Print ISSN: 2204-1990

Online ISSN: 1323-6903

Keywords : Corporate governance


Impact of Corporate Governance on the Financial Performance of Islamic Banks in Pakistan

Taimoor Ali Shah, Dr. Naveed Shehzad, Umair Ahmad, Wajid Mehmood

Journal of Contemporary Issues in Business and Government, 2022, Volume 28, Issue 3, Pages 97-111
DOI: 10.47750/cibg.2022.28.03.010

The objective of the study was to examine the impact of corporate governance on the financial
performance of Islamic banks working in Pakistan. The population of the study was Islamic
banks working in Pakistan and seven (7) Banks were selected as a sample size through simple
random sampling technique. The dependent variable was return on assets while independent
variables were board size, female director, age of experience, firm size and productivity. Data
was collected from the annual reports of Islamic banks websites for the year 2017 to 2021. Panel Diagnostic Test, regression analysis and correlation matrix were used for analysis. Results reflect that firm size, board size and productivity were found positively significant. While age of
experience was inversely significant and female director was found statistically insignificant.
The magnitude of firm size was high as compared to other significant variables. However,
female director was found insignificant so it has no impact on return on assets

THE INFLUENCE OF CORPORATE GOVERNANCE ON FIRM PROFITABILITY: A STUDY OF THE FIRMS LISTED ON INDIA’S NSE 500

Ruby Mary Notts, Dr. Amitava Roy

Journal of Contemporary Issues in Business and Government, 2022, Volume 28, Issue 3, Pages 633-651
DOI: 10.47750/cibg.2022.28.03.049

A robust corporate governance is imperative in creating sound corporate culture of
consciousness, lucidity and openness which in turn enables a company's management achieve
its objectives in a way that maximizes profits. The given studyaims to empirically evaluate
the association of firm profitabilitywith various corporate governance mechanisms, for firms
traded on the NSE 500. The time period for our studyranges from 2013 to 2020 - using
Ordinary Least Squares as the method of estimation. We used two estimates of firm
profitability – Return on Assets (ROA) and Net Profit Margin (NPM). The analysis
established significant favourable association between ROA and independent directors’as a
proportion of the boards, total number of board meetings held, number of board committees
and audit committee presence.With respect to NPM, results showed that it was significantly
and favourably impacted by the proportion of non-executive directors on the boards, total
number of board meetings, total number of board committees prevalent in the company and
firm size. However, board size,audit committee presence and independent directors as a
proportion ofaudit committees indicated a negative impact on NPM.

Corporate Governance - Impact on Financial Performance of Selected ITCompanies in Bengaluru City

Mr S.Chandra Sekhar, Dr. D. Ashalatha, Dr.Monika Gorkhe

Journal of Contemporary Issues in Business and Government, 2022, Volume 28, Issue 3, Pages 843-848
DOI: 10.47750/cibg.2022.28.02.068

Corporate governance norms in India have evolved well over the year’s post-economic liberalization, with SEBI
constituting a number of committees to suggest codes of conduct for good governance of corporate organizations.
Corporate governance has received much attention in the accounting literature, with studies focusing on the
influence of corporate governance on corporate financial performance in selected companies in Bangalore city. The
association between quality of corporate governance and firms' profitability is quite major focus in corporate
governance improvement. Better governed firms might have more efficient operations, resulting in a higher
expected future management. The purpose of this study was to determine the influence of corporate governance on
corporate financial performance in selected companies in Bangalore city. Primary data collected through structured
questionnaire from selected IT companies (Tech Mahindra, TCS, Infosys, Cap Gemini, Caterpillar, and Wipro) in
Bangalore city. Study found that there is a positive correlation between corporate board size, corporate board
composition, corporate policy, corporate independent committees and corporate financial performance. The study
concluded that Organization should choose a sizeable board which is efficient and well informed in matters
corporate governance so as to strengthen their corporate financial performance, organizations should have an
excellent board composition full of individuals with diverse expertise and knowledge so as to enhance better
corporate governance.

