Citation

Manna, A., Sahu, T.N. and Gupta, A. (2019), "Index", Governance-Led Corporate Performance: Theory and Practice, Emerald Publishing Limited, Leeds, pp. 103-107. https://doi.org/10.1108/978-1-78973-847-620191009

Publisher

:

Emerald Publishing Limited

Copyright © 2019 Emerald Publishing Limited

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INDEX

Index

Note: Page numbers followed by “n” with numbers indicate notes.

Accounting-based measures, 48, 56

Affiliate director, 5

Agency perspective, 48–49

Agency problem, 4, 7, 10, 31, 38, 48, 85

Agency theorists, 4

Agency theory, 6–7, 40–41

American Family Business Surveys, 38

Anglo-American model, 16–17

Anglo-Saxon’ approaches. (see Anglo-American model)

Appointment and Qualifications of Directors, 27

Assets turnover ratio (ATR), 60–61, 66, 71, 87

Audit committee, 19–23, 26–27, 30–31, 34, 38, 45, 47

Autocorrelation

problem, 67

test for, 63–64, 82

Wooldridge test of, 64

Bi-variate correlation analysis, 71–72

Bi-variate data analysis, 62, 89–90

Blockholders, 4

Board committees, 46

Board composition, 5, 11, 33, 35–38, 45, 48, 50–52, 56, 58, 60, 89, 91, 93

corporate, 91

variables, 52, 66, 90

Board of Directors, 1, 3, 5–7, 16, 20, 27, 38, 40–41

Board size (BS), 5–6, 35, 37, 39, 42, 45–46, 48, 59, 70, 91

and corporate performance, 84–85

effects of supervisory, 41

firm value and, 34

impact, 43

Board variables, 66

Bombay Stock Exchange (BSE), 39, 55

Breusch-Pagan Lagrange multiplier test, 76

Breusch-Pagan/Cook-Weisberg test (Hettest), 63, 67, 74

British managing agent, 14–15

Business house model, 15–16

Buy-back norms, liberalisation of, 26

Cadbury Committee, 14, 18

Capital

markets, 17

structure, 33

‘Capitaline Plus’, 55

Cash earnings per share (CEPS), 56, 71, 90

CEO duality (CEO_DUA), 60

CEO tenure (CEO_TEN), 60, 71

Chief executive officer (CEO), 17, 34, 58, 86, 89, 91

characteristics, 3, 6

Clearing members, 4

‘Code of Best Practice’, 14

Committees, 30–31

Communication, 34

Companies (Amendment) Act (2000), 25–26

Companies (Amendment) Act (2001), 26

Companies (Amendment) Bill (2003), 26–27

Companies (Amendment) Bill (2008), 27

Companies Act (1956), 17, 25

amendments to, 25–30

Companies Act (2013), 28–29, 93

Compensation committees, 38

Confederation of Indian Industry (CII), 14, 17–18

Code, 19–20

Constant coefficient method, 64–65

Control variables, 44–46, 60, 66, 71

assets turnover ratio, 61

and corporate performance, 86–87

debt equity ratio, 61

ER, 60

firm size, 60–61

growth in profit after tax, 61

Corporate board, 31, 33

Corporate bodies, 4

Corporate financial performance, 43

Corporate frauds, 3

Corporate Governance, 1, 33, 69, 89–90, 92–93. (see also Good governance)

Codes, 3

and dimensions, 2–3

international approach, 34–48

mechanism, 50

mechanisms, 3–6

models, 14–17

national approach, 48–51

objectives of study, 52

research gap, 51–52

research hypotheses, 53

theories, 6–10

UTI scam, 2

variables, 48

Corporate management, 3

Corporate ownership, 44

effect, 40

and firm performance, 44

foreign and domestic, 39

Corporate performance, 33, 48, 69, 82

BS and, 84–85

control variables and, 86–87

Corporate value, 4, 43, 49

Corporation, 2–3, 8, 18, 33

Correlation, 44

analysis, 71

coefficient, 62–63, 72, 89

matrix, 63, 72, 89

Data, 55

sample selection procedure, 55–56

selection of variables, 56–61

source, 55

study period, 56

Debt–equity ratio (D/E ratio), 61, 71

Decision-making process, 34, 44, 49

Department of Company Affairs (DCA), 17

Dependent variables, 44, 56. (see also Independent variables)

