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Corporate Governance Practices (corporate + governance_practice)
Selected AbstractsCorporate Governance in ASEAN Financial Corporations: reality or illusion?CORPORATE GOVERNANCE, Issue 2 2007Wiparat Chuanrommanee According to Credit Lyonnais Securities Asia, Singapore has the best corporate governance practices in Asia. Malaysia has had the biggest improvements in governance overtime. Thailand lags behind both in achieving appropriate governance. This paper considers recent developments in corporate governance through the analysis of the corporate websites of financial corporations in these countries. The study finds that the corporate governance practices of Thai, Malaysian and Singaporean financial corporations are consistent with international best practices. Corporate governance as presented in company documents probably does not actually reflect real corporate governance practices. These practices do not have an impact on company performance. The level of corporate governance reported is also not consistent with the ratings from international financial institutions such as Credit Lyonnais Securities Asia and Standard & Poor's. These findings suggest that corporate governance in ASEAN is more illusion than fact. [source] Corporate Governance in South Africa: a bellwether for the continent?CORPORATE GOVERNANCE, Issue 5 2006Melinda Vaughn The recent onslaught of corporate scandals has compelled the world to acknowledge the profound impact of corporate governance practices on the global economy. Corporate governance is of particular concern in developing economies, where the infusion of international investor capital and foreign aid is essential to economic stability and growth. This paper focuses attention on corporate governance initiatives in South Africa, given its significance as an emerging market, its potential leadership role on the African continent and the country's notable corporate governance reform since the collapse of apartheid in 1994. The evolution of the country's corporate structure and the forces driving corporate governance reform over the past decade will be examined, followed by a review of the most notable reform initiatives in place today. Finally, an assessment of those initiatives will be presented, along with recommendations concerning how South Africa's initiatives can serve as models of enhanced corporate governance standards for the African continent. [source] Continuity and Change in Corporate Governance: comparing Germany and JapanCORPORATE GOVERNANCE, Issue 3 2005Gregory Jackson Germany and Japan are often seen deviating from an economic model of shareholder control and thereby as being similar by virtue of their mutual contrast with the US. Given the common challenges for bank-based and stakeholder-oriented models of corporate governance, Germany,Japan comparison seems particularly timely. This article provides an introductory overview and analysis for the Special Issue by comparing recent developments in corporate law reform, banking and finance, and employment in Germany and Japan. While rejecting arguments for international convergence, we discuss this evidence of simultaneous continuity and change in corporate governance as a potential form of hybridisation of national models or renegotiation of stakeholder coalitions in German and Japanese firms. One consequence is the growing diversity of firm-level corporate governance practices within national systems. [source] Factors Associated with the Development of Board Sub,committeesCORPORATE GOVERNANCE, Issue 1 2002Elizabeth Carson This study examines the factors associated with the presence of board sub,committees, specifically audit, remuneration and nomination committees. Factors which are hypothesised in this study to affect sub,committee presence are Big 6 auditors, non,executive directors, non,executive chairmen, number of intercorporate relationships of the board and shareholder type. Company size, number of board members and leverage are employed as control variables as suggested by earlier research. An analysis of board sub,committees in the Australian corporate environment is relevant to other jurisdictions as there are no mandatory requirements on either board composition or board sub,committees. There is, however, a mandatory requirement to disclose corporate governance practices which allows for a study of this type to be reliably conducted. A sample of 361 Australian companies drawn from the largest 500 public companies is employed. Audit committee presence is found to be positively associated with Big 6 auditors and the number of intercorporate relationships of the directors of the board. Remuneration committees are also found to be associated with Big 6 auditors and intercorporate relationships and also higher levels of institutional investment. The presence of nomination committees is not associated with auditors, directors or investors, but is associated with board size and leverage. The study concludes that audit committees are a highly developed and mature governance mechanism, and that remuneration committees can be classed as a developing and maturing structure whilst nomination committees are relatively immature. [source] Principles of Corporate Governance in GreeceCORPORATE GOVERNANCE, Issue 2 2001Harilaos Mertzanis This article presents the reasons which led the business community in Greece to reconsider existing corporate governance practices of listed corporations in the Athens Stock Exchange, outlines the general rationale for the creation and adoption of specific recommendations for best corporate practice, presents the recommendations in full detail and finally provides suggestions for the required corporate legal reform. [source] Divestitures, wealth effects and corporate governanceACCOUNTING & FINANCE, Issue 2 2010Sian Owen G32; G34 Abstract We analyse the market reaction to divestiture decisions and determine the impact of corporate governance practices. We find the market reaction is significant and can be determined using internal governance mechanisms. We evaluate the determinants of the decision to sell using a control sample of firms displaying characteristics often associated with divestitures indicating that these firms may face the same incentives to divest but elect not to restructure in this manner. Our results suggest that a combination of strong internal and external governance may force managers to act in a manner that is incompatible with