Accounting & Corporate Governance

China started its economic reform in 1978. By 1995, China had become the world's third largest economic powerhouse after the United States and Japan, with a total GDP of $720 billion. The development of the securities market and a sound corporate governance system plays an important role in the progress of China's economic reform. Since 1992, China has made substantial progress in seven areas of corporate governance: (1) rights of shareholders and rules for shareholders' meetings, (2) duties and responsibilities of directors and independence of board of directors, (3) fiduciary duties, (4) performance assessments and incentive and disciplinary systems, (5) information disclosure and transparency, (6) insider information and related party transactions, and (7) the role of the auditor. This paper describes the recent developments in China's corporate governance. In particular, it addresses nine key corporate governance problems in China: (1) highly concentrated ownership structure, (2) insider control of corporate affairs, (3) weak protection of shareholders' rights, (4) frequent insider trading, self dealings and collusions in market manipulations, (5) falsification and fabrication of financial data, (6) weak independent board of directors and specialized committees, (7) weak supervisory board, (8) weak auditing profession, and (9) weak external governance structure. This paper also provides eleven suggested solutions to improve the quality of corporate governance in China: (1) gradually floating the un-tradable shares, (2) CEO certification, corporate governance guidelines, and code of business conduct and ethics, (3) improving disclosure and supervision of insider and related party transactions, (4) accelerating the reform of board of directors, (5) clearly defining the functions of the supervisory board, (6) improving internal controls, audit quality and independence, (7) requiring an independent audit committee and an internal audit function, (8) strengthening legal liabilities and enforcement, (9) strengthening shareholder rights, (10) developing a long-term focus incentive compensation system for directors and executives, and (11) improving the quality of the external governance structure. China is a giant country with a population of 1.2 billion people. In 1978, China's "paramount leader" Deng Xiaoping started a series of reforms in its economic system in order to stimulate economic growth and to raise the Chinese people's standard of living. By 1995, China had become the world's third largest economic powerhouse after the United States and Japan, with a total GDP of $720 billion. China's securities market

Blockchain technology can influence various aspects of the business even if empirical studies are still lacking to estimate the effective application of technology on corporate governance. Beyond its scientific-practical trendiness, blockchain should not be a matter of “if”, but a matter of “how” organizations are willing and able to integrate blockchain practices into their vision of the future, with ways to manage shareholders issues down to regular operations reaching and managing different levels of activism. It seems almost paradoxical that still not all companies subscribe to the “next best practice”. Therefore, this paper aims to answer the following research question: What is the expected impact of blockchain technology on corporate governance? The purpose of this study is to provide a starting point for research that can be used for further examination of these aspects

The purpose of this study is to see if operational auditing, internal control, marketing strategy implementation, and sales accounting information systems have an impact on sales effectiveness. The research method employed in this study is quantitative. The data was collected using questionnaires, and the analysis method used was multiple linear regression. According to the findings of the study, operational auditing and accounting information systems have a significant impact on sales effectiveness. Internal control has no effect on the effectiveness of sales. Furthermore, the implementation of marketing strategies has an impact on sales effectiveness, but not significantly.

The executives of any business organization are vested with the duty of piloting the vision and strategies of the business. In return, the executives are compensated for their work in achieving corporate goals and vision. Hence, this study examined the effect of corporate performance on executive compensation of listed insurance companies in Nigeria. In achieving this objective, the ex post facto research design was employed and secondary data were sourced from the annual reports of ten insurance companies out of the 23 listed on the Nigerian Exchange Group between 2011 and 2020. The panel linear regression technique was adopted and data were analysed using E-views to determine the effect of the independent variables (return on assets, return on equity, earnings per share) on the dependent variable (executive compensation). Findings from the study indicate that return on assets and earnings per share have no significant effect on executive compensation of listed insurance companies in Nigeria. However, it was discovered that return on equity has a significant effect on executive compensation of listed insurance companies in Nigeria. The model was also discovered to be positive and significant at 5% level of significance. Therefore, it is recommended that the compensation packages of the executive of insurance firms should be based on performance to align compensation with company success. Performance-based compensation will inspire

PT Kemang Food utilizes the selling price method and the average per unit method for allocating joint production costs to its main products and by-products. The company produces sausages, burgers, delicatessen, meatballs, and a by-product consisting of beef and MDM (Mechanically Deboned Meat) from chicken esophagus, breastbone, and thigh. The study reveals that, according to the profit achievement policy and the targeted cost calculation, the selling price method is more profitable than the average per unit method. The profit obtained through the selling price method exceeds that of the average per unit method. Despite this, both methods experienced a decline in profits in 2020 due to the COVID-19 pandemic, as evidenced by trend analysis. Managerial implications stress the significance of accurate cost determination for optimizing company profits, especially during challenging times such as the pandemic. This underscores the need for adaptability in cost allocation strategies to maintain financial health and achieve optimal production costs in the face of external disruptions. The findings emphasize the importance of strategic decision-making in managing joint production costs for sustainable profitability.

