Reward for failure and executive compensation in institutional investors

Loyola, Gino; Portilla, Yolanda

doi:10.1016/j.frl.2014.09.001

Cited by 5 publications

(1 citation statement)

References 35 publications

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“…Corporate governance has been extensively studied (Loyola and Portilla 2014;Core et al 2008;Soepriyanto et al 2021;Fosberg 2004;Setiawan et al 2016;Rutherford and Buchholtz 2007;Chen and Liu 2013;Feng et al 2020;Tian and Lau 2001;Ghabri 2022;Core et al 1999). Those studies examined the principles proposed, concerns regarding shareholder rights, equal treatment of shareholders, disclosure and transparency, the duties and responsibilities of the board of directors, and stakeholder rights.…”

Section: Corporate Governance Factors That Influence Investment Decis...mentioning

confidence: 99%

Examining the Impact of Corporate Governance on Investors and Investee Companies: Evidence from Yemen

2023

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The purpose of this study was to determine whether corporate governance is an important and effective technique for enhancing investors’ confidence in existing and prospective companies and for creating opportunities for safe investment in Yemen. A survey was conducted among certified public accountants to assess the importance of corporate governance. We employed regression analysis to test our hypothesis. According to the results of the study, corporate governance is an essential component of success for companies, and those firms that apply corporate governance best practices are highly regarded. Additionally, the findings suggest that regulators, policymakers, and standard-setters should raise awareness of the importance of protecting shareholders’ rights by providing seminars and courses for Yemeni media, unions, and professional associations. Moreover, in an environment of uncertainty there is a reluctance to invest and a prevalent tendency to invest in real estate. Furthermore, the results indicate that corporate governance is not practiced by all companies but only to a limited extent by some joint-stock companies. Most of the Yemeni companies that have adopted CG are joint-stock companies, so investors prefer to invest in these companies. The findings of this study provide valuable insights for regulators, practitioners, and academicians. We recommend that this survey be extended to a larger sample, including supervisory managers of companies. This study provides an insightful contribution, because it clarifies the importance of corporate governance for Yemeni investors and investee companies.

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