate Governance Principles: Australian Evidence

    Directory of Open Access Journals (Sweden)

    Maryam Safari

    2015-12-01

    Full Text Available This study investigates the association between the level of compliance of Australian listed companies with Australian corporate governance principles, in aggregate, and the level of discretionary accruals using the modified Jones model. It is hypothesised that higher levels of compliance would be associated with lower levels of discretionary accruals. Data from a random sample of 214 Australian listed companies for the years 2009 and 2010 were used to test the hypothesis. The results demonstrate a significant negative relationship indicating that companies with higher levels of compliance engage in lower levels of earnings management via discretionary accruals.

  10. 12 CFR 7.2000 - Corporate governance procedures.

    Science.gov (United States)

    2010-01-01

    ... 12 Banks and Banking 1 2010-01-01 2010-01-01 false Corporate governance procedures. 7.2000 Section 7.2000 Banks and Banking COMPTROLLER OF THE CURRENCY, DEPARTMENT OF THE TREASURY BANK ACTIVITIES AND OPERATIONS Corporate Practices § 7.2000 Corporate governance procedures. (a) General. A national bank...

  11. Corporate Governance and Share Price: Evidence from listed Firms ...

    African Journals Online (AJOL)

    Most companies in Nigeria adopt corporate governance practices without really knowing the resultant effects on share price. Although there have been numerous research efforts on corporate governance and company performance in Nigeria, little has been done concerning finding out the effects of the corporate ...

  12. King IV is here: Corporate Governance in South Africa revisited ...

    African Journals Online (AJOL)

    Codes of Conduct for corporate governance have been evolving over the past few decades. The article assesses the progress in local corporate governance with the launch of the latest King IV code for South African corporations in 2016 and argues that unless there is transformation in these critical areas, King IV is not ...

  13. Corporate governance mechanisms and intellectual capital

    Directory of Open Access Journals (Sweden)

    Francisca Tejedo-Romero

    2017-07-01

    Full Text Available Purpose – The purpose of this paper is to identify the corporate governance characteristics of Spanish companies included in the Ibex35 stock price index that influence the voluntary information disclosure policy regarding their Intellectual Capital. Design/methodology/approach – The methodology used was content analysis of 115 annual reports from 23 Ibex35 companies over five years; this allowed for the development of an index to quantify Intellectual Capital information. Findings – Based on Agency-Stakeholders Theory postulates, the main results reveal that companies that disclose most information about their Intellectual Capital are those in which managers have greater managerial ownership, fewer independent directors, separation of functions between the chairman and the chief executive, and larger Boards of Directors. Originality/value – With this study, we contribute to agency-stakeholder theory by analyzing a non-Anglo-Saxon market (characterized by strong executive power and low protection of minority shareholders and other stakeholders, stating that certain characteristics of Corporate Governance condition the disclosure of Intellectual Capital.

  14. Intern kontrol fra et Corporate Governance perspektiv

    DEFF Research Database (Denmark)

    Holm, Claus; Laursen, Peter Birkholm

    En stadig voksende interesse for risiko styring (risk management) som en central proces i virksomhedsledelse vil måske betyde en ændret opfattelse af intern kontrol. Et af formålene med COSO rapporten var at bidrage med et fælles framework for intern kontrol på tværs af virksomhedens...... interessegrupper. Derfor er hovedspørgsmålet i dette paper, om COSO-frameworket er tilstrækkeligt, når intern kontrol ses fra et Corporate Governance perspektiv. Spørgsmålet bliver forsøgt besvaret ved at undersøge udviklingen i opfattelsen af intern kontrol over tid. Opfattelsen af intern kontrol hos Corporate...... Governance aktørerne undersøges og diskuteres med udgangspunkt i en sammenligning af COSO-frameworket med revisorernes standarder henholdsvis før og efter COSO-rapporten. Der foretages en indholdsanalyse af de relevante dokumenter som (1) bidrager til en mere detaljeret beskrivelse af udviklingen i begrebet...

  15. Origins of executive pay & corporate governance reform codes : Essays on an institutional approach to corporate governance

    NARCIS (Netherlands)

    Otten, J.A.

    2007-01-01

    Typically corporate governance is analyzed and understood on the basis of agency theory. This theory is not only the dominant one in academic research, it is also understood as the dominant lens by which policy makers and practitioners ought to see the field. Nevertheless, in order to provide more

  16. Can "reputation management" overcome failures in corporate governance?\\ud

    OpenAIRE

    Watson, Tom

    2006-01-01

    Poor corporate governance appears to undo all the efforts of corporate communication activities in promoting and managing reputation. Is it a factor of poor leadership by senior management or a generalised failure of organisational relationships?

  17. Study on the Support Systems for Corporate Governance

    Directory of Open Access Journals (Sweden)

    Claudiu BRANDAS

    2011-01-01

    Full Text Available The problems generated by the information asymmetry within the agency relationships at corporation level, governments and capital markets led to a higher necessity for corporate governance (CG. The information system of corporate governance is a very complex one, which involves a series of actors, decision-making and transactional processes, technologies, procedures and good practice codes. In order to ensure the efficiency and efficacy of corporate governance as a premise for increasing company’s performance and position consolidation for the company on the capital market, it is necessary to analyze the way information technology could contribute to this undertaking. The purpose of this study is to analyze the architecture of the corporate governance systems and to identify and classify the systems and technologies involved in ensuring CG support in order to underlie the basis for developing a conceptual model for a hybrid and collaborative support system for corporate governance.

  18. Pengaruh Corporate Governance terhadap Efektifitas Mekanisme Pengurang Masalah Agensi

    Directory of Open Access Journals (Sweden)

    Zaenal Arifin

    2009-03-01

    Full Text Available The main objective of this research is to investigate whether there are a significant influence between corporate governance and effectiveness of agency-problem-reducing mechanism. The corporate governance is concern on all stakeholder interest while the agency variables are concern only on one of the most important stakeholders’ that is the stockholders. In theory, there should be a significant relationship between the corporate governance and the effectiveness of agency-problem-reducing mechanism. Using all manufacturing companies listed in Jakarta Stock Exchange during 2001 - 2004, this research found that corporate governance influence the effectiveness of debt mechanism in reducing agency problem. The other mechanism, dividend and independent board of director, do not effective to reduce agency problem and the corporate governance does not influence the effectiveness of these two mechanisms. Key words: agency problem, corporate governance, dividend, debt, independent Board of director

  19. Employee Participation in Multinational Corporations: Corporate Governance and the Role of Works Councils

    NARCIS (Netherlands)

    Meyer, Marcus

    What is the role of Dutch (central) works councils in light of the corporate governance regime applicable to multinational corporations (MNCs) in the Netherlands? And how are rules regarding the involvement of Dutch works councils in MNCs on corporate governance aspects applied in practice? This

  20. Corporate Governance Effects on Social Responsibility Disclosures

    Directory of Open Access Journals (Sweden)

    António Dias

    2017-06-01

    Full Text Available This study uses stakeholder theory to explore how corporate governance [CG] characteristics influence corporate social responsibility disclosure [CSRD] in the context of a global financial crisis [GFC]. Empirical data are drawn from Portugal, a country strongly affected by the GFC. Portuguese companies are characterized by high ownership concentration. The largest shareholder is often the CEO and Board Chair (a phenomenon known as CEO duality. We analyse the association between CSRD (measured by a 40-item disclosure index and CG variables (board size, CEO duality, board independence, ownership concentration and presence of an audit committee or CSR committee for 48 of the 51 listed companies in Portugal. The control variables are company size and industry type. We find that CSRD is affected positively by board size, CEO duality, company size and industry type. This accords with suggestions implicit in stakeholder theory that a larger board will represent a broader diversity of stakeholders and will promote better monitoring, more assertive stakeholder management, greater transparency, and increased levels of CSRD. Larger companies and companies close-to-consumers are associated with high levels of CSRD, ostensibly because they are more visible and subject to greater societal monitoring during a period of financial crisis. We reveal that in a country characterized by high ownership concentration, CEO duality has a positive effect on CSRD.

  1. CORPORATE GOVERNANCE REGULATION IN EMERGING COUNTRIES. CASE OF ROMANIA

    Directory of Open Access Journals (Sweden)

    Claudiu George BOCEAN

    2010-01-01

    Full Text Available Most of the literature on corporate governance emphasizes that firms should be run in the interests of shareholders. This is a suitable objective function when markets are perfect and complete. In many emerging economies this is not the case: markets are imperfect and incomplete. Corporate governance issues are especially important in emerging countries, since these countries do not have the long-established financial institution infrastructure to deal with corporate governance issues. This paper discusses how emerging countries are dealing with corporate governance issues and the extra obstacles they have to overcome due to a lack of regulations. Romanian case study is examined.

  2. Place and Role of Corporate Governance in Japan

    OpenAIRE

    Feddaoui Amina

    2017-01-01

    In a broad sense, corporate governance covers the organization of the control and management. The term is also used in a narrower sense, to refer to the relationship between shareholders, and the company’s board. There are a lot of discussions devoted to the understanding of the corporate governance role and its principles. In this paper, we are going to describe the definition of corporate governance as a control system and its principles, and find the role of corporate governance and its pi...

  3. Corporate Governance Characteristics as a Stimulus to Tax Management

    Directory of Open Access Journals (Sweden)

    Antônio Paulo Machado Gomes

    2016-01-01

    Full Text Available This article aimed to investigate whether corporate governance uses tax management to increase companies' performance. The objective was checking whether corporate governance characteristics, such as remuneration paid to the executive board, segregation between Chairman and CEO, and the independence and composition of the Board of Directors, influence tax management in Brazilian companies. At the same time, it aimed to identify whether the preceding tax management is reflected on the subsequent tax management. To do this, a sample of 355 Brazilian companies listed on the BM&FBOVESPA between 2008 and 2014 was used, in order to find out whether their corporate governance characteristics influenced tax management, something identified by calculating ETR, CashETR, and BTD. As a result, it was found (i that the remuneration paid to executives may be regarded as a characteristic influencing tax management in Brazilian firms, and (ii that the preceding tax management influences the future tax management. In addition, it was found that Brazilian companies do not rule out tax management benefits, since the average effective rate in the sample under analysis was 25%, and it is statistically lower than the nominal rate of taxes on earnings in Brazil, which is 34%.

  4. Implikasi Corporate Governance terhadap Kinerja Family Business di Indonesia

    Directory of Open Access Journals (Sweden)

    Iskandar Itan

    2017-02-01

    Full Text Available Penelitian ini melihat hubungan antara corporate governance quality dan kinerja pada perusahaan keluarga di Indonesia. Penelitian ini dilakukan pada 126 perusahaan yang terdaftar di Bursa Efek Indonesia untuk periode 2008 sampai 2012 dengan menggunakan analisis regresi berganda. Dalam penelitian ini, corporate governance quality di proksikan dengan corporate governance process dan corporate governance mechanism, sedangkan kinerja perusahaan diukur dengan ROA dan Tobin’s Q. Corporate governace process terdiri dari variabel hak-hak pemegang saham, perlakuan yang adil terhadap pemegang saham, peran pemangku kepentingan, pengungkapan dan transparansi, dan tanggung jawab dewan. Sedangkan variabel corporate governance mechanism adalah ukuran dewan direksi, komisaris independen, kepemilikan manajerial, dan kepemilikan asing. Hasil analisis menunjukkan bahwa variabel hak-hak pemegang saham, perlakuan yang adil terhadap pemegang saham, ukuran dewan direksi, kepemilikan manajerial, dan kepemilikan asing mempunyai pengaruh signifikan terhadap kinerja perusahaan yang diukur dengan ROA. Sementara itu, variabel pengungkapan dan transparansi, tanggung jawab dewan, dan ukuran dewan direksi berpengaruh terhadap Tobin’s Q.Kata kunci:  Mekanisme corporate governance; corporate governance process kinerja perusahaanThis paper explores the relationship between corporate governance quality and firm performance of family business in Indonesia. This study covers the period of 2008 to 2012 and 126 listed family companies from Indonesia Stock Exchange are included has been examined by using multiple regression analysis. In this study, corporate governance quality is proxied by corporate governance process and corporate governance mechanism, while performance is measured by return on assets (ROA and Tobin‘s Q. Measures of corporate governance process employed are rights of shareholders, equitable treatment of shareholders, role of stakeholders, disclosure and

  5. Some issues in ownership structure and corporate governance

    Directory of Open Access Journals (Sweden)

    K.A. Darshana Lakmal

    2014-10-01

    Full Text Available Corporate governance is a process that aims to allocate corporate resources in a manner that maximizes value for all stakeholders — shareholders, investors, employees, customers, suppliers, environment and the community at large and holds those at the helms to account by evaluating their decisions on transparency, inclusivity, equity and responsibility. Corporate governance has been commonly defined as the rules and procedures in place for governing an organization. It is the set of processes, customs, policies, laws, and institutions affecting the way a corporation (or company is directed, administered or controlled. Corporate governance also includes the relationships among the many stakeholders involved and the goals for which the corporation is governed. Corporate governance principles and codes have been developed in different countries and issued from stock exchanges, corporations, institutional investors, or associations (institutes of directors and managers with the support of governments and international organizations. As a rule, compliance with these governance recommendations is not mandated by law, although the codes linked to stock exchange listing requirements may have a coercive effect. However, given the rapid developments within the field and the increasing prominence of corporate governance in the modern world, this definition may be considered too narrow. Corporate governance, while a topic that has been examined in considerable depth in many areas, is widely applicable to a vast array of topics and issues. This study contributes to the literature by extending the mainly based on board literature to where there are important institutional differences and issues in ownership structure and corporate governance system and seeks to address new and emerging issues which have yet to be closely examined and have, to a degree, been overlooked

  6. Corporate Governance Quality and Earnings Management: Evidence from Jordan

    Directory of Open Access Journals (Sweden)

    Sinan S. Abbadi

    2016-06-01

    Full Text Available This paper investigates the effect of corporate governance quality on earnings management in Jordan. Using a panel data set of all industrial and service firms listed on Amman Stock Exchange (ASE during the period 2009-2013; this paper provides evidence that earnings management is affected negatively by corporate governance quality. In particular; the results show that earnings management is affected negatively by overall categories of governance index represented by board of director, board meeting, Audit and nomination and compensation committee. Furthermore, results suggest that corporate governance quality has increased over time. Thus, its ability to constrain earnings management has also increased. It is recommended to industrial and service companies to boost their compliance with corporate governance code to improve the integrity and reliability of financial reports. This paper fills a gap in the literature by providing evidence about the effect of corporate governance quality on earnings management in Jordan as an emerging economy.

  7. The impact of corporate governance on IFRS adoption choices

    NARCIS (Netherlands)

    Verriest, A.J.M.; Gaeremynck, A.; Thornton, D.B.

    2013-01-01

    We investigate the association between corporate governance strength and EU listed firms' choices with respect to International Financial Reporting Standards (IFRS) adoption in 2005. We measure governance strength by aggregating variables such as board independence, board functioning and audit

  8. Corporate Governance and Firm Value: Empirical Evidence in Malaysia

    OpenAIRE

    Tan, Mabel Yunn Ru

    2009-01-01

    Well governed firms have been noted to have higher firm performance. However, this is still an empirical question in the context of Malaysia. This paper aims to examine the effect of corporate governance practices on firm value among 151 public listed companies on Bursa Malaysia Main Board between 2006 and 2008. We use the overall governance practice scores (CGS) to measure the level of compliance carried out by the sample firms. The results find that better corporate governance is highly cor...

  9. A critical review of corporate governance reforms in Malaysia

    Directory of Open Access Journals (Sweden)

    Ahmad Al-Hiyari

    2017-03-01

    Full Text Available Following the East-Asian financial crisis in 1997 and the corporate accounting scandals, the shareholder’s confidence in the audited financial statements was adversely affected and regulators started to think seriously reforming the existing corporate governance practices. As a result, numerous initiatives were implemented to accelerate improvement of corporate governance practices. One of these initiatives was the Malaysian Code on Corporate Governance (MCCG. The code was derived from the approach applied by the British Hampel Committee, which attempt to mitigate the agency problem between corporate managers and outside owners. This study suggests that the British approach is unsuitable to Malaysian business environment. Particularly, the MCCG that had been lunched since 2011 ignore the uniqueness of Malaysia’s capital market, regulation environment and ownership structure. Therefore, the study recommends that policy makers and other regulators should consider the local business environment when establishing future code on corporate governance.

  10. Institutional aspects of corporate governance (publishing and printing industry

    Directory of Open Access Journals (Sweden)

    Malik Irina Petrovna

    2014-06-01

    Full Text Available An analysis of the fundamental principles of the corporate governance theory is carried out with substantiation of the use of institutional theory to ensure the effective development of the corporate sector of Ukrainian economy. The proposals on the allocation of corporate governance models on the example of publishing and printing industry are elaborated and institute of shareholder ownership was laid in the basis of construction. Institutional support at the macro-, meso-and micro-economic level is considered, that corresponds to the current state of Ukrainian economy and helps to improve the efficiency of corporate governance by domestic companies.

  11. Corporate governance in Vietnam : a system in transition

    OpenAIRE

    Hai, Bui Xuan

    2008-01-01

    This paper looks at the development of company law and corporate governance in Vietnam – a transitional economy in South East Asia. It argues that corporate governance is a newly introduced concept but has become increasingly important in Vietnam, especially by the introduction of the new company legislation in 2005.

  12. Corporate Governance: Can Universities Learn from the Private Sector?

    Science.gov (United States)

    Henze, Raphaela

    2010-01-01

    Corporate governance has several objectives: growth, transparency, leadership, social responsibility and trust, as well as the protection of shareholders and company assets. It also plays a key role in determining a company's control environment. In this article, the author takes a closer look at corporate governance in the private sector,…

  13. Toward a Behavioral Theory of Boards and Corporate Governance

    NARCIS (Netherlands)

    van Ees, Hans; Gabrielsson, Jonas; Huse, Morten; Gabrielson, J.

    Review A coherent alternative to an economic approach of corporate governance is missing. In this paper we take steps towards developing a behavioral theory of boards and corporate governance. Building upon concepts such as political bargaining, routinization of decision making, satisficing, and

  14. Corporate governance : What’s special about banks?

    NARCIS (Netherlands)

    Laeven, L.

    2013-01-01

    This review surveys the literature on the corporate governance of banks. Traditional corporate governance mechanisms, such as concentrated ownership and takeover threats, in principle, also apply to banks. However, banks have special traits and are heavily regulated, preventing natural forms of

  15. LITERATURE REVIEW ON CORPORATE GOVERNANCE - FIRM PERFORMANCE RELATIONSHIP

    Directory of Open Access Journals (Sweden)

    Pintea Mirela-Oana

    2015-07-01

    Full Text Available In the matter of corporate governance reforms, an important aspect is whether the implementation of corporate governance principles and codes has a positive impact on firm performance. The literature testing the relationship between different corporate governance mechanisms and firm performance is extensive. Over time, a lot of corporate governances mechanisms were studied in relation to firm performance and the most used are: CEO duality, board size, proportion of non- executive directors, board committees, ownership structure and concentration, managers’ compensation and incentives schemes. With time, different authors began to use more comprehensive measures for corporate governance rather than a single variable or a single governance mechanism, the so called corporate governance indexes. Regarding performance there are three main approaches to firm performance in social science research: research based on market prices, accounting ratios and total factor profitability.The most used performance measures are: Tobin’s Q, return on equity, return on asset and economic value added. In our paper, we present the studies undertaken since the 1990’s regarding the relationship between different mechanisms of corporate governance and firm performance and between corporate governance index and performance for both developed and developing countries around the world. Regarding the working tools used in this theoretical research we can mention the longitudinal method, by presenting the evolution in time of empirical studies on the research topic and the comparative method used in presenting the resulys of different studies mentioned in our paper. The results of the studies are inconclusive, some studies founded a strog positive relation, others founded a negative correlation between corporate governance and firm performance, while a third category of studies didn’t found any relationship at all. We used participative observation method by issuing

  16. CORPORATE GOVERNANCE IN MALAYSIA: THE EFFECT OF CORPORATE REFORMS AND STATE BUSINESS RELATION IN MALAYSIA

    Directory of Open Access Journals (Sweden)

    Nor Azizah Zainal Abidin

    2007-01-01

    Full Text Available The Asian Financial Crisis in 1997 not only introduced the term of corporate governance but also drew attention of the public about the weaknesses of Malaysian corporate governance practice. After 1998, Malaysian government decided to adopt corporate reform that could enhance the quality of good corporate management practice. Thisreform is clearly stated in the code and rules of corporate governance. The purpose of this research is to study the significance of implementing the code and rules of corporategovernance since the public already realize the close relationship between business and politics. Three companies were chosen as indicators for this study. As a result, it was found that companies which are involved in corporate malpractice but have goodrelationship with states will always be excluded from the legal corporate action.

  17. AUDIT REPORTING AND CORPORATE GOVERNANCE: LINKS AND IMPLICATIONS

    Directory of Open Access Journals (Sweden)

    George Silviu CORDOȘ

    2014-04-01

    Full Text Available Financial scandals of the last decade have had a negative effect upon the trust and perception of investors regarding auditor responsibility and their part in fraud and error detection. As a result of legal conditions and regulations, audit firms in some jurisdictions have recently started to compile transparency reports, which contain information regarding corporate governance compliance of audit firms. This study aims to investigate if corporate governance has a significant effect on audit reporting and audit quality. Thus, our starting point is the definition of corporate governance, with an emphasis on the transparency principle for efficient corporate governance. We aim to analyse how this principle influences the quality level of the audit report, through a qualitative study. Keeping in mind that corporate governance in audit firms is considered to have a noteworthy effect on audit quality, we expect to find that regulatory bodies expect more transparency from these firms, therefore increasing competitiveness among audit firms concerning audit quality.

  18. INTERNAL CONTROLS IN ENSURING GOOD CORPORATE GOVERNANCE IN FINANCIAL INSTITUTIONS

    Directory of Open Access Journals (Sweden)

    KOSMAS NJANIKE

    2011-01-01

    Full Text Available This paper assessed factors that influence the internal controls in ensuring good corporate governance in financial institutions in developing economies with special reference to Zimbabwe. The research paper assessed how lack of internal controls affected good corporate governance and aimed to bring out elements of good corporate governance. It emerged that failure to effectively implement internal controls contributed significantly to poor corporate governance. The study discovered that internal control system overrides and the issue of “fact cat” directors also contributed to poor corporate governance. The study recommended that there is need for the board of directors to guarantee an organizational structure that clearly defines management responsibilities, authority and reporting relationships. There is also need to ensure that delegated responsibilities are effectively carried out to ensure compliance with internal controls of the financial institution concerned.

  19. Corporate Governance and Financial Performance of Banks: Evidence from Nigeria

    Directory of Open Access Journals (Sweden)

    Ogege Samson

    2014-06-01

    Full Text Available Banks are the backbones of any economy therefore it is of immense importance for economies to possess a healthy and buoyant banking system with effective corporate governance practices. In Nigeria, the Central Bank replaced the past governance codes with the CBN code (2012. Therefore this study examines corporate governance and financial performance in Nigerian banks, using this new code. The main issues in this study are: what is the relationship between board size and financial performance of banks in Nigeria? What is the effect of the proportion of non- executive directors on the financial performance of banks in Nigeria? To what extent is the corporate governance disclosure of banks in Nigeria in compliance to CBN governance code (2012? Does a relationship actually exist between banks that disclose on corporate governance and their financial performance in Nigeria? These questions were answered by examining the yearly-published reports of the listed banks in Nigeria. In examining whether or not there is a relationship between corporate governance and the financial performance of the banks, this research employed the regression analysis method to determine the relationship. However, the variables that were employed for corporate governance are: board size, board composition (the ratio of non-executive directors to total directors, and corporate governance disclosure index. Variables used in this study for examining the financial performance of these banks were the financial accountant measure for performance.

  20. Corporate Governance and Financial Performance of Banks: Evidence from Nigeria

    Directory of Open Access Journals (Sweden)

    Ogege S.

    2014-06-01

    Full Text Available Banks are the backbones of any economy therefore it is of immense importance for economies to possess a healthy and buoyant banking system with effective corporate governance practices. In Nigeria, the Central Bank replaced the past governance codes with the CBN code (2012. Therefore this study examines corporate governance and financial performance in Nigerian banks, using this new code. The main issues in this study are: what is the relationship between board size and financial performance of banks in Nigeria? What is the effect of the proportion of non- executive directors on the financial performance of banks in Nigeria? To what extent is the corporate governance disclosure of banks in Nigeria in compliance to CBN governance code (2012? Does a relationship actually exist between banks that disclose on corporate governance and their financial performance in Nigeria? These questions were answered by examining the yearly published reports of the listed banks in Nigeria. In examining whether or not there is a relationship between corporate governance and the financial performance of the banks, this research employed the regression analysis method to determine the relationship. However, the variables that was employed for corporate governance are: board size, board composition (the ratio of non-executive directors to total directors, and corporate governance disclosure index. Variables used in this study for examining the financial performance of these banks were the financial accountant measure for performance. These measures are return on equity (ROE and return on asset (ROA. In examining the level of compliance of the banks in this study to the CBN (2012 governance code, the research employed the content analysis method. Employing the content analysis, a disclosure index was formed and the annual report for each bank was examined using the CBN code of corporate governance (2012 as a guide. The results of the study showed that a positive

  1. Corporate Governance and Financial Performance of Banks: Evidence from Nigeria

    Directory of Open Access Journals (Sweden)

    Ogege Samson

    2014-04-01

    Full Text Available Banks are the backbones of any economy therefore it is of immense importance for economies to possess a healthy and buoyant banking system with effective corporate governance practices. In Nigeria, the Central Bank replaced the past governance codes with the CBN code (2012. Therefore this study examines corporate governance and financial performance in Nigerian banks, using this new code. The main issues in this study are: what is the relationship between board size and financial performance of banks in Nigeria? What is the effect of the proportion of non- executive directors on the financial performance of banks in Nigeria? To what extent is the corporate governance disclosure of banks in Nigeria in compliance to CBN governance code (2012? Does a relationship actually exist between banks that disclose on corporate governance and their financial performance in Nigeria? These questions were answered by examining the yearly-published reports of the listed banks in Nigeria. In examining whether or not there is a relationship between corporate governance and the financial performance of the banks, this research employed the regression analysis method to determine the relationship. However, the variables that were employed for corporate governance are: board size, board composition (the ratio of non-executive directors to total directors, and corporate governance disclosure index. Variables used in this study for examining the financial performance of these banks were the financial accountant measure for performance. These measures are return on equity (ROE and return on asset (ROA. In examining the level of compliance of the banks in this study to the CBN (2012 governance code, the research employed the content analysis method. Employing the content analysis, a disclosure index was formed and the annual report for each bank was examined using the CBN code of corporate governance (2012 as a guide. The results of the study showed that a positive

  2. The Institutional Investors and Corporate Governance

    Directory of Open Access Journals (Sweden)

    Niculae Feleaga

    2006-10-01

    Full Text Available The years between 1990-2000 represented the rising power period for the institutional investors, especially within the developed countries. In the Anglo-Saxon environment, such a growth significantly modified the structure of companies’ shareholder frameworks. The development and the institutionalization of the stock exchange market determined the companies’ bonds to be more concentrated within the hands of the financial institutions, which have a superior economic expertise, rather than do the natural persons when saving. In order to diminish the informational lack of symmetry, between the company’s leaders and its shareholders, and for influencing the leaders in managing the enterprise – with the purpose of maximizing value – some institutional investors tried to implement an external control system. Therefore, they formulated new corporate governance procedures. The development of the institutional investors is part of a reform movement targeted towards the macro-financial environment. That is why, two important elements deserve to be mentioned: the households’ financial patrimonies and the structure of the financing frameworks. The institutional investors are essentially the mutual funds, the insurance companies and the pension funds, and therefore they manage considerable amounts of capital (in thousands of billions of dollars within the assembly of OCDE countries.

  3. The Institutional Investors and Corporate Governance

    Directory of Open Access Journals (Sweden)

    Niculae Feleaga

    2006-12-01

    Full Text Available The years between 1990-2000 represented the rising power period for the institutional investors, especially within the developed countries. In the Anglo-Saxon environment, such a growth significantly modified the structure of companies’ shareholder frameworks. The development and the institutionalization of the stock exchange market determined the companies’ bonds to be more concentrated within the hands of the financial institutions, which have a superior economic expertise, rather than do the natural persons when saving. In order to diminish the informational lack of symmetry, between the company’s leaders and its shareholders, and for influencing the leaders in managing the enterprise – with the purpose of maximizing value – some institutional investors tried to implement an external control system. Therefore, they formulated new corporate governance procedures. The development of the institutional investors is part of a reform movement targeted towards the macro-financial environment. That is why, two important elements deserve to be mentioned: the households’ financial patrimonies and the structure of the financing frameworks. The institutional investors are essentially the mutual funds, the insurance companies and the pension funds, and therefore they manage considerable amounts of capital (in thousands of billions of dollars within the assembly of OCDE countries.

  4. THE IMPLEMENTATION OF CORPORATE GOVERNANCE INTO BRAND MANAGEMENT

    Directory of Open Access Journals (Sweden)

    Claudia- Cristina PLOSCARU

    2014-11-01

    Full Text Available Integrating corporate governance into brand management is fundamental for protecting shareholders, considering the increasing importance of brands in firms’ performance and the dissociation between shareholders and managers in most large and medium firms. This paper designs a corporate governance system model on a brand level, which takes into account preventive, simultaneous and retroactive governance. Moreover, we highlight the importance of transition management when changes to brand management come into question. Finally, we propose six corporate governance instruments for brand management: performance indicators, the brand marketing plan, periodic reports, the brand council, brand audit, and transition management.

  5. Measuring Corporate Sustainability and Environmental, Social, and Corporate Governance Value Added

    Directory of Open Access Journals (Sweden)

    Alena Kocmanová

    2016-09-01

    Full Text Available The aim of the paper is to propose a model for measuring sustainable value which would complexly assess environmental, social, and corporate governance contribution to value creation. In the paper the concept of the Sustainable Environmental, Social and Corporate Governance Value Added is presented. The Sustainable Environmental, Social and Corporate Governance Value Added is based on the Sustainable Value Added model and combines weighted environmental, social, and corporate governance indicators with their benchmarks determined by Data Envelopment Analysis. Benchmark values of indicators were set for each company separately and determine the optimal combination of environmental, social, and corporate governance inputs to economic outcomes. The Sustainable Environmental, Social and Corporate Governance Value Added methodology is applied on real-life corporate data and presented through a case study. The value added of most of the selected companies was negative, even though economic indicators of all of them are positive. The Sustainable Environmental, Social and Corporate Governance Value Added is intended to help owners, investors, and other stakeholders in their decision-making and sustainability assessment. The use of environmental, social, and corporate governance factors helps identify the company’s strengths and weaknesses, and provides a more sophisticated insight into it than the one-dimensional methods based on economic performance alone.

  6. CORPORATE GOVERNANCE IN ROMANIAN ENTERPRISES: FEATURES, DIMENSIONS AND LIMITS

    Directory of Open Access Journals (Sweden)

    Victoria FIRESCU

    2013-10-01

    Full Text Available The paper aims to determine the level of voluntary disclosure of relevant information in accordance with the corporate governance code by Romanian companies listed on the stock exchange. Study methodology is based on both fundamental research on corporate governance theory and the empirical study on critical analysis of the principles of corporate governancedisclosure in annual reports of 20 listed companies BVB The results of the empirical study confirm that the executive management of the majority of Romanian listed companies do not realize the benefits of corporate governance and consequently ignores the relevant disclosure on its basic principles. This paper can be a useful material for other future studies on the measurement of corporate governance practice Romanian companies.

  7. Corporate and philanthropic models of hospital governance: a taxonomic evaluation.

    Science.gov (United States)

    Weiner, B J; Alexander, J A

    1993-08-01

    We assess the theoretical integrity and practical utility of the corporate-philanthropic governance typology frequently invoked in debates about the appropriate form of governance for nonprofit hospitals operating in increasingly competitive health care environments. Data were obtained from a 1985 national mailed survey of nonprofit hospitals conducted by the American Hospital Association (AHA) and the Hospital Research and Educational Trust (HRET). A sample 1,577 nonprofit community hospitals were selected for study. Representativeness was assessed by comparing the sample with the population of non-profit community hospitals on the dimensions of bed size, ownership type, urban-rural location, multihospital system membership, and census region. Measurement of governance types was based on hospital governance attributes conforming to those cited in the literature as distinguishing corporate from philanthropic models and classified into six central dimensions of governance: (1) size, (2) committee structure and activity, (3) board member selection, (4) board composition, (5) CEO power and influence, and (6) bylaws and activities. Cluster analysis and ANCOVA indicated that hospital board forms adhered only partially to corporate and philanthropic governance models. Further, board forms varied systematically by specific organizational and environmental conditions. Boards exhibiting more corporate governance forms were more likely to be large, privately owned, urban, and operating in competitive markets than were hospitals showing more philanthropic governance forms. Findings suggest that the corporate-philanthropic governance distinction must be seen as an ideal rather than an actual depiction of hospital governance forms. Implications for health care governance are discussed.

  8. A Convergence of Corporate and Academic Governance

    Science.gov (United States)

    Gee, Gordon

    2006-01-01

    One of the particular gifts in history for the present generation, is the increasingly large opportunity afforded to universities and corporations to be mutually supportive, not exploitative, of one another. As the federal Sarbanes-Oxley Act of 2002 has imposed new challenges on management of all stripes, this anti-corporate-fraud law also has…

  9. Corporate governance in a networked age

    NARCIS (Netherlands)

    Vermeulen, Erik

    2015-01-01

    In a networked and digital age, we need to rethink the structure of the modern corporation. In order to survive and grow, corporations must operate with a new set of assumptions and principles in order to remain relevant, competitive, and successful. Consider the growing number of technology startup

  10. Corporate Governance as a Crucial Factor in Achieving Sustainable Corporate Performance

    Directory of Open Access Journals (Sweden)

    Julija Bistrova

    2014-06-01

    Full Text Available In the developed stock markets the corporate governance aspect is crucial in the stock portfolio selection process for investor seeking to achieve shareholder value sustainability. In the emerging markets the importance of the corporate governance role just starts to be realized by the investors and by the corporate managers. The present research, looking at the stock performance leaders and laggards, analyzes whether the corporate governance system matters to achieve long-term shareholder value within the Central and Eastern European stock markets universe. Corporate governance quality was assessed and compared among the out- and underperformers. The financial results plausibility and the ownership structure were considered as well. Additionally, the authors analyzed whether the quality of corporate governance influences the economic performance of the company. The obtained results provide the proof that the corporate governance does matter as the market outperformers have above average corporate governance quality and provide trustworthy financial results more often than the underperforming companies. Besides, well-governed companies are also able to deliver more attractive financial results.

  11. Modes of Thinking in Corporate Governance: In Search of Root Causes of Governance Malfunctioning

    OpenAIRE

    Sun, WX

    2015-01-01

    This paper argues that the current two prevailing modes of thinking in corporate governance, the inward-looking and outward-looking modes of thinking, severely limit and constrain our understandings of corporate governance systems and problems and are thus unable to properly diagnose and rectify corporate governance defects and malfunctions in practice. The paper presents a new mode of thinking, i.e., the critically reflexive mode of thinking, to overcome the limitations of current modes of t...

  12. Core corporate governance dilemmas facing boards: a South African perspective

    Directory of Open Access Journals (Sweden)

    Hyram Serretta

    2011-08-01

    Full Text Available Directors and boards face many challenges in terms of managing complexity. A key factor of success in practicing good corporate governance is the board’s ability to cope with paradox. The purpose of this research has been to explore the core corporate governance dilemmas facing boards. The investigation was qualitative in nature using the Delphi technique. Six core corporate governance dilemmas facing board members were identified one of which is not mentioned in the international literature. The findings should provide directors with an ability to identify the nature of the paradoxes they need to respond to.

  13. TELAAH ENTERPRISE RISK MANAGEMENT MELALUI CORPORATE GOVERNANCE DAN KONSENTRASI KEPEMILIKAN

    Directory of Open Access Journals (Sweden)

    Daniel T H Manurung

    2016-12-01

    Full Text Available Abstract: Assessing Enterprise Risk Management through Corporate Governance and Ownership Concentration. The purpose of this research is to determine the influence of corporate governance and concentrated of ownership with enterprise risk management. This research uses multiple regression analysis as a testing tool. The sample that is used in this study is 50 manufacturing companies which is listed in the Indonesia Stock Exchange. The year that is used as the basis of sampling is 2013-2014. The result of this reseacrh is a significant effect on corporate governance in Enterprise risk management. While, variable of concentration of ownership has no significant influence in enterprise risk management.

  14. Mekanisme Corporate Governance dan Kecurangan Laporan Keuangan [Mechanisms of Corporate Governance and Financial Statement Fraud

    Directory of Open Access Journals (Sweden)

    Fitri Ismiyanti

    2015-09-01

    Full Text Available The purpose of this research is to examine factors that may affect fraud on financial statements that could encourage the emergence of corruption by management. This research uses banks as an industry sample because the banking industry is highly regulated and should report their financial statement to a central bank. Meanwhile, banks still frequently have fraudulent financial statements. Good corporate governance mechanisms indicated that banks have the capability to detect fraud in financial statements. This research focuses on testing factors that may affect the financial statements fraud which lead to the corruption of management. The data used in this research is financial statement data. Corporate governance mechanisms tested in this study are the number of commissioners, percentage of independent directors, number of commissioners meeting, percentage of largest share ownership, managerial ownership, long tenure of commissioners, and type of auditor. This research found that the number of commissioners and managerial ownership affects management's fraud, while the number of independent directors, the number of commissioners meeting, a long tenure managing director, large share ownership, and the type of auditor has no effect on fraud.

  15. Pathological corporate governance deficiencies in South Africa's ...

    African Journals Online (AJOL)

    Potchefstroom Electronic Law Journal/Potchefstroomse Elektroniese Regsblad ... African Broadcasting Corporation (SABC) has recently seen the resignation of board members, shareholder interference in its operational affairs, and a high turnover of chief accounting officers and other executive management members.

  16. Sustainability and Convergence: The Future of Corporate Governance Systems?

    Directory of Open Access Journals (Sweden)

    Daniela M. Salvioni

    2016-11-01

    Full Text Available In today’s world, a sustainable approach to corporate governance can be a source of competitive advantage and a long-term success factor for any firm. Sustainable governance requires that the board of directors considers economic, social and environmental expectations in an integrated way, no matter what ownership structure and formal rules of corporate governance apply to the company: this mitigates the traditional differences between insider and outsider systems of corporate governance. Previous studies failed to consider the contribution of sustainability in the process of corporate governance convergence. Therefore, the aim of this article is to fill the gap in the existing literature by means of a qualitative analysis, supporting the international debate about convergence of corporate governance systems. The article describes the evolution of outsider and insider systems in the light of the increasing importance of sustainability in the board’s decision-making and firm’s operation to satisfy the needs of all the company’s stakeholders. According to this, a qualitative content analysis developed with a directed approach completes the theoretical discussion, demonstrating that sustainability can bring de facto convergence between outsider and insider corporate governance systems. The article aims to be a theoretical starting point for future research, the findings of which could also have practical implications: the study encourages the policy makers to translate the sustainable business best practices into laws and recommendations, strengthening the mutual influence between formal and substantial convergence.

  17. From Takeoff to Landing in Accrediting Corporate Governance Training Programs

    OpenAIRE

    Husseiny, Yehia El

    2009-01-01

    Most of the Organization for Economic Cooperation and Development (OECD) member countries has training institutions that offer corporate governance courses and programs for directors (e.g., the Institute of Directors in the United Kingdom, and the National Association of Corporate Directors in the United States) that have received independent accreditation. There is a high demand among cor...

  18. the role of corporate governance and strategic leadership practices

    African Journals Online (AJOL)

    The success or failure of any organization rests on its leadership. In the 21st century, corporate governance is becoming a matter of enormous public attention and concern. With regard to policy and regulatory changes that have taken place in the stock market, more emphasis has been put on the need to improve corporate ...

  19. Corporate Governance and Bank Insolvency Risk : International Evidence

    NARCIS (Netherlands)

    Anginer, D.; Demirguc-Kunt, Asli; Huizinga, H.P.; Ma, K.

    2014-01-01

    This paper finds that shareholder-friendly corporate governance is positively associated with bank insolvency risk, as proxied by the Z-score and the Merton’s distance to default measure, for an international sample of banks over the 2004-2008 period. Banks are special in that ‘good’ corporate

  20. Corporate Governance and Bank Insolvency Risk : International Evidence

    NARCIS (Netherlands)

    Anginer, D.; Demirguc-Kunt, A.; Huizinga, H.P.; Ma, K.

    This paper finds that shareholder-friendly corporate governance is positively associated with bank insolvency risk, as proxied by the Z-score and the Merton’s distance to default measure, for an international sample of banks over the 2004-2008 period. Banks are special in that ‘good’ corporate

  1. Corporate Governance in the Nigerian Banking Industry: Issues and ...

    African Journals Online (AJOL)

    Therefore, one way to assure investors across the globe that their investments are safe is by putting in place good corporate governance. That is, ensuring that business operations are carried out transparently and internal controls are adhered to. The corporate scandals experienced at the turn of this century across the ...

