The role of corporate governance system in magnifying the impact of exogenous changes on the economy with self-fulfilling crises

2008 ◽  
Vol 20 (4) ◽  
pp. 453-478 ◽  
Author(s):  
Yong Jin Kim
Keyword(s):  
Corporate Governance ◽  
Governance System ◽  
Corporate Governance System ◽  
The Impact

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

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

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

Sustainable corporate governance and new auditing issues: a preliminary empirical evidence on key audit matters

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Pietro Fera ◽  
Michele Pizzo ◽  
Rosa Vinciguerra ◽  
Giorgio Ricciardi
Keyword(s):  
Corporate Governance ◽  
Stock Exchange ◽  
Corporate Sustainability ◽  
Quantitative Methodology ◽  
Audit Process ◽  
Governance System ◽  
Content Type ◽  
Corporate Governance System ◽  
The Impact

Purpose This paper aims to investigate the relationship between the quality of internal corporate governance mechanisms and the audit issues disclosed by external auditors in their report, assuming the beneficial effect related to the adoption of a sustainable corporate governance system. Design/methodology/approach This paper investigates the impact of the International Auditing and Assurance Standards Board’s ISA 701 in the European context as a new auditing principle supporting the key audit matters (KAMs) in reporting and disclosing auditing activities. The analysis is carried out through a quantitative methodology using a sample composed of non-financial companies listed on the Italian Stock Exchange. Findings Empirical findings highlight that firms having a high quality and sustainable corporate governance system tend to have fewer KAMs arising from the audit process and then disclosed in the audit report. To ensure the reliability of the empirical analysis, the authors controlled for a set of variables that could affect the audit function and for the mediating role of the overall business complexity (as proxied by the firm size). Originality/value This study is of interest to academics, practitioners and regulators, as it highlights the role of a higher quality internal corporate governance on the perceived corporate riskiness and complexity. It contributes to the recent debate on sustainable corporate governance, corporate sustainability and auditing streams.

Corporate Governance and Cash Holdings

2021 ◽  
pp. 305-321
Author(s):  
Ahmed Hassanein
Keyword(s):  
Corporate Governance ◽  
Cash Holdings ◽  
Opportunistic Behavior ◽  
Governance System ◽  
Firm Level ◽  
Corporate Managers ◽  
Country Level ◽  
Corporate Governance System ◽  
The Impact ◽  
Corporate Cash Holdings

Corporate cash induces the opportunistic behavior of corporate managers that can create an agency problem. A corporate governance system controls the opportunistic behavior of managers and can affect the firm's policy on holding cash. This study explains how the aspects of corporate governance, country-level and firm-level governance, can affect the corporate policy on holding cash. First, the study provides the nature, definition, and importance of corporate cash holdings. Second, it outlines various motivations and theories behind holding corporate cash. Third, it explains the relation between firm-level governance and corporate cash holdings. Fourth, it focuses on the impact of firm-specific governance attributes on the level of corporate cash holdings. Fifth, it presents the relation between country-level governance and corporate cash holdings.

The Role of Finance and Corporate Governance in National Systems of Innovation

2007 ◽  
Vol 28 (10) ◽  
pp. 1461-1481 ◽  
Author(s):  
Andrew Tylecote
Keyword(s):  
Corporate Governance ◽  
Three Dimensions ◽  
Governance System ◽  
Systems Of Innovation ◽  
Governance Systems ◽  
Variation Patterns ◽  
Technological Advantage ◽  
Corporate Governance System ◽  
National Systems

Firms are central actors in innovation, and their actions are much affected by their corporate governance and the finance available. Thus a country's finance and corporate governance system is a key element of its national system of innovation. The technological regimes of sectors (and sub-sectors) vary in ways that affect the demands innovation makes on the financial and corporate governance system. Finance and corporate governance systems (FCGSs) vary among countries in their ability to meet these demands. By setting three dimensions of regime variation alongside the three corresponding dimensions of FCGS variation, patterns of relative and absolute technological advantage among economies can be largely explained — particularly when the focus is on nationality of firm rather than location of activity.

scholarly journals The Impact of Corporate Governance on Company Performance: A Study among Medium and Large Enterprises in Kosovo

2018 ◽  
Vol 9 (6) ◽  
pp. 207-212
Author(s):  
Saxhide Mustafa ◽  
Hajdin Berisha ◽  
Shyqyri Llaci
Keyword(s):  
Corporate Governance ◽  
Company Performance ◽  
Governance System ◽  
Market Experience ◽  
Corporate Governance System ◽  
Governance Practices ◽  
The Impact ◽  
Proper Balance ◽  
Large Enterprises

