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1 – 10 of over 1000Ahmed A. Sarhan and Collins G. Ntim
This paper aims to investigate the level of compliance with, and disclosure of, corporate governance best practice recommendations and the firm- and country-level factors that can…
Abstract
Purpose
This paper aims to investigate the level of compliance with, and disclosure of, corporate governance best practice recommendations and the firm- and country-level factors that can explain discernible differences in the level of compliance with, and disclosure of, corporate governance best practice recommendations in a number of Middle Eastern and North African (MENA) countries.
Design/methodology/approach
The authors use the widely used content analysis technique to examine the level of compliance with, and disclosure of, corporate governance best practice recommendations in a sample of listed corporations in MENA countries. In addition, the authors use the ordinary least square multiple regression analysis technique to examine the firm- and country-level antecedents of the level of compliance with, and disclosure of, corporate governance best practice recommendations. The findings are generally robust to different types of firm- and country-level factors, alternative measures and potential endogeneity problems.
Findings
The findings of this study are two-fold. First, the level of voluntary compliance with, and disclosure of, corporate governance best practice recommendations among MENA listed corporations is low and differs substantially across firms. Second, the evidence suggests that firm- and country-level factors, including religiosity, national governance quality and macroeconomic factors, have a positive and significant impact on voluntary compliance with, and disclosure of, corporate governance best practice recommendations.
Originality/value
To the best of the authors’ knowledge, this paper is the first to examine both the potential firm- and country-level factors affecting voluntary compliance with, and disclosure of, corporate governance best practice recommendations among MENA listed corporations from a neo-institutional theoretical perspective. The results of our study provide regulators and policymakers with the impetus to encourage greater efforts towards pursuing reforms that seek to improve national governance quality, economic environment and positive religious practices.
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Pitabas Mohanty and Supriti Mishra
This paper aims to study the corporate governance practices followed by the listed companies in India to find out if industry and business group affiliation of firms influence…
Abstract
Purpose
This paper aims to study the corporate governance practices followed by the listed companies in India to find out if industry and business group affiliation of firms influence their corporate governance practices.
Design/methodology/approach
The authors have created a corporate governance index for India using 15 of the variables used in past research. Hierarchical regression has been used in the study to control for possible inter-firm correlation in governance scores.
Findings
Using principal component analysis, the authors derive five factors for the corporate governance index – board composition, shareholder responsibility, ownership, responsible board behavior and fair executive compensation. Using the random intercept mixed-effects model, the authors find that corporate governance behaviors of firms affiliated to business groups are more similar within business groups than within industries.
Practical implications
Regulatory authorities generally target individual firms to enforce good corporate governance practices. As companies affiliated with the same business group exhibit similar governance practices, regulators can also set norms for business groups in addition to individual firms.
Originality/value
Scant research has studied the corporate governance behavior of firms affiliated with business groups. By making business groups (and industries) the unit of analysis, the authors have studied the corporate governance behavior of firms as a cluster in the context of an emerging country, India.
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Nurlan Orazalin, Monowar Mahmood and Keun Jung Lee
The purpose of this paper is to investigate the impact of different dimensions of corporate governance practices such as board characteristics, ownership structure, corporate…
Abstract
Purpose
The purpose of this paper is to investigate the impact of different dimensions of corporate governance practices such as board characteristics, ownership structure, corporate disclosure and CEO education on the operating performance of Russian banks before, during and after financial crises. Based on the findings, it proposes some policy measures for improved governance practices to protect banks from future financial crisis or economic downturns.
Design/methodology/approach
The study comprises data from the largest publicly traded Russian banks listed on the Russian Stock Exchange RST for the period. Operating performance data were collected from financial statements, while corporate governance mechanisms were collected from annual reports available on the banks’ websites. Because panel data were used, the panel regression model was used to control unobserved time-constant heterogeneity.
Findings
The findings revealed a positive impact of corporate governance on bank performance before and after the financial crisis. The financial crisis enforced Russian banks to improve their corporate governance practices, resulting in better operating performance after the crisis. Surprisingly, the results for the during-crisis period show that better governance did not yield higher operating performance in Russian banks.
Originality/value
This is one of the first studies to provide empirical results regarding the relationship between corporate governance practices and bank performance in Russia across different financial crisis periods. The findings revealed the uniqueness of corporate governance scenarios of Russia which could provide important guidelines for other transition economies and emerging markets.
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Tamer Mohamed Shahwan and Mohamed Mahmoud Fathalla
This paper aims to investigate the impact of intellectual capital (IC) as a mediator variable on the association between corporate governance (CG) practices and firm performance…
Abstract
Purpose
This paper aims to investigate the impact of intellectual capital (IC) as a mediator variable on the association between corporate governance (CG) practices and firm performance. This study also examines bi-causality linkages between these variables.