  2. Corporate Governance and Acquisitions: Acquirer Wealth Effects in the Netherlands

    NARCIS (Netherlands)

    A. de Jong (Abe); A.M. van der Poel (Marieke); M. Wolfswinkel (Michiel)

    2007-01-01

    textabstractWe examine 865 acquisitions by Dutch industrial firms over the period 1993–2004. Theoretical work based on principal–agent problems predicts that managers of exchange-listed corporations may pursue acquisitions even when these do not add value for the shareholders. Corporate governance

  3. Overview of corporate governance in Ethiopia: The role, composition ...

    African Journals Online (AJOL)

    It argues that there is a need to distinguish between corporate governance and corporate management in Ethiopian company law, and that the board should be suitably composed of non-executive and truly independent members who should be professionally competent. Furthermore, directors' remuneration should be ...

  4. Perspectives of Corporate Governance in Croatian Banking Sector

    Directory of Open Access Journals (Sweden)

    Tea Golja

    2011-01-01

    Full Text Available Financial market of any country firstly has to be “secure”, but although financial market is regulated and monitored, we were witnesses of bad examples (Island. So, globally all aspects of corporate governance became interesting: ownership; nature of activities; liquidity ratios, etc. The goal of this paper is to give perspectives of corporate governance in Croatian banking sector. The results of the research conducted in October 2010 are presented. The situation regarding corporate governance issues in banks is highlighted. According to the research in Croatian banks in the future corporate governance should give more attention to responsiveness; equity; efficiency and effectiveness; and on accountability. Mentioned principles are not clearly defined and recognizable. These will assure differentiation on market and trust of all stakeholders.

  5. Is COSO enough from a Corporate Governance Perspective

    DEFF Research Database (Denmark)

    Laursen, Peter Birkholm; Holm, Claus

    This paper addresses the internal control issue from a Corporate Governance perspective. The increased focus on risk management as an ongoing business process may be changing the view on internal control. The different interest groups identified by the Corporate Governance perspective might have...... maintain to serve their self-interests in determining their own responsibilities. The analysis demonstrates that the increased focus on risk management is a logical step, which, in turn, might have different implications for the individual parties involved in the process of Corporate Governance. Based...... on the great interest for Corporate Governance, risk management, and internal control, the paper finally consider the question whether it is time to develop a holistic conceptual framework or mega framework which integrates these elements....

  6. Corporate governance implications from the 2008 financial crisis

    Directory of Open Access Journals (Sweden)

    Hugh Grove

    2012-03-01

    Full Text Available The importance of structural corporate governance factors identified by the New York Stock Exchange’s 2010 Commission on Corporate Governance was reaffirmed here with various empirical and forensic studies. The key, recurring structural factors were all-powerful CEO (the duality factor and related Board independence issues, weak system of management control, focus on short term performance goals (and related executive compensation packages, weak code of ethics, and opaque disclosures. Such weak corporate governance factors were key contributors to both fraudulent financial reporting and excessive risk-taking which facilitated the U.S. financial crisis in 2008. Corporate governance listing requirements by major stock exchanges around the world will help mitigate such problems from recurring in the future.

  7. Legal Aspects of Corporate Governance in Albania: A critical approach

    OpenAIRE

    Mirela Fana

    2015-01-01

    The academic debate on legal aspects of corporate governance, be it at national or international level, has strongly intensified especially during the last two decades. Such tendency has also influenced the relevant Albanian legal framework, as it is evidenced by the most recent amendments on the Law “On Entrepreneurs and Commercial Companies” of 2014. This article focuses exactly on an analyses of the legal and quasi-legal norms of corporate governance in Albania (IFC principles), providing ...

  8. Audit mode change, corporate governance and audit effort

    OpenAIRE

    Cao, Limei; Li, Wanfu; Zhang, Limin

    2015-01-01

    This study investigates changes in audit strategy in China following the introduction of risk-based auditing standards rather than an internal control-based audit mode. Specifically, we examine whether auditors are implementing the risk-based audit mode to evaluate corporate governance before distributing audit resources. The results show that under the internal control-based audit mode, the relationship between audit effort and corporate governance was weak. However, implementation of the ri...

  9. Does Corporate Social Responsibility Shape the Relationship between Corporate Governance and Financial Performance?

    Directory of Open Access Journals (Sweden)

    Jaja Suteja

    2017-12-01

    Full Text Available The correlation between theoretical and empirical of corporate governance (CG and corporate financial performance (CFP is not there without controversy. This paper aims to determine the moderating effects of corporate social responsibility (CSR, on the relationship between corporate governance and corporate financial performance. The sample of this research are banking companies that are listed on Indonesia Stock Exchange between the period of 2010-2014, taken by using purposive sampling method. Moderated Regression Analysis (MRA analysis was used in this study. The results of this study indicate that corporate governance affects the company's financial performance positively. Aspects of corporate governance such as audit committees and number of board meetings have a positive relationship with financial performance, but there is no relationship from the aspect of independent board of commissioners. Furthermore, CSR can only strengthen the positive relationship between the number of board of commissioners’ meetings and the financial performance of the company. The frequency intensity of board of commissioners’ meetings can increasingly address corporate governance reforms by improving and realizing social responsibility as part of sustainability innovation by optimizing media and CSR reporting methods.

  10. Good Governance Tools: Cross-Pollination from Nordic Corporate Law

    Directory of Open Access Journals (Sweden)

    Lena Schøning

    2017-11-01

    Full Text Available This article aims to analyze the extent to which good governance principles applicable to Nordic companies may be an appropriate good governance tool for a public or organizational entity.The company is an advanced organizational invention for its purpose, and Nordic companies are generally regarded as highly productive and well run. Nordic companies approached as small-scale units of governance are therefore analyzed in this article as examples of the implementation of good governance principles and practices. In Nordic corporate law, a set of self-regulatory norms are a prominent part of what constitutes good corporate governance. The principles underlying these self-regulatory norms are scrutinized in this article, and the Norwegian Code of Practice for Corporate Governance is at the heart of the analysis. The norms are generally detailed and operationalized, and as such they may serve as examples of how concerns, such as accountability, transparency, predictability, conflicting interests and loyalty, clarity and equality, are put into practice. The norms also advocate value and standard setting. Although there are significant differences between the corporate sphere and the public or organizational sphere, the similarities are in many ways greater, and corporate norms may serve as good governance tools when scaled up to other issue domains or levels as done in this article.

  11. Corporate Accounting Rating and Its Practice in Publicly - Held Companies

    Directory of Open Access Journals (Sweden)

    Şerafettin Sevim

    2014-06-01

    Full Text Available Corporate Governance and its rating in publicly held companies has become a subject matter of both competition and prestige. Since the regulations introduced in the Turkish Commercial Code, have been prepared with the philosophy of the corporatization of all the firms, Corporate Governance shall become one of the most significant issues of the recent years. The capability of the implementation of corporate governance by the firms depend on the institutionalization of the accounting system. The object of this review is to enable Corporate Accounting Rating and to provide guiding suggestions to those companies who wish to achieve high grades in Corporate Accounting Rating regarding the accounting systems. The institutionalization of the accounting system required the following actions: The organization of the accounting systems of the firms should be realized in an effective manner,  An accounting manual should be prepared and released in the form of a book,  Ethi cal codes should be developed and should be applied on the decision making processes of the companies,  The policies concerning knowledge explanation should be prepared in a manner that enables access to accurate and reliable information,  The information technologies should be designed in an updated manner that will facilitate access to internet sites and to the available knowledge.  Committees should be established not only for compulsory auditing, but also for internal audit processes

  12. Influences on corporate executive decision behavior in government acquisitions

    Science.gov (United States)

    Wetherington, J. R.

    1986-01-01

    This paper presents extensive exploratory research which had as its primary objective, the discovery and determination of major areas of concern exhibited by U.S. corporate executives in the preparation and submittal of proposals and bids to the Federal government. The existence of numerous unique concerns inherent in corporate strategies within the government market environment was established. A determination of the relationship of these concerns to each other was accomplished utilizing statistical factor analysis techniques resulting in the identification of major groupings of management concerns. Finally, using analysis of variance, an analysis and discovery of the interrelationship of the factors to corporate demographics was accomplished. The existence of separate and distinct concerns exhibited by corporate executives when contemplating sales and operations in the government marketplace was established. It was also demonstrated that quantifiable relationships exist between such variables and that the decision behavior exhibited by the responsible executives has an interrelationship to their company's demographics.

  13. Legal Aspects of Corporate Governance in Albania: A critical approach

    Directory of Open Access Journals (Sweden)

    Mirela Fana

    2015-11-01

    Full Text Available The academic debate on legal aspects of corporate governance, be it at national or international level, has strongly intensified especially during the last two decades. Such tendency has also influenced the relevant Albanian legal framework, as it is evidenced by the most recent amendments on the Law “On Entrepreneurs and Commercial Companies” of 2014. This article focuses exactly on an analyses of the legal and quasi-legal norms of corporate governance in Albania (IFC principles, providing a comparison between the latter and the European Union norms or other internationally recognized principles of good corporate governance, such as the OECD principles. Main objective of this article is to provide a critical analyses of legal rules on two main components of corporate governance, namely shareholder rights and stakeholder protection in a corporation, identifying in this way, when relevant, the necessity for reforming commercial norms. Lastly, from a methodological point of view, the article employs the functional interpretative method of legal norms, critical analyses of relevant case law and when it comes to the comparison between the national and supra-national approaches to corporate governance; it uses the functional comparative method.

  14. China’s Insurance Regulatory Reform, Corporate Governance Behavior and Insurers’ Governance Effectiveness

    Science.gov (United States)

    Zhang, Hongliang; Qiu, Aichao

    2017-01-01

    External regulation is an important mechanism to improve corporate behavior in emerging markets. China’s insurance governance regulation, which began to supervise and guide insurance corporate governance behavior in 2006, has experienced a complex process of reform. This study tested our hypotheses with a sample of 85 firms during 2010–2011, which was obtained by providing a questionnaire to all of China’s shareholding insurance companies. The empirical study results generally show that China’s insurance governance effectiveness has significantly improved through strict regulation. Insurance corporate governance can improve business acumen and risk-control ability, but no significant evidence was found to prove its influence on profitability, as a result of focusing less attention on governance than on management. State ownership is associated with higher corporate governance effectiveness than non-state ownership. Listed companies tend to outperform non-listed firms, and life insurance corporate governance is more effective than that of property insurers. This study not only contributes to the comprehensive understanding of corporate governance effectiveness but also to the literature by highlighting the effect of corporate governance regulation in China’s insurance industry and other emerging economies of the financial sector. PMID:29039781

  15. China’s Insurance Regulatory Reform, Corporate Governance Behavior and Insurers’ Governance Effectiveness

    Directory of Open Access Journals (Sweden)

    Huicong Li

    2017-10-01

    Full Text Available External regulation is an important mechanism to improve corporate behavior in emerging markets. China’s insurance governance regulation, which began to supervise and guide insurance corporate governance behavior in 2006, has experienced a complex process of reform. This study tested our hypotheses with a sample of 85 firms during 2010–2011, which was obtained by providing a questionnaire to all of China’s shareholding insurance companies. The empirical study results generally show that China’s insurance governance effectiveness has significantly improved through strict regulation. Insurance corporate governance can improve business acumen and risk-control ability, but no significant evidence was found to prove its influence on profitability, as a result of focusing less attention on governance than on management. State ownership is associated with higher corporate governance effectiveness than non-state ownership. Listed companies tend to outperform non-listed firms, and life insurance corporate governance is more effective than that of property insurers. This study not only contributes to the comprehensive understanding of corporate governance effectiveness but also to the literature by highlighting the effect of corporate governance regulation in China’s insurance industry and other emerging economies of the financial sector.

  16. China's Insurance Regulatory Reform, Corporate Governance Behavior and Insurers' Governance Effectiveness.

    Science.gov (United States)

    Li, Huicong; Zhang, Hongliang; Tsai, Sang-Bing; Qiu, Aichao

    2017-10-17

    External regulation is an important mechanism to improve corporate behavior in emerging markets. China's insurance governance regulation, which began to supervise and guide insurance corporate governance behavior in 2006, has experienced a complex process of reform. This study tested our hypotheses with a sample of 85 firms during 2010-2011, which was obtained by providing a questionnaire to all of China's shareholding insurance companies. The empirical study results generally show that China's insurance governance effectiveness has significantly improved through strict regulation. Insurance corporate governance can improve business acumen and risk-control ability, but no significant evidence was found to prove its influence on profitability, as a result of focusing less attention on governance than on management. State ownership is associated with higher corporate governance effectiveness than non-state ownership. Listed companies tend to outperform non-listed firms, and life insurance corporate governance is more effective than that of property insurers. This study not only contributes to the comprehensive understanding of corporate governance effectiveness but also to the literature by highlighting the effect of corporate governance regulation in China's insurance industry and other emerging economies of the financial sector.

  17. Corporate governance: challenges for banks in Nigeria | Ogbechie ...

    African Journals Online (AJOL)

    It explores the basis for good governance and how the boards of banks can be more effective, bearing in mind that the relationships between the board and management on the one hand, and between the board and shareholders on the other, are at the heart of the corporate governance triangle. NESG Economic Indicators ...

  18. Does Good Corporate Governance Lead to Stronger Productivity Growth?

    NARCIS (Netherlands)

    Koeke, J.; Renneboog, L.D.R.

    2002-01-01

    This study investigates the impact of corporate governance and product market competition on total factor productivity growth in Germany and the UK.For Germany, the prototype of a bank-based governance system, productivity grows faster in firms controlled by financial institutions (in particular,

  19. Corporate Governance and Pension Fund Performance

    Directory of Open Access Journals (Sweden)

    Oskar Kowalewski

    2012-03-01

    Full Text Available This study provides new evidence on the impact of governance on the performance of privately defined contribution pension plans. Using a hand collected data set on governance factors, the study shows that the external and internal governance mechanisms in pension plans are weak. One explanation for this weakness is the potential conflict between the pension beneficiaries and the fund’s owner, which depends on who bears the investment risk in the pension plan. Hence, different governance factors are found to be important for pension fund return on invested assets and also for its economic performance. Consequently, the overall policy conclusion is that more focus should be put on the governance of the pension funds, taking into account the different interests of the beneficiaries and owners as it may determine their performance.

  20. Corporate Governance and Financial Performance Nexus: Any Bidirectional Causality?

    Directory of Open Access Journals (Sweden)

    Alley Ibrahim S.

    2016-06-01

    Full Text Available Most studies on corporate governance recognize endogeneity in the nexus between corporate governance and financial performance. Little attention has, however, been paid to the direction of causality between the two phenomena, and hence the Vector Error Correction (VEC model, which allows for endogenous determination of the direction of causality, has not been widely employed. This study fills that gap by estimating the nexus and the direction of causality using the VEC model to analyze panel data on selected listed firms in Nigeria. The results agree with the findings of most previous studies that corporate governance significantly affects financial performance. Board skills, board composition and management skills enhanced financial performance indicators – return on equity (ROE, return on asset (ROA and net profit margin (NPM; in many occasions, significantly. Board size and audit committee size did not, and can actually undermine financial performance. More importantly, financial performance did not significantly affect corporate governance. On the basis of the lag structure of the VEC model, this study affirms unidirectional causality in the nexus, running from corporate governance to financial performance, nullifying the hypothesis of bidirectional causality in the nexus.

  1. THE CORPORATE GOVERNANCE IMPACT ON BANKING PERFORMANCE INCREASE

    Directory of Open Access Journals (Sweden)

    Mariana G. BUNEA

    2013-12-01

    Full Text Available The Gradual collapse of financial markets in the European Union since the fall of 2008 and economic crises at the credits portfolio level that followed, were generated by the several factors, often interdependent, both macroeconomic and microeconomic level, finally leading to the accumulation of excessive risk in the financial system. This excessive risk was partially caused by the deficiencies in Corporate Governance of the Financial Institutions and the especially banks deficiencies. Even if we can’t put down to the Corporate Governance crisis started, yet nonexistent or inadequacy of effective control mechanisms have determined to the excessive risk-taking by most credit institutions. This article aims to evaluate the application of Corporate Governance principles of the significant players within the Romanian banking system. The research methodology was based essentially on the technique of using the questionnaire, on Corporate Governance documents remarks published on the banks analyzed websites and on the using scoring methods in evaluating the application of Corporate Governance principles.

  2. Adopting service governance governing portfolio value for sound corporate citzenship

    CERN Document Server

    AXELOS, AXELOS

    2015-01-01

    Adopting Service Governance provides a useful umbrella for a number of frameworks including ITIL®, TOGAF®, COBIT®, ITSM, BSM, Business Analysis, Programme Management, Management of Value, Management of Portfolios and Management of Risk by establishing the top-down governance of an organisation through services.

  3. CEOs Remuneration in Corporate Governance Codes in EU Member Countries

    OpenAIRE

    Urbanek, Piotr

    2009-01-01

    The purpose of the paper is to compare regulations in corporate governance codes in 27 EU countries concerning remuneration of top executives. It enables identifying two main mechanisms which are implemented in CG codes - market mechanism based on high level of remuneration transparency and hierarchical mechanism based on setting rules according to which corporate boards establish a formal procedure for fixing the remuneration packages of executives. The paper presents the discussion on deter...

  4. Analisis Pengaruh Islamic Corporate Governance Terhadap Corporate Social Responsibility (Studi kasus pada Bank Syariah di Indonesia

    Directory of Open Access Journals (Sweden)

    Ismawati Haribowo

    2016-01-01

    Full Text Available This study aims to examine the influence of Islamic corporate governance, size of the Board of Commissioners, the composition of the Board of Commissioners, Frequency of Meetings of the Board of Commissioners, the size of the Audit Committee Independent, The composition of the Audit Committee Number of Meetings Audit Committee, Profitability and Liquidity on the disclosure of corporate social responsibility (case study on the bank Sharia in Indonesia. This research is a quantitative study using scientific research in the form of positive economics. The nature and type of this research is descriptive method used is based on a survey of the literature. Data used is secondary data obtained from www.bi.go.id and corporate websites. The analytical method used is multiple linear regression analysis with SPSS version 22. The population in this study are all Islamic banks registered in Bank Indonesia during the period 2012 to 2014. While the sample is determined by using purposive sampling method in order to obtain a sample of 10 banks with observations for 3 years.Based on the results of multiple regression analysis with significance level of 5%, then the results of this study concluded: (1 Islamic Corporate Governance consisting of Existence and expertise Sharia Supervisory Board has no significant effect on the disclosure of corporate social responsibility. (2 The size of the BOC significant effect on the disclosure of corporate social responsibility. (3 The composition of the Board of Commissioners has no significant effect on the disclosure of corporate social responsibility. (4 The frequency of the number of board meetings no significant effect on the disclosure of disclosure of corporate social responsibility. (5 The size independent audit committee has no significant effect on the disclosure of corporate social responsibility. (6 The composition of the independent audit committee has no significant effect on the disclosure of corporate social

  5. Need to implement corporate governance in the Romanian companies

    Directory of Open Access Journals (Sweden)

    Sorin COSNEANU

    2013-04-01

    Full Text Available Under the background of the current economic realities, characterized by uncertainty and mistrust, of increased complexity of the environment in which they operate, the Romanian companies must demonstrate good organization, flexibility, skills, good risk management and be trustworthy economic and social partners. The answer to many of these challenges is provided by a modern management system, which makes proof of more convincing development possibilities, namely corporate governance.This article is an attempt to summarize the major theoretical and practical issues related to corporate governance models, as well as a vision of the need to apply this management system in the Romanian companies. At the same time, the paper will briefly present the current state of corporate governance system implementation in the Romanian companies.

  6. EFFECTS OF CORPORATE GOVERNANCE VARIABLES ON EARNINGS MANAGEMENT IN INDONESIA

    Directory of Open Access Journals (Sweden)

    Stephanus Remond Waworuntu

    2017-03-01

    Full Text Available To determine the effects of corporate governance on earnings management, this paper analyzed 171 annualreports from issued 2006 to 2009 by 57 non-financial, joint stock companies implementing GCG (GoodCorporate Governance practices, which were listed on the Indonesia Stock Exchange (IDX. Six corporategovernance variables (board composition, independent commissioners, separate chairman/CEO roles, auditcommittee, managerial share ownership, and audit quality as well as three control variables (leverage, size,and ROA were used. The results showed that two corporate governance variables significantly influencedearnings management practices (separate chairman/CEO roles and managerial share ownership; the othervariables had no effect because these companies used GCG practices only to follow regulations rather than tomonitor and control.

  7. Reduction of Asymmetric Information through Corporate Governance Mechanisms

    DEFF Research Database (Denmark)

    Holm, Claus; Schøler, Finn

    2010-01-01

    Research Question/Issue: The purpose of this study is to examine how differences in "ownership dispersion" and "exposure toward the international capital market" affect the particular use of the corporate governance mechanisms "transparency" and "board independence" in listed companies. Research...... Findings/Insights: Our findings are based on a Danish dataset which includes 100 listed companies. We find that transparency is a more important corporate governance mechanism for companies with an exposure toward the international capital market, while differences in ownership dispersion do not affect...... the use of the transparency mechanism. In contrast, we find that board independence in the context of a two-tier board member system is an important corporate governance mechanism for companies with widely dispersed ownership and not for companies with an exposure toward the international capital market...

  8. Reduction of Asymmetric Information through Corporate Governance Mechanisms

    DEFF Research Database (Denmark)

    Holm, Claus; Schøler, Finn

    Research Question/Issue: Is the reduction of asymmetric information through Corporate Governance mechanisms more important for some listed companies than for others? The purpose of this study is to examine how differences in "ownership dispersion" and "international orientation" affect the partic......Research Question/Issue: Is the reduction of asymmetric information through Corporate Governance mechanisms more important for some listed companies than for others? The purpose of this study is to examine how differences in "ownership dispersion" and "international orientation" affect...... reasons for differences in compliance. Regulators and other capital market participants should acknowledge that companies may differ in their use of Corporate Governance mechanisms for various reasons, including differences in ownership dispersion and international orientation....

  9. Does Corporate Governance Affect Sustainability Disclosure? A Mixed Methods Study

    Directory of Open Access Journals (Sweden)

    Zeeshan Mahmood

    2018-01-01

    Full Text Available This research paper aims to understand the impact of corporate governance (CG on economic, social, and environmental sustainability disclosures. This paper adopted an explanatory sequential mixed methods approach. The data regarding corporate governance and sustainability disclosure were collected from top 100 companies listed on the Pakistan Stock Exchange (PSE for the period ranging from 2012 to 2015. In addition to the quantitative data, we collected qualitative data through interviews with five board members of different companies. Overall, our results indicate that CG elements enhance sustainability disclosures. This study concludes that a large board size consisting of a female director and a CSR committee (CSRC is better able to check and control management decisions regarding sustainability issues (be they economic, environment, or social and resulted in better sustainability disclosure. This paper, through quantitative and qualitative analysis, provides a methodological and empirical contribution to the literature on corporate governance and sustainability reporting in emerging and developing countries.

  10. Corporate Governance and Environmental Disclosure in the Indonesian Mining Industry

    Directory of Open Access Journals (Sweden)

    Terri Trireksani

    2016-04-01

    Full Text Available Sustainability and corporate governance issues are now considered to be important and integral aspects of company performance. Both have established themselves as well-studied topics in the organisational and accountability areas. While there has been a growing interest to study the relationship between these two areas, research publication in this topic is still mainly focused on the Western societies. This study focuses on the corporate governance and sustainability disclosure practices in one of the emerging economies, Indonesia, and assesses the relationships between corporate governance variables and the extent of environmental disclosures made by the mining companies listed in the Indonesia Stock Exchange (IDX in their annual reports. The main findings of this study show that the extent of environmental disclosure made by these companies was moderate, and that there is a significant positive relationship between the size of board of directors and the extent of environmental disclosure.

  11. PENGARUH PELAKSANAAN AUDIT INTERNAL TERHADAP PENERAPAN GOOD CORPORATE GOVERNANCE

    Directory of Open Access Journals (Sweden)

    Karli Soedijatno

    2013-08-01

    Hypothesis testing in this study using software SPSS 19.0 for windows. The research method used is associative method with quantitative approach. The data used is the primary data in the form of questionnaires distributed to respondents. Data collected amounted to 66 questionnaires from BUMN internal auditors headquartered in Bandung. The results of this study indicate that the implementation of internal audit on SOEs headquartered in Bandung has been implemented very well and the implementation and application of Good Corporate Governance principles in SOEs headquartered in Bandung has been implemented very well so that only need to be maintained implementation. While the influence of internal audit variables on the implementation of principles of Good Corporate Governance of 67.08%. Thus, the hypothesis proposed in this study is accepted, that is, internal audit has an effect on the implementation of Good Corporate Governance.

  12. The Corporate Governance of Australian Listed Construction Companies

    Directory of Open Access Journals (Sweden)

    Patrick Tait

    2012-11-01

    Full Text Available This paper compares the compliance level of Australian StockExchange (ASX listed construction and non-constructioncompanies with the ASX Corporate Governance Council (CGCrecommendations on sound corporate governance. It alsoexamines the difference in board characteristics between thetwo groups, paying particular attention to differences in boardindependence. It concludes that compared with the top 20 ASXlisted non-construction companies, listed construction companiesare less compliant overall particularly with regards to boardstructure, and have lower levels of independence both in terms ofCEO/Chairperson duality, the ratio of executive to non-executiveindependent directors and independent membership of nomination,remuneration and audit committees. These conclusions areimportant because sound corporate governance has beenassociated with higher levels of organisational resilience derivedfrom the reputational and fi nancial benefi ts of greater transparency,market value, investor attractiveness and organisationalperformance.

  13. The internal audit as function to the corporate governance

    Directory of Open Access Journals (Sweden)

    Joksimović Marijana

    2017-01-01

    Full Text Available The aim of this paper is to show the internal audit in function to the corporate governance. Within the planetary economy, internal auditing is determined as an essential means of the exact management of any business economic resources. Concurrently, corporate governance has received wide attention in recent years, both in practice and in academic research because of the main accounting scandals and large-scale corporate failures. The Institute of Internal Auditors presents that regardless of the reporting relationship the organization chooses, there are primary measures that will ensure that the reporting lines, support and enable the effectiveness and autonomy of the internal audit function. Corporate governance has become an increasingly critical issue after the corporate affairs which occurred all over the world and its specific role in the steadiness of financial intermediaries was highlighted by the intense crisis which impacts the financial markets from the summer of 2007. In fact, for financial intermediaries, the governance chain is all the more important not only because the intermediaries are basically in the business of risk acceptance, but also due to their peculiar role within the economy in the aggregation and transfer of financial resources. Regulation may impact on financial venture taking by financial intermediaries by way of the decision-making process pointed out in the various possible legal structures set forth by the law.

  14. Estimating a corporate governance index for companies in Greece

    Directory of Open Access Journals (Sweden)

    Ramona Iulia Țarțavulea (Dieaconescu

    2015-12-01

    Full Text Available European countries have gone through serious efforts to overcome the financial crisis and special measures had to be taken in order to limit the negative impact on businesses and stabilize a healthy economic environment for the single market. The specific governmental policies aimed to keep under control the effects of the crisis and relaunch the economic growth, but they were unpopular among a part of the European citizens. The economic situation forced most managers of private companies to rethink the business strategy and restructure the activity. Lately, Greece has been going through a difficult period, as the crisis worsened the economic situation of the country. The population did not welcome the drastic economic measures which were proposed by IMF and institutional creditors and this conflict almost lead to national insolvency. The problems of Greece are deeply rooted in the business models and economic philosophy. This paper has the purpose of analyzing the corporate governance regulation and practices in Greece and to determine whether it is possible to enhance business profitability and stability by enforcing a better legal framework in the area of corporate governance. The research focuses on the calculation of a corporate governance index for a selection of Greek companies form different sectors of activity (oil &gas, telecommunications, beverages and the analysis of the results may lead to the identification of weaknesses in this domain. Improvements in the corporate governance practices are considered to lead to enhancing business stability and sustainability. The methodology for calculating the corporate governance index is adapted for Greek companies and is in accordance with the provisions of the Hellenic Corporate Governance Code.

  15. IMPLIKASI CORPORATE GOVERNANCE DAN UKURAN PERUSAHAAN PADA MANAJEMEN LABA

    Directory of Open Access Journals (Sweden)

    Evi Octavia

    2017-04-01

    Full Text Available Abstract: Implications of Corporate Governance and Firm Size on the Earnings Management. This study aims to determine the implications of corporate governance and company size to earnings management. The method used is multiple regression from 40 companies listed in 2014-2015. The results showeds that the size of commissioners composition has no impact on earning managemen. Institutions that owns a large shares have the ability to intervene against the company and its financial reporting process. Managerial ownership makes manager's actions aligned with shareholders. It can minimize the opportunistic behavior. The audit committees do their task optimally in overseeing the financial reporting and internal audit performance.

  16. Corporate governance survey: A holistic view for altruistic practice

    Directory of Open Access Journals (Sweden)

    Vijaya B. Marisetty

    2011-03-01

    Full Text Available Taking a holistic approach, this survey paper first reviews the literature on the four pillars of corporate governance, namely, investors, managers, directors, and law and regulation, and then integrates the four components to achieve a unified framework. Attempting to bridge the gap between principles and practice, the paper also incorporates the views of N R Narayana Murthy, founder member of Infosys, one of the most respected corporate governance practice leaders. The emphasis in Infosys, Mr. Murthy revealed, was not on any of the four dimensions but on the value system, ethics and integrity, and the focus on the competition was through better engagement with employees and customers.

  17. KEJAHATAN PASAR MODAL DALAM KERANGKA GOOD CORPORATE GOVERNANCE

    Directory of Open Access Journals (Sweden)

    Titik Suharti

    2004-10-01

    Full Text Available There is always crime happened in every society, including in business community in Indonesia such as in stock exchange sector one of reason why it can happen is weak Good Corporate Governance application. In order knowing how to rule out criminal in stock exchange in Indonesia in term of Good Corporate Governance framework, the writer uses normative juridical approach so that it is known that stock exchange crime has been ruled out in Stock Exchange Law though not all of the principles included in it.

  18. Pengaruh Earnings Management Dan Good Corporate Governance Terhadap Corporate Social Responsibility Pada Perusahaan Manufaktur Yang Terdaftar Di Bei

    OpenAIRE

    Ginarti, Cahyo

    2013-01-01

    The influence of earnings management and good corporate governance on corporate social responsibility in manufacturing company Registered in Indonesia Stock Exchange. The object of the study is the influence of earning management and good corporate governance on corporate social responsibilityThe study used quantitative method with multiple regression analysis. Corporate Social Responsibility is the dependent variable, while the independent variables consisted of earning manajemen and Good Co...

  19. Risk management's role in corporate governance

    OpenAIRE

    Coulson-Thomas, Colin

    2017-01-01

    One of the dilemmas faced by directors is the need to be entrepreneurial in ensuring the future succcess of a company while at the same time retaining prudent control. A conversation is required among some directors and boards to review what is meant by risk and risk management, their governance responsibilities in relation to risk, and the extent to which the risk management community is perceived as a help or hinder to addressing contemporary challenges facing boards and their companies, an...

  20. Corporate Governance and Firm Performance: Evidence from Saudi Arabia

    Directory of Open Access Journals (Sweden)

    Amina Buallay

    2017-03-01

    Full Text Available This study aimed to measure the impact of Corporate Governance on Firm performance of listed companies in Saudi stock exchange. The study methodology was a pooled data collected from the Saudi stock exchange (TADAUWL for the period from 2012 to 2014. The study sample is 171 listed companies. The study independent variable is Corporate Governance principals. The dependent variable is Firm performance which was measured using ROA, ROE and Tobin's Q. The study also utilized five control variables in order to help measuring the relationship between Corporate Governance and Firm Performance. In conclusion, the study found that the governance level was 61.4% in Saudi stock exchange which is considered high compared to previous studies. The results of the study test indicate that there is no significant impact for corporate governance adoption on firm's operational and financial performance in the listed companies in Saudi stock exchange. By testing the Tobin's Q model the study also concluded that there’s no significant impact for ownership of the largest shareholder and independency of Board of Directors on firm's market performance. Significant impact was found for the ownership and the size of the Board of Directors on firm's performance.

  1. Permasalahan Implementasi Prinsip-Prinsip Good Corporate Governance pada BUMN di Indonesia

    OpenAIRE

    Riswandi, Budi Agus

    2009-01-01

    The principles of good corporate government are important to be implemented in BUMN. But, factually it has a law problem. However, the principles of good corporate government which has law problem is imply to BUMN corporate differently.keyword : good corporate governance

  2. Managing corporate governance risks in a nonprofit health care organization.

    Science.gov (United States)

    Troyer, Glenn T; Brashear, Andrea D; Green, Kelly J

    2005-01-01

    Triggered by corporate scandals, there is increased oversight by governmental bodies and in part by the Sarbanes-Oxley Act of 2002. Corporations are developing corporate governance compliance initiatives to respond to the scrutiny of regulators, legislators, the general public and constituency groups such as investors. Due to state attorney general initiatives, new legislation and heightened oversight from the Internal Revenue Service, nonprofit entities are starting to share the media spotlight with their for-profit counterparts. These developments are changing nonprofit health care organizations as well as the traditional role of the risk manager. No longer is the risk manager focused solely on patients' welfare and safe passage through a complex delivery system. The risk manager must be aware of corporate practices within the organization that could allow the personal objectives of a few individuals to override the greater good of the community in which the nonprofit organization serves.

  3. Valuing the Government's Tax Claim on Risky Corporate Assets

    OpenAIRE

    Saman Majd; Stewart C. Myers

    1985-01-01

    This paper explores the effects of tax asymmetries on the value of risky capital investments made by corporations.The government's claim on the firm is shown to be equivalent to a portfolio of options on the firm's revenues. The tax law's provisions for carrying tax losses forward and backward are introduced, necessitating a numerical solution for the value ofthe government's claim. The results show that asymmetric taxation of operating gains and losses can significantly affect the after-tax ...

  4. NATIONAL EXPERIENCES REGARDING CORPORATE GOVERNANCE PROPER PRACTICE CODES

    Directory of Open Access Journals (Sweden)

    Durgheu Liliana

    2010-12-01

    Full Text Available This paper is about the principles of proper governance codes, which even tough have blossomed in all parts of the world for more than a decade, the degree in which companies adopt the codes vary in different countries, and the decision to adopt a certain code does not automatically guarranty efficient corporate governance. The paper trys to identify the mechanisms needed for implementing the codes and that will lead to higher efficiency.

  5. Executive Remuneration as an Aspect of Corporate Governance under OHADA's Corporate System

    OpenAIRE

    Kelong, Richard William Ngwa

    2009-01-01

    With growing importance attached to the notion of executive remuneration, OHADA’s policy makers have also considered the concept as a fundamental element in any corporate governance system. In this regard, they have put in place a policy framework that regulates executive remuneration within OHADA’s corporate system to ensure that executive benefits are appropriate and lawful to enable directors remain objective in respect of their fiduciary duties towards the company. This paper discusses ex...

  6. From Corporate Governance To Corporate Social Responsibility In Malaysia : The Evolving Boardroom Agenda

    OpenAIRE

    Akmal Arief, Mohd Fauzi

    2003-01-01

    With the changing expectation of business in the society, it is not surprising that Corporate Social Responsibility has gained more prominence in recent years along with emphasis for Corporate Governance. Company’s boards are now facing increased responsibility with regards to stakeholder relationship. Continued existence of companies is based on an implied agreement between business and society, where the essence of the contract between society and business is that companies shall not pursue...

  7. Government Policies for Corporate Social Responsibility in Europe:

    DEFF Research Database (Denmark)

    Knudsen, Jette Steen; Moon, Jeremy; Slager, Rieneke

    2015-01-01

    This paper analyses policies of 22 European Union member governments, designed to encourage corporate social responsibility (CSR) between 2000 and 2011. It categorises these policies by their regulatory strength and identifies the range of issues to which CSR policies are directed. The paper argu...

  8. PENGARUH BOARD DIVERSITY TERHADAP NILAI PERUSAHAAN DALAM PERSPEKTIF CORPORATE GOVERNANCE

    Directory of Open Access Journals (Sweden)

    Sari Kusumastuti

    2007-01-01

    Full Text Available Board diversity is one the issue related to corporate governance. Board diversity shall influence Board of Directors composition. In this research, board diversity is measured by 5 variables, i.e. women in board, minority race availability, outsider directors, age, and educational background, with board and company measurement control variables. Company value is measured by utilizing Tobin's Q ratio. The research samples are taken from 48 manufacturing companies listed at Jakarta Stock Exchange in 2005. This research shows that board diversity members influencing to company value. Abstract in Bahasa Indonesia : Persebaran anggota dewan (board diversity merupakan salah satu isu yang terkait dengan corporate governance. Board diversity akan mempengaruhi komposisi dewan direksi yang nantinya akan mempengaruhi implementasi corporate governance. Dalam penelitian ini, board diversity diukur dengan 5 variabel, yaitu keberadaan dewan direksi wanita, keberadaan etnis Tionghoa dalam anggota dewan (sebagai proksi dari minoritas, proporsi outside directors, usia anggota dewan direksi, dan latar belakang pendidikan anggota dewan, dengan ukuran dewan dan ukuran perusahaan sebagai variabel kontrol. Sedangkan nilai perusahaan diukur dengan menggunakan rasio Tobin's Q. Sampel penelitian ini adalah 48 perusahaan manufaktur yang terdaftar di Bursa Efek Jakarta pada tahun 2005. Hasil penelitian menunjukkan bahwa persebaran anggota dewan (board diversity berpengaruh terhadap nilai perusahaan. Kata kunci: persebaran aggota dewan, corporate governance, nilai perusahaan, tobin's Q.

  9. Corporate governance and corruption : A comparative study of Southeast Asia

    NARCIS (Netherlands)

    Wijayati, Nureni; Hermes, Niels; Holzhacker, Ronald

    2015-01-01

    The weak corporate governance framework in Indonesia, as in other countries in Southeast Asia, was deemed a crucial factor in deepening the financial and economic crisis in the late 1990s. Over a decade after the 1997 Asian financial crisis, Indonesia and other Southeast Asian countries have made

  10. Corporate Governance: Insider Information, the Bane of Financial ...

    African Journals Online (AJOL)

    The finding is that the insider information possessed by the manager informed the manipulation of firms, securities, risky business, terms, prices, etc, for their benefit to the detriment of investors and therefore caused the financial melt-down. Finally, the major recommendation is that corporate governance needs reforms for ...

  11. Corporate Governance and the Design of Stock Option Programs

    NARCIS (Netherlands)

    Sautner, Z.; Weber, M.

    2008-01-01

    Investors and academics increasingly criticize that various design features of executive stock option (ESO) plans reflect self-dealing by managers and the inability of corporate governance mechanisms in monitoring executives (managerial power hypothesis). We use a unique and not publicly available

  12. Assessment of Corporate Governance in Jordan: An Empirical Study

    Directory of Open Access Journals (Sweden)

    Sinan S. Abbadi

    2011-09-01

    Full Text Available This paper assesses the reality of corporate governance in Jordan. It identifies the framework of corporate governance, which has here been set into two dimensions – institutionalisations and regulations – and describes the five major principles of corporate governance. The study was carried out by interviews with key employees and the review of related laws and selected annual reports. The study found (1 basic shareholder rights were honoured in decision-making, except for large decisions such as major asset sales; (2 shareholders were not treated equitably in practice, although controllers sometimes took action and prohibited insider trading; (3 the role and rights of stakeholders in corporate governance were respected, and stakeholders had a number of legal protections, which were largely covered in Jordan's Company Law; (4 disclosure and transparency were observed to a large extent, although limited to quantity rather than quality, because Jordan has fully adopted IFRS and ISA and (5 boards largely fulfilled their responsibilities, as these are extensively defined by law and regulation.

  13. Corporate Governance And International Financial Reporting Reference (Ifrs

    Directory of Open Access Journals (Sweden)

    Gheorghe Lepadatu

    2011-05-01

    Full Text Available Between corporate governance and IFRS there is a causal relationship. Financial reporting is basedon managerial accountability. Corporate governance is the economic branch who studies how companies canbecome more efficient through the use of institutional structures such as: incorporation, organization andlegal framework. This branch is limited, in most cases, to studies on how shareholders can motivateexecutives to benefit the company through their efforts, resulting - finally - dividends. Starting from theglobal nature of the current crisis, we have considered as being necessary to point out its effects on thefinancial reporting and, implicitly, on the requirements for the corporate governance consolidation in order toensure the economic and financial stability desired. The macro-economic context favored the start of thecrisis, but the analysis made by experts showed other reasons for this, out of which some of the mostimportant are the corporate governance weaknesses and the insufficient means for protection against risks.We consider that these are reasons which ask for an objective analysis and a correct assessment of theregulatory process but also of the practice in the area corroborated with an invitation for a responsiblebehavior both of the entities management but also of the representatives of the accounting profession so muchinvolved in the correctness of the accounting reporting and therefore in the financial health of the entities.

