Corporate Governance and Firm Financial Performance: A Meta-Analysis Study

Ali, Waris; Ansari, Riaz Hussain; Memon, Muhammad Abdul Basit

doi:10.26710/jafee.v6i4.1401

Cited by 7 publications

(10 citation statements)

References 111 publications

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“…Many studies examine the insider ownership-performance relationship and find mixed results. Some studies find positive relation (Kaserer & Moldenhauer, 2008;Hu & Zhou, 2008;Katper et al, 2018), few studies observe negative (Fahlenbrach & Stulz, 2008;Shah et al, 2011;Ali et al, 2020;Vintilă & Gherghina, 2015). Yet some others find no relationship (Demsetz & Lehn, 1985;Abdullah et al, 2011;Hamza & Suman, 2018).…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 98%

“…Further, a large increase in managerial ownership is not related to firms' value. Ali et al (2020), based on the meta-analysis of 67 studies across developed and developing countries, conclude that inside shareholding strongly negatively affects firms' performance in developing countries. However, inside ownership seems not influential in affecting firms' performance in developed countries.…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

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Concomitant of Inside-Shareholding, Group Affiliation and Firm Value: Evidence From Pakistan

Waseemullah

Tahir

Kaleem

et al. 2021

Business: Theory and Practice

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The present study inspects the comparative effects of inside shareholding on firm value for group-affiliated firms and non-group-affiliated firms in Pakistan. The research uses the excess-value as a performance measure by employing a chop-shop approach in treatment effects regression model (TERM). The results reveal that lower level and higher level inside shareholding negatively associated with firms’ value. However, it positively relates at a moderate level. Also, inside shareholding-value relationship differs significantly for group-affiliated firms and non-group-affiliated firms. Firms with inside shareholding at lower level appear to more visible in business groups, and these firms show adverse firms’ value consistent with divergence of interest effect. Nevertheless, inside ownership firms at a higher level, namely standalone firms, negatively affect firm value with entrenchment effect. The findings also confirm non-linearity in inside shareholding-firm value relationships.

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Section: Literature Review and Hypotheses Developmentmentioning

confidence: 98%

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

Concomitant of Inside-Shareholding, Group Affiliation and Firm Value: Evidence From Pakistan

Waseemullah

Tahir

Kaleem

et al. 2021

Business: Theory and Practice

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“…The results are conflicting in case of developing countries where financial performance of firms appears to be negatively associated with board independence. This difference can be attributed to different institutional settings in both developed and developing countries (Ali et al, 2020). In China, the ownership concentration and degree of board independence are closely related to a firm's performance-but only in the case of larger companies.…”

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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“…They found that board structure and size had a significant impact on the firm's performance through monitoring. In their meta-analytic study, Ali et al (2020) have pointed out contrasting effects of board independence, board meetings and board structure on firm performance in CG studies carried out in the Indian context. Nevertheless, this is an indicator about the prominence of the structure and function of the board as well as the independence of directors and their role in contributing to firm performance.…”

Section: Narayana Murthy Committee (2003)mentioning

confidence: 99%

Impact of Corporate Governance on Organisational Performance of Indian Firms

Wasdani¹,

Vijaygopal

Manimala

et al. 2021

Indian Journal of Corporate Governance

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This research study explored the link between corporate governance practices (CGPs) and organisational performance in India, especially in the context of some major CG reforms that have been undertaken since the turn of the twenty-first century. The authors also attempted to understand in-depth the implications of these reforms for the companies. For assessing the link between CG practices and organisational performance, data were collected from a sample of 100 listed companies in India using an adapted version of the Institute of Company Secretaries of India (ICSI)’s questionnaire. Multilevel Factor Analysis (MFA) for scores along 5 CG sub-categories revealed 17 first-level and 4 second-level factors. Regression of organisational performance, measured using Compound Annual Growth Rate (CAGR), against these factors showed that the first-level factor representing corporate social responsibility and sustainability (CSRS) was a significant predictor of organisational performance. This finding is significant while considering the introduction of mandatory CG provisions for corporate social responsibility (CSR), applicable to companies meeting specified turnover and profitability thresholds according to CG regulations in India. The findings of this study open the debate on CG regulation and on mandatory and desirable norms in the Indian context. Eligible Indian companies must focus on the CG practice of investing in CSR initiatives through purpose-led CSRS interventions and their long-term benefits, rather than on viewing it as a mandatory CG provision that induces short-term expenses.

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Corporate Governance and Firm Financial Performance: A Meta-Analysis Study

Cited by 7 publications

References 111 publications

Concomitant of Inside-Shareholding, Group Affiliation and Firm Value: Evidence From Pakistan

Concomitant of Inside-Shareholding, Group Affiliation and Firm Value: Evidence From Pakistan

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

Impact of Corporate Governance on Organisational Performance of Indian Firms

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