Impact of Corporate Governance and Financial Sustainability on Shareholder Value

Sulimany, Hamid Ghazi H; Ramakrishnan, Suresh; Chaudhry, Asim; Bazhair, Ayman Hassan

doi:10.25115/eea.v39i4.4318

Cited by 6 publications

(4 citation statements)

References 52 publications

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“…Nevertheless, the pooled effect size and the pooled confidence interval of the random effect model (0.13 [0.07 to 0.19]) are statistically significant. However, an examination of the forest plot (Figure 4) indicates that Bazhair (2021); Bazhair (2021); Habtoor (2021); Habtoor (2021); Habtoor (2021); Sulimany et al (2021) have wider 95% confidence intervals, meaning that the studies have less precision than the others. The predictors in these studies were board size and family-member board membership.…”

Section: Meta-analytic Model Testmentioning

confidence: 99%

Meta-Analytic Evidence for Board Characteristics as Correlates of Firm Performance Among Saudi Arabian Businesses

Algthami¹,

Hussin²

2022

IJARBSS

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Section: Meta-analytic Model Testmentioning

confidence: 99%

Meta-Analytic Evidence for Board Characteristics as Correlates of Firm Performance Among Saudi Arabian Businesses

Algthami¹,

Hussin²

2022

IJARBSS

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“…Governance is one of the central debates regarding the sustainability of MFIs in West African Monetary Unit countries (Wélé, 2009). Good governance can play a significant role in a company’s financial sustainability and firm value (Sulimany et al , 2021). It is seen as a basic building block of success for MFIs, as it helps them achieve their social and financial goals (Iqbal et al , 2019).…”

Section: Introductionmentioning

confidence: 99%

The influence of external governance mechanisms on the performance of microfinance institutions in Togo

Gadedjisso-Tossou

Kouevi

Gueyié

2023

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Purpose This paper aims to assess the effects of external governance mechanisms on the performance of microfinance institutions (MFIs) in Togo. Design/methodology/approach Using annual time series data from a sample of 30 MFIs during the period 2011–2015, the authors apply panel data econometrics in their estimations. Findings The results indicate that the notation by a rating agency positively and significantly affects the financial return of MFIs. The quality and the regularity of the audits negatively and significantly influence the financial performance (measured by return on assets and operating self-sufficiency) but favorably and significantly influence social performance (increased number of active borrowers (NAB) and reduced size of loans). Furthermore, supervision increases the amount of individual loans but decreases the NAB, which means deterioration in social performance. Overall, this paper shows that external governance mechanisms significantly affect the performance of Togolese MFIs, but with varying effects depending on the mechanism considered. Research limitations/implications The sample size of 30 MFIs is small, and the geographic coverage of the study is restricted to MFIs operating in the city of Lomé, Togo. The authors did not have access to the information regarding the portfolio at risk at 30 days, even though it is a measure of financial performance. Likewise, we did not have access to the appendices to the financial statements for the calculation of prudential ratios. This method, which consists of asking the institutions using a questionnaire if they comply with prudential standards, may be biased because this study cannot verify the authenticity of the responses given that the standards are quantitative. Practical implications The study findings advocate that improving the financial and social performance of MFIs requires improving the quality of external governance mechanisms. MFIs should then pay close attention to well-functioning external governance mechanisms. Social implications As MFIs are key social actors in a society, all mechanisms that contribute to their efficiency benefit society. Originality/value This study contributes to the corporate governance literature by showing that external governance mechanisms influence performance. These external mechanisms are complementary disciplinary measures to internal governance mechanisms and other tools.

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“…According to Sulimany et al (2021), a good corporate governance mechanism can play a vital role in the performance of microfinance institutions and in improving financial sustainability and share value of microfinance institutions. Corporate governance has become a topic of attention of educators, administrators and researchers over the many years.…”

Section: Introductionmentioning

confidence: 99%

Impact of Internal Corporate Governance Mechanism on Social Performance of Microfinance Institutions in Pakistan

Imran

Shafique

2022

JAFEE

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ABSTRACT Purpose: The purpose of this research is to examine the impact of internal corporate governance mechanisms on the social performance of microfinance institutions of Pakistan. Design/Methodology/Approach: A survey questionnaire was used to collect data. Data were collected manually and online (Google survey form). The data collected were analyzed through Smart PLS. Findings: The results showed that board of directors, board meetings and frequency of board meetings as components of internal corporate governance mechanism have a positive and significant impact on the social performance of microfinance institutions of Pakistan. Implications/Originality/Value: The originality and contribution of this study is that this is the first study that analyzed the impact of board of directors, board meetings and frequency of board meetings as a component of internal corporate governance mechanism on the social performance of microfinance institutions of Pakistan.

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Impact of Corporate Governance and Financial Sustainability on Shareholder Value

Cited by 6 publications

References 52 publications

Meta-Analytic Evidence for Board Characteristics as Correlates of Firm Performance Among Saudi Arabian Businesses

Meta-Analytic Evidence for Board Characteristics as Correlates of Firm Performance Among Saudi Arabian Businesses

The influence of external governance mechanisms on the performance of microfinance institutions in Togo

Impact of Internal Corporate Governance Mechanism on Social Performance of Microfinance Institutions in Pakistan

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