their personal desires. [source] Managerial incentives and corporate leverage: evidence from the United KingdomACCOUNTING & FINANCE, Issue 3 2009Chrisostomos Florackis G3; G32 Abstract This paper investigates the effect of managerial incentives and corporate governance on capital structure using a large sample of UK firms during the period 1999,2004. The analysis revolves around the view that managerial incentives are important in determining a firm's leverage. However, we argue that the exact impact of these incentives on leverage is likely to be determined by firm-specific governance characteristics. To conduct our investigation, we construct a simple corporate governance measure using detailed ownership and governance information. We present evidence of a significant non-monotonic relationship between executive ownership and leverage. There is also strong evidence suggesting that corporate governance practices have a significant impact on leverage. More importantly, the results reveal that the nature of the relation between executive ownership and leverage depends on the firm's corporate governance structure. [source] The Impact of the Sarbanes-Oxley Act on the Audit Fees of Australian Listed FirmsINTERNATIONAL JOURNAL OF AUDITING, Issue 2 2009Fazlina Mohd Salman The Sarbanes-Oxley Act (2002) (SOX) was enacted to improve the corporate governance practices of US firms. Significantly, foreign registrants traded on US stock exchanges are also required to comply with SOX. This study assesses the impact of the SOX legislation on non-US firms by examining audit fees for Australian firms with foreign registrant status in the US from 2001 to 2005, compared with audit fees for other Australian firms. The findings indicate that Australian companies issuing American Depositary Receipts (ADRs) incurred substantial increases in audit fees and Australian firms subject to the full provisions of SOX incurred larger increases in audit fees. These findings provide a broader understanding of the compliance costs for non-US firms subject to SOX and therefore inform both policy-makers and firms. [source] Do Investors Really Value Corporate Governance?JOURNAL OF INTERNATIONAL FINANCIAL MANAGEMENT & ACCOUNTING, Issue 2 2007Evidence from the Hong Kong Market To examine the relation between corporate governance and firm value, we develop an instrument to assess the corporate governance practices of listed companies in Hong Kong. Based on the Revised OECD Principles of Corporate Governance (OECD) and the Code of Best Practices (HKEx), we construct a corporate governance index (CGI) for Hong Kong listed companies. Unlike measures used in other studies, the CGI score reflects the presence of good corporate governance practices as well as variation in the quality of corporate governance practices. Empirical evidence shows that a company's market valuation is positively related to its overall CGI score, a composite measure of a firm's corporate governance practices. We also find that the transparency component of the CGI score drives the relation with market valuation. In summary, this study provides supporting evidence for the notion that, in Hong Kong, good corporate governance practices are consistent with value maximization. [source] The Need for Effective Communication with Market StakeholdersAUSTRALIAN ACCOUNTING REVIEW, Issue 32 2004Karen Hamilton Good corporate governance practices have become increasingly important in determining the cost of capital in global capital markets. The Australian Stock Exchange (ASX) aims to promote an environment of market confidence so that listed companies can obtain reasonably priced capital and maximise the value of their listing. As the market operator, the exchange has the ability to set and monitor disclosure standards and to support dialogue between companies and investors. However, a problem with corporate governance disclosures in Australia is that they have not delivered particularly meaningful information to investors about the performance of individual companies. [source] Corporate Governance Scoring Systems: What Do They Tell Us?AUSTRALIAN ACCOUNTING REVIEW, Issue 32 2004Pernilla Linden The failure of companies such as Enron in the United States, and One. Tel and HIH in Australia, and the collapse of Arthur Andersen have created a worldwide debate on the importance of good corporate governance practices. A number of accounting and consulting firms and rating agencies have responded to the debate by developing corporate governance scoring systems (CGSS). In this paper we seek evidence of whether CGSS convey any information about the financial characteristics and performance of companies. We find no evidence of any significant relationship between the corporate governance score and financial performance. However, we find a direct relationship between a firm's size and its corporate governance score. [source] Internal and External Corporate Governance: An Interface between an Organization and its EnvironmentBRITISH JOURNAL OF MANAGEMENT, Issue 3 2010Igor Filatotchev Most corporate governance research focuses on a universal link between corporate governance practices (e.g. shareholder activism, board independence) and performance outcomes, but neglects how interdependences between the organization and diverse environments lead to variations in the effectiveness of different corporate governance practices. This paper develops an organizational approach to corporate governance and focuses on two dominant streams that analyse internal and external governance mechanisms. First, we explore governance practices aimed at dealing with a complex set of problems internal to an organization, such as conflicts of interest between managers and shareholders, different types of shareholders, and block-holder opportunism. Second, we discuss the importance of formal and informal governance arrangements that organizations use in managing their relationships with external parties, such as alliance partners, overseas subsidiaries and network members. We argue that an integrated approach bringing these two streams together helps to develop a more holistic view on the effectiveness and efficiency of various corporate governance mechanisms, and suggests a number of avenues for future research. This paper also sets the scene for this thematic issue on corporate governance, scopes the field and introduces 11 papers which make significant contributions towards our understanding of corporate governance. [source] | ||||||||||