Corporate Social Responsibility: The disclosure of an Inclusive Regulatory Model

Farqaleet Khokhar, Ali Asad, Dr. Khawar Naheed, Fatima Mazhar

Journal of Contemporary Issues in Business and Government, 2022, Volume 28, Issue 3, Pages 137-148
DOI: 10.47750/cibg.2022.28.03.014

Corporate Social Responsibility has great significance because due to it the corporate bodies not
only consider the interest of the stakeholders but also consider the environmental, economic, and
social impact of their actions. CSR has a broad spectrum and it is a ―voluntary action‖ that the
companies or businesses take to address the issues related to ―corporate irresponsible behavior‖
regarding social issues including labour, environmental, abuses of human rights. However, the
piece inspects CSR as the mechanism for business operations, from the manufacturing and
delivery of services or products to generating and promoting the interaction with the stakeholders
of the company in a way to protect and encourage moral values or ethical conduct, legal
requirements, and social expectations. For this purpose, the paper discusses the relationship
between CSR and corporate governance to find the convergence between both. CSR in current
times is weakly promoted due to the fact that the initiatives of CSR are existing without any
socio-economic developmental impact. To fill that gap this paper conducts qualitative research
and the research piece is an endeavor to examine CSR regulation including prescriptive and selfregulation. The piece explores the limitation of CSR regulation and constructs a framework for enhancing the accountability mechanism in CSR practices. The paper provides a more dynamic, responsive, effective, and coherent framework called the ―inclusive regulatory model.‖

IMPACT OF CORPORATE GOVERNANCE & AUDIT QUALITY ON FIRMS FINANCIAL INFORMANTIONS

Sajjad Ali Khan, Dr. Sirajud Din, Victoria Joseph

Journal of Contemporary Issues in Business and Government, 2022, Volume 28, Issue 1, Pages 335-352
DOI: 10.47750/cibg.2022.28.01.021

The aim of this research paper is to find how and when Corporate Governance and Audit Quality
may control the impact of Financial Market Crises Risk on firms Financial Information through
the mediator Financial Leverage. Three fundamental theories were used for the research i.e.
Financial Market Theory, Corporate Governance Theory and Audit Quality Theory. The impact
was tested through the Mediation Model# 4 of SPSS Hayes Process Regression Analysis. The
Sample Size of 363 observations was taken from the Karachi Stock Exchange enlisted
companies for the period of 2005 to 2015. The companies were rankedfor quantification after
studying and analyzing the performance of the companies in their published Financial
Statements. The outcome of the testing model showed that both the Independent Variables i.e.
Corporate Governance and Audit Quality have normal effect on the Firms Financial Information
jointly. It was found that Mediation effect exists between the relationship of Corporate
Governance, Audit Quality and Financial Information as the p-value is significant which means
that Corporate Governance and Audit Quality can minimize or control the effect of Financial
Market Crises Risk on the dependent variable Financial Information through the mediator
Financial Leverage. The practical application of the research will equip all the stakeholders about
the significance of the Audit Quality and Corporate Governance impact on firm Financial
Information.The stakeholders can utilize this mechanism of both Independent Variables
Corporate Governance and Audit Quality separately for minimizingFinancialMarket Crises Risk.

Tunneling and Propping through Related Party Transactions in Pakistani Family Business Groups

Shahid Hussain, Nabeel Safdar, Muhammad Abbas

Journal of Contemporary Issues in Business and Government, 2022, Volume 28, Issue 1, Pages 313-334

The aim of this study is to analyze the agency issues like tunneling and propping while
examining the impact of Related Party Transactions (RPTs) in firms with respect to family
business groups of Pakistan.This study used a sample of 326 non-financial firms listed on
Pakistan Stock Exchange in the period from 2008 to 2013 by examination of over four thousand
five hundred RPTs. For data analysis, panel regression models with both firm and year fixed
effects as well as logit model are applied.The findings depict that controlling shareholder in
firms affiliated with family business groups mostly tunnel resources through cash payments and
trade of goods & services and prop up resources through cash receipts transactions. The study
also finds that tunneling related transactions are more significant in firms that have larger size,
market value and other receivables balances. Whereas, propping related transactions are
dominant in highly leveraged firms with lower return on assets.This study is limited to Pakistani
nonfinancial sector. The results implied that interests of minority shareholders are considerably
affected by the hidden operations of the majority shareholders in family business group firms.
The minority shareholders need to be more cognizant of the family business group firms’
ownership structures, board members, directors’ shareholding and related party transactions.This study provides new insights on ‘propping’ besides ‘tunneling’ in Pakistani family-owned companies, which has received little attention in the context of emerging economies, and Pakistan.

