The Influence of Corporate Governance and Corporate Social Responsibility on Financial Performancewith Efficiency as Mediating Variable

Jamali, Hisnol; Sutrisno, Tri; Subekti,; Assih, Prihat

doi:10.31227/osf.io/t796p

Cited by 8 publications

(8 citation statements)

References 29 publications

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“…While corporate governance theories were unique, their practical results were not conclusive. Numerous studies, particularly in developing countries, still show that there is no relationship between corporate governance practices and firm performance; for example, Aboagye and Otieku (2010) in Ghana, Jamali et al (2015) in Indonesia, Shahwan (2015) in Egypt and, finally, Arora and Sharma (2016) in India. In this context, both Shahwan (2015) and Bhatt and Bhatt (2017) ascribe this unclear association between corporate governance practices and firm performance to the voluntary, rather than mandatory, adoption of the corporate governance code.…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

The mediating role of intellectual capital in corporate governance and the corporate performance relationship

Shahwan

Fathalla

2020

IJOES

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Purpose This paper aims to investigate the impact of intellectual capital (IC) as a mediator variable on the association between corporate governance (CG) practices and firm performance. This study also examines bi-causality linkages between these variables. Design/methodology/approach The designated corporate governance index and the value-added intellectual coefficient method were used to assess the level of CG practices and the performance of IC. Tobin’s Q (TQ) and operating efficiency ratio were used to measure firm performance. Findings The aggregate CG score has a significant positive impact on the IC and the two measures of firm performance. However, the IC has only a partial mediation effect on the relationship between the aggregate corporate governance score and a firm’s operational efficiency ratio. The IC has partial and full mediation effects in the relationship between the sub-dimensions of corporate governance and the performance of Egyptian corporates. Moreover, a bi-causality relationship can be observed between CG and TQ. Research limitations/implications Generalizing the obtained results would require the sample size to be extended. Practical implications The findings should alert legislative institutions and practitioners of the need to comply with good CG practices and develop the efficiency of IC to elicit a firm’s superior performance. Originality/value This study is one of the first attempts to investigate the causality relationships and the mediation impact of IC on the relationship between CG practices and corporate performance in the Egyptian context.

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Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

The mediating role of intellectual capital in corporate governance and the corporate performance relationship

Shahwan

Fathalla

2020

IJOES

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“…Others related CSR activities to profitability (Dabbas and Al-rawashdeh, 2012;Persic and Markic, 2013;Khan and Majid, 2013;Malik and Nadeem, 2014;Jamali et al, 2015;Jamali et al, 2015;Kaur, 2015;Emezi, 2015). Moreover, some related CSR to shareholders' wealth (Mujahid and Abdullah, 2014;Dzhavdatovna et al, 2015), market share and performance (Khan and Majid, 2013;Al-Ani and Jamil, 2015), operating performance (Razafindrambinina and Sabran, 2014), credit, company's success and position (Mousavi, 2013), employee satisfaction and increased productivity and profitability (Togun and Nasieku, 2015) and to all financial performance measurements, such as return on assets, return on equity and return on sales (Bidhari et al, 2013) and total assets (Abdulrahman, 2014).…”

Section: Literature Reviewmentioning

confidence: 99%

Effect of corporate social responsibility on Jordan pharmaceutical industry’s business performance

