Corporate Governance, Commitment to Business Ethics, and Firm Valuation: Evidence from the Korean Stock Market

Pae, Jinhan; Choi, Tae Hee

doi:10.1007/s10551-010-0682-z

Cited by 52 publications

(53 citation statements)

References 118 publications

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“…For example, studies show that firms with comprehensive CG are valued highly in the stock market, and leads to better financial positions because investors are more likely to invest in firms that provide low risk and protect the investment (Pae & Choi, 2011). More related to this study are those that have examined corporate commitment to ethics.…”

Section: Hypotheses Developmentmentioning

confidence: 99%

“…Meanwhile, commitment to ethics as an organisational commitment, which occurred in individuals, can promote increased organisation's performance (Wells, 2013;Zohdi, Maghool, Ramezani, & Hosseini, 2013). Other studies implied that commitment to ethics involves corporate responsibilities towards ethical business conduct (Pae & Choi, 2011). Pae and Choi (2011) added in their studies that high ethical standard practices in corporations reflect higher corporate valuation.…”

Section: Commitment To Ethicsmentioning

confidence: 99%

“…Other studies implied that commitment to ethics involves corporate responsibilities towards ethical business conduct (Pae & Choi, 2011). Pae and Choi (2011) added in their studies that high ethical standard practices in corporations reflect higher corporate valuation.…”

Section: Commitment To Ethicsmentioning

confidence: 99%

“…Meanwhile, Choi and Jung (2008) using a survey method based on the Ethical Commitment Index (ECI), found no relationship between commitment to ethics and financial performance among South Korean companies. These studies were researched further by Pae and Choi (2011) by focusing on corporate governance and business ethics. They found a positive relationship between corporate governance and business ethics with a firm's value among Korean public listed firms.…”

Section: Relationship Between Commitment To Ethics and Financial Perfmentioning

confidence: 99%

“…Market capitalisation = Oustanding shares × Shares value (5) Moreover, firm size (FIRM_SZ), which is associated with strong financial performance (Pae & Choi, 2011), contributed towards resource to commit to better ethical conduct. Financial leverage (FIN_LVG) is measured by using total liabilities divided by total assets (TL/TA) or debt-to-asset ratio.…”

Section: Financial Everage Total Assets Total Iabilitiesmentioning

confidence: 99%

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Ethical Commitments and Financial Performance: Evidence From Publicly Listed Companies in Malaysia

Abidin¹,

Hashim²,

Ariff³

2017

AAMJ

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Section: Hypotheses Developmentmentioning

confidence: 99%

Section: Commitment To Ethicsmentioning

confidence: 99%

Section: Commitment To Ethicsmentioning

confidence: 99%

Section: Relationship Between Commitment To Ethics and Financial Perfmentioning

confidence: 99%

Section: Financial Everage Total Assets Total Iabilitiesmentioning

confidence: 99%

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Ethical Commitments and Financial Performance: Evidence From Publicly Listed Companies in Malaysia

Abidin¹,

Hashim²,

Ariff³

2017

AAMJ

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Ethical commitment, institutional investors and financial performance: Malaysian evidence

et al. 2022

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This study investigates whether institutional investors moderate the relationship between ethical commitment and financial performance amongst Malaysian companies. Through the role of institutional investors, the external monitoring mechanism is expected to reduce the cost associated with the agency problem amongst Malaysian companies, as shown by the lack of ethical practises. Using data from 429 publicly listed companies on the Main Board of Bursa Malaysia from 2012 to 2021, the results show that companies with higher ETHICS have better financial performance than companies with lower ETHICS. However, the findings on the moderating effect of institutional investors cannot be proven. By separating the sample based on pre‐MCCG 2017, institutional investors were found to have an association between ETHICS and performance, but no evidence was found during the period post‐MCCG 2017. This study adds to the perspective of agency theory in the academic literature, of which companies can create values by being committed to higher ethical practises. Results on the moderating effect of institutional investors provide perspective on external monitoring mechanisms in the Malaysian market because they are found to have a monitoring role in enhancing corporate performance. However, such a role decreases after the introduction of MCCG 2017. This study provides insights for Malaysian regulators on the necessity to keep promoting ethical practises and transparency amongst companies to achieve the goals of the National Anti‐Corruption Plan 2019–2023. The ethical practises, however, are not limited to listed companies, and regulators should also consider monitoring the institutions within the capital market.

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Attaining circular economy through business sustainability approach: An integrative review and research agenda

Bansal

Jain

Garg

et al. 2020

Journal of Public Affairs

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In this systematic review, the concept of the circular economy deals with much rigor to gain insights from the viewpoint of business sustainability. The ambivalent nature of the circular economy and business sustainability has led the authors to examine 142 papers from the Web of Science database for review. This study intends to provide a clear understanding of the circular economy concept through the lens of business sustainability. We synthesize the literature in a concrete form for researchers, practitioners, and policymakers by presenting a thematic framework. Based on the systematic review, key findings outlining trends and a reflection about the interface of the circular economy principles systematically and categorically identified nine business processes. Based on the analysis, key findings highlight on (a) addressing the synergy between the circular economy principles and business sustainability at the nine categorized business processes, as a systemic and holistic process; (b) future studies to work on developing tools and techniques to effectively measure the practical applicability in integrating the circular economy principles with the business strategies and models, including research methods like empirical research, action, and longitudinal research; and (c) the need to develop approaches and strategies to engage customers and other company stakeholders with the circular business processes adopted. We contribute to the existing body of knowledge by identifying future research agendas to advance in the concerned field of study consistently.

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Corporate Governance, Commitment to Business Ethics, and Firm Valuation: Evidence from the Korean Stock Market

Abstract: analysts’ forecasts, business ethics, corporate governance, cost of capital, valuation,

Cited by 52 publications

References 118 publications

Ethical Commitments and Financial Performance: Evidence From Publicly Listed Companies in Malaysia

Ethical Commitments and Financial Performance: Evidence From Publicly Listed Companies in Malaysia

Ethical commitment, institutional investors and financial performance: Malaysian evidence

Attaining circular economy through business sustainability approach: An integrative review and research agenda

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