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Journal articles on the topic 'Corporate Governance Compliance'
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Ferdous, Chowdhury Saima. "Corporate Governance in Bangladesh: Evidence of Compliance." International Business Research 11, no. 3 (February 12, 2018): 88. http://dx.doi.org/10.5539/ibr.v11n3p88.
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This study investigates companies’ level of compliance with the Code of Corporate Governance for Bangladesh. Using a quantitative approach, it aims to understand the extent a regulatory provision can enhance the governance scenario of a company. It employed a survey methodology, with a questionnaire being sent to all 229 companies listed on the Dhaka Stock Exchange. The results of the multivariate analysis suggest that age, size, industry and type of company have a statistically positive correlation with the level of compliance with the Code provisions. The findings of the study indicate that listed companies are, on average, moderately compliant with the Code, and compliance is comparatively higher with the Code provisions that coincide with other regulatory provisions. The major theoretical contribution of this study is with its empirical evidence of the code compliance literature from a developing country perspective. Moreover the findings can be used as a guide to help develop policies for better implementation of good governance standards; the identification of areas of non-compliance are expected to help code formulators, regulators and also companies to understand why and where companies are falling behind in compliance with the Code.
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Tagesson, Torbjörn, and Sven-Olof Yrjö Collin. "Corporate governance influencing compliance with the Swedish Code of Corporate Governance." International Journal of Disclosure and Governance 13, no. 3 (October 22, 2015): 262–77. http://dx.doi.org/10.1057/jdg.2015.15.
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Braendle, Udo. "Corporate Governance Code Compliance and financial performance: the case of Austrian stock listed companies." Investment Management and Financial Innovations 16, no. 3 (August 23, 2019): 131–41. http://dx.doi.org/10.21511/imfi.16(3).2019.13.
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This article analyzes the correlation between compliance to the Austrian Code of Corporate Governance and financial success of Austrian stock listed companies. It uses a sample of 52 Austrian companies that are listed on the Vienna Stock Exchange and corporate data collected from company publications such as annual reports, financial reports, corporate governance reports and company websites. Three accounting measures – return on assets, return on equity and net profit margin – were chosen in order to proxy the financial performance of a company. The period under review ranges from 2008 to 2016, whereas particular attention is given to the years 2010 to 2016. A corporate governance compliance score has been established on the comply or explain basis and recommendation rules of the Austrian Code of Corporate Governance in order to measure a company’s ability of implementing ‘good’ corporate governance practices. In line with research for other countries, this study finds no statistical evidence that a correlation exists between high compliance to the Austrian Code of Corporate Governance and financial success of companies listed on the Austrian Stock Exchange. The paper highlights the uniqueness of the Austrian Corporate Governance system when compared to other systems and gives arguments why companies comply with corporate governance recommendations.
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Yamani, Amal, Khaled Hussainey, and Khaldoon Albitar. "Does Governance Affect Compliance with IFRS 7?" Journal of Risk and Financial Management 14, no. 6 (May 28, 2021): 239. http://dx.doi.org/10.3390/jrfm14060239.
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Although there has been considerable research on the impact of corporate governance on corporate voluntary disclosure, empirical evidence on how governance affects compliance with mandatory disclosure requirements is limited. We contribute to governance and disclosure literature by examining the impact of corporate governance on compliance with IFRS 7 for the banking sector in Gulf Cooperation Council (GCC). We use a self-constructed disclosure index to measure compliance with IFRS 7. We use regression analyses to examine the impact of board characteristics, audit committee characteristics and ownership structure on compliance with IFRS 7. Using a sample of 335 bank-year observations for GCC listed banks over the period 2011–2017, we report evidence that corporate governance variables affect compliance with IFRS 7. However, the significance of these variables depends on the type of the regression model used. Our findings suggest that governance matters for mandatory disclosure requirements. So to improve the level of compliance, regulators, official authorities, and policymakers should intensify their efforts toward improving corporate governance codes, following up their implementation and enhancing the enforcement mechanisms.
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O. Al-Smadi, Mohammad. "Corporate governance and risk taking of Jordanian listed corporations: the impact of board of directors." Investment Management and Financial Innovations 16, no. 1 (February 6, 2019): 79–88. http://dx.doi.org/10.21511/imfi.16(1).2019.06.
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The aim of this study is to evaluate the compliance level of corporate governance rules and examine the impact of this compliance on risk taking of corporations in Jordan. This study used panel data of the listed corporations in Amman Stock Exchange from 2013 to 2017. Corporate governance index was constructed to gauge the compliance level of corporate governance rules. The results show a good level of overall compliance of corporate governance rules. As for the compliance of the categories of corporate governance rules, rules of transparency and disclosure are ranked first, while rules of general meeting assembly are ranked fourth. The regression results report a negative influence of corporate governance and corporate risk taking. In addition, four governance variables concerning the features of the board of directors are used in the study. The results reveal a negative impact of the size of the board of directors, independence of the board, and committees of the board on corporate risk taking. It is expected that the outcomes of the study can be used by management of the corporations in addition to the Jordanian Securities Commission that seek to enhance confidence in the Jordanian capital market.
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Saad, Noriza Mohd. "Corporate governance compliance versus Syaria’ compliance and its link to firm’s performance in Malaysia." Corporate Ownership and Control 6, no. 4 (2009): 148–58. http://dx.doi.org/10.22495/cocv6i4p14.
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The purpose of this study is to investigate level of compliance by corporate governance (CG) code of best practices and sharia’ principles among public listed companies in main board of Bursa Malaysia and to provide insights view in determining significance association between the corporate governance and sharia’ compliance with firm’s performance. Corporate governance compliance was measured by three board of directors (henceforth; BOD) facets; (i) director’s remuneration, (ii) directors training and (iii) number of family members. Meanwhile, syaria’ compliance is based on six proxies, (i) riba, (ii) gambling, (iii) sale of non halal product, (iv) conventional insurance, (v) entertainment and (vi) stockbroking. The data are gathered from the analysis of companies’ annual report and Thompson DataStream for a sample of 147 companies (for corporate governance compliance) and 36 companies (for syaria’ compliance) over the period of 2003 to 2007. The study employs multiple regression analyses, independent sample T-test and Pearson correlation on the hypotheses tested. The preliminary results reveal most of the company has complied well with the code of best practices and syaria’ principles and there is a significant association to the firm’s performance besides syaria’ compliance firms show a better performance compared to corporate governance compliance firms.
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Krenn, Mario. "Understanding decoupling in response to corporate governance reform pressures." Journal of Financial Regulation and Compliance 23, no. 4 (November 9, 2015): 369–82. http://dx.doi.org/10.1108/jfrc-04-2014-0019.
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Purpose – The purpose of this article is to explain under what circumstances firm-level adoption of codes of good corporate governance will more likely be superficial rather than substantive in nature. The article contains lessons for any agency or country that attempts to implement deep and lasting changes in corporate governance via codes of good corporate governance. Design/methodology/approach – The article reviews the literature on compliance with codes of good corporate governance and develops a conceptual model to explain why some firms that have formally adopted a code of good governance decouple this policy from its actual use. Findings – Decoupling in response to the issuance of codes of good corporate governance will be more attractive to firms and also more sustainable under the following conditions: firms’ compliance costs are relatively high firms’ costs of outright and visible non-compliance are relatively high and outsiders’ compliance monitoring costs are relatively high. Originality/value – The article contributes to the debate on compliance and convergence and provides policymakers with a conceptual framework for assessing the likelihood of successful regulatory change in corporate governance.
