Impact Of Corporate Governance On Performance Of Companies (original) (raw)
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Implementing Good Corporate Governance to Improve Company Performance
International Journal of Academic Research in Business and Social Sciences, 2020
The purpose of this study is to determine the effect of the implementation of corporate governance mechanisms, namely independent variables consisting of the board of commissioners, managerial ownership, foreign ownership and audit quality. The dependent variable is company performance a control variable, which is company size. The data used in this study are secondary data involving 103 companies listed on the Indonesia Stock Exchange for the period 2015-2018. The data used in this study were analyzed using SPSS Version 25. The results of this study show that: the board of commissioners, Ownership's managerial, foreign ownership, and quality audit only variables that affect the performance ofthe company early while the variable size of the company can not be a variable control of the performance of the company.
A STUDY ON THE IMPACT OF CORPORATE GOVERNANCE ON FINANCIAL PERFORMANCE
The Cadbury Report defines Corporate Governance as the " system by which businesses are directed and controlled " (Cadbury, 1992). Corporate governance refers to generally accepted norms, customs, laws, habits and regulations determining the manner of running the company. Though concrete evidence does not substantiate the relationship between good corporate governance and creation of value for an organization, there is strong evidence in the past to affirm the destruction of good values by bad corporate governance. This descriptive research endeavours to establish the relationship between financial performance of firms and corporate governance of 30 Indian companies, listed on the BSE. Data pertaining to Return on Assets and Corporate Governance variables of Board Size (number of directors in board), Duality (if chairman and managing director are same), Remuneration to the board of directors, independence (Number of non-executive directors) and Board Ownership (Shareholding pattern of promoter and promoter's group) of these companies have been collected for the five year period of 01/04/2009 to 31/03/2014 from moneycontrol.com and CMIE data source and analysed using SPSS, employing the statistical tools of correlation, regression and Mean. Results reveal that the two Corporate Governance variables of Board Ownership and Duality are exerting a significant impact on ROA at 5% level.
Compliance With Modern Legislations Of Corporate Governance And Its Implementation In Companies
Montenegrin Journal of Economics, 2012
Corporate governance is a key element for improvement of investors' confidence, increase of competitiveness and improvement of economic growth. Corporate governance is on the top of agenda for international development as stated by James Wolfensohn (1998) that "the governance of the corporation is now as important in the world economy as the government of countries". Modern legislations of corporate governance is based on vast experiences from good practices and corporate scandals from many countries and presents standards for governance of companies accepted by investors, governments, companies and other stakeholders. Compliance with modern legislations of corporate governance is important for every company and government in order to grow, develop, attract investors, lower risks and avoid corporate scandals and lawsuits. In the paper it will be discussed about the compliance of legislations of the Republic of Srpska with modern legislations of corporate governance. Moreover, the paper will analyze implementation of corporate governance principles and legislations in companies in the Republic of Srpska. The results of implementation of the principles of corporate governance in companies in the Republic of Srpska will be presented using the Scorecard analysis for evaluation of the implementation of (good) practices and principles of corporate governance in companies which are listed on the Official market of the Banja Luka Stock Exchange.
Good Corporate Governance, Risiko Bisnis Dan Kinerja Keuangan Terhadap Nilai Perusahaan
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The objectives of this study are to analyze the influence of Good Corporate Governance (GCG), business risk and financial performance on firm value. Secondary data were obtained from 45 Companies listed in Indonesia Stock Exchange during period 2014,2015 and 2016. Other data were obtained from various sources such as journals, books and other related publications. Using a convenience sampling technique, total sample of 101 data from 34 companies were obtained. Structural Equation Modeling (SEM) analysis technique is used. The results show that Good Corporate Governance has no significant effect on financial performance and business risk had significant effect on financial performance. Further, it is found that Good Corporate Governance has no effect on firm value and financial performance has positive and significant effect on firm value. Good Corporate Governance has no effect on firm value means that indicator variable used in this study such as executive incentive, size of director and proportion of independent board has no positive signal for investor to increase company share value. This study is expected to give contribution to Good Corporate Governance implementation in Indonesia.
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The purpose of this research was to test and analyze the effect of good corporate governance are in proxy with an independent audit Committee (x 1) and independent Commissioners (x 2), also the owner of foreign capital (x 3) toward profitability. Pengamilan engineering sample on this research using purposive sample techniques. Methods of analysis used were multiple linear regression analysis. Research results showed the independent variable (the independent audit committee, independent Commissioner, and foreign capital ownership of the simultaneous effect on profitability. While in partial audit committee independent does not affect profitability, independent Commissioners have no effect toward profitability and ownership of the capital stock of the foreign influence on profitability. Keywords: independent audit committees, the independent Commissioner, foreign capital ownership
Ege Akademik Bakis (Ege Academic Review), 2015
Purpose of the study is to analyze the effect of corporate governance on financial performance. For this purpose, the relationship between the financial performance and corporate governance level of companies listed on XKURY index in the period of 2006-2012 have examined using panel data analysis. Financial data used in the study is derived from annual financial reports published on Public Disclosure Platform web site and corporate governance rating scores are derived from Turkish Corporate Governance Association. Results show that; there is a statistically meaningful and positive relationship between corporate governance rating score and Tobin's q value and also leverage ratio. On the other hand, results are showing that there is no meaningful relationship between corporate governance level and return on equity ratio, return on assets ratio, return on sales ratio and net profit.
The Effect of the Implementation of Good Corporate Governance on the Company Financial Performance
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This study aims to test and analyze the effect of implementation Good Corporate Governance on the company financial performance. The population in this study is all of the companies which registered as CGPI’s canidate of 3 years period (2012-2014) and listed in Indonesian Stock Exchange. Sampling using purposive sampling in order a total sample of 11 companies that meet the criteria of the study sample set. The results showed that implementation of GCG that respresented by scoring CGPI, and measurement of the company financial performance is based on profitability ratios which is ROA, ROE, and NPM. The results showed that implementation of GCG that respresented by scoring CGPI negatively affect and insignificant on ROA. While the implementation GCG has positive effect but insignificant on ROE. On the other hand, the implementation of GCG has positive effect and significant on the performance of financial company that measured by NPM. It means that implementation of GCG don’t give a ...