Corporate Governance and Financial Performance in the Emerging Markets: Do ADRs Perform any Better than Non-Cross-Listed Firms?

Sayari, Naz; Marcum, Bill

doi:10.5772/intechopen.72297

Cited by 3 publications

(4 citation statements)

References 74 publications

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“…It also protects the shareholders (Sheikh et al, 2018) and increases trust among stakeholders (Srairi, 2015). Sayari and Marcum (2017) and Chazi et al (2018) showed that governance leads to the good financial performance because it minimizes the internal risk and enhances the resilience of institutions to external stakeholders. Agency theory proposes that governance refers to reduce in the agency costs and consequently it improves the governance, disclosure and financial performance (Fama and Jensen, 1983).…”

Section: Introductionmentioning

confidence: 99%

Disclosure, Shariah governance and financial performance in Islamic banks

Abdallah

Bahloul

2021

AJEB

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PurposeThis study aims at investigating the impact of the disclosure and the Shariah governance on the financial performance in MENASA (Middle East, North Africa and Southeast Asia) Islamic banks.Design/methodology/approachWe use the Generalized Least Squares (GLS) regression models to check the interdependence relationship between the disclosure, the Shariah governance and the financial performance of 47 Islamic banks (IBs) from ten countries operating in MENASA region. The sample period is from 2012 to 2019. In these regressions models, Return on Assets (ROA) and Return on Equity (ROE) are the dependent variables. The disclosure and the Shariah governance indicators are the independent factors. To measure the Shariah governance, we use the three sub-indices, which are the Board of Directors (BOD), the Audit Committee (AC) and the Shariah Supervisory Board (SSB). Size, Leverage and Age of the bank are used as control variables. We also used The Generalized Method of Moments (GMM) and the three-stage least squares (3SLS) estimations for robustness check.FindingsResult shows a negative relationship between the disclosure and the two performance measures in IBs. Furthermore, as far as the governance indicators are concerned, we found that the BOD and AC, as well as the BOD and SSB, have a positive and significant impact on the ROA and ROE, respectively. This reveals that good governance had a significant association with higher performance in MENASA IBs.Originality/valueThe paper considers both IBs that adopt mandatory as well as voluntary AAOIFI standards and the GLS method to investigate the impact of the AAOIFI disclosure and the Shariah governance on ROA and ROE. Also, it uses the GMM and the 3SLS estimations for robustness check. It is relevant for researchers, policymakers and stakeholders concerned with IBs' performance.

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Section: Introductionmentioning

confidence: 99%

Disclosure, Shariah governance and financial performance in Islamic banks

Abdallah

Bahloul

2021

AJEB

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“…A variety of definitions have been offered to characterize financial management, for instance [16] describes financial management as the acquisition and use of financial resources and protection of equity capital from various sources of risk. Beside, financial management in the agriculture is defined as the economic study of the acquisition and use of capital in agriculture [17]. The overall task of the financial management is to improve financial performance by ensuring that the capital structure, budgeting and budgetary control, working capital management, and financial record keeping; all these components are important for all enterprises to be powerful financially [17][18][19].…”

Section: Literature Reviewmentioning

confidence: 99%

“…Beside, financial management in the agriculture is defined as the economic study of the acquisition and use of capital in agriculture [17]. The overall task of the financial management is to improve financial performance by ensuring that the capital structure, budgeting and budgetary control, working capital management, and financial record keeping; all these components are important for all enterprises to be powerful financially [17][18][19].…”

Section: Literature Reviewmentioning

confidence: 99%

Assessing the Effect of Financial Management Practices on Financial Performance and the Moderating Role of Farm and Farmers’ Socioeconomic Characteristics on Dairy Enterprises

Kataike,

Asiimwe,

Mawenu

et al. 2024

Financial Literacy in Today´s Global Market

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Financial management practices can positively affect the finance performance, but this relationship is also influenced by the farm and farmer characteristics, which moderates the effect size. Thus, this research investigates the effect financial management practices on financial performance and the moderating role of farm and farmers’ socioeconomic characteristics of dairy enterprises. Based on existing researches, four financial management practices were considered and financial performance we considered profitability, liquidity, and solvency. The variables considered for moderation are; respondents’ age, education, and enterprise age. A hierarchical multiple regression with primary data was used to test for the moderating effect. The results revealed that financial management practices and firm and farmer characteristics significantly interact better with financial performance among dairy farm enterprise. Thus, the effect of financial management practices on financial performance depends on the firm and farmers’ characteristics such as age and education of the farmers, as well as the number of years the dairy enterprise exist. Implying that if dairy enterprises manage their capital structures, working capital, budget, and financial records this will ultimately increase profitability, liquidity, and solvency while incorporating more farm and farmers’ characteristics.

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“…Corporate governance codes are better followed in developed countries and more rigorous corporate governance structure is linked with better operating (Sayari and Marcum, 2018). In developed countries, board meeting and female representation on board have significant positive.…”

Section: Corporate Governance (Cg) and Corporate Performance (Cp)mentioning

confidence: 99%

Corporate Governance and Corporate Performance with a Mediating Role of Corporate Social Responsibility—Case Study of Companies Listed on Saudi Arabian Exchange

Sarwar¹,

Al‐Faryan²,

Saleem³

2022

TEL

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The goal of the research was to find out how Corporate Governance, Corporate Social Responsibility, and Corporate Performance are linked in Saudi Arabian capital market. Domestic companies registered on the Arabian stock exchange make up the majority of the population. The research spans 11 years and includes data from 2010 to 2020. Data was extracted from audited annual reports of domestic companies listed on Saudi Arabian Exchange (SAE). The Hausman Test was used to determine that the Random Effect model was the best fit. To find endogeneity, we employed the Durbin-WU-Hausman test and the TSLS rather than the OLS. A model has been proposed to examine the relationship between corporate governance and performance, as well as that of corporate social responsibility (CSR) that acts as a partial mediator. This study has implications for the current and potential investors of the firms in the Kingdom Saudi Arabia in the context of choosing "socially participating" firms for their investment. Theoretically, this study also contributes to our understanding of some related concepts that have not been explored in previous researches concerning CG, CP and CSR. This can also be deduced from the finding that CSR partially contribute to enhance a firm's performance in the context of Saudi companies.

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Corporate Governance and Financial Performance in the Emerging Markets: Do ADRs Perform any Better than Non-Cross-Listed Firms?

Cited by 3 publications

References 74 publications

Disclosure, Shariah governance and financial performance in Islamic banks

Disclosure, Shariah governance and financial performance in Islamic banks

Assessing the Effect of Financial Management Practices on Financial Performance and the Moderating Role of Farm and Farmers’ Socioeconomic Characteristics on Dairy Enterprises

Corporate Governance and Corporate Performance with a Mediating Role of Corporate Social Responsibility—Case Study of Companies Listed on Saudi Arabian Exchange

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