This paper examines the executive pay-performance relationship among listed deposit money banks in Nigeria. It also investigates other possible determinants of executive pay, as well as factors that moderate the pay-performance relationship. Results from the dynamic panel GMM regression indicate that excessive pay does not match performance, as pay rises with declining performance. Other factors that explain the executive pay of the sampled banks include board size, board independence and CEO ownership. Findings further reveal that the pay-performance relationship is negatively moderated by board independence, as executive pay is found to rise with increase in performance when there are more independent directors on the board. The study findings provide support for the managerial power hypothesis. However, no evidence is found in support of the agency theory.

Although the consolidation and regulatory reforms were initiated in the Nigerian banking industry in 2004, the expected improvement in the operational performance and efficiency in the banking system has not been reflected in the overall health of the economy. It is in the light of the above, that this research examined the relationships between corporate governance mechanisms and performance of banks in Nigeria. This study used secondary data derived from publications of Central Bank of Nigeria (CBN), Nigeria Deposit Insurance Corporation (NDIC) and Security and Exchange Commission (SEC) from 2006 to 2014. The Pearson Correlation was used to assess the relationships between the corporate governance variables and banks' performance. Statistical Package for Social Sciences (SPSS) was used for the analysis. The study observed that a significant negative relationship exists between board size, board composition and the financial performance of banks, while a positive and significant relationship was observed between directors' equity holding and banks' performance. The study concludes that, the directors' equity holding is paramount in boosting the performance of banks in Nigeria. Thus, this study recommends that the regulatory authorities should make sure that all directors own a reasonable amount of equity in the banks they oversee as this will move them to do their best to enhance the performance of these banks.

Although the consolidation and regulatory reforms were initiated in the Nigerian banking industry in 2004, the expected improvement in the operational performance and efficiency in the banking system has not been reflected in the overall health of the economy. It is in the light of the above, that this research examined the relationships between corporate governance mechanisms and performance of banks in Nigeria. This study used secondary data derived from publications of Central Bank of Nigeria (CBN), Nigeria Deposit Insurance Corporation (NDIC) and Security and Exchange Commission (SEC) from 2006 to 2014. The Pearson Correlation was used to assess the relationships between the corporate governance variables and banks' performance. Statistical Package for Social Sciences (SPSS) was used for the analysis. The study observed that a significant negative relationship exists between board size, board composition and the financial performance of banks, while a positive and significant relationship was observed between directors' equity holding and banks' performance. The study concludes that, the directors' equity holding is paramount in boosting the performance of banks in Nigeria. Thus, this study recommends that the regulatory authorities should make sure that all directors own a reasonable amount of equity in the banks they oversee as this will move them to do their best to enhance the performance of these banks.

Research related to the relationship between boards of directors and corporate financial performance has received increasing prominence within the field of corporate governance yet findings are frequently ambiguous and often contradictory. We believe the reflection of uncertainty emanating from the literature is a result of the limited number of performance measurement points (MPs) used in the investigations. In this paper we provide a brief historical overview of corporate boards, shareholder concerns, and related academic research. We identify seven board characteristics that consistently appear in the literature and propose a set of performance measurement points that may clarify the relationship between these and corporate financial performance.

The purpose of this paper was to examine the relationship between board composition and financial distress of listed firms in Kenya. The study specifically sought to determine the effect of board size, board independence, board tenure, multiple directorship and financial expertise on financial distress. The research design used in this study was exploratory design. The study employed panel regression analysis and simultaneously used pooled regression and random effects on sample size of 39 listed firms in Kenya during the period of 2004-2013. The study found that board independence is negatively and significantly related with financial distress AŸ=-0.044; p

The financial performance of a hospital largely determines the service quality of a hospital. The hospital's financial performance requires a hospital management control system consisting of structures and processes. This study aims to determine whether the Management Control Structure and Management Control Process influence the financial performance of Hospitals in the Municipality of Bogor and Bogor Regency for the 2016 period. This type of research is explanatory research; the data sources are primary and secondary data. Primary data collection techniques using questionnaires and secondary data collection with documentation. This study used a population of 16 hospitals in the Municipality and Bogor Regency. The analysis used is hypothesis testing, with the data analysis method used is Path Analysis. The results showed that the Management Control Structure and Management Process had a positive direct effect, either partially or simultaneously, on the Financial Performance of ...

This study investigates how six different measures of firm performance affect executive compensation in Nigerian insurance sector (2011-2016). The Im, Pesaran and Shin (IPS) and Kao Residual tests were employed to ascertain stationarity and cointegration of the variables. Mixed stationary and no cointegration were observed. The results indicate that profitability variables (return on asset, return on equity (ROE) and net profit margin) are insignificant to executive compensation while efficiency variables are significant to executive compensation. That is profitability variables does not have significant effect on executive compensation while corporate performance measured by efficiency variables have effect on executive compensation. It is recommended that the board should focus on efficiency measures in setting executive compensation levels as these ultimately drive profitability and corporate performance in the insurance sector. This study make a meaningful contribution to the literature as very little work has been done in this area.