Insight into Corporate Governance in Islamic Finance: A Systematic Review of Literature

Quanita Rehman, Dr. Akhtiar Ali

Journal of Contemporary Issues in Business and Government, 2022, Volume 28, Issue 1, Pages 125-149
DOI: 10.47750/cibg.2022.28.01.009

The concept of corporate governance (CG) in Islamic banking (IB) has gained attention of researchers in the last two decades. This review paper aims to provide broad and comprehensive review of existing literature on CG in Islamic banks(IBs). The research on CG in IBs has mainly been empirical conducted mostly in Gulf Cooperation Council (GCC) and South Eastern region with a few conceptual studies. A sound theoretical base for Islamic CG studies is still missing. The results suggesting role of Shariah Supervision are elusive. The impact of emerging economies and country legal systems as antecedents of CG have not been thoroughly covered in the literature. In the field of research this topic needs to be covered more rigorously and exhaustively. CG in IBs is an emerging area of research and lack comprehensive review studies. Owing to the fact, this review paper aims to provide broad, comprehensive review of existing literature on corporate governance in IBs. which can be employed for further research about the subject matter.

Relationship of Company Age and Industry Sector with Financial Performance –An Indian Evidence

Deepti Sehrawat Verma, Dr. Anand Sharma

Journal of Contemporary Issues in Business and Government, 2021, Volume 27, Issue 6, Pages 1652-1665
DOI: 10.47750/cibg.2021.27.06.131

The purpose of this paper is to analyze the relationship of the age of companies and the industry sector on financial performance variables for NIFTY 100 Index companies. The minimum age of a company in NIFTY 100 index was seven years and the maximum age is 114 years. Further, these companies have been divided into nine industry sectors. To analyze the relationship, sixteen financial performance variables have been taken for the financial year 2019.
It has been found that older companies have better performance in terms of return ratios, stakeholders-related ratios, leverage, replacement ratios. Younger companies have better operational efficiency and market valuation. It has also been observed that there is a significant difference in return ratios for Telecom and Utility, Financial, Industrial, Consumer staples, IT, Energy and Consumer Discretionary Sectors. The findings of this paper will enable investors in making prudent investment decisions and will enable them to understand how the age and industry of a company impact the financial performance of companies in India

The Accounting Environment And The Development Of Financial Reports In Commercial Banks Of Pakistan

Mrs Arifa Kasi, Nazia Barkat, Asma Abdul Khaliq, Syed Khalil Ahmed, Asif Iqbal

Journal of Contemporary Issues in Business and Government, 2021, Volume 27, Issue 6, Pages 377-388
DOI: 10.47750/cibg.2021.27.06.033

The accounting environment plays a vital role in the banking sector. The present paper
explores the predictive power of the accounting environment in developing financial
reports. The commercial banks of Pakistan are selected as the study context. The study
employs a deductive approach which is handled through a path analysis. The findings
of the study show a significant and positive effect of the accounting environment’s
constructs like liquidity, financial leverage (FL), profitability, earnings management
(EM), corporate governance (CG) and company life cycle (CLC) on the accounting
environment (AE) in the commercial banks of Pakistan. The findings of a study would
further provide the guidelines to policymakers and planners in developing the
conducive AE, which would increase the profitability and CLC. Moreover, the study
outcomes would contribute to the domain literature, i.e. finance, management and
banking in the context of financial reports development.