Design/methodology/approach
The designated corporate governance index and the value-added intellectual coefficient method were used to assess the level of CG practices and the performance of IC. Tobin’s Q (TQ) and operating efficiency ratio were used to measure firm performance.
Findings
The aggregate CG score has a significant positive impact on the IC and the two measures of firm performance. However, the IC has only a partial mediation effect on the relationship between the aggregate corporate governance score and a firm’s operational efficiency ratio. The IC has partial and full mediation effects in the relationship between the sub-dimensions of corporate governance and the performance of Egyptian corporates. Moreover, a bi-causality relationship can be observed between CG and TQ.
Research limitations/implications
Generalizing the obtained results would require the sample size to be extended.
Practical implications
The findings should alert legislative institutions and practitioners of the need to comply with good CG practices and develop the efficiency of IC to elicit a firm’s superior performance.
Originality/value
This study is one of the first attempts to investigate the causality relationships and the mediation impact of IC on the relationship between CG practices and corporate performance in the Egyptian context.
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Kachouri Maali, Riguen Rakia and Mouakhar Khaireddine
The purpose of this paper is to investigate the direct and indirect links between corporate governance and sustainability performance using corporate social responsibility.
Abstract
Purpose
The purpose of this paper is to investigate the direct and indirect links between corporate governance and sustainability performance using corporate social responsibility.
Design/methodology/approach
The study is based on a sample consisting of 300 UK firms over the 2005–2017 period. This study applied structural equations models that specify both a direct and an indirect link between corporate governance and sustainability performance.
Findings
The authors find that corporate governance has a positive effect on sustainability performance. In addition, this study shows that corporate social responsibility fully mediates the relationship between corporate governance and sustainability performance in UK firms.
Practical implications
This study shows that firms are invited to engage more in sustainability performance and corporate social responsibility activities, which reduces agency conflicts between managers and shareholders.
Originality/value
To the authors’ knowledge, no research studies examined empirically the direct and indirect relationship between corporate governance and sustainability performance. Therefore, the main contribution of this research is to show how corporate governance effectiveness leads to higher corporate social responsibility level and sustainability performance using two analyses methods (mediator analysis and multiple mediator analysis).
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Kathryn M. Zuckweiler, Kirsten M. Rosacker and Suzanne K. Hayes
This paper aims to develop a better understanding of business students' perceptions of the relative importance of corporate governance best practices within the context of major…
Abstract
Purpose
This paper aims to develop a better understanding of business students' perceptions of the relative importance of corporate governance best practices within the context of major area of study and compare student rankings of corporate governance best practices to those of working professionals.
Design/methodology/approach
Using a previously published survey, data were collected from business students at two Midwestern US universities and analyzed using factor analysis.
Findings
This research demonstrated that students rank strategic human resource management as the most important corporate governance practice, matching the perceptions of professionals. Accounting majors report significantly greater understanding of corporate governance, the importance of corporate governance to business and the role of understanding corporate governance in their careers as compared to management majors.
Research limitations/implications
This study is limited by the inclusion of business students at only two US universities. Further studies should be conducted to better understand the similarities and differences between students and professionals and accounting and management majors in their perceptions of corporate governance best practices.
Practical implications
Managers can use these findings to enhance the training recent college graduates receive on corporate governance topics. Business schools can use these findings to evaluate ways to embed corporate governance throughout the curriculum.
Originality/Value
This research highlights gaps in current business school curriculum coverage of corporate governance best practices. It compares and contrasts students' and professionals' perceptions of best practices and offers suggestions for managers and educators.
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Rashid Zaman, Muhammad Nadeem and Mariela Carvajal
This paper aims to provide exploratory evidence on corporate governance (CG) and corporate social responsibility (CSR) interfaces. Although there remains a voluminous literature…
Abstract
Purpose
This paper aims to provide exploratory evidence on corporate governance (CG) and corporate social responsibility (CSR) interfaces. Although there remains a voluminous literature on CG and CSR, very little effort has been put forward to explore the nature of this relationship.
Design/methodology/approach
Using interviews with Senior Executives of New Zealand Stock Exchange listed firms, this research assesses CG and CSR practices, identifies barriers for CG and CSR adoption and investigates the nature of the relationship between CG and CSR.
Findings
The results indicate a moderate level of CG and CSR practices, with a lack of resources and cost-time balance as common barriers for CG and CSR adoption. However, despite these barriers, we note that the majority of executives appreciate the increasing convergence between CG and CSR, and believe that a more robust CG framework will lead to more sustainable CSR practices.
Originality/value
These findings have important implications for managers and policymakers interested in understanding the CG-CSR nexus and promoting responsible business practices.
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This paper aims to study from three perspectives: the developed countries corporate governance (CG) practices, the role of OECD in the global convergence of CG standards and India…
Abstract
Purpose
This paper aims to study from three perspectives: the developed countries corporate governance (CG) practices, the role of OECD in the global convergence of CG standards and India as an emerging country.
