Corporate governance characteristics and valuation: Inferences from quantile regression

Shawtari, Fekri Ali; Salem, Mohamed; Hussain, Hafezali Iqbal; Alaeddin, Omar; Thabit, Omer Bin

doi:10.1016/j.jefas.2016.06.004

Cited by 27 publications

(29 citation statements)

References 30 publications

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“…A model that has been proposed as an effective alternative to the two flawed techniques is quantile regression model (Rousseliere, 2014;Shawtari, Salem, Hussain, Alaeddin and Thabit, 2016). As the dependent variable takes the ranges between upper and lower values (0, 1), it results in having a number of percentiles of dependent variable, in which its relationship with corporate governance varies from one percentile to another.…”

Section: Control Variablesmentioning

confidence: 99%

“…Therefore, estimating the relationship based on the averaged figures or means may not reflect the reality and would hide some information due to heterogeneity of the data (Chi, Huang, and Xie, 2015). Consequently, it is believed that using the quantile regression would provide a better estimation for the relationship between dependent and independent variables as the analysis estimate the relationship at any point conditional on the distribution of the dependent variable (Shawtari et al, 2016).…”

Section: Control Variablesmentioning

confidence: 99%

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Corporate Governance and Financial Distress in the Banking Industry: Nigerian Experience

John¹,

Ogechukwu²

2018

JEBS

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The study investigates the effect of corporate governance on financial distress in the Nigerian banking industry and examines the discriminatory power of corporate governance mechanism of the board, audit committee, executive management and auditor in one model for financial distress prediction. Secondary data obtained from annual financial statements of twenty banks between 2005 and 2015 were used for the study. The data were analyzed using descriptive statistics and generalized quantile regression model. The empirical evidence from the study suggests that financially distressed banks are characterized by large board size with members who may not be well versed in banking complexities, chairmen and CEOs with significant shareholding both individually and collectively. Furthermore, the evidence also shows that distressed banks suffer major decline in customer deposits despite increase in size. The study concludes that financial distress can be caused by poor corporate governance mechanism.

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Section: Control Variablesmentioning

confidence: 99%

Section: Control Variablesmentioning

confidence: 99%

Corporate Governance and Financial Distress in the Banking Industry: Nigerian Experience

John¹,

Ogechukwu²

2018

JEBS

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“…La función de la GC es proteger los intereses de los stakeholders y, por tanto, conforme se evidencia en otras investigaciones, la misma tiene el foco centrado en el Consejo de Administración (Adams, Hermalin & Weisbach, 2010;Gaa, 2009;García-Torea, Fernández-Feijoo & De La Cuesta, 2016;Lanis & Richardson, 2011;Ness, Miesing & Kang, 2010); en los ejecutivos y sus compensaciones (Hong, Li & Minor, 2016;Lozano, Martínez & Pindado, 2016); en el control de las corporaciones y en la estructura de propiedad (Abdallah & Ismail, 2017;Ararat, Black & Yurtoglu, 2017;Ducassy & Guyot, 2017); así como se centra en las políticas económicas de las corporaciones (Akbar, et al, 2016;Briano-Turrent & Rodríguez-Ariza, 2016;Shawtari, et al, 2016;Villanueva-Villar, Rivo-López & Lago-Peñas, 2016).…”

Section: Gobernanza Corporativaunclassified

Gobernanza Corporativa y Gobernanza Corporativa de TI utilizando Analytic Hierarchy Process en la creación de valor

Vanti

Solana-González

Seibert

2018

RISTI

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ambas vinculadas con los objetivos corporativos porque presentan a la empresa de manera más segura y sostenible a los stakeholders y a la sociedad en general, aumentando su diferencial competitivo. En este sentido de crear valor para satisfacer las necesidades de las partes interesadas, estructurando sistémicamente la empresa y perfeccionando su proceso decisorio multicriterio es en el que este trabajo integra las dos gobernanzas a través de los criterios de Beneficios, Riesgos y Recursos y de diferentes sub-criterios y alternativas de decisión. Para ello se aplica el método Analytic Hierarchy Process para definir cuáles son las prioridades en GC y GCTI que más valor crean para las empresas. Esta cuestión ha sido respondida generando un modelo teóricopráctico estructurado por medio del Generador de Sistemas de Apoyo a la Decisión. Los resultados encontrados están relacionados con los criterios de Beneficios (55%), Recursos (24%) y Riesgos (21%). Las alternativas prioritarias están vinculadas con decisiones de: inversión y prioridades de TI (32,6%); necesidades de aplicaciones de negocios (24,6%); principios de TI (16,0%); arquitectura de TI (16,0%); e infraestructura de TI (10,8%).

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“…The third view on maturity structures is derived from the liquidity needs of firms where managers are seen to be balancing the need for liquidity which is obtained via long-term borrowing versus improvement in credit ratings as a result of borrowing in the short-term (Brick and Liao, 2017;Shawtari et al, 2016;Al Shubri and Jamil, 2017;Kamarudin et al, 2018). Finally, the signalling theory predicts that managers are further balancing the benefit arising positive signal sent to the market by borrowing in the short terms versus the higher costs associated with frequent need to renew debt contracts (Iqbal- Hussain and Guney, 2011;Khaw and Lee, 2016;Pontoh, 2017;.…”

Section: Motivating the Studymentioning

confidence: 99%

The Impact of Sharia Compliance on the Adjustment to Target Debt Maturity of Malaysian Firms

Hussain¹,

Shamsudin²,

Anwar³

et al. 2018

ERSJ

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This paper investigates the speed of adjustment to target debt maturity for a sample of Malaysian firms based on the sample period of 2007 to 2016. We examine the impact of Sharia compliance on the speed of adjustment to target debt maturity structure by grouping companies based on nature of compliance to Sharia requirements which is categorised by the Securities Commission of Malaysia. In line with our expectations, the analysis shows that firms classified as Sharia compliant tend to adjust at more rapid rates to target debt maturity when below target levels suggesting that compliant firms are able to issue long-term debt at cheaper levels relative to noncompliant counterparts. In addition, the reverse is observed when evaluating firms above target levels where non-compliant firms adjust at more rapid rates. Our findings indicate that compliant firms are able to raise long-term debt at cheaper rates relative to non-compliant firms given the captive market situation observed in the Islamic capital markets in Malaysia. This does however indicate the potential for higher agency costs as well as greater levels of information asymmetry for compliant firms relative to noncompliant firms given that non-compliant firms are more willing to reduce maturity structures to reach target levels when above target levels.

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Corporate governance characteristics and valuation: Inferences from quantile regression

Cited by 27 publications

References 30 publications

Corporate Governance and Financial Distress in the Banking Industry: Nigerian Experience

Corporate Governance and Financial Distress in the Banking Industry: Nigerian Experience

Gobernanza Corporativa y Gobernanza Corporativa de TI utilizando Analytic Hierarchy Process en la creación de valor

The Impact of Sharia Compliance on the Adjustment to Target Debt Maturity of Malaysian Firms

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