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Dembo, Abubakar M. "Corporate Governance Disclosure: The Evidence from Nigeria." Indian-Pacific Journal of Accounting and Finance 2, no. 4 (October 1, 2018): 16–25. http://dx.doi.org/10.52962/ipjaf.2018.2.4.52.
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This study centres on the investigation of the level of compliance with the Nigerian Corporate Governance Code's recommendations by the six selected oil companies from 2004 to 2012. Two stages of compliance level with the Corporate Governance Disclosure Index (CGDI) were developed from 43 specific corporate governance issues based on the Nigerian Code's provisions and analysed. Firstly, the study demonstrates the degree of compliance with the CGDI for the selected companies over the survey period (2004-2012). This allows the testing of the continuous progress of the level of conformity with the Nigerian Code's provisions. Second, it measures the level of compliance with the CGDI that existed over the 2004-2009 and 2010-2012 periods respectively. The motive is to find out whether the level of compliance with corporate governance has increased over the two periods since the creation of the Nigerian Code in late 2003. The findings indicate a remarkable improvement with the compliance with the Nigerian Code over the periods by the selected companies.
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Mnif, Yosra, and Oumaima Znazen. "Corporate governance and compliance with IFRS 7." Managerial Auditing Journal 35, no. 3 (February 22, 2020): 448–74. http://dx.doi.org/10.1108/maj-08-2018-1969.
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Purpose This paper aims to investigate the impact of the characteristics of two corporate governance mechanisms, namely, board of directors and audit committee (hereafter AC), on the level of compliance with International Financial Reporting Standard [hereafter International Financial Reporting Standards (IFRS)] 7 “Financial instruments: Disclosures” (hereafter FID). Design/methodology/approach Using a self-constructed checklist of 128 items, this research measures the compliance with IFRS 7 of 63 Canadian financial institutions listed on the Toronto Stock Exchange during a period of three years (2014-2016). Fixed effect panel regressions have been used to capture the individual effect present in authors’ data. Findings Empirical results show that the mean compliance level with IFRS 7 requirements is about 77 per cent and identify various areas of non-compliance. This level of compliance has a positive linkage with the board size and independence. Similarly, the AC independence and financial accounting expertise are shown to positively affect authors’ dependent variable. Nevertheless, CEO/chairman duality, AC size and meeting frequency are not significantly correlated with the level of compliance with IFRS 7. Originality/value This study expands prior compliance literature in the Canadian setting by examining the determinants of compliance with IFRS mandatory disclosures. Also, and to the best of the authors’ knowledge, this paper is among the first studies that have investigated the effect of corporate governance characteristics (hereafter CGC) on compliance with all IFRS 7 requirements in general.
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Rini, Nova. "The Implementation of Islamic Corporate Governance (ICG) on Sharia Banking in Indonesia." TIJAB (The International Journal of Applied Business) 2, no. 1 (February 21, 2019): 29. http://dx.doi.org/10.20473/tijab.v2.i1.2018.29-38.
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In 2001, a financial institution in Turkey went bankrupt. The financial institution is "Ihlas Finance House". The cause of the bankruptcy of financial institutions according to Islamic finance economists is as a result of weaknesses in the internal and external mechanisms of corporate governance. The purpose of writing this article is to find out how the implementation of Islamic Corporate Governance in Islamic Banking. The method used in this article to answer the research question is a literature study. The results of this study indicate that Islamic banking financial institutions in Indonesia have not fully implemented Islamic Corporate Governance (ICG). The implementation of Islamic Corporate Governance (ICG) that has not been fully implemented is sharia compliance (syari'ah compliance). Sharia compliance in Islamic bank financial products. Conclusion of this article: 1. Implementation of Islamic Corporate Governance (ICG) in Islamic banking is accommodated in the Sharia Banking Law and Bank Indonesia Regulations; 2. Islamic Corporate Government (ICG) can be seen from the establishment of Sharia Supervisory and Sharia Compliance Board in Islamic banking; and 3. Islamic banking in Indonesia does not yet fully implement Islamic Corporate Governance (ICG) in sharia compliance for Islamic financial products.
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Chapple, Larelle, and Thu Phuong Truong. "Continuous disclosure compliance: does corporate governance matter?" Accounting & Finance 55, no. 4 (March 4, 2014): 965–88. http://dx.doi.org/10.1111/acfi.12071.
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Safari, Maryam, Soheila Mirshekary, and Victoria Wise. "Compliance with Corporate Governance Principles: Australian Evidence." Australasian Accounting, Business and Finance Journal 9, no. 4 (2015): 3–19. http://dx.doi.org/10.14453/aabfj.v9i4.2.
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Kniese, Ralf, and Oliver Bülchmann. "IT-Compliance als Teil der Corporate Governance." Wirtschaftsinformatik & Management 7, no. 4 (August 2015): 34–47. http://dx.doi.org/10.1007/s35764-015-0561-6.
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Abraham, Santhosh, Claire Marston, and Edward Jones. "Disclosure by Indian companies following corporate governance reform." Journal of Applied Accounting Research 16, no. 1 (May 11, 2015): 114–37. http://dx.doi.org/10.1108/jaar-05-2012-0042.
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Purpose – The purpose of this paper is to investigate Indian companies’ compliance with the mandatory and voluntary corporate governance disclosure requirements of the Stock Exchange Board of India’s Clause 49. Design/methodology/approach – The authors develop a corporate governance disclosure index and sub-indices based on Clause 49. Annual reports of listed Indian companies are scored according to their disclosures in two periods – pre and post amendments to Clause 49. Findings – Indian companies are highly compliant with corporate governance disclosure requirements of Clause 49. Disclosure increases significantly after amendments to Clause 49 as the penalties for non-compliance increase in severity. Government controlled firms disclose significantly less than privately owned firms. Research limitations/implications – The findings are consistent with bonding theory and the authors note that the presence of an independent regulator (with powers to take action against violators) provides corporate India with additional incentives to comply with corporate governance reform. Practical implications – These findings have important implications for policy makers and regulators as they contribute to the debate on the choice between formal corporate governance regulation versus informal self-regulation. The study also has implications for understanding factors associated with the adoption of disclosure practices in general. Originality/value – This is the first study to examine disclosure compliance in a major developing country pre and post amendments to mandatory corporate governance requirements. Prior evidence indicates a low level of disclosure in India but our results demonstrate an improvement in line with our theoretical predictions that suggests, India is converging towards an Anglo-Saxon model of corporate governance.
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Magang, Tebogo Israel Teddy, and Veronica Goitsemang Magang. "Ubuntu or Botho African Culture and Corporate Governance: A Case for Diversity in Corporate Boards." Business and Management Research 6, no. 4 (December 10, 2017): 64. http://dx.doi.org/10.5430/bmr.v6n4p64.
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This paper aims to provide a theoretical analysis on the relationship between nationality/ethnicity and compliance with international best practice corporate governance principles. Using Hofstede-Gray cultural-accounting dimensions, the paper attempts to demonstrate that the Ubuntu/Botho culture may in some instances promote/not promote compliance with international best practice corporate governance principles because of the value system(s) of this culture. In view of this, the paper further attempts to present a case for diversity in corporate boards and executive management to enhance corporate compliance with best practice corporate governance principles, performance, disclosure etc. in line with the literature and theoretical arguments on diversity.On one hand, this paper provides future research an opportunity to empirically assess the relationship between corporate compliance with international best practice and nationality/ethnicity (Ubuntu/Botho culture). Future research could also investigate whether the Ubuntu/Botho values hold true today in view of the autocratic regimes in the African continent which have perfected a culture of impunity, corruption and bad governance.