We analyse the mutual relationship between CEO remuneration and a company's performance using a functionalist paradigm and agency theory assumptions. We use a sample of large European firms for the period from 2009 to 2013. While compensation and firm performance are endogenous we use a 2-SLS method. Companies tie bonuses to ROA and bonuses enhances corporate accounting performance.

While author OCO wrote the methodology and did empirical analysis of the study; author OOB gave a befitting and professional expertise to straighten the ideas in the background to the study and the literature review. Both authors read and approved the final manuscript.

The impact of executive compensation on firms' profitability was empirically examined in this study for the listed companies in Nigeria using a period of ten years ranging from 2004 to 2013. Specifically, the study investigated the impact of directors' cash incentives, non-cash incentives and bonus issue of share on earnings per share of the selected companies. The study relied on the secondary data extracted from the audited financial statement of a sample of 70 companies purposefully selected from the 198 listed companies in Nigeria. Both descriptive and inferential statistics were carried out. The results revealed that a significant positive relationship exists between the directors' cash incentives, bonus issue of share and earnings per share. The relationship between non cash incentive and earnings per share was insignificant. It can therefore be recommended to the management that weight should be assigned to the variables in that order. The policy makers also need ...

The increasing failure of banks has made it important to seek for ways to enhance its value in order to attract investors and potential investors. To make this reality, scholars have argued from various quarters that the people who manage the banks must be adequately compensated if the desired value needs to be achieved. Therefore, the study examines the relationship between executive compensation and value of listed deposit money banks (DMB) in Nigeria. The study adopted correlational research design with balanced panel data of 14 listed banks which served as population of the study for the period of 2010-2021 using Generalized Least Square (GLS) regression as a tool of analysis. The study found that CEO Pay and Chairman’s compensation have positive effect on the value of listed banks, while the highest paid director exact negative influence on the banks’ value. This implies that the CEO Pay and Chairman’s compensation improves the value of banks. Therefore, it is recommended among...

Compensation is a complex and controversial subject. Researchers, academicians and consultants have devoted much time and efforts to understand the innumerable factors that underlie top management compensation. Of more importance to this study is how compensation imparts on firms’ performance. For some time now, executive compensation has been a matter of concern to corporate policy makers. Studies have shown that compensation is one of the most important strategies in human resource management; as it influences the productivity and growth of organizations. There is also a public outcry that insurance companies in Nigeria do not settle claims promptly; and in most cases only with the intervention of the regulatory bodies. There are many published issues on compensation that focus on organizational differences; there is little on whether compensation has any significant linkage with performance. Besides, improvement of corporate governance standards has been at the forefront of inter...

This study aims at determining the factors of corporate governance that impact financial performance. It uses a panel analysis approach that considers data from 2004 to 2018 of the insurance companies in Muscat, Oman. Out of the 10 insurance companies listed in Muscat Securities Market, four companies were chosen based on pre-established criteria considering the availability of data for the period indicated. To analyze the data gathered, descriptive analysis techniques using SPSS version 21 and Stata version 14 were applied. Based on the findings, board size affects ROA positively but negatively on ROE; FBM affects ROE positively but negatively affects ROA; BI has a negative influence on both ROA and ROE; and, AC affects ROA positively but negatively on ROE.Conversely, audit committee size positively impacts ROA and the independence and impartiality is a must to be a member of the audit committee. Conclusion from the findings suggests that the increasing number of the members of audit committee contributes positive signs for ROA which can be supported by many studies. Findings proved the significant positive relationship between audit committee size and independence on a firm's financial performance. For organizations such as insurance companies, the frequency of board meetings can be determining factor to decide in terms of profitability issues and business performance. Finally, the results provide the management to examine the implications of deciding how many members of the board, frequency of board meetings, board independence, and audit committee as these can influence financial performance such as ROA and ROE.

This study examines the moderating effect of the board of directors in the relationship between tax planning and firm value. Focusing on a sample of 105 European firms during the period 2005e2012, we found a positive relationship between tax planning and firm value. In addition, we found that board independence, board diversity, and CEO's dual functions have a significant and negative effect on the relationship between tax planning and firm value. The paper makes two contributions. First, it gathers the first evidence on the shareholder valuation of Europeans firms' tax planning practices and offers insights into corporate behavior. Second, the analysis examines an eight-year period considering the sensitivity of the board of directors and attitudes to tax planning time.

