A Critical Assessment of Interrelationship Among Corporate Governance, Financial Performance, Refined Economic Value Added to Measure Firm Value and Return on Stock

Dewri, Leo Vashkor

doi:10.1007/s13132-021-00808-8

Cited by 16 publications

(13 citation statements)

References 147 publications

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“…Knowledge exchange may improve decision-making on larger boards (Merendino & Melville, 2019;Abang'a et al, 2021;Purbawangsa & Rahyuda, 2022). A larger board can benefit from increased diversity, with directors hired from varied professional disciplines with unique skills and abilities (Dewri, 2021;Abang'a et al, 2021;Sani, 2022). In contrast, some studies (e.g., Assenga et al, 2018;Pratiwi & Chariri, 2021) argue that a larger board is less effective at en-hancing corporate performance because new ideas and opinions are less likely to be expressed in a large pool of directors and the monitoring process is less effective, which negatively impacts financial performance (Assenga et al, 2018;Pratiwi & Chariri, 2021).…”

Section: Board Of Directors (Bod)and Financial Performancementioning

confidence: 99%

“…Although all director's executive or non-executive should be treated equally in terms of board responsibilities, the latter must ensure that all shareholders' interests are protected (Assenga et al, 2018;Dewri, 2021). Non-executive and independent directors supervise corporate board management decisions and hold CEOs accountable.…”

Section: Board Of Directors (Bod)and Financial Performancementioning

confidence: 99%

“…Non-executive and independent directors supervise corporate board management decisions and hold CEOs accountable. Coleman & Wu, 2020;Dewri, 2021;Abang'a et al, 2021). Independent directors help organisations monitor management while remaining unbiased to the firm and its CEO (Assenga et al, 2018;Pratiwi & Chariri, 2021;Purbawangsa & Rahyuda, 2022).…”

Section: Board Of Directors (Bod)and Financial Performancementioning

confidence: 99%

“…Only a little amount of empirical agency theory research shows a negative relationship between independent directors and financial success (He, 2021) or no significant relationship (Almaqtari et al, 2021). However, most empirical agency theory-focused research (Dewri, 2021;Abang'a et al, 2021;AlFaryan, 2021;Pratiwi & Chariri, 2021;Purbawangsa & Rahyuda, 2022) suggests that independent directors improve enterprises' financial performance. In non-financial corporations, more independent directors on boards should improve oversight and reduce managerial opportunism for shareholder benefits and financial performance (Assenga et al, 2018;Pratiwi & Chariri, 2021;Purbawangsa & Rahyuda, 2022).…”

Section: Board Of Directors (Bod)and Financial Performancementioning

confidence: 99%

“…Based on agency theory, CG is a key strategic practise for minimising agency is-sues like agent opportunism, information asymmetry, and divergent stakeholder atti-tudes toward risks and agency costs (Salem, 2019;Shaji & Shajahan, 2020;He, 2021), so board properties will improve firms' financial performance. The optimal board size with members who are independent, skilled, perseverant, and efficient can pressure management to reduce debt costs and enhance financial performance (Coleman & Wu, 2020;Dewri, 2021;Abang'a et al, 2021;Purbawangsa & Rahyuda, 2022;Sani, 2022). According to the Resource Dependence Theory (RDT), an organization's performance is influenced by its internal resources, such as board of directors (Al Farooque et al, 2019;Ahmed et al, 2020;Sani, 2022).…”

Section: Board Of Directors (Bod)and Financial Performancementioning

confidence: 99%

See 4 more Smart Citations

The Moderating Role of Organizational Culture on the Relationship between Corporate Governance Dimensions and Financial Performance in Saudi Manufacturing Industry: A Theoretical Framework

