Journal ArticleDOI
Does corporate governance beget firm performance in Fortune Global 500 companies
TLDR
In this article, the impact of corporate governance practices on the financial outcomes of Fortune Global 500 Companies, thus covering impact of geographical differences (USA and non-USA) as well.Abstract:
Purpose
This paper aims to determine the impact of corporate governance practices on the financial outcomes of Fortune Global 500 Companies, thus covering impact of geographical differences (USA and non-USA) as well.
Design/methodology/approach
The study is a quantitative research based on a positivist paradigm using deductive reasoning and secondary data collection. Data collection has been done from secondary sources (annual reports, Edgar submissions and financial statistics from renowned financial databases such as yahoo.finance, Bloomberg, Ycharts statistics and Morningstar. Data were collected for 8 years (2005-2012).
Findings
The study found a strong positive relationship between corporate governance and firm performance. Smaller board sizes are found to generate better firm performance in Fortune Global 500 Companies. Frequency of board meetings have also been found to have inverse relationship with firm performance. The study supports board independence to improve transparency in board decision-making process. CEO compensation has been found to have inverse relationship with firm performance. The robustness of our results has been measured with the usage of three dependent variables, and we have found same results with varying significance level.
Research limitations/implications
Due to selection of globally broad sample set qualitative aspects of corporate governance could not be covered. Nevertheless, there is a need to go beyond the quantitative techniques (secondary data) of measuring corporate governance mechanisms.
Practical implications
The population set is unique combination of big players and global diversification. Hence, the corporate governance practices of these firms as understood from the results of this study can be bench-marked for emerging corporates of varying global context.
Originality/value
The research is original and unique as it significant and globally diverse population of Fortune Global 500 Companies over a period of 8 years for 11 variables of interest. Results are helpful in bench marking for the rest of market players.read more
Citations
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Journal ArticleDOI
The impact of board characteristics on the financial performance of Tanzanian firms
TL;DR: In this article, the authors investigated the impact of board characteristics on the financial performance of listed firms in Tanzania, including outside directors, board size, CEO/Chair duality, gender diversity, board skill and foreign directors.
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Corporate governance quality of Islamic banks: measurement and effect on financial performance
Hana Ajili,Abdelfettah Bouri +1 more
TL;DR: In this paper, the authors assess the measurement of the Corporate Governance (CG) quality of Islamic banks (IBs) and its effect on financial performance and find no statistically significant relation between CG quality and financial performance.
Journal ArticleDOI
Corporate governance mechanisms and firm performance in a developing country
Albert Puni,Alex Anlesinya +1 more
TL;DR: In this article, the authors examined the influence of corporate governance mechanisms recommended by the SEC of Ghana on firm performance as measured by accounting-based ratios (return on assets, return on equity and earning per share) as well as market-based measure (Tobin's Q) among listed Ghanaian companies from 2006 to 2018.
Journal ArticleDOI
Do characteristics of the board of directors and top executives have an effect on corporate performance among the financial sector? Evidence using stock
TL;DR: In this article, the authors examined the relationships among the study variables, which are top executive management characteristics and corporate performance in the context of Omani listed firms, with the help of two control variables.
Journal ArticleDOI
CEO power, board oversight, and earnings announcement tone
TL;DR: In this article, a model of the determinants of earnings announcement tone in order to examine the impact of CEO power on earnings announcement tones was constructed, and the authors found that the effect of CEO tenure is weaker when board oversight is stronger, especially when board members have higher reputation costs.
References
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Theory of the firm: Managerial behavior, agency costs and ownership structure
TL;DR: In this article, the authors draw on recent progress in the theory of property rights, agency, and finance to develop a theory of ownership structure for the firm, which casts new light on and has implications for a variety of issues in the professional and popular literature.
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The Modern Industrial Revolution, Exit, and the Failure of Internal Control Systems
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