Compensation is a complex and controversial subject. Researchers, academicians and consultants have devoted much time and efforts to understand the innumerable factors that underlie top management compensation. Of more importance to this study is how compensation imparts on firms' performance. For some time now, executive compensation has been a matter of concern to corporate policy makers. Studies have shown that compensation is one of the most important strategies in human resource management; as it influences the productivity and growth of organizations. There is also a public outcry that insurance companies in Nigeria do not settle claims promptly; and in most cases only with the intervention of the regulatory bodies. There are many published issues on compensation that focus on organizational differences; there is little on whether compensation has any significant linkage with performance. Besides, improvement of corporate governance standards has been at the forefront of international debate in recent times. Compensation of directors and executives is one of the key issues in this debate. This study aimed at finding out if there is any relationship between remuneration and incentive systems on Nigerian insurance firms' productivity. The net claims paid to contributors depict a measure of productivity as perceived by the insured, while the returns on assets depict productivity from the shareholders perspective. The two represent the dependent variable for study.

This study investigates the impact of board incentives as proxied by directors` remuneration on the financial performance of listed textile companies in Bangladesh. Using Generalized Method of Moments (GMM) and data pertaining to listed textile companies of Dhaka Stock Exchange (DSE) during the period from 2011 to 2017 (resulting in a total of 140 firm-year observations), we have estimated the firm performance equation involving directors' remuneration and board independence as the independent variables and some other control variables like firm age, size, leverage, and operating efficiency. The results reveal that there is a negative association between board remuneration and firm performance. In addition, this study finds no significant relationship between board independence and firm performance of the sample firms. Our findings suggest that higher pay to the board does not stimulate higher firm performance and, in turn, results in shareholders getting nothing in return from this and, hence, is a matter of great concern for them. Moreover, our results indirectly indicate that currently directors` remuneration in Bangladesh is not aligned with the firm performance, which has been emphasized in extant corporate governance literature. Besides, this paper further raises questions about the effectiveness of independent directors in the boards of textile firms in Bangladesh.

This study investigates the impact of board incentives as proxied by directors` remuneration on the financial performance of listed textile companies in Bangladesh. Using Generalized Method of Moments (GMM) and data pertaining to listed textile companies of Dhaka Stock Exchange (DSE) during the period from 2011 to 2017 (resulting in a total of 140 firm-year observations), we have estimated the firm performance equation involving directors' remuneration and board independence as the independent variables and some other control variables like firm age, size, leverage, and operating efficiency. The results reveal that there is a negative association between board remuneration and firm performance. In addition, this study finds no significant relationship between board independence and firm performance of the sample firms. Our findings suggest that higher pay to the board does not stimulate higher firm performance and, in turn, results in shareholders getting nothing in return from this and, hence, is a matter of great concern for them. Moreover, our results indirectly indicate that currently directors` remuneration in Bangladesh is not aligned with the firm performance, which has been emphasized in extant corporate governance literature. Besides, this paper further raises questions about the effectiveness of independent directors in the boards of textile firms in Bangladesh.

We address the question 'do governance enhancing audit committee (AC) characteristics mitigate the firm performance impact of significant-adverse-economic events such as the Global Financial Crisis (GFC)?' Our analysis reveals that smaller audit committees with more experience and financial expertise are more likely to be associated with positive firm performance in the market. We also find that longer serving chairs of audit committees negatively impacts accounting performance. However, accounting performance is positively impacted where ACs include block holder representation, the chair of the board, whose members have more external directorships and whose chair has more years of managerial experience. We contribute to the growing body of research on the impact of audit committee governance attributes on performance during times of financial distress.

We address the question 'do governance enhancing audit committee (AC) characteristics mitigate the firm performance impact of significant-adverse-economic events such as the Global Financial Crisis (GFC)?' Our analysis reveals that smaller audit committees with more experience and financial expertise are more likely to be associated with positive firm performance in the market. We also find that longer serving chairs of audit committees negatively impacts accounting performance. However, accounting performance is positively impacted where ACs include block holder representation, the chair of the board, whose members have more external directorships and whose chair has more years of managerial experience. We contribute to the growing body of research on the impact of audit committee governance attributes on performance during times of financial distress.

This study investigates the impact of board incentives as proxied by directors` remuneration on the financial performance of listed textile companies in Bangladesh. Using Generalized Method of Moments (GMM) and data pertaining to listed textile companies of Dhaka Stock Exchange (DSE) during the period from 2011 to 2017 (resulting in a total of 140 firm-year observations), we have estimated the firm performance equation involving directors' remuneration and board independence as the independent variables and some other control variables like firm age, size, leverage, and operating efficiency. The results reveal that there is a negative association between board remuneration and firm performance. In addition, this study finds no significant relationship between board independence and firm performance of the sample firms. Our findings suggest that higher pay to the board does not stimulate higher firm performance and, in turn, results in shareholders getting nothing in return from this and, hence, is a matter of great concern for them. Moreover, our results indirectly indicate that currently directors` remuneration in Bangladesh is not aligned with the firm performance, which has been emphasized in extant corporate governance literature. Besides, this paper further raises questions about the effectiveness of independent directors in the boards of textile firms in Bangladesh.

