Corporate Governance and Performance of Banking Firms: Evidence from Asian Emerging Markets

Zulkafli, Abdul Hadi; Samad, Fazilah Abdul

doi:10.1016/s1569-3732(07)12003-x

Cited by 49 publications

(24 citation statements)

References 22 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…While studies such as Pfeffer and Salancik (1978), Pearce and Zahra (1991), Bozec and Dia (2005), Rebeiz and Salameh (2006) found positive relationship between independent directors and firm performance, Zulkafli andAbdul Samad (2007), Ponnu, (2008) and Adnan et al (2011) found the opposite. Shan and Mclver (2011) also found positive relationship but only in larger companies.…”

Section: Moderating Role Of Independent Directorsmentioning

confidence: 96%

“…On the contrary, found that the concentration of shares is negatively related with performance especially where it is in the hands of insiders or institutional shareholders. In another perspective, Zulkafli and Abdul Samad (2007) found that all the types of ownership are negatively related with firm performance.…”

Section: Literature Reviewmentioning

confidence: 99%

“…This indicates that there is no consensus on the best method of measuring performance. This study will use both accounting (ROA) and market measures of performance (Tobin's Q) similar to prior studies such as Abdullah, (2004), Mokhtar et al, (2009), Zulkafli and Abdul Samad (2007). Although 'Market measures of performance are more objective than accounting based measure' (Gani and Jermias, 2006;p.303), they are also considered inappropriate because they are extracted from annual reports which are historical and subject to manipulation by management (Ntim, 2009).…”

Section: Measure Of Firm Performancementioning

confidence: 99%

See 2 more Smart Citations

Ownership structure, independent directors and firm performance

Kallamu¹

2016

EJBME

View full text Add to dashboard Cite

The paper examined the moderating role of independent directors in the relationship between ownership structure and firm performance. Using a sample of 37 finance companies listed on the main market of Bursa Malaysia from 2007 to 2011, the result indicates a significant positive moderating effect of independent directors in the relationship between director ownership and ROA but a negative relationship based on Tobin's Q. The result means that in a company where directors have controlling shares, having independent directors on the board will enhance performance since there will be alignment of interest of board and shareholders. On the other hand, the independent directors influence firm performance negatively in firms with majority ownership by directors since the directors who are the majority shareholders will promote their interest over the interest of the shareholders. The study has provided evidence on the moderating role of independent directors in the relationship between ownership structure and firm performance. This suggests that independent directors influence the strength and direction of the relationship between ownership structure and firm performance.

show abstract

Section: Moderating Role Of Independent Directorsmentioning

confidence: 96%

Section: Literature Reviewmentioning

confidence: 99%

Section: Measure Of Firm Performancementioning

confidence: 99%

See 1 more Smart Citation

Ownership structure, independent directors and firm performance

Kallamu¹

2016

EJBME

View full text Add to dashboard Cite

show abstract

“…Ramano et al (2012) argue that when boards grow, they become less likely to function effectively (Jensen, 1993) may create a diminished sense of individual responsibility and might be more involved in bureaucratic problems. In the most recently empirical researches worldwide with reference to banking sector for different countries, results find no significant relationship between board size measure and banks performance (Busta, 2007;Zulkafli and Samad, 2007;Shelash Al-Hawary, 2011). Research has shown that bank holdings structures and activities may make a larger board more desirable, increases in board size due to additions of directors with subsidiary directorships may add value Romano et al (2012).…”

Section: Board Sizementioning

confidence: 96%

Impact of Corporate Governance on the Performance of Commercial Banks in Zimbabwe

Shungu¹,

Ngirande²,

Ndlovu³

2014

MJSS

View full text Add to dashboard Cite

show abstract

“…Banyak terjadi penjualan saham secara besar-besaran, bahkan saham perusahaan yang secara analisis fundamental memiliki kinerja yang baik, ternyata mengalami penurunan harga saham. Krisis ini tidak hanya sebagai akibat merosotnya nilai tukar mata uang, melainkan belum baiknya penerapan Good Corporate Governance di sektor keuangan khususnya perbankan (Zulkafli dan Samad, 2007) dan praktek bisnis secara umum (Tjager et al 2003). Isu mengenai corporate governance dilatarbelakangi adanya tuntutan transparansi dan pengungkapan.…”

unclassified