  14. Corporate Governance Convergence : Evidence from Takeover Regulation Reforms in Europe

    NARCIS (Netherlands)

    Goergen, M.; Martynova, M.; Renneboog, L.D.R.

    2005-01-01

    This paper contributes to the research on corporate governance by predicting the effects of European takeover regulation.In particular, we investigate whether the recent reforms of takeover regulation in Europe are leading to a harmonization of the national legislations.With the help of 150

  15. DEVELOPING COUNTRIES AND CORPORATE GOVERNANCE. THE CASE OF ROMANIA

    Directory of Open Access Journals (Sweden)

    GIOVANA IUHASZ

    2015-03-01

    Full Text Available During the past years, developing countries have become extremely interesting for researchers, as well as for capital investors. Dominated by growth and industrialization, but lacking macroeconomic indicator stability or sufficiently mature financial markets, these countries make it acutely necessary to identify measures that will stimulate foreign investors to invest and that will ensure the financial stability for SMEs. One such measure is increasing the quality of corporate governance at the level of small and medium-sized enterprises, where it is currently almost absent. This article aims to help raise awareness of the need to implement good corporate management practices at the level of companies in developing countries and especially in Romania. This paper uses a questionnaire in order to evaluate the state of the corporate governance in Timis county and offers some suggestions on what should be done for a higher corporate governance quality in the case of small and medium-sized companies in Romania, with the purpose of establishing a connection between governance quality and business performance of SMEs

  16. Learning from Ancient Athens: Demarchy and Corporate Governance

    OpenAIRE

    Zeitoun Hossam; Osterloh Margit; Frey Bruno S.

    2014-01-01

    The corporate governance literature increasingly recognizes that firms can benefit from protecting and thereby inducing firm specific investments of various stakeholders. Such investments by shareholders employees suppliers customers and the local community strengthen the sustainable competitive advantage of the firm. However the protection of multiple stakeholders' interests poses substantial implementation problems. This paper explores a novel approach to such protection based on the creati...

  17. Eumedion in the Dutch Corporate Governance and Sustainability Landscape

    NARCIS (Netherlands)

    Hermes, Niels; Hooghiemstra, Reggy; van Veen, Kees

    2016-01-01

    Eumedion is a Dutch foundation representing the interests of Dutch and foreign institutional investors with investments in Dutch listed companies. In particular, it represents the interests of these participants in the field of corporate governance and sustainability. The foundation was established

  18. Regulatory and institutional challenges of corporate governance in ...

    African Journals Online (AJOL)

    From a banking industry perspective, good corporate governance demands that banks will operate in a safe and sound manner, comply with applicable laws and regulations and protect the interests of depositors. This paper, however, posits that unless accompanied by institutional and regulatory reforms the code of ...

  19. Corporate Governance and Tax Planning Among Non- Financial ...

    African Journals Online (AJOL)

    Nneka Umera-Okeke

    the actual average tax payable on a taxpayer's pre-tax income, which is different from ... tax system. For many years, the themes of taxation and corporate governance were considered antagonistic in the literature, but recent studies have ...... hypothesis: Evidence from Malaysia, Journal of International Accounting,. Auditing ...

  20. Relevance of Corporate Governance in Nigerian Banks | Akinyomi ...

    African Journals Online (AJOL)

    The study revealed that poor corporate governance, poor risk management practices, inability to manage expansion, low assets quality, inadequate supervisory framework and unethical practices among top banking chiefs who gave out loans without required collateral were identified as some of the reasons for the current ...

  1. 'Paper profits': Fair value accounting, dividends, and corporate governance

    NARCIS (Netherlands)

    Goncharov, I.; van Triest, S.

    2009-01-01

    We examine the impact of upward fair value adjustments on dividend policies in Russia, where corporate governance is weak. We discuss the case of the utility company Unified Energy System (UES), which abolished its dividends (including mandatory preferred dividends) after reporting a record profit

  2. Corporate Governance and Institutional Strategic Transparency in Emerging Markets

    NARCIS (Netherlands)

    Millar-Schijf, Carla C.J.M.; Eldomiaty, T.I.; Choi, C.J.; Hilton, B.J.

    2005-01-01

    This paper posits that differences in corporate governance structure partly result from differences in institutional arrangements linked to business systems. We developed a new international triad of business systems: the Anglo-American, the Communitarian and the Emerging system, building on the

  3. Corporate governance and executive pay: evidence from a recent reform

    Czech Academy of Sciences Publication Activity Database

    Paligorova, Teodora

    -, č. 331 (2007), s. 1-49 ISSN 1211-3298 R&D Projects: GA MŠk LC542 Institutional research plan: CEZ:AV0Z70850503 Keywords : corporate governance * the Sarbanes-Oxley Act * incentive pay Subject RIV: AH - Economics http://www.cerge-ei.cz/pdf/wp/Wp331.pdf

  4. Peranan Auditor Intenal dalam Menunjang Pelaksanaan Good Corporate Governance (Studi Kasus pada PT Dirgantara Indonesia)

    OpenAIRE

    Wardoyo, Trimanto S; Lena

    2011-01-01

    Good corporate governance is not a concept, but comprehension a lot of misunderstanding. For this because of different estimated, a lot of people need estimated. Auditor internal one of another profession that help improve good corporate governance, in this moment Good corporate governance develop to be the primary component to improve of managing the good corporate. This study aims to determine the role of internal auditor in supporting the implementation of good corporate governance, and wh...

  5. OECD and G20 Cooperation on Corporate Governance

    Directory of Open Access Journals (Sweden)

    Marina Larionova

    2016-12-01

    Full Text Available This article analyses the evolution of the Organisation for Economic Co-operation and Development’s (OECD Principles of Corporate Governance and the economic environment of their transformation, as well as the key changes in the third version of the document adopted in 2015. The authors conclude that this version reflects the recent challenges related to the role of stock exchanges in corporate governance, information disclosure and risk management. However, it is still oriented toward profit maximization amid the lack of attention to the balance of interests among stakeholders and to aspects of corporate governance related to the quality of life. Members of the Group of 20 (G20 that are not members of the OECD participated in revising the document, but this did not result in any dramatic changes in the structure or content of the principles. This article focuses on the cooperation between the OECD and G20 countries, including non-OECD members, in the process of updating the principles in 2013–15. The authors identify three major mechanisms of cooperation: 1 discussion of corporate governance at regional roundtables and other international events related to corporate governance, 2 online consultations and 3 OECD peer reviews. The article studies the participation of six G20 countries that are not members of the OECD: Brazil, Russia, India, China, South Africa and Indonesia. Brazil was the most active country under review — its representatives actively communicated with the OECD using all available mechanisms. The contributions of China, India, Indonesia and Russia were also estimated as high. The least active participant was South Africa.

  6. Government Policies for Corporate Social Responsibility in Europe

    DEFF Research Database (Denmark)

    Knudsen, Jette Steen; Moon, Jeremy; Slager, Rieneke

    This paper analyses policies of twenty two EU member governments designed to encourage corporate social responsibility (CSR) over the first decade of the century. Our paper categorizes policies for CSR into different types depending on their expected degree of regulatory strength. Secondly, whilst...... it identifies a wide range of issues to which government CSR policies are directed, it notes a tendency for these to have expanded from social affairs and employment issues, through environmental issues, to economic and trade and development issues. Thirdly, governments act as agents in their respective...

  7. Business ethics and corporate governance in the Second King Report: Farsighted or futile?

    Directory of Open Access Journals (Sweden)

    G.J. Rossouw

    2002-08-01

    Full Text Available The relationship between corporate governance and business ethics has always been ambiguous. Does corporate governance per definition have an ethical nature or is it merely self-interested? Is business ethics an integral part of corporate governance or is it marginalised or even excluded by the debate on corporate governance? Does corporate governance also include the governance of ethics? This article will focus on the relationship between corporate governance and business ethics from the perspective of a developing country. More specifically, it will look at a recent development in South Africa where the Second Report on Corporate Governance for South Africa (IOD, 2002, also known as the Second King Report, gave particular prominence to business ethics. The motivation for its emphasis on business ethics as well as its guidelines for the corporate governance of ethics will be explored and, in conclusion, critically reviewed.

  8. Corporate municipal governance for effective and efficient public service delivery in South Africa.

    Directory of Open Access Journals (Sweden)

    Paulin Mbecke

    2014-10-01

    Full Text Available This research acknowledges the current service delivery chaos manifested through numerous protests justifying the weakness of the “Batho Pele” good governance principles to facilitate, improve and sustain service delivery by local governments. The success of corporate governance in corporate companies and state owned enterprises is recognised prompting suggestions that local governments should too adopt corporate governance principles or King III to be effective. The research reviews the King III and literature to ascertain the lack of research on corporate governance in local governments in South Africa. Considering the particular set-up of local governments, the research doubts the successful application of King III in local governments. Through critical research theory, the current service delivery crisis in local governments in South Africa is described. The success of corporate governance systems in the United Kingdom and Australian local governments justify the need for a separate corporate municipal governance system as a solution to the crisis. A specific change of legislation and corporate governance guidelines is necessary to address the uniqueness of local governments. Hence, corporate municipal governance should be compulsory and based on ten standardised good governance principles via a code of corporate governance and a corporate governance framework responding to specific prerequisites for success

  9. Corporate governance in Czech hospitals after the transformation.

    Science.gov (United States)

    Pirozek, Petr; Komarkova, Lenka; Leseticky, Ondrej; Hajdikova, Tatana

    2015-08-01

    This contribution is a response to the current issue of corporate governance in hospitals in the Czech Republic, which draw a significant portion of funds from public health insurance. This not only has a significant impact on the economic efficiency of hospitals, but ultimately affects the whole system of healthcare provision in the Czech Republic. Therefore, the effectiveness of the corporate governance of hospitals might affect the fiscal stability of the health system and, indirectly, health policy for the whole country. The main objective of this paper is to evaluate the success of the transformation in connection with the performance of corporate governance in hospitals in the Czech Republic. Specifically, there was an examination of the management differences in various types of hospitals, which differed in their ownership structure and legal form. A sample of 100 hospitals was investigated in 2009, i.e., immediately after the transformation had been completed, and then three years later in 2012. With regard to the different public support of individual hospitals, the operating subsidies were removed from the economic results of the corporations in the sample. The adjusted economic results were first of all examined in relationship to the type of hospital (according to owner and legal form), and then in relation to its size, the size of the supervisory board and the education level of the senior hospital manager. A multiple median regression was used for the evaluation. One of the basic findings was the fact that the hospital's legal form had no influence on economic results. Successful management in the form of adjusted economic results is only associated with the private type of facility ownership. From the perspective of our concept of corporate governance other factors were under observation: the size of the hospital, the size of the supervisory board and the medical qualifications of the senior manager had no statistically verifiable influence on the

  10. Corporate Governance Best Practice and Stock Performance: Case of CEE Companies

    Directory of Open Access Journals (Sweden)

    Julia Bistrova

    2012-06-01

    Full Text Available Corporate governance (CG becomes a very essential factor to consider prior to investing in the company. A number of studies proved its importance on the developed equity markets. However, intuitively corporate governance should gain more importance due to high degree of uncertainty because of the unstable environment. In order to assess the influence of corporate governance quality on Central and Eastern European companies' stock performance, the CG assessment model, which includes 21 evaluation criteria, was developed. Based on the model rating, the companies with the highest CG quality (top 25% outperformed companies with the worst CG quality (bottom 25% by 0.98% on a monthly basis during the period of 2008 - 2010. Study demonstrate that companies with good CG quality are able to offer lower risk.

  11. DAMPAK AUDIT QUALITY DAN CORPORATE GOVERNANCE TERHADAP INTEGRITAS LAPORAN KEUANGAN

    Directory of Open Access Journals (Sweden)

    Aljufri Aljufri

    2015-04-01

    Full Text Available Abstrak: Penelitian ini bertujuan untuk mengetahui pengaruh kualitas audit terhadap integritas laporan keuangan, pengaruh mekanisme coorporate governance terhadap integritas laporan keuangan. Penelitian ini dilakukan pada perusahaan perbankan yang terdaftar di Bursa Efek Indonesia. Populasi dalam penelitian ini terdiri dari 31 perusahaan perbankan yang terdaftar di Bursa Efek Indonesia dengan menggunakan teknik pengambilan sampel sensus.  Berdasarkan hasil penelitian dapat disimpulkan bahwa kualitas audit tidak berpengaruh terhadap integritas laporan keuangan. Mekanisme corporate governance berpengaruh signifikan terhadap integritas laporan keuangan. Kata kunci : Audit Quality, Coorporate Governance, Integritas Laporan Keuangan. Abstract: This study aimed to determine the effect of audit quality on the integrity of the financial statements, the effect of Coorporate governance mechanisms on the integrity of financial statements. This research was conducted on banking companies listed in Indonesia Stock Exchange. The population in this study consisted of 31 banking companies listed in Indonesia Stock Exchange by using a sampling technique census. Based on the results of this study concluded that audit quality does not affect the integrity of the financial statements. Corporate governance mechanisms have a significant effect on the integrity of the financial statements. Keywords : Audit Quality, Coorporate Governance, Integrity of the Financial Statements.

  12. Corporate governance codes and their contents : An analysis of Eastern European codes

    NARCIS (Netherlands)

    Hermes, Niels; Postma, Theo J. B. M.; Zivkov, Orestis

    2007-01-01

    Existing literature suggests that the contents of corporate governance codes are similar due to external forces, such as increased integration of countries in the global economy, the increased role of foreign institutional investors and recommendations on corporate governance practices of

  13. Role and importance of accounting and audit in corporate governance

    Directory of Open Access Journals (Sweden)

    Lovre Ivan

    2014-01-01

    Full Text Available The current economic crisis and the financial scandals of the early XXI century led to the discrediting and compromising the accounting and auditing profession. The assumption of efficient growth and development of a company is an introduction of corporate governance and protection of the interests of creditors. In order to regain public confidence in financial reporting, it is necessary to examine the role of accounting and auditing profession and align it with international standards. It is necessary to take into account The OECD Principles of Corporate Governance, which are accepted by all international financial and accounting organizations, with the aim of rehabilitation of confidence in the audit. Taking into account The OECD Principles, it becomes necessary for accounting and auditing practices to be directed towards the fulfillment of the basic role of protecting the interests of stakeholders and providing information for the functioning of the administration.

  14. Corporate governance and compensation of chief executive officer Brazilian

    Directory of Open Access Journals (Sweden)

    Paulo Roberto da Cunha

    2016-08-01

    Full Text Available This study aimed to analyze the corporate governance attributes that affect the compensation of executive directors of Brazilian public companies. We conducted a descriptive, documentary and quantitative research. The study sample comprised the 100 Brazilian companies listed on the BM&FBovespa, belonging to the Novo Mercado. From the study results it was found that the variable size of the company showed a significant relation to the fixed remuneration. The shareholding of directors, board size and ROA were significant to the variable remuneration, however, the stake and the size of negatively board of directors. The size of the board, the ROA and firm size were related significantly to the total remuneration. We conclude that the corporate governance attributes that affect the compensation of executive officers of the companies analyzed were the shareholdings of directors, size of the board, ROA and firm size.

  15. Cross-listing, managerial compensation and corporate governance

    Directory of Open Access Journals (Sweden)

    Yongli Luo

    2014-12-01

    Full Text Available This study examines the relationship between cross-listing and managerial compensation of Chinese firms that concurrently issued A- and B-shares or A- and H-shares during 2001–2010. The results show that executive compensation is a positive factor to motivate Chinese A-share firms to cross-list as B- or H-shares; it implies that cross-listings could be employed as a way of asset appropriation at the managers’ discretion. The results also confirm that corporate governance is important in determining cross-listings. Under the weak corporate governance institution, Chinese firms were chosen to cross-list based on political considerations rather than on economic merits, serving as a vehicle to signal the quality of state owned enterprises. The results are drawn on agency theory, signalling hypothesis and bonding hypothesis.

  16. Corporate governance in state-owned companies in Hungary

    Directory of Open Access Journals (Sweden)

    Tekla Papp

    2016-12-01

    Full Text Available At the development and to the comprehension of the regulation it is necessary to ascertain that in our view, the subject of the regulation is the operation of the company. The regulation regulates the problems arising specifically during the course of the operation of the company, as an „ex ante” tool and by the avoidance of that upon the cessation of the public company, any unjustified or inconcievable costs (social costs should rise. As an example, there are the infamous earlier corporate scandals (Enron, Parmalat, Vivendi Universal, the infringements of which drew critical social (budget costs, as they left behind unsettled creditors’ claims, plenty of workplaces got terminated, etc. To prevent this, one of the techniques is corporate governance, as it focuses on such mechanisms during the course of the operation of the company as direction and control. With this, the cessation of the company can presumably be avoided, as it is publicly acknowledged that the majority of corporate scandals descend from the faults of leadership, direction and control. Based on the above, we may ascertain that in our perception, under ’corporate governance’ it’s the legal facts or interests relevant in the course of the operation of the company what become regulated in terms of corporate law.

  17. Sustainability, accountability and corporate governance: Exploring multinationals' reporting practices

    OpenAIRE

    Kolk, A.

    2008-01-01

    Recent years have seen a rapid increase in accountability pressures on particularly large global companies. The increased call for transparency comes from two different angles, which show some (potential) convergence in terms of topics and audiences: accountability requirements in the context of corporate governance, which expand to staff-related, ethical aspects; and sustainability reporting that has broadened from environment only to social and financial issues. This article examines to wha...

  18. Corporate governance, accountability and mechanisms of accountability : an overview

    OpenAIRE

    Brennan, Niamh; Solomon, J. (Jill)

    2008-01-01

    Purpose – This paper reviews traditional corporate governance and accountability research, to suggest opportunities for future research in this field. The first part adopts an analytical frame of reference based on theory, accountability mechanisms, methodology, business sector/context, globalisation and time horizon. The second part of the paper locates the seven papers in the special issue in a framework of analysis showing how each one contributes to the field. The paper presents a frame o...

  19. The impact of Czech mass privatisation on corporate governance

    Czech Academy of Sciences Publication Activity Database

    Hanousek, Jan; Kočenda, Evžen

    2003-01-01

    Roč. 30, 3/4 (2003), s. 278-293 ISSN 0144-3585 R&D Projects: GA MŠk ME 595 Institutional research plan: CEZ:AV0Z7085904 Keywords : corporate governance * investment funds * transition management Subject RIV: AH - Economics http://proquest.umi.com/pqdweb?did=446046691&sid=3&Fmt=4&clientId=45063&RQT=309&VName=PQD

  20. The contribution of internal control and audit to corporate governance

    OpenAIRE

    EBONDO WA MANDZILA, Eustache

    2004-01-01

    Assimilating the management of managerial corporations to the governing of a nation, some researchers have focused their studies on developing their research and then recommending the mechanisms of internal and external control as remedies to limit the opportunistic behaviours of agents. After introducing the limits of these mechanisms, the first part of the thesis will focus on considering the internal control and audit as two mechanisms capable of regulating the behaviours of different stak...

  1. CORPORATE GOVERNANCE COMMITTEES IN EUROPEAN UNION EMERGING ECONOMIES

    Directory of Open Access Journals (Sweden)

    Mihaela Dumitrascu

    2013-07-01

    Full Text Available The aim of this research is to analyze the support committees of European Union emerging economies. The importance of good corporate governance is vital for an organization, especially in the emerging markets, fact that leads to a several perceived improvements of the entity, while being more trustable, open and transparent in relationship with all its stakeholders. In our demarche we started by choosing the emerging economies from European Union, which lead us to a sample consisting of the companies listed on Bucharest Stock Exchange, Sofia Stock Exchange, Warsaw Stock Exchange, Prague Stock Exchange, Budapest Stock Exchange, without taking into consideration a specific tier. In order to have a heterogeneous sample, we did eliminate the financial institutions from our research. This study is developed at European Union level and takes into consideration the following indices: BET® BUCHAREST EXCHANGE TRADING (Romania, SOFIX (Bulgaria, WIG 20 (Poland, PX (Czech Republic, BUX The Share Index of the Budapest Stock Exchange Co. Ltd. (Hungary. The data are extracted from the Annual Reports, Corporate Governance Codes, Comply or Explain Statement or the websites of the listed companies, from period 2007 - 2011. We choose this period, because we wanted to see the evolution of the corporate governance committees’ implementation from the period when the last countries from our sample joined the European Union since nowadays. Our conclusion is that we can not discuss about good corporate governance practices. Even so, we can observe from our investigation that the trend in this regard is encouraging. Like future research, we thought at developing our study by comparing the emerging economies from European Union with those outside this area. It is an interesting field of investigation, as every country has different regulations.

  2. Corporate Governance in Macedonia – micro and macro analysis

    OpenAIRE

    Apostolov, Mico

    2010-01-01

    The corporate governance issue in Macedonian companies has been brought forward during the recent few years. The main reason is the fact that the privatization process completion of socially-owned and partly state-owned enterprises has put emphasis to the challenge to reasonably regulate relationships established within companies on one hand, and relationships between companies and larger society on the other. All market economies, including those with longest tradition, have faced this kind ...

  3. Corporate Governance - Key element in the Growth of Audit Quality

    Directory of Open Access Journals (Sweden)

    R. Almaşi

    2013-12-01

    Full Text Available In the recent years, because of the many financial scandals, we have witnessed numerous debates concerning topics, such as government enterprises or aspects of participants reporting process. It is obviously that it is necessary to examine the corporate governance issues and those relating to the audit committee; that’s why, even if the financial statements are the responsibility of the management, it’s important to ensure the provision of information taking into account the principles of true and fair play, in the audit committees and through the external auditors.

  4. THE CORPORATE GOVERNANCE REVOLUTION: A COMPARATIVE STUDY BETWEEN INDIA AND UNITED KINGDOM

    OpenAIRE

    DAS, NAMRATA

    2008-01-01

    This study aims to provide a broad yet comprehensive understanding of corporate governance in the international context. After an exhaustive review of the social sciences literature, the dominant theoretical paradigms and debates on corporate governance have been highlighted. Next, the study traces the trajectory of corporate governance development in the United Kingdom and India. Landmark reports and revolutionary codes of conduct which form the backbone of existing corporate governance syst...

  5. Evolving legal framework of corporate governance in India – issues and challenges

    OpenAIRE

    Pankaj Kumar GUPTA; Singh SHALLU

    2014-01-01

    Investors now started considering corporate governance as very essential factor before investment especially in view of the unstable environment in the securities market. It is considered that good corporate governance inspires, strengthens and maintains investor’s confidence by ensuring company’s commitment to higher growth and profits. Corporate Governance has become a major concern for global economies particularly the transition world. Sound corporate governance is extremely important for...

  6. Corporate Governance and Efficiency of Russian Companies from Stock Market Perspective

    OpenAIRE

    Kleiner, Vadim

    2009-01-01

    The article shows that a transition from a static to a dynamic analysis of corporate governance changes of the definition of "corporate governance" to include not only relationships between a company and its shareholders, but also company relationships with a variety of other stock market participants. The article analyses corporate governance's level of influence on company efficiency. It also suggests a minimum set of key corporate governance principles, by examining which company meets com...

  7. Corporate Governance Compliance and Discretionary Accruals: New Zealand Evidence

    Directory of Open Access Journals (Sweden)

    Md. Borhan Uddin Bhuiyan

    2013-06-01

    Full Text Available The purpose of this paper is to investigate the effect of better compliance with corporate governance regulation on managerial accruals (discretionary accruals in New Zealand listed companies. Unlike previous research of earnings management, Jones model ( Jones 1991, Modified Jones model (Dechow, Sloan, & Sweeney, 1995 and Performance Matched Accruals Model (Kothari, Leone, & Wasley, 2005 this research focuses on free cash flow as a measure of discretionary accruals instead of cash flow from operating activities. Univariate and multivariate regression analysis was done on 70 New Zealand listed firms over the period of 2000 - 2007 (inclusive. Results found that better compliance with corporate governance reduces discretionary accruals implying lower managerial opportunistic behaviour. Consistent with existing theoriesand models of discretionary accruals, this research documents that free cash flow increase managerial discretion by comparing with commonly used accruals model such as Jones Model, Modified Jones Model and Performance Matched Accruals Model. This study provides insights to regulators in developing corporate governance and financial reporting guidelines. It suggests that ‘Comply or Explain’ form of soft regulation reduces managerial discretion with stock exchange listing. This research uses a comparative analysis of traditional discretionary accrual measure with free cash flow approach of discretionary accruals. Moreover, an integration approach of discretionary accrual measure was never previously done in New Zealand.

  8. WHAT GOOD CORPORATE GOVERNANCE PRACTICES CANTURKEY LEARN FROM THE UK?

    Directory of Open Access Journals (Sweden)

    Irem Tore

    2012-07-01

    Full Text Available Globalization has led to an increase in opportunities to make foreign investments.However, some developing countries, such as Turkey, cannot fully benefit fromforeign investment. One of the reasons for this is ineffective application ofcorporate governance. In fact, Turkey can learn a lot from the good practices ofdeveloped countries. For instance, the UK has a well established corporategovernance framework. First of all, Turkey needs to follow the UK’s example inrespect of rule making and law enforcement. As a result, principles and theimplementations of principles in Turkey would be more efficient.The principal aim of the paper is to discuss the corporate governanceimplementation in Turkey and offer some recommendations for improvement.The problems of Turkish Corporate Governance occur because of the ownershipstructure of Turkish companies, which is mainly family ownership. Theseproblems will be discussed in this paper. Later UK arrangements will beexamined and later the following conclusions will be drawn; revising the codes isnot done regularly enough in Turkey which inhibits the revision of its codes.Moreover law enforcement is not effective. Besides, ownership structure is notsuitable for corporate governance.

  9. PENGARUH INTERDEPENDENSI MEKANISME CORPORATE GOVERNANCE TERHADAP KINERJA PERBANKAN

    Directory of Open Access Journals (Sweden)

    Ali Muktiyanto

    2011-12-01

    Full Text Available This study aims to examine the effect of interdependence mechanisms of corporate governance on company performance (Agrawal and Knoeber 1996. These mechanisms are: managerial ownership, institutional ownership, independent commissioner, board size, debt policy, dividend policy, market concentration, and market share with the control variables are growth, size, and firm ages. Test results on 349 firm-years using OLS regression for each mechanism and 2SLS regression for simultaneous testing indicate the presence of interdependence between the mechanisms. both parsial and simultanously; managerial ownership and dividend policy does not significantly influence on the banking efficiency. Significant positive effect of the board size and institutional ownership when tested by OLS did not recur when tested simultaneously using 2SLS. Instead, the independent commissioner when tested by 2SLS have significant negative effect but using OLS no significant effect. There are three variables of corporate governance mechanisms have consistent effect on the banking efficiency; debt policy has significant negative effect, while the market concentration and market share have significant positive effect. Different results between the tests using OLS and 2SLS emphasize the interdependence of these mechanisms is also shown that application of the policy of corporate governance mechanisms should be done carefully so that the expected performance can be achieved.

  10. Spillover of Corporate Governance Standards in Cross-Border Mergers and Acquisitions

    NARCIS (Netherlands)

    Martynova, M.; Renneboog, L.D.R.

    2008-01-01

    In cross-border acquisitions, the differences between the bidder and target corporate governance have an important impact on the takeover returns. Our country-level corporate governance indices capture the changes in the quality of the national corporate governance regulations over the past 15

  11. What determines the informativeness of firms' explanations for deviations from the Dutch corporate governance code?

    NARCIS (Netherlands)

    Hooghiemstra, R.B.H.

    2012-01-01

    The comply-or-explain principle is a common feature of corporate governance codes. While prior studies investigated compliance with corporate governance codes as well as the effects of compliance on firm behaviour and performance, explanations for deviations from a corporate governance code remain

  12. 78 FR 13661 - National Fuel Gas Distribution Corporation; Notice of Petition for Rate Approval

    Science.gov (United States)

    2013-02-28

    ... From the Federal Register Online via the Government Publishing Office DEPARTMENT OF ENERGY Federal Energy Regulatory Commission National Fuel Gas Distribution Corporation; Notice of Petition for Rate Approval Take notice that on February 12, 2013, National Fuel Gas Distribution Corporation filed for...

  13. Highlights of GAO's Corporate Governance, Transparency and Accountability Forum

    National Research Council Canada - National Science Library

    2002-01-01

    The recent sudden and largely unexpected bankruptcy of one of the nation's major corporations, Enron Corporation, and the financial difficulties being experienced by several other large corporations...

  14. Corporate governance and strategic human resource management : Four archetypes and proposals for a new approach to corporate sustainability

    NARCIS (Netherlands)

    Martin, Graeme; Farndale, E.; Paauwe, J.; Stiles, Philip G.

    2016-01-01

    In this paper we develop a new typology connecting strategic human resource management (SHRM) to different models of firm-level corporate governance. By asking questions concerning ownership and control issues in the corporate governance literature and drawing on institutional logics, we build a

  15. Corporate governance : disclosure on directors’ remuneration in Malaysia – is it adequate?

    OpenAIRE

    Wong, Irene Ling Chiong

    2014-01-01

    Ever since numerous corporate failures that shaken the faith and confidence of the public, the introduction of good corporate governance mechanism has swept the world off their feet. A sound corporate governance mechanism not only encourages proper management of risk, but at the same time, promotes effective performance. A vital part of corporate governance, directors’ remuneration has gain considerable focus from the policy makers, academics, media and public over the years. The measurements...

  16. THE CRITICAL THINKING OF SOME WESTERN EUROPEAN CORPORATE GOVERNANCE STANDARDS AFTER FINANCIAL CRISIS, CORPORATE SCANDALS AND MANIPULATION

    OpenAIRE

    Dinh TRAN NGOC HUY

    2013-01-01

    After the recent global crisis, corporate scandals and bankruptcy in US and Europe, there is some certain evidence on weak auditing, risk management, accounting and audit system. This paper chooses a different analytical approach and among its aims is to give some systematic opinions on corporate governance criteria as a benchmark for stock markets. Firstly, it classifies limited Western European representative corporate governance (CG) standards into two (2) groups: The Netherlands and Belgi...

  17. The Suggestion of Some Comparative European Group Corporate Governance Standards after Financial Crisis, Corporate Scandals and Manipulation

    OpenAIRE

    Dinh Tran Ngoc Huy

    2016-01-01

    In past few years, corporate scandals and bankruptcy in US and Europe and other parts of the world show some certain evidence on weak corporate governance, weak internal control system and weak audit. Though there are a few researches which have been done in the field of international corporate governance standards, we believe that this field with more rooms to explore. Therefore, this paper chooses a different analytical approach and among its aims is to give some systematic opinions. Fir...

  18. Cross-listing, managerial compensation and corporate governance

    OpenAIRE

    Luo, Yongli

    2014-01-01

    This study examines the relationship between cross-listing and managerial compensation of Chinese firms that concurrently issued A- and B-shares or A- and H-shares during 2001 - 2010. The results show that executive compensation is a positive factor to motivate Chinese A-share firms to cross-list as B- or H-shares; it implies that cross-listings could be employed as a way of asset appropriation at the managers' discretion. The results also confirm that corporate governance is important in det...

  19. Good Corporate Governance: How Jamaica Will Enter the Global Village

    OpenAIRE

    Peter W Jones

    2004-01-01

    Jamaica in order to effectively interface with the global village has been forced to change its ethical mindset, which has deterred the practice of good corporate governance and its worldview of how to aggressively achieve business success in an era, which does business via the Internet and other forms of wireless communication making business real-time. In Jamaica those companies who have not listened to the wisdom of those who deemed fit to make radical changes as it was deemed then have be...

  20. Firm Performance and Comply or Explain Disclosure in Corporate Governance

    DEFF Research Database (Denmark)

    Rose, Caspar

    2016-01-01

    : complies, complies poorly, explains and explains poorly. The article demonstrates that measuring the degree of compliance cannot be done in a mechanical way. Instead, it must be customized to the respective national institutional environment, which suggests country comparisons will be difficult to make...... that soft law may be an efficient way of increasing the quality of corporate governance among listed firms. However, in order to strengthen investor confidence, national code authorities/committees should be more active in penalizing poor explanations as well as cases where firms wrongfully state...

  1. INFORMATION SECURITY AS PART OF THE OVERALL CORPORATE GOVERNANCE – IT GOVERNANCE

    Directory of Open Access Journals (Sweden)

    Mihaela Ungureanu

    2013-07-01

    Full Text Available A corporate governance system is not based solely on enforcement actions and incentives in order to obtain performance. In the context of a modern business environment, it must initiate and support research and development, contribute to social stability by harnessing human and cultural capital. Corporate governance plays a key role in improving the efficiency of the capital market through its impact on their operations and financial reporting integrity.IT governance has become a necessity due to the increased dependence, which is sometimes critical, against the company’s IT resources and due to the IT risks growth and diversification that management must settle, now operating in a heavily computerized environment.The changes in the informational environment and the expansion of new information technologies in organizations determine more complex and heterogeneous IT infrastructures. An essential issue is represented by the quality and performance of the existing system within an organization.

  2. Corporate social responsibility in marine plastic debris governance.

    Science.gov (United States)

    Landon-Lane, Micah

    2018-02-01

    This paper explores the governance characteristics of marine plastic debris, some of the factors underpinning its severity, and examines the possibility of harnessing corporate social responsibility (CSR) to manage plastic use within the contextual attitudes of a contemporary global society. It argues that international and domestic law alone are insufficient to resolve the "wicked problem" of marine plastic debris, and investigates the potential of the private sector, through the philosophy of CSR, to assist in reducing the amount and impacts of marine plastic debris. To illustrate how CSR could minimise marine plastic pollution, an industry-targeted code of conduct was developed. Applying CSR would be most effective if implemented in conjunction with facilitating governance frameworks, such as supportive governmental regulation and non-governmental partnerships. This study maintains that management policies must be inclusive of all stakeholders if they are to match the scale and severity of the marine plastic debris issue. Copyright © 2017 Elsevier Ltd. All rights reserved.

  3. CORPORATE GOVERNANCE AND CORPORATE SOCIAL RESPONSIBILITY DISCLOSURE: EVIDENCE FROM SAUDI ARABIA

    Directory of Open Access Journals (Sweden)

    Murya Habbash

    2016-03-01

    Full Text Available Purpose: This study aims to discover the Corporate Social Responsibility (CSR disclosure practices and the potential influence of Corporate Governance (CG, ownership structure, and corporate characteristics, in an emerging Arab country, Saudi Arabia. This study extends the extant literature by investigating the drivers of CSR disclosure in a country that lacks research in this area. Methodology: This study examines 267 annual reports of Saudi non-financial-listed firms during 2007- 2011 using manual content and multiple regression analyses and a checklist of 17 CSR disclosure items based on ISO 26000. Findings: The analysis finds that the CSR disclosure average is 24%, higher than 14.61% and 16% found by Al-Janadi et al. (2013 and Macarulla and Talalweh (2012 for two Saudi samples during 2006-2007 and during 2008, respectively. This improvement may be due to the application of Saudi CG code in 2007. The analysis also shows that government and family ownership, firm size, and firm age are positive determinants of CSR disclosure, firm leverage is a negative determinant, while effective AC, board independence, role duality, institutional ownership, firm profitability, and industry type are found not to be determinants of CSR disclosure. Originality/value: This study is important because it uses agency theory to ascertain the influence of specific board characteristics and ownership structures on disclosure. As a result it provides important implications for CG regulators and different stakeholders and provides an evaluation of the recently applied Saudi CG code from CSR disclosure perspective.

  4. Technology Transfer in Poland: An Investment of U.S. Government, U.S. Corporate, and Polish Government Strategies

    National Research Council Canada - National Science Library

    Hays, Susan

    1998-01-01

    This case study examines how U.S. Government (USG) policy, U.S. corporate policy, and Polish government policy affect the strategy of technology transfer of military and/or dual-use technologies in Poland...

  5. THE ROLE OF CORPORATE GOVERNANCE IN TRANSITION ECONOMIES: CONTRIBUTION AND DEVELOPMENT

    Directory of Open Access Journals (Sweden)

    OLIVERA GJORGIEVA-TRAJKOVSKA

    2016-10-01

    Full Text Available With more evident process of globalization of the world market, the concept of corporate governance gains importance. The global economic crisis highlighted the problems of corporate governance both in developed countries and developing economies. Analyzing the effects of the global economic crisis, including striking collapse of many companies, the huge increase in unemployment and the increased number of people living on the poverty line and below, it can be concluded that some of these problems are result of various weaknesses and failures of corporate governance. Even though the introduction of a number of rules, codes and practices of corporate governance have been made, the global economic crisis has shown that more effective application of the standards of corporate governance is necessary. Corporate governance issues are especially important in transition economies, since these countries do not have the long-established financial institution infrastructure to deal with corporate governance issues. Before 1989 there was no need to discuss corporate governance issues, because all enterprises were owned by the state and there were no shareholders. All that has changed. This paper discusses the importance of corporate governance, with special reference to transition economies. Directors, owners and corporate managers have started to realize that there are benefits that can accrue from having a good corporate governance structure. Good corporate governance helps to increase share price and makes it easier to obtain capital. International investors are hesitant to lend money or buy shares in a corporation that does not subscribe to good corporate governance principles. Transparency, independent directors and a separate audit committee are especially important.

  6. Good Corporate Governance in Manufacturing Companies Tax Avoidance

    Directory of Open Access Journals (Sweden)

    Uun Sunarsih

    2016-10-01

    Full Text Available This study aimed to examine the effect of good corporate Governance against tax avoidance peroxided by the book tax gap and corporate governance is peroxided by institutional ownership, managerial ownership, independent board, audit committee and audit quality. This study was performed on companies listed on the Stock Exchange on the observation period 2011-2014. The method used is purposive sampling and obtained a sample of 10 companies. The data used is secondary data that can be downloaded through www.idx.co.id and www.sahamok.com.  The results showed that the variables of the board of managerial ownership, independent directors, audit committee, and audit quality effect on tax avoidance while institutional ownership variable has no effect on tax avoidance. It is suspected that institutional ownership as a monitoring tool in any decision taken by the manager does not support an optimal oversight of management performance related to tax evasion.DOI: 10.15408/etk.v15i2.3541

  7. Identifying influential directors in the United States corporate governance network.

    Science.gov (United States)

    Huang, Xuqing; Vodenska, Irena; Wang, Fengzhong; Havlin, Shlomo; Stanley, H Eugene

    2011-10-01

    The influence of directors has been one of the most engaging topics recently, but surprisingly little research has been done to quantitatively evaluate the influence and power of directors. We analyze the structure of the US corporate governance network for the 11-year period 1996-2006 based on director data from the Investor Responsibility Research Center director database, and we develop a centrality measure named the influence factor to estimate the influence of directors quantitatively. The US corporate governance network is a network of directors with nodes representing directors and links between two directors representing their service on common company boards. We assume that information flows in the network through information-sharing processes among linked directors. The influence factor assigned to a director is based on the level of information that a director obtains from the entire network. We find that, contrary to commonly accepted belief that directors of large companies, measured by market capitalization, are the most powerful, in some instances, the directors who are influential do not necessarily serve on boards of large companies. By applying our influence factor method to identify the influential people contained in the lists created by popular magazines such as Fortune, Networking World, and Treasury and Risk Management, we find that the influence factor method is consistently either the best or one of the two best methods in identifying powerful people compared to other general centrality measures that are used to denote the significance of a node in complex network theory.

  8. The Corporate Governance of Privately Controlled Brazilian Firms

    Directory of Open Access Journals (Sweden)

    Érica C. R. Gorga

    2009-09-01

    Full Text Available We provide an overview of the corporate governance practices of Brazilian public companies, based primarily on an extensive 2005 survey of 116 companies. We focus on the 88 responding Brazilian private firms which are not majority owned by the state or a foreign company. We identify areas where Brazilian corporate governance is relatively strong and weak. Board independence is an area of weakness: The boards of most Brazilian private firms are comprised entirely or almost entirely of insiders or representatives of the controlling family or group. Many firms have zero independent directors. At the same time, minority shareholders have legal rights to representation on the boards of many firms, and this representation is reasonably common. Financial disclosure lags behind world standards. Only a minority of firms provide a statement of cash flows or consolidated financial statements. However, many provide English language financial statements, and an English language version of their website. Audit committees are uncommon, but many Brazilian firms use an alternate approach to ensuring financial statement accuracy – establishing a fiscal board. A minority of firms provide takeout rights to minority shareholders on a sale of control. Controlling shareholders often use shareholders agreements to ensure control.