Sharabati

2018

SRJ

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Purpose The purpose of this study is to investigate the effect of implementing corporate social responsibility (CSR) initiatives (social responsibility, economic responsibility and environmental responsibility) on Jordanian Pharmaceutical Manufacturing (JPM) industry’s business performance. Design/methodology/approach This study follows a quantitative descriptive design. The data were collected from 116 managers working at seven JPM organizations by questionnaire. After confirming validity and reliability of the tool, the statistical analysis means, standard deviations and t-values were used to test implementation and finally multiple regressions were used to test the hypothesis. Findings Results show that there are relationships between CSR variables, and all the three variables are strongly related to business performance. The results also indicate that the three sub-variables together affect JPM industry’s business performance. The environmental responsibility has the highest effect on JPM industry’s business performance, followed by the economic responsibility, and then the social responsibility. Research limitations/implications This study was directed toward pharmaceutical industry in Jordan. Generalizing the results to other industries and countries is questionable. Therefore, further research on other industries and countries will help mitigate the issue of generalizing conclusions. Practical implications CSR should be formulated clearly within JPM corporate strategy. The elements of CSR need to be integrated with the present performance management criteria, leadership development programs and organizational development programs, and a champion for CSR needs to be assigned. Social implications The CSR initiatives should be derived from local culture and match with international initiatives because CSR is the responsibility of every person. Originality/value Still the topic of CSR is not well implemented and does not have priority by Jordanian companies; therefore, this study may be considered as one of the few studies dedicated to study this topic and create awareness about it in Jordan.

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“…Some research (e.g., Mahrani & Soewarno, 2018;Rao, 2018;Shaji & Shajahan, 2020;Khan et al, 2021;He, 2021;Al-Faryan, 2021) discovered that CG had a considerable beneficial influence on financial performance, while others discovered that it had a negative impact (e.g., Latif et al, 2014;Zabri et al, 2016;Al-ahdal et al, 2020;He, 2021). Additionally, research has shown that CG has little impact on a company's performance financially, either directly or indirectly (Buallay et al, 2017;Jamali et al 2017;Al-ahdal et al, 2020). While the definitions of the dimensions of CG implementations were not agreed upon in the earlier studies.…”

Section: Literature Review and Hypothesis Corporate Governance (Cg)mentioning

confidence: 99%

The Moderating Role of Organizational Culture on the Relationship between Corporate Governance Dimensions and Financial Performance in Saudi Manufacturing Industry: A Theoretical Framework

Aldriweesh¹,

Zakuan²,

Bajuri³

et al. 2022

IJARAFMS

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Corporate governance (CG) is critical in developing a corporate culture of awareness, transparency, and openness. Despite this, previous studies have not yet reached an agreement on the most important dimensions of CG implementation and their correlation with the financial performance of financial and non-financial companies, and there is a scarcity of studies that examined variables such as organisational culture (OC) that could improve CG implementation and their relationship with firm financial performance, particularly in developing countries. This paper provides a brief overview of the dimensions of CG implementation, which are board properties, audit committee characteristics, and transparency and disclosure as the most important dimensions of CG implementation, and their impact on financial performance in developing-country manufacturing firms. Furthermore, the purpose of this study is to look into the role of OC as a moderating variable in the relationship between the implementation of CG dimensions (board properties, audit committee characteristics, and transparency and disclosure) and the financial performance of manufacturing firms in developing countries. A conceptual model was developed for this study based on previous literature, revealing that there is a theoretical correlation between board properties, audit committee characteristics, and transparency and disclosure as main dimensions of CG implementation and financial performance in developing countries' manufacturing firms, most notably, this study also theoretically demonstrated the role of OC as a primary determinant in affecting the association between CG dimension implementation and financial success in manufacturing enterprises in developing countries. However, to explore correlations in the suggested model, these theoretical conclusions require a survey of a sample of executive directors in manufacturing enterprises in a developing country such

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The Influence of Corporate Governance and Corporate Social Responsibility on Financial Performancewith Efficiency as Mediating Variable

Cited by 8 publications

References 29 publications

The mediating role of intellectual capital in corporate governance and the corporate performance relationship

The mediating role of intellectual capital in corporate governance and the corporate performance relationship

Effect of corporate social responsibility on Jordan pharmaceutical industry’s business performance

The Moderating Role of Organizational Culture on the Relationship between Corporate Governance Dimensions and Financial Performance in Saudi Manufacturing Industry: A Theoretical Framework

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