Aldriweesh¹,

Zakuan²,

Bajuri³

et al. 2022

IJARAFMS

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Corporate governance (CG) is critical in developing a corporate culture of awareness, transparency, and openness. Despite this, previous studies have not yet reached an agreement on the most important dimensions of CG implementation and their correlation with the financial performance of financial and non-financial companies, and there is a scarcity of studies that examined variables such as organisational culture (OC) that could improve CG implementation and their relationship with firm financial performance, particularly in developing countries. This paper provides a brief overview of the dimensions of CG implementation, which are board properties, audit committee characteristics, and transparency and disclosure as the most important dimensions of CG implementation, and their impact on financial performance in developing-country manufacturing firms. Furthermore, the purpose of this study is to look into the role of OC as a moderating variable in the relationship between the implementation of CG dimensions (board properties, audit committee characteristics, and transparency and disclosure) and the financial performance of manufacturing firms in developing countries. A conceptual model was developed for this study based on previous literature, revealing that there is a theoretical correlation between board properties, audit committee characteristics, and transparency and disclosure as main dimensions of CG implementation and financial performance in developing countries' manufacturing firms, most notably, this study also theoretically demonstrated the role of OC as a primary determinant in affecting the association between CG dimension implementation and financial success in manufacturing enterprises in developing countries. However, to explore correlations in the suggested model, these theoretical conclusions require a survey of a sample of executive directors in manufacturing enterprises in a developing country such

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Section: Board Of Directors (Bod)and Financial Performancementioning

confidence: 99%

Section: Board Of Directors (Bod)and Financial Performancementioning

confidence: 99%

Section: Board Of Directors (Bod)and Financial Performancementioning

confidence: 99%

Section: Board Of Directors (Bod)and Financial Performancementioning

confidence: 99%

Section: Board Of Directors (Bod)and Financial Performancementioning

confidence: 99%

See 3 more Smart Citations

The Moderating Role of Organizational Culture on the Relationship between Corporate Governance Dimensions and Financial Performance in Saudi Manufacturing Industry: A Theoretical Framework

Aldriweesh¹,

Zakuan²,

Bajuri³

et al. 2022

IJARAFMS

View full text Add to dashboard Cite

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Analyzing Corporate Governance Model with Chinese Characteristics and Accounting Information Disclosure: a Quasi-natural Experimental Study Based on a Special Institutional Arrangement

Yang

Huo

Li³

et al. 2023

J Knowl Econ

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A new corporate governance model for SOEs with Chinese characteristics was implemented in China in 2016, in which a 4 + 1 (Chinese Communist Party committee, shareholders' meeting, board of directors, board of supervisors + managers) corporate governance structure was formed by integrating the Party organization into the traditional Western 3 + 1 structure (shareholders' meeting, board of directors, board of supervisors + managers), and it was a major breakthrough of the modern enterprise system with Chinese characteristics. With this brand-new institutional arrangement as a quasi-nature experiment, the Propensity Score Matching (PSM) and Differences in Differences (PSM-DID) methods have been used in this paper to empirically test the impact of the corporate governance model with Chinese characteristics on accounting information disclosure of State-Owned Enterprises (SOE). It has been found in the study that the corporate governance model with Chinese characteristics has improved the transparency of accounting information of SOEs in China, but no signi cant contribution to the quality of accounting information has been identi ed. Samples are subdivided in view of the in uence of the hierarchy and internal governance of Chinese SOEs. In central government-owned enterprises or those with a low level of internal control, the new governance model plays a more prominent role in enhancing the transparency of accounting information. The study veri es the positive effect of the corporate governance model with Chinese characteristics in improving the level of accounting information disclosure. Also, the study has practical signi cance in enhancing the corporate governance system with Chinese characteristics.

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Stock Liquidity and Investment Efficiency: Evidence from the New Regulation of Insider Selling in China

Zhang¹,

Zhang

et al. 2023

J Knowl Econ

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A Critical Assessment of Interrelationship Among Corporate Governance, Financial Performance, Refined Economic Value Added to Measure Firm Value and Return on Stock

Cited by 16 publications

References 147 publications

The Moderating Role of Organizational Culture on the Relationship between Corporate Governance Dimensions and Financial Performance in Saudi Manufacturing Industry: A Theoretical Framework

The Moderating Role of Organizational Culture on the Relationship between Corporate Governance Dimensions and Financial Performance in Saudi Manufacturing Industry: A Theoretical Framework

Analyzing Corporate Governance Model with Chinese Characteristics and Accounting Information Disclosure: a Quasi-natural Experimental Study Based on a Special Institutional Arrangement

Stock Liquidity and Investment Efficiency: Evidence from the New Regulation of Insider Selling in China

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