This paper provides a two steps investigation of the literature on banking corporate governance. We firstly perform a systematic literature review on the academics papers focused on risk management, compensation and ownership structure of banks. Then we run a meta-analysis investigation over more than 2,500 observations to clarify the understanding of the relationship with performance and risk in banks. The subgroup analysis related with bank performance shows a clear and significant finding: Board ownership, CEO ownership and Controlling shareholder enhance the performance of banks. Conversely, State ownership is negatively associated with bank performance. Results of the whole investigation and directions for scholars are also discussed.

Purpose: Examine the effect of executive compensation on the financial performance of listed non-financial firms in Nigeria.   Theoretical framework: The continuous rise in compensation of executives in Nigeria without a corresponding increase in firm performance has continued to generate intense debates and controversial opinions within the corporate environment. Consequently, the need to understand the degree of relationship between executive compensation (measured by salary emolument, bonuses, stock-based compensation and pension) and firm performance (measured by return on equity).   Design/methodology/approach:  A correlational research design was used based on a filtered census population of 63 firms listed on Nigeria’s stock exchange. Secondary data was obtained from the annual financial reports of these firms and analyzed using the generalized methods moments.   Findings: The study found salary emoluments, bonuses and stock-based compensation, as measures of executive compen...

The purpose of this study is to see if operational auditing, internal control, marketing strategy implementation, and sales accounting information systems have an impact on sales effectiveness. The research method employed in this study is quantitative. The data was collected using questionnaires, and the analysis method used was multiple linear regression. According to the findings of the study, operational auditing and accounting information systems have a significant impact on sales effectiveness. Internal control has no effect on the effectiveness of sales. Furthermore, the implementation of marketing strategies has an impact on sales effectiveness, but not significantly.

Although the consolidation and regulatory reforms were initiated in the Nigerian banking industry in 2004, the expected improvement in the operational performance and efficiency in the banking system has not been reflected in the overall health of the economy. It is in the light of the above, that this research examined the relationships between corporate governance mechanisms and performance of banks in Nigeria. This study used secondary data derived from publications of Central Bank of Nigeria (CBN), Nigeria Deposit Insurance Corporation (NDIC) and Security and Exchange Commission (SEC) from 2006 to 2014. The Pearson Correlation was used to assess the relationships between the corporate governance variables and banks' performance. Statistical Package for Social Sciences (SPSS) was used for the analysis. The study observed that a significant negative relationship exists between board size, board composition and the financial performance of banks, while a positive and significant relationship was observed between directors' equity holding and banks' performance. The study concludes that, the directors' equity holding is paramount in boosting the performance of banks in Nigeria. Thus, this study recommends that the regulatory authorities should make sure that all directors own a reasonable amount of equity in the banks they oversee as this will move them to do their best to enhance the performance of these banks.

This study looks at how executive compensation affects firm value and the extent to which this relationship is sensitive to managerial ownership and corporate governance factors. We use data from UK FTSE 100 firms for the period 2007– 2012, generating a total of 578 firm-year observations. Consistent with optimal compensation theory, we find that the managerial compensation –firm value is more sensitive to executives’ ownership levels and other corporate governance indicators. Our results remain robust to alternative econometric models. We contribute
to the literature on corporate governance and firm value . While the
paper builds on the executive bonus compensation literature, it also furthers our understanding on the extent to which managerial ownership, institutional ownership, board size and non-executive ownership matter in the executive bonus compensation—corporate value relationship with specific emphasis on UK FTSE 100 firms. Our second contribution is related to the moderating role of managerial (executive) ownership. We show that as executives residual interests go up, managers become more conscious of the firm’s idiosyncratic risk, and hence lessen their aggressive investment and financing strategies culminating in
lower firm value.

This study investigates the impact of corporate performance and corporate governance on executive remuneration in a Chinese market setting. Using Generalized Method of Moments (GMM) estimation approach for a sample of 860 non-financial firms listed on Chinese Stock Exchanges over the 15 years period of 2004-2018, the study found a positive and significant association between corporate profitability and executive pay. The study further reports that ownership concentration is positively related to executive pay revealing an entrenchment effect i.e., collusion between large shareholders and top management. Consistent with managerial power and agency theory CEO duality exhibits a positive relationship with executive remuneration, while board size and board independence also reveal a positive association with executive pay, indicating board ineffectiveness in reducing managerial entrenchment. Interestingly, non-state-owned enterprises report a negative relationship of board size with executive remuneration which means non-state-owned enterprises with larger board size tend to reduce executive pay because they may have better control and monitoring. Following the managerial power propositions, CEO duality weakens the performance sensitivity of executive pay, but contrary to agency theory the impact of board independence on this sensitivity is in contrast and weakens the relationship of managerial pay and performance, making the independent director's role ambiguous.

