Does Good Corporate Governance Include Employee Representation? Evidence from German Corporate Boards

Purpose This paper aims to examine the Brazilian stock market behavior and volatility term structure of two portfolios that, theoretically, the companies that comprise them have different degrees of idiosyncratic risk: one portfolio consists of firms with good corporate governance and the other comprises firms with poor corporate governance. Design/methodology/approach The sample comprises corporate firms listed in the Brazilian stock market during the period from January 2008 to December 2017. Generalized autoregressive conditional heteroskedasticity models were applied. Findings The results show that the portfolio of firms with good corporate governance practices presents fluctuations that are more often temporary and reactive, with trends’ persistence of shorter durations, when considering the punctual volatility of the parameters estimated. This opposed expectation that the portfolio comprised of companies with good governance practices are better protected from short-term movements. However, over time and with standard error measures in consideration, both portfolios’ volatilities behave in similar ways. These findings may be related to Brazilian market characteristics, such as ownership concentration, ineffective corporate boards and the ever-developing nature of the stock market in Brazil. Any one of these characteristics present challenges to effective enforcement of the corporate governance practices in the Brazilian context. Originality/value The findings are potentially to the interest of researchers and practitioners for several reasons. First, this paper contributes to the growing literature on the relationship between corporate governance and market volatility. Second, it informs that volatility in the Brazilian context is likely only partially, if at all, influenced by corporate governance practices. Third, longitudinally, both indices follow the same pattern and converge to the same place.

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Exploring Linkages Between Corporate Governance and Business Performance: Does Good Corporate Governance Lead to Enhanced Business Value?

South Asian Survey ◽

10.1177/0971523120907189 ◽

2020 ◽

Vol 27 (1) ◽

pp. 37-61

Author(s):

Tirthankar Nag ◽

Chanchal Chatterjee

Keyword(s):

Corporate Governance ◽

Firm Performance ◽

Business Performance ◽

Stock Exchange ◽

Random Effect ◽

Corporate Boards ◽

Market Returns ◽

Good Corporate Governance ◽

Governance Practices ◽

The Relationship

This study explores the influence of corporate governance practices in corporate boards on firm performance and draws insights on the relative importance for companies for fostering the development of governance mechanisms in business. The study examines 50 firms belonging to the benchmark index of the National Stock Exchange of India (NIFTY 50) and tracks them for over a five-year period. The study uses fixed and random effect econometric models to explore the relationship between corporate governance variables, and firm performance using both accounting returns (EVA, ROA and ROE) and market returns (MVA). The study finds that corporate governance variables significantly improve firm performance or value creation. Especially, multiple directorships, involvement of foreign institutional investors and increase in promoter holdings may significantly affect returns of the firm. The study suggests that it may be useful to foster better corporate governance practices and monitor linkages with firm performance as the effect is influenced by other control variables also.

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Global Economic Disruption in Indonesia in Covid – 19 Pandemic

10.31219/osf.io/cp9vq ◽

2021 ◽

Author(s):

Aditya Pratama

Keyword(s):

Corporate Governance ◽

Business Development ◽

Market Valuation ◽

Downward Trend ◽

Economic Conditions ◽

Corporate Boards ◽

Slowing Down ◽

Good Corporate Governance ◽

The World ◽

The Relationship

In the midst of uncertainty in the world today, one of the best alternatives can be used by companies to stay afloat and generate profits is by transmuting businesses and their workforce in keeping with changing information and technology developments business patterns. The downward trend in export and import values from 2015 has made business a big deal business development in Indonesia in 2018 is limited. Economic conditions in 2018 tends to be slowing down and volatile, accompanied by the uncertainty that originates of global finance.In conditions of economic disruption (until 2020), companies are required to continue innovating and creating diversified products. But in reality, there are many companies in Indonesia still don't know what action to take. From years 2016 to 2018, business competition is becoming increasingly fierce which requires leaders or corporate boards to convert company resources into values added which is beneficial for the stakeholders. This can be done as is Good Corporate Governance (GCG) which is a set of regulations organize, process, and supervise the relationship between company managers and stakeholders increase the value and market valuation of the company.

