The Impact of Corporate Governance on the Financial Outcomes of Global Diversification

Salama, Feras M.; Putnam, Karl B.

doi:10.1016/j.intacc.2013.07.003

Cited by 15 publications

(25 citation statements)

References 51 publications

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“…Mangunyi (2011) study on the bank in Kenya mentioned that better corporate governance leads to better firm performance. In addition, Salama and Putnam (2013) findings reveal that that globally diversified companies with higher quality corporate governance perform better and are traded at higher values. The study utilizes some variables to measure the quality of corporate governance: 1) board of directors' quality (leadership structure, board size, board meetings, board independence, busyness of board, and board-shares ownership); 2) audit committee quality (audit committee size and audit committee meetings); and 3) compensation committee quality (compensation committee size and compensation committee meetings).…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 98%

Independent Board, Audit Committee, Risk Committee, the Meeting Attendance level and Its Impact on the Performance: A Study of Listed Banks in Indonesia

Chou¹,

Buchdadi²

2017

IJBA

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This study determines the effect of good corporate governance on the performance of banks in Indonesia. The variables used are independent board (IB), the annual board meeting (BM), the percentage of annual board of director meeting attendance, the annual board-executive meeting (BEM), the percentage of annual board-executive meeting attendance, audit committee (AC), audit committee meeting (ACM), the percentage of annual audit committee meeting attendance, risk committee (RC), risk committee meeting (RCM), and the percentage of annual risk committee meeting attendance. The analysis technique employed in this study is two-stage least square (2SLS) panel data regression using return on asset (ROA), net interest margin ratio (NIM), and Tobin's Q as the proxies of bank performance. The data used are listed bank in Indonesia Capital Market between 2013 and 2015. The findings reveal that the independent board has a positive impact on net interest margin among the big scale bank. However, among the small scale bank the independent board of directors has the positive impact on the market value, but they will have the lack of information that could obstruct the accounting based profit of the bank. Moreover, the findings of this study also explain the important role of meeting attendance for the accounting based profitability of the bank. This study also found the critical role of the audit committee in the banking industry.

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Section: Literature Review and Hypothesis Developmentmentioning

confidence: 98%

Independent Board, Audit Committee, Risk Committee, the Meeting Attendance level and Its Impact on the Performance: A Study of Listed Banks in Indonesia

Chou¹,

Buchdadi²

2017

IJBA

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“…Specifically, the corporate governance quality measure is based on board size, SSB size, CEO power, board independence and audit committee size. In accordance with the procedures adopted by earlier research (e.g., Hudaib and Cooke, 2005;Salama and Putnam, 2013) Similarly, it is important to consider the effect of size on bank's investment strategies.…”

Section: [Insert Table 6 About Here]mentioning

confidence: 99%

Exploring the Nexus Between Human Capital, Corporate Governance and Performance: Evidence from Islamic Banks

2017

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This paper offers novel insight into the Islamic banking business model by considering the effect of investments in human capital and corporate governance features on the market performance of Islamic banks. Based on a sample of 47 banks (30 full-fledged Islamic banks and 17 Islamic Shariah-windows) operating in different regions during the 2005-2010 period, and controlling for firm-specific characteristics, this paper finds investments in human capital to have a significant positive impact on the market value in the pre-and post-financial crisis period. Based on a market measure, this paper finds board size and CEO power to have a significant positive impact, while the size of Shariah Supervisory Board (SSB) has the opposite effect on market performance. The results further reveal that the Islamic banking sector is not a homogeneous group, with full-fledged Islamic banks having lax corporate governance mechanisms and large size, while their counterparts, Islamic Shariah-windows, having strong corporate governance mechanisms tend to invest more in human capital to yield positive market value. Overall, the analysis suggests that the financial crisis may have further spurred the impact of investments in human capital on the market performance.

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“…Therefore, a negative relation is expected between capital expenditures and cash holdings. It is measured as capital expenditures divided by sales (Ramírez & Tadesse, 2009;Salamaa & Putnamb, 2013).…”

Section: Control Variablesmentioning

confidence: 99%

Determinants of Cash Holdings in Developed and Developing Countries

Rafinda

2018

JDM

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This paper aims to find out the determinants of amount of cash holdings in developed and developing countries. One of the reason is because majority of studies that exist only focus on developed countries such as US or UK. Therefore, it is important to study cash holdings in the context of developing countries as well. Samples are drawn from DataStream Database using a sample period between 2009-2014 by including recent output with firm selection criterion based on data availability of firms (Al-Najjar, 2013), whereas financial firms with SIC codes 6000-6799 were not included as well as utility firms with SIC codes 4000-4999, resulting in total sample of 5402 observations from 23 countries. EViews was employed for the regression analysis with amount of cash holdings as the dependent variable. The results show that most of the hypotheses are not confirmed because of insignificant results and/or unexpected signs of coefficients. As the research about cash holdings in developing countries is not extensive yet, it is possible that there are differences to be found between developed and developing countries.

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The Impact of Corporate Governance on the Financial Outcomes of Global Diversification

Cited by 15 publications

References 51 publications

Independent Board, Audit Committee, Risk Committee, the Meeting Attendance level and Its Impact on the Performance: A Study of Listed Banks in Indonesia

Independent Board, Audit Committee, Risk Committee, the Meeting Attendance level and Its Impact on the Performance: A Study of Listed Banks in Indonesia

Exploring the Nexus Between Human Capital, Corporate Governance and Performance: Evidence from Islamic Banks

Determinants of Cash Holdings in Developed and Developing Countries

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