In this study, the reverse impact of firm corporate performance on board structure is empirically examined using a large cross section of 50 manufacturing firms in Nigeria. The study makes a divergence from previous studies by noting that such a reverse effect is possible and examining this effect of performance on board structure in Nigeria. The panel data estimation technique is employed on the pooled data for the firms over a ten-year period (2004-2013) and estimation is performed using four measures of firm performance and two measures of board structure. The results show that there is actually reverse impact of firm performance on board structure although the effect is quite weak. The only performance variable that exerts significant impact on board structure (board size and independence) is earnings per share and, to a lesser degree profit margin. Moreover, firm size is shown to be an essential factor in explaining the general behavior of firm performance and also the pattern of effect of such performance on the board structure. The analyses clearly showed that firm size is itself a strong positive factor in improving firm performance and also tends to improve the effect of high performance on board structure across the firms.

Although the consolidation and regulatory reforms were initiated in the Nigerian banking industry in 2004, the expected improvement in the operational performance and efficiency in the banking system has not been reflected in the overall health of the economy. It is in the light of the above, that this research examined the relationships between corporate governance mechanisms and performance of banks in Nigeria. This study used secondary data derived from publications of Central Bank of Nigeria (CBN), Nigeria Deposit Insurance Corporation (NDIC) and Security and Exchange Commission (SEC) from 2006 to 2014. The Pearson Correlation was used to assess the relationships between the corporate governance variables and banks' performance. Statistical Package for Social Sciences (SPSS) was used for the analysis. The study observed that a significant negative relationship exists between board size, board composition and the financial performance of banks, while a positive and significant relationship was observed between directors' equity holding and banks' performance. The study concludes that, the directors' equity holding is paramount in boosting the performance of banks in Nigeria. Thus, this study recommends that the regulatory authorities should make sure that all directors own a reasonable amount of equity in the banks they oversee as this will move them to do their best to enhance the performance of these banks.

This meta-analysis takes stock of 121 C.E.O. pay studies published between 1998 and 2018 with the objective of identifying the main drivers of C.E.O. pay from a global perspective and contributing to the agency vs managerial debate on this ground. The meta-results disclose a positive C.E.O. pay-performance correlation (the highest correlation coefficient corresponds to Earnings per share with a 34%) as the agency theory prescribes and the governance policies promote. However, firm size still predominates as the main driver of C.E.O. pay (correlation coefficient is around 44%) according to managerial premises. Moreover, our results reconcile both approaches because results of the meta-regressions suggest that larger companies and more independent boards strengthen the pay-performance association. Additional analyses of moderating factors on C.E.O. pay forces do not provide robust conclusions, though, they suggest: (1) weak impact, if any, of both the Cadbury Report and the S.O.X.; and (2) lack of homogeneity in the banking industry despite its specific regulation.

This study investigates how six different measures of firm performance affect executive compensation in Nigerian insurance sector (2011-2016). The Im, Pesaran and Shin (IPS) and Kao Residual tests were employed to ascertain stationarity and cointegration of the variables. Mixed stationary and no cointegration were observed. The results indicate that profitability variables (return on asset, return on equity (ROE) and net profit margin) are insignificant to executive compensation while efficiency variables are significant to executive compensation. That is profitability variables does not have significant effect on executive compensation while corporate performance measured by efficiency variables have effect on executive compensation. It is recommended that the board should focus on efficiency measures in setting executive compensation levels as these ultimately drive profitability and corporate performance in the insurance sector. This study make a meaningful contribution to the literature as very little work has been done in this area.

This study investigates the impact of board incentives as proxied by directors` remuneration on the financial performance of listed textile companies in Bangladesh. Using Generalized Method of Moments (GMM) and data pertaining to listed textile companies of Dhaka Stock Exchange (DSE) during the period from 2011 to 2017 (resulting in a total of 140 firm-year observations), we have estimated the firm performance equation involving directors' remuneration and board independence as the independent variables and some other control variables like firm age, size, leverage, and operating efficiency. The results reveal that there is a negative association between board remuneration and firm performance. In addition, this study finds no significant relationship between board independence and firm performance of the sample firms. Our findings suggest that higher pay to the board does not stimulate higher firm performance and, in turn, results in shareholders getting nothing in return from this and, hence, is a matter of great concern for them. Moreover, our results indirectly indicate that currently directors` remuneration in Bangladesh is not aligned with the firm performance, which has been emphasized in extant corporate governance literature. Besides, this paper further raises questions about the effectiveness of independent directors in the boards of textile firms in Bangladesh.

Although the consolidation and regulatory reforms were initiated in the Nigerian banking industry in 2004, the expected improvement in the operational performance and efficiency in the banking system has not been reflected in the overall health of the economy. It is in the light of the above, that this research examined the relationships between corporate governance mechanisms and performance of banks in Nigeria. This study used secondary data derived from publications of Central Bank of Nigeria (CBN), Nigeria Deposit Insurance Corporation (NDIC) and Security and Exchange Commission (SEC) from 2006 to 2014. The Pearson Correlation was used to assess the relationships between the corporate governance variables and banks' performance. Statistical Package for Social Sciences (SPSS) was used for the analysis. The study observed that a significant negative relationship exists between board size, board composition and the financial performance of banks, while a positive and significant relationship was observed between directors' equity holding and banks' performance. The study concludes that, the directors' equity holding is paramount in boosting the performance of banks in Nigeria. Thus, this study recommends that the regulatory authorities should make sure that all directors own a reasonable amount of equity in the banks they oversee as this will move them to do their best to enhance the performance of these banks.

