A Cross-country Study of the Effects of Institutional Ownership on Credit Ratings

AlHares, Aws; Ntim, Collins G.

doi:10.5539/ijbm.v12n8p80

Cited by 12 publications

(4 citation statements)

References 26 publications

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“…Board From a productivity point of view, it is assumed that board efficiency can have significant improvements when the board members are of different genders (Carter et al, 2010). In terms of legitimacy, boards with the highest gender diversity enable more stable macro-environmental links for companies and stakeholders, and increase the legitimacy of the company and the credibility of the board (AlHares & Ntim, 2017). Several studies have shown that board diversity has a positive effect on the voluntary application of corporate governance principles, which has not been examined in any study yet for the Kosovo case.…”

Section: Board Diversitymentioning

confidence: 99%

Importance of Corporate Governance: Evidence from Kosovo’s Banking Sector

Durguti¹,

Kryeziu

2021

CES

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This study identifies and assesses the impact and effect of corporate governance (CG), as a good practice mechanism, as well as some specific financial indicators on the performance of the banking sector in Kosovo. The data used in the research are defined as secondary data that include nine (9) commercial banks and cover the period 2013–2020. The analysis applied to data processing is the dynamic approach through 2SLS estimation for the dependent variables ROA, ROE, and NIM. The results obtained at the end of the study show that all variables applied in this research, depending on the variable defined for evaluation, have a significant impact on the performance of the banking sector. The results also show that the most adequate measure for assessing a bank’s performance is the net interest margin (NIM). This research paves the way for debate and discussion on the governing structures of financial institutions and policymakers.

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Section: Board Diversitymentioning

confidence: 99%

Importance of Corporate Governance: Evidence from Kosovo’s Banking Sector

Durguti¹,

Kryeziu

2021

CES

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“…From the legitimation perspective, more diversified boards enable better macroenvironmental links for companies and with influential stakeholders [21] enhancing company legitimacy and the board's trustworthiness [41].…”

Section: Board Diversitymentioning

confidence: 99%

The Corporate Governance Practices: Evidence from MENA Countries

AlHares¹,

Dominic²,

Abed³

2019

TEL

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This study investigates the level of compliance and disclosure of corporate governance mechanisms in Middle East and North Africa countries. The study uses a panel data of 250 companies from MENA countries between 2009 and 2016. The ordinary least square multiple regression analysis technique is used to examine the relationships. Additionally, to alleviate the concern of potential endogeneity, we use fixed effect regression, two-stage least squares using instrumental variables. The results show that the level of voluntary compliance with and disclosure of corporate governance mechanisms among MENA countries varies substantially across countries and is low. The result is consistent with the neo-institutional theory. Future research could investigate more sets of firm-level internal CG mechanisms and country-level variables and use of weighted index. This study extends, as well as contributes to the extant CG literature by offering new evidence on the effect of corporate governance mechanisms among listed firms in ten different MENA countries within a neo-institutional theoretical perspective. The findings will help regulators and policy makers in their countries to pursue reforms to improve national governance quality.

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“…Researchers have shown great interest in the subject of corporate governance (CG) and its possible impact on firms. Consequently, several studies have examined the association between (CG) and firm value (AlHares et al, 2018a;Abdelhak et al, 2019;Gompers et al, 2003;Renders et al, 2010;Kumar & Zattoni, 2013); between (CG) and earnings management (Xie, Davidson, & DaDalt, 2003;AlHares, 2020a); between (CG) and compensation (Kaplan, 2012), and between (CG) and voluntary disclosure (Eng & Mak, 2003;AlHares & Ntim, 2017). However, by contrast, studies examining the extent to which institutional ownership drives cost of capital (COC) are rare.…”

Section: Introductionmentioning

confidence: 99%

Institutional Ownership and Cost of Capital: An International Study

AlHares¹,

Dominic²,

Abu-Asi³

2020

TEL

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This study investigates the impact of Institutional Ownership on Cost of Capital. A panel data of 200 companies from FORBES Global 2000 Leading Companies between 2010 and 2019 were used. The ordinary least square multiple regression analysis technique is used to examine the relationships. The findings are robust to alternative measures and endogeneities. The results show that institutional ownership is statistically positively related to cost of capital. This study extends, as well as contributes to the extant corporate governance literature by offering new evidence on the effect of institutional ownership on cost of capital. The findings will help regulators and policy-makers in evaluating the adequacy of the current corporate governance reforms to prevent management misconduct and scandals.

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A Cross-country Study of the Effects of Institutional Ownership on Credit Ratings

Abstract: A considerable number of studies have examined the relationship between corporate governance (CG) structures and corporate performance (e.g

Cited by 12 publications

References 26 publications

Importance of Corporate Governance: Evidence from Kosovo’s Banking Sector

Importance of Corporate Governance: Evidence from Kosovo’s Banking Sector

The Corporate Governance Practices: Evidence from MENA Countries

Institutional Ownership and Cost of Capital: An International Study

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