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Federalization of Corporate Governance

10.1093/oso/9780197583142.003.0005 ◽

2021 ◽

pp. 123-162

Author(s):

Marc I. Steinberg

Keyword(s):

Corporate Governance ◽

Racial Diversity ◽

Federal Court ◽

Term Limits ◽

Corporate Boards ◽

Governance Framework ◽

Employee Representation ◽

Board Of Director ◽

Definition Of ◽

Securities Laws

This chapter examines the federalization of corporate governance from both historical and contemporary perspectives. It addresses gaps in the corporate governance framework and recommends the implementation of improved standards on the federal levels. These recommendations focus on such timely matters as board of director composition, greater gender and racial diversity on corporate boards, employee representation on boards, adoption of director term limits, excessive executive compensation, the implementation of a more realistic definition of “independent director,” and shareholder access to a company’s proxy statement to nominate a specified number of directors. The chapter also posits that federal court invocation of state law principles to ascertain the parameters of the federal securities laws in the corporate governance sphere is misplaced in view of the entrenched federalization of corporate governance.

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Corporate Governance Code and Corporate Governance Implications for Business: A Critique of Nigeria’s 2016 and 2018 Codes

Recht in Afrika ◽

10.5771/2363-6270-2019-1-77 ◽

2019 ◽

Vol 22 (1) ◽

pp. 77-96

Author(s):

S. E. Ojogbo ◽

T. C. Nwano

Keyword(s):

Corporate Governance ◽

Board Of Directors ◽

Corporate Boards ◽

Corporate Accountability ◽

Corporate Board ◽

Minority Shareholders ◽

Corporate Governance Code ◽

Good Corporate Governance ◽

Corporate Governance Codes ◽

Code Of Corporate Governance

Corporate governance is the system by which companies are directed and controlled. Board of directors are responsible for the governance of a Nigerian company. However, the shareholders of a Nigeria company have power of oversight over the board. This power is exercised by a majority of shareholders. It is this separation of ownership and control that makes good corporate governance imperative to protect shareholders against corporate board misbehaviour, as well as to protect minority shareholders against the opportunism of corporate insiders (board of directors and majority shareholders). Even though corporate law is the primary legislation that regulates the corporation, corporate governance codes have become important corporate governance standards that helps to guide the board and promote effective managerial engagement with shareholders to promote corporate accountability. The Financial Reporting Council of Nigeria (FRCN) issued two corporate governance codes in two years - the National Code of Corporate Governance 2016 and the Nigerian Code of Corporate Governance 2018. This shows a clear intention to promote good corporate governance in the country. This essay identifies the peculiar corporate governance challenges in Nigeria, and reviews the two corporate governance codes to show how they address the peculiar challenges. The paper undertakes a criticism of the 2018 and compares to the 2016 Code and corporate governance regulations in other regulations. This criticism highlights the weaknesses in the code and the need for a review. The essay thus suggests a review of the 2018 to provide for Independent Non-Executive Directors dedicated to the interest of minority shareholders as an important first step towards providing access to corporate boards for minority shareholders, as a strategy for promoting corporate accountability. The paper concludes that since the very essence of a corporate governance code is to promote good corporate governance and accountability, any corporate governance Code for Nigeria must address the peculiarity of the Nigerian corporate environment for it to be able to achieve this purpose.

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Corporate Boards and Ownership Structure as Antecedents of Corporate Governance Disclosure in Saudi Arabian Publicly Listed Corporations

Business & Society ◽

10.1177/0007650315610611 ◽

2015 ◽

Vol 57 (2) ◽

pp. 335-377 ◽

Cited By ~ 41

Author(s):

Waleed M. Al-Bassam ◽

Collins G. Ntim ◽

Kwaku K. Opong ◽

Yvonne Downs

Keyword(s):

Corporate Governance ◽

Fixed Effects ◽

Corporate Boards ◽

Government Ownership ◽

Firm Level ◽

Cross Sectional ◽

Policy Makers ◽

Good Corporate Governance ◽

Big 4 ◽

Governance Disclosure

This study investigates whether and to what extent publicly listed corporations voluntarily comply with and disclose recommended good corporate governance (CG) practices, and distinctively examines whether the observed cross-sectional differences in such CG disclosures can be explained by ownership and board mechanisms with specific focus on Saudi Arabia. The study’s results suggest that corporations with larger boards, a Big 4 auditor, higher government ownership, a CG committee, and higher institutional ownership disclose considerably more than those that are not. By contrast, the study finds that an increase in block ownership significantly reduces CG disclosure. The study’s results are generally robust to a number of econometric models that control for different types of disclosure indices, firm-specific characteristics, and firm-level fixed effects. The study’s results have important implications for policy makers, practitioners, and regulatory authorities, especially those in developing countries across the globe.