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Tshipa, Jonty, and Thabang Mokoaleli-Mokoteli. "The South African code of corporate governance. The relationship between compliance and financial performance: Evidence from South African publicly listed firms." Corporate Ownership and Control 12, no. 2 (2015): 149–69. http://dx.doi.org/10.22495/cocv12i2p12.
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Using both Return On Assets (ROA) and Tobin’s Q as proxies for performance, the study seeks to explore if better governed firms exhibit greater financial performance than poorly governed firms. The paper employs a panel study methodology for a sample of 137 Johannesburg Stock Exchange (JSE) listed firms between 2002 and 2011. The results show that the compliance levels to corporate governance in South Africa (SA) has been improving since 2002 when King II came into force. However, the compliance level in large firms appears to be higher than in small firms. Further, the findings show that the market value of large firms is higher than that of small firms. These results largely support the notion that better governed firms outperforms poorly governed firms in terms of financial performance. Notably, the empirical results indicate that board size, CEO duality and the presence of independent non-executive directors positively impact the performance of a firm, whereas board gender diversity, director share-ownership and frequency of board meetings have no impact on firm performance. This suggests that greater representation of independent non-executive director, a larger board size and the separation of CEO and Chairman should be encouraged to enhance firm performance. Unexpectedly, the presence of internal key board committees, such as remuneration, audit and nomination, negatively impact firm performance. Similar to UK, South Africa has a flexible approach to corporate governance, in which listed firms are required to apply or explain non-conformance to King recommendations. This study has policy implications as it determines whether the flexible corporate governance approach employed by SA improves corporate governance compliance than the mandatory corporate governance approach as employed by countries such as Sri Lanka and US, and whether compliance translates into firm performance. The significant finding of this study is that compliant firms enjoy a higher firm performance as measured by ROA and Tobin’s Q. This implies that compliance to corporate governance code of practice matters, not just as box ticking exercise but as a real step change in the governance of South African listed firms. This paper fulfils an identified need of how compliance to corporate governance influences firm performance in South Africa. The findings have implications to JSE listing rules, policy, investor confidence and academia.
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Sarhan, Ahmed A., and Collins G. Ntim. "Firm- and country-level antecedents of corporate governance compliance and disclosure in MENA countries." Managerial Auditing Journal 33, no. 6/7 (June 4, 2018): 558–85. http://dx.doi.org/10.1108/maj-10-2017-1688.
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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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Mohd Suffian, Mohd Taufik, Siti Marlia Shamsudin, Zuraidah Mohd Sanusi, and Ancella Anitawati Hermawan. "MALAYSIAN CODE OF CORPORATE GOVERNANCE AND TAX COMPLIANCE: EVIDENCE FROM MALAYSIA." Management and Accounting Review (MAR) 16, no. 2 (December 31, 2017): 157. http://dx.doi.org/10.24191/mar.v16i2.665.
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In many countries, most of the government relies heavily on tax revenue to finance the government expenditures. In Malaysia, 78.8% of the source of revenue is from tax revenue and mainly contributed by the corporate income tax. The past literature has documented that good corporate governance could increase the firm's performances as well as tax compliance. Malaysia has published its own code of corporate governance in March 2000 and was revised in 2007, 2011 and 2012. Recently, in April 2016, the Security Commission released the recommended MCCG 2016. Thus, judging from the importance of maintaining tax collection, this paper aims to examine the importance of corporate governance in ensuring tax compliance among public listed companies in Malaysia. This study finds that corporate governance does influence tax compliance and multiple directorships is the most significant in influencing tax compliance.
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Nalukenge, Irene, Stephen Korutaro Nkundabanyanga, and Joseph Mpeera Ntayi. "Corporate governance, ethics, internal controls and compliance with IFRS." Journal of Financial Reporting and Accounting 16, no. 4 (December 3, 2018): 764–86. http://dx.doi.org/10.1108/jfra-08-2017-0064.
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PurposeThe purpose of this paper is to establish the relationship between corporate governance, ethical culture, Internal Controls over Financial Reporting (ICFR) and compliance with International Financial Reporting Standards (IFRS) by microfinance institutions (MFIs).Design/methodology/approachThis is a cross-sectional survey based on a sample of 85 MFIs in Uganda. Hypotheses were tested using partial least squares (PLS) analysis technique. An unweighed IFRS compliance index to capture the level of compliance with IFRS was constructed. Yet to capture corporate governance, ethical culture and ICFR variables, the perceptions of top management of MFIs have been taken into consideration.FindingsCorporate governance, ethical culture and ICFR, each makes a significant contribution to compliance with IFRS. Also both corporate governance and ethical culture are significantly associated with ICFR. However, compliance with IFRS by MFIs is better enhanced by corporate governance and ethical culture through ICFR.Research limitations/implicationsResults support the idea that in terms of agency and virtue ethics theories, the board should support ICFR to minimize egocentric managers and other employees and also inculcate an ethical culture to achieve better compliance with IFRS because corporate governance and ethical culture are associated with sound ICFR which in turn lead to compliance with IFRS.Practical/implicationsBoards of MFIs should encourage investments that improve ICFR. At the same time, regulators should ensure that boards are composed of members with financial expertise, with no conflict of interest and introduce mechanisms that encourage boards to perform their roles.Originality/valueThe study contributes towards a methodological position by showing that the behavioural perspective of corporate governance can be an alternative to the boards’ structural variables in investigating compliance with IFRS. A direct association of ethical culture and compliance with IFRS and an indirect association through ICFR can be envisaged.
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Mukhatob, Akhmad. "PENGARUH STRUKTUR KEUANGAN, STRUKTUR MODAL, PROFITABILITAS, DAN GOOD CORPORATE GOVERNANCE TERHADAP KEPATUHAN PEMENUHAN KEWAJIBAN PERPAJAKAN PERUSAHAAN YANG TERDAFTAR DI BURSA EFEK JAKARTA." Media Riset Akuntansi, Auditing dan Informasi 7, no. 1 (April 12, 2007): 15. http://dx.doi.org/10.25105/mraai.v7i1.926.
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<p class="Style1">This research attempts to validate financial factors such asfinancial structure, capital structure, and pmfitability and application of good corporate governance on influencing tax compliance on entries listed in Jakarta Stock Exchange over the period 2001-2005 The research also aims to show us how those factors influence tax compliance. This research focuses on selected entities researched by International Institute for Corporate Governance (IICG) based on purposive sampling methods. This research provides description of the level of the tax compliance based on determined attributes and indicators of the entities dassffied by entities' sector as well as their maforilyownership. These estimations will describe which classifications are more comply with government regulation especially on tax laws. A Pearson correlation and a multiple regression model is used to estimate the influence offinancial factors and corporate governance on tax compliance byapplying 5% probability error. The results descriptively reveal that entities which concern in mining sector found as the most comply entffies on tax regulation. Based on majonly ownership, public ownership majority found as the worst tax compliance. By using Pearson Correlation analysis, this research showth at financial structure and capital structure influence insignificantly on tax compliance. Contrary, profitability and good corporate governance influence significantly on tax compliance. Furthermore, regression model shows that independent variables' regression coefficient, financial structure and cap talstnldureinsignilcantlydescnbedependentvariable, tax compliance. On the otherhand, independent variables' regression coefficient, good corporate governance and profit- abiliy, significantly describe dependent variable, tax compliance except forfinancial strudure and capital structure.</p><p class="Style1">Keywords: financial structure, capital structure, good corporate governance, profitability tax compliance</p>
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Bajra, Ujkan, and Simon Čadež. "Alternative regulatory policies, compliance and corporate governance quality." Baltic Journal of Management 15, no. 1 (December 4, 2019): 42–60. http://dx.doi.org/10.1108/bjm-11-2018-0373.