Design/methodology/approach
The paper reviews the various CG codes and regulations enacted in the Indian paradigm with special reference to the Indian Companies Act 2013 (cited as Act 2013).
Findings
The Act 2013 endeavours to provide a governance landscape in India with reforms. The new CG codes comprehensively introduce more accountability, transparency and stringent disclosure requirements. However, these changes are affected by the ownership structure, the level of enforcement and regulatory compliance of CG disclosure practices imposed on companies.
Research limitations/implications
Further research can be carried out in three domains in emerging countries: ownership structure, the effect of legal and regulatory environment and impact of mandatory compliance.
Practical implications
Legal and regulatory environment are notable extent that can effectively govern the CG codes. An increase in the board size, investor protection and gender diversity, with strong governance structure, can enhance the transparency of companies.
Originality/value
The paper examines the prominence of CG norms with the ratification of the Indian Companies Act 2013, which is analogous with global CG policies and regulations.
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The purpose of this paper is to contribute to scholarly work on the role of sell-side financial analysts in corporate governance (CG). It examines the more recent work products…
Abstract
Purpose
The purpose of this paper is to contribute to scholarly work on the role of sell-side financial analysts in corporate governance (CG). It examines the more recent work products pertaining specifically to CG that analysts based in the USA and UK have generated in the past two decades, namely, their CGCG reports. Specifically, this paper focusses on analysing how analyst CG reports constitute a comparative space in which the governance procedures of companies are evaluated and “best practices” are created.
Design/methodology/approach
This study involves a social constructivist textual analysis of 48 CG reports produced by analysts based in the USA and UK between 1998 and 2009.
Findings
Analyst CG reports textually construct a comparative space comprising four dimensions. First, the space is constructed for some carefully edited users to evaluate the governance of companies. Second, the construction of this space requires the selection of “building materials”, i.e., governance issues included in the space that render companies amenable to evaluation and comparison. Third, by linking the range of governance issues chosen to formal regulations, firms are rendered governable and regulatory requirements reinterpreted. Lastly, by using different types of inscriptions, such as narratives and tables, the space highlights “winners”, i.e., those companies which do better than others, and constructs their governance procedures as “best practices”.
Research limitations/implications
This research provides a first step towards an in-depth understanding of analyst CG reports. The insights from this paper generate a range of areas for future research, including how these reports are produced and used.
Originality/value
This paper adds to the existing literature focussing on the role of analysts in CG. It extends previous studies by examining the more recent and debatable work products generated by analysts, namely, their CG reports, and suggests an extended CG role for them. Theoretically, analyst CG reports are conceptualised as “inscriptions” that construct “documentary reality”. The notion of “editing” is also drawn upon, to analyse a particular way in which documentary reality is constructed. Accordingly, this paper broadens the theoretical perspectives used in CG research.
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Mahfoudh Hussein Mgammal, Barjoyai Bardai and Ku Nor Izah Ku Ismail
This paper aims to examine the impact of corporate governance internal mechanisms on tax disclosure in non-financial firms in Malaysia. Managerial ownership and incentive…
Abstract
Purpose
This paper aims to examine the impact of corporate governance internal mechanisms on tax disclosure in non-financial firms in Malaysia. Managerial ownership and incentive compensation are used as proxies to reflect corporate governance conduct.
Design/methodology/approach
This study uses panel data set to analyse 286 non-financial listed companies on Bursa Malaysia for the years 2010-2012. Tax disclosure was gathered from the financial statements, particularly in the consolidated of tax expenses. Tax disclosure was measured using modified effective tax rate reconciling items. Multivariate statistical analyses were run on the sample data.
Findings
This study finds that managerial ownership and incentive compensation do not significantly influence tax disclosure. On the other hand, it is found that there are significant positive associations between each of firm size and industry dummy, and tax disclosure. This means that company-specific characteristics are important factors affecting corporate tax disclosure.
Research limitations/implications
This study extends the work of previous studies by suggesting that the signalling theory and the agency theory are the main theories concerned with tax disclosure and corporate governance. The authors add an additional appreciation of the contribution of corporate governance from the interested parties’ tax disclosure evaluation in the Malaysian environment.
Practical implications
The evidence found by this study has important policy and practical knowledge implications for the authorities, researchers, decisionmakers and firm managers. The findings provide them with some relevant insights on the importance of corporate governance practices from the companies’ perspectives and contribute to the discussion of who verifies and deduces from tax disclosure directed by companies.
Originality/value
To the best of the authors’ knowledge, this study is the first attempt to examine the influence of the corporate governance internal mechanisms on tax disclosure in a developing nation like Malaysia. Although this paper focuses on a single country, it contributes significantly to the debate about tax disclosure in relation to “comply or explain”, as suggested in the Code of Corporate Governance. This study shows that companies are trying to avoid as far as possible disclosing tax-related information.
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