  9. An Overview of Corporate Governance Practices of Selected Islamic Banks

    Directory of Open Access Journals (Sweden)

    Zainab Belal

    2016-05-01

    Full Text Available Complying with Corporate Governance (CG standards is not mandatory but with collapse of many financial institutions, compliance with high standards of CG in banking operation has become a necessity. This is due to the fact that many banks and companies worldwide collapsed as a result of poor corporate governance practices such as Bank of Credit and Commerce International (BCCI 1991, Barings Bank 1995, Lehman Brothers 2008, Enron 2001, WorldCom 2001, etc. Therefore, the objective of this paper is to examine and ascertain whether present level of CG standards practiced by Islamic banks is adequate to prevent or safeguard the banks from collapsing. The approach of the study is to evaluate the effectiveness of board and the various board committees utilizing data published in financial statement of the selected banks. The methodology used in this paper is analytical descriptive to reach accurate results and as more appropriate approach with this research. The study finds out that the selected banks comply with CG standards adopted; however such compliance does not mean that the board, the board committees will be constantly reliable. Therefore, instilling the Islamic values such as the concepts of ih}sân, honesty, and accountability is paramount to prevent CG failures and protect/safeguard the banks from collapsing.

  10. The Significance of the 2014 Corporate Governance Code of the Bank of Russia

    Directory of Open Access Journals (Sweden)

    Anna Vladislavovna Shashkova

    2014-01-01

    Full Text Available The present article focuses on corporate governance in Russia, as well as on the approval in 2014 of the Code of Corporate Governance by the Bank of Russia and by the Russian Government. The article also provides the concept of the famous foreign term Compliance. Compliance is a system based on binding rules of conduct contained in the regulations which are mandatory for the company. In order to fulfill best practices and implement local acts on the most important issues for the company, many foreign companies as well as large Russian companies have formed special Compliance departments. Taking into account such international experience and international corporate governance principles the Bank of Russia has elaborated the Corporate Governance Code, approved by the Russian Government in February 2014. Corporate Governance Code regulates a number of the most important issues of corporate governance such as shareholders'rights and fair treatment of shareholders; Board of Directors; Corporate Secretary of the Company; system of remuneration of members of the Board of Directors, executive bodies and other key executives of the company; system of risk management and internal control; disclosure of information about the company, the information policy of the company; major corporate actions. The most important issue which is analyzed by the author is the problem of the composition of the Board of Directors: the presence of independent directors in the company. According to the author the new Corporate Governance Code reflects the latest trends as well as the current situation with corporate governance in Russia today.

  11. KEMAMPUAN RASIO KEUANGAN DAN CORPORATE GOVERNANCE MEMPREDIKSI PERINGKAT OBLIGASI PADA PERUSAHAAN CONSUMER GOODS

    Directory of Open Access Journals (Sweden)

    N. Agus Sunarjanto

    2017-03-01

    Full Text Available This study aimed to examine empirically financial ratios (leverage, liquidity, solvability, and profitabilityand corporate governance for distinguishing bond rating company in investment grade and non-investmentgrade companies. The population of this research was consumer goods companies listed at Indonesia StockExchange. The research used purposive sampling, polls financial data and analysis with logistic regression.Research finding indicated that corporate governance and financial ratios were the current ratio (CR, longtermdebt ratio (LTDR, total assets and turnover (TAT, return on assets (ROA, independent commissioners(kind, managerial ownership (KM, institutional ownership and audit quality (KA that were simultaneouslyable to predict bond rating company as investment grade companies and non investment grade companies.

  12. An Analysis of the Treatment of Corporate Influence on Government by United States History and American Government High School Textbooks

    Science.gov (United States)

    Neumann, Richard

    2014-01-01

    This article reports on an investigation to explore the possibility that ideology might be expressed in the treatment of corporate influence on federal government by social studies textbooks. Two textbooks were examined in the study--United States history and American government. Corporate influence involves activities that affect election and…

  13. THE CRITICAL ANALYSIS OF LIMITED SOUTH ASIAN CORPORATE GOVERNANCE STANDARDS AFTER FINANCIAL CRISIS

    OpenAIRE

    Dinh Tran Ngoc Huy

    2015-01-01

    After the recent global crisis, corporate scandals and bankruptcy in US and Europe, there is some certain evidence on weak corporate governance, risk management and audit system. The 2009 India Code of Corporate Governance also revealed that during the crisis time, there are certain weaknesses although corporate structure is fairly durable. Hence, this paper chooses a different analytical approach and among its aims is to give some systematic opinions. First, it classifies limited South Asian...

  14. The Relationship between Entrepreneurship and Corporate Governance The Case of Romanian listed Companies

    Directory of Open Access Journals (Sweden)

    Nadia Albu

    2015-02-01

    Full Text Available This paper offers an investigation at a micro-level of entrepreneurship in the business environment. More precisely, we conduct an empirical study of the relationship between corporate entrepreneurship and corporate governance in the case of the Romanian nonfinancial listed companies. We use publicly-available information (financial statements, annual reports and we mobilize a framework derived from the agency and signalling theories to interpret our findings from the statistical analysis based on correlations. Our results suggest that there are differences between industries and between the companies included or not in the new BET-TR index in terms of corporate entrepreneurship and corporate governance practices and disclosures. Agency theory partly explains our findings. Specifically, some corporate governance mechanisms, i.e. board independence and institutional ownership, are associated in our sample with corporate entrepreneurship. We thus document that corporate governance as a controlling and management technique fosters corporate entrepreneurship in Romanian companies. Signalling theory assumptions are generally not verified for the companies in our study. There are only a few associations between high values of corporate entrepreneurship and corporate entrepreneurship disclosures, and even fewer between corporate governance practices and corporate governance disclosures.

  15. Characteristics of the Corporate Bank Governance System in Bosnia and Herzegovina

    Directory of Open Access Journals (Sweden)

    Branko Matić

    2010-07-01

    Full Text Available The term ‘corporate governance’ stands for a set of relations between management, large and small shareholders and other interest groups. A good corporate governance system is the basic postulate of sustainable economic growth, increase in economic system efficiency and a guarantee for easier access to sources of foreign capital. Ownership concentration is a significant internal mechanism of corporate governance because it greatly defines the relationship between owner and manager. There are two types of ownership concentration: highly dispersed ownership, that is, low ownership concentration, and very high ownership concentration. These concentration differences affect the corporate governance system itself, so there is a difference between a closed corporate governance system in the situation of high ownership concentration and an open corporate governance system where the situation is the reverse. The form of the system affects how the governing body is formed and structured, as well as how it operates and conducts its business policies. Within the financial system of Bosnia and Herzegovina, the banking system is dominant. An analysis of the corporate governance system has shown a relationship between ownership concentration and the form of the corporate governance system itself. The banking sector is predominantly owned by foreign companies and is characterized by a high ownership concentration. The fact that the corporate governance system is closed affects the election of members to the governing body and their work in enforcing business policies.

  16. THEORETICAL AND PRACTICAL APPROACHES REGARDING THE ADOPTION OF CORPORATE GOVERNANCE CODES

    Directory of Open Access Journals (Sweden)

    Sorin Nicolae Borlea

    2013-09-01

    Full Text Available In the European Union, the concept of corporate governance began to emerge more clearly after 1997, when most countries have however, voluntarily adopted corporate governance codes. The impulse of adopting these codes consists in the financial scandals related to the failure of the British companies listed on the stock exchange. Numerous scandals involving big companies such as Enron, WorldCom, Parmalat, Xerox, Merrill Lynch, Andersen and so on, conduct to a lack of investors’ confidence. These crises that have started to alarm governments, supervisory authorities, companies, investors and even the general public because of the fragility of the corporate governance’s system, highlight the need to rethink its structures. The process of adapting the corporate governance provisions in order to ensure transparency, responsibility and fair treatment of shareholders has resulted in the development of Corporate Governance Principles by the Organization for Economic Cooperation and Development (OECD. In order to asses these principles, it has started to identify the common elements of codes, one the most effective practice models of governance. Once the benefits of corporate governance practices have been understood and assimilated by the developed country, the developing countries (also Romania have begun to adopt "the best practices" in corporate governance, especially because this need is acutely felt in the changes required by the transition to a market economy. Our article describes the origins of the corporate governance, the concept and evolution of the corporate governance code at an international level, European level and also at a Romanian level.

  17. DOE hands over uranium enrichment duties to government corporation

    International Nuclear Information System (INIS)

    Simpson, J.

    1993-01-01

    In an effort to renew the United States' competitiveness in the world market for uranium enrichment services, the Department of Energy (DOE) is turning over control of its Paducah, KY, and Portsmouth, OH, enrichment facilities to a for-profit organization, the United States Enrichment Corp. (USEC), which was created by last year's Energy Policy Act. William H. Timbers, Jr., a former investment banker who was appointed acting CEO in March, said the Act's mandate will mean more competitive prices for enriched reactor fuel and greater responsiveness to utility customers. As a government corporation, USEC, with current annual revenues estimated at $1.5 billion, will no longer be part of the federal budget appropriations process, but will use business management techniques, set market-based prices for enriched uranium, and pay annual dividends to the US Treasury-its sole stockholder-from earnings. The goal is to finish privatizing the corporation within two years, and to sell its stock to investors for an estimated $1 to $3 billion. USEC's success will depend in part on developing short- and long-term marketing plants to help stanch the flow of enriched-uranium customers to foreign suppliers. (DOE already has received notice from a number of US utilities that they want to be let out of their long-term enrichment contracts as they expire over the next several years).USEC's plans likely will include exploring new joint ventures with other businesses in the nuclear fuel cycle-such as suppliers, fabricators, and converters-and offering a broader range of enrichment services than DOE provided. The corporation will have to be responsive to utilities on an individual basis

  18. Corporate Governance and Firm Performance: An Analysis of Family and Non-family Controlled Firms

    OpenAIRE

    Qaiser Rafique Yasser

    2011-01-01

    The aim of this study is to scrutinise the impact of corporate governance mechanism on the performance of family and non-family controlled firms in Pakistan. It has been found that a corporate governance structure influences the performance of both family and non-family controlled companies significantly. However all corporate governance mechanisms are not significant as the significant variables differ between family and non-family controlled companies. Thus, regulators need to be cautious i...

  19. Corporate governance and earnings quality : evidence from the Malaysian banking sector

    OpenAIRE

    Siniah, Thangamany

    2017-01-01

    This thesis investigates whether corporate governance conformance by Malaysian banks improves their financial reporting quality. It is motivated by the controversies surrounding corporate governance reforms and the calls for systematic research on its efficacy in the post-reform period. Malaysian banks have been subject to international standards of corporate governance since before and after the 1997–1998 Asian Financial Crisis. Malaysia’s common-law tradition, greater level of financial and...

  20. The interaction between country-level and firm-level corporate governance

    OpenAIRE

    Jonnergård, Karin; von Koch, Christopher; Nilsson, Ola; Jönsson, Micael

    2013-01-01

    In this exploratory study, we analyse the relationship between country-level corporate governance and firm-level corporate governance. Although prior research has shown that corporate governance at both levels impacts firm performance, findings have been inconsistent as to whether these levels are complements to or substitutes for each other. By using two extensive datasets this study is able two bring knowledge of the interaction between the levels. The findings reveal that there exists a po...

  1. The Impact of Corporate Governance on the Cost of Equity: Empirical Evidence from Pakistani Listed Companies

    OpenAIRE

    Syed Zulfiqar Ali Shah; Safdar Ali Butt

    2009-01-01

    This study examines the impact of the quality of corporate governance, as measured by a specially constructed corporate governance index, on the expected cost of equitycalculated using the capital asset pricing model (CAPM) approach. A total of 114 listed companies were investigated to analyze the relationship between the two variables for the period 2003 to 2007. The quality of corporate governance was measured by assigning weights to a set of related variables, although these variables were...

  2. What is the Relation (if any) Between a Firm's Corporate Governance Arrangements and its Financial Performance?

    OpenAIRE

    Wessels, Roberto E.; Wansbeek, Tom J.

    2014-01-01

    This paper presents estimates from a latent variables model of the relation between corporate governance and financial performance. We use data on large US corporations to estimate the correlation, conditional on the firms' investment opportunity set, between governance and performance. We find that this correlation is statistically speaking zero. This result is consistent with the equilibrium view (Demsetz, 1983) in which firms optimize corporate governance arrangements subject to the constr...

  3. CORPORATE GOVERNANCE IN FINANCIAL INSTITUTIONS: AN APPLICATION ON THE ISTANBUL STOCK EXCHANGE

    OpenAIRE

    MELEK ACAR BOYACIOGLU; YUNUS EMRE AKDOGAN

    2010-01-01

    Corporate governance forms a system in which the objectives of the firm is determined, and points out the ways to achieve these aims and how performance is to be assessed. An efficient corporate governance system both at firm-level and economy in general will provide trust, which is necessary for the market economy to operate properly. Especially negative effects of the problems on economy which can result from deficiencies in the corporate governance of financial institutions urge that speci...

  4. The Politics of Stakeholder Influence in Corporate Environmental Governance

    DEFF Research Database (Denmark)

    Backer, Lise

    2006-01-01

    I contribute in this article to descriptive stakeholder engagement theory by conceptualising a number of new internal influence strategies that engaged secondary stakeholders can use in their new face-to-face interactions with the corporations. These internal stakeholder influence strategies should...... environmental governance practices. The Shell top management is to this end appearing sincere in the way they monitor (Meyer and Rowan, 1977) the progress in giving secondary stakeholders (Clarkson, 1995) access to environmental information and to environmental decision-making in Shell. Based on the Shell case...... be seen as adding to the list of external stakeholder influence strategies (e.g. Frooman, 1999) that secondary stakeholders can use in their traditional role of operating from the outside....

  5. The Politics of Stakeholder Influence in Corporate Environmental Governance

    DEFF Research Database (Denmark)

    Backer, Lise

    I contribute in this article to descriptive stakeholder engagement theory by conceptualising a number of new internal influence strategies that engaged secondary stakeholders can use in their new face-to-face interactions with the corporations. These internal stakeholder influence strategies should...... environmental governance practices. The Shell top management is to this end appearing sincere in the way they monitor (Meyer and Rowan, 1977) the progress in giving secondary stakeholders (Clarkson, 1995) access to environmental information and to environmental decision-making in Shell. Based on the Shell case...... be seen as adding to the list of external stakeholder influence strategies (e.g. Frooman, 1999) that secondary stakeholders can use in their traditional role of operating from the outside....

  6. CASH HOLDING, GOOD CORPORATE GOVERNANCE AND FIRM VALUE

    Directory of Open Access Journals (Sweden)

    Prana Wahyu Nisasmara

    2016-12-01

    Full Text Available This research aims to understand the influence of profitability, capital structure, cash holding, and GCG (Good Corporate Governance on firm value.  The samples of this study were the property sector and real estate companies listed on Indonesia Stock Exchange (IDX in the period of 2008-2013. The data used from the annual report company. The methods of data analysis were multiple regression models and analyzed using IBM SPSS software. The results of this study are profitability has no influence on firm value, capital structure has positive influence on firm value, cash holding has no influence on firm value and GCG a has a positive influence on firm value.

  7. Good Corporate Governance Implementation and Performance of Civil Servant

    Directory of Open Access Journals (Sweden)

    Muhammad Hasan

    2016-08-01

    Dalam rangka mencapai visi dan misi, setiap rumah sakit harus menjalankan tata kelola perusahaan yang baik (Good Corporate Governance/GCG. Penerapan GCG sendiri bertujuan untuk meningkatkan kinerja pegawai secara optimal, yang akhirnya akan meningkatkan kinerja organisasi. Penelitian ini bertujuan untuk menganalisis hubungan penerapan prinsip-prinsip GCG terhadap kinerja pegawai negeri sipil (PNS Rumah Sakit Umum Lapangan Natuna Kabupaten Kepulauan Anambas. Jenis penelitian ini adalah deskriptif analitik dengan desain potong lintang pada 56 PNS. Pengumpulan data dilakukan pada tahun 2012 dengan kuesioner terstruktur. Digunakan analisis dengan uji kai kuadrat dan regresi logistik, dan untuk penyederhanaan model dilakukan eliminasi terhadap faktor perancu dengan menggunakan metode backward stepwise. Penelitian ini menemukan dua variabel yang signifikan berhubungan dengan kinerja PNS, yaitu penerapan prinsip fairness dan penerapan prinsip transparancy. Keduanya merupakan variabel yang paling berhubungan dengan kinerja pegawai negeri sipil.

  8. Failures of Corporate Governance in Housing Cooperatives – Case Study

    Directory of Open Access Journals (Sweden)

    Waldemar Walczak

    2013-09-01

    Full Text Available Purpose: The purpose of this paper is a discussion and in-depth analysis of the legal and organizational circumstances associated with the activities of Supervisory Boards in housing cooperatives.Methodology: A critical analysis of the existing legislation, own analytical analysis of the source documents, supplemented by conclusions and observations formulated on the basis of a case study, for the preparation of which information has been used obtained from primary sources in the form of documents of the analyzed housing cooperative and information obtained through participant observation.Findings: What has a decisive impact on the mechanisms of corporate governance in housing cooperatives are the direct behaviors of Supervisory Board members, as well as the lack of awareness and involvement of the residents, who do not want to actively participate in the life of the cooperative. A diagnosis is presented of the most important factors that infl uence the actual operations of the analyzed Supervisory Board. While the current legal regulations make it possible to ensure effective and proper control as well as adequate supervision over the activities of cooperatives.Originality: The paper enriches the theory of management sciences in terms of a wider perception of the term corporate governance in relation to other organizations than companies. The presented methodological approach that is the basis for a comprehensive and thorough inspection of the activities of the Management Board can be used in other cooperatives as well. In the literature on the subject no similar analysis, supported by the results of own analytical research, had been found.

  9. Corporate social responsibility and corporate governance in Indonesian public listed companies

    Directory of Open Access Journals (Sweden)

    Ika Siti Rochmah

    2017-01-01

    Full Text Available This study aims to investigate whether theree has been a change in the level of corporate social responsibility (CSR disclosure and to examine whether corporate governance attributes influence CSR disclosure in corporate annual report of Indonesian public listed companies(PLCs. The annual reports of 115 PLC for two years (2011 and 2012 were analysed using content analysis. Multiple regression analysis was utilized to determine factors influencing CSR disclosure in annual reports. Consistent with expectations, the paired sample t-test showed that there was an increase (significant at the 1 percent level in the extent of CSR disclosure. The multiple regression analysis revealed that audit committee effectiveness and company’s size were positively associated with the extent of CSR disclosure (significant at 5 per cent level. The findings appear to suggest that The Indonesian Capital Market and Financial Institutions Supervisory Agency (Bapepam LK effforts in promoting CSR through the release of Regulation No X.K.6 in 2012 have had some positive impact on CSR disclosure in annual report. The results also suggest that the involvement of audit committee through its effectiveness in overseeing company’s financial reporting could lead to better concern in corporate social activities and hence disclosure in annual reports. This study however, has limitation that should be considered in interpreting the results. The regression model documented an R2 of 21.4 percent, which indicates that almost 80 percent of factors influencing CSR disclosure in Indonesian PLC have not been captured by the model. These other factors may perhaps be indentified in the next research.

  10. CORPORATE GOVERNANCE MECHANISMS AND EARNINGS MANAGEMENT: A STATE OF THE ART

    Directory of Open Access Journals (Sweden)

    Vladu Alina Beattrice

    2015-07-01

    Full Text Available Extant research have for long identified that corporate governance has the potential to affect both financial performance and the opportunistic behavior of managers. Studies on the influence of corporate governance mechanisms on firm performance do not often assess the possibility that reported earnings can be misrepresented by managers with the scope of achieving various objectives. This paper examines the relationship between corporate governance mechanisms and earnings management practices. According to prior empirical studies in the field, corporate governance can reduce the extent of manipulative practices and increase the quality of financial reporting. As stated above, this study examined prior research investigating different corporate governance mechanisms that can have negative impact on earnings management practices. In this regard the legal system and the effects of takeover were examined as external mechanisms of corporate governance on manipulative behavior of managers. Internal mechanisms of corporate governance were also assessed. Board independence was found to enhance certain monitoring behaviors of managers while an audit committee can oversee the internal control for financial reporting and the quality of financial information. This paper contributes to corporate governance literature by providing detailed reviews of different corporate governance mechanisms on the most documented practice of creative accounting: earnings management. Limits of the current research are explored as well as the scope for future research.

  11. Udviklingen i danske børsnoterede bankers corporate governance karakteristika under bankkrisen

    DEFF Research Database (Denmark)

    Raaballe, Johannes; Schwabach, Nadja

    Danske børsnoterede bankers corporate governance karakteristika er blevet væsentligt forbedrede under den danske bankkrise. Den ene grund hertil er, at de banker, der mistede navneskiltet under bankkrisen, havde dårligere corporate governance karakteristika end de banker, der overlevede bankkrisen....... Den anden grund skal findes i, at de overlevende banker forbedrede deres corporate governance karakteristika væsentligt under bankkrisen – hvilket skal ses i lyset af den ilde medfart, som bankerne med dårlige corporate governance karakteristika fik under bankkrisen. Det er således et glædeligt...

  12. An Internal Audit Perspective on Differences between European Corporate Governance Codes and OECD Principles

    Directory of Open Access Journals (Sweden)

    Raluca Ivan

    2015-12-01

    Full Text Available The main purpose of this research is to realize an analysis from an internal audit perspective of European Corporate Governance Codes, in regards with Organization for Economic Cooperation and Development – OECD Principles of Corporate Governance. The research methodology used a classification of countries by legal regime, trying to obtain a global view over the differences between the European corporate governance codes and the OECD Principles provisions, from internal audit’s perspective. The findings suggest that the specificities of internal audit function when studying the differences between European Corporate Governance Codes and OECD Principles lead to different treatment.

  13. Practical application of corporate governance principles in a developing country: A case study

    Directory of Open Access Journals (Sweden)

    Wanjiru Gachie

    2017-03-01

    Full Text Available The importance of examining corporate governance in organisations cannot be overemphasised. Corporate governance failure which has resulted from weak corporate governance systems has highlighted the need for research aimed at contributing to the improvement and reform of corporate governance at business, national and international level. A review of corporate governance mechanisms and their practical application in two retail companies in South Africa was undertaken. The research question that informed the study was: What is the nature of corporate governance mechanisms in the South African retail sector? The research design entailed analysis of secondary data, namely Annual Reports and other pertinent documents, and document analysis was used to show what is accessible to the ordinary share/stake-holder and what is not. Data analysis was conducted both qualitatively and quantitatively. With regard to corporate governance mechanisms, the results and discussion show that the two companies have not yet complied with the King II and III codes. Recommended strategies to strengthen corporate governance mechanisms in the South African retail sector should include a commitment to risk disclosure and revamping of the corporate governance structure of the ‘whole’ system.

  14. Corporate governance in the Middle East – Which way to go?

    Directory of Open Access Journals (Sweden)

    Udo C. Braendle

    2013-03-01

    Full Text Available The Interest in corporate governance is not a new phenomenon in the transition economies of the Middle East, but corporate governance is especially important in these economies since these countries do not have the long-established (financial institutional infrastructure to deal with corporate governance issues. This article focusses on a cross-country analysis of the most important topics in corporate codes – shareholder rights, board systems and executive remuneration. By analysing three representative MENA countries, we discuss if codes based on directives or standards are better for these economies. The introduction of corporate governance codes for these economies seems useful but should not rely on broad standards but on legally enforced binding rules accounting for the discussion of directives versus standards. The paper argues against the blindfold implementation of corporate governance codes and argues for country specific solutions

  15. Implementation of the corporate governance code as a measure of an efficiency increasing process in corporate management

    Directory of Open Access Journals (Sweden)

    Ana SPÎNU

    2017-03-01

    Full Text Available The majority of leaders of economic entities in Moldova should recognize the role of effective corporate management for the proper development of their activities. Therefore, to ensure obtaining competitive advantage, the leaders must accept the fact that the policy of improvement of corporate management becomes a major component of enterprise development, and using the principles and best practices of corporate governance are already highlighted both at the level of their enterprises and at international level. Therefore, the authors of the article present some measures to streamline corporate management.

  16. Corporate social responsibility, governance and stakeholders: a bank in the upbeat of the crisis

    NARCIS (Netherlands)

    de Graaf, Frank Jan

    2016-01-01

    Purpose: Using the global financial crisis as a critical event and based on institutional theory and stakeholder theory, this paper aims to explore the relationship between corporate governance and corporate social responsibility (CSR). The question is how stakeholders can influence corporate

  17. Determining firm characteristics and the level of voluntary corporate governance disclosures among Malaysian listed property companies

    Directory of Open Access Journals (Sweden)

    Talpur Shabana

    2018-01-01

    Full Text Available This study examined the level of voluntary corporate governance disclosures and the influence of firm characteristics (i.e., firm size, firm age, and firm market listing on the level of these disclosures among Malaysian property listed companies. The check-list to measure the voluntary corporate governance disclosures was adopted from Malaysian corporate governance index 2011 by Minority Shareholder Watchdog Group (MSWG. The voluntary corporate governance disclosure practices and firm specific characteristics were obtained from annual reports of property listed companies on Bursa Malaysia for the period of 2012 to 2015. The findings suggested an improving voluntary corporate governance reforms in Malaysia. However, the firm size was found as an inflicting factor in determining the level and quality of voluntary corporate governance disclosure practices. On the contrary, the results found were contradicting the hypothesis related to firm age and firm market listing, as no relation of voluntary corporate governance disclosures and firm age and firm market listing. The study has made an interesting contribution toward the disclosure and corporate governance by contributing in understanding the importance of quality disclosure and good governance practices.

  18. Corporate governance attributes, firm characteristics and the level of corporate disclosure: Evidence from the Indian listed firms

    Directory of Open Access Journals (Sweden)

    Sunil Nandi

    2013-01-01

    Full Text Available This study investigates the association between firm characteristics, corporate governance attributes and the level of corporate disclosure of listed firms in India. The research paper has been based on a sample of 60 firms listed in the Bombay Stock Exchange (BSE / National Stock Exchange (NSE during the study period from 2000-01 to 2009-10. The study has used the Standard & Poor (2008 model for measuring the level of corporate disclosure. To examine the association between explanatory variables and the level of corporate disclosure, multiple regression model has been used. The results suggest a positive relationship between board size, ratio of audit committee members to total board members, family control, CEO duality, firm size, profitability, liquidity and the extent of corporate disclosure. However, the degree of corporate disclosure is negatively related to board composition, leverage and age of the firm.

  19. Pengaruh Implementasi Good Corporate Governance terhadap Permodalan dan Kinerja Perbankan Di Indonesia: Manajemen Risiko Sebagai Variabel Intervening

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    Ika Permatasari

    2014-05-01

    Full Text Available Regulation of Bank Indonesia No. 8/4/PBI/2006 as amended by regulation No. 8/14/2006 about implementation of corporate governance become be a proof why corporate governance important in the banking sector. The purpose of this study was to determine the influence of corporate governance on risk management, bank capital, and bank performance in Indonesia.  Implementation on corporate governance is measured by a composit score of corporate governance which is the result of bank self assessment. Risk management is measured by Non Performing Loans (NPL. Bank capital is measured by Capital Adequacy Ratio (CAR and bank performance is measured by Return On Equity (ROE. The result showed that corporate governance affect risk management, corporate governance and risk management does not affect bank capital, and corporate governance do not affect bank performance, but risk management affect bank performance. Thus the risk management can be an intervening variable between corporate governance and bank performance.

  20. Evolving legal framework of corporate governance in India – issues and challenges

    Directory of Open Access Journals (Sweden)

    Pankaj Kumar GUPTA

    2014-12-01

    Full Text Available Investors now started considering corporate governance as very essential factor before investment especially in view of the unstable environment in the securities market. It is considered that good corporate governance inspires, strengthens and maintains investor’s confidence by ensuring company’s commitment to higher growth and profits. Corporate Governance has become a major concern for global economies particularly the transition world. Sound corporate governance is extremely important for transition economies for creation of the key institutions, the private corporations, which drive the successful economic transformation to a market based economy, effective allocation of capital and development of financial markets, attracting foreign investment and making a contribution to the process of national development. The Corporate Governance issue has emerged primarily because of the growing importance of corporations in the national economies and their interaction with the international agencies and institutions. This paper presents the current scenario of corporate governance in India, the evolving legal framework and identified the major issues and challenges that need to be addressed to implement an effective system of corporate governance in India.

  1. FORMATION OF CORPORATE GOVERNANCE PRINCIPLES FOR SOCIAL RESPONSIBILITY

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    D. Bayura

    2013-09-01

    Full Text Available The theoretical and methodological aspects of perfection of the system of corporate management domestic joint-stock companies are considered on principles of justice, transparentnosti, accountability and corporate social responsibility taking into account globalization.

  2. Transnational politics and translocal governance: The politics of corporate responsibility

    OpenAIRE

    Banerjee, S. B.

    2017-01-01

    In this article, I provide a critical analysis of the politics of corporate social responsibility. I argue that corporate social responsibility is a strategy that enables multinational corporations to exercise power in the global political economy. Using the global extractive industries as a context, I focus on conflicts between communities, the state and multinational corporations that arise owing to the negative social and environmental impacts of mining and extraction. In particular, I ana...

  3. Using an International Medical Advisory Board to guide clinical governance in a corporate refractive surgery model.

    Science.gov (United States)

    Vukich, John A

    2009-07-01

    To describe the role played by the International Medical Advisory Board (IMAB) in clinical and corporate governance at Optical Express, a corporate provider of refractive surgery. A review of goals, objectives, and actions of the IMAB. The IMAB has contributed to study design, data analysis, and selection of instruments and procedures. Through interactions with Optical Express corporate and clinical staff, the IMAB has supported management's effort to craft a corporate culture focused on continuous improvement in the safety and visual outcomes of refractive surgery. The IMAB has fashioned significant changes in corporate policies and procedures and has had an impact on corporate culture at Optical Express.

  4. Impact of Innovation and Places on Corporate Governance the Case of Wind Turbine Production

    DEFF Research Database (Denmark)

    Gunnarsson, Jan Sture Gunnar; Cikusa, Nikola Stefan; Hansen, Anca Daniela

    2017-01-01

    We examine how corporate governance changes over the industrial life cycle when places commit firms to certain governance structures. Focus is on industries where a significant part of the economic value is created by technological knowledge changing the conditions for corporate financing...

  5. An exploration of the role of records management in corporate governance in South Africa

    Directory of Open Access Journals (Sweden)

    Mpho Ngoepe

    2013-08-01

    Full Text Available Background: Corporate governance maybe approached through several functions such as auditing, an internal audit committee, information management, compliance, corporate citizenship and risk management. However, most organisations, including governmental bodies, regularly exclude records management from the criteria for a good corporate-governance infrastructure. Proper records management could be the backbone of establishing good corporate governance.Objectives: Utilising the King report III on corporate governance as a framework, this quantitative study explores the role of records management in corporate governance in governmental bodies of South Africa.Method: Report data were collected through questionnaires directed to records managers and auditors in governmental bodies, as well as interviews with purposively selected auditors from the Auditor-General of South Africa. Data were analysed using various analytical tools and through written descriptions, numerical summarisations and tables.Results: The study revealed that records management is not regarded as an essential component for corporate governance. Records management is only discussed as a footnote; as a result it is a forgotten function with no consequences in government administration in South Africa. The study further revealed that most governmental bodies have established internal audit units and audit committees. However, records-management professionals were excluded from such committees.Conclusion: The study concludes by arguing that if records management is removed as a footnote of the public-sector operations and placed in the centre of operational concern, it will undoubtedly make a meaningful contribution to good corporate governance.

  6. Corporate governance disclosure practices and protection of shareholders in Saudi Arabia

    OpenAIRE

    Al-Habshan, Khalid Saad

    2015-01-01

    This thesis was submitted for the degree of Doctor of Philosophy and awarded by Brunel University London. Corporate governance in general has become the new crucible in which corporations are tested and declared worthy of the trust of international investors. In an age when countries compete in a global economy, compliance with corporate governance standards has become crucial to the survival of businesses. Especially in the Middle East, which is culturally and politically distant from the...

  7. Corporate Governance and Employees in Germany: Changing Linkages, Complementarities, and Tensions

    OpenAIRE

    Gregory Jackson; Martin Hopner; Antje Kurdelbusch

    2004-01-01

    This article examines institutional linkages between corporate governance and labour management in Germany. German corporate governance was characterised by the importance of banks, ownership concentration, long-term investment, and stable corporate networks. This system displayed important complementarities with stable long-term employment, investment in worker training, flexible quality production, low variability and dispersion in pay, and cooperative industrial relations during the post-w...

  8. Optimizing the Bankruptcy Rates of Corporate Enterprises

    Directory of Open Access Journals (Sweden)

    Vasyliev Oleksii V.

    2017-10-01

    Full Text Available An important issue in forecasting the probability of bankruptcy is the formation of an optimal set of financial-economic performance indicators with high forecast capacity. The article is aimed at optimizing the indicator system, which can be used to build a model for diagnosing the probability of corporate failures. The known methods and models for diagnosing bankruptcy were analyzed and it was found that they were based on the financial performance indicators, which use empirical data only. A set of financial performance indicators has been formed that can be used to forecast probability of corporate bankruptcy or to plan for anti-crisis measures. The practical significance of the study suggests developing a theoretical basis for solving issues arising in the diagnostics of probability of bankruptcy of corporate enterprises. Prospect for further research in this direction is to develop an integrated indicator using the fuzzy logic theory, taking into account the qualitative and quantitative performance indicators of enterprise.

  9. DETEKSI MANAJEMEN LABA MELALUI DISCRETIONARY REVENUE DAN AKTIFITAS RIIL: IMPLIKASI PENERAPAN GOOD CORPORATE GOVERNANCE

    Directory of Open Access Journals (Sweden)

    Istianingsih Istianingsih

    2016-12-01

    Keywords: Good Corporate Governance, Earnings Management, Real Activity Management, Discretionary  Revenue.   Abstrak. Penerapan good corporate governance (GCG diharapkan dapat meningkatkan transparansi dan akuntabilitas perusahaan yang diharapkan dapat mendeteksi manajemen laba yang sedang terjadi di perusahaan. Penelitian ini bertujuan untuk menganalisis pengaruh good corporate governance terhadap manajemen laba berdasarkan discretionary revenue dan real activity estimation models. Sampel sebanyak 62 perusahaan yang tercatat di Bursa Efek Indonesia (BEI selama periode 2011-2014. Analisis data dilakukan dengan menggunakan regresi linier. Penelitian kami menemukan bahwa good corporate governance secara positif mempengaruhi manajemen laba melalui aktivitas nyata manajemen laba. Namun, indeks GCG tidak berpengaruh terhadap manajemen laba dilakukan melalui model pendapatan descretionary. Namun, hasil penelitian ini konsisten dengan Zang (2011 bahwa pasca-SOX, penerapan GCG akan meningkatkan manajemen laba melalui aktivitas nyata. Kata Kunci: Good Corporate Governance; Manajemen Laba; Real Activity Management, Discretionary Revenue.

  10. Does corporate governance affect dividend policy: Evidence from ASEAN emerging market

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    Gatot Nazir Ahmad

    2015-04-01

    Full Text Available This research-work uses a survey which comes from three different countries in ASEAN region i.e Indonesian, Thiland and Malaysian. This work integrate whole data from above all countries to examine whether firms that do corporate governance practising will pay higher dividends. This study has two issues: how regulation of stock exchange affects good corporate governance and how corporate governance affects value of the firm. Using OLS regression, our finding shows that good corporate governance practices has positive sign to dividend pay out. Our finding may contribute to corporate governance literature.First, result finding support Jensen’s (1986 that states free csah flow not reduce dividends pay out. Second, integrating emprical model from three different countires in ASEAN region.

  11. REAKSI INVESTOR ATAS CORPORATE GOVERNANCE PERCEPTION INDEX (CGPI 2011

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    Makaryanawati Makaryanawati

    2017-03-01

    Full Text Available The objective of this study was to determine the capital market reaction on the announcement of CorporateGovernance Perception Index (CGPI 2011. The variables used in this study were stock prices over the closingprice and trading volume of shares. The type of analysis was comparative descriptive study which comparedthe stock price and trading volume before and after the CGPI 2011 award-winning announcement for thecompanies listed in IDX. Observations were made during the period of 10 trading days; five days before andfive days after the CGPI 2011 announcement. The data analysis instrument used in this study was the WilcoxonSigned Ranks Test with significance level á = 5%. The results showed that there was no difference betweenstock prices before and after the announcement of CGPI 2011, there were differences in the trading volumeactivity before and after announcement of CGPI 2011 at the companies of CGPI 2011 winners that were listedin IDX. Based on these results, it could be concluded that stock price of the sample companies could not beaffected by the information content of CGPI 2011 because the sample companies were fundamentally strongcompanies. The award announcement could affect the shares trading volume in the capital market.

  12. PENGARUH MEKANISME CORPORATE GOVERNANCE TERHADAP KINERJA KEUANGAN BANK PERKREDITAN RAKYAT

    Directory of Open Access Journals (Sweden)

    Okky Andriyan

    2010-12-01

    Full Text Available This research is aimed to find out the influence of Corporate Governance (CG mechanisms to the banking financial performance. As a regulated industry, this research wants to prove that the banking financial performance can be influenced by CG mechanisms, not just its complience to the banking regulations. The samples in this research are the non-governmental rural banks (Bank Perkreditan Rakyat in Central Java. The financial performance of the BPR is measured by the ratio of NPL, KPMM, LDR, and ROA. CG mechanisms are measured by its managerial ownerships, the proportion of the outside directors, and the number of board of directors (BOD, while the control variables are the size of the BPR and the firm age of the BPR. This research finds the CG mechanisms simultaneously influence the ratio of NPL, KPMM, and ROA. The managerial ownerships and the proportion of the outside directors partially also show a negative influence to the ratio of NPL and ROA, and the number of BOD in partial shows a negative influence towards the ratio of LDR.

  13. Interactions between Corporate Governance, Bankruptcy Law and Firms Debt Financing: the Brazilian Case

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    Bruno Funchal

    2008-07-01

    Full Text Available This paper examines the relationship between corporate governance level and the bankruptcy law for such debt variables as firms’ cost of debt and amount (and variation of debt. Our empirical results are consistent with the model's prediction. First, we find that the better the corporate governance, the lower the cost of debt. Second, we find that better corporate governance arrangements relate to firms with higher amounts of debt. Finally we find that better governance and harsher bankruptcy laws have a positive effect on debt. Moreover, this effect is stronger for firms with worse corporate governance, which indicates that the law works as a substitute for governance practices to protect creditors' interests.

  14. Communicating transparancy : a genre network approach : how do corporate governance codes - the SOX and the Tabaksblad Code - affect Dutch cross-listed companies' corporate communication?

    NARCIS (Netherlands)

    Laval, S.C.

    2010-01-01

    The financial scandals around 2000 caused the need for changes in the corporate governance systems. The consequence was the establishment of the US Sarbanes-Oxley Act and the Dutch Tabaksblat Code. These corporate governance codes include rules for 'good governance'. The goal of 'good governance' is

  15. Analisis Akuntansi Forensik Dan Audit Investigatif Terhadap Pelaksanaan Prosedur Audit Dalam Penerapan Good Corporate Governance

    OpenAIRE

    Mawaddah, Siti Uy

    2015-01-01

    Economic globalization happens today cause in massive changes in social, political and economic sector. This gives consciousness in order to realize good corporate governance (GCG) in the public sector or the private sector. The large company corporate governance are concerned. On the contrary, many small companies are still not aware of the good governance for the company. This make fraud can happened to benefit shareholders or administrators. That is the reason why fraud hard to detected by...

  16. THE EFFECT OF CORPORATE GOVERNANCE MECHANISM, OWNERSHIP STRUCTURE, AND EXTERNAL AUDITOR TOWARD CORPORATE SOCIAL RESPONSIBILITY DISCLOSURE WITH EARNING MANAGEMENT AS MODERATING VARIABLE

    Directory of Open Access Journals (Sweden)

    Suwana M.A.J.

    2017-08-01

    Full Text Available The purpose of this study is to examine the moderating effect of earning management on corporate governance mechanism, ownership structure, and external auditor toward corporate social responsibility disclosure. This study finds that the increase of ownership structure (foreign ownership and institutional ownership will increase corporate social responsibility disclosure. However corporate governance mechanism and external auditor is not affecting corporate social responsibility disclosure. Furthermore, this study provides additional empirical evidence for agency theory especially agency cost, that corporate governance mechanism, ownership structure, and Big Four audit firm do not have an effective role as agency cost to prevent or decrease earning management practice.

