Impact of corporate governance on financial performance of sugar sector firms listed in Pakistan stock exchange

2019 ◽  
Vol 12 (2) ◽  
Author(s):  
Muhammad Wasim Jan Khan ◽  
Usman Saeed
Keyword(s):  
Developing Countries ◽  
Corporate Governance ◽  
Financial Performance ◽  
Firm Size ◽  
Stock Exchange ◽  
Balance Sheet ◽  
Board Size ◽  
Return On Equity ◽  
Firm Financial Performance ◽  
Relationship Of

Corporate governance is considered as environment of trust, set of processes, policies and laws affecting the way corporations are administrated and directed. The previous literature in context of the corporate governance relationship with firm financial performance shows controversial findings; similarly literature shows lack of studies in context of developing countries as Pakistan. Therefore, this research explores the relationship of the corporate governance and the firm financial performance in context of developing country as Pakistan. The data has been collected from the sugar sector listed in KSE (Pakistan Stock Exchange), 20 corporations are selected as sample from sugar sector on basis of outstanding shares. Corporate governance taken as independent variable and measured as CEO biformity (CB), board size (BS), firm age (FA), firm size (FS). Financial performance of firms taken as dependent variable and measured as return on asset (ROA), return on equity (ROE), net profit margin (NPM). Data is collected for period of 2000-2013 from reports of the sugar companies listed in KSE (Pakistan Stock Exchange) issued annually and analysis of balance sheet given by State Bank of Pakistan (SBP). Result shows that CEO biformity significantly affecting firm financial performance. Board size (BS) shows partially significant impact on firm financial performance. Firms age (FA) show partially significant impact on firm financial performance. Firm size (FS) shows partially significant impact on firm financial performance. Therefore, conclusion has been drawn based on the results of analysis that this study adds new knowledge to the existing body of knowledge of corporate governance impact on firm financial performance and in context of developing countries as Pakistan. Keywords: Corporate governance, firm financial performance, sugar sector, Pakistan.

scholarly journals Impact of Corporate Governance on Financial Performance: Karachi Stock Exchange, Pakistan

2016 ◽  
Vol 6 (2) ◽  
pp. 401 ◽  
Author(s):  
Aon Waqas Awan ◽  
Javed Ahmed Jamali
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Audit Committee ◽  
Stock Exchange ◽  
Profit Margin ◽  
Audit Committees ◽  
Board Size ◽  
Good Decision ◽  
Return On Equity ◽  
The Impact

The aim of the research is to understand the impact of corporate governance on financial performance of listed companies on Karachi Stock Exchange Pakistan. Data was collected from forty two companies from different sectors like, insurance, banking, investment banking, and sugar industries. Study includes variables like profit margin & return on equity as a dependent (profitability) and board size, audit committee, annual general meetings & chief executive office (corporate governance). Using Pooled OLS, the result of the study proved those board size and audit committees have positive relationship with Profit margin and Return on Equity, if any independent variable changes it also stimulus the positively changing impact on Return on Equity (ROE) and Audit Committee (AC). This research offers imminent guidelines to the policy and decision makers in any type of firms to take good decision to set their firms hierarchy system.

scholarly journals MEKANISME GOOD CORPORATE GOVERNANCE, LEVERAGE DAN KINERJA KEUANGAN PERUSAHAAN

2018 ◽  
Vol 9 (1) ◽  
Author(s):  
Evi Oktavia
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Boards Of Directors ◽  
Audit Committee ◽  
Stock Exchange ◽  
Secondary Data ◽  
Governance Mechanism ◽  
Financial Industry ◽  
Return On Equity ◽  
Firm Financial Performance

The purpose of this research is to explain an empirical evidence about the effect of GoodCorporate Governance (GCG) mechanism and leverage on financial performance, and definewhich of the most important variables having powerful impact on the firm financial performance.Good Corporate Governance mechanism measured by using board gender, board of directors,board of commissioner, audit committee, and institutional ownership variables. Leveragemeasured by using Debt to Equity Ratio (DER) variable, while financial performance measuredby using Return on Equity (ROE) variable. This research is using secondary data, such as thefinancial report, idx statistic report, and other related information of financial industry listed inIndonesia Stock Exchange for the period of 2011 to 2015. The sample used in this research were23 companies which selected by using purposive sampling method. In this study, panel dataregression methods have been conducted to explain the effect of GCG and leverage on the firmfinancial performance.The results show that board gender has a positive and significant effect on the firmfinancial performance. Meanwhile, boards of directors, board of commissioner, audit committeeand leverage haveno significant effect on the firm financial performance. Moreover, institutionalownership has a positive effect and no significant on the firm financial performance.