Empirical Investigation into the impact of Corporate Governance on Stock Returns in Pakistan: Evidence from Financial Sector of Pakistan

Samina Rooh, Dr. Fazli Wadood, Muhammad Farooq Malik

Journal of Contemporary Issues in Business and Government, 2021, Volume 27, Issue 6, Pages 1637-1651
DOI: 10.47750/cibg.2021.27.06.130

This study aims to investigate the impact of corporate governance on stock returns of commercial banks in Pakistan. Secondary data obtained and used from annual reports of banks and the Pakistan Stock Exchange database over a period from 2016-2020. The regression model is used to determine the influence of corporate governance on the stock returns in the banking sector. The results suggest that board size, a block of common shares, and individual & family block holdings have a significantly positive influence on stock returns while the board fraction, insiders’ block holdings, industrial block holdings, and firm leverage are negatively associated with stock returns. The findings provided practical implications for the firms striving to enhance better corporate governance mechanism to avail maximum stock returns.

GST and its effect on Corporate Governance- A Detailed Analysis

Yashika, Varsha Rustagi

Journal of Contemporary Issues in Business and Government, 2021, Volume 27, Issue 6, Pages 1589-1596
DOI: 10.47750/cibg.2021.27.06.126

Since independence in 1947, India has implemented many major taxation reforms; however, the
Goods and Services Tax, also known as GSTimplementation on 1st of July, 2017, is considered
to be the most remarkable. It was initially booked for execution in April 2010, however was
deferred because of policy centered issues and clashing interests. The GST plot is planned to
unite all roundabout assessments in India, including central extract charges, value-added taxes,
and service taxes, into a single taxing system.
Prior to this, distinct taxes or duties were assessed based on a wide range of mind-numbing
concepts, including manufacturing costs, value addition and subtraction, origin, territorial issues,
among others. The Indian taxation system has been subjected to countless committees,
commissions, amendments etc. both before and after independence. Having delved into the
complexities of various tax provisions, the GST has evolved into an umbrella tax covering most
of the taxes and duties that will become a unified tax. Our study aims to enlighten readers on
various issues concerning the origins and evolution of the GST regime, as well as its probable
impact on corporate governance in general and Indian corporations in particular.

Impact of Corporate Governance Structure on Firm’s Dividend Policy of Non Financial Firms (Evidence from Pakistan Stock Exchange)

Raza Ullah, Dr. Farooq Shah, Dr. Muhammad Irshad Khan, Zia ul Islam, Zia ul Hassan

Journal of Contemporary Issues in Business and Government, 2021, Volume 27, Issue 6, Pages 1292-1303
DOI: 10.47750/cibg.2021.27.06.107

The present study has been conducted to examine the effect of corporate governance on the firm’s dividend payout. The study was conducted in the non financial sector of Pakistan. The study was conducted in the PSX 100 index. On the basis of the nature, 65 non financial firms were included as the sample size. The study has used data collected from their website from
2011 to 2018. The study has used diagnostic models for the selection of the final model of analysis. The results showed that OLS has been recommended in the case of small and large firms while fixed effect model can be used for the medium firms. The findings of small size firms showed that 1) board size has significant effect on dividend payout while CEO
compensation and board independence have insignificant effect. The results of medium size firm showed that 2) family ownership has significant effect on dividend payout in medium and large firms while CEO ownership has significant effect on dividend payout in small, medium and large firms. The results of third model showed that 3) disclosure policy and shareholders rights have significant effect on dividend payout ratio. The findings of the study recommends that the firms should diversify their board and increase the size as it will help in attracting new investors.

The Effect of Corporate Governance on Earnings Management

PETRUS PELENG RORENG

Journal of Contemporary Issues in Business and Government, 2021, Volume 27, Issue 3, Pages 1001-1007
DOI: 10.47750/cibg.2021.27.03.134