  17. Does corporate governance shape the relationship between corporate social responsibility and financial performance?

    NARCIS (Netherlands)

    Kabir, Rezaul; Thai Minh, Hahn

    2017-01-01

    Purpose: The theoretical and empirical relationships between corporate social responsibility (CSR) and corporate financial performance are not without controversy. Yet, CSR activities are increasingly undertaken by a large number of firms, not only in developed countries but also in emerging

  18. Responsabilidad social empresarial: gobernanza corporativa, empresa y ONG (Corporate social responsability: corporate governance, business and NGO

    Directory of Open Access Journals (Sweden)

    María Dolores Sánchez Fernández

    2012-06-01

    Full Text Available To carry out various activities related to corporate social responsibility corporations identify the different stakeholders of the organization, in which NGOs are found. The study carried out was to analyze what role charity organizations play and the role they should pursue in corporate governance as stakeholders of the organization. The organizations claim that they intervene as auditors of the codes of conduct developed by companies. There are forces that inhibit collaboration between companies and NGOs, but there are also strategies that coexist which the latter can adopt in order to achieve collaboration between the two. It becomes manifest that the third sector is not a synonym of NGOs, but that these organizations are a component of it. The benefit of public private partnerships for society and the power that companies obtain, especially multinationals, the evasion of responsibilities with regard to the preservation of human rights is raised in the debate. This work debates the role which NGOs acquire with reference to codes of conduct adopted by companies. Finally, given its relevance, the case of the Red Cross is studied. Las corporaciones para llevar a cabo las distintas actividades relacionadas con la responsabilidad social empresarial identifican las diferentes partes interesadas de la organización, dentro de las cuales se encuentran las ONG. En el estudio desarrollado nos planteamos analizar qué papel desempeñan y cuál deberían ejercer las ONG en la gobernanza corporativa. Existen fuerzas que inhiben la colaboración entre empresa y ONG, pero también coexisten estrategias que pueden adoptar estas últimas para lograr la colaboración entre ambas. Se pone de manifiesto que el tercer sector no es sinónimo de ONG, sino que estas organizaciones son un componente del mismo. Se plantea en el debate el beneficio de las alianzas público privadas para la sociedad y el poder que adquieren las empresas, especialmente en el caso de las

  19. PREDIKSI PERINGKAT OBLIGASI DENGAN CORPORATE GOVERNANCE PERCEPTION INDEX (CGPI DAN KARAKTERISTIK OBLIGASI

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    Tri Gunarsih

    2017-03-01

    Full Text Available The objective of this study was to predict the impact of Corporate Governance Perception Index (CGPI andBond Characteristics to Bond Rating by using the ordinal logistic regression. This regression was used sincethe dependent variable was ordinal data, consisting of three groups. The CGPI issued by Indonesian Instituteof Corporate Governance (IICG was a score from 0 to 100 while the characteristics of the bond consisted ofthree variables, namely subordinated bonds, industry type and the maturity of the bond. The results of thisstudy indicated that scores of CGPI, subordinated bonds and the type of the industry were statistically significantat ?5%while the maturity of the bond was not. The positive direction of the relationship between scores ofCGPI to bond rating suggested that the higher the score, the higher the rating. The negative sign of subordinatedbonds suggested that subordinated bonds had a rating lower than non-subordinated bonds. The lastsignificant variables, type of industry suggested that financial and utility industry had higher bond ratingfrom other industries.

  20. A comparison of gender diversity in the corporate governance codes of France, Germany, Spain, the Netherlands and the United Kingdom

    NARCIS (Netherlands)

    Lückerath – Rovers, M.

    2009-01-01

    International differences exist in the legal, cultural, ownership and other aspects of corporate governance. Convergence, however, is achieved in core aspects of corporate governance, such as transparency, disclosure, and the importance of independent, non-executive directors (Mallin, 2007).

  1. THE EFFECT OF CORPORATE GOVERNANCE DISCLOSURE ON INVESTOR REACTIONS WITH PROFITABILITY AS MODERATING VARIABLE

    Directory of Open Access Journals (Sweden)

    Hariadi K.L.

    2017-08-01

    Full Text Available The aim of this research is to understand how Corporate Governance affects investor’s reaction in capital market by profitability as a moderating variable. This research uses secondary data obtained from Indonesian Stock Exchange. Investor’s reaction is measured by Cumulative Abnormal Return, which happened around the time of annual report publication. Corporate Governance are measured by Institutional ownership, ownership by board of commissioner, audite commite, and independent commissioner. Profitability as moderating variabel is measured by Return on Asset. This research was done to 25 companies which were listed in Indeks LQ 45 in Indonesian Stock Exchange during 2015-2016. Data analysis techniques used in this research are regresion analysis and moderated regresion analysis (MRA. The result shows that corporate governance (Institutional ownership, ownership by board of commissioner, audite commite, and independent commissioner negatively affect Cumulative Abnormal Return. Profitability as a moderating variable was able to explain the relationship of corporate governance (ownership by board of commissioner and audite commite affect significantly to Cumulative Abnormal Return partially. Corporate governance does not have any impact to Cumulative Abnormal Return value, because of the implementation of corporate governance in Indonesia is not provide optimum results mean while in the process of considering corporate governance practices take time to know the benefits.

  2. PRAKTIK TATA KELOLA PERUSAHAAN (CORPORATE GOVERNANCE DAN USEFULNESS INFORMASI AKUNTANSI (Telaah Teoritis Dan Empiris

    Directory of Open Access Journals (Sweden)

    Muhammad Miqdad

    2012-01-01

    Full Text Available Accounting researchs on corporate governance and earnings management refers to the positive accounting theory and agency theory. Most of the result empirical studies showed that implementing of good corporate governance (GCG negatively affect to earnings management. Excessive earnings management practices will affect the credibility of the financial statements in the user’s perception namely investors, creditors and other stakeholders. Corporate governance and earnings management associated with behavioral problems, therefore qualitative research method as an alternative to explore further of the behavioral problems.

  3. MODEL OF CORPORATE GOVERNANCE OF A MODERN ENTERPRISE IN THE 21ST CENTURY

    Directory of Open Access Journals (Sweden)

    Zorica Siljanovska

    2017-01-01

    Full Text Available Efficient and quality system of corporate governance built on high set international standards and principles allows setting goals that are consistent with the interests of all stakeholders. The definition of corporate governance made by the OECD, which today is one of the most widely accepted and comprehensive definition confirms the importance of all constituents and care for their interests when setting objectives. Quality corporate governance is reflected in the mechanisms that establish a balance between the different interests of stakeholders. Each constituency is part of the mosaic should not be marginalized and ignored.

  4. COMPARATIVE ANALYSIS BETWEEN THE TRADITIONAL MODEL OF CORPORATE GOVERNANCE AND ISLAMIC MODEL

    Directory of Open Access Journals (Sweden)

    DAN ROXANA LOREDANA

    2016-08-01

    Full Text Available Corporate governance represents a set of processes and policies by which a company is administered, controlled and directed to achieve the predetermined management objectives settled by the shareholders. The most important benefits of the corporate governance to the organisations are related to business success, investor confidence and minimisation of wastage. For business, the improved controls and decision-making will aid corporate success as well as growth in revenues and profits. For the investor confidence, corporate governance will mean that investors are more likely to trust that the company is being well run. This will not only make it easier and cheaper for the company to raise finance, but also has a positive effect on the share price. When we talk about the minimisation of wastage we relate to the strong corporate governance that should help to minimise waste within the organisation, as well as the corruption, risks and mismanagement. Thus, in our research, we are trying to determine the common elements, and also, the differences that have occured between two well known models of corporate governance, the traditional Anglo – Saxon model and also, the Islamic model of corporate governance.

  5. Corporate Governance and Human Resource Management in Nigeria’s Downstream Petroleum Sector

    Directory of Open Access Journals (Sweden)

    Oyewunmi Olabode A.

    2017-06-01

    Full Text Available The emergence of a ‘new world economy’ makes it imperative for corporate entities to adjust their corporate values, practices and internal processes. This paper explored the interrelatedness of selected corporate governance practices and human resource management outcomes. The paper relied on established corporate management theories as a platform for empirical consideration of selected issues relative to four established players in Nigeria’s downstream petroleum sector. A descriptive method was adopted and data was collected via a survey of 112 respondents. Contextual arguments were captured to achieve a robust appreciation of issues affecting individual participation and operations of corporate entities. The study found that there is a significant relationship between corporate governance practices and human resource management outcomes. Requisite conclusions and recommendations were provided in the light of empirical and theoretical findings.

  6. Family controlled firm, governance mechanisms and corporate performance: Evidence from Indonesia

    OpenAIRE

    Eko Suyono

    2016-01-01

    This study investigates, firstly, the influence of family-controlled firm on corporate performance, and secondly, the influences of corporate governance mechanisms including control variable on corporate performance in the companies listed on the Indonesian Stock Exchange. By using five years (2009-2013) company data, this study used Ordinary Least Square (OLS) regression to test the hypotheses. The results based on OLS, indicate that family controlled firms tend to have better performance th...

  7. Is Regulatory Competition a Problem or Irrelevant for Corporate Governance?

    OpenAIRE

    Roberta Romano

    2005-01-01

    This article provides an analysis of why regulatory competition in corporate law has operated, for the most part, successfully in the United States, and critiques the position of commentators who are skeptical of the significance and extent of state competition. The article begins by setting out the context in which regulatory competition has been most recently criticized, the U.S. Congress's response to corporate accounting scandals in the Sarbanes-Oxley Act, and by briefly noting how the pr...

  8. PENGARUH ASIMETRI INFORMASI TERHADAP MANAJEMEN LABA DENGAN GOOD CORPORATE GOVERNANCE SEBAGAI VARIABEL MODERASI

    Directory of Open Access Journals (Sweden)

    Andri Veno

    2017-04-01

    Full Text Available The purpose of this study was to analyze the effect on earnings management information asymmetry, which was moderated by good corporate governance in 43 companies listed on the Indonesian Stock Exchange (BEI. To 43 companies such as sample in this study included the top 10 best Corporate Governance Perception Index (CGPI during the period 2004 - 2013. The sampling technique is purposive sampling. Earnings management as independent variables proxy through Short Term Discretionary Accruals (STDA and Long Term Discretionary Accruals (LTDA, while moderating variable is a proxy through Corporate Governance Corporate Governance Perception Index (CGPI. This analysis using multiple linear regression that was previously done through classical assumption test. The results of multiple linear regression analysis on the model of the Short Term Discretionary Accruals (STDA showed that the asymmetry of information and good corporate governance significantly positive effect on earnings management. The results of multiple linear regression analysis on the model of the Long-Term Discretionary Accruals (LTDA showed that the asymmetry of information and good corporate governance significantly negative effect on earnings management. While variable existing office Good Governance can moderate the effect of asymmetry in earnings management in Short-Term Discretionary Accruals (STDA and Long Term Discretionary Accruals (Ltda.

  9. Impact of corporate governance index on firm performance: evidence from Pakistani manufacturing sector

    Directory of Open Access Journals (Sweden)

    Faisal Javaid

    2015-07-01

    Full Text Available 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

  10. The Impact of Samsung Scandal in South Korean Corporate Culture: Is Corporate Governance Necessary?

    OpenAIRE

    Saadah, Kholifatus

    2018-01-01

    As one of the world’s poorest countries in the world 30 years ago, South Korea proved its remarkable economic development. Within three decades, South Korea’s economic development shot up and attracted international attention. The economic strength in South Korea is supported by several global corporations such as Samsung, LG, Hyundai and others. The corporations have South Korea’s “ala” power, chaebol. Chaebol itself is similar to keiretsu in Japan, which global corporations are run by famil...

  11. Corporate governance and the audit committee as part of Corporate Social Responsibility

    OpenAIRE

    Mancilla Rendón María Enriqueta; Saavedra García María Luisa

    2015-01-01

    The purpose of this paper is to study the principles of the international standard ISO 26000, and the relation between social responsibility and internal control rules management organizations establish their business and relationship with Corporate Social Responsibility the board of directors and the audit committee to strengthen corporate trust and manage corporate risk. The research is based on a survey of companies listed on the Mexican stock market, in 2011. The variables have been studi...

  12. An Investigation of the Impact of Corporate Governance Mechanisms on Level of Corporate Risk Disclosure: Evidence from Kuwait

    Directory of Open Access Journals (Sweden)

    Bader Al-Shammari

    2014-06-01

    Full Text Available This study investigated the association between corporate governance mechanisms and corporate risk disclosure (CRD in the annual reports for a sample of 109 Kuwaiti listed non-financial companies in 2012. The study used a manual content analysis to measure risk disclosure by counting the number of risk-related sentences in annual reports. A multiple regression analysis was used to test the impact of board size, non-executive directors, percentage of family members on board, role duality, and audit committee on CRD. The quantity of risk disclosures in the Kuwaiti companies' annual reports was very limited. The results showed that the larger board size has a positive impact on CRD. However, the findings also indicated the existence of role duality lead to lower risk disclosure. Other corporate governance mechanisms did not explain variation in CRD.

  13. The Effectiveness of Corporate Governance Mechanisms and Leadership Structure: Impacts on strategic change and firm performance

    NARCIS (Netherlands)

    Y. Feng (Ying)

    2017-01-01

    markdownabstractHow to assess and improve the effectiveness of corporate governance to accommodate the demands of strategic decision making has been one of the top concerns among both scholars and practitioners. While extensive research has taken an economic view when investigating corporate

  14. Corporate governance, intellectual capital and performance: Evidence from the public sector in the GCC

    Directory of Open Access Journals (Sweden)

    Udo Braendle

    2017-09-01

    Full Text Available This unique study tries to link corporate governance, intellectual capital and organizational performance in the public sector in the Gulf Cooperation Council (GCC. To do so we collected data from 371 managers in public entities within the GCC region. Our findings indicate the importance of corporate governance (in form of human, social and structural capital to enhance performance in the public sector. Not only have those, results showed that the examined forms of capital are interrelated. We therefore support earlier findings that attribute impact of intellectual capital variables on performance. These results are highly relevant within the context of the GCC public sector. The findings of the papers help both, scholars and practitioners: the findings of the paper help to better understand the links between corporate governance and intellectual capital. Further, the study provides – based on GCC public sector data - the unique opportunity to see the interrelationships between corporate governance, intellectual capital and performance within the GCC public sector

  15. Who does it better? The corporate versus the nonprofit governance model.

    Science.gov (United States)

    Larson, Laurie

    2005-05-01

    Weighing the corporate against the nonprofit governance model, the answer may be "neither." Both systems can learn from each other, experts say, and best practices in public companies do not automatically translate to health care boards.

  16. Impact of the Accounting Information System on Corporate Governance: Evidence from Turkish Non-Listed Companies

    Directory of Open Access Journals (Sweden)

    Ali Uyar

    2017-03-01

    Full Text Available the abuses of managers have the ability to create major problems. In order to avoid future scandals, this study investigates the association between the accounting information system and corporate governance. We hope that these findings will contribute towards the enhancement of good corporate governance created by the accounting function of business organizations. The results of empirical analyses indicate that bookkeeping, financial reporting, and the budgeting system have a positive impact on the corporate governance level, whereas the adoption of Turkish Accounting / Financial Reporting Standards do not. Thus, in order to foster corporate governance, managers should establish internal reporting procedures as well as internal control and monitoring devices before attempting external control through independent auditing.

  17. Investment Spending in the Netherlands : The Impact of Liquidity and Corporate Governance

    NARCIS (Netherlands)

    Degryse, H.A.; de Jong, A.

    2000-01-01

    This paper examines the relation between cash flow, corporate governance and fixed-investment spending. In perfect capital markets we expect no systematic relationship. However, Myers and Majluf's (1984) asymmetric information hypothesis and Jensen's (1986) managerial discretion hypothesis present

  18. Family controlled firm, governance mechanisms and corporate performance: Evidence from Indonesia

    Directory of Open Access Journals (Sweden)

    Eko Suyono

    2016-07-01

    Full Text Available This study investigates, firstly, the influence of family-controlled firm on corporate performance, and secondly, the influences of corporate governance mechanisms including control variable on corporate performance in the companies listed on the Indonesian Stock Exchange. By using five years (2009-2013 company data, this study used Ordinary Least Square (OLS regression to test the hypotheses. The results based on OLS, indicate that family controlled firms tend to have better performance than non Family controlled firms. Moreover, in regard to the link between governance variables and corporate performance, only managerial ownership exhibits a positive relation with corporate performance, for both proxies, i.e. Tobins Q and ROA. Yet, the rests of governance variables (i.e. institutional ownership, audit committee, board of directors and independent board of commissioners do not confirm the relationship with corporate performance. These findings have significant policy implications for the government, regulatory bodies, companies and other stakeholders including the investors in Indonesia to shape and implement an optimal governance system that can improve corporate performance.

  19. Pengelolaan Manajemen Modern dalam Mewujudkan Good Corporate Governance: Optimalisasi Pencapaian Tujuan Perusahaan

    Directory of Open Access Journals (Sweden)

    Ignatius Edward Riantono

    2014-05-01

    Full Text Available Implementation and management of good corporate governance, better known by the term Good Corporate Governance, is a concept that emphasizes the importance of shareholders to obtain true, accurate, and punctual information. In this era of global competition state borders are no longer a barrier to competition; only companies that implement good corporate governance (GCG are capable of winning the competition. GCG is a must in order to establish conditions of tough and sustainable company. GCG is necessary to create a system and a strong corporate structure so as to become world class company. Good Corporate Governance is basically a system (input, process, and output and a set of rules that govern the relationship between various parties (stakeholders; especially in the narrow sense, the relationship between the shareholders, the board of commissioners, and the board of directors in order to achieve corporate objectives. Good Corporate Gorvernance encloses to regulate these relationships and prevent significant errors in the company's strategy and to ensure the errors occur can be improved immediately.

  20. An Empirical Study on Corporate Governance and Islamic Bank Performance: A Case Study of Bangladesh

    Directory of Open Access Journals (Sweden)

    Sarwar Uddin Ahmed

    2016-10-01

    Full Text Available Corporate governance refers to the relationship present between the corporation and the stakeholders that determines and controls the strategic direction and performance of the corporation. Good corporate governance should provide adequate incentives for the board and management to pursue objectives that are in the interests of the company and shareholders, thereby encouraging firms to use resources more efficiently. However, the definition of accountability differs between conventional and Islamic Banks. Islam was made accountable not only to stakeholders, but also to Allah, the ultimate owner and authority. These powerful moral ethics help in promoting fair, just and honest business dealing. The aim of this study is to examine the relationship between corporate governance structures and the resultant financial performance of listed Islamic banks of Dhaka Stock Exchange (DSE in Bangladesh. The panel time series data were collected for the time period of 6 years (2009-2014 from all the listed Islamic banks to run an Ordinary Least Squared (OLS regression model to examine whether the existing corporate governance mechanisms as well as several other internal and external indicators are significant in influencing the financial performance. Preliminary findings suggest corporate governance mechanisms in Islamic banks are not quite as strong as they should be, hinting at possible market and management inefficiencies.

  1. THE CRITICAL ANALYSIS OF LIMITED SOUTH ASIAN CORPORATE GOVERNANCE STANDARDS AFTER FINANCIAL CRISIS

    Directory of Open Access Journals (Sweden)

    Dinh Tran Ngoc Huy

    2015-12-01

    Full Text Available After the recent global crisis, corporate scandals and bankruptcy in US and Europe, there is some certain evidence on weak corporate governance, risk management and audit system. The 2009 India Code of Corporate Governance also revealed that during the crisis time, there are certain weaknesses although corporate structure is fairly durable. Hence, this paper chooses a different analytical approach and among its aims is to give some systematic opinions. First, it classifies limited South Asian representative corporate governance (CG standards into two (2 groups: India and Malaysia latest CG principles covered in group 1 and, group 2, including corporate governance principle from Thailand and Indonesia, so-called relative good CG group, while it uses ACCA and OECD and ICGN principles as reference. Second, it, through analysis, identifies differences and advantages between above set of standards which are and have been used as reference principles for many relevant organizations. Third, it establishes a selected comparative set of standards for South Asian representative corporate governance system in accordance to international standards. Last but not least, this paper covers some ideas and policy suggestions.

  2. The Impact of Corporate Governance Structure On Audit Fees in the UK Companies

    OpenAIRE

    Wang, Yanyan

    2008-01-01

    Abstract This dissertation examines the impact of the corporate governance structure of firms on audit fees with empirical evidence provided after controlling for the traditional determinants which are associated with audit fees. The association is based on the theory that corporate governance structures could affect the auditors' amount of work, and then will have impact on the pricing of audit fees. Auditors are expected to assess higher levels of risk for the firms that, in turn, will ...

  3. EAST ASIAN CORPORATE GOVERNANCE: A TEST OF THE RELATION BETWEEN CAPITAL STRUCTURE AND FIRM PERFORMANCE

    OpenAIRE

    Ari Warokka; Juan Jose Duran Herrera; Haim Hilman Abdullah

    2011-01-01

    Corporate governance theory predicts that leverage affects agency costs and thereby influences firm performance. Agency costs represent important problems in corporate governance in both financial and non-financial industries. Prior evidences have demonstrated an association between ownership structures, capital structure, and firm performance. This study extends the literature by proposing a further link between capital structure and firm performance in term of post Asian Financial Crisis th...

  4. Adherence to the spirit of corporate governance : the ethics of executive remuneration

    OpenAIRE

    2013-01-01

    M.Comm. (Industrial Psychology) With the implementation of King III in 2010 and the promulgation of the new Companies Act in 2011, the corporate governance landscape in South Africa was irrevocably changed. Simultaneously, there was an increase in the protestations against the perceived excesses of executive1 remuneration packages. The question posed in this research study was what does adherence to the spirit of corporate governance with regard to executive remuneration entail? The litera...

  5. CORPORATE GOVERNANCE IN DEVELOPING ECONOMIES: CASE STUDY OF A ROMANIAN TEXTILE COMPANY

    OpenAIRE

    POP Zenovia Cristiana

    2015-01-01

    This article explores corporate governance issues like ownership structure, gender diversity accountability, risk management and internal audit at managerial level of a textile company listed on the Bucharest stock exchange. For this reason, secondary data was used as information collection tool. Results of the study underline the conclusion that, corporate governance is being implemented in companies belonging to the textile industry of Romania although correlated with some weaknesses. Analy...

  6. Corporate Governance and Islamic Social Responsibility Disclosure In Kuwaiti Shariah Compliant Financial Institutions

    OpenAIRE

    Al-Shammari, B.

    2012-01-01

    This study examines the relationship between corporate governance characteristics and the extent of Islamic social responsibility disclosure in Kuwait. The annual reports of 40 Shariah-compliant financial institutions listed on the Kuwait Stock Exchange in 2010 are examined. Four major corporate governance characteristics are investigated: 1) the existence of a Shariah supervisory board; 2) the number of board members; 3) the proportion of non-executive directors to the total number of di...

  7. Improving Shareholder Value through Corporate Governance Mechanism in Malaysian Listed Companies

    OpenAIRE

    Ibrahim, Mohammed Yussoff; Ahmad, Ayoib Che; Khan, Muhammad Anees

    2016-01-01

    This paper proposes to investigate the postulations of renowned agency theory and shareholder value (SHV) in relation to Corporate Governance (CG) attributes. Shareholder value is of a great concern to the shareholders of firms. Shareholder value have been investigated by numerous studies of corporate governance but with inconsistent empirical evidence. This study will focus on investigating the impact of CG attributes on Shareholder value measured by Tobin’s Q or return on both equity and as...

  8. Scylla or Charybdis? Historical Reflections on Two Basic Problems of Corporate Governance

    OpenAIRE

    Naomi R. Lamoreaux

    2009-01-01

    Shareholders in corporations face two very different types of governance problems: expropriation by controlling shareholders or managers; and expropriation by greedy rulers or, more generally, by the state. The problem is that the more successful investors are in protecting their capital from the grabbing hand of the state, the less they are able to call upon the state to protect it from the grabbing hand of corporate insiders. Conversely, the more investors are able to call upon government t...

  9. Does corporate governance shape the relationship between corporate social responsibility and financial performance?

    NARCIS (Netherlands)

    Kabir, Mohammed Rezaul; Thai Minh, H.; Thai Minh, H.

    2016-01-01

    The theoretical as well as empirical relationships between corporate social responsibility and corporate financial performance are not without controversy. Yet, CSR activities are increasingly undertaken by a large number of firms, not only in developed countries but also in emerging countries.

  10. Effect on Value Earnings Management Company with Good Corporate Governance Practices as Moderating Variable

    Directory of Open Access Journals (Sweden)

    Yuniarti Emylia

    2017-01-01

    Full Text Available Firm value reflects the size of the stock market reaction to the company. Increasing the value of the company is an achievement that suitable with the desire of the owner, because as the value of the company increasing as well the welfare of the owner. Earnings management has an influence on the value of the company. Good Corporate Governance to be one way to eliminate the management engineering efforts specifically to make regulations with the requirement for the companies to disclose certain information mandatorily and voluntarily. This research will discuss the influence of earnings management on company value, the effect of Corporate Governance on company value directly, and the effect of Corporate Governance as a moderating variable from the influence of earnings management and firm value. Data analysis technique used in this research is a descriptive data analysis method, analysis model and classical assumption check because this research aims to determine the effect of earnings management, company value and Corporate Governance on Enterprise State-owned Enterprises listed on the Indonesia Stock Exchange. The results of this study are earnings management negatively affect the value of the company, corporate governance itself has no effect on firm value, but as a moderating variable of corporate governance affect earnings management effect on firm value.

  11. CORPORATE GOVERNANCE IN DEVELOPING ECONOMIES: CASE STUDY OF A ROMANIAN TEXTILE COMPANY

    Directory of Open Access Journals (Sweden)

    POP Zenovia Cristiana

    2015-05-01

    Full Text Available This article explores corporate governance issues like ownership structure, gender diversity accountability, risk management and internal audit at managerial level of a textile company listed on the Bucharest stock exchange. For this reason, secondary data was used as information collection tool. Results of the study underline the conclusion that, corporate governance is being implemented in companies belonging to the textile industry of Romania although correlated with some weaknesses. Analyzed documents confirm that the chosen textile company is trying to implement various accepted corporate governance policies, to stay competitive. The manufacturing processes were constantly improved involving a variety of techniques, with the purpose for diminishing environmental negative impact by eliminating waste. The board of directors as well as the top-management has a good understanding of the responsibilities for each member in order to ensure good corporate governance. The lack of a trade union could be the causative factor of wage inequality and loss of a stronger worker voice. Although the result of external constraints, we identified a process for constant enhancement of corporate governance in the company. The implementation of the code of corporate governance contributed to improvement in performance especially share value. Future research directions aimed extending the sample by selecting several other companies from different industries, for comparison.

  12. Analysis on Corporate Governance Influences toward Banking Efficiency with Bank Category as Moderator Variable

    Directory of Open Access Journals (Sweden)

    Lidiyawati Lidiyawati

    2015-05-01

    Full Text Available Corporate governance system of Sharia financial institution that based on Islamic law may result more  variables principles then conventional owns. The restriction of usury are highly speculative transaction, embedded prohibited matter are main features in Sharia business institution. Sharia Supervisory Board, as board that supervises banking practices conforms to Sharia stipulations, hold strong important role within Islamic banking. Both important points above had direct effects on efficiency which attained by Islamic banking compared with conventional banking. This study examines the influence of corporate governance implementation toward efficiency banking sector with bank category as moderator variable. This study hypothesize that corporate governance has significant influences toward bank’s efficiencies, the influence of corporate governance toward Islamic bank efficiencies is higher than conventional bank, and level of Islamicbank efficiencies is higher than conventional bank. Measurement of efficiencies is using Stochastic Frontier Approach program, and then using SPSS in procces hypothetical model. The results of the study do not support the hypothesis. Examined result shows that statically corporate governance is not influenced by bank efficiency achievement. Corporate governance influences over Islamic bank has not show higher significance than conventional and Islamic bank efficiencies remain steady. Data limitations, complexity of the efficiency measures and the complexity of the operation of Islamic banks may explain the finding.

  13. Corporate governance and banks : How justified is the match?

    NARCIS (Netherlands)

    van der Elst, C.F.

    2015-01-01

    Banks and bank governance are different. We critically assess the arguments used to pervade these divergences in operational activities. We also question if and how, in light of the specificity of banking activities, bank governance translates the operational peculiarities in different governance

  14. Corporate Governance in the Nigerian Banking Industry: Issues and ...

    African Journals Online (AJOL)

    DR Nneka

    Therefore, one way to assure investors across the globe that their investments are safe is by putting in ... globe. Therefore, in order to ensure and sustain investors' confidence in the capital market, the issue of corporate ... stock market, pressured by stockholders for ever-increasing returns, and led by executives seeking to ...

  15. RELEVANCE OF CORPORATE GOVERNANCE MODELS IN COMPANIES DEVELOPMENT, IN CONTEXT OF THE GLOBAL CRISIS

    Directory of Open Access Journals (Sweden)

    LUMINIŢA CECILIA CRENICEAN

    2012-05-01

    Full Text Available Although the existing confusion regarding the concept of corporate governance persists, its role on sustainable maximize corporate values and providing high performance is undeniable. Moreover, the test of a corporate governance effectiveness model is the measurement in which it succeed to achieve the main objective, namely, that the company's perspective to maximize value to shareholders. In the economic crisis, it requires that by those systems in which companies are managed and controlled has to interact directly with social responsibility and business ethics held by those entities. It is expected that corporate managers have an efficient economic behavior, different from that of members of governments and economic decline that records do not meet current socio-economic situation

  16. From corporate governance to hospital governance. Authority, transparency and accountability of Belgian non-profit hospitals' board and management.

    Science.gov (United States)

    Eeckloo, Kristof; Van Herck, Gustaaf; Van Hulle, Cynthia; Vleugels, Arthur

    2004-04-01

    As a result of multiple developments in health care and health care policy, hospital administrators, policy makers and researchers are increasingly challenged to reflect on the meaning of good hospital governance and how they can implement it in the hospital organisations. The question arises whether and to what extent governance models that have been developed within the corporate world can be valuable for these reflections. Due to the unique societal position of hospitals--which involves a large diversity of stakeholders--the claim for autonomy of various highly professional groups and the lack of clear business objectives, principles of corporate governance cannot be translated into the hospital sector without specific adjustments. However, irrespective of these contextual differences, corporate governance can provide for a comprehensive 'frame of reference', to which the hospital sector will have to give its own interpretation. A multidisciplinary research unit of the university of Leuven has taken the initiative to develop a governance model for Belgian hospitals. As part of the preliminary research work a survey has been performed among 82 hospitals of the Flemish Community on their governance structure, the composition of the governance entities, the partition of competencies and the relationship between management and medical staff.

  17. THE IMPACT OF CORPORATE GOVERNANCE DIMENSIONS ON FINANCIAL STRUCTURE OF THE COMPANIES IN DEVELOPING COUNTRIES

    Directory of Open Access Journals (Sweden)

    IONESCU ALIN

    2014-12-01

    Full Text Available Corporate governance represents a current topic for academic community and practitioners, in the context of globalization and crisis, especially in case of developing countries. The main purpose of this paper is to analyze which dimensions of corporate governance are able to exercise a significant impact on the companies’ financial structure, using a dataset with 77 developing countries from Africa, Asia, Latin America and Central and Eastern Europe. The data are provided from World Bank Enterprise Survey website and the variables are grouped in two directions: corporate governance and financial structure variables. In this regard, using principal components analysis approach, we grouped firstly the variables related to financial structure and then variables related to the main four dimensions of corporate governance, such as ownership structure and management quality, transparency, environment and corruption. The impact of corporate governance dimensions on companies’ financial structure was analyzed in a generalized linear model framework and the main result of this paper consists in the fact that, for analyzed countries, companies’ financial structure is significantly influenced by several dimensions of the governance like transparency, environment or corruption.

  18. THE IMPACT OF CORPORATE GOVERNANCE DIMENSIONS ON FINANCIAL STRUCTURE OF THE COMPANIES IN DEVELOPING COUNTRIES

    Directory of Open Access Journals (Sweden)

    IONESCU ALIN

    2014-12-01

    Full Text Available Corporate governance represents a current topic for academic community and practitioners, in the context of globalization and crisis, especially in case of developing countries. The main purpose of this paper is to analyze which dimensions of corporate governance are able to exercise a significant impact on the companies’ financial structure, using a dataset with 77 developing countries from Africa, Asia, Latin America and Central and Eastern Europe. The data are provided from World Bank Enterprise Survey website and the variables are grouped in two directions: corporate governance and financial structure variables. In this regard, using principal components analysis approach, we grouped firstly the variables related to financial structure and then variables related to the main four dimensions of corporate governance, such as ownership structure and management quality, transparency, environment and corruption. The impact of corporate governance dimensions on companies’ financial structure was analyzed in a generalized linear model framework and the main result of this paper consists in the fact that, for analyzed countries, companies’ financial structure is significantly influenced by several dimensions of the governance like transparency, environment or corruption

  19. Complexity and corporate governance: an analysis of companies listed on the BM&FBOVESPA

    Directory of Open Access Journals (Sweden)

    Renata Rouquayrol Assunção

    2017-03-01

    Full Text Available ABSTRACT In light of the need to develop mechanisms of control, protection, and transparency regarding the relationships between principal and agent, and with the aim of eliminating or reducing the agency problem, corporate governance has emerged. Based on Agency Theory, separation of ownership and control of activities derives from the complexity of organizations. In this context, this study aims to analyze the relationship between dimensions of complexity and corporate governance in companies listed on the São Paulo Stock, Commodities, and Futures Exchange (BM&FBOVESPA, in which contingency factors might influence organizational characteristics. The investigation gathers data from a sample of 162 companies listed on the BM&FBOVESPA. The following statistical tests were used in the data analysis: Factor Analysis, Multiple Linear Regression, Correspondence Analysis, and Correlation Analysis. For measuring complexity, contingency variables such as age, size, diversification, and internationalization were adopted; and, to assess corporate governance, a representative index of the adoption of good governance practices was used. The results show that organizational complexity is explained by the size and diversification variables, whereas operational complexity is explained by the size, diversification, and internationalization variables. It was observed that in the two dimensions of complexity - organizational and operational - corporate governance was influenced by the diversification, internationalization, and age variables, with the latter involving an inverse relationship. It is concluded that companies displaying more complexity, in its two dimensions, record a higher level of corporate governance, which confirms the research hypothesis.

  20. 17 CFR 401.5 - Exemption for corporate credit unions transacting limited government securities business with...

    Science.gov (United States)

    2010-04-01

    ... unions transacting limited government securities business with other credit unions. 401.5 Section 401.5... SECURITIES EXCHANGE ACT OF 1934 EXEMPTIONS § 401.5 Exemption for corporate credit unions transacting limited government securities business with other credit unions. (a)(1) Subject to the requirements of paragraph (b...

  1. The future of public hospitals in a globalized world: corporate governance, corporatization or privatization?

    Science.gov (United States)

    Mordelet, Patrick

    2008-01-01

    This paper contributes to research in health systems and hospitals governance by examining the reasons and expected outcomes of the generalization of corporate governance rules in both public and private non-profit hospitals, all over the world, in order to achieve its clinical, quality and financial objectives.

  2. The Politics of Stakeholder Influence in Corporate Environmental Governance

    DEFF Research Database (Denmark)

    Backer, Lise

    2006-01-01

    I contribute in this article to descriptive stakeholder engagement theory by conceptualising a number of new internal influence strategies that engaged secondary stakeholders can use in their new face-to-face interactions with the corporations. These internal stakeholder influence strategies should...... be seen as adding to the list of external stakeholder influence strategies (e.g. Frooman, 1999) that secondary stakeholders can use in their traditional role of operating from the outside....

  3. Reforming The Governance Of Corporate Rescue: The Enterprise Act 2002

    OpenAIRE

    John Armour; Rizwaan Jameel Mokal

    2004-01-01

    English corporate insolvency law has been reshaped by the Enterprise Act 2002. The Act was intended to ‘to facilitate company rescue and to produce better returns for creditors as a whole’. Administrative receivership, which placed control of insolvency proceedings in the hands of banks, is for most purposes being abolished. It is being replaced by a ‘streamlined’ administration procedure. Whilst it will still be possible for banks to control the appointment process, the administrator once in...

  4. The relationship between corporate governance and capital structure of Brazilian companies during 2000-2013 period

    Directory of Open Access Journals (Sweden)

    Camila Veneo Campos Fonseca

    2016-08-01

    Full Text Available The purpose of this study is to explore the impact of corporate governance practices on capital structure of 252 Brazilian non-financial public listed companies between 2000 and 2013. Panel data econometric techniques were used, with the adoption of a System Generalized Methods of Moments estimator in order to control the potential sources of endogeneity between ownership structure and governance practices. Results show evidence that high corporate governance levels improved the access to debt capital and increased the debt maturity.

  5. CODES AND PRACTICES OF IMPLEMENTATION OF CORPORATE GOVERNANCE IN ROMANIA AND RESULTS REPORTING

    Directory of Open Access Journals (Sweden)

    GROSU MARIA

    2011-12-01

    Full Text Available Corporate governance refers to the manner in which companies are directed and controlled. Business management was always guided by certain principles, but the current meaning of corporate governance concerns and the contribution that companies must have the overall development of modern society. Romania used quite late in adopting a code of good practice in corporate governance, being driven, in particular, the privatization process, but also the transfer of control and surveillance of political organizations by the Board of Directors (BD. Adoption of codes of corporate governance is necessary to harmonize internal business requirements of a functioning market economy. In addition, the CEE countries, the European Commission adopted an action plan announcing measures to modernize company law and enhance corporate governance. Romania takes steps in this direction by amending the Company Law, and other regulations, although the practice does not necessarily keep pace with the requirements. This study aims on the one hand, an analysis of the evolution of corporate governance codes adopted in Romania, but also an empirical research of the implementation of corporate governance principles of a representative sample of companies listed on the Bucharest Stock Exchange (BSE. Consider relevant research methodology, because the issuer of the Codes of CG in Romania is BSE listed companies requesting their voluntary implementation. Implementation results are summarized and interpreted at the expense of public reports of the companies studied. Most studies undertaken in this direction have been made on multinational companies which respects the rule of corporate governance codes of countries of origin. In addition, many studies also emphasize the fair treatment of stakeholders rather than on models of governance adopted (monist/dualist with implications for optimizing economic objectives but also social. Undertaken research attempts to highlight on the one

  6. Pengaruh Good Corporate Governance dan Budaya Tri Hita Karana Pada Kinerja Bank Perkreditan Rakyat

    Directory of Open Access Journals (Sweden)

    Asri Dwija

    2017-02-01

    Full Text Available The purpose of this study, namely to obtain empirical evidence that the implementation of corporate governance affect the performance of “Bank Perkreditan Rakyat” ( rural banks, and the role of local culture “Tri Hita Karana “to the BPR’s performance. The population is all BPR located in Badung and Denpasar. The samples using purposive sampling method. The data in this study were collected using a questionnaire are distributed directly to the object of research. “BPR” number into the sample in this study was 65 Banks. Data analyzed by model Multiple Regression Analysis. The research result show that the principles of corporate governance and the local cultural effect on the performance of BPR in Badung and Denpasar. “Bank Perkreditan Rakyat”. The implication of the study is important for the government to solve the economic problem using Corporate Governance and Tri Hita Karana concept.

  7. Relevance of Financial Performance and Good Corporate Governance Determinant of Sustainaibility Corporate Social Responsibility Disclousure in Islamic Bank in Indonesia

    Directory of Open Access Journals (Sweden)

    Fitriyah Fitriyah

    2014-06-01

    Full Text Available The purpose of the paper is to investigate role of the financial performance, ownership structure and number of syari'a supervisory board of Islamic banks in Indonesia on the sustainability of corporate social responsibilities (CSR disclosure. Ownership structure and number of syari'a supervisory board of Islamic banks as proxy of implementation good corporate governance (GCG. There are seven (7 fully fledge Islamic banks in Indonesia. This study uses logic regression to test empirically whether the CSR is highly influenced by the factors identified earlier. Evidence was found that size, ROA and leverage do not have significant role in corporate social responsibilities (CSR disclosure. Specifically, the results infer the fact that the CSR disclosures are significant and positively associated to bank size and ownership structure only. The result of the study has confirms the hypothesis that bank size and ROA has positive associated with CSR disclosure. This suggested that large and profitable banks have more resources to devote to social activities. Leverage negatively influences the disclosure of CSR. Thus, lowly leveraged banks will tend to make larger donations than highly leveraged banks. Ownership structure and number of syari'a supervisory board of Islamic banks have positive associated to CSR disclosure. These results also confirm the predictions that good corporate governance mechanism lead to the greater monitoring and thereby greater CSR disclosure.

  8. Corporate Governance in Post-Socialist Countries - Theoretical Dilemmas, Peculiarities, Research Opportunities / Külliki Tafel, Erik Terk, Alari Purju

    Index Scriptorium Estoniae

    Tafel, Külliki

    2006-01-01

    Äriühingute valitsemine postsotsialistlikes riikides - teoreetilised dilemmad, eripärad, uurimisvõimalused. Skeemid: Internal and external relations of corporate governanace; The changing context of corporate governance

  9. Engaging the Board: Corporate Governance and Information Assurance

    National Research Council Canada - National Science Library

    Anhal, Aarti

    2003-01-01

    .... Information and Communication Technologies (ICT) hold the potential to revitalise UK business, to spur economic growth and competitiveness, to revolutionise working practices and living environments as well as to transform government services...