CEPS, 56

MVA, 58

ROCE, 57

TQ, 57–58

Descriptive statistics, 49–50, 62, 67, 69–71

‘Desirable Corporate Governance Code’, 19

Deutsche Borse Group, 45

Diffuse ownership structure, 40–41

Directors, 30

Dominant shareholder, 49

Dr J. J. Irani Committee Report on Company Law, 24–25

Duties of directors, 5

Economic liberalisation programme, 16

Empirical analysis, 50

Employee(s), 4, 9, 30–31, 35, 41

ownership, 36

Error component model, 65–66

Executive directors (ED), 59, 70–71. (see also Independent directors (IDs))

and firm performance, 85

proportion, 59

Executive remuneration (ER), 60, 71

F-statistic of pooled regression model, 76

Financial performance, 49

board structure and corporate, 43

of Dutch companies, 45

firms, 46, 50

indicators, 34

Financial theory, 4

Firm performance, 35, 44, 46, 82–84

EDs and, 85

IDs and, 85–86

IINV and, 84

MD and, 86

Firm size, 36–37, 44–46, 60–61. (see also Board size (BS))

Firm-specific knowledge, 40

Fixed effect model (FEM), 62, 65, 74, 76, 78, 80

Foreign collaborators, 4

Foreign investors, 35

Foreign ownership, 36, 47

Foreign trade, area of, 17

Fraud firms, 34

Garman Corporate Governance model, 18

Ghana Stock Exchange, 38–39

Good governance

checks and balances for, 6

corporate misgovernace to, 32

indicators, 30–31

Government, 9–10, 31

departments, 24

financial institution, 49

ownership, 39, 93

proportion of government shareholding, 42

shareholdings, 39

Grey director. (see Affiliate director)

Growth in profit after tax, 61

Hausman test, 66, 78, 80

null hypothesis, 76, 78

statistic, 78

HDAX index, 45

Heteroskedasticity

detection, 72–74

test for, 63

Independent directors (IDs), 4, 18, 59, 70. (see also Executive directors (ED))

and firm performance, 85–86

proportion, 59

Independent variables, 44, 58

CEO_DUA, 60

CEO_TEN, 60

IINV shareholding, 59

MD, 59–60

proportion of ED, 59

proportion of IDs, 59

PS, 58

India, Corporate Governance in, 13

codes, 18–25

features of, 17–18

good governance indicators, 30–31

historical models and development impact in, 14–17

and legislations, 25–30

Indian Companies Act (1850), 14

Indian financial system, 13, 56

Indian public, 4

Indonesian Stock Exchange, 48

Industrial policy, 17

Information asymmetry, 9

Information Matrix test (Imtest), 63, 74

Inside directors, 5, 35–36, 40

Institutional investors (IINV), 4, 18, 38, 49, 69–70

and firm performance, 84

foreign, 4

ownership, 84

shareholding, 59, 90

Institutional ownership, 38, 44, 46

Intellectual capital, 43

International approach, 34

agency theory, 40–41

BSE, 39

foreign investors and employees, 35

foreign ownership, 47

Indonesian Stock Exchange, 48

institutional investors, 38

Karachi Stock Exchange, 44

MBVR, 42

ownership structure, 34

regression analysis, 45–46

resource dependency theory, 40–41

ROE, 37

small shareholders, 36

Stock Exchange of Ghana, 46

TSE, 43

Johannesburg Stock Exchange, 47–48

Karachi Stock Exchange, 44

Kumar Mangalam Birla Committee, 19–21

Labour productivity, 35–36

Least square dummy variable regression model, 65

Legal person (LP), 46

Liberalisation

of banking sector, 17

of buy-back norms, 26

Linear regression model, 44, 52, 62. (see also Multiple regression models)

