Institutional Investors, Corporate Governance and Firm Performance: Evidence from Emerging Economy

Maama, Haruna; Mkhize, Msizi; Kimea, Alfred James

doi:10.31920/1750-4562/2019/14n3a5

Cited by 22 publications

(6 citation statements)

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“…The ESG information were extracted from the annual reports of the firms. The annual reports were used because they are standardised corporate documents that reflect and communicate the actual financial and ESG information of an entity and are the primary source of information for stakeholders (Maama et al , 2019). Moreover, the study used a 10-year annual report of 67 banks in West Africa.…”

Section: Methods and Datamentioning

confidence: 99%

“…The ESG accounting practices of the banks were examined through a content analysis of the 602 annual reports. The content analysis has been recognised as the most suitable method of analysing the corporate reporting practices of firms because it is an effective method for gathering data that comprises codifying qualitative data in an anecdotal and literal form into groupings to develop quantitative scales of different levels of complexity (Pillay, 2019; Maama et al , 2019). The study developed a checklist of instruments to examine the ESG accounting practices of the banks based on the content elements of the Integrated Reporting Framework (IRF).…”

Section: Methods and Datamentioning

confidence: 99%

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Institutional environment and environmental, social and governance accounting among banks in West Africa

Maama

2020

MEDAR

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Purpose This study investigated the influence of institutional environment on the environmental, social and governance (ESG) accounting practices of banks in West Africa. The purpose of this study is to examine whether the size of an economy and the governance structure of a country is relevant for ESG accounting practice. Design/methodology/approach The study applied content analysis on 602 annual reports of 67 banks in 5 countries in West Africa. A generalised method of moments (GMM) estimation technique was used for the regression analysis. Findings The evidence showed that GDP has a positive and insignificant relationship with ESG reporting, suggesting that the size of an economy is not relevant for ESG accounting. The study further found that Corruption Perception Index has a positive and significant relationship with ESG accounting. This result implies that a country’s political environment is germane for ESG accounting. Firm-specific factors, such as firms’ size, value and age have positive and significant relationships with ESG accounting while net profit margin and leverage have negative relationships with ESG accounting. The study concludes that a country’s institutional environment influences the ESG accounting practices of its firms. Practical implications The governments of countries in West Africa must lay an enabling political and economic foundation to improve the accounting practices of firms, which is a critical factor for attracting investments. Originality/value The study contributes to the ESG accounting literature in developing countries which is found to be scarce.

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Section: Methods and Datamentioning

confidence: 99%

Section: Methods and Datamentioning

confidence: 99%

Institutional environment and environmental, social and governance accounting among banks in West Africa

Maama

2020

MEDAR

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“…According to agency theory, domestic institutional investors play a significant role in corporate governance. Maama et al (2019) argue that domestic institutional investors are experts who can exercise more effective control and auditing over managers when they hold large equity shares. In addition, institutional investors have an informational advantage, regarding the environment and industry characteristics over other shareholders.…”

Section: Source: Bank Al-maghrib-annual Reports On Banking Supervisionmentioning

confidence: 99%

Determinants of Bank Profitability in the Context of Financial Liberalization: Evidence from Morocco

Belcaid

Al‐Faryan

2023

Business Perspectives and Research

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This article aims, in the context of financial liberalization, to examine the impact of several internal and external factors in relation to the profitability of banks listed on the Moroccan stock exchange. The study uses the panel data method on a sample of the six banks with the largest market shares over the 2010–2019 period to investigate the influence of ownership structure, bank governance, capital structure, prudential regulation, and also a macroeconomic variation on bank profitability. Accordingly, the empirical results indicate a negative relationship between concentration, foreign ownership, and bank profitability. Further, high capital structure ratios, especially solvency, liquidity, and capitalization ratios appear to have an undesirable effect on the performance of Moroccan banks. In contrast, the impact of domestic institutional ownership is positive, implying that profitability is more favored by domestic ownership than by foreign ownership. Our findings also highlight the importance of independent directors and board size. Therefore, liberalizing ownership and opening up the board to the expertise of outside directors is essential for the banking sector’s development. In terms of policy implications, central banks and regulators need to ensure that banks rigorously adhere to specified leverage and fixed capital adequacy ratios while ensuring optimal liberalization for bank performance.

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“…In addition, the study included the variable of age to investigate the influence of a firm's experience in business on its level of tax planning. The age variable was measured as the number of years a corporation's stock had been traded on the stock market (Maama et al, 2019).…”

Section: Agementioning

confidence: 99%

Firm-specific Determinants of Aggressive Tax Management among East African Firms

Kimea

Mkhize

Maama

2023

IJEFI

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Since tax represents an inflow of revenue to the government and an outflow of revenue to firms, factors that influence the tax planning activities of firms have gained considerable attention among management, shareholders, policymakers and researchers. Following the impact of taxation on an economy and a firm, the study investigated the factors that influence aggressive tax management practices of firms listed in East African economies. Data were collected from 99 firms for an 11-year period, from 2008 to 2018. Both cash effective tax rate and accounting effective rate were used as measures of tax planning. Multiple regression models were used for the estimation. The study results showed that smaller firms are more tax aggressive compared with larger firms, which is consistent with the political cost theory. This finding may alert policymakers and regulatory authorities (for example, revenue authorities) that small firms are most likely to avoid paying taxes compared with larger firms. This might be associated with fewer regulations and enforcements imposed on this category of business. The evidence further demonstrated that profitable firms are less tax aggressive. Consistent with the political power theory, this study has confirmed the view that profitable firms have enough earnings to pay their taxes and thus are less tax aggressive. The study further found that older firms are less involved in tax avoidance. This study has policy implications as it will assist both policymakers and firm management in their decision-making. Shareholders and firm management would benefit by understanding why some firms successfully reduce their tax burden compared to other firms.

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Institutional Investors, Corporate Governance and Firm Performance: Evidence from Emerging Economy

Cited by 22 publications

References 0 publications

Institutional environment and environmental, social and governance accounting among banks in West Africa

Institutional environment and environmental, social and governance accounting among banks in West Africa

Determinants of Bank Profitability in the Context of Financial Liberalization: Evidence from Morocco

Firm-specific Determinants of Aggressive Tax Management among East African Firms

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