  10. ADR characteristics and corporate governance in the Greater China region

    Directory of Open Access Journals (Sweden)

    Lee-Hsien Pan

    2012-04-01

    Full Text Available We examine the relationship between firm valuation and governance mechanisms, firm characteristics, and institutional factors of the American Depository Receipts (ADRs domiciled in the Greater China region. We find that China ADRs have the highest market-to-book value ratio followed by Hong Kong and Taiwan ADRs. It appears that Chinese firms with the poorest external governance environment stand to benefit the most from cross listing under the ADR programs. Listing in the U.S. that requires more stringent regulations and disclosure rules may strengthen the firms’ governance practices and thereby enhance their firm value. Among the internal governance mechanisms, institutional ownership and insider ownership are important for firm value.

  11. ACTORS AND INSTRUMENTS OF THE CORPORATIVE GOVERNANCE IN SOME EAST-EUROPEAN COUNTRIES

    Directory of Open Access Journals (Sweden)

    Florina POPA

    2006-12-01

    Full Text Available The paper is a brief presentation of the structures and institutions of the corporative governance, their role in the corporative control in the CEE countries in transition, i.e., insiders, banking systems, capital markets, non-banking financial agents. The paper refers to the increasing role played by the insiders, especially by the managers, in decision-making, as they tend to serve their own interests, due to their advantage concerning the business information. The development of the banking systems and capital markets may influence the governance systems, besides the non-banking financial agents, as they represent the main tools of the corporative governance. The banking system plays, by means of the credits, a special role in the corporative governance, as the debt mechanism is a means of exerting the outsiders’ control over the managers, making them act for the performance and the shareholders’ and other stakeholders’ interests. Finally, there are some conclusions concerning the features and trends of the corporative governance in some transition countries.

  12. The Effect of Corporate Governance on Firms’ Capital Structure of Listed Companies in Sri Lanka

    Directory of Open Access Journals (Sweden)

    Bulathsinhalage Siromi

    2017-06-01

    Full Text Available There is a great awareness among the researchers to carry out researches on corporate governance and it contributes to the firms’ competitive advantage and business success. In today’s turbulent economic environment, competitiveness has become more important than ever for a firm’s survival and success. However, there is a gap in studies focusing on corporate governance and capital structure in the context of Sri Lanka. The aim of this study is to empirically investigate whether attributes of corporate governance affect decisions on capital structure of listed companies in Sri Lanka. The sample of the study consisted of 138 non-financial listed companies for five-year period from 2009 to 2013. Board size, board composition, leadership structure, board committees, and managerial ownership were used as corporate governance variables whereas debt ratio as the measure of capital structure and return on assets (ROA and firm size as control variables. The variables were empirically tested by multiple regression analysis. The findings revealed that there is no significant effect of corporate governance attributes except board composition & board committee on capital structure. The variable of board composition has a significant positive effect and board committee has a negative effect on capital structure.

  13. Corporate Governance Engineering of Islamic Banking and Finance: Tantangan Globalisasi Sistem Ekonomi dan Pasar Bebas

    Directory of Open Access Journals (Sweden)

    Budi Sukardi

    2013-05-01

    Full Text Available The development of Islamic banking indicated dynamic changes and rapid growth. Some countries such United States, United Kingdom, European Union, Canada, Singapore implemented the Islamic financial system. However, economic globalization, laissez-faire, and financial crisis that engulf Indonesia as consequence the lack of bankers commitment to corporate governance, regulation and supervision of the government,business climate of banking do not prioritize business ethics between investors and bankers. Emerging debate that the models of corporate governance developed in western countries can not applicable in Muslim countries, even countries with high levels of corruption. Both models oscillated to find solution in fulfill stakeholders which the principles of morality have been ignored. The Implementation of corporate governance became part of social responsibility, values, ethics and norms must be possessed by Islamic banking due to highly correlated with the organizational readiness and the alignment of management actions to satisfy and ser ve stakeholder needs ,giving an exclusive deals in compliance the justice of morality ,social welfare,economic and political system, corporate image and accountability in keeping the identity of Islam as a religion. Corporate governance became a value system in Islamic financial institutions which giving same legal protections to all stakeholders, it would have an impact the effectiveness, the sustainability of institutions and generate trust with security sense of the community ,financial efficiency ,fiscal and monetary policies resulting in financial equilibrium.

  14. Pengaruh Good Corporate Governance terhadap Penghindaran Pajak (Studi pada Perusahaan Terdaftar di Indeks Bursa Sri Kehati Tahun 2010-2014)

    OpenAIRE

    Wibawa, Agung; Wilopo,; Abdillah, Yusri

    2016-01-01

    This research based on the increase of business competitive power that corporate has to compete and reach their main purpose, included annual corporate profit. Tax is an enforceable contribution for the government's support and also decrease corporate profit at once, so that they being suspected tax avoidance doer. Good Corporate Governance is applied for minimize tax avoidance efforts by management and responsibility efforts for stakeholder and shareholder as well. This research aims to exam...

  15. Integration of economic, environmental, social and corporate governance performance and reporting in enterprises

    Directory of Open Access Journals (Sweden)

    Jiří Hřebíček

    2011-01-01

    Full Text Available Current trends of corporate performance evaluation, i.e. the measurement of environmental, social, economic and governance performance of company and corporate sustainable reporting are discussed in the paper. The relationship between company performance and reporting its key performance indicators is important, therefore, the development of modern and advanced methods and metrics to identify these indicators mainly based on the quantification with the possibility of utilization of information and communication technology are discussed.

  16. Corporate governance and incentive contracts: historical evidence from a legal reform

    OpenAIRE

    Bayer, Christian; Burhop, Carsten

    2008-01-01

    This paper proposes to exploit a reform in legal rules of corporate governance to identify contractual incentives from the correlation of executive pay and firm performance. In particular, we refer to a major shift in the legal and institutional environment, the reform of the German joint-stock companies act in 1884. We analyze a sample of executive pay for 46 firms for the years 1870 to 1911. In 1884, a law reform substantially enhanced corporate control, strengthened the monitoring incentiv...

  17. Moderating role of firms’ rank in ASEAN corporate governance scorecard on effect of foreign ownership on firm value

    Directory of Open Access Journals (Sweden)

    Dormauli Justina

    2017-09-01

    Full Text Available Penelitian ini bertujuan untuk menguji peringkat perusahaan berdasarkan ASEAN corporate governance scorecard, sebagai variabel pemoderasi, atas pengaruh kepemilikan asing terhadap nilai perusahaan di ASEAN. Sample penelitian terdiri dari 491 perusahaan manufaktur yang terdaftar di pasar modal Thailand, Singapore, Philippines, Indonesia, and Malaysia tahun 2012-2013. Dengan analisis white-regression, penelitian ini menemukan bahwa peringkat 50 tertinggi ASEAN corporate governance scorecard memoderasi pengaruh kepemilikan asing terhadap nilai perusahaan. Skor tinggi ASEAN corporate governance scorecard; sebagai peningkatan hak pemegang saham, kesetaran pemegang saham, peran pemangku kepentingan, pengungkapan dan transparansi, serta tanggung jawab dewan; meningkatkan peran pemegang saham asing dalam meningkatkan nilai perusahaan. Manajemen dapat membuat kebijakan mengenai kepemilikan asing juga corporate governance yang optimal, sehingga manajemen dapat meningkatkan kesejahteraan pemegang saham melalui peningkatan nilai perusahaan. Investor yang tertarik berinvestasi di luar negeri, khususnya di ASEAN, harus memperhatikan kondisi corporate governance perusahaan, sehingga kesejahteraan investor dapat meningkat. Kata Kunci: ASEAN corporate governance scorecard, kepemilikan asing, nilai perusahaan.

  18. The Relationship between Corporate Governance Approach and Internal Audit in Tourism Sector: An Application in Marmaris Region

    Directory of Open Access Journals (Sweden)

    Çağrı Köroğlu

    2014-09-01

    Full Text Available Tourism sector is one of the important sectors in Turkey. Corporate governance is an important tool to increase the efficiency of tourism sector. An effective i nternal audit helps to improve the effectiveness of corporate governance in tourism sector. The purpose of this study is to investigate the relationship between corporate governance and the internal audit at four -star and five-star hotels in Marmaris. First, corporate governance and internal control concepts have been discussed within the scope of the literature. Next, in the application part, for the purpose of our study, four-star and five-star hotels were selected in Marmaris region. A survey was conducted on the hotel managers. The data set is analyzed by using SPSS. The results show significant relationship between internal control and corporate governance. In addition, hotel managements recognize the importance of the both the basic principles of corporate governance and internal audit activities.

  19. Moderating role of firms’ rank in ASEAN corporate governance scorecard on effect of foreign ownership on firm value

    Directory of Open Access Journals (Sweden)

    Dormauli Justina

    2017-09-01

    Full Text Available Penelitian ini bertujuan untuk menguji peringkat perusahaan berdasarkan ASEAN corporate governance scorecard, sebagai variabel pemoderasi, atas pengaruh kepemilikan asing terhadap nilai perusahaan di ASEAN. Sample penelitian terdiri dari 491 perusahaan manufaktur yang terdaftar di pasar modal Thailand, Singapore, Philippines, Indonesia, and Malaysia tahun 2012-2013. Dengan analisis white-regression, penelitian ini menemukan bahwa peringkat 50 tertinggi ASEAN corporate governance scorecard memoderasi pengaruh kepemilikan asing terhadap nilai perusahaan. Skor tinggi ASEAN corporate governance scorecard; sebagai peningkatan hak pemegang saham, kesetaran pemegang saham, peran pemangku kepentingan, pengungkapan dan transparansi, serta tanggung jawab dewan; meningkatkan peran pemegang saham asing dalam meningkatkan nilai perusahaan. Manajemen dapat membuat kebijakan mengenai kepemilikan asing juga corporate governance yang optimal, sehingga manajemen dapat meningkatkan kesejahteraan pemegang saham melalui peningkatan nilai perusahaan. Investor yang tertarik berinvestasi di luar negeri, khususnya di ASEAN, harus memperhatikan kondisi corporate governance perusahaan, sehingga kesejahteraan investor dapat meningkat.Kata Kunci: ASEAN corporate governance scorecard, kepemilikan asing, nilai perusahaan.

  20. The Role of Internal Audit in Optimization of Corporate Governance at the Groups of Companies

    Directory of Open Access Journals (Sweden)

    Ionel BOSTAN

    2010-02-01

    Full Text Available Recent financial scandals have demonstrated that the risk of accounting fraud may be vague in any type of economic system. In this context, transparency of information, indispensable element for competitiveness in the market is an efficient operation of systems of corporate governance and especially of control systems. All these must be appropriate in the legislation in terms of external information. The issue of governance will thus be seen as a fundamental pillar against pressures which induce at the fraud as a result of lack of transparency of information flows. In all models of corporate governance, external regulations cover a primary role in ensuring the effectiveness of controls, but remain central the responsibility of entities to adopt a virtuous mechanism as an internal control profile. An example in this sense of "best practice" may be represented by the multinational companies that have known to harmonize the national rules with the typical instruments of other models of governance. The authors have established that the main objective in this work is the evaluation model of governance already existing in a group of companies in accordance with the principles of corporate governance. In the first part of the work it was made a comparitive analysis between the models of corporate governance, focusing on the role of transparency of communication, the primary tool in prevention of frauds, the link between information and prevention of frauds being independent of the model of corporate governance adopted, by the structure of organization and the control mechanisms. The work continued throughout the first part, with the role of internal audit in preventing the accounting fraud, given that any type of government, regardless of how it is configured and the reference market in which we find, to be considered efficiently must provide an appropriate control mechanisms, able to intervene in critical situations and to protect the interests of all

  1. Corporate Governance in Shareholding Companies: Comparing Legal Perspective and Position of Shari’ah

    Directory of Open Access Journals (Sweden)

    Aznan, H.

    2015-12-01

    Full Text Available This study examines the concept of corporate governance in shareholding companies and the legal perspective in comparison with the position of Shari’ah. The purpose of governance is to instil confidence among the stakeholders that the Boards of Directors are applying a diligent legal and administrative framework, to avoid potential administrative and financial failures and corruption. The study has proceeded by defining the concept of governance from linguistics, accounting, administrative, and legal perspectives. The study also discusses the stands of international organisations on the issue of corporate governance. Then, it is proceeded by discussing the concept of corporate governance from Shari’ah point of view. The study found that even with the absence of the term “company governance” in Islamic Law, the concept of corporate governance is in line with the Shari’ah and that their scholars have clearly referred to it in their literature. The study has used the descriptive, analytical, inductive and comparative methodology in analyzing the subject matter.

  2. Governance of sustainable development: co-evolution of corporate and political strategies

    International Nuclear Information System (INIS)

    Bleischwitz, R.; College of Europe, Bruges

    2004-01-01

    This article proposes a policy framework for analysing corporate governance toward sustainable development. The aim is to set up a framework for analysing market evolution toward sustainability. In the first section, the paper briefly refers to recent theories about both market and government failures that express scepticism about the way that framework conditions for market actors are set. For this reason, multi-layered governance structures seem advantageous if new solutions are to be developed in policy areas concerned with long-term change and stepwise internalisation of externalities. The paper introduces the principle of regulated self-regulation. With regard to corporate actors' interests, it presents recent insights from theories about the knowledge-based firm, where the creation of new knowledge is based on the absorption of societal views. The result is greater scope for the endogenous internalisation of externalities, which leads to a variety of new and different corporate strategies. Because governance has to set incentives for quite a diverse set of actors in their daily operations, the paper finally discusses innovation-inducing regulation. In both areas, regulated self-regulation and innovation-inducing regulation, corporate and political governance co-evolve. The paper concludes that these co-evolutionary mechanisms may assume some of the stabilising and orientating functions previously exercised by framing activities of the state. In such a view, the government's main function is to facilitate learning processes, thus departing from the state's function as known from welfare economics. (author)

  3. STRUKTUR KEPEMILIKAN, UKURAN PERUSAHAAN DAN PRAKTEK CORPORATE GOVERNANCE TERHADAP MANAJEMEN LABA

    Directory of Open Access Journals (Sweden)

    Reni Yendrawati

    2017-03-01

    Full Text Available Many companies conducted earnings management in order to attract potential investors. The extent to whichthose companies undertook profit management was influenced by many factors, such as: ownership structure,company size and corporate governance practices. The objective of this study was to determine the effect ofownership structure, company size and corporate governance practices toward earnings management. Ownershipstructure was the proxy of management ownership, and firm size was the proxy of the log of total assets.In addition, corporate governance was measured by the composition of the board of commissioners and industryspecialization of audit firm. The companies used in this study were 16 LQ 45 firms from the year 2008 to2010. The method of analysis used in this study was multiple linear regressions. The results showed that thecomposition of commissioner board had a significant negative effect on earnings management while the otherthree variables, namely the ownership structure, firm size, and KAP industry specialization did not affectsignificantly toward earning management.

  4. EFFECT OF CORPORATE GOVERNANCE INDEX ON DIVIDEND POLICY: AN INVESTIGATION OF TEXTILE INDUSTRY OF PAKISTAN

    Directory of Open Access Journals (Sweden)

    Safdar Husain Tahir

    2016-03-01

    Full Text Available This study observed empirically the impact of corporate governance index on dividend payout policy by using the data of seventeen textile firms listed in Karachi Stock Exchange. The data covered the five years period from 2009 to 2013. The data were gathered from financial statements of all the sample firms. Multiple regression models were used to check the impact of corporate governance on dividend policy. No effect of corporate governance index on firm dividend policy was found, and the largest shareholders also had no impact on dividend pay-out policy. The association between payout policy and stock value was found to be significant positive. Gross profit margin and operating profit margin had significant positive impact on firm’s dividend payout policy. There is a significant correlation between firm performance and payout policy.

  5. Pengaruh Faktor Good Corporate Governance, Free Cash Flow, dan Leverage Terhadap Manajemen Laba

    Directory of Open Access Journals (Sweden)

    Dian Agustia

    2013-01-01

    Full Text Available The aim of this research is to provide empirical evidence on the impact of good corporate governance, free cash flow, and leverage ratio on earnings management. Good corporate governance is measured by audit committee’s size, the proportion of independent commissioners, institutional ownership, and managerial ownership. Discretionary accrual is the proxy of earning management. This research used 14 textile companies listed in Indonesia Stock Exchange, selected using purposive sampling method, during the research period 2007-2011. Data were analyzed using multiple regression method. Based on the result of analysis concluded that all components of good corporate governance (audit committee’s size, the proportion of independent commissioners, institutional ownership, and managerial ownership, have no significant effect on earnings management, while leverage ratio has a significant effect on earnings management, and free cash flow has a negative and significant effect on earnings management. It means that companies with high free cash flow will restrict the practice of earnings management.

  6. Romanian accounting policies between international accounting convergence and corporate governance regulation

    Directory of Open Access Journals (Sweden)

    Elena Dobre

    2012-06-01

    Full Text Available Our paper aims to look at accounting impact on the systems of Romanian corporate governance. The purpose is aligned to discover research leads at the intersection of corporate governance and financial accounting. The hypothesis is that the corporate governance is influenced by accounting policies monitored by internal control. The empirical study focus on several points: (i concepts and specific Terms; (ii elements to be considered in establishing accounting policies; (iii change and remodelling of accounting policies; (iv the influence of enterprise accounting policies on indicators level. We present the role of accounting policies to generate futures economic benefices and the intricacy of accounting valuation. We conclude about the process configuration and modelling accounting policies in terms of business engineering

  7. Corporate Governance, Intellectual Capital and Financial Performance of Banks listed in Pakistan Stock Exchange

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    Javed Iqbal

    2017-09-01

    Full Text Available This study aims to examine the impact of Corporate Governance (CG and Intellectual Capital (IC on financial performance in banks listed in Pakistan stock exchange. Due to the different scope of business, the banks are dived into two groups – Commercial banks and Microfinance & investment banks, and analyzed their data separately. We have used Generalized Least Squared (GLS model to examine the impact of Corporate Governance and Intellectual Capital, and then impact of Intellectual capital on financial performance. The results show that Corporate Governance has significant impact on intellectual capital in both groups of banks. Board ownership has positive significant coefficient only in case of microfinance & investment banks, while Board size and Board independence significantly improve intellectual capital efficiency in case of both types of banks. Human capital efficiency significantly effects financial performance in Microfinance and investment banks, whereas commercial banks improve their financial performance through structural capital efficiency.

  8. Transparency of Accounting Information in Achieving Good Corporate Governance. True View and Fair Value

    Directory of Open Access Journals (Sweden)

    Mariana Man

    2016-05-01

    Full Text Available One of the key factors affecting the efficient use of resources, the increase of shareholders confidence in the managers of the company, the success in achieving objectives and economic efficiency is the system of corporate governance by which a company is managed and controlled. We cannot talk about a culture of corporate governance without thinking of the criteria of transparency, of responsibility in ensuring the accuracy of data from financial reports. Transparency is a prerequisite of good communication between the company and the interested parties. This paper examines the concepts of true image and fair value as premises of transparency of the accounting information in order to accomplish good corporate governance.

  9. Corporate governance and performance of Turkish banks in the pre- and post-crisis periods

    Directory of Open Access Journals (Sweden)

    F. Dilvin Taşkin

    2012-11-01

    Full Text Available This paper aims to analyze the relationship between corporate governance and bank performance. Return on asset (ROA, return on equity (ROE and net interest margin (NIM is considered as the measures of bank performance. Corporate governance is determined through the measures of internal governance mechanism which is measured by CEO duality and external governance mechanisms which are proxied by discipline exerted by shareholders, creditors and educated personnel and bank ownership. The analysis covers the period 1990-2000 and 2002-2011 which are the pre and post periods of the severe 2001 banking crisis. The results show that different governance characteristics are important in the pre and post crisis periods.

  10. Corporate governance and its increased role in the period of global financial crisis with the focus on European region

    OpenAIRE

    Korlyakova, Darya

    2011-01-01

    In this thesis we analyzed methods contributing to corporate government improvement in order to enhance companies' efficiency, thereby preventing their bankruptcy during times of crisis. In the theoretical part we defined corporate governance, described its elements, influential factors and models. Particular attention was paid to the concept of effective governance and recommendations aimed at its achievement. Overall it was discovered that to be successful company should have such corporate...

  11. Schools and Civil Society: Corporate or Community Governance

    Science.gov (United States)

    Ranson, Stewart

    2012-01-01

    School improvement depends upon mediating the cultural conditions of learning as young people journey between their parochial worlds and the public world of cosmopolitan society. Governing bodies have a crucial role in including or diminishing the representation of different cultural traditions and in enabling or frustrating the expression of…

  12. Comparative Corporate Governance of Non-Profit Organizations

    DEFF Research Database (Denmark)

    Thomsen, Steen

    2014-01-01

    employed to address them are by necessity different. In the absence of important governance mechanisms like monitoring by external owners or performance based pay, other mechanisms like regulation, reputation and transparency come to the foreground. However, we have little systematic knowledge of the costs...

  13. Corporate governance and the adoption of health information technology within integrated delivery systems.

    Science.gov (United States)

    Baird, Aaron; Furukawa, Michael F; Rahman, Bushra; Schneller, Eugene S

    2014-01-01

    Although several previous studies have found "system affiliation" to be a significant and positive predictor of health information technology (IT) adoption, little is known about the association between corporate governance practices and adoption of IT within U.S. integrated delivery systems (IDSs). Rooted in agency theory and corporate governance research, this study examines the association between corporate governance practices (centralization of IT decision rights and strategic alignment between business and IT strategy) and IT adoption, standardization, and innovation within IDSs. Cross-sectional, retrospective analyses using data from the 2011 Health Information and Management Systems Society Analytics Database on adoption within IDSs (N = 485) is used to analyze the correlation between two corporate governance constructs (centralization of IT decision rights and strategic alignment) and three IT constructs (adoption, standardization, and innovation) for clinical and supply chain IT. Multivariate fractional logit, probit, and negative binomial regressions are applied. Multivariate regressions controlling for IDS and market characteristics find that measures of IT adoption, IT standardization, and innovative IT adoption are significantly associated with centralization of IT decision rights and strategic alignment. Specifically, centralization of IT decision rights is associated with 22% higher adoption of Bar Coding for Materials Management and 30%-35% fewer IT vendors for Clinical Data Repositories and Materials Management Information Systems. A combination of centralization and clinical IT strategic alignment is associated with 50% higher Computerized Physician Order Entry adoption, and centralization along with supply chain IT strategic alignment is significantly negatively correlated with Radio Frequency Identification adoption : Although IT adoption and standardization are likely to benefit from corporate governance practices within IDSs, innovation is

  14. PENGARUH MEKANISME CORPORATE GOVERNANCE, KUALITAS AUDITOR EKSTERNAL, DAN LIKUIDITAS TERHADAP KUALITAS LABA

    Directory of Open Access Journals (Sweden)

    Amanita Novi Yushita

    2013-10-01

    Full Text Available Abstrak: Pengaruh Mekanisme Corporate Governance, Kualitas Auditor Eksternal, dan Likuiditas Terhadap Kualitas Laba. Tujuan penelitian ini adalah memberikan bukti empiris pengaruh penerapan mekanisme corporate governance yang terdiri dari struktur dewan direksi, kepemilikan manajerial, kepemilikan institusional, komite audit, dan komisaris independen terhadap kualitas laba. Penelitian ini menggunakan sampel sebanyak 22 perusahaan manufaktur yang listing di BEI pada periode 2007-2011. Analisis GLS digunakan sebagai teknik analisis data dalam penelitian ini. Hasil penelitian menunjukkan bahwa struktur dewan direksi, komisaris independen berpengaruh positif dan signifikan terhadap Discretionary Accrual (DTAC atau berpengaruh negatif terhadap kualitas laba. Kemudian kualitas auditor eksternal berpengaruh negatif dan signifikan terhadap Discretionary Accrual (DTAC atau berpengaruh positif terhadap kualitas laba. Sedangkan kepemilikan manajerial, kepemilikan institusional, komite audit, dan likuiditas tidak berpengaruh signifikan terhadap kualitas laba.   Kata kunci: corporate governance, kualitas auditor eksternal, likuiditas, kualitas laba. Abstract: The influence of Corporate Governance Mechanism, External Auditor Quality, and Liquidity on the Quality of Earnings. The purpose of this study is to provide empirical evidence of the effect of the application of corporate governance mechanisms consisting of board structure, managerial ownership, institutional ownership, audit committees and independent commissioners on the quality of earnings. This study used a sample of 22 manufacturing companies listed on the Stock Exchange in the period 2007-2011. GLS analysis is used as a data analysis technique in this study. The results showed that the board structure and the proportions of independent commissioner have a positive and significant effect to discretionary accrual (DTAC or have a negative effect to the earnings quality. The quality of external

  15. KARAKTERISTIK PERUSAHAAN DAN CORPORATE GOVERNANCE TERHADAP MANAJEMEN LABA: STUDI ANALISIS META

    Directory of Open Access Journals (Sweden)

    Zaenal Fanani

    2017-03-01

    Full Text Available This study aimed to examine the factors influencing profit management in Indonesia, namely firm characteristicsand good corporate governance. This study used META- analysis technique which was developed byHunter & Schmidt (1990 and Lipsey & Wilson (2001 by using samples consisting of 12 journals which wereaccredited nationally minimal B. Empirical evidence found that good corporate governance represented byauditor quality, audit committee, management ownership, institutional ownership and independent commissioner,and firm characteristic represented by growth level, firm size, firm performance, firm book value, couldbe the predictor of profit management existence in a company while the other variable namely operation cashcurrent could not be the predictor of profit management in a company.

  16. PENGARUH KINERJA KEUANGAN, GOOD CORPORATE GOVERNANCE TERHADAP NILAI PERUSAHAAN FOOD AND BEVERAGE

    Directory of Open Access Journals (Sweden)

    Tri Kartika Pertiwi

    2012-01-01

    Full Text Available The purpose of this study was to analyze financial performance as measured by Return on Assets (ROA on firm value as measured by Tobin's Q as well as to analyze the Good Corporate Governance as a moderating variable. The research objects were food and beverage firms. The technique analysis was multiple linear regression analysis. The results showed that financial performance was influenced on the value of firms, while the Good Corporate Governance was not a moderating variable of the relationship between the financial performance and the firm value.

  17. An empirical analysis of corporate governance and firm value: Evidence from KSE-100 Index

    Directory of Open Access Journals (Sweden)

    Asad Khan

    2016-04-01

    Full Text Available This paper investigates the impact of corporate governance on firm value measured by Tobin’s Q. Different corporate governance proxies i.e. board size, board independence, audit committee and CEO duality are interacted with firm value. A sample of 91 nonfinancial firms listed on KSE was selected over the period 2010-2014. The findings of the study show that board size and CEO duality had negative impacts on firm value. Moreover, board size, non-executive directors and audit committee had positive and significant impacts on firm value.

  18. Pathological Corporate Governance Deficiencies in South Africa's State-Owned Companies: A Critical Reflection

    Directory of Open Access Journals (Sweden)

    Tebello

    2018-01-01

    Full Text Available Globally, states use state-owned companies (SOCs or public corporations to provide public goods, limit private and foreign control of the domestic economy, generate public funds for the fiscus, increase service delivery and encourage economic development and industrialisation. Particularly given its unique socio-political and economic dynamics, a country such as South Africa clearly needs this type of strategic enterprise. Yet, that does not mean that everything at our SOCs is as it should be. The beleaguered South African Broadcasting Corporation (SABC has recently seen the resignation of board members, shareholder interference in its operational affairs, and a high turnover of chief accounting officers and other executive management members. Due to non-performance, it has also received several cash injections from its shareholder to enable it to continue to deliver its services. In addition, the shareholder minister took it upon herself to amend the SABC's memorandum of incorporation, conferring upon herself the authority to appoint, suspend or even dismiss key executive members. South African Airways (SAA, in turn, has had seven CEOs in less than four years, has had to be bailed out at a cost of R550 million, and has in addition been granted a R5 billion guarantee by the shareholder for a restructuring exercise. Other SOCs such as Eskom, the Post Office and Telkom have also experienced high board and executive management turnover, perennial underperformance necessitating regular bailouts, and challenges regarding the division of power between their boards and the various shareholder ministers. Another issue that seems to plague South Africa's SOCs is the appointment of board members and executive officials with questionable qualifications. By critically examining the corporate governance challenges besetting the SABC, SAA and Eskom in particular, this article seeks to explore the root causes of the corporate governance deficiencies of SOCs

  19. Capital Expenditure, Leverage, Good Corporate Governance, Corporate Social Responsibility: Pengaruhnya Terhadap Nilai Perusahaan

    Directory of Open Access Journals (Sweden)

    Noni Aisyah Sofiamira

    2017-11-01

    Full Text Available This study aims to investigate the effects of capital expenditure, leverage, managerial ownership, institutional ownership, and corporate social responsibility on firm value. We use Tobin’s Q as the proxy of firm value. Our sample firms are 11 mining firms listed in the Indonesian Stock Exchange for years 2011-2014. We generate our date from the official website of the Indonesian Stock Exchange. We run the multiple linear regression to analyze our data statistically. The results show that all independent variables simultaneously affect corporate value. Individual results indicate that managerial ownership (leverage positively (negatively affects firm value. However, other independent variables (institutional ownership and CSR exhibit no significant influence on firm value. Abstrak Penelitian ini bertujuan untuk menganalisis pengaruh capital expenditure, leverage, kepemilikan manajerial, kepemilikan institusional, dan Corporate Social Responsibility terhadap nilai perusahaan yang diproksikan dengan Tobin’s Q pada perusahaan sektor pertambangan yang terdaftar di BEI periode 2011-2014. Penelitian ini menggunakan data sekunder yang diperoleh dari website resmi BEI. Pengamatan dilakukan terhadap 11 perusahaan sebagai sampel yang didapat dari teknik purposive sampling. Hasil penelitian secara simultan seluruh variabel independen berpengaruh terhadap nilai perusahaan. Hasil secara parsial menunjukkan bahwa variabel leverage berpengaruh negatif terhadap nilai perusahaan, kepemilikan manajerial berpengaruh positif terhadap nilai perusahaan, sedangkan kepemilikan institusional dan CSR tidak berpengaruh terhadap nilai perusahaan.

  20. Good Corporate Governance and Earning Management Practices: an Indonesian Cases

    OpenAIRE

    Murhadi, Werner R

    2011-01-01

    This research is done for the purpose of finding out the effect of Good Governance practice can reduce earnings management practice done by company. This research uses companies registered in manufacture sector in Indonesia Stock Exchange Observation period 2005-2007 as samples. Last sample used in this research is 384 years of observation. This research uses OLS method. The result allows that only two variables have significant effect to Earning Management practice which is CEO Duality an co...

  1. Cooperatives: The governance of patronage dividends (A Corporate Finance viewpoint)

    OpenAIRE

    Rodolfo Apreda

    2013-01-01

    Members of cooperatives are patrons and owners simultaneously, which turns out to be a consequential feature ingrained in that sort of business associations. This paper puts forward some contributions to the subject. Firstly, it defines a primary cooperative, making hence a contrast with cooperatives of cooperatives and shaping up their distinctive incremental cash-flow structure. Secondly, it focuses on some governance attributes depicted by patronage dividends in their quest for cash flows ...

  2. Sales compensation governance: the last frontier of corporate reform.

    Science.gov (United States)

    Gundy, Peter R; Gaeta, Elizabeth C

    2004-01-01

    The area of sales compensation has remained relatively untouched by recent pressures for compensation reform. This article highlights some of the ways that sales organizations stumble in managing their compensation programs, and why it takes more than a simple tactical fix to address these problems effectively. The authors describe a more structured governance framework that not only identifies and resolves key sales compensation issues, but ultimately safeguards the effectiveness and financial integrity of the sales organization itself.

  3. Corporate Governance as a Commitmente and Signalling Device

    OpenAIRE

    Angelo Baglioni

    2007-01-01

    A model is presented, where firms issuing equity differ in the ability of their controlling shareholders to extract private benefits: this creates a lemon problem, leading to cross-subsidization across issuers. A governance institution is introduced, enabling large shareholders to (imperfectly) commit to the general interest of shareholders. The following main results are obtained. I) Controlling shareholders willing to apply such an institution are those with a level of private benefits eith...

  4. An exploration of the role of records management in corporate governance in South Africa

    Directory of Open Access Journals (Sweden)

    Mpho Ngoepe

    2013-08-01

    Objectives: Utilising the King report III on corporate governance as a framework, this quantitative study explores the role of records management in corporate governance in governmental bodies of South Africa. Method: Report data were collected through questionnaires directed to records managers and auditors in governmental bodies, as well as interviews with purposively selected auditors from the Auditor-General of South Africa. Data were analysed using various analytical tools and through written descriptions, numerical summarisations and tables. Results: The study revealed that records management is not regarded as an essential component for corporate governance. Records management is only discussed as a footnote; as a result it is a forgotten function with no consequences in government administration in South Africa. The study further revealed that most governmental bodies have established internal audit units and audit committees. However, records-management professionals were excluded from such committees. Conclusion: The study concludes by arguing that if records management is removed as a footnote of the public-sector operations and placed in the centre of operational concern, it will undoubtedly make a meaningful contribution to good corporate governance.

  5. The Financial Crisis between the XXth and XXIst Centuries and the Corporate Governance

    Directory of Open Access Journals (Sweden)

    Niculae Feleaga

    2006-09-01

    Full Text Available The various companies, originating in different countries, have been approaching the corporate governance issues starting early in time. Nowdays, these issues have changed in dimension due to an exponential growth of the financial globalization, the involved companies’ faith being directly linked to the stock market support or critics. Whenever corporate governance is being mentioned within a conference, a paper, or generally in media, each one of us knows that it concerns a company’s control and leadership mechanisms, also concerning the investors’ trust, the accountability and behaviour of the entity’s managers within the social affairs. The capitalism hasn’t stopped evolving during its long history. The last decade corresponds to the transition towards a new type of capitalism, marked by the domination of the finance and knowledge-based economy. During the last years, corporate governance has been the center of a passionate debate. The governance codes and policies have been adopted both at a national and international level, with the purpose of better protecting the shareholders’ interests and/or the involvement of the stakeholders. The good corporate governance practice lays within the answer to a fundamental question: "which is the path for a company x, in a y business environment, to be able to accomplish, in a optimal manner, its main objective: generating and distributing wealth?".

  6. Corporate governance – research of key indicators on market of processing industry in the Czech Republic via cluster analysis

    Directory of Open Access Journals (Sweden)

    Iveta Šimberová

    2012-01-01

    Full Text Available The discussion on corporate governance has oriented on practical problems, including corporate fraud, the abuse of managerial power and social irresponsibility. Contemporary cognition implicates the fact that the questions regarding to corporate governance are very actual especially in relation to company competitiveness, company performance and sustainability of success (long term viability. Paper is focused to the current questions regarding to the definition of corporate governance, looking for the appropriate conceptual framework and identification of key corporate governance indicators in selected industrial market in the Czech Republic via cluster analysis. The scientific aim is looking for the appropriate key indicators in processing industry as a base for the corporate governance performance measurement. The presentations of the results in the paper are just part of selected results in the framework of the elaborated research project titled “Construction of Methods for Multifactor Assessment of Company Complex Performance in Selected Sectors”.

  7. The philosophical premises of the second King Report on corporate governance

    Directory of Open Access Journals (Sweden)

    G.J. Rossouw

    2005-07-01

    Full Text Available This article focuses on the philosophical presuppositions of the second King Report on corporate governance for South Africa (hereafter referred to as the King II Report. Especially in the “Introduction and Background” section of the King II Report it is clear that the Report is premised upon a specific understanding of the present-day corporation and its moral obligations. The purpose of this article is to commit what Charles Taylor called “an act of retrieval” in which the philosophical premises of the King II Report will be unearthed and exposed. It will be argued that the view of the present-day corporation that underlies the King II Report could be related back to a number of debates on the notion of the comtemporary corporation and its moral responsibilities that have been played out since the 1970s. It will be indicated how these debates provide the philosophical foundations for the view of the comtemporary corporation and its moral obligations that is espoused in the King II Report. The claim made in the Report that the African world view and culture influenced the Report’s notion of corporate governance will also be critically reviewed. Finally it will be attempted to evaluate to what extent the recommendations of the King II Report live up to its own philosophical premises.

  8. Corporate governance of public health services: lessons from New Zealand for the state sector.

    Science.gov (United States)

    Perkins, R; Barnett, P; Powell, M

    2000-01-01

    New Zealand public hospitals and related services were grouped into 23 Crown Health Enterprises and registered as companies in 1993. Integral to this change was the introduction of corporate governance. New directors, largely from the business sector, were appointed to govern these organisations as efficient and effective businesses. This article presents the results of a survey of directors of New Zealand publicly-owned health provider organisations. Although directors thought they performed well in business systems development, they acknowledged their shortcomings in meeting government expectations in respect to financial performance and social responsibility. Changes in public health sector provider performance indicators have resulted in a mixed report card for the sector six years after corporate governance was instituted.

  9. Corporate Governance and Information Incorporation Speed: Lead-Lag between the IGC and IBrX

    Directory of Open Access Journals (Sweden)

    José Carneiro da Cunha Oliveira Neto

    2012-04-01

    Full Text Available Based on intraday data with a frequency of 15 minutes, the present study investigates the relationship between the high corporate governance market (IGC and the traditional market (IBrX. The hypothesis tested is that a higher level of corporate governance reduces the cost associated to incorporating new information to asset prices, and so firms with higher governance incorporate information faster. The co-integration relationship between the time series was tested using the Engle-Granger method in two stages. The vector error correction model (VECM and the Granger causality test do not permit the rejection of the hypothesis of faster incorporation of information for the high governance market prices. To estimate the VECM we used a bivariate GARCH BEKK model. The results suggest that the IGC finds its equilibrium price more rapidly and that the IBrX converges to the equilibrium relationship determined by the IGC.

  10. Corporate Governance in Brazilian Companies: The Influence of the Founder in the Financial Decisions.

    OpenAIRE

    Segura, Liliane; Formigoni, Henrique; Abreu, Rute; David, Fátima

    2017-01-01

    All over the world, corporate governance is adopting a new process of leadership and simultaneously propagating responsible governance for the welfare of stakeholders. This research has allowed us to identify new directions for future research. It examines the influence of several contextual factors in the framework of the financial decisions, where company has the right to have a transparent accountability, based on the influence of the founder, dispersion and type of ownershi...

  11. Can Institutional Investors Fix the Corporate Governance Problem? Some Danish Evidence

    DEFF Research Database (Denmark)

    Rose, Caspar

    2005-01-01

    that the black box view of institutional investors should be abandoned. Therefore, it is suggested that a more careful analysis should be devoted to each institutional investor'sown legal environment. JEL Classification: L25, G2 and G3Keywords: Corporate governance, institutional investors, concentrated...

  12. PENGARUH MEKANISME CORPORATE GOVERNANCE TERHADAP PENGUNGKAPAN INTELLECTUAL CAPITAL: PADA PERUSAHAAN IC INTENSIVE

    Directory of Open Access Journals (Sweden)

    Dista Amalia Arifah

    2012-12-01

    Full Text Available Intangible asset proxied by Intellectual Capital has important role to drive companies values creation. Although many companies have applied corporate governance mechanism in order to have IC disclosure recognition, most of them do not focus on Intellectual Capital disclosure yet. The aim of this study is to analyze the influence of corporate governance mechanisms consisting of size of the board commissioners, the independence level of independent commissioner, the activities of independent commissioners, and audit committee on the intellectual capital disclosures of the companies listed in BEI in 2009 using intensive ICs category with the adding of kontrol variables. This study will provide an illustration on how the mechanisms of corporate governance practices and IC disclosure become a value creation source for the company. There are a total of 176 companies categorized as IC intensive. Using a purposive sampling method, 45 companies were selected as samples. The 2009 annual reports of the companies are used as secondary data source of this research. Furthermore, to get ICs disclosure data content analysis technique was used both for quantity and quality terms. The results indicate that audit committee is the only corporate governance mechanism that significantly affects the level of IC disclosures.

  13. The Roles of Corporate Governance in Bank Failures during the Recent Financial Crisis

    NARCIS (Netherlands)

    Berger, A.N.; Imbierowicz, B.; Rauch, C.

    2012-01-01

    Abstract: This paper analyzes the roles of corporate governance in bank defaults during the recent financial crisis of 2007-2010. Using a data sample of 249 default and 4,021 no default US commercial banks, we investigate the impact of bank ownership and management structures on the probability of

  14. Former Audit Partners on Audit Committees: Implications for Russian Corporate Governance

    Directory of Open Access Journals (Sweden)

    Genevieve Scalan

    2017-04-01

    Full Text Available The Moscow Exchange in conjunction with the Organization for Economic Cooperation and Development (OECD continues to address improvements in Russian corporate governance by conducting annual roundtables (OECD, 2017.  My research relates to corporate governance provided by audit committees. I examine relationships between former audit partner (FAP audit committee members and auditors, via a network similar to the interlocking directorate.  Using a dataset of U.S. auditor dismissals, I construct unique network variables measuring the relational ties between FAP audit committees and auditors.  I find some evidence suggesting ties created by former audit partners may increase auditor switching possibly indicating impaired auditor independence. This outcome suggests implications for Russian corporate governance because it is likely Russian Boards of Directors would experience similar circumstances as their U.S. counterparts.  As the Moscow Exchange continues its partnership with the OECD to improve corporate governance, audit quality and auditor independence should be considered in the dialogue.