This study aimed to examine the effect of corporate governance on earnings management. Independent variables used in this study are the proportion of independent board, audit committee, the structure of managerial ownership and institutional ownership structure. The ratio of independent commission was measured to study the percentage of the number in the independent board to entire board of commissioners in the company. Audit committee in this research do, that was calculated by adding up the audit committee in the company. The managerial ownership structure is measured by the percentage of shares owned by managers of the total shares outstanding. The institutional ownership structure is measured by the percentage of shares owned by the institutions of the total shares outstanding. Earnings management as the dependent variable proxied by discretionary accruals and is calculated by the modified Jones model.
This research was conducted using data from documentation using www.idx.co.id, Indonesian Capital Market Directory (ICMD). The method of analysis used in this study is multiple linear regressions. This study used a sample of manufacturing firms listed on the Indonesia Stock Exchange (IDX) 2013-2016.
The results showed the simultaneous variable proportion of independent board, audit committee, the structure of managerial ownership and institutional ownership structure have a significant effect on earnings management. However, only the precarious balance of independent board is a substantial effect on earnings management.

The Effect of Corporate Governance Attributes on Corporate Social Responsibility Disclosure in Iraqi Companies: A Literature Review

Hayder Zghair Idan; Nor Hanani Ahamad Rapani; Azam Abdelhakeem Khalid; Abbas Jumaah Al-Waeli

Journal of Contemporary Issues in Business and Government, 2021, Volume 27, Issue 2, Pages 2778-2816
DOI: 10.47750/cibg.2021.27.02.291

This paper reviews and analyses 41 empirical studies examining the effects of internal corporate governance attributes on the disclosure of Corporate Social Responsibility (CSR) information by companies in Iraq. The inductive approach used in this paper entails the surveying, studying, comparing and summarizing of all papers published in prominent journals in the past seven years. By reviewing 41 empirical studies, this current study obtained mixed results ranging from Positive and negative statistically significant to statistically insignificant relationships, depending on the CSRD measures, sample selection and corporate governance attributes. The researchers also found that CG and CSR disclosure have a more positive relationship (57.80 %) than Negative and significant relationship (15.47%). However, the study found that (26.73%) an insignificant relationship .This paper also found that CSRD is weak in Iraq compared to developing countries in the analyzed studies. In the case of the Iraqi companies, Board of directors and managerial ownership were found to have a positive effect on the growth of social costs. As for the other variables, the study failed to discover any effects. In addition, the researchers also found that none of the previous studies had addressed the abovementioned correlation in the context of Iraqi companies.

FORMS AND STAGES OF IMPLEMENTATION OF CORPORATE GOVERNANCE PRINCIPLES IN THE UNIVERSITY GOVERNANCE PROCESS

Abdurasulov Abdullajon Abdukarimovich

Journal of Contemporary Issues in Business and Government, 2021, Volume 27, Issue 2, Pages 5550-5558
DOI: 10.47750/cibg.2021.27.02.562

The article emphasizes that at the new stage of Uzbekistan's development, one of the urgent tasks
is the introduction of corporate governance principles in the management of universities and the
creation of a special model of higher education, taking into account its characteristics.

The Effects of 2011 Revised Code of Corporate Governance on Financial Reporting Quality in Nigeria: The Role of Board of Directors and Audit Committee Members

UMAR ALIYU MUSTAPHA; FAUZIAH MD TAIB; NORFADZILAH RASHID

Journal of Contemporary Issues in Business and Government, 2021, Volume 27, Issue 2, Pages 218-225
DOI: 10.47750/cibg.2021.27.02.027

Nigeria’s fight to enhance investors’ confidence in the environment where pervasive corruption and weak contract enforcement has led the country into instituting general and sector-specific laws to improve business transparency, accountability and unethical earnings manipulations. The 2003 Code of Corporate Governance was amongst the first attempt to induce good governance behaviour but with little progress as the country was embroiled with unethical accounting scandals involving major international companies. The revised 2011 Code of Corporate Governance shifted the full accountability responsibility to boards of directors with an increased role for the audit committee to assist directors in scrutinising financial statements.  This paper examined the enhanced roles of the board of directors and the audit committee in curbing unethical earnings manipulations and enhancing the financial reporting quality.  Findings suggest that the role of the board of directors has not restrained companies from engaging in earnings management although the audit committee size has contributed towards enhancing the financial reporting quality. Nigeria has adopted a rule-based approach to implementing its corporate governance and it has not been successful to induce good corporate behaviour in the absence of good check and balance mechanisms in place. The human governance perspective envisages that the true essence of good governance could be achieved by placing importance on people instead of structures. It is timely that the Nigerian authorities consider this self-regulation perspective as a way forward to promote good governance and eventually, overcome all unethical practices by the corporate managers.