Corporate governance has become an issue of global significance and has received new urgency due to various corporate scandals and failure. This study seeks to see impacts of corporate governance mechanism on financial performance of Insurers in Ethiopia. In order to achieve this objective, the study uses mixed research approach. Panel data covering ten year period from 2005 – 2014 are analyzed for nine insurance companies. Also in-depth interview was conducted with selected company board chairmen. The study analyses a range of internal corporate governance variables board size, chief executive compensation, educational qualification of directors ,presence of female directors, frequency of board meeting, other business management experience of directors, industry specific experience of directors and the study also controls the effect of premium growth of Insurers. The Fixed effects technique has been applied to find out the most significant variables from considered internal corpora...

The increased number of corporate dirty pools raised serious concerns about the interest of the shareholders. The board room politics, conflict of interest, and bully pulpit proclivity gave birth to the “agency complexities.” The complexities of the corporate world made a buzz for the serious thoughts on corporate governance. This analysis aims at an objective and scientific inquiry about the relationship between corporate governance complexities and firm performance by utilizing data mining tools. It aims at overcoming the corporate dilemma over profitability vs. good governance and presenting a scientific model to eradicate the complexities in the corporate governance system and aims at providing a scientific basis to overcome the complex issues of governance faced by the corporate. The multivariate analysis in this paper utilizes a data mining tool for regression analysis and ANOVA. This paper also proposes a mathematical model that supports the study outcomes. The investigation ...

The study examined the effect of Corporate Governance on the Performance of Deposit Money Banks in Nigeria. Ex-Post Facto research design was adopted and secondary data were obtained from Annual reports of selected Deposit Money Banks for a period of ten years (2009-2018). The objectives are to investigate the extent to which Board size affects Return on Equity and also to determine the effect of Board composition on the Net profit of Deposit Money Banks in Nigeria. Hypotheses were formulated and analyzed using Ordinary Least Square (OLS) regression method. The result reveals that the Board size has significant and positive effect on the Return on Equity (ROE) of Deposit Money Banks in Nigeria. It equally shows that Board composition has positive significant effect on their net profit as well. The study recommends that effort should be made to increase shareholders’ returns on investment by making sure that corporate organizations appoint Board members based on professional expertis...

The main purpose of this study is to investigate the effect of corporate governance quality on the firm value of companies operating in the Borsa Istanbul (BIST) Corporate Governance Index. Analyzes were made with the data of the 51 companies operating in the BIST Corporate Governance Index for the 2015-2019 period. The GMM techniques were used as a method. AMG method was also used to consolidate the results obtained from the GMM method and to create robustness. The results indicated that the corporate governance quality of companies has positive effects on firm value. The most important finding that reflects the purpose of the research is that companies should also increase the quality of corporate governance to maximize the value of the firm. Implications for Central European audience: Depending on the results of the study, it is predicted that companies whose profitability has a positive effect on the value of the firm will encourage their managers to increase their corporate governance quality. By complying more with the criteria in corporate governance principles, companies will both increase their institutionalism and maximize the value of the company, which is one of the main financial goals of the company.

Based on the theoretical underpinnings of the agency theory and liquidity theory, the purpose of this study is to show how managers who want to enhance the performance of Pakistan's non-financial sector can use liquidity policy in relation to corporate governance. Nowadays, Pakistan is facing a severe liquidity crisis; this study contributes by examining the mediating role of liquidity on the link of corporate governance-performance. We use data from 63 firms from 2010 to 2018, excluding 17 outliers. To analyze the data, we use the Seemingly Unrelated Regression (SURE) model and nlcom-Stata test. Our findings support the mediating role of liquidity on the link between corporate governance and performance. In addition, the results show that corporate governance improves performance. Furthermore, the study supports a significant positive association of liquidity and performance. For robustness, we use two performance variables-return on assets (ROA) and Tobin's q (TQ)-where ROA represents full mediation and TQ indicates partial mediation. This study helps to use liquidity policy to strengthen the inside and outside dimensions of corporate governance mechanisms that improve the performance of firms. Overall, these findings suggest better disclosure, transparency, and solutions to auditing issues that add value to the firms.

Aim/purpose – Higher compensation and increased share ownership are believed to drive fewer earnings management. Therefore, the study examines the moderating impact of share ownership on the relationship between executive compensation and earnings management of listed Deposit Money Banks in Nigeria. Design/methodology/approach – Panel Least Square regression and Stata 13 were used for the estimation. The secondary data source was employed and extracted from the banks’ published financial statements covering the period from 2007-2018. Post- estimation tests, including normality tests of standard error, heteroscedasticity, and mul- ticollinearity, were carried out to validate the outcome. Executive compensation variable is represented by Chief Executive Officer Pay (CEO Pay), Board Chairman’s compensa- tion, and the highest-paid director, while executive share ownership represents the mod- erator variable. Chang et al. (2008) model was used to proxy earnings management. Findings – The...