  15. PENGARUH PENGENDALIAN INTERNAL PERUSAHAAN DAN STRUKTUR CORPORATE GOVERNANCE TERHADAP FEE AUDIT

    Directory of Open Access Journals (Sweden)

    Esti Widiasari

    2016-02-01

    Full Text Available Good internal control and good corporate governance will reduce activities which will be carried out by auditor. The activities reduction will bring about auditor fee cutback. The purpose of the study is to examine the influence of internal control function and corporate governance structures, i.e. major shareholders, independent commissioners and audit committe, toward audit fees. This study is replication of Hay’s et al. research in 2008. The data collection uses purposive sampling method. Data was collected from annual reports of manufacturing companies which listed on Bursa Efek Indonesia in 2005-2007. The method used in analysis is multiple linear regression. The results show that internal audit functions do not affect to audit fees. By contrast, audit committee negatively influence toward audit fees. The two corporate governance structures (major shareholders and independent commissioners have significant positive influncial on audit fees. The results consistent with previous studies and consistent with the explanation that controls are complementary (controls, corporate governance and auditing are complement, an increase in one control will lead to an increase in the others.

  16. Integrating Corporate Governance Concepts in the Classroom with the Risk Assessment Project

    Science.gov (United States)

    Elson, Raymond J.; O'Callaghan, Susanne; Walker, John P.

    2015-01-01

    The recession of 2008 and the demise of established financial firms served as a reminder that effective corporate governance is important to ensure that businesses remain as going concern. One key area is the implementation of effective enterprise-wide risk management practices. The resulting regulatory oversight enacted through the Dodd Frank Act…

  17. An Institutional Configurational Approach to Cross-National Diversity in Corporate Governance

    NARCIS (Netherlands)

    Haxhi, I.; Aguilera, R.V.

    Corporate governance (CG) research has typically been studied from rather disparate disciplinary approaches, thereby offering myopic and often conflicting rationales. We develop an institutional configurational approach to integrate this ‘siloed’ field and explain CG patterns around the world. To do

  18. Australian Public Universities: Are They Practising a Corporate Approach to Governance?

    Science.gov (United States)

    Christopher, Joseph

    2014-01-01

    This article draws on the multi-theoretical approach to governance and a qualitative research method to examine the extent to which the corporate approach is practised in Australian public universities. The findings reveal that in meeting the needs of multiple stakeholders, universities are faced with a number of structural, legalistic, and…

  19. Challenges of Corporate Governance in State-Owned Companies – Croatian Perspectives

    Directory of Open Access Journals (Sweden)

    Boris Crnković

    2011-12-01

    Full Text Available The term corporate governance is related to the agency problem, which is also known as the principalagent problem. In the microeconomic theory the relationship between principal and agent refers to the situation when the owner of the business and the manager running the business are not the same person. In such a case ownership and management are separated, which is a good situation for managers, who can use it to promote some of their own goals which do not necessarily have to correspond to the objectives of the business, i.e. owner of the business. The term corporate governance may also include the way in which owners of the business successfully motivate managers to act in the best interest of the owner of the business, thus maximising the company’s profit. The relationship between the principal and the agent in case of state-owned companies is two-fold (citizens – politicians and politicians – managers. Therefore corporate governance in state-owned companies faces specific challenges. From the perspective of the Republic of Croatia it is clear that progress in the privatisation process cannot be expected soon due to political and economic reasons. Therefore it is necessary to ensure an efficient system of corporate governance in state-owned companies to ensure protection of the interests of the state, i.e. the citizens in state-owned companies.

  20. Financial modelling and corporate governance: A feminist perspective using an optimization approach

    Directory of Open Access Journals (Sweden)

    Desi Adhariani

    2015-12-01

    Full Text Available This study is aimed at projecting the financial condition of the company using the feminist ethics of care integrated in corporate governance principles. The research question to be answered is: How the financial condition of the company in the future is affected if the feminist ethics of care is applied in its corporate governance practices? The research question is answered using the quantitative optimisation method to develop the financial planning model for the period 2012-2016. BHP Billiton which is one of the world’s largest resources company is selected to be the sample of this case study. The projection of the financial condition for the five-year period 2012-2016 showed that BHP Billiton, Ltd. can achieve an overall positive economic value retained in the projected period even though negative results exist for 2015 and 2016. Sensitivity analysis was performed by providing two examples of alternatives or scenarios to show the impact on the projected financial condition. It can be concluded that the Company’s financial condition will be stable in the future. The use of the ethics of care simultaneously as a lens to support corporate governance practices and as guidance in financial projection has not been conducted in previous studies. This study therefore, offers an original contribution to the literature of corporate governance, business ethics and financial planning.

  1. Peranan Audit Internal Terhadap Penerapan Good Corporate Governance Pada PT. Bank Sulselbar

    OpenAIRE

    2012-01-01

    Penelitian ini bertujuan untuk mengetahui peranan audit internal terhadap penerapan good corporate governance pada PT. Bank Sulselbar di Makassar. Data penelitian ini diperoleh dari kuesioner dan wawancara kepada pihak yang terkait serta beberapa informasi melalui penelitian kepustakaan. Temuan penelitian menunjukkan bahwa variabel audit internal yang terdiri dari independensi, kompetensi, program audit internal, pelaksanaan audit in...

  2. Royal Ahold : A Failure of Corporate Governance and an Accounting Scandal

    NARCIS (Netherlands)

    de Jong, A.; DeJong, D.V.; Mertens, G.M.H.; Roosenboom, P.G.J.

    2005-01-01

    Royal Ahold (Koninklijke Ahold NV) was one of the major success stories in the 1990s and is one of the major failures, suffering a complete meltdown, in 2003.We investigate the strategy, accounting transparency and corporate governance of Ahold; elements which jointly drive the firm s performance

  3. Corporate governance in the Netherlands : an overview of the application of the Tabaksblat Code in 2004

    NARCIS (Netherlands)

    Akkermans, Dirk; van Ees, Hans; Hermes, Niels; Hooghiemstra, Reggy; van der Laan, Gerwin; Postma, Theo; van Witteloostuijn, Arjen

    2007-01-01

    This article examines the overall acceptance of the best practice provisions contained in the Dutch corporate governance code and identifies those that receive comparably less agreement among 150 Dutch listed companies in 2004. The findings indicate a high level of compliance with the Code.

  4. Economies of scale and scope in banking : Effects of government intervention, corporate strategy and market power

    NARCIS (Netherlands)

    Dijkstra, M.A.

    2017-01-01

    The financial crisis and ensuing policy responses have made the question of economies of scale and scope in the banking sector as topical as ever. This dissertation estimates economies of scale and scope in the banking sector and discusses the role of government intervention, corporate strategy and

  5. The Influence of Corporate Governance Perception Index, Profit Management, and Industrial Type To Environmental Disclosure.

    Directory of Open Access Journals (Sweden)

    Amanda Chrysanti

    2015-12-01

    Full Text Available Thisresearchaims to empirically analyze the influence ofCorporate Governance Perception Index, earnings management,and industry type on environmental disclosure. Environmental Disclosure is the dependent variables in this research were measured by scoring technique based on GRI3.1 Guidelines. For the independent variables in this research, using Corporate Governance Perception Index were measured by CGPI index score, earnings management were measured by discretionary accruals, and industry type were measured bycategorial. This research uses secondary data which population are companies entered Corporate Governance Perception Index in 2009-2012. While the sampling method used was purposive sampling method which is overall 44 sample choose. This research uses multiple regression method to test the hypothesis with SPSS computer program. From the analysis performed in this research, it can be concluded that Corporate Governance Perception Index has positively and significant influence to environmental disclosure. The other hand earnings management has no significant influence to environmental disclosure. The last one industry type has negatively and significant influence to environmental disclosure.

  6. CSR as value attunement within governance processes : stakeholder dialogue, corporate principles and regulation

    NARCIS (Netherlands)

    de Graaf, Frank Jan

    2016-01-01

    I argue that a governance perspective on corporate social responsibility (CSR) makes it possible to explain why the concept will always be under-defined, is normative and thus political by nature, and is and should be difficult to measure. The perspective also makes it possible to understand the

  7. The Influence of Corporate Governance Mechanism on the Relationship between Related Party Transactions and Earnings Management

    Directory of Open Access Journals (Sweden)

    Aria Farah Mita

    2014-04-01

    Full Text Available The objective of this study is to investigate the relationship between related party transactions (RPT and earnings management. This study argues there is a different influence between RPT a priori likely to result in expropriation and RPT a priori not likely to result in expropriation. RPT a priori likely to result in expropriation creates an incentive to management or controlling shareholder to overstate income to cover or mask their expropriation. This study uses non-absolute discretionary accruals based on Kazsnik model to proxy earnings management. Corporate governance mechanism should reduce the incentive to overstate income in a company that involves in RPT a priori likely to result in expropriation. The results of this study show that the earnings management (income increasing is affected by the existence of RPT a priori likely to result in expropriation and corporate governance mechanism, but it is not affected by the size/value of the transactions. As expected, companies involving in RPT a priori likely to result in expropriation with weak corporate governance mechanism, tend to manage earnings that increase income. We find that strong corporate governance mechanism decreases the discretionary accruals in companies which have RPT a priori likely to result in expropriation.

  8. Corporate governance and stock price performance of firms during the crisis

    DEFF Research Database (Denmark)

    Farooq, Omar; Chetioui, Youssef

    2012-01-01

    with superior stock price performance. We argue that lower agency problems that accompany firms with better corporate governance mechanisms make it hard for controlling shareholders to expropriate, thereby improving stock price performance. Our results are important in a way that they highlight the power...

  9. Comparative Analysis of the Corporate Governance Codes of the Five BRICS Countries

    Directory of Open Access Journals (Sweden)

    Marcelle Colares Oliveira

    2014-12-01

    Full Text Available The objective of the study was to compare the codes of good corporate governance (CG practices adopted by the five BRICS countries (Brazil, Russia, India, China and South Africa using the set of practices recommended by the United Nations (UN as categories of analysis. The present study was exploratory (our comparison of the CG codes of the five BRICS countries in light of the UN recommended practices has no precedent in the literature. Its nature is qualitative because we performed a multiple case study focused on a specific group of countries – BRICS – and used the content analysis technic to analyze and cross data with the literature reviewed. The research is documental because it is based on a review of documents and the literature. Among the five BRICS countries, the Corporate Governance codes of Brazil, Russia and South Africa are those most closely aligned with the recommendations set forth by the UN. It was observed that although these countries are developing their codes of good corporate governance practices focused on the requirements of international investors, corporate governance and codes in these countries are at very different stages. In comparison, the low level of convergence of the Chinese and Indian codes with the UN recommendations suggests a greater concern in those countries with the local context than with international standards.

  10. 41 CFR 102-118.30 - Are Government corporations bound by this part?

    Science.gov (United States)

    2010-07-01

    ... 41 Public Contracts and Property Management 3 2010-07-01 2010-07-01 false Are Government corporations bound by this part? 102-118.30 Section 102-118.30 Public Contracts and Property Management Federal Property Management Regulations System (Continued) FEDERAL MANAGEMENT REGULATION TRANSPORTATION 118...

  11. The Role of Corporate and Government Surveillance in Shifting Journalistic Information Security Practices

    Science.gov (United States)

    Shelton, Martin L.

    2015-01-01

    Digital technologies have fundamentally altered how journalists communicate with their sources, enabling them to exchange information through social media as well as video, audio, and text chat. Simultaneously, journalists are increasingly concerned with corporate and government surveillance as a threat to their ability to speak with sources in…

  12. Corporate Governance dan Relevansi Nilai Dari Penghindaran Pajak: Bukti Empiris Dari Pasar Modal Indonesia

    Directory of Open Access Journals (Sweden)

    Elly Purnama Sari

    2016-10-01

    Full Text Available Penelitian ini bertujuan untuk menguji dan memberikan bukti empiris tentang pengaruh penghindaran pajak dan karakteristik perusahaan terhadap relevansi nilai, serta peran corporate governance dalam mempengaruhi penghindaran pajak terhadap relevansi nilai. Pengujian ini dilakukan pada 142 perusahaan publik yang tecatat pada Bursa Efek Indonesia selama periode 2012-2014 dengan menggunakan teknik analisi Partial Least Square (PLS. Hasil penelitian menunjukkan bahwa penghindaran pajak berpengaruh positif terhadap relevansi nilai. Karakteristik perusahaan berpengaruh negatif terhadap relevansi nilai. Serta corporate governance secara signifikan mengurangi pengaruh penghindaran pajak terhadap relevansi nilai. Penelitian ini memberikan implikasi yang luas mengenai agency problem yang digambarkan melalui tindakan penghindaran pajak perusahaan, serta signalling theory yang digambarkan dengan peningkatan relevansi nilai perusahaan. Penelitian ini juga memberikan implikasi kepada manajemen sebagai pengelola perusahaan agar lebih transparan dalam menyediakan informasi perusahaan dan mengoptimalkan penerapan mekanisme corporate governance untuk dapat menyajikan informasi keuangan yang berkualitas. Investor dalam melakukan kebijakan investasi tidak hanya melihat kemampuan perusahaan dalam menghasilkan laba, namun juga harus mempertimbangan peran krusial good corporate governance sebagai mekanisme kontrol terhadap perilaku oportunistik manajer. Terakhir, penelitian ini dapat memberikan implikasi bagi pihak regulator, khususnya kantor pajak untuk membuat regulasi yang lebih relevan dalam fungsi pengawasan dan dalam memeriksa pajak perusahaan agar penerimaan negara yang bersumber dari pajak dapat dioptimalkan.

  13. DEBUNKING THE RELATIONSHIP BETWEEN LAW AND CAPITALISM: HOW CORPORATE GOVERNANCE FAILURES CONTRIBUTE TO THE FINANCIAL CRISIS IN INDONESIA?

    Directory of Open Access Journals (Sweden)

    Muhammad Yahdi Salampessy

    2016-12-01

    Full Text Available The recent global financial catastrophe has raised questions about the relationship between corporate governance and the crisis. Many scholars attribute the crisis to the corporate failure and the Anglo-Saxon model of capitalism. Much of the literatures, however, tend to focus on examining the issue of financial crisis in the developed economy. Following up this line of literatures, this paper will extend the discussion of the role of corporate governance in financial crisis in the developing world. Using Indonesia as a case study, this paper will look at evidence that has emerged from the recent financial crisis regarding the failures of corporate governance in addressing and preventing the crisis.

  14. Data on empirically estimated corporate survival rate in Russia

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    Evgeny A. Kuzmin

    2018-02-01

    Full Text Available The article presents data on the corporate survival rate in Russia in 1991–2014. The empirical survey was based on a random sample with the average number of non-repeated observations (number of companies for the survey each year equal to 75,958 (24,236 minimum and 126,953 maximum. The actual limiting mean error ∆p was 2.24% with 99% integrity. The survey methodology was based on a cross joining of various formal periods in the corporate life cycles (legal and business, which makes it possible to talk about a conventionally active time life of companies’ existence with a number of assumptions. The empirical survey values were grouped by Russian regions and industries according to the classifier and consolidated into a single database for analysing the corporate life cycle and their survival rate and searching for deviation dependencies in calculated parameters. Preliminary and incomplete figures were available in the paper entitled “Survival Rate and Lifecycle in Terms of Uncertainty: Review of Companies from Russia and Eastern Europe” (Kuzmin and Guseva, 2016 [3]. The further survey led to filtered processed data with clerical errors excluded. These particular values are available in the article. The survey intended to fill a fact-based gap in various fundamental surveys that involved matters of the corporate life cycle in Russia within the insufficient statistical framework. The data are of interest for an analysis of Russian entrepreneurship, assessment of the market development and incorporation risks in the current business environment. A further heuristic potential is achievable through an ability of forecasted changes in business demography and model building based on the representative data set.

  15. Data on empirically estimated corporate survival rate in Russia.

    Science.gov (United States)

    Kuzmin, Evgeny A

    2018-02-01

    The article presents data on the corporate survival rate in Russia in 1991-2014. The empirical survey was based on a random sample with the average number of non-repeated observations (number of companies) for the survey each year equal to 75,958 (24,236 minimum and 126,953 maximum). The actual limiting mean error ∆ p was 2.24% with 99% integrity. The survey methodology was based on a cross joining of various formal periods in the corporate life cycles (legal and business), which makes it possible to talk about a conventionally active time life of companies' existence with a number of assumptions. The empirical survey values were grouped by Russian regions and industries according to the classifier and consolidated into a single database for analysing the corporate life cycle and their survival rate and searching for deviation dependencies in calculated parameters. Preliminary and incomplete figures were available in the paper entitled "Survival Rate and Lifecycle in Terms of Uncertainty: Review of Companies from Russia and Eastern Europe" (Kuzmin and Guseva, 2016) [3]. The further survey led to filtered processed data with clerical errors excluded. These particular values are available in the article. The survey intended to fill a fact-based gap in various fundamental surveys that involved matters of the corporate life cycle in Russia within the insufficient statistical framework. The data are of interest for an analysis of Russian entrepreneurship, assessment of the market development and incorporation risks in the current business environment. A further heuristic potential is achievable through an ability of forecasted changes in business demography and model building based on the representative data set.

  16. Determinants of Interest Rates on Corporate Bonds of Mining Enterprises

    Science.gov (United States)

    Ranosz, Robert

    2017-09-01

    This article is devoted to the determinants of interest rates on corporate bonds of mining enterprises. The study includes a comparison between the cost of foreign capital as resulting from the issue of debt instruments in different sectors of the economy in relation to the mining industry. The article also depicts the correlation between the rating scores published by the three largest rating agencies: S&P, Moody's, and Fitch. The test was based on simple statistical methods. The analysis performed indicated that there is a dependency between the factors listed and the amount of interest rates on corporate bonds of global mining enterprises. Most significant factors include the rating level and the period for which the given series of bonds was issued. Additionally, it is not without significance whether the given bond has additional options. Pursuant to the obtained results, is should be recognized that in order to reduce the interest rate on bonds, mining enterprises should pay particular attention to the rating and attempt to include additional options in issued bonds. Such additional options may comprise, for example, an ability to exchange bonds to shares or raw materials.

  17. Public opinion, risk to reputation: The essentials of societal corporate governance?

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    Catherine Malecki

    2012-12-01

    Full Text Available Research Question/Issue: This paper will examine the role of reputation regarding corporate governance in terms of performance, risk control and the possible role of legislature or behaviors in this field (in particular with regards to the recent Green Paper “Companies in the EU: a management of governance”, COM (2011 164 final, of the 5th April 2011, of the European Commission. Research Findings/Insights: Image, reputation, positive or negative opinion, notoriety of the companies and their managers are regarded as an element of their performance. It is accepted that public opinion, inherently linked to the reputation risk is an essential element of corporate governance. Regarding the need of a long term matter, particularly after the financial crisis, a short period of time is enough to transform a positive public opinion into a negative one. In addition, the assessment of public opinion is complex. Everyone can freely form an “opinion”. The opinion may be private and public. Public opinion refers to society, to citizens and to the people. Its classic means of expression are freedom of the press and freedom of speech. This question is particularly crucial regarding the role of the companies to the “society” as recently defined by the Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the committee of the Regions, A renewed EU strategy 2011-14 for Corporate Social Responsibility, the European Commission and the European Parliament (Brussels, 25.10.2011 COM (2011 681 final. Theoretical/Academic Implications: How to manage good corporate governance reputation ?As from 1979, the Anglo-Saxon doctrine has acutely highlighted the role of reputation risk regarding corporate governance but what is the situation within the EU? Has legislature, in Europe (and for example, in France, sufficiently acknowledged the concept of reputation risk control? – A long term period

  18. Corporate governance and competitiveness in the context of Serbian approaching to EU

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    Knežević Vladimir

    2016-01-01

    Full Text Available The theme of this work is corporate governance and competitiveness of Serbia in the context of approaching the European Union. Serbia is a country in the process of admission to this integration, for which it must fulfill a number of conditions. The most important conditions, besides political, are economic, and their very essence may be defined as an increase in competitiveness of its economy. Our goal is to point out the connection between these two issues and the phenomenon of corporate governance. To this end, among the indicators for measuring the competitiveness of the economies in the world, used by the World Economic Forum, we have chosen those who are directly connected to the internal and external mechanisms of corporate governance. In comparative analysis we have used the latest results in this area that are related to Serbia and its neighboring countries. Comparing those who are members of the European Union, but also those who belong to the candidate group, we concluded that Serbia lags behind both groups according to most of the analysed indicators. In this way, we have shown that corporate governance is essential segment of competitiveness of the national economy, and that Serbia lags behind all comparable countries in meeting the economic criteria for admission to the European Union. It was concluded that in the process of approaching the European Union, Serbia must improve the competitiveness of its economy, and one way is to raise the quality of corporate governance in it, because these are firmly related phenomena that have an intense mutual influence.

  19. In search of effective corporate governance: an explorative research within the context of semi public housing management in the Netherlands

    NARCIS (Netherlands)

    Dreven, C.F. van; Koolma, H.M.

    2016-01-01

    In this paper the authors elaborate, supported by literature on trust, a framework for corporate governance that might overcome lacunas in the classical frameworks of the principal agency theory and the stewardship theory. A historical analysis of the development of corporate governance in the

  20. Does media governance restrict corporate overinvestment behavior? Evidence from Chinese listed firms

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    Huili Zhang

    2015-03-01

    Full Text Available Using China’s A-share listed firms from 2007 to 2011, this paper empirically tests how media governance affects firms’ levels of overinvestment and whether external supervision and informal institutional mechanisms reduce these levels. We find that media governance and overinvestment are significantly negatively related. When firms are located in a district with a stronger media governance environment their levels of overinvestment are lower, indicating that media governance significantly restricts overinvestment behavior. When internal corporate governance efficiency is low, the negative relationship between the media environment and overinvestment behavior is significantly enhanced, indicating that when internal governance or formal systems have reduced efficacy, an important complementary role is played by external supervision and the informal institutional environment. After considering endogeneity and different measures of overinvestment and other related variables, the conclusions remain unchanged.

  1. Does corporate governance matter after all? governance scores and the value of Canadian companies

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    Eloisa Perez-de Toledo

    2015-10-01

    Full Text Available This study assesses the determinants of governance in the case of Canadian firms and examines the relationship between governance and firm value after the 2008 financial crisis. We estimate the effect of governance on stock return by using different econometric approaches. Our results show that large firms and firms with higher market-to-book value adopt better standards of governance. However, the results show a negative impact of governance on stock return. Therefore, providing important insights to policy makers that have recently proposed changes to the Canadian regulatory system. Our results show a lack of market enforcement, therefore, self-regulation is unlikely to be an effective mechanism for implementation of best practices of governance

  2. Corporate Governance Induces Best Performance and Inhibits Leverage: Brazilian Industry Evidence of Oil & Gas

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    Vládia Geane Moura Silva

    2015-08-01

    Full Text Available Purpose. This study analyzes the oil industry, gas and biofuels in order to identify associations between corporate governance practices with capital structure, risk and performance.Methodology. These data were verified through 3SLS models (Three-Stage Least Squares. For this, we used a data set composed of 19 companies, for a panel data analysis in the period 2005-2009.Findings. The results suggest a negative association between leverage and corporate governance company level, supporting the substitution hypothesis, according to which the leverage works as a governance substitute. Also they did not reject the hypothesis that the greater the governance practices, greater market performances and accounting of these companies, as well as reduces the market risk.Limitations. The main limitation of this research is the sample size, 19 companies, with particular focus on an industry, reducing the generalizability of the results.Originality/Value. This study sought to contribute to the understanding of the relationship between corporate governance, capital structure, performance and risk; specifically for the oil, gas and biofuels in Brazil, an important and understudied emerging market.

  3. Effect of corporate governance mechanisms on the relationship between legal origins and cost of debt

    DEFF Research Database (Denmark)

    Farooq, Omar; Derrabi, Mohamed

    2012-01-01

    How do differences in country-level governance and enforcement mechanisms affect firms? Using a large dataset from the MENA region, we document that differences in legal traditions translate into differences in cost of debt. Our results show that firms headquartered in the common law countries have...... lower cost of debt than firms headquartered in the civil law countries. Our results also show that bulk of the difference in cost of debt between firms headquartered across the two legal regimes can be explained by the corporate governance mechanisms. Our results have implication for firms in the civil...... law countries in a way that they highlight that higher cost of debt in the civil law countries can be offset by improving firm-level corporate governance mechanisms....

  4. Relationship Analysis of Corporate Governance, Corporate Social Responsibility Disclosure and Economic Consequences: Empirical Study of Indonesia Capital Market

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    Dody Hapsoro

    2017-10-01

    Full Text Available The objective of this study is to investigate the relationship between corporate governance (CG, corporate social responsibility (CSR disclosure, and economic consequences. Broadly speaking, the CG variables consist of ownership structure and management/control structure. The CSR disclosure variables consist of economic, environmental, social, human rights, societal, and product responsibility dimensions. The economic consequences variables consist of bid-ask spreads, trading volume, and share price volatility. The hypotheses are tested using a structural equation modeling analysis with 210 samples of listed firms on the Indonesian Stock Exchange in 2014. The result of this study is as follows: (1 the effect of the proportion of board of directors from the board of commissioners and the audit committee on the CSR disclosure is positive and significant; (2 the effect of the proportion of independent commissioners and the audit committee from the board of commissioners, the audit committee, and the board of directors on CSR disclosure is positive and significant; and (3 the effect of CSR disclosure on trading volume is positive and significant. The main implication of this study is that CSR disclosure activities have a very important role in meeting stakeholders' interests and ensuring the sustainability of the company long-term. In addition, CSR disclosure is considered to be an assertion of a company’s brand differentiation, which means obtaining operating licenses both from the government and society, and the company’s risk management strategy.

  5. The Effects of Environmental, Social and Governance on the Corporate Performance of Malaysian Government-Linked Companies

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    Kweh Qian Long

    2017-01-01

    Full Text Available This study examines the impacts of ESG on the corporate performance government-linked companies (GLCs in Malaysia. For the period 2006-2012, ESG disclosure data were extracted from the Sustainalytics ESG performance reports, while financial data were obtained from the Bloomberg database. Data development analysis (DEA was used to estimate efficiency in the first stage; a regression analysis was performed to test the relationship between ESG and efficiency in the second stage. The empirical results of this study show that GLCs focused more on governance disclosures, followed by social and environmental aspects. Moreover, governance will improve firm efficiency, but social and environmental factors have no similar effect. In conclusion, this study provides insight on the limited literature on ESG and informs the relevant stakeholders on the important ESG components for financial and investment decisions.

  6. CORPORATE GOVERNANCE-THE ROLE AND APPLICATION OF THE PRINCIPLE OF TRANSPARENCY

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    Fulop Melinda Timea

    2011-07-01

    Full Text Available The aim of the current research is to clarify the concept of corporate governance as we believe it is a relatively new concept at national level. At the same time, our analysis focused on the manner in which the principle of transparency has been incorporated into the recommendations and regulations/provisions of the Bucharest Stock Exchange (Romanian: BVB and how this principle has been applied by the companies listed with the BVB. In order to accomplish the objectives of our research, we adopted a deductive approach, from general to specific, by means of which we were able to combine qualitative with quantitative studies. Therefore, our approach started from the definition found within the principles of OECD according to which corporate governance is the system by which companies are run and controlled. In Romania, the concept of corporate governance was first advanced in 1999 by the Strategic Alliance of the Business Associations (Romanian: ASAA, which drew up a Voluntary code of corporate governance in association with the Confederation of Private Entrepreneurs in Timis county and the Chamber of Commerce and Industry of Romania and Bucharest. Another facet of our research is the principle of transparency and the manner in which entities should put it to practice in order to ensure efficient corporate governance. To this effect, since the beginning of 2009 the entities listed with the BVB have been under obligation to report which recommendations of the new Corporate Governance Code have actually been implemented by the company in the current financial year by disclosing to BVB the Comply or Explain Statement. The findings of our research show that the concept of corporate governance has lately been a matter for intense debate due to the famous financial failures in recent years. In 2009, Transelectrica was the only company in tier I of the BVB which filled in and submitted the Comply or Explain Statement. Therefore, we believe that

  7. The Impact of Corporate Governance and the Cost of Capital in Shipping

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    Vicky Zampeta

    2015-10-01

    Full Text Available Purpose - The main aim of this paper is to analyze the impact of corporate governance and the cost of capital in shipping industry. The present study grasps on a doctoral thesis aiming to analyze the above developments in the shipping industry in general and mostly in the Greek owed shipping companies and how these developments have been evaluated by the top executives based on a market research we have conducted. Design/methodology/approach - The main idea for the consolidation of the results of the regression methodology used is to analyze research hypotheses related to effects of Corporate Governance in the shipping industry, emerged in a previous article by Zampeta (2011 and Thalassinos and Zampeta (2012. The research hypotheses will be explored with econometric methodology to be confirmed or rejected depending on the statistical significance of the coefficients of the factors - variables selected and express their respective cases. The specific way of analyzing the answers from the questionnaires used sufficiently cover the concept of triangulation (triangulation because they use primary research data (sample analysis questionnaires, with acceptable bibliography concerning the impact of globalization and the evolution international trade financing cost of shipping enterprises. There is a need to exploit the results of the factorial analysis used by Zampeta (2011, Thalassinos and Zampeta (2012 and Thalassinos and Zampeta (2015 to the methodology of regression to analyze research hypotheses related to the Factor of the Cost of Capital and the Factor of Corporate Governance and their impacts in the Shipping Industry. Findings - The results of the subject research confirm the views of the top executives that specific explanatory variables are forming the factors referring to corporate governance and the cost of capital in the shipping industry. In addition, they have influenced the decision of the shipping companies to adopt the Corporate

  8. Corporate Governance Provisions, Family Involvement, and Firm Performance in Publicly Traded Family Firms

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    Esra Memili

    2015-07-01

    Full Text Available This study examines the moderation effects of corporate governance provisions on the link between family involvement (i.e., family ownership and family management in publicly-traded firms and firm performance by drawing upon agency theory, with a focus on principal-principal agency issues, and the extant family governance literature. We develop and test the hypotheses on 386 of the S&P 500 firms longitudinally. Findings support the hypotheses suggesting the moderation effects of the use of provisions (a protecting controlling owners in terms of their sustainability of controlling status, and (b protecting management legally on the inverted U-shaped relationship between family ownership and firm performance. We also found support for the moderation effects of provisions (c protecting controlling owners in terms of their voting rights, (d protecting noncontrolling owners, and (e protecting management monetarily on the inverted U-shaped relationship between family management and firm performance. By this, our study provides empirical support for the principal-principal agency perspective on the corporate governance in publicly-traded family firms. As such, it suggests new avenues of research for both the corporate governance literature, as well as for the theory of the family firm. Our study also offers insights to policy directed toward monitoring the actions of large shareholders such as family and enhancing the overall shareholder value in publicly-traded family firms.

  9. Unlocking the “Prisoner’s Dilemma” of Corporate Water Stewardship in South Africa—Exploring Corporate Power and Legitimacy of Engagement in Water Management and Governance

    Directory of Open Access Journals (Sweden)

    Suvi Sojamo

    2015-05-01

    Full Text Available Corporate water stewardship, i.e., proactive water-using corporate engagement in water management and governance, has been hailed as a solution to global water challenges. However, it has also aroused criticism and skepticism, as it has been feared to lead to private securitization of resources and institutional capture especially in locations with weak public institutions and regulation. This article tackles this “prisoner’s dilemma” of corporate water stewardship by exploring when and how it is legitimate considering the private nature of corporations and their power to change water management and governance processes and their outcomes. An analytical framework is constructed based on a literature review and applied into a case-study of corporations active in water stewardship initiatives in South Africa. The case-study findings suggest that the stewardship agenda would benefit from (1 a more open acknowledgement of power asymmetries between corporations and other parties; (2 more careful and systematic evaluation and enhancement of legitimacy of corporations to engage in public good and common pool water resources in the first place; and (3 stewardship actions should support stronger public institutions and especially civil society to equally participate. The research community is called in to scrutinize and facilitate the multi-actor water governance processes, which include corporations to assist in the effort.

  10. Corporate governance of the state-owned enterprises in an emerging country: Risk management and related issues

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    Noluthando Shirley Matsiliza

    2017-07-01

    Full Text Available This article assesses the extent to which state owned enterprises (SOE have complied with corporate governance codes, as recommended by King III in South Africa. Corporate governance in the post-apartheid era has changed irrevocably. The development path which is the agenda to transform state owned enterprises has been a trial and error (trend in South Africa. This paper argues that the South African State Owned Enterprises (SOEs have applied the King III principles of corporate governance, while grappling with structural changes that impact in their practice regarding their organisational performance on risk and corporate governance. Along with regulatory measures on corporate governance, the SOEs are looking at strategies to translate the concept of corporate governance into practical solutions that involve stakeholders and government support. Using a qualitative approach, this theoretical paper employed document analysis for data collection and analysis. This paper calls for more risk intelligent management of agencies so that future opportunities and threats are recognized and addressed promptly and effectively. The value of this paper is based on its contribution to the existing knowledge area on corporate governance and leadership

  11. PEMILIHAN MODEL ORGANISASI DAN TERWUJUDNYA PRINSIP-PRINSIP GOOD CORPORATE GOVERNANCE

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    Aries Susanty

    2012-02-01

    Full Text Available Ketidakmampuan penerapan prinsip good corporate governance (GSC didemonstrasikan dalam survei dengan konstrain yang diklasifikasikan dalam 3 konstrain yaitu konstrain internal, konstrain eksternal dan konstrain yang berasal dari struktur pemilik. Konstrain internal meliputi komitmen pemimpin dan pekerja, tingkat pemahaman prinsip GCG oleh pemimpin dan pekerja, keefektifan sistem kontrol internal dan formality trap (implementasi CG hanya untuk memenuhi regulasi. Konstrain internal yang disebutkan berkaitan dengan fungsi internal perusahaan. Sebagai sebuah organisasi bisnis, korporasi tidak mampu mencapai tujuan menerapkan GCG dengan sukses bila tidak didukung elemen internal organisasi. Untuk membentuk fungsi internal diperlukan diagnosa korporasi dengan model organisasi. Dalam hal ini, penulis menggunakan beberapa kriteria untuk memilih model yang paling tepat dari 10 model yang ada. Dari beberapa kriteria dapat disimpulkan bahwa Adaptasi Pascal merupakan model yang paling tepat. Model ini dapat menggambarkan hubungan antara kondisi tiap elemen organisasi dengan kesuksesan implementasi prinsip GCG. Kata kunci: Prinsip Good Corporate Governance, model organisasi             The inability to implement the principles of good corporate governance (GCG as demonstrated in the surveys is due to a number of constraints which can be classified into three; namely internal constraints, external constraints, and constraints coming from the structure of ownership. Internal constraints cover the commitment of leaders and workers, the level of understanding of GCG principles from leaders and workers, good example from leaders, the corporate culture supporting the implementation of GCG principles, effectiveness of internal control system, and formality trap (implementing CG only to meet regulations. The issues in the internal constraints mentioned are related to the internal  functions of the company. As a business organization, corporation is unable

  12. The mechanisms of corporate governance in the United States: an assessment

    Directory of Open Access Journals (Sweden)

    Aldrighi Dante Mendes

    2003-01-01

    Full Text Available This paper aims at evaluating the mechanisms of corporate governance currently at work in the United States. Section 1 turns its focus to the reasons accounting for the still relative scarceness of large shareholders in American publicly held companies. The analysis thereafter concentrates on assessing the efficacy of each of the pillars purportedly buttressing the American system of corporate control. The paper argues that the evidence provided by the existing corporate governance literature supports the following propositions: 1 the legal and regulatory framework actually restrains the scope for expropriating minority shareholders, though at the cost of inhibiting institutional investor activism; 2 as a rule, the board of directors do not comply with their mandatory duty of overseeing management, although some progress has recently been made, with directors in several companies becoming less submissive to chief executive officers; 3 the market for corporate control encounters a great number of difficulties (ranging from legal hurdles to high transaction costs and to serious free-riding problems, which are sufficient to cast a cloud on its reliability as a means of repressing managerial inefficiencies and rent-seeking; 4 competition in the product and capital markets is likely to produce effects only in the long-run.

  13. CORPORATE GOVERNANCE AND FIRM VALUE IN EMERGING MARKETS AN EMPIRICAL ANALYSIS OF ADR ISSUING EMERGING MARKET FIRMS

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    Aysun Ficici

    2012-01-01

    Full Text Available This study explores the value implications of good corporate governance for a sample of 54 ADR issuing emerging market firms (EMFs from 9 countries primarily located in the regions of Asia, Eastern Europe and Latin America and the and employs recently constructed company composite corporate governance metric along with some alternative corporate governance measures associated with the origin of the issuing firm. Although the ADR literature primarily focuses on the impact of subscription to US disclosure requirements we contend that company and country specific corporate governance standards play a significant role in the risk reduction and ensuing value capture.  The fundamental inquiry in this study has the following foci: The primary focus is on the impact of corporate governance structures on firm performance as to whether adherence to standards creates market value for ADR issuing EMFs.  Do good corporate governance practices affect the value of EMFs? The secondary focus is concerned with whether the impact of corruption level and legal system in a firm’s home country affect the corporate structures of EMFs thus affecting the market value of firms.  In this study, we utilize Tobin’s q as the measure of firm performance/market value.  Our findings suggest that there is a significant correlation between corporate governance structures of ADR issuing EMFs and their market values and/or performances.  The results also indicate that the level of corruption and legal structures in home countries of EMFs strongly impact the corporate governance structures of these firms and sequentially affect their market values. Therefore, this research further contributes to the scholarly findings and suppositions that corporate structures of firms do create consequences on firm value.

  14. SUSTAINABILITY AS BUSINESS STRATEGIC: THE CORPORATE GOVERNANCE AND APPLICATION OF THE TRIPLE BOTTOM LINE IN MASISA

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    Lira Luz Lazaro Benites

    2013-05-01

    Full Text Available The idea of ​​sustainability in a company indicates that to achieve a good economic performance, companies should adopt a strategy that includes the triple bottom line concept, according to which the companies should be accountable for their performance in the economic, environmental and social areas. This paper aims to describe the benefit to put sustainability at the heart of the corporate governance as a business strategy that will generates value from the search for better social and environmental outcomes. We mention the example of the Masisa Company to analyze the implementation of the Triple Bottom Line and Corporate Governance in both countries where it operates, Brazil and Chile.

  15. KORELASI ANTARA POSISI ELEMEN-ELEMEN ORGANISASI DENGAN TERWUJUDNYA KARAKTER GOOD CORPORATE GOVERNANCE

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    Aries Susanty

    2012-02-01

    Full Text Available Tatakelola perusahaan yang baik dan Model 7-S berhubungan erat dengan pendekatan proses internal. Pendekatan ini menekankan suatu fungsi internal yang selaras untuk mencapai target organisasi. Untuk mencapai target organisasi, tatakelola perusahaan yang baik dan Model 7-S merupakan pendekatan paralel, yang berhubungan satu sama lain. Hubungan antara tatakelola perusahaan dan Model 7-S dapat dijelaskan melalui Model Adaptasi Pascal. Dalam model ini, setiap elemen organisasi yaitu strategi, struktur, sistem, gaya, staf, nilai yang dibagi dan juga keahlian memiliki kontinum. Kontinum ini menyebabkan setiap elemen organisasi cenderung untuk muncul pada domain yang dapat diperkirakan, sesuai dengan kondisi yang dihadapi perusahaan. Berdasarkan inipula, kontinum juga memungkinkan untuk menempatkan setiap elemen organisasi dalam domain yang sesuai dengan karakter tatakelola perusahaan. Penelitian ini menggunakan 12 hipotesis untuk menguji hubungan antara strategi, struktur, sistem, gaya, staf, nilai yang dibagi dan keahlian dengan pencapaian karakter tatakelola perusahaan yang baik. Untuk menguji hipotesis, penelitian ini menggunakan 30 perusahaan BUMN dan Non-BUMN sebagai sampel. Hasilnya, uji empiris membuktikan bahwa BUMN dan non-BUMN memerlukan elemen  organisasi berikut untuk mewujudkan karakter tatakelola perusahaan yang baik: strategi yang direncanakan, struktur elit  (struktur pimpinan berdasarkan pada fungsi, sistem wajib (sistem yang sangat ketat dalam mengikuti tatanan dan prosedur formal yang ditetapkan, pernyataan misi yang berorientasi terhadap kinerja keuangan dan non-keuangan, iklim kerja yang etis, meta kompetensi, dan kemampuan pimpinan untuk bekerja sama. Khusus untuk kepemimpinan transformasional, posisi ini hanya dibutuhkan pada BUMN. Kata kunci - Skor Corporate Governance, Model 7-S           The good corporate governance and the 7-S Model relates to the  internal process approach.  This approach emphasized a smooth

  16. RISK DISCLOSURE ANALYSIS IN THE CORPORATE GOVERNANCE ANNUAL REPORT USING FUZZY-SET QUALITATIVE COMPARATIVE ANALYSIS

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    Pedro Carmona

    2016-05-01

    Full Text Available This paper explores the necessary and sufficient conditions of good Corporate Governance practices for high risk disclosure by firms in their Corporate Governance Annual Report. Additionally, we explore whether those recipes have changed during the financial crisis. With a sample of 271 Spanish listed companies, we applied fuzzy-set qualitative comparative analysis to a database of financial and non-financial data. We report that Board of Directors independence, size, level of activity and gender diversity, CEO duality, Audit Committee independence, being audited by the Big Four auditing firms and the presence of institutional investors are associated with high risk disclosure. The conditions included in almost every combination are the presence of institutional investors and being audited by the Big Four. We found similar combinations for 2006 and 2012, while the analysis for 2009 showed the lowest number of causal configurations.

