Corporate governance in New Zealand: The effect of the 1993 Companies Act on the relation between board composition and firm performance

Hossain, Mahmud; Prevost, Andrew K.; Rao, Ramesh P.

doi:10.1016/s0927-538x(01)00003-8

Cited by 149 publications

(117 citation statements)

References 37 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…In NZ, NZX Listing Rule 3.3.1 requires that a minimum proportion of board directors be independent. 4 Reassuringly, therefore, NZ studies generally report a positive relationship between the percentage of outside and/or independent directors and Tobin's Q, e.g., Hossain et al (2001), Reddy et al (2008) and Reddy et al (2010).…”

Section: Board Compositionmentioning

confidence: 99%

“…For example, many authors attempt to determine the importance of a limited number of board characteristics (usually board size and the prevalence of outside directors) for NZ firm performance, e.g., Chin et al (2004), Elayan et al (2003), Hossain et al (2001), Prevost et al (2002), Reddy et al (2008), and Reddy et al (2010). Others examine the relationship between board characteristics and (i) executive compensation (e.g., Andjelkovic et al, 2002;Hurst and Vos, 2009;Jiang et al, 2009) or (ii) firm derivatives usage (Marsden and Prevost, 2005) or (iii) financial reporting quality (Rainsbury et al, 2009).…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

New Zealand Corporate Boards in Transition: Composition, Activity and Incentives between 1995 and 2010

Boyle

Ji²

2012

SSRN Journal

View full text Add to dashboard Cite

We document, describe and interpret changes in New Zealand corporate board characteristics between 1995 and 2010, a period centred around the 2003 introduction of the NZX Corporate Governance Best Practice Code. Unsurprisingly, the representation of non-executive, independent and female directors on NZ boards rose during the period, as did real chair and director fees and the importance of board committees, while average board size fell. Perhaps more surprisingly, much of this movement occurred before 2003. However, the magnitude of these changes frequently varies according to firm size, and there are some intriguing differences between New Zealand board characteristics and those prevailing in other, larger, countries. We use this information to identify a number of unanswered questions about New Zealand corporate boards.JEL classification: G34, G38

show abstract

Section: Board Compositionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

New Zealand Corporate Boards in Transition: Composition, Activity and Incentives between 1995 and 2010

Boyle

Ji²

2012

SSRN Journal

View full text Add to dashboard Cite

show abstract

“…In this sense, the presence of independent external directors is presented as a mechanism to promote internal control (Peasnell, Pope & Young, 2005;Dahya & McConell, 2007). Following the agency theory, it is expected that the increased presence of outside directors on the Board of a JV would have a positive impact on the degree of partners' satisfaction obtained from the project (Wagner, Stimpert & Fubara, 1998;Hossain, Prevost, & Rao, 2001;Peasnell, Pope, & Young, 2005;Dahya & McConell, 2007;Jackling & Johl, 2009;Muller-Kahle & Lewellyn, 2011;Van Essen, Van Oosterhout & Carney, 2012). In accordance with this idea, the following hypothesis is proposed:…”

Section: Composition Of the Board Of Directorsmentioning

confidence: 98%

Relation between business satisfaction and board dimensions in joint ventures between Spanish and Moroccan SMEs

Argente-Linares

Pérez

Ariza

2013

SAJBM

View full text Add to dashboard Cite

Businesses commonly access new markets through joint ventures, and these partnerships may adopt diverse structures of government, among which the Board of Directors often plays a key role. Accordingly, the aim of this study is to observe which characteristics of the Board most affect the success of joint ventures between Spanish and Moroccan SMEs, operating in Morocco. Using a structured questionnaire, we analyse the characteristics of the Board that affect success, as measured by the partners' satisfaction with the performance achieved. The results show that factors influencing overall partners' satisfaction with the joint venture include the existence of external directors, the existence of directors with a significant level of ownership in the partnership, the existence of an audit committee, and the (low) frequency of Board meetings. All these measures can be said to be indicators of the type of control held over the partnership, as a means of ensuring the partners' goals are achieved.

show abstract

“…According to the Combined Code on Corporate Governance (2003), one of the responsibilities of NED is to satisfy themselves on the integrity of financial information and that financial controls and systems of risk management are robust and defensible. Contrasting studies found different relationships between non-executive directors and firm performance (Fich & Shivdasani, 2006;Hossain, Prevost, & Rao, 2001). However, one study in particular found a significant positive association between the presence of nonexecutive directors and firm value, especially in countries where legal protection for shareholders is weak (Dahya, Dimitrov, & McConnell, 2008).…”

Section: International Journal Of Accounting and Financial Reportingmentioning

confidence: 99%

Do Multinational Companies Practice Good Corporate Governance? Empirical Evidence from Bangladesh

Ullah

Ahmed

Jamshed

2017

ijafr

View full text Add to dashboard Cite

Corporate Governance refers to the way an organization is directed, administrated or controlled. It includes the set of rules and regulations that affect the manager's decision and contribute to the way company is perceived by the current and potential stakeholders. The corporate governance structure specifies the distribution of rights and responsibilities among different participants in the corporation such as; boards, managers, shareholders and other stakeholders and spells out the rules and procedures and also decision-making assistance on corporate affairs. Corporate governance practices in Bangladesh are gradually being introduced in most companies and organizations (Du, 2006). However, Bangladesh has fallen behind its neighboring countries and global economy in corporate governance (Gillibrand, 2004). Corporate governance structure is mainly considered ambiguous. Specific governance structures or practices will not necessarily fit all companies at all times. Firms with strong corporate governance mechanisms are generally associated with better financial performance, higher firm valuation and higher stock returns. Unfortunately, investors in Bangladesh have a little information about how these corporate values affect the performance of the Multinational Companies (MNCs). This study aims to provide a quantitative contribution to the literature by examining the impact of corporate governance mechanisms on financial performance from the perspective of MNCs. A panel data based Ordinary Least Squared (OLS) regression model was used to measure the quantitative significance of various corporate governance related variables on MNC performance, as identified through a detailed literature review.Keywords: corporate governance, multinational company (MNC), financial performance, Bangladesh Background of the StudyCorporate governance describes the structure of rights and responsibilities among the parties that have a stake in a firm (Aguilera & Jackson, 2003). A corporate governance system can be a set of processes and structures used to direct a corporation's business. A key objective of a corporate governance system should be the enhancement of shareholder wealth. Once implemented, an effective corporate governance system can help to ensure an appropriate division of power among shareholders, the board of directors, and management (Mcconomy & Bujaki, 2000). Firms with strong corporate governance mechanisms are generally associated with better financial performance, higher firm valuation and higher stock returns (Ammann, Oesch, & Schmid, 2011;Bebchuk, Cohen, & Ferrell, 2009;Brown & Caylor, 2006;Cremers & Ferrell, 2009;Gompers, Ishii, & Metrick, 2001;Johnson, Moorman, & Sorescu, 2009;Renders, Gaeremynck, & Sercu, 2010).Bangladesh is one of