Although the consolidation and regulatory reforms were initiated in the Nigerian banking industry in 2004, the expected improvement in the operational performance and efficiency in the banking system has not been reflected in the overall health of the economy. It is in the light of the above, that this research examined the relationships between corporate governance mechanisms and performance of banks in Nigeria. This study used secondary data derived from publications of Central Bank of Nigeria (CBN), Nigeria Deposit Insurance Corporation (NDIC) and Security and Exchange Commission (SEC) from 2006 to 2014. The Pearson Correlation was used to assess the relationships between the corporate governance variables and banks' performance. Statistical Package for Social Sciences (SPSS) was used for the analysis. The study observed that a significant negative relationship exists between board size, board composition and the financial performance of banks, while a positive and significant relationship was observed between directors' equity holding and banks' performance. The study concludes that, the directors' equity holding is paramount in boosting the performance of banks in Nigeria. Thus, this study recommends that the regulatory authorities should make sure that all directors own a reasonable amount of equity in the banks they oversee as this will move them to do their best to enhance the performance of these banks.

The study aims to examine the relationship between ownership structure and firm performance. We have analyzed the data of 113 firms with 565 observations from 2013 to 2017 using the fixed panel data estimation approach. A subsample analysis has been employed by dividing the data based on firm size, board size, and firm age to test the robustness of the analysis. Results indicate a positive impact of domestic promoters, foreign promoters, and institutional shareholders on firm performance, whereas non-institutional shareholders bear an inverse relationship with performance. It has implications for regulators and policymakers responsible for formulating ownership structure policies in light of ongoing regulatory reforms.

The impact of executive compensation on firms' profitability was empirically examined in this study for the listed companies in Nigeria using a period of ten years ranging from 2004 to 2013. Specifically, the study investigated the impact of directors' cash incentives, non-cash incentives and bonus issue of share on earnings per share of the selected companies. The study relied on the secondary data extracted from the audited financial statement of a sample of 70 companies purposefully selected from the 198 listed companies in Nigeria. Both descriptive and inferential statistics were carried out. The results revealed that a significant positive relationship exists between the directors' cash incentives, bonus issue of share and earnings per share. The relationship between non cash incentive and earnings per share was insignificant. It can therefore be recommended to the management that weight should be assigned to the variables in that order. The policy makers also need ...

The study aims to examine the relationship between ownership structure and firm performance. We have analyzed the data of 113 firms with 565 observations from 2013 to 2017 using the fixed panel data estimation approach. A subsample analysis has been employed by dividing the data based on firm size, board size, and firm age to test the robustness of the analysis. Results indicate a positive impact of domestic promoters, foreign promoters, and institutional shareholders on firm performance, whereas non-institutional shareholders bear an inverse relationship with performance. It has implications for regulators and policymakers responsible for formulating ownership structure policies in light of ongoing regulatory reforms.

The purpose of this study is to investigate the impact of corporate governance, firm performance on CEO compensation. More specific, firm performance, board size and audit expenditure are linked with CEO compensation. Using panel data for 151 Pakistani firms listed on Karachi Stock Exchange (KSE), fixed effects regression has been performed. The results indicate firm performance is negatively associated with CEO compensation, which hold managerial power theory. While, board size and audit expenditure showed a positive relationship with CEO compensation, which reflects the presence of human capital theory. The results of study are in line with the prior studies done on CEO compensation.

The aim of this study is to determine whether there are statistically significant differences between small Spanish companies according to their family or non-family nature, in terms of their main economic and financial indicators. The study data analysed correspond to the years 2003, 2007 and 2013, which enabled us to examine whether the characteristics observed and any differences between these companies persisted during a period featuring three different economic scenarios. The study sample was composed of 21,192 small family firms and 4,449 small non-family firms. The results obtained show that, regardless of the national economic situation, there were statistically significant differences between the two types of companies for certain economic and financial indicators. We conclude that the family nature of a company has a negative impact on productivity, the number of employees and levels of investment and turnover. Moreover, family firms face higher costs of external financing...

Firm ownership structure has a strong influence on its long-term performance and financial literature documents that high concentration of promoter ownership has a positive bearing on firm performance. This study is an attempt to analyze relationship between promoter’s holding and firm performance in an emerging market setting of India. The study specifically examines the endogeneity problem through use of simultaneous equations. To ensure robustness in addition to accounting-based measures (ROA and ROE), a market-based performance measure (Tobin’s Q) has been employed. Panel data of 2148 firm-year observations are analyzed from 2003 to 2015 for 179 companies listed on India’s broad-based market Index, the S&P BSE 500. The results indicate presence of non-linear relationship between the firm performance and promoter’s holdings. Specifically, the study documents the relationship to be of U curve nature and clearly finds evidence of endogenous relationship between promoter’s holding a...