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Purpose The purpose of this paper is to examine empirically the evolution of corporate compliance with the eighth Company Law Directive (CLD) over time, the relationship between the degree of compliance with the eighth CLD and corporate governance quality (CGQ), and the relative effect of compliance with the eighth CLD and Sarbanes–Oxley Act (SOX) on CGQ. Design/methodology/approach The hypotheses are tested on a sample of EU firms that are cross listed in the EU and the USA and, thus, subject to both EU and US legislation, using fixed effects panel regression analysis. Findings The authors find that compliance levels with the eighth CLD are increasing over time, yet they vary considerably across constituent provisions. The authors also find that higher compliance is positively related to CGQ, although the effect size is higher for compliance with the eighth CLD than for compliance with SOX. Originality/value This study is original from many perspectives. Unlike most prior studies, which rely on binary variables to represent the constructs appraised in this study, novel and advanced measures of compliance and CGQ are constructed. Next, this study examines EU firms that have received very little research interest compared to US firms. Third, in an innovative approach, the authors appraise the relationship between the degree of compliance and CGQ longitudinally at both the aggregate and the constituent provision levels.
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Azizah, Iva Nur, and Yayu Putri Senjani. "The Role Of Intellectual Capital In Modernizing The Influence Of Good Corporate Governance And Sharia Compliance Of Sharia Banks." AL-ARBAH: Journal of Islamic Finance and Banking 1, no. 1 (October 31, 2019): 47–68. http://dx.doi.org/10.21580/al-arbah.2019.1.1.4156.
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Purpose - Improved financial performance of Islamic banks can be done by improving the system of corporate governance and sharia compliance. In addition to a good corporate governance system and sharia compliance, other factors such as intellectual capital in sharia banks can also improve financial performance. The purpose of this study was to determine the role of intellectual capital in moderating the effect of good corporate governance and sharia compliance on financial performance of sharia banks in 2013-2017.Method - Sampling technique used is purposive sampling. The analytical technique used is panel data regression test with software Eviews 9.Result - It is found that good corporate governance and Islamic Income Ratio have an effect on the financial performance of sharia banks which is poxied by return on assets. Besides that, intellectual capital modernizesgood corporate governance and Islamic Income Ratio on the financial performance of sharia banks, but it does not modernize sharia compliance which is proxied with Profit Sharing Ratio (PSR) and Zakat Performing Ratio (ZPR).Implication - This study uses the data from 14 islamic commercial banks in Indonesia.Originality - The papers look into the role of intellectual capital variables in the relationship of good corporate governance and sharia compliance to the financial performance.
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Khan, Javed, and Shafiq Ur Rehman. "Impact of corporate governance compliance and board attributes on operating liquidity in pre- and post-corporate governance reforms." Corporate Governance: The International Journal of Business in Society 20, no. 7 (October 2, 2020): 1329–47. http://dx.doi.org/10.1108/cg-04-2020-0156.
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Purpose This study aims to investigate the impact of corporate governance compliance, governance reforms and board attributes on operating liquidity of Pakistani listed non-financial firms. The study further tests how these relationships vary in the pre- and post-corporate governance reforms. Design/methodology/approach Fixed-effect regression model is used on 10 years panel data from 2007 to 2016 for a sample of 170 firms listed on the Pakistan Stock Exchange. Two-stage least squares model is used for addressing the endogeneity problem. Findings The findings reveal that governance compliance and governance reforms negatively affect operating liquidity. Among the board attributes, board meetings, directors’ remuneration, board foreign diversity and board gender diversity are significantly related to operating liquidity. Further exploration indicates that internal governance mechanisms are less effective to safeguard shareholders from expropriation during weak external governance. This suggests that strong external governance is inevitable to the effectiveness of internal governance mechanisms. Overall, the study findings support the agency theory. Practical implications The findings provide valid recommendations to policymakers interested in safeguarding the investors to focus on macro-level governance for making the micro-level governance effective. Further, the results provide the executives with an insight to improve the compliance level with the code of corporate governance. Originality/value Unlike prior studies, this study examines the impact of corporate governance compliance and novel board attributes – directors’ attendance at board meetings, number of board committees, directors’ remuneration and board foreign diversity on operating liquidity. Further, the study subdivides its sample period into pre- and post-corporate governance reforms to examine how external governance influences internal governance effectiveness.
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Magang, Tebogo Israel, and Koketso Bafana Kube. "Compliance with Best Practice Governance Principles by State Owned Enterprises in Botswana." International Journal of Business and Management 13, no. 2 (January 14, 2018): 149. http://dx.doi.org/10.5539/ijbm.v13n2p149.
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This paper investigates the extent of compliance by 16 state owned enterprises (SOE)/parastatal corporations in Botswana with international best practice corporate governance principles. In particular the study examines the extent of compliance by SOEs with best practice corporate governance principles as recommended under the King Code of South Africa. The King Code (2002) of Corporate Governance is generally considered as a benchmark for best practice corporate governance not only in the Southern African region but also across the African continent.Using a compliance checklist of 53 provisions from the Code, the study finds that 68.7% of Botswana SOEs have a compliance score of 51% and above while the remaining 31.3% applied less than 50% of the provisions in the King Code checklist. The study also finds that compliance with the Code increased from an average of 57% in 2009 to 60% in 2012. Further the study finds that SOEs tended to comply more with provisions on risk management and less on provisions on integrated sustainability reporting.The results of this study have implications on governance practices of SOEs in Botswana in general. For instance, the results may possibly indicate that, even though governance structures of SOEs in Botswana are crafted through Acts of parliament, on the whole they adhere to international best practice corporate governance principles. The results could also be a signal to local and international investors that Botswana SOEs are not lagging behind in terms of compliance with good governance practices.
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Caron, Michelle I., Aysun Ficici, and Christopher L. Richter. "THE INFLUENCE OF CORRUPTION ON CORPORATE GOVERNANCE STANDARDS: SHARED CHARACTERISTICS OF RAPIDLY DEVELOPING ECONOMIES." EMAJ: Emerging Markets Journal 2, no. 1 (January 29, 2012): 21–37. http://dx.doi.org/10.5195/emaj.2012.17.
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This article evaluates the relationship between the level of corruption in rapidly developing economies and corporate governance processes therein. Previous literature illustrates a strong relationship between corporate governance and corruption and suggests that in countries with high levels of corruption, firms lack efficient corporate governance practices. Similarly, countries with deficient corporate governance practices and low levels of compliance to these standards breed corruption leading to a wide range of transparency dilemmas. This study delves deeper through careful examination regarding the level of compliance with corporate governance standards and the pervasive effects of corruption on the governance processes of firms with specific regard to rapidly developing economies as well as offering comparisons and similarities of shared characteristics among these countries.
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Al-habshan, Khalid Saad. "The Current Rights of Minority Shareholders in Saudi Arabia." International Law Research 6, no. 1 (October 30, 2017): 185. http://dx.doi.org/10.5539/ilr.v6n1p185.
