Does Corporate Governance Matter in Meeting and Beating Analysts’ Forecasts

Maztoul, Soumaya Ben Malek

doi:10.5539/ijbm.v9n2p276

Cited by 7 publications

(2 citation statements)

References 48 publications

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“…One of the most important governance mechanisms is board size as it indicates the participation of a board in company affairs and activities. The number of members on the board indicates the effectiveness in controlling and directing the company (Maztoul, 2014). Florackis (2008) claimed that small board size is likely to be better for coordination and communication.…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

The relationship between corporate governance and financial performance

Saidat

Silva

Seaman

2019

JFBM

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Purpose The purpose of this paper is to attempt to fill a research gap in the relationship between corporate governance mechanisms and financial performance of family and non-family firms’ by using a sample of non-financial firms listed on Amman Stock Exchange (ASE) for the period 2009–2015. Design/methodology/approach This research employs a quantitative method using data that include corporate governance mechanisms, firm characteristics and financial ratios of a sample of Jordanian listed firms in the ASE over the period 2009–2015. The sample covers all companies that have been part of the ASE during the period including both family and non-family firms, part of total of 228 companies listed on the ASE as of 31 December 2015. The study used accounting-based measures such as return on asset (ROA) and market-based measures such as Tobin’s Q as proxies for corporate financial performance. Findings The study found that board size both in term of Tobin’s Q and ROA has a negative relationship with the performance of family firms. In non-family firms, there is no systematic relationship with corporate performance. There is a strong relationship between corporate performance and independent directors in non-family firms. In addition, the authors found some evidence for a relationship between performance and independent directors in family firms. Also, results indicated that ownership concentration has an insignificant correlation with corporate performance and in family firms has a negative and significant correlation with Tobin’s Q. There is a significant relationship between local investors’ ownership and corporate performance as measured by Tobin’s Q in family and non-family firms. Originality/value Studies concerned with the effect of corporate governance on firm performance remains comparatively under-researched in Middle East countries and Jordan in particular (Najib, 2007; Omet, 2004; Marashdeh, 2014). Moreover, studies investigating whether the practice of corporate governance has the same impact on family firm performance are still relatively less well known than those when ownership is distributed widely (non-family firms) (Jaggi, Leung and Gul, 2009; Prencipe and Bar-Yosef, 2011). This research is seeking to fill this current gap in Jordan, which is one of the developing countries with an emerging economics that are very poorly represented in the literature.

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Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

The relationship between corporate governance and financial performance

Saidat

Silva

Seaman

2019

JFBM

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“…One of the most important governance mechanisms is the size of the board, as indicated by the board's participation in the company's interests and activities. The number of members on the board indicates effectiveness in controlling and directing the company (Maztoul, 2014). However, the research by Palaniappan (2017) revealed that the size of the board included in corporate governance has a negative relationship with the company's financial performance.…”

Section: Literature Reviewmentioning

confidence: 99%

Finance Performance: Reinvestigation through Intellectual Capital and Good Corporate Governance

Dewi

Sudarmawan

2022

MIEC

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Intellectual Capital (IC) management needs to be carried out in banking because knowledge is an important need for a company whose operational activities directly interact with customers, so existing human resources must have adequate capabilities and knowledge. In addition to knowledge management, implementing Good Corporate Governance (GCG) to create company efficiency and reduce conflicts that arise provides transparency and legitimacy of company activities. This study aims to determine the influence of IC development on the financial performance of Islamic banking and to determine the impact of implementing GCG on the financial performance of Islamic banking in Indonesia. The results showed that simultaneously the variables of IC and GCG had a significant effect on financial performance (ROA). These findings indicate that Islamic banks need to manage knowledge sourced from their employees. In addition, this finding also explains that Islamic banking in Indonesia needs to consider the determination of the number of directors to maximize the duties and responsibilities of the directors in Islamic banking supervision.

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