Corporate Governance and Firm’s Profitability: An Emerging Economy-based Investigation

Meah, Mohammad Rajon; Chaudhory, Nasir Uddin

doi:10.1177/0974686219836544

Cited by 16 publications

(6 citation statements)

References 33 publications

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“…In addition, Campbell and Minguez-Vera (2010) and Wang and Clift (2009) explain that the conflicting results may have arisen from poor estimation methods, small sample size, short term view of performance and lack of control for endogeneity between gender diversity and firm performance. In Bangladesh, Meah and Chaudhory (2019), Muttakin et al (2012) and Rashid and Pervin (2019) find positive impact of female directors on firm performance.…”

Section: Board Gender Diversitymentioning

confidence: 99%

Audit Characteristics, Gender Diversity and Firm Performance: Evidence from a Developing Economy

Meah

Sen

Ali³

2021

Indian Journal of Corporate Governance

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This study aims to explore the impact of audit characteristics and gender diversity on firm performance across family and non-family firms in Bangladesh. Using data of 61 non-family and 48 family firms from 2013 to 2019, this study applies system generalised method of moments approach to carry out regression analysis. Next, the consistency of results is detected by a full sample interaction analysis. In case of non-family firm, this study documents that Big4 audit firms (Big4) and female directors on board (FDR) have significant positive impact on firm performance. Conversely, audit meeting frequency (AMF) contributes negatively to the firm performance. Unfortunately, audit committee size (ACS) and audit committee independence (ACI) have no significant contribution on firm performance. In case of family firms, this study finds that ACS and ACI have significant negative impact on firm performance. Besides, Big4, AMF and FDR have no significant contribution on firm performance. It reflects that corporate governance mechanisms in family firm are not working well and even to some extent detrimental to the firm performance. It, ultimately, demands for reforms in corporate governance framework and incorporating new dimensions for family firms.

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Section: Board Gender Diversitymentioning

confidence: 99%

Audit Characteristics, Gender Diversity and Firm Performance: Evidence from a Developing Economy

Meah

Sen

Ali³

2021

Indian Journal of Corporate Governance

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“…The current study further examined institutional ownership and profitability relationships. Meah and Chaudhory (2019) examined corporate governance and profitability nexus for manufacturing firms listed at the Dhaka Stock Exchange, Bangladesh. The corporate governance variables considered were female directors, the board size, director ownership, and family duality.…”

Section: Theoretical Reviewmentioning

confidence: 99%

Corporate Governance and Profitability of Manufacturing and Allied Firms Listed at the Nairobi Securities Exchange, Kenya

Akims,

Pyoko

2023

TUJ

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The study examined the effect of corporate governance on the profitability of manufacturing and allied firms listed at the Nairobi Securities Exchange, Kenya. The study was anchored by agency theory and stakeholder theory. Nine manufacturing and allied firms listed at the Nairobi Securities Exchange, Kenya constituted the target population and a census approach was adopted. The study found that board size had significant implications on the profitability of manufacturing and allied firms listed at the Nairobi Securities Exchange, Kenya (p= 0.009, β= -0.023). It was established that board independence is significant in predicting profitability (p= 0.011, β= -0.001). External audit quality had a significant effect on profitability (p= 0.001, β= 0.258). Institutional ownership was significant in determining profitability (p= 0.000, β= 0.002). The study recommends that listed manufacturing and allied firms should ensure that an effective board is constituted which is optimum in size. The study further recommends that a blended board should be ensured comprising of both executive and non-executive directors which reflects the level of independence of the board. It was also recommended that firms should ensure that a highly reputable external auditor is appointed. In addition, firms should strive towards having a higher proportion of institutional shareholding to outstanding shareholdings. Given the 53.53 percent unexplained variation in profitability, further studies on manufacturing and allied firms listed at the Nairobi Securities Exchange, Kenya can consider other corporate governance attributes.

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“…Penelitian terdahulu mengenai keberadaan dewan komisaris independen dalam hubungannya dengan kinerja perusahaan masih menunjukkan hasil yang belum pasti, Meah & Chaudhory (2019) dan Tulung & Ramdani (2018) menemukan adanya dewan komisaris independen menunjukkan hubungan positif terhadap kinerja perusahaan, dan menganggap semakin banyak dewan independen akan semakin baik bagi perusahaan, sedangkan Adeabah et al ( 2019) justru menemukan sebaliknya.…”

Section: Pengembangan Hipotesisunclassified

Pengaruh Struktur Kepemilikan Terhadap Kinerja Perusahaan Dimoderasi Oleh Karakteristik Dewan Komisaris

Maulana

Wildan

Andriani

2021

JAM

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This study was conducted to examine the effect of proxied ownership structure using institutional ownership, foreign ownership and managerial ownership variables which are moderated by the characteristics of the board of commissioners as proxied by the size of the board of commissioners, and the proportion of independent board of commissioners on company performance as measured by the firm's financial performance. Proxied by return on assets and return on equity and firm value proxied by Tobin's Q and market to book ratio. With a total of 81 samples from financial service companies listed on the IDX in 2018 tested using WarpPLS 7.0, the researchers found that ownership structure has a negative effect on financial performance and firm value, the characteristics of the board of commissioners have a positive effect on financial performance and firm value, and only interaction characteristics the board of commissioners in the relationship between ownership structure and financial performance which can be a moderating variable. Keywords: Ownership Structure, Firm Performance, and Characteristics of The Board of Commissioners.

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Corporate Governance and Firm’s Profitability: An Emerging Economy-based Investigation

Cited by 16 publications

References 33 publications

Audit Characteristics, Gender Diversity and Firm Performance: Evidence from a Developing Economy

Audit Characteristics, Gender Diversity and Firm Performance: Evidence from a Developing Economy

Corporate Governance and Profitability of Manufacturing and Allied Firms Listed at the Nairobi Securities Exchange, Kenya

Pengaruh Struktur Kepemilikan Terhadap Kinerja Perusahaan Dimoderasi Oleh Karakteristik Dewan Komisaris

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