  17. CORPORATE GOVERNANCE DAN KETAATAN PENGUNGKAPAN WAJIB PADA BADAN USAHA MILIK NEGARA

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    Abdul Kharis

    2017-03-01

    Full Text Available The purpose of this study was to examine corporate governance and mandatory disclosures compliance ofIndonesian BUMN (Badan Usaha Milik Negara. Under purposive sampling, secondary data of 48 annualreports year 2005-2010 of BUMN in Indonesian Stock Exchange were selected.The average level of mandatorydisclosures compliance was at 54.99%. This number indicated that Indonesian’s BUMN was not fullycompliance to SE Bapepam No. SE-02/PM/2002 and SE-02/BL/2008. In accordance with the purpose of thestudy, the result of multiple regression showed that corporate governance affected the level of mandatorydisclosure compliance through the variable number of board and educational background of director. Othervariables, such as board size, the composition of independent commissioner, audit committee size, the compositionof independent audit committee members and number of audit committee meetings were not good predictorsfor level of mandatory disclosure compliance.

  18. CORPORATE GOVERNANCE DAN STRUKTUR KEPEMILIKAN TERHADAP MANAJEMEN LABA DAN KINERJA KEUANGAN

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    Lusye Corvanty Kumaat

    2017-03-01

    Full Text Available The research was aimed to examine the effect of corporate governance and ownership structure on profitmanagement and financial performance. Corporate governance mechanisms that were used in this researchwere managerial ownership, independent commissioner and audit committee. Ownership structure that wasused was concentrated ownership structure. Research was conducted on the manufacturing companies thatwere listed at Indonesia Stock Exchange in period of 2007-2011. Sampling technique was purposive sampling.Hypothesis testing tool was multiple regression. Earning management in this research was measuredusing Modified Jones Models, while financial performance was measured by cash flow return on assets (CFROA.Result of research indicated that managerial ownership, independent commissioner, and ownership structurewas positively influencing profit management. Independent commissioner and ownership structure positivelyinfluenced financial performance, while managerial ownership negatively influenced financial performance.Audit committee was not influencing earning management and financial performance, and earning managementwas not proved as influencing financial performance.

  19. CORPORATE GOVERNANCE AND ACCOUNTING IRREGULARITIES: Evidence from the Two-tiered Board Structure in Indonesia

    Directory of Open Access Journals (Sweden)

    Jaswadi JASWADI

    2012-09-01

    Full Text Available This study aims to investigate the extent to which the Indonesian corporate governance mechanism acts as an effective tool for protecting financial statements users against accounting irregularities. Considering that accounting irregularities might occur in between error and the fraud act, this study reviews the literature on minimizing the seriousness of these reporting incidences. The level of seriousness in misstatements is more severe when: (1 there is absence of financial expert(s on supervisory boards and audit committees, (2 companies have short tenured-CEOs and poor internal control systems, and (3 auditors are solely appointed by firms’ BOCs without agreement of block holders (known as referral. In addition, an examination of simultaneous effects of each corporate governance dimension reveals a general weakness of the BOCs and their audit committees. However, the BOC and audit committee could be an effective tool in mitigating reporting incidences, especially when they show high-quality collaboration.

  20. Governance Assessment Corporate Financial Industries in the Core PEIEX POLI - USP - between 2012-2013

    Directory of Open Access Journals (Sweden)

    José Flávio Messias

    2015-06-01

    Full Text Available This present article is an applied research based on micro, small and medium enterprises - SMEs, assisted by Export Industrial Extension Project - PEIEX, APEX Brazil, in partnership with the Center Vanzolini - POLI / USP - SP. In this sense, we tried to identify the adoption of corporate governance practices and financial controls as a management tool in business, since some of them had been met and trained in the previous period. We use the information obtained from the questionnaires applied in PEIEX Project participating companies, as well as information obtained specifically in the visits, trying to identify the importance attached by them to financial controls and assess improvement in the level of corporate governance gathered by these companies

  1. CORPORATE GOVERNANCE DAN INTERDEPENDENSI ANTARA LEVERAGE, PROFITABILITAS SERTA KEBIJAKAN DIVIDEN DALAM MENCAPAI NILAI PERUSAHAAN

    Directory of Open Access Journals (Sweden)

    Muhamad Umar Mai

    2017-03-01

    Full Text Available This research aimed to find out and to analyze the role of corporate governance mechanism in utilizing theinterdependence among funding decisions, financial performance, and dividend policy in an attempt to increasethe value of the company. The study was conducted at the manufacturing companies listed in Indonesia StockExchange, with the observation in the period of 2000-2012. A pooled data with a total of 290 companies wereanalyzed using path analysis. This study proved that the escalation in the value of the company was mainlyinfluenced by the company’s ability to increase the profitability and dividend payments. Institutional ownershipand board size as a proxy of corporate governance mechanism played a crucial part to encourage companiesto enhance its return on equity, while the independent board persuaded the companies to amplify itsdividend payments. The Board size showed a strong role in inspiring companies to improve its profitability,and it had a positive effect on firm value.

  2. Ownership and Control Structures, Corporate Governance and Income Smoothing in Brazil

    Directory of Open Access Journals (Sweden)

    Damiana Torres

    2010-01-01

    Full Text Available This article examines the association between the ownership and control structure, level of corporate governance and origin of capital (foreign or domestic of Brazilian companies on their propensity to smooth income. Using a sample of nonancialrms with shares traded on the São Paulo Stock Exchange (Bovespa at the end of 2007, we performed covariance analysis based on data from the preceding ten years, where the dependent variable was the index proposed by Eckel, an empirical proxy for smoothing. The results indicate that the more concentrated the shareholding and control structures of Brazilianrms are, both according to overall capital and voting capital, the more intensely they tend to smooth earnings to favor the interests of the majority shareholder. The results also show that this effect is less pronounced forrms with enhanced corporate governance levels and those with foreign capital.

  3. Pengaruh Mekanisme Corporate Governance Terhadap Tingkat Kepatuhan Mandatory Disclosure Pasca Konvergensi IFRS

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    Isna Fauziah

    2016-01-01

    Full Text Available The proportion of independent commissioners and the number of audit committee meeting. Data analysis method used is descriptive analysis method and hypothesis testing. The result in this study showed the average level of mandatory disclosure compliance after convergence of IFRS in statement comprehensive income is 59.73%. The result showed that corporate governance mechanism simultaneously affect the level of compliance with mandatory disclosure after convergence of IFRS. Meanwhile corporate governance mechanism variables that affect compliance are the managerial ownership, institutional ownership and the proportion of independent commissioners. Other variable that no affect is the numbers of audit committee meeting.DOI: 10.15408/ess.v5i2.2349

  4. The Relationship Between Corporate Governance Characteristics and Credit Exposure in Banks

    DEFF Research Database (Denmark)

    Rose, Caspar

    2017-01-01

    the “Supervision Diamond” introduced by the Danish FSA, which “external” board directors must address. It contains five thresholds for measuring a bank’s exposure to credit risks i.e. the proportion of large customers, lending growth, the ratio of lending/deposits, liquidity buffer and the proportion of real...... executive director remuneration. The policy implication is that financial authorities should be increasingly aware of insufficient corporate governance characteristics in order to prevent excessive credit risk exposure. Moreover, the article provides important insights on which corporate governance...... variables have a significant impact on a bank’s credit risk exposure. This knowledge is valuable for financial authorities/policy makers considering future regulatory initiatives and how they should administer bank monitoring....

  5. Behavioral Finance in Corporate Governance-Independent Directors and Non-Executive Chairs

    OpenAIRE

    Randall Morck

    2004-01-01

    Corporate governance disasters could often be averted had directors asked their CEOs questions, demanded answers, and blown whistles. Work in social psychology by Milgram (1974) and others shows human subjects to have an innate predisposition to obey legitimate authority. This may explain directors’ eerily compliant behavior towards unrestrained CEOs. Other work reveals factors that weaken this disposition to include dissenting peers, conflicting authorities, and distant authorities. This sug...

  6. Corporate Leadership and Governance for Increasing Stakeholder Involvement and Developing Stronger Connections

    OpenAIRE

    Coulson-Thomas, Colin

    2018-01-01

    Many organisations and their supply chains are networks of relationships, but greater connectivity, additional connections and more intimate relationships can involve costs and risks as well as confer benefits, while inappropriate relationships can be harmful. Aspects of company law and regulation and contemporary corporate leadership and governance codes, priorities and practices favour some stakeholders over others and can hinder rather than help the building of relationships with a wider r...

  7. Risk Management, Corporate Governance and Investment Banking: The Role of Chief Risk Officer

    OpenAIRE

    Afanasyeva, Olga; Lapina, Yulia; Scherbina, Tetiana

    2013-01-01

    This paper focuses on the defining the role of CRO in corporate governance and to show the interrelation between the way of CRO subordination and performance of investment bank. The sample consists of observations over a period of 2011 for 29 biggest investment banks (by amount of assets) implementing world-wide investment activity. The banks are originated in the USA (8), Eastern Europe (14), China (2), Japan (2), Canada (2), and Australia (1). With the aim to evaluate and compare financial ...

  8. Corporate governance models in business performance: empirical evidence in portuguese companies listed on Euronext Lisbon

    OpenAIRE

    Pires, Amélia M.M.; Fernandes, Paula; Campos, Lira

    2016-01-01

    The last few years were marked by differences of interests in the relationships established in the organizational structure and with consequences in terms of its added value created. With this become necessary to introduce mechanisms to align interests and supervise the activities of agents, in general, and shareholders and managers, in particular. This issue intersects with the topic of models of Corporate Governance (CG) and gains relevance following the latest international financial scand...

  9. Are the corporate governance standard in banks in the CEE countries low hanging fruit?

    OpenAIRE

    Slomka-Golebiowska, Agnieszka

    2011-01-01

    The dominance of foreign capital in banking sector in the CEE countries created vulnerabilities that have been a contributing cause of recent financial crisis in the region. The question is whether the corporate governance structure of banks seemed to constrain or rather stimulate the potential unfavourable scenario, in which the controlling investors would be improving their difficult financial situation at the cost of their subsidiaries during the financial crisis of 2008. The aim of t...

  10. Ethical and compliance-competence evaluation: a key element of sound corporate governance

    OpenAIRE

    Wolfe, S.; Edwards, Jonathan M.

    2007-01-01

    Motivated by the ongoing post-Enron refocusing on corporate governance and the shift by the Financial Services Authority (FSA) in the UK to promoting compliance- competence within the financial services sector, this paper demonstrates how template analysis can be used as a tool for evaluating compliance-competence. Focusing on the ethical dimension of compliance-competence, we illustrate how this can be subjectively appraised. We propose that this evaluation technique could be utilised as a s...

  11. PENGARUH EARNINGS MANAGEMENT TERHADAP FUTURE PROFITABILITY TERKAIT DENGAN OWNERSHIP STRUCTURE, FIRM SIZE DAN CORPORATE GOVERNANCE PRACTICES

    Directory of Open Access Journals (Sweden)

    Ikhsan Yudha Asmara

    2017-11-01

    Full Text Available This study aims to determine how the effect of earnings management on future profitability business entity engaged in the manufacturing sector listed on the Indonesia Stock Exchange, and how the effects of the ownership structure, company size, and the practice of corporate governance (proxied by the audit quality, independent board member and audit committee regarding the impact of earnings management on the future profitability of manufacturing sector enterprises listed on the Stock Exchange. This study used a sample of manufacturing sector companies listed on the Indonesia Stock Exchange in the period 2008-2010. The samples used in this study were 262 observations. The sampling method used was probability sampling - judgment / purposive sampling. Independent variables used in this study are earnings management (proxied by the CFO, NDAC, and DAC, ownership structure (proxied by DFAM and INST, firmsize, and corporate governance practices (proxied by the AUDIT, BOD, and AUDCOM. The dependent variable in this study is the future profitability proxied by the variable "and CFOT earnt + 1 + 1. The results of this study were (1 earnings management proved to have a significant impact on the future profitability of manufacturing sector enterprises. The influence that appears different depending on the proxy used; (2 The ownership structure did not have an influence on the behavior of earnings management related to future profitability of manufacturing sector enterprises; (3 firmsize not affect earnings management behaviors related to future profitability of manufacturing sector enterprises; overall corporate governance practices are not effective in influencing the behavior of earnings management related to the future profitability of manufacturing sector enterprises. Keywords  :   future profitability, earnings management, ownership structure, corporate governance practice

  12. The Influence of Institutional Shareholder Activism as a Corporate Governance Monitoring Mechanism in Malaysia

    OpenAIRE

    Maizatul A. Musa

    2012-01-01

    Not many studies have been undertaken on shareholder activism in emerging economies, including Malaysia. Shareholder activism in emerging economies is on the rise. This paper seeks to comprehend the elements of this activism that are unique to Malaysia, specifically with respect to how the agency problem is controlled through shareholder activism in improving corporate governance practices within target companies. Through shareholder activism, shareholders make contact with a target company t...

  13. Non-adjudicative alternative means of dispute resolution in corporate governance

    OpenAIRE

    Moniz, Ricardo Manuel Bolota Velho e Silva

    2017-01-01

    This thesis aims at exploring the benefits regarding the adoption of nonadjudicative alternative means of dispute resolution (NAADR), mediation in specific, in corporation’s legal frameworks and contracts. This paper reviews literature, categorizes the types of corporate governance conflicts, analyses several studies and presents empirical evidence that shows the positive effects of a NAADR as an enhancing factor in increasing the value of a company. This paper starts by ack...

  14. Market concentration, corporate governance and innovation: Partial and combined effects in US-listed firms

    Directory of Open Access Journals (Sweden)

    Mehmet Ugur

    2012-10-01

    Full Text Available Existing research on the relationship between market concentration and innovation has produced conflicting findings. In addition, the emerging literature on the relationship between corporate governance and innovation tends to focus only on partial effects of corporate governance on innovation. We aim to contribute to the debate by investigating both partial and combined effects of corporate governance and market concentration on innovation. Utilising a dataset for 1,400 non-financial US-listed companies and two-way cluster-robust estimation methodology, we report several findings. First, the relationship between market concentration and innovation is non-linear. Secondly, the relationship has a U-shape in the case of input measure of innovation (research and development - R&D – expenditures; but it has an inverted-U shape when net book-value of brands and patents is used as output measure of innovation. Third, corporate governance indicators such as anti-takeover defences and insider control tend to have a negative partial effect on R&D expenditures but a positive partial effect on net book-value of brands and patents. Finally, when interacted with market concentration, anti-takeover defences and insider control act as complements to market concentration. Hence, firms with strong anti-take-over defences and under insider control tend to spend more on R&D but are less able to generate valuable brands and patents as market concentration increases. These results are based on two-way cluster-robust estimation, which takes account of both serial and cross-sectional dependence in the error terms.

  15. THE IMPACT OF CORPORATE GOVERNANCE MECHANISMS ON RISK MANAGEMENT: EVIDENCE FROM COMMERCIAL BANKS IN ETHIOPIA

    OpenAIRE

    Abate, Sewale; ZELEKE, Girma

    2014-01-01

    The risk positions of Ethiopian banks have been under tension since 2007 as per the National Bank of Ethiopia report (2009). However, existing theory on the impact of corporate governance mechanisms on bank risk-taking still remains limited and the evidence is conflicting. Most studies concentrate on US and European banks, while empirical evidence has remained scarce for Ethiopian banks. Added to that, to my knowledge, there are almost no papers on this subject for commercial banks in Ethiopi...

  16. PERLINDUNGAN PEMODAL REKSADANA MELALUI GOOD CORPORATE GOVERNMENT (STUDI KASUS BANK GLOBAL

    Directory of Open Access Journals (Sweden)

    Agam Sulaksono

    2011-05-01

    Full Text Available The capital market is a place of meeting sellers and buyers to trade securities such as stocks and bonds as a source of economic value of mutual funds. So that the value of mutual fund securities of the Investment Manager is high then the effect should be good in this case the issuer is required on an ongoing basis to spur business with the better through the application of the principles of good corporate governance.

  17. Mekanisme Corporate Governance Dan Pengungkapan Islamic Social Reporting Pada Perbankan Syariah Di Indonesia Dan Malaysia

    OpenAIRE

    Nugraheni, Peni; Yuliani, Rahma Dwi

    2017-01-01

    The high growth of the Islamic financial institution raises the qustion of the extent of their social responsibility towards the environment. Especially Islamic values attached to these institutions provide the demand to further contribute to the life of the community. This study aims at analyzing the influence of corporate governance mechanism toward Islamic Social Reporting (ISR) Disclosure in Islamic banking in Indonesia and Malaysia. These two countries have Muslim majority population an...

  18. The Role of Hong Kong’s Financial Regulations in Improving Corporate Governance Standards in China: Lessons from the Panama Papers for Hong Kong

    OpenAIRE

    Michael, Bryane; Goo, Say-Hak

    2016-01-01

    Hong Kong contributes to poor corporate governance on the Mainland. Could regulatory reform in Hong Kong help improve corporate governance standards/practices (and thus firm value) on the Mainland? In this paper, we discuss ways to incentivize Mainland firms to improve their corporate governance by adopting numerous market-value increasing reforms in Hong Kong. These include the limited extra-territorial application of corporate governance provisions, changes to the Listing Rules to ‘contract...

  19. Stakeholders approach on corporate governance and performance of Vietnamese manufacturing firms

    Directory of Open Access Journals (Sweden)

    Dao Thi Thanh Binh

    2017-06-01

    Full Text Available Corporate governance is one of the most vital issues in this compound environment at present, which is indicated by the fact that the success or failure of firms strongly depends on performance of the control that board of directors and executive board, take on corporations’ activities. This issue has attracted a variety of researches worldwide, and become a popular buzz lately, however there is still limited researches on this topic in Vietnam. In this paper, we focus on manufacturing sector, one of the most important industries in Vietnam economy, which account for 41.2% of total GDP in 2012. By using stakeholder theory and Kitamura’s paper as a corner stone, a model using OLS regression and log functional form for production function, showing the relationship between some external factors and internal factors including corporate governance is built. From the result of the research, it has been found out that internal factors (corporate governance significantly affect the firm’s performance, whereas external factors (market share do not really show any influence. In term of production function, this manufacturing sector still benefits from an increase of capital but not that of labor.

  20. Banking Sector Performance and Corporate Governance in Nigeria: A Discriminant Analytical Approach

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    Godwin Chigozie OKPARA

    2014-12-01

    Full Text Available This paper sets out to investigate the impact of corporate governance on the banking sector performance. Precisely, it examined firstly, how each variant in the corporate governance structure discriminates against the performance of the banking sector and secondly whether the executive directors and non executive directors are associated negatively and significantly with non performing loans. To accomplish these objectives, the researchers employed discriminant analysis, correlation coefficient and the spearman rank correlation as an alternate method. The results of the analysis revealed that foreign ownership contributed about 187.77 percent of the total discriminant score for the function thereby propelling foreign ownership as the most discriminant ownership variable in banks performance and also implying that a bank s chance of belonging to the group of highly performing banks increases as its foreign ownership increases. The poor performance of the board ownership is not as severe as that of the institutional ownership and government ownership which made the poor and poorer contributions respectively. The results also show that both executive directors and non-executive directors are not significantly associated with non-performing loans. On the basis of these findings, the researchers recommend that the Central Bank of Nigeria in liaison with the Nigerian Deposit and Insurance Corporation should extend intensive surveillance on the role of the directors in the banking sector.

  1. Corporate governance and proactive environmental management in Novo Hamburgo and neighbouring cities, Brazil

    Directory of Open Access Journals (Sweden)

    R Naime

    Full Text Available This study compiled data on environmental auditing and voluntary certification of environment-friendly businesses of the Commercial and Industrial Association of Novo Hamburgo, Campo Bom and Estância Velha and analysed them according to classical environmental management principles: sustainable development and corporate governance. It assessed the level of application of the concepts of corporate governance to everyday business in companies and organisations and estimated how the interconnection and vertical permeability of these concepts might help to make bureaucratic environmental management systemic, proactive and evaluative, changes that may add great value to the operations evaluated. Results showed that, when analysing only audited items not directly defined in legislation, no significant changes were identified. The inclusion of more advanced indices may promote the transition from bureaucratic management, which meets regulated environmental standards only satisfactorily, into proactive and systemic environmental management, which adds value to companies and helps to perpetuate them. Audited and analysed data did not reveal actions that depend on the internal redistribution of power and the interconnection or verticality of attitudes that may materialize concepts of corporate governance.

  2. Corporate governance and proactive environmental management in Novo Hamburgo and neighbouring cities, Brazil.

    Science.gov (United States)

    Naime, R; Spilki, F R; Nascimento, C A

    2015-05-01

    This study compiled data on environmental auditing and voluntary certification of environment-friendly businesses of the Commercial and Industrial Association of Novo Hamburgo, Campo Bom and Estância Velha and analysed them according to classical environmental management principles: sustainable development and corporate governance. It assessed the level of application of the concepts of corporate governance to everyday business in companies and organisations and estimated how the interconnection and vertical permeability of these concepts might help to make bureaucratic environmental management systemic, proactive and evaluative, changes that may add great value to the operations evaluated. Results showed that, when analysing only audited items not directly defined in legislation, no significant changes were identified. The inclusion of more advanced indices may promote the transition from bureaucratic management, which meets regulated environmental standards only satisfactorily, into proactive and systemic environmental management, which adds value to companies and helps to perpetuate them. Audited and analysed data did not reveal actions that depend on the internal redistribution of power and the interconnection or verticality of attitudes that may materialize concepts of corporate governance.

  3. CORPORATE GOVERNANCE, UKURAN PERUSAHAAN, DAN LEVERAGE TERHADAP MANAJEMEN LABA PERUSAHAAN MANUFAKTUR INDONESIA

    Directory of Open Access Journals (Sweden)

    Robert Jao

    2011-11-01

    Full Text Available The aims of the research are to find out (1 influence of corporate governance which is arecategorized into managerial ownership, institutional ownership, board size, boardcomposition of independent commissioners, and audit committees on earnings management,(2 influence of firm size on earnings management, (3 influence of leverage on earningsmanagement. This study drew 28 samples from manufacturing companies listed in IndonesiaStock Exchange with a purposive sampling technique. The research data was collected fromannual reports within a period 2006 to 2009 of the Capital Market Reference Centre ofIndonesian Stock Exchange. The method of analysis was multiple linear regressions. Theresults of the study indicated that (1 corporate governance with managerial ownership,board composition of independent commissioners, and audit committee had significantnegative influence on earnings management, while institutional ownership and board size hadsignificant positive influence on earnings management, (2 firm size had significant negativeinfluence on earnings management, (3 leverage had not significant influence on earningsmanagement. Keywords:corporate governance, firm size, leverage, earnings management, annual report

  4. THE CONSTRUCTIVE RELATIONSHIP BETWEEN ACCOUNTING AND PERFORMANCE IN THE CONTEXT OF CORPORATE GOVERNANCE AND ACCOUNTING NORMALIZATION

    Directory of Open Access Journals (Sweden)

    Mihai SAVIN

    2014-05-01

    Full Text Available Since the emergence of the concept of corporate governance, there was a close connection between this concept and accounting, which is enforced by the fact that the latter must reflect, in a conventional manner, all the economic facts that affect the economic entity, meaning the facts related to the production, distribution and consumption of wealth, but also to the creation of value for shareholders and other stakeholders, in this sense being the most reliable, efficient and effective method of economic observation. The explanations provided by the economic science according to which an economic entity is considered an individual agent who seeks to maximize profits no longer constitute a support for explaining the continental, renan or Anglo-Saxon accounting model, and as such the scientific basis of accounting must be seeked in the scientific approach of the concept of corporate governance, which has as overall objective the study of the manner to lead, to steer, to structure, to develop, to control an entity (company, public institution etc., to create value for shareholders and other interest groups. Corporate governance and also the normalization of the accounting have managed for the first time to provide a complete and consistent representation of the economic entity, meaning they defined the essential tools to manage and control the economic activity, to measure its overall performance.

  5. The Financial Performance and Corporate Governance Disclosure: A Study in the Annual Reports of Listed Companies of Bangladesh

    Directory of Open Access Journals (Sweden)

    Md. Abdur Rouf

    2012-06-01

    Full Text Available This research aims to test empirically the relationship between the Financial Performances (Profitability and the level of Corporate Governance Disclosure (CGD by the listed non-financial companies in Bangladesh. Data are taken from annual reports of the listed companies in the 2007. This paper is based on a sample of 94 listed companies and Used OLS as a method of estimation. The extent of corporate governance disclosure level is measured using 40 items of information and financial performance (profitability is measured by return on assets (ROA. Using an unweighted approach for measuringcorporate governance disclosure, this approach is most appropriate when no importance is given to any specific user-groups. After establishing the disclosure index, a scoring sheet was developed to assess the extent of corporate governance disclosures. The resultshows that the level of Corporate Governance Disclosure (CGD is positively correlated with the Financial Performances (Profitability. The study provides empirical evidence to policy makers and regulators in South Asia.

  6. On a hiding to nothing? Assessing the corporate governance of hospital and health services in New Zealand 1993-1998.

    Science.gov (United States)

    Barnett, P; Perkins, R; Powell, M

    2001-01-01

    In New Zealand the governance of public sector hospital and health services has changed significantly over the past decade. For most of the century hospitals had been funded by central government grants but run by locally elected boards. In 1989 a reforming Labour government restructured health services along managerialist lines, including changing governance structures so that some area health board members were government appointments, with the balance elected by the community. More market oriented reform under a new National government abolished this arrangement and introduced (1993) a corporate approach to the management of hospitals and related services. The hospitals were established as limited liability companies under the Companies Act. This was an explicitly corporate model and, although there was some modification of arrangements following the election of a more politically moderate centre-right coalition government in 1996, the corporate model was largely retained. Although significant changes occurred again after the election of a Labour government in 1999, the corporate governance experience in New Zealand health services is one from which lessons can, nevertheless, be learnt. This paper examines aspects of the performance and process of corporate governance arrangements for public sector health services in New Zealand, 1993-1998.

  7. Effect of Corporate Governance Structure on the Financial Performance of Johannesburg Stock Exchange (JSE-Listed Mining Firms

    Directory of Open Access Journals (Sweden)

    Isaih Dzingai

    2017-06-01

    Full Text Available There have been many corporate collapses and financial crises in recent years linked to a lack of effective corporate governance. The South African King IV Code of Corporate Governance recommends that corporate governing bodies should be comprised of an appropriate balance of knowledge, diversity, and independence for discharging their duties objectively and more efficiently. This study examines the effect of corporate governance structures on firm financial performance. The secondary data of selected Johannesburg Stock Exchange (JSE, Socially Responsible Investment (SRI Index-listed mining firms’ sustainability reports, and integrated annual financial statements are used. Using panel data analysis of the random effects model, we determined the relationship between board independence and board size and the return on equity (ROE for the period 2010–2015. Results indicate a weak negative correlation between ROE and board size, and a weak, but positive, correlation between ROE and board independence. Additionally, there is a positive, but weak, correlation between ROE and sales growth, but a negative and weak relationship between ROE and firm size. The study suggests that effective corporate governance through a small effective board and monitoring by an independent board result in increased firm financial performance. We recommend that South African companies see compliance with the recommendations of the King IV Code on Corporate Governance not as a liability, but an ethical investment that may likely yield financial benefit in the long-term. Although complying with corporate governance principles does not necessarily translate into a significant economic benefit, firms should, however, continue to adopt corporate governance for ethical reasons to meet stakeholder’s social and environmental needs for sustainable development.

  8. Corporate Governance Efficiency. Can Objectivism and / or Antifragilism Provide a Solution?

    Directory of Open Access Journals (Sweden)

    Costin DĂMĂȘARU

    2015-03-01

    Full Text Available In recent years the term “corporate governance” has been a hot topic in the Romanian business environment due to the fact that Romanian authorities have tried to make a change in the way state owned enterprises (SOE’s are being run, hiring corporate experienced managers to replace the politically imposed managers. Corporate governance refers to the set of systems, principles and processes by which a company is governed (Thompson, 2009. It can offer a solution to the inefficiency of the public administration or so it is believed, because there are many variables and particularities in the Romanian economy that are not found in a multinational corporation. The need to duplicate the efficiency of the way in which corporations are being run has been translated by Romanian authorities in a national program with the main objective of bringing professionals in the decision making process.In this article we investigate the influence that two related philosophical and economic movements, as controversial as objectivism and highly regarded as antifragilism, set apart by half a century, can have on changing Romanian business environment. In the Romanian economic infrastructure, “crafted” by various groups of interest, most of them politically backed, we find burdening regulations and corruption creating a very interesting and corrosive mix. So, it would not be unusual to consider the fact that in this environment, the general opinion is that the only “entrepreneurs” who can and will succeed are the ones who have found ways in which to benefit from a privileged relationship with the all mighty State.

  9. OWNERSHIP CONCENTRATION AND CORPORATE GOVERNANCE DISCLOSURE – THE CASE OF FINANCIAL INSTITUTIONS

    Directory of Open Access Journals (Sweden)

    Stefanescu Cristina Alexandrina

    2012-07-01

    Full Text Available Disclosure and the quality of corporate governance system are more often appreciated as closely related concepts - the higher the level of transparency, the better the quality corporate governance practices. As regards disclosure, if in a widely held company (ownership dispersion its role is to signal that the managers are acting in the best interests of the principals, in a highly concentrated company (ownership concentration, it comes to annihilate the conflicts of interest between “insiders” (controlling shareholders and managers and outside investors. Basing on this background, we focused on corporate governance disclosure, analyzing possible influences over it coming from corporate governance dimensions. Therefore, the objective of our paper is to identify possible associations between corporate governance features and the level of disclosure through annual reports in case of banking institutions listed at London Stock Exchange focusing on ownership concentration. Most empirical studies that have tested the correlation between ownership concentration and the level of disclosure reached to a negative relationship (Barako et al., 2006; Tsamenyi, et al., 2007; Haniffa and Cooke, 2002; Huafang and Jianguo, 2007; Patelli and Prencipe, 2007; Chau and Gray, 2002; Cooke, 1989. However, there are also studies that could not find any association (Arcay and Vazquez, 2005; Ghazali and Weetman, 2006; Holm and Scholer, 2010; Parsa, et al., 2007; Baek, et al., 2009; Makhija and Patton, 2004; Depoers, 2000. Basing both on assertions supported by the agency theory that companies with concentrated ownership do not have to rely on external disclosures to the same extent as companies with dispersed ownership, as well as on most prior empirical findings that provide evidence in this respect, we proposed the following hypothesis: “(H: There is a negative association between ownership concentration and the extent of disclosure”. The

  10. EL BUEN GOBIERNO CORPORATIVO EN LAS SOCIEDADES COOPERATIVAS/GOOD CORPORATE GOVERNANCE IN COOPERATIVE ENTERPRISE

    Directory of Open Access Journals (Sweden)

    Raquel PUENTES POYATOS

    2009-05-01

    Full Text Available Este artículo trata de mostrar cómo el buen gobierno de las sociedades se ha de dirigir hacia un modelo de gobierno corporativo stakeholders, donde las sociedades cooperativas pueden servir de referencia en la medida que este modelo de gobierno corporativo es intrínseco a su razón de ser. Pondremos de manifiesto, cómo los Códigos de buen gobierno publicados hasta el momento en España no se ajustan a este enfoque stakeholders y no son de aplicación plena a sociedades no mercantiles, como las sociedades cooperativas./This article aims to show how the governance of societies has been directed toward a model of corporate governance stakeholders, where cooperative societies can serve as a reference to the extent that this model of corporate governance is intrinsic to its purpose. I will be shown how the codes of good governance published so far in Spain are not in line with this approach and stakeholders are not fully applied to non-market societies, such as cooperative societies.

  11. Corporate Governance: The Impact on the Role, Position, and Scope of Services of the Internal Audit Function

    NARCIS (Netherlands)

    L. Paape

    2007-01-01

    textabstractCorporate scandals during the last decade fostered many Corporate Governance reports. These reports aimed at restoring checks and balances in companies to prevent fraudulent behaviour and restore public trust. One of the functions active in many organizations is Internal Audit. This

  12. Corporate Governance at the Nacional Telecommunications Agency (ANATEL as a mechanism to improve the Agency’s Management

    Directory of Open Access Journals (Sweden)

    Fábio de Paula e Souza

    2016-04-01

    Full Text Available In the current scenario facing the country's government crisis of confidence, transparency and relationship with society, corporate governance is an important tool to monitor and improve the management, governance and corporate social responsibility in public organizations. The application of this mechanism in the National Telecommunications Agency (ANATEL has great impact to the economy and technological development of the country, capturing investments in the telecommunications sector, generating confidence to investors and stimulating competition between companies, which can offer products with best quality and services at affordable prices for consumers in Brazil. This paper investigates and analyzes by the theory of regulation, guides and reports, corporate governance as a mechanism to improve the management in ANATEL, using references, legislation and other documents in order to examine the transparency, fairness, accountability (providing accounts and corporate social responsibility in the Agency.

  13. Mapping the growth and direction of corporate governance research: A broad overview of literature between 1930 and 2014

    Directory of Open Access Journals (Sweden)

    Malla Praveen Bhasa

    2015-03-01

    Full Text Available In the past two decades, corporate governance (CG literature has grown in leaps and bounds. The quick succession with which some corporate scandals surfaced in the early 2000s and their extensive media coverage have prodded the social science researchers to go back to their story boards and examine the reasons for such scandals. Interestingly, corporate behaviour was no more the exclusive preserve of micro-economists and finance researchers. Instead, researchers from different disciplines like philosophy, psychology, sociology and law too joined in examining issues related to what is today popularly known as corporate governance. Each scholar tested hypothesis and offered explanations in a language native to her own discipline. Given the pervasiveness of the social sciences, very soon corporate governance begun to be explained and understood in an increasingly multi-disciplinary perspective. Each discipline brought in its own unique flavour in picking and explaining the nuances of corporate governance. With so many disciplines contributing to a single overarching theme, it is no surprise that today there is a surfeit of corporate governance literature and more continues to get added every single day. This paper reviews the growth and development of CG literature over the past eight decades. In doing so, it studies 1789 published research papers to track how literature organized itself to build the CG discourse.

  14. Effects Of Governance On Corporate Ethics: A Cross-Country Investigation

    Directory of Open Access Journals (Sweden)

    Cristina Boța-Avram

    2013-12-01

    Full Text Available This research paper empirically investigates the extent to which the quality of governance measured through six dimensions developed by World Bank has a positive influence on the corporate ethics, or in other words, the ethical behaviour of firms in their interaction with public officials, politicians and other companies. By using a dual approach, from geographical and income group classification, this study analyses data from official reports issued by World Bank and World Economic Forum for a final sample of 140 countries, trying to highlight the positive relationship that might exist between governance clusters and ethical behaviour of firms. For the purpose of the paper, a multiple regression analysis was performed. The research results confirm that there are strong positive correlations between most of the governance indicators and companies’ ethical behaviour, even if there are some differences between various geographical areas, and also between different income categories economies, in terms of the intensity of this influence.

  15. 40 CFR 280.104 - Local government bond rating test.

    Science.gov (United States)

    2010-07-01

    ... 40 Protection of Environment 26 2010-07-01 2010-07-01 false Local government bond rating test. 280... STORAGE TANKS (UST) Financial Responsibility § 280.104 Local government bond rating test. (a) A general... million or more, excluding refunded obligations, with a Moody's rating of Aaa, Aa, A, or Baa, or a...

  16. Behavioral Finance in Corporate Governance - Independent Directors, Non-Executive Chairs, and the Importance of the Devil's Advocate

    OpenAIRE

    Randall Morck

    2004-01-01

    The Common Law, parliamentary democracy, and academia all institutionalize dissent to check undue obedience to authority; and corporate governance reformers advocate the same in boardrooms. Many corporate governance disasters could often be averted if directors asked hard questions, demanded clear answers, and blew whistles. Work by Milgram suggests humans have an innate predisposition to obey authority. This excessive subservience of agent to principal, here dubbed a "type II agency problem"...

  17. PENGARUH CORPORATE GOVERNANCE TERHADAP KINERJA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BURSA EFEK INDONESIA

    Directory of Open Access Journals (Sweden)

    Susy Muchtar

    2016-08-01

    board committees positive effect on the firm performance, board meetings had no influence on the performance of the company, board size has a positive effect on the firm performance, executive directors do not have an influence on the company’s performance as measured by return on assets (ROA and return on equity (ROE, independent non-executive directors have a negative effect on corporate performance as measured by return on assets (ROA, but does not affect the company’s performance as measured by return on equity (ROE. Keywords: Corporate governance, firm performance, board structure, board committee, board meeting, board size, executive directors, independent non executive directors, return on asset, return on equity.

  18. Construction of the economic indicators of performance in relation to environmental, social and corporate governance (ESG factors

    Directory of Open Access Journals (Sweden)

    Alena Kocmanová

    2012-01-01

    Full Text Available The article is focused on economic performance in relation to environmental, social and corporate governance indicators. Indicators are increasingly used by investors to understand the processes in company, focusing on the key factors. Many international institutions engaged in the development of environmental, social and corporate governance indicators and they are in accordance with financial institutions trying to find a common language in defining the environmental, social and corporate governance indicators affecting their common objectives to achieve sustainable, long-term growth and prosperity. The aim of the article is searching for the way of measuring economic performance of the company in relation to environmental, social and corporate governance indicators. On the basis of analysis of the environmental, social and corporate governance performance indicators of international organizations has been carried out empirical research of economic indicators for the companies in the manufacturing sector. The expected result of the research is the design of the economic indicators of performance in relation to environmental, social and corporate governance indicators. These proposed economic performance indicators should enable companies to measure the economic performance and added value towards sustainability.

  19. The Financial Performance (Profitability and Corporate Governance Disclosure in the Annual Reports of Listed Companies of Bangladesh

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    Abdur Rouf

    2011-12-01

    Full Text Available This research aims to test empirically the relationship between the Financial Performances (Profitability and the level of Corporate Governance Disclosure (CGD by the listed non-financial companies in Bangladesh. Data are taken from annual reports of the listed companies in the 2007. This paper is based on a sample of 94 listed companies and Used OLS as a method of estimation. The extent of corporate governance disclosure level is measured using 40 items of information and financial performance (profitability is measured by return on assets (ROA. Using an unweighted approach for measuring corporate governance disclosure, this approach is most appropriate when no importance is given to any specific user-groups. After establishing the disclosure index, a scoring sheet was developed to assess the extent of corporate governance disclosures. The result shows that the Financial Performances (Profitability and Board Audit Committee are positively correlated with the level of Corporate Governance Disclosure (CGD. Percentage of Equity Owned by the Insiders is negatively associated with the Corporate Governance Disclosure. The study provides empirical evidence to policy makers and regulators in South Asia.

  20. EAST ASIAN CORPORATE GOVERNANCE: A TEST OF THE RELATION BETWEEN CAPITAL STRUCTURE AND FIRM PERFORMANCE

    Directory of Open Access Journals (Sweden)

    Ari Warokka

    2011-07-01

    Full Text Available Corporate governance theory predicts that leverage affects agency costs and thereby influences firm performance. Agency costs represent important problems in corporate governance in both financial and non-financial industries. Prior evidences have demonstrated an association between ownership structures, capital structure, and firm performance. This study extends the literature by proposing a further link between capital structure and firm performance in term of post Asian Financial Crisis that is rarely investigated. Using an agency framework, the research argues that the distribution of equity ownership among corporate managers and external block holders has a significant relationship with leverage and firm performance, and there is reverse causality effect between ownership structure, capital structure, and firm performance. The paper tests two hypotheses that explore various aspects of this relationship. This study uses 532 East Asian companies, which are located in INTERNATIONAL JOURNAL OF ECONOMICS AND FINANCE STUDIES Vol 3, No 2, 2011 ISSN: 1309-8055 (Online 2 seven most affected countries when the crisis took place during period 1996-1997. The time frame of analysis is 2000-2001 period that is believed as a start of recovery period. Statistic methods used for testing the hypothesis are t-test and multivariate regression model. The empirical results indicate that the East Asian companies after the crisis apply the efficiency-risk argument. In analyzing the reverse causation of capital structure and corporate performance relation, the result confirms the incentive signaling approach, which debt can be used to signal the fact that firm has prospect and equity issues may be interpreted as a negative signal.