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The preceding articles examined the legal framework of corporate governance in Saudi Arabia and the important elements of the institutional framework for Saudi corporate governance. The discussion in this chapter first focuses on government and government-regulated institutions established to enforce compliance and see that the actions of corporations are in line with corporate governance law. This chapter then examines minority shareholdings interests and rights and investigates minority shareholder protection under the CL. In addition, the board of directors is described, which controls and guides firm operations in compliance with corporate governance standards and regulations.
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Yashchenko, E. A. "THE FEATURES OF INTERNATIONAL CORPORATE MANAGEMENT." Business Strategies, no. 7 (July 28, 2019): 14–20. http://dx.doi.org/10.17747/2311-7184-2019-7-14-20.
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In the article the study of modern features of international corporate governance: the basics of international corporate governance are analyzed, the main models of international corporate governance are presented, as well as the assessment of compliance of corporate governance in Russian companies with international practices and standards, the mechanism of international corporate governance is presented and appropriate conclusions are drawn.
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Tam, On Kit, Monica Guo-Sze Tan, and Helen Wei Hu. "Governance and performance in compliance versus non-compliance Chinese listed companies." Corporate Board role duties and composition 6, no. 3 (2010): 31–41. http://dx.doi.org/10.22495/cbv6i3art3.
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Cases of corporate scandals and the misconduct of publicly listed companies (PLCs) are growing amid rapid economic development in China. Systematic research on governance factors affecting these corporate misconducts and their consequences is however scant. This study compares the key governance characteristics of Chinese PLCs that were found to have contravened regulatory compliance requirements (i.e., “non-compliance” PLCs) to those that were not (i.e., “compliance” PLCs). Based on a comparison between 53 pairs of compliance - and non-compliance-PLCs over the period from 2001 to 2006, our results show that there are significant differences between the two. We found that ownership concentration is higher in compliance firms that also compensate their directors and executives at higher levels. Furthermore, the results suggest that sound governance practices benefit firms socially and financially, and an effective internal monitoring mechanism can further differentiate good companies from bad companies such that the good companies perform better.
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Rizzato, Fabio, Donatella Busso, Alain Devalle, and Alessandro Zerbetto. "Corporate governance system in Italy: Compliance and quality." Corporate Ownership and Control 16, no. 1-1 (2019): 217–33. http://dx.doi.org/10.22495/cocv16i1c1art9.
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The role of banking and insurance as an animated component of any economy has been widely recognized in the evolution of literature (Shrutikeerti & Amlan, 2017). The financial liberalization efforts taken by various developing economies had the central bearing on their financial institutions (Shrutikeerti & Amlan, 2016). The development of insurance and banking sectors play an important role in stimulating financial development and consequently the growth of the economy. Enhancing firm performance predicted through ownership structure, information disclosure, financial transparency and board profile safeguards reputation, yields effective risk management systems and yet helps firms achieve their business objectives. The study employed a sample of 103 financial institutions and adopted a descriptive cross-sectional survey design with a Pearson correlation coefficient. Reliability, validity and exploratory factor analysis with principal components and Cronbach’s alpha as well as hierarchical regression was reasonable for analysis but also directed using the Partial Least Square (PLS) modelling which was helpful in attesting the measurement and structural models appropriate for the performance of financial institutions. Reveal a statistically significant and positive relationship between corporate governance and firm performance. PLS modelling assented the structural and measurement models and recognized that corporate governance is statistically significant and predict firm performance through its different constructs of information disclosure, financial transparency, and ownership structure and board profile. Equally, firm performance demonstrated that management efficiency, earnings quality, asset quality, capital adequacy and liquidity were key dimensions. The study was cross-sectional and a longitudinal study is necessary to understand the dynamics of corporate governance and firm performance over a period of time. The results extend the understanding of the role of corporate governance in promoting firm performance in financial institutions. Additionally, the results add evidence to the growing body of research focusing on interdisciplinary aspects as well as the relationship between corporate governance and firm performance. Overall, there is a significant positive relationship between corporate governance and firm performance.
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Tellidou, Theognosia, Chris Grose, Persefoni Polychronidou, Theodore Kargidis, and Stergios Anatolitis. "Corporate Governance for A.S.E. Listed Firms." Scientific Annals of Economics and Business 63, no. 1 (2016): 97–107. http://dx.doi.org/10.1515/saeb-2016-0107.
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The present paper focuses on the level of compliance and application of corporate governance from the corporations listed in the Athens Stock Exchange (A.S.E.) and attempts to highlight improvements from the adoption of best practices suggested by corporate governance recent trends worldwide. In order for the research to be conducted, a series of qualitative and quantitative variables were used, as derived from the financial statements of 162 public companies. A more extensive analysis regarding the level of compliance with corporate governance was conducted in 25 companies with the highest and 25 corporations with the lowest score, whose classification in these positions was the result of a rating system that was created for this purpose.
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Aisyah, Siti, Widiya N. Rosari, and Tito Sofyan. "Strengthening Corporate Legal Functions in Achieving Good Corporate Governance at PT Bank Bengkulu." Bengkoelen Justice : Jurnal Ilmu Hukum 10, no. 2 (December 10, 2020): 173–84. http://dx.doi.org/10.33369/j_bengkoelenjust.v10i2.13797.
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The increase in company value is reflected in the increase in performance and company image. PT Bank Bengkulu in enhancing the value of the company is done by applying the principles of Good corporate governance supported by the Corporate Legal division. The principles of Good Corporate Governance include: openness, accountability, responsibility, independence and fairness. Corporate Legal functions to regulate matters relating to the legal field which include: Organization and authority, advice or provision of legal assistance andhandling legal cases, risk management and mitigation, documentation, administration and reporting. Previously, Corporate Legal was part of the Compliance Division. However, since the transfer of Corporate Legal to Corporate Secretary, there has been overlapping of authority, duties and functions. The problem in this research is how to strengthen Corporate Legal in realizing Good Corporate Governance and what are the factors that inhibit the strengthening of Corporate Legal function in realizing Good Corporate Governance at PT Bank Bengkulu. This type of research is empirical research, data sources obtained from interviews, documents, as well as literature and legislation relevant to research. The results of the study are the strengthening of Corporate Legal at PT Bank Bengkulu conducted by organizational restructuring based on Directors Decree No.17.1 / HP.00.01 / D.1 / 2019/2019 regarding changes in the organizational structure of the transfer of Corporate Legal to Corporate Secretary which was formerly Corporate Legal part of Compliance division, thistransfer makes Corporate Legal have a wider authority that is able to provide legal oponi which includes external banks where previously in compliance with Compliance, Corporate Legal can only provide legal opinions that cover only the internal parts of the bank. The factor that inhibits the strengthening of the function of Corporate Legal in realizing good corporate governance at PT Bank Bengkulu is the overlapping authority between the Compliance division and the Corporate Secretary, in which there are no restrictions on what should be reviewed by the Compliance Division and Corporate Secretary, then in policytaken by the Board of Directors cannot be immediately decided by Corporate Legal so the problem becomes slow to be resolved immediately.
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Haldar, Arunima, and S. V. D. Nageswara Rao. "An empirical examination of the impact of corporate governance disclosure on financial performance." Corporate Ownership and Control 12, no. 3 (2015): 468–73. http://dx.doi.org/10.22495/cocv12i3c4p7.