Managerial hegemony theory, 9–10

Managerial ownership, 34, 46

Managing agency model, 14–15

Market to book value ratio (MBVR), 42

Market value added (MVA), 56, 58, 71

Market-based measures, 48

Market-based performance measure variables, 48–49

Meetings, 31

Microsoft Office Excel 2010 package, 55

Milan Stock Exchange, 40

Modern corporations, 7

Multi-variate analyses, 69, 89

Multicollinearity, 69

property detection, 63, 72

test for, 62–63

Multiple regression models, 66, 74

dependent variable–CEPS, 77

dependent variable–MVA, 81

dependent variable–ROCE, 75

dependent variable–TQ, 79

selection of appropriate model of regression analysis, 76, 78, 80, 82

Multiplicity of directorship (MD), 41, 53, 59–60, 70–71

and firm performance, 86

mean value of, 70

Multivariate regression analysis, 90

Narayana Murthy Committee Report on Corporate Governance, 22–24

Naresh Chandra Committee on Corporate Audit and Governance, 21–22

National approach, 48–51

Negative information, 9

Nominee director, 16, 21, 24, 59

Non-affiliate director, 5

Non-executive director. (see Outside director)

‘Non-executive independent’ director. (see Non-affiliate director)

Non-financial rewards, 8

Non-promoter

executive directors and relatives, 4

non-institutional shareholder, 51

Normative analysis, 2

NRI, 4

Number of Directorships, 27

One person company (OPC), 28

Ordinary least square method (OLS method), 39, 62, 76

Outside director, 5

Over-the-counter firms, 42

Ownership concentration, 47, 51

effect, 44

of firm, 38

in Greece, 42

impacts, 36, 46

institutional, 44

and ownership, 41

Ownership structure, 4, 10, 33–34, 66, 82

for corporations, 33

variables, 69, 90, 93

Panel data model, 64, 74–82

advantages, 64

constant coefficient method, 64–65

FEM, 65

pooled OLS method, 64–65

REM, 65–66

techniques, 64

Parliamentary Standing Committee on Finance, 28

Performance. (see also Corporate performance)

of business units, 34

measure variables, 56

variables, 66

Political theory, 10

Pooled OLS method, 64–65

Pooled regression model, 74

Positive analysis, 2

Positive information, 9

Post-crisis period, 47

Principal policy-making agency, 5

Private corporate bodies, 4

Profit after tax (PAT), 61, 71

growth in, 61

Promoters, 4

Promoters’ shareholding (PS), 58, 69–70, 82–84, 90

Random effect model (REM), 62, 65–66, 74, 76, 78, 80

Receivers, 9

Regression analysis, 39, 43, 45–46, 78

Representing firm performance (ROE), 40

Research methodology, 61

scheme of investigation, 67

statistical methods, 61–66

Resignation of Director, 27

Resource dependence theory, 8, 11, 40–41, 91

Return on capital employed (ROCE), 56–57, 71, 90

Return on equity (ROE), 37

Return on investments, 37

Returns on assets (ROA), 37

Risk-taking behaviours, 38

Securities and Exchange Board of India (SEBI), 14, 29–30

Securities and Exchange Board of India Act (1992), 29

Security and Exchange Commission, 14

Share of foreign institutional ownership, 4

Share of promoter ownership, 4

Shareholders, 4, 44

Shareholding patterns, 11, 13–14, 92–93

Signallers, 9

Signalling theory, 9

Stakeholder theory, 9

STATA-16 package, 55

Statistical methods, 61

bi-variate data analysis, 62

descriptive statistics, 62

panel data model, 64–66

test for autocorrelation, 63–64

test for heteroskedasticity, 63

test for multicollinearity, 62–63

Stewardship theory, 6–8, 11

Stock Exchange of Ghana, 46

Stock pledge ratio, 42

Stockholder-directors, 34

Strategic analysis, 2

Taiwan Stock Exchange (TSE), 43

Task force of CII Codes of Corporate Governance, 19

Tehran Stock Exchange, 44

Tobin’s Q (TQ), 37–39, 48, 56–58, 71, 79, 90

U-shaped non-linear relationship, 39

Unitary board model, 17

UTI scam, 2

Variables, 69

control, 86–87

correlation matrix and VIF values of independent and control, 73

descriptive statistics of dependent, independent and control, 70

selection, 56–61

Variance inflation factor (VIF), 61, 63, 72–73, 89

Woman Director, 28

Wooldridge test, 82