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Pengaruh Good Corporate Governance Terhadap Nilai Perusahaan Dengan Variabel Intervening Profitabilitas

Kajian Bisnis STIE Widya Wiwaha ◽

10.32477/jkb.v25i1.228 ◽

2017 ◽

Vol 25 (1) ◽

pp. 13-39

Author(s):

Achmad Tjahjono ◽

Siti Chaeriyah

Keyword(s):

Corporate Governance ◽

Path Analysis ◽

Executive Director ◽

Audit Committee ◽

Positive Impact ◽

Institutional Ownership ◽

Analysis Tool ◽

Manufacturing Companies ◽

Company Value ◽

Good Corporate Governance

The Company was founded with the goal of increasing the value of the company as well as to provide prosperity for the owners or shareholders. Good Corporate Governance and profitability is an effort to enhance company value. This study aims to determine the influence of good corporate governance to company value with profitability as intervening variable. The population of this research is manufacturing companies listed in Indonesia Stock Exchange in 2010 - 2014. The sample is taken by using purposive sampling method. Under this method, as many as 123 companies were obtained. The analysis tool to test the hypothesis is path analysis with AMOS software version 21. Data analysis method is descriptive analysis, path analysis, and sobeltest. The results of this study indicate that managerial ownership, the audit committee and the profitability have positive impact toward the of the company value, institutional ownership has positive impact but not significant, non-executive director with negative effect tendency on the company value. The results of this study also showed that profitability cannot mediate the effect of good corporate governance mechanisms on company value. It can be suggested to replace the intervening variable with other variables such as quality of earnings instead of profitability since it is declined as an intervening variable. non-executive director and institutional ownership does not contribute any positive and significant effect on company value and profitability. The following research can use another proxy in the measurement process and consider other theories that could explain comprehensively.

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Penerapan Good Corporate Governance Pada Nazhir Tunai Yang Terdaftar Di Badan Wakaf Indonesia Studi Kasus Di Tabung Wakaf Indonesia Dan YPI Wakaf AL Azhar

Liquidity ◽

10.32546/lq.v5i2.50 ◽

2018 ◽

Vol 5 (2) ◽

pp. 95-105

Author(s):

Dede Dahlan

Keyword(s):

Corporate Governance ◽

Likert Scale ◽

Money Management ◽

Analysis Method ◽

Purposive Sampling ◽

Good Corporate Governance ◽

Management Institutions

There are many understanding of society, that cash waqf it should not be legal. So is the trust factor of people's money management institutions waqf (Nazhir) is still a constraint. Research conducted in Tabung Wakaf Indonesia (TWI) and Wakaf Al Azhar this analysis method, namely the principles of Good Corporate Governance (GCG). Here researchers using purposive sampling, followed by giving a score using the Likert Scale. To determine whether the data obtained in the field is valid or not, the researchers used a method tri angular source. The results of the assessment of GCG in TWI and Wakaf Al-Azhar obtain a total score of at Tabung Wakaf Indonesia amounting to 3.15. Then the bias is said that the implementation of GCG at TWI and Wakaf Al-Azhar declared "GOOD ENOUGH". While the results of the evaluation tri angular mention, that the data obtained from the results of research in the field both TWI and in Wakaf Al-Azhar, when compared with the corporate governance principles can be declared invalid according to the KNKG.

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Pengaruh Kinerja Keuangan dan Good Corporate Governance (GCG) Terhadap Nilai Perusahaan

MBIA ◽

10.33557/mbia.v17i2.317 ◽

2019 ◽

Vol 17 (2) ◽

pp. 1-10

Author(s):

Rolia Wahasusmiah

Keyword(s):

Corporate Governance ◽

Firm Value ◽

Sampling Method ◽

Total Population ◽

Annual Report ◽

Stock Exchange ◽

Secondary Data ◽

Positive Influence ◽

Manufacturing Companies ◽

Good Corporate Governance

This study aims to determine the effect of financial performance and good corporate governance (GCG) on the value of companies in manufacturing companies listed on the stock exchange Indonesia. The type of data used is secondary data in the form of annual report 2016. Population used in this study are all companies listed on the Indonesia Stock Exchange (BEI). This research uses purposive sampling method with total population of 144 companies and sample of 31 companies. The results show that simultaneously ROA, OPM, NPM, KM, and KI have a positive influence on firm value. While partially ROA have a positive influence on firm value. While OPM, NPM, KM, and KI have no positive influence on firm value).

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