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The Indian corporate governance relationships have evolved over time as a result of both formal and informal stakeholder interactions, with changes to Clause 49 triggering a further evolutionary move in Indian corporate governance towards global benchmarks. This study seeks to gain insights into how the regulatory changes impacted corporate governance (CG) practices in India by measuring their effect on performance. We construct a "CG Compliance Index" using three important governance mechanisms for the year 2008. The analysis reveals that majority companies have complied by the regulations depicted by high CG compliance score and have a significant positive relationship between CG Compliance Index and the market measure of financial performance of companies
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Aluchna, Maria, and Emilia Tomczyk. "Compliance with Corporate Governance Best Practice. The Perspective of Ownership Structure." Journal of Management and Financial Sciences, no. 32 (July 27, 2019): 9–26. http://dx.doi.org/10.33119/jmfs.2018.32.1.
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The article examines compliance with corporate governance best practice in the post transition economy addressing the heterogeneity of interests of different shareholders. On the basis of the agency theory, we suggest that in the concentrated ownership environment the principal-principal conflict results in lower compliance with the corporate governance code. More specifically, since compliance with best practice requires introducing independent directors and in that sense shifts control from shareholders to the board, we hypothesize that companies characterized by concentrated ownership and the dominant position of the founder/individual investor are reluctant to comply with board governance best practice. To evaluate our hypotheses, we explore compliance with board governance best practice with respect to the presence of independent directors, formation of an audit committee and other specialized board committees (remuneration, risk, strategy). We test the link between the compliance with the code and the ownership structure. Our analysis supports the principal-principalconflict argument and shows that companies with concentrated ownership and founder control do not comply with the board governance best practice. We believe this article contributes to the existing literature twofold. Firstly, we identify the patterns of corporate governance best practice implementation in the post socialist, post transition, emerging economy and depict the dynamics of the compliance with the code guidelines. Secondly, we show that the principal-principal conflict addresses the compliance policy of listed companies and results in various approaches to corporate governance conformity.
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Hossain, Mohammed. "The extent of compliance of corporate governance disclosure: evidence from Indian banking companies." Corporate Ownership and Control 5, no. 4 (2008): 440–51. http://dx.doi.org/10.22495/cocv5i4c4p3.
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The study examines the compliance of mandatory corporate governance disclosure of the Indian banking companies. The Securities and Exchange Board of India (SEBI) made it mandatory for all listed firms to provide a Corporate Governance Report in a separate section in the Annual Report. The paper has empirically identified the level of compliance of the mandatory disclosure in the corporate governance reporting under the suggested list provided by SEBI and also assessed whether the corporate attributes affect the levels of corporate governance disclosure. The study covered all the 38 banks in India that are listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange(NSE). We have identified 46 items of information as mandatory and for inclusion in the disclosure index, and run a linear regression model to examine the relationship between disclosure index and various corporate attributes. The findings revealed that a high level of compliance existed in the Indian banks and that the variables of size, ownership, board composition, and profitability, have significant impact in the corporate governance disclosure
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Tanjung, Miranda. "A cross-firm analysis of corporate governance compliance and performance in Indonesia." Managerial Auditing Journal 35, no. 5 (February 28, 2020): 621–43. http://dx.doi.org/10.1108/maj-06-2019-2328.
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Purpose The study aims to construct a cross-firm corporate governance index to predict firm performance. The index consists of 15 governance elements from a large sample of the Indonesian firms covering the period from 2003 to 2013. Design/methodology/approach This study presents robust results as the findings are tested by applying the generalized method of moments (GMM) estimator to eliminate endogeneity problems and unobservable heterogeneity posed by the relationship between performance and firm-level governance practices. Findings The results indicate that the corporate governance index is associated with enhanced corporate financial performance. Likewise, the findings reported under the pooled ordinary least squares and GMM also indicate corporate governance sub-indexes (elements), which have significant effects on performance: whistleblower mechanism, audit quality, board of director size and blockholders. Research limitations/implications In the emerging market context, this study supports the notion that active and self-regulated governance practices are appreciated by the market and, in the end, can have a positive impact on financial performance. The analysis adds to the empirical literature by providing insights into how governance provisions are being actively implemented in the micro level. With regard to weak governance practices, this study is consistent with previous studies, according to which, firms have the opportunity to use corporate governance as a way of differentiating themselves from other players in countries with poorly regulated investor protection and institutional settings. Originality/value This study makes a positive contribution, as it looks at the impact of Indonesia’s corporate governance compliance on the basis of a set of 15 unique governance provisions, including the findings of the positive influence of corporate governance in family business.
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Mnif, Yosra, and Marwa Tahari. "Corporate governance and compliance with AAOIFI governance standards by Islamic banks." International Journal of Islamic and Middle Eastern Finance and Management 13, no. 5 (August 31, 2020): 891–918. http://dx.doi.org/10.1108/imefm-03-2019-0123.
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Purpose This study aims to examine the effect of the main corporate governance characteristics on compliance with accounting and auditing organisation for Islamic financial institutions’ (AAOIFI) governance standards’ (GSs) disclosure requirements by Islamic banks (IB) that adopt AAOIFIs’ standards in Bahrain, Qatar, Jordan, Oman, Syria, Sudan, Palestine and Yemen. Design/methodology/approach The sample consists of 486 bank-year observations from 2009 to 2017. Findings The findings reveal that compliance with AAOIFIs’ GSs’ disclosure requirements is positively influenced by the audit committee (AC) independence, AC’s accounting and financial expertise and industry expertise, auditor industry specialisation, IB’s size and IB’s listing status. On the other hand, it is negatively influenced by the ownership concentration. Research limitations/implications This study has only examined compliance with AAOIFI’s GSs’ disclosure requirements and has focussed on one major sector of the Islamic financial institutions (which is IB). Practical implications The findings are useful for various groups of preparers and users of IBs’ annual reports such as academics and researchers, accountants, management of IBs and some organisations. Originality/value While the study of the AAOIFIs’ standards has grown contemporary with considerable contributions from scholars, however, the majority of these studies are descriptive in nature. Indeed, the existing literature that has explored the determinants of compliance with AAOIFI’s standards is in the early research stage. To the best of the knowledge, there is a paucity of empirical research testing this issue.
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Tarn, J. Michael, Heath Raymond, Muhammad Razi, and Bernard T. Han. "Exploring information security compliance in corporate IT governance." Human Systems Management 28, no. 3 (2009): 131–40. http://dx.doi.org/10.3233/hsm-2009-0698.
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Hoffman, W. Michael, John D. Neill, and O. Scott Stovall. "Mutual Fund Compliance Officer Independence and Corporate Governance." Corporate Governance: An International Review 16, no. 1 (January 2008): 52–60. http://dx.doi.org/10.1111/j.1467-8683.2008.00659.x.
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Outa, Erick Rading, and Nelson M. Waweru. "Corporate governance guidelines compliance and firm financial performance." Managerial Auditing Journal 31, no. 8/9 (September 5, 2016): 891–914. http://dx.doi.org/10.1108/maj-12-2015-1291.
