Corporate Governance and Firm Value: Evidence from South African (SA) Listed Firms

Ntim, Collins G.; Opong, Kwaku K.; Danbolt, Jo

doi:10.2139/ssrn.1884291

Cited by 47 publications

(113 citation statements)

References 54 publications

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“…For instance, and in line with the Cadbury Report, King I recommended an Anglo-Saxon style single-tier board of directors, consisting of executive directors and NEDs, operating within a voluntary CG compliance framework (King Report, 2002;Armstrong et al, 2006). With particular respect to NEDs, and similar to the Cadbury Report, it emphasised the special importance of NEDs in setting and maintaining high standards of CG (King Report, 1994;Ntim, 2009). …”

Section: The King Reports Ineds and The Sa Corporate Settingmentioning

confidence: 99%

“…Also, and unlike the Cadbury Report, which specified that at least two of the NEDs should be independent, King I did not clearly define who constitutes independent director or the number of independent NEDs (INEDs) that SA corporate boards should have (West, 2009;Ntim, 2009). King I also failed to insist on a truly INED to chair SA corporate boards (King Report, 2002;Kakabadse and Korac-Kakabadse, 2002).…”

Section: The King Reports Ineds and The Sa Corporate Settingmentioning

confidence: 99%

“…In contrast, INEDs possess a number of features. First, they bring independent judgment to board decisions (Baysinger and Hoskisson, 1990;Ntim, 2009), which can impact positively on firm valuation. In particular, greater independence associated with INEDs grants them increased capacity to advise, monitor and discipline management to improve firm value by reducing managerial opportunism without fear or favour (Vafeas and Theodorou, 1998;Bhagat and Black, 2002;Jiraporn et al, 2009).…”

Section: Ineds and Firm Valuation: Theory Evidence And Hypothesis Dementioning

confidence: 99%

“…Due to the mixed theoretical predictions, we hypothesise that gearing (GEAR), capital expenditure (CAPEX) and firm size (LNTA) will correlate either negatively or positively to firm value. Third, firms that are cross-listed on international stock markets are more likely to have greater access to funds and investment opportunities (Ntim, 2009;Ntim et al, 2011b), and therefore may be valued more highly by the stock market. Thus, our prediction is that cross-listing (CROSLIST) will correlate positively to firm value.…”

Section: Dependent Independent and Control Variablesmentioning

confidence: 99%

“…The country offers an interesting setting to investigate the effect of INEDs on firm valuation. In line with other Anglo-Saxon economies, SA has carried out CG reforms, mainly in the shape of the King Reports with the key aim of improving the independence and monitoring capacity of corporate boards (Kakabadse and Korac-Kakabadse, 2002;Ntim, 2009;West, 2009;Ntim et al, 2011a). As will be further elaborated, and with particular respect to the composition of SA corporate boards, the 2002 King Report sets a much clearer and stricter test for classifying directors into executives, NEDs and INEDs for listed firms to comply with.…”

Section: Introductionmentioning

confidence: 98%

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The king reports, independent non-executive directors and firm valuation on the Johannesburg stock exchange

Ntim¹

2011

COC

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INEDs and firm valuation. By contrast, we find no statistically significant association between the presence of non-executive directors (NEDs) and firm valuation. Our findings are robust across a number of econometric models that control for different types of endogeneity problems, non-linear associations and firm valuation proxies. Our findings have important policy and regulatory implications. Whereas our evidence that more independent corporate boards' impacts positively on firm valuation provides support for the recommendations of the King Reports, it shows that to be meaningful, director independence has to be more carefully and strictly defined.

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Section: The King Reports Ineds and The Sa Corporate Settingmentioning

confidence: 99%

Section: The King Reports Ineds and The Sa Corporate Settingmentioning

confidence: 99%

Section: Ineds and Firm Valuation: Theory Evidence And Hypothesis Dementioning

confidence: 99%

Section: Dependent Independent and Control Variablesmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 98%

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The king reports, independent non-executive directors and firm valuation on the Johannesburg stock exchange

Ntim¹

2011

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Towards Sustainable Development in the Arab Middle East and North Africa Region: A Longitudinal Analysis of Environmental Disclosure in Corporate Annual Reports

2017

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This paper presents the first comprehensive analysis of corporate environmental disclosure in the Arab Middle East and North Africa region. Using a detailed research instrument containing 55 items, content analysis of the annual reports of 180 non-financial companies listed on nine major stock markets was conducted over a 5-year period. The calculation of an unweighted disclosure index indicates that, although the level of disclosure might be considered relatively low by international standards, it varies by country. Perhaps of greater significance for the future of sustainable development in the region, disclosure is shown to have increased significantly over the period [2010][2011][2012][2013][2014]. Further analysis shows that although there are some differences relating to categories of disclosure, this is a region-wide phenomenon not driven by a subset of countries or types of company. This benchmark study provides a systematic picture for policy-makers in the region and, for future researchers, both substantive findings and methodological insight.

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Sustainable environmental practices and financial performance: Evidence from listed small and medium‐sized enterprise in the United Kingdom

Boakye

Tingbani

Ahinful³

et al. 2020

Bus Strat Env

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In this article, we investigate the financial implication of sustainable environmental practices on UK small and medium‐sized enterprises (SMEs)–traded firms. Existing literature indicates that there is a direct relationship between sustainable environmental practices and financial performance. However, studies looking at this relationship have focused mainly on large firms with little attention paid to SMEs. Further, those looking at environmental and financial performance relationships have often used a single measure of performance in their studies. This study bridges these research gaps by focusing on listed SMEs in the United Kingdom using multiple measures of sustainable environmental policy indices on a panel of 201 SMEs on the Alternative Investment Market from 2011 to 2016. Evidence from our panel data analysis suggests significant and a nonlinear (concave) relationship between sustainable environmental practices and firms' financial performance. Specifically, energy efficiency practices, greenhouse gases, material, and resource efficiency revealed an inverted U‐shaped relationship with financial performance. The results will offer guidance to management in terms of allocating resources to sustainable environmental practices investment.

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Corporate Governance and Firm Value: Evidence from South African (SA) Listed Firms

Cited by 47 publications

References 54 publications

The king reports, independent non-executive directors and firm valuation on the Johannesburg stock exchange

The king reports, independent non-executive directors and firm valuation on the Johannesburg stock exchange

Towards Sustainable Development in the Arab Middle East and North Africa Region: A Longitudinal Analysis of Environmental Disclosure in Corporate Annual Reports

Sustainable environmental practices and financial performance: Evidence from listed small and medium‐sized enterprise in the United Kingdom

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