Print ISSN: 2204-1990

Online ISSN: 1323-6903

Keywords : Board Characteristics


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.

Financial Performance and Audit Committee Characteristics: An Empirical Study on Bahrain Services Sector

MOHAMMAD SALEM OUDAT; BASEL J.A.ALI; MOHAMMED HELMI QESHTA

Journal of Contemporary Issues in Business and Government, 2021, Volume 27, Issue 2, Pages 4278-4288
DOI: 10.47750/cibg.2021.27.02.453

Purpose: The main purpose of this research paper is to investigate the association of audit committee characteristics and financial performance among services sector corporation-listed in Bahrain Stock Exchange.
Design/methodology/approach: In this research paper, the corporations listed on the Bahrain Stock Exchange for the period from 2012 to 2019 are examined. To fulfill the current purpose of the research paper, the linear panel regression method is employed. However, the audit committee characteristics represented by expertise, board independence, board size and frequently meetings are the independent variables of the current study, and return on equity and earning per share a proxy of financial performance are the dependent variables. Corporation’s size, leverage and age are examined as control variables.
Findings: There is significant relationship between ACID, ACMEET, FSIZE and the performance (ROA, ROE and EPS). there is no statistical significance between the ACFE, ACS, FAGE and performance (ROA, ROE and EPS), the LVRGE have an impact on EPS but not on ROA, ROE.
Practical implications: The findings of the current research paper expected to be important for government and corporations policymakers in constructing an appropriate set of governance mechanisms related to the audit committee characteristics, and for current and potential investors in shaping their understanding of corporate governance code and it’s principles in Bahrain context.