A CONCEPTUAL FRAMEWORK FOR MEASURING STAKEHOLDER PERCEPTION TOWARDS CORPORATE GOVERNANCE IN PRIVATE AND GOVERNMENT OWNED BANKS OPERATING IN INDIA

Dr. Shanthi Venkatesh; Mr. Arun Prasad; Dr. Archana Raja

Journal of Contemporary Issues in Business and Government, 2021, Volume 27, Issue 2, Pages 4376-4384
DOI: 10.47750/cibg.2021.27.02.464

The extent, to which companies adhere to the fundamental principles of governance, is sure
to boost the confidence of the investors and other stakeholders, as well as the business. Also,
adequate and strong disclosure policies help companies to attract investments, and builds
stakeholder loyalty
This paper aims to give a conceptual framework for a potential research study on
understanding the perceptions of stakeholders, vis-a-vis, the shareholders, investors,
management, employees and the customers on the governance policies of the private and
public sector banks operating in India.
The study will attempt to throw light on the awareness and expectation levels of the different
stakeholders considered and also aims at providing suggestions for improvement at the
strategic and policy levels.

The Dynamic Impact of Corporate Governance on Investment Decisions of Non-Financial Companies in Sri Lanka

MCA. Nazar

Journal of Contemporary Issues in Business and Government, 2021, Volume 27, Issue 1, Pages 1404-1413

This research examines the influence of corporate governance on investment decision of 198 non-financial companies listed on the Colombo Stock Exchange of Sri Lanka, over the period from 2009 to 2016. This study used four corporate governance variables such as managerial ownership, board size, board independence, and CEO duality. Moreover, this study considers three control variables such as profitability, firm size, and corporate tax. This study employed the Generalized Method of Moments (GMM) model to estimate the regression models on panel data study. The main contribution of this study is sightseeing the insight of the effect of corporate governance factors on investment decisions. Findings reveal that managerial ownership is positively significantly influence on investment decision. Board size is insignificantly positive on investment decision. The existence of positive effect between board independence and changes in total assets was found in the study and a significant negative influence on Tobin’s Q.CEO duality is significantly and negatively related to changes in total assets and it is significantly and positively connected to Tobin’s Q. Therefore, except for board size, all the other corporate governance factors have influence on the investment decision of a firm.

Corporate Governance and Tax Regimes in India

DR.P.PRAVEEN KUMAR; MR.RAJ KUMAR.G

Journal of Contemporary Issues in Business and Government, 2020, Volume 26, Issue 2, Pages 603-607
DOI: 10.47750/cibg.2020.26.02.081

This paper studies the perception towards essentials of corporate governance practices. Descriptive research is applied using a convenience method of sampling with 64 respondents. The data is collected from the private limited employees. The majority of respondents were Female and the majority of the age group were less than 35 years. The tools and techniques utilized for the examination and results are mean investigation, frequency test and ANOVA. It is discovered that there is no huge distinction between the perceptions towards essentials of corporate administration and the demographic profile of the employees.

Signal irrelevance of corporate governance practices during Initial Public Offerings in India

Rekha Handa, Balwinder Singh, Sharad Sharma

Journal of Contemporary Issues in Business and Government, 2018, Volume 24, Issue 1, Pages 50-63

A sample of initial public offerings (IPOs) of firms listed on the Bombay Stock Exchange between April 2003 and March 2014 has been used to investigate the relevance of corporate governance in the post-IPO capital market performance. Signal theory has been used to understand the phenomenon of post-IPO capital market performance vis-à-vis signal cast by corporate governance attributes. The study finds investors’ indifference to governance mechanism put in place by IPO-firms in compliance with the listing requirements. The outcomes of the study provide essential feedback for IPO-firms and the Security Exchange Board of India, the Indian capital market regulator.