Corporate governance, capital structure and firm performance: Evidence from Thailand

Detthamrong, Umawadee; Chancharat, Nongnit; Vithessonthi, Chaiporn

doi:10.1016/j.ribaf.2017.07.011

Cited by 297 publications

(330 citation statements)

References 65 publications

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“…Hutchinson & Gul (2004) believe that for reflecting the results of management actions, account-based measures are preferable to market-based measures for evaluating the impact of corporate governance on firms' performance. Prior studies (e.g., (Akbar, Poletti-hughes, El-faitouri, & Zulfiqar, 2016;Detthamrong et al, 2017;Fiador, 2016;Mashayekhi & Mohammad, 2008;Mohamed et al, 2016;Pillai & Al-Malkawi, 2017) studied the relationship between corporate governance and firms' performance using some proxies for measuring the financial performance such as: return on assets, return on equity, return on investment, earning per share, and Tobin's Q. This study is adopting the same approach for measuring financial performance, taking some accounting and marketing based measures.…”

Section: Methodsmentioning

confidence: 99%

“…Board ownership and board composition have an impact on business failure (Priego & Merino, 2016). Detthamrong, Chancharat, & Vithessonthi, (2017) tried to assess the association between corporate governance and firms' performance of 493 firms in Thailand. They argued that there is no association between firms' performance and corporate governance.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Small audit committee size that consists of well-experienced members and financial expertise associates positively with firms' performance (Aldamen et al, 2012). Detthamrong et al (2017) investigated the impact of corporate governance on firms' performance of 493 non-financial companies in Thailand. It was found that audit committee size has an impact on firms' performance.…”

Section: Audit Committee Size and Firms' Performancementioning

confidence: 99%

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The impact of corporate governance practices on firm’s performance: An empirical evidence from Indian tourism sector

Yameen¹,

Farhan²,

Tabash³

2019

Journal of International Studies

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The growth of Indian companies in recent years has led to a change in the nature of the economy which attracted outsider investors from developed countries who demanded robust corporate governance practices from Indian companies which made regulators and competitors gave a great effort to restructure corporate governance. Therefore, this paper aims to investigate the effect of corporate governance practices on firms' performance, with a special reference to the Indian tourism sector. The study uses a panel dataset of 39 hotels listed on Bombay Stock Exchange (BSE) for the period from 2013/2014 to 2015/2016. The ordinary least square regression model is run for estimating the results. Findings show that board directors' size and audit committee's size negatively impact the performance of Indian hotels, while board directors' composition and diligence, the audit committee's composition and diligence, and foreign ownership positively affect the performance of Indian hotels measured by accounting proxies. Results also reveal that board directors' size, audit committee's size, and foreign ownership positively impact the Indian hotels' performance measured by marketing proxies, whereas board directors' composition; board directors' diligence; audit committee's composition; and audit committee's diligence have a negative impact on the performance of Indian hotels.

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Section: Methodsmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Audit Committee Size and Firms' Performancementioning

confidence: 99%

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The impact of corporate governance practices on firm’s performance: An empirical evidence from Indian tourism sector

Yameen¹,

Farhan²,

Tabash³

2019

Journal of International Studies

View full text Add to dashboard Cite

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“…Other papers investigated firm performance or firm value effect of different corporate governance's aspects such as the board of directors independence, ownership structure or even capital structure in various contexts, e.g., China (Xiao & Zhao, 2011;Chen & Jia, 2015), India (Shrivastav & Hagendorff, 2016;Arora & Sharma, 2016;Mohan & Chandramohan, 2018), Malaysia ( Jakpar et al, 2019;Jamaludin et al, 2018;P. Bhatt & R. Bhatt, 2017;Yusoff & Alhaji, 2012;Zabri et al, 2016), Indonesia (Herdjiono & Sari, 2017;Malelak & Basana, 2015), Thailand (Detthamrong et al, 2017;Hsu & Petchsakulwong, 2010) the Philippines (Mohammadpoor & Teehankee, 2014), but almost none of them integrated an accounting-based measure of agency costs in research model to directly test its effect on firm performance and value (though agency costs might somehow be involved in the discussions of these papers as a integral part of explaining corporate governance's affecting mechanism on firm performance and firm value). Therefore, the literature on the influence of agency costs on firm performance suggests a considerable research gap for emerging markets in Asia.…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

Impact of Agency Costs on Firm Performance: Evidence from Vietnam

Hoang

Tuan

Nha

et al. 2019

OMEE

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An assumption in agency costs theory is that agency costs can exert a negative impact on firm performance. In this study, we examine the impact of agency costs on firm performance of Vietnamese listed companies. Our sample includes 736 companies in Vietnam during the period from 2010 to 2015. We find that agency costs exert a negative impact on firm performance. Our results are robust to alternative econometric models, including an instrumental variables technique and a system generalized method of moment model. In addition, we show that a debt instrument can be a useful tool to reduce the negative impact of agency costs on firm performance.

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“…A Governança Corporativa tem sido reconhecida como um mecanismo v.8, n. 16, 2019 para alcançar a máxima eficiência, sustentabilidade, produtividade e lucratividade dentro das empresas(ANUP & COOPER, 2017; SANAD & AL-SARTAWI, 2016).Tomadores de decisão, como gestores, acionistas e potenciais investidores sempre buscam informações relevantes e precisas para minimizar os riscos associados às suas decisões(CHANG et al 2015). Assim, governos, empresas de auditoria e órgãos reguladores começaram a tomar medidas para melhorar sua estrutura de Governança Corporativa, levando ao público uma maior margem de segurança quanto à transparência da gestão(ALKHADASH & AL- SARTAWI, 2010; MOUSA & DESOKY, 2012.Consistente com essa visão, diversos autores da literatura internacional, relacionaram seus estudos ao tema(HERMASI, 2017; LAKSMI e KAMILA, 2018;ARMSTRONG et al, 2015;DETTHAMRONG et al, 2017;SHEHATA, 2016;SAUERWALD e PENG 2012; INYA, PSAROS e SEAMER, 2018).Hemarsi(2017)averiguou o impacto da Governança Corporativa na estrutura de capital em empresas canadenses, e verificou que empresas com menor alavancagem de mercado, apresentam Governança Corporativa mais consistente, além disso, a autora evidenciou que a alavancagem é impactada de forma positiva pela política de divulgação, fato até então desconhecido na literatura. Ao investigarem o efeito da boa Governança Corporativa, Laksmi e Kamila (2018) verificaram, em empresas de capital aberto da Indonésia, que gestão de resultados na divulgação da Responsabilidade Social Corporativa (RSC) é afetada positivamente pela propriedade gerencial, propriedade estatal e pelo comitê de auditoria.…”

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