Abstract An effective corporate governance system is established to ensure proper balance of long-term interests of different stakeholders (primarily: owners, employees and management) and improve company's performance and its competitive position in the market. This paper provides a theoretical discussion and empirical evidence on the interdependence between corporate governance and company performance among medium and large enterprises in Kosovo. A questionnaire survey was employed for data collection purposes. The study included a sample of 87 managers from 87 medium and large enterprises. Results indicate that effects of corporate governance on the performance tend to be greater in larger companies. Regarding the determinants, the theoretical expectations are confirmed. Results confirm that the size of the company, the level of investment, export activities and company life expectancy are statistically significant determinants of the adoption of corporate governance practices. As a result, larger companies with large scales of investment and longer market experience tend to adopt more corporate governance practices. The study suggests that corporate governance will inevitably affect companies’ performance and further research is needed in this context.

scholarly journals Informal Institutions in the Corporate Governance System in Russia

2016 ◽  
Vol 19 (4) ◽  
Author(s):  
Monika Fiedorczuk
Keyword(s):  
Corporate Governance ◽  
Dominant Role ◽  
Informal Institutions ◽  
Point Of View ◽  
Minority Shareholders ◽  
Governance System ◽  
Market Mechanisms ◽  
Role Of The State ◽  
Corporate Governance System

The corporate governance system in Russia, having evolved through years, can be characterized by the following features: the dominant role of the concentrated ownership structure, corporate supervision relying on a combination of ownership function and company management, the significant role of the state as the owner, and the fairly marginal relevance of external market mechanisms. Those features result partly from particular legal solutions and partly from the unwritten, informal customs or patterns of behaviour of the so-called informal institutions.The article’s main thrust is to analyse selected informal institutions which were considered the most significant from the Russian corporate governance system point of view. These are, among others: the tendency not to obey the rights of minority shareholders, informal relationships of enterprises with authorities of various levels, and corruption. The author assumes that informal institutions decide upon the specificity of the corporate governance system in Russia and its particular elements, and upon the efficient functioning of supervisory mechanisms.

scholarly journals Effect of Earnings Management on Firm Value with Corporate Governance as a Moderating Variable

2021 ◽  
Vol 9 (2) ◽  
pp. 262-268
Author(s):  
Jevri Afrizal ◽  
Rindu Rika Gamayuni ◽  
Usep Syaipudin
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Firm Value ◽  
Management Practices ◽  
Governance System ◽  
Corporate Governance System ◽  
And Performance ◽  
Conceptual Study ◽  
Positive Effect

This study aims to provide a conceptual study of the effect of earnings management on firm value by including corporate governance. as a moderating variable. This paper is a conceptual paper that discusses issues related to earnings management on firm value and the role of corporate governance in minimizing earnings management practices so as to increase firm value. Previous theoretical studies have shown that earnings management is effectively controlled by the corporate governance system and performance. In addition, the results of previous studies found empirical evidence that there is a positive relationship between earnings management and firm value. From the theoretical discussion and previous research, it is concluded that earnings management practices have a positive effect on firm value as moderated by corporate governance.

scholarly journals THE IMPACT OF THE GLOBALIZATION PROCESS ON THE DEVELOPMENT OF CORPORATE GOVERNANCE

2019 ◽  
Vol 31 (1) ◽  
pp. 355-362
Author(s):  
Zorica Siljanovska ◽  
Sreten Miladinovski ◽  
Elena Shalevska
Keyword(s):  
Corporate Governance ◽  
Global Market ◽  
Special Focus ◽  
Global Integration ◽  
Governance System ◽  
Global Trends ◽  
Republic Of Macedonia ◽  
Corporate Governance System ◽  
The Republic ◽  
The Impact

The corporate governance is concerned with both the rules and regulations and institutions that influence the management mode within corporations as well as the manner in which they allocate their resources and returns. The globalization process, especially, the global integration of financial markets, puts pressures on national systems and models of corporate governance to converge i.e. comply with the global trends and developments in the area of corporate governance by opening their economies towards the global markets. This paper analyzes this very issue, or, in other words, the impact of the globalization on corporate governance, with special focus on the Republic of Macedonia. Consequently, it is demonstrated that the Republic of Macedonia is included in the process of globalization, companies are interested in presence and competition on the global market, and therefore building a good corporate governance system is a need, not a choice. Moreover, the Republic of Macedonia has substantially harmonized its regulations pertaining to the corporate governance on the basis of the principles commonly accepted at an international level.

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