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Purpose This paper aims to examine the impact of compliance with corporate governance (CG) guidelines during the period 2002-2014 on firm financial performance and firm value of Kenyan-listed companies. Design/methodology/approach Using panel data of 520-firm year’s observations between 2005 and 2014, the authors test the hypothesis that compliance with CG guidelines issued in 2002 by Capital Markets Authority (CMA) improved firm financial performance and firm value. Findings Compliance with CG Index which is an aggregate of all the CG guidelines is positively and significantly related to firm performance and firm value. Board evaluation is also positively and significantly related to firm performance. The findings suggest that CG guidelines are associated with firm financial performance and firm value. Originality/value The authors provide evidence on the relationship between CG practices and firm financial performance and firm value in Kenya. Second, the authors provide evidence on board evaluation which has not been tested before in a “comply or explain” environment. Finally, they evaluate how CMA 2002 CG guidelines steered firm financial performance and firm value over its life cycle from 2002 to 2014. These results are important to CMA and other CG regulators and boards in their efforts to improve CG practices in the region.
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Graf, Andrea, and Markus Stiglbauer. "Measuring corporate governance in Germany: An integrated framework on compliance and transparency & disclosure." Corporate Ownership and Control 6, no. 2 (2008): 456–66. http://dx.doi.org/10.22495/cocv6i2c4p4.
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Compliance as well as transparency and voluntary corporate disclosure are essential within the concept of ´good` corporate governance. Consequently, there is an increasing demand for methods enabling investors to compare companies by means of country-specific criteria. However, measures in Germany do not provide a broad spectrum of criteria for evaluating corporate compliance and governance transparency & disclosure. Our framework covers all rules of the German Corporate Governance Code as well as additional criteria, enabling investors to analyse how companies are managed. Furthermore, we raise quality criteria of social sciences to confirm our findings.
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Kasim, Nawal, Nur Ain Binti Hashim, and Syed Ahmed Salman. "Conceptual Relationship between Corporate Governance and Audit Quality in Shari’ah Compliant Companies Listed on Bursa Malaysia." Modern Applied Science 10, no. 7 (April 28, 2016): 106. http://dx.doi.org/10.5539/mas.v10n7p106.
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The issue of corporate governance has been a focus among researchers after the 1997/98 financial crisis. Many countries have implemented codes and guidelines of corporate governance to promote effective boards overseeing the operations of companies. In the case of Shari’ah compliant companies, boards still play a significant role and are responsible to ensure Shari’ah compliance. This paper reemphasises the conceptual relation between corporate governance mechanisms and audit quality. The corporate governance mechanisms are measured by board size, CEO duality, independent directors, financial experts on the audit committee, and the existence of an internal Shari’ah<em> </em>committee. There are numerous methods to measure audit quality including using audit fee and auditor reputation as proxies. The findings are mixed. This means that there is no consistent relationship between good corporate governance mechanisms and audit quality.
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Chang, Allan. "Analysis on corporate governance compliance standards in New Zealand – a qualitative study on disclosures using content analysis and interviews." Journal of Financial Regulation and Compliance 26, no. 4 (November 12, 2018): 505–25. http://dx.doi.org/10.1108/jfrc-12-2017-0115.
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Purpose This paper aims to provide more insights into the standard of corporate governance in New Zealand. The study intends to uncover how a small country with a well-developed economy with a good system of law and order, good institutional set up and law enforcements and implements the principles contained in the FMA’s corporate governance guidelines in practice. Design/methodology/approach The study is a mixed study one where it employs case study content analysis and augmented by conducting interviews. Large companies are selected to ascertain the level of compliance of NZ companies towards their obligations to report on corporate governance practices within the organisation. At the first stage, the study uses content analysis and looks at contents of company annual reports and publications on websites to determine whether they had disclosed as intended by New Zealand’s corporate governance guidelines. Findings The study found that a high compliance was recorded in areas such as board composition and board committees and low compliance recorded in areas involving costly implementation or when the issue is sensitive such as disclosures regarding remuneration details of directors and what non-audit work was undertaken and whether it compromises auditor independence. Being a small country, NZ has performed well in attracting foreign investment due to its strong tradition of law enforcement and respect for regulations. With greater awareness of the importance of corporate governance to investors, companies may see the benefit of greater compliance with the corporate governance guidelines. This is in line with the stakeholder theory and resource dependency theory where companies will voluntarily disclose information on corporate governance, social and environmental performance over and above mandatory requirements to appease and manage their stakeholders. Research limitations/implications The sample size of this study represents 3 per cent of total listed companies in New Zealand, but the sample is approximately 10 per cent of local NZ listed companies (i.e. not dual listed in Australia). There are 36 large companies in the New Zealand stock market with market capitalisation of 1 billion and above. In addition, the companies selected for this study are well-known in New Zealand, and it is acknowledged that this can be a source of bias in my analysis. Practical implications As was revealed during the interviews with company’s senior officials, Australian companies have achieved a higher level of compliance with the code of corporate governance. In this regard, New Zealand will have to step up and follow Australia’s lead to ensure greater compliance with the New Zealand corporate governance principles and guidelines. It would be in the best interest of the company’s stakeholders if full compliance is achieved. Originality/value Studies on the level of compliance by New Zealand companies on their obligations to meet the full extent of disclosures as stipulated by the New Zealand corporate governance guidelines are rare. This study aims to ascertain the standard of corporate governance reporting in New Zealand and the company’s seriousness to comply or attempt to meet the requirements in the seven stipulated principles.
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Shashkova, A. V. "The Significance of the 2014 Corporate Governance Code of the Bank of Russia." MGIMO Review of International Relations, no. 4(37) (August 28, 2014): 253–63. http://dx.doi.org/10.24833/2071-8160-2014-4-37-253-263.
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The present article focuses on corporate governance in Russia, as well as on the approval in 2014 of the Code of Corporate Governance by the Bank of Russia and by the Russian Government. The article also provides the concept of the famous foreign term Compliance. Compliance is a system based on binding rules of conduct contained in the regulations which are mandatory for the company. In order to fulfill best practices and implement local acts on the most important issues for the company, many foreign companies as well as large Russian companies have formed special Compliance departments. Taking into account such international experience and international corporate governance principles the Bank of Russia has elaborated the Corporate Governance Code, approved by the Russian Government in February 2014. Corporate Governance Code regulates a number of the most important issues of corporate governance such as shareholders'rights and fair treatment of shareholders; Board of Directors; Corporate Secretary of the Company; system of remuneration of members of the Board of Directors, executive bodies and other key executives of the company; system of risk management and internal control; disclosure of information about the company, the information policy of the company; major corporate actions. The most important issue which is analyzed by the author is the problem of the composition of the Board of Directors: the presence of independent directors in the company. According to the author the new Corporate Governance Code reflects the latest trends as well as the current situation with corporate governance in Russia today.
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Boolaky, Pran Krishansing. "Corporate governance in the financial services sector of small island economies: A case study of Mauritius." Corporate Ownership and Control 4, no. 3 (2007): 266–78. http://dx.doi.org/10.22495/cocv4i3c2p4.
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This study investigates the practices of corporate governance in the financial services sector of small island economies with special reference to banks and insurance companies in Mauritius with a view to assess the level of compliance. The financial sector is today an important economic pillar on which the government is relying given the imminent recession in the sugar industry. In this respect financial institutions play a key role because they are the core set of the financial sector. It is therefore important for people to have confidence in both banks and insurance companies of their country. This is possible by ensuring compliance with good governance. In Mauritius, the Central Bank has issued its guidelines on good corporate governance for banks and this guide is made in line with the Corporate Governance Code issued by the National Committee on Corporate Governance. Banks are also required to comply with the codes as per the Banking Act 2004 and the Financial Reporting Act 2004. In a similar vein insurance companies should comply with the National Code on Corporate Governance and relevant laws related to good governance of insurance business, such as the Insurance Act 2005, the Financial Services Commission guidelines on Corporate Governance and the Financial Services Development Act 2002. In addition insurance companies should also comply with the Companies Act 2001 and the Financial Reporting Act 2004. This paper initially reports on the practice of corporate governance in the financial services sector of small island economies by drawing data from the Financial Sector Assessment Programme of the International Monetary Fund. A content analysis of the annual reports of companies in the sector is used to assess the level of compliance to corporate governance code in Mauritius and concludes that compliance rate is above 70% as regards board’s composition, audit committee, disclosure of policies and practices. This study reports that there are few cases of noncompliance with the National Code but good governance is necessary in the financial services sector to inspire stakeholders confidence.
