Corporate governance guidelines compliance and firm financial performance

Outa, Erick Rading; Waweru, Nelson

doi:10.1108/maj-12-2015-1291

Cited by 42 publications

(40 citation statements)

References 71 publications

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“…The size of the company is measured using the measurement in Haniffa & Cooke (2005), Daniel et al (2010), Haron (2014), Gonçalves & Lopes (2015) and Outa & Waweru (2016) studies; from the book value of company's total assets.…”

Section: Company Sizementioning

confidence: 99%

Factors Affecting the Financial Performance of Biological Asset-Based Companies in Singapore, Thailand, and Indonesia

Falikhatun¹,

Dini²,

Hanggana³

2020

Proceedings of the 4th Padang International Conference on Education, Economics, Business and Accounting (PICEEBA-2 2019)

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The International Accounting Standards Board (IASB) published a rule to regulate agricultural activities, named IAS 41: Agriculture. Measurement of agricultural activities based on IAS 41 is stated using fair value which is considered better because it can show that the transformation process immediately represented in the company's financial statements. Information regarding the performance of biological assets can be used by management to increase additional capital because it is a basis consideration for investors. The aim of this study is to examine the influence of the intensity of biological assets, company size, and capital structure on the financial performance of biological asset-based companies in Thailand, Singapore, and Indonesia for the year 2012 to 2018. Data analysis uses descriptive analysis, the classical assumption test, hypothesis testing, and Kruskal Wallis test to analyze the differences of the financial performance. The results indicate that the intensity of biological assets, company size, and capital structure influences the financial performance of biological asset-based companies. Kruskal Wallis test also found that there are significant differences among financial performance in Thailand, Singapore, and Indonesia. Future studies are expected to add independent variables that explain the financial performance of biological asset-based companies such as corporate governance or tax rates.

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Section: Company Sizementioning

confidence: 99%

Factors Affecting the Financial Performance of Biological Asset-Based Companies in Singapore, Thailand, and Indonesia

Falikhatun¹,

Dini²,

Hanggana³

2020

Proceedings of the 4th Padang International Conference on Education, Economics, Business and Accounting (PICEEBA-2 2019)

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“…Adi et al (2013) found financial performance has a positive significant effect on firm value. Outa and Waweru (2016) found financial performance measured by ROA has a positive significant effect on the firm value measured by Tobin's Q. Based on the evidence, the hypothesis in this study is as follows: H3a : Firm performance has a significant positive effect on firm value.…”

Section: Financial Performance and Firm Valuementioning

confidence: 71%

The Influence of Risk Management on Financial Performance and Firm Value: A Case Study on Companies of Crude Petroleum and Natural Gas Production Sector Listed at the IDX 2016 – 2019

2020

EJBM

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This study is explanatory research, the sample in this study is crude petroleum and natural gas production companies listed on the Indonesia Stock Exchange in the period 2016-2019. The empirical analysis uses timeseries data of Dividend, Earning, ROA, NPM, Tobin's Q, and Closing Price in those periods. The latent variable in this study is risk management, financial performance, and firm value. The inferential statistical method used to analyze in this study is component-based using Generalized Structured Component Analysis (GSCA).This study finds that a decrease in risk by risk management will not significantly increase financial performance, and an increase in financial performance will not significantly decrease the risk by risk management. A decrease in risk by risk management will significantly increase firm value, and an increase in firm value will significantly decrease the risk by risk management, but the impact of the increase in firm value on risk is bigger than the impact of the decrease in risk on firm value.This study also finds that an increase in financial performance will significantly increase firm value, and an increase in firm value will significantly increase financial performance, but the impact of the increase in firm value on financial performance is bigger.

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“…The right side is depicted as external governance elements as a result of the firm's need to gain capital. Empirical research proved that internal and external monitoring mechanism of a firm has a direct relationship with the financial power of a firm (Aguilar, 2016;Outa & Waweru, 2016). Monitoring refers to the effort of the firm's owner to mitigate the manager's opportunistic behavior (Mohamad Nur .…”

Section: Monitoring Mechanismmentioning

confidence: 99%

The Role of Monitoring and Bonding Mechanisms of Good Corporate Governance Towards Banks Performance

Lestari

Wahyudi

Muharam

et al. 2020

HSSR

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Purpose of the study: This paper aims to examine the effects of the monitoring mechanism and bonding mechanism of corporate governance on the performance of the bank. The monitoring mechanism is divided into an external mechanism, represented by concentrated ownership, and the internal mechanism is represented by the proportion of independent board. Bonding mechanism is measured issuance of bonds as long-term debt financing.Methodology: This study is predictive and exploratory, so the Partial Least Squares Structural Equation Modeling using a WarpPLS60 application. Researchers use data from 24 banks that constantly has the value of bonds circulated, which from 2011 to 2018. There are consists of 4 state-owned commercial banks, 13 private banks, and 7 regional governmentowned banks. Main Findings:The researcher found that external monitoring mechanisms as measured by ownership concentration, positively and significantly influence the performance at government-owned banks. Internal monitoring mechanism, as measured by the percentage of the number of independent commissioners, positively and significantly affects the performance at all the banks. The bonding mechanism as measured by issuing bonds negatively and significantly affects the performance of all the banks. Applications of this study:The integrative multi-theory model proposed by the authors in this study is a unique contribution to the intermediary financial literature. Banks seeking to maximize their performance must be balanced with the interests of shareholders and their stakeholders. Novelty/Originality of this study:The study examined the differences in behaviour and the role of monitoring and bonding mechanisms of corporate governance in state-owned banks and private. The results of this study contribute to the theory of entrenchment and financial intermediation.

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Corporate governance guidelines compliance and firm financial performance

Cited by 42 publications

References 71 publications

Factors Affecting the Financial Performance of Biological Asset-Based Companies in Singapore, Thailand, and Indonesia

Factors Affecting the Financial Performance of Biological Asset-Based Companies in Singapore, Thailand, and Indonesia

The Influence of Risk Management on Financial Performance and Firm Value: A Case Study on Companies of Crude Petroleum and Natural Gas Production Sector Listed at the IDX 2016 – 2019

The Role of Monitoring and Bonding Mechanisms of Good Corporate Governance Towards Banks Performance

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