scholarly journals The Impact Of Corporate Governance on The Financial Performance in Malaysia

2021 ◽  
Vol 5 (1) ◽  
pp. 41-58
Author(s):  
NURFATANAH ABDULLAH
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Firm Size ◽  
Audit Committee ◽  
Committee Meeting ◽  
Board Size ◽  
Firm Financial Performance ◽  
Normality Test ◽  
Lm Test ◽  
The Impact

The aim of this study is to investigate the relationship between corporate governance and firm financial performance in Malaysia. This study is mainly focusing on four sections of corporate governance which are board independent, board size, the frequency of audit committee meeting and firm size. The population of this study is Top 30 firms in Malaysia that are public listed in Bursa Malaysia while for the period, this study focusses on year 2016 to 2019 which is 4 years. This study uses Return on Assets (ROA) to measure the firm effectiveness and efficiency. As for statistical analysis, this study uses E-View to run all the test such as Breusch-Godfrey Serial Correlation LM Test, Hausman Test, Ordinary Least Squared (OLS) method, Autocorrelation, Multicollinearity and Normality Test. According to the results of the analysis, board independent has positive insignificant relationship with firm performances while board size and firm performances have negative and insignificant relationship. As for the frequency of audit committee meeting and firm size, the results display that both variables have negatively significant relationship with the performances of the firm. Apart from that this study use two theory which are Prospect Theory and Agency Theory.

scholarly journals The relationship between board characteristics and firm financial performance in Malaysia

2016 ◽  
Vol 14 (1) ◽  
pp. 259-268 ◽  
Author(s):  
Sin Huei Ng ◽  
Boon Heng Teh ◽  
Tze San Ong ◽  
Wei Ni Soh
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Voluntary Disclosure ◽  
Random Effect ◽  
Board Size ◽  
Return On Equity ◽  
External Auditors ◽  
Board Characteristics ◽  
Firm Financial Performance ◽  
The Relationship

Corporate governance has drawn attention of investors and government after the incidence of financial crisis world- wide since the late 90’s. Despite that reforms of corporate governance have been in place in Malaysia, voluntary disclosure of corporate governance has yet to proof its impact on the financial performance of the companies. This study examines the relationship between corporate governance attributes and firm financial performance in Malaysia. The relationship between board characteristics (board tenure, board size and CEO duality) were analyzed to investigate their correlation with firm financial performances. A total of 100 public listed companies were randomly selected from Bursa Malaysia for the year 2009 to 2013. Random effect panel data regression was obtained by using Stata. This study finds that board size, board tenure were significant to Return on Equity (ROE) and Return on Assets (ROA). However, firm size has no significant relationship with firm financial performance. It is recommended that apart from including more variables as controlling effects on firm financial performance and examining few industries as sample, it is also good to examine the correlation between board characteristics and corporate governance variables (foreign listings, equity analysis, external auditors, leverage ratios, dividend policy, etc.) on one hand, and ownership structures on the other hand, that have significant impact on firm financial performance.

scholarly journals Effect of corporate governance on the financial performance of commercial banks in Nigeria

2020 ◽  
Vol 15 (3) ◽  
pp. 55-69
Author(s):  
Lawrence Uchenna Okoye ◽  
Felicia Olokoyo ◽  
Johnson I. Okoh ◽  
Felix Ezeji ◽  
Rhoda Uzohue
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Firm Size ◽  
Good Governance ◽  
Generalized Method Of Moments ◽  
Board Size ◽  
Return On Equity ◽  
Governance Practices ◽  
Banking Institutions ◽  
Business Entities

Banks are expected to operate within acceptable standards of governance for consistent profitable operations. They run heavily on customer deposits, which is confidence-driven. Since the quality of governance is critical to winning and retaining customer confidence and patronage, the imperative for good governance practices in banks cannot be overemphasized. This research paper explores the nexus between governance practices and bank profitability in Nigeria. It adopts the size of bank board and directors’ stake as proxies for corporate governance, with return on assets and return on equity as representations for financial performance. The research incorporates firm size as a controlled variable. The estimation technique of the Generalized Method of Moments was employed. Evidence from the research reveals that board size, directors’ equity, and firm size substantially affect Nigerian banks’ financial performance. Besides, the study shows a robust effect of lagged return on equity on the current level of performance. Therefore, the study asserts that governance in business entities strongly affects their financial performance and recommends maintaining optimum board size to minimize boardroom conflicts. It further prescribes that the requirement for substantial equity stake by directors of banking institutions be sustained, as it secures commitment to governance practices that support profitability. AcknowledgmentThe authors acknowledge the support of Covenant University towards the publication of this paper.

scholarly journals The Effect of Corporate Governance on Financial Performance in Non-Financial LQ-45 Firms Listed on the Indonesian Stock Exchange from 2012 to 2017

2019 ◽  
Vol 4 (1) ◽  
pp. 21-27
Author(s):  
Erika Jimena Arilyn ◽  
Beny Beny ◽  
Emir Kharismar
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Firm Size ◽  
Stock Exchange ◽  
Panel Data Analysis ◽  
Jel Classification ◽  
Annual Reports ◽  
Board Independence ◽  
Financial Leverage ◽  
Board Size

Objective - This research is conducted in order to determine what factors in corporate governance affect the financial performance of a firm. Methodology/Technique - Financial performance, as the dependent variable, is measured by Return on Asset (ROA), while the independent variables (corporate governance) are measured using Board Independence, Board Size, Dividend, Firm Size, and Financial Leverage. The sampling method used in this research is purposive sampling. The requirements for the sample of this research are the non – financial firms included in LQ-45 from 2012 to 2017 that publish annual reports that are available to the public. The research method used in this paper is a quantitative method. Panel data analysis technique and E-views tools were also used. Findings - The results indicate that firm size and percentage of board independence has no effect on financial performance, while board size, dividends, and financial leverage all effect financial performance. Novelty - The study adds to the literature of corporate government and firm performance in emerging countries. Type of Paper Empirical Keywords: Board Independence; Board Size; Dividends; Firm Size; Financial Leverage; Financial Performance. JEL Classification: M40, M48, M49. DOI: https://doi.org/10.35609/afr.2019.4.1(4)

Implementasi Tata Kelola Perusahaan Terhadap Nilai Perusahaan: Studi Empiris pada Perusahaan di Indonesia

2016 ◽  
Vol 7 (2) ◽  
pp. 1-17
Author(s):  
Patricia Diana
Keyword(s):  
Developing Countries ◽  
Corporate Governance ◽  
Financial Performance ◽  
Firm Value ◽  
Stock Exchange ◽  
Investment Decision ◽  
International Market ◽  
Self Assessment ◽  
Result Show ◽  
Observation Period

Indonesia as one of developing countries should prepare for intense business competition in international market by continuously improving their financial performance which reflected by profitability enhancement. In order to achieved this goals, companies should build synergic relationship between stakeholders. Implementation of corporate governance is believed can assist companies in improving firm value by minimizing cost and maximize companies’ profit. This study aims to investigate the effect of corporate governance implementation on Indonesian companies. Corporate Governance Perception Index (CGPI) which establish by Indonesian Institute of Corporate Governance (IICG) used as proxy for corporate governance implementation, and ROA used as proxy for firm value. All the data obtain from Indonesia Stock Exchange (IDX) database and period 2008 to 2012 used as observation period. The result show that implementation of corporate governance has significant effect with firm value proxy by ROA. This study also concludes that market will be more concern on CGPI which generated through documentation and presentation indicators and also observation indicators rather than self-assessment indicators. This indicates that market would trust the information which comes from independen external parties. The result will be useful for investor in making their investment decision which based on profitability consideration. Keywords: Corporate Governance, CGPI, ROA, profitability

scholarly journals TATA KELOLA DAN KINERJA KEUANGAN BADAN USAHA MILIK NEGARA (BUMN) GO PUBLIC PERIODE 2014-2018

2021 ◽  
Vol 10 (1) ◽  
pp. 82-101
Author(s):  
Andika Dwi Pradito ◽  
Axel Giovanni ◽  
Devi Wahyu Utami
Keyword(s):  
Corporate Governance ◽  
Linear Regression ◽  
Financial Performance ◽  
Empirical Evidence ◽  
Audit Committee ◽  
Stock Exchange ◽  
Analytical Tool ◽  
Board Independence ◽  
Government Ownership ◽  
Board Size

Abstrak: Tata Kelola Dan Kinerja Keuangan Badan Usaha Milik Negara (BUMN) Go Public Periode 2014-2018. Penelitian ini bertujuan untuk memberikan bukti empiris mengenai pengaruh tata kelola perusahaan terhadap kinerja keuangan Badan Usaha Milik Negara (BUMN) yang terdaftar di Bursa Efek Indonesia (BEI) selama periode 2014-2018. Sampel penelitian yang memenuhi kriteria berjumlah 12 Badan Usaha Milik Negara (BUMN). Alat analisis yang digunakan adalah regresi linear. Hasil penelitian memberikan bukti mengenai urgensi komite audit dalam tata kelola perusahaan. Penelitian ini juga menunjukan bahwa board size, board independence serta kepemilikan pemerintah tidak memiliki peran dalam menjelaskan variabilitas kinerja keuangan Badan Usaha Milik Negara (BUMN).Kata kunci: Badan Usaha Milik Negara (BUMN), kinerja keuangan, tata kelola perusahaanAbstract: Governance and Financial Performance of State-Owned Enterprises (SOEs) Go Public Period 2014-2018. This study aims to provide empirical evidence regarding the effect of corporate governance on the financial performance of State-Owned Enterprises (SOEs) listed on the Indonesia Stock Exchange (IDX) during the 2014-2018 period. Research samples that met the criteria totaled 12 State-Owned Enterprises (BUMN). The analytical tool used is linear regression. The results of the study provide evidence of the urgency of the audit committee in corporate governance. This study also shows that board size, board independence, and government ownership do not have a role in explaining the variability in the financial performance of SOEs.Keywords: corporate governance, financial performance, state-owned enterprises (SOEs)

Disclosure and corporate governance in developing countries: evidence from Ghana

2007 ◽  
Vol 22 (3) ◽  
pp. 319-334 ◽  
Author(s):  
Mathew Tsamenyi ◽  
Elsie Enninful‐Adu ◽  
Joseph Onumah
Keyword(s):  
Developing Countries ◽  
Corporate Governance ◽  
Firm Size ◽  
Ownership Structure ◽  
Developing World ◽  
Stock Exchange ◽  
Content Type ◽  
Market Capitalization ◽  
Governance Practices ◽  
Structure Dispersion

PurposeFollowing previous studies the paper seeks to use disclosure scores to examine corporate governance practices of Ghanaian listed firms. The study is motivated by the dearth of literature on corporate governance practices in the developing world despite the increasing interests in the topic in both the developed and the developing world.Design/methodology/approachThe data for the analysis are gathered from 22 listed companies on the Ghana Stock Exchange (GSE representing 95 percent of the Ghanaian market capitalization). The paper also examines the extent to which factors such as ownership structure, dispersion of shareholding, firm size, and leverage influence disclosure practices.FindingsConsistent with findings reported in studies from other developing countries the study finds that the level of disclosure in Ghana is low. Furthermore, ownership structure, dispersion of shareholding, and firm size (measured as total assets and market capitalization) all have significant effect on disclosure. However, the correlation between disclosure and leverage is insignificant.Research limitations/implicationsThe findings of the research will help policy makers and practitioners in formulating corporate governance policies. However, this research is limited because it focuses on only companies listed on the GSE. The results may therefore not be representative of all companies operating in Ghana.Originality/valueThe study is important because of the recent surge in international capital into the developing world (including Ghana) as a result of the ongoing World Bank and IMF led economic reforms. These reforms have emphasized transparency and accountability. There is therefore the need to understand corporate governance practices in these environments.

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