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Handayani, Yenny Dwi, and Ewing Yuvisa Ibrani. "Corporate Governance Application, Audit Quality and Audit Report Lag: The Moderating Role of Law Compliance." International Journal of Financial Research 10, no. 4 (May 6, 2019): 164. http://dx.doi.org/10.5430/ijfr.v10n4p164.
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This study aims to examine the effect of corporate governance application and audit quality on audit report lag. Special attention is paid to investigate the moderating role of law compliance in the relationships. 180 manufacturing companies are observed during the three years of observation (2013-2015). Data are analyzed using moderated regression analysis (MRA). The results show that corporate governance application and audit quality have no effect on audit report lag. While law compliance moderates the relationship between corporate governance application and audit report lag.
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Elgharbawy, Adel, and Magdy Abdel-Kader. "Does compliance with corporate governance code hinder corporate entrepreneurship? Evidence from the UK." Corporate Governance 16, no. 4 (August 1, 2016): 765–84. http://dx.doi.org/10.1108/cg-12-2015-0169.
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Purpose This paper aims to investigate the possible trade-off between accountability and enterprise in the context of comply or explain governance. The issue was addressed through examining the effect of compliance with the corporate governance code (CGC) on corporate entrepreneurship (CE) and organisational performance. Design/methodology/approach Based on cross-sectional survey and content analysis of annual reports, the level of CE and compliance with the CGC were measured in the large and medium-listed companies in the UK during 2010. Partial least squares structural equation modelling (PLS-SEM) was used for data analysis. Findings The results suggest no conflict between compliance with the CGC and CE in the UK, which can be attributed to the flexibility of the “comply or explain” approach. This implies that no trade-off between accountability and enterprise in the context of comply or explain governance. Practical implications The study provides evidence in support of the regulatory governance framework in the UK and the comply or explain approach at large. This evidence contributes to the debate on the rules-based or principles-based governance, which may affect future CG regulations. It can also guide the directors to achieve the balance between their conformance and performance roles. Originality/value The study bridges the gap between CG and CE disciplines through developing a theoretical model that integrate contingency and agency theories lenses. Adopting a holistic approach provides insights into the relationships between CG and CE, rather than investigating the effect of each of these practices separately on organisational performance.
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Zulfikar, Rudi, Niki Lukviarman, Djoko Suhardjanto, Tubagus Ismail, Kurniasih Dwi Astuti, and Meutia Meutia. "Corporate Governance Compliance in Banking Industry: The Role of the Board." Journal of Open Innovation: Technology, Market, and Complexity 6, no. 4 (November 10, 2020): 137. http://dx.doi.org/10.3390/joitmc6040137.
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This study seeks to supply empirical evidence for how board characteristics influence corporate governance compliance in the Indonesian banking industry. Corporate governance compliance level represents a company’s actions to fulfill regulatory obligations that aim to protect the public from potential investment losses in the banking industry. This research was conducted by analyzing the influence of board characteristics, specifically how a board of commissioners’ institutions and their instruments affect corporate governance compliance. The entire banking industry, which was listed on the Indonesia Stock Exchange from 2010 to 2015, was employed as the population for this research. Purposive sampling was used as the sampling technique, resulting in 195 observations. To test this study’s hypotheses, multiple regression was applied as the data analysis method. The results revealed that the size of the board of commissioners, the proportion of independent commissioners, the experience of commissioners, and the size of the audit committee were factors that encouraged management in the banking industry to improve their firms’ corporate governance compliance. This indicates that monitoring from the board acts as an effective mechanism for reducing information asymmetry. This research also proves that open innovation following regulations can increase compliance with laws.
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Kleiner, V. "Corporate Governance and Economic Efficiency of Companies." Voprosy Ekonomiki, no. 10 (October 20, 2008): 32–48. http://dx.doi.org/10.32609/0042-8736-2008-10-32-48.
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The article shows that transformation from static to dynamic analysis of corporate governance problems requires the enhancement of "corporate governance" definition by including not only relationships between the company and shareholders, but also interactions with numerous other market participants. The impact of corporate governance level on economic efficiency of companies is investigated, three core corporate governance principles are proposed. Compliance with them ensures the realization of well known corporate governance directives. The conclusions are illustrated by case studies of Russian companies.
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Steger, Thomas, and Markus Stiglbauer. "The German corporate governance code and its adoption by listed SMEs – just another ‘Procrustes bed’?" Problems and Perspectives in Management 14, no. 3 (September 27, 2016): 494–503. http://dx.doi.org/10.21511/ppm.14(3-2).2016.05.
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The discussion of companies’ compliance with corporate governance standards and codes has widely neglected the situation of small and medium-sized enterprises (SMEs). Accordingly, the authors examine a sample of 151 SMEs listed on the Frankfurt Stock Exchange in 2006 (before the financial crisis) and 2012 (after the financial crisis) and, thus, required to declare whether they comply with the recommendations of the German Corporate Governance Code or not. While code compliance seems to be quite homogenous comparing different branches, the authors found that company size has a positive impact on code compliance. With regard to a remarkably high number of recommendations a lot of companies do not comply to, company size might be a major problem, why the existing GCGC does not fit very well to the situation of SMEs. This is why, most remarkably, code compliance does not exert any significant influence on either market reaction or on operating performance of SMEs. Keywords: corporate governance, SMEs, Germany, firm performance. JEL Classification: G3, G34, M10, L25
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Stiglbauer, Markus, and Patrick Velte. "Impact of soft law regulation by corporate governance codes on firm valuation: the case of Germany." Corporate Governance 14, no. 3 (May 27, 2014): 395–406. http://dx.doi.org/10.1108/cg-05-2012-0043.
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Purpose – This paper aims to provide insight whether disclosed compliance with the German Corporate Governance Code (GCGC) leads to higher valuation on the German stock market. Design/methodology/approach – Based on agency theory, stakeholder theory and institutional theory, the authors conduct a meta-analysis and evaluate the value relevance of the compliance with the GCGC. Findings – The research finds that compliance with the GCGC is mainly not a value-relevant factor for German companies listed at the Frankfurt Stock Exchange. Research limitations/implications – The research considered is not fully comparable with regard to observation date, full integration of the GCGC rules and company selection/sample size. Future research is encouraged to research the valuation effects of compliance with the GCGC for a longer time horizon, the use of uniform performance measures and the integration of all GCGC rules. Practical implications – Compliance with the GCGC has not proven to be a value-driver for German listed companies. The authors recommend companies to search for opportunities to make their corporate governance more comprehensive by expanding their corporate governance reporting and thus providing deeper insights on how their processes of management and control work. Originality/value – The paper is the first investigation integrating the results of ten years of “code compliance – market valuation” research in Germany. We detect reasons why soft law regulation by corporate governance codes did not function on the German stock market. We additionally address behavioral aspects why investors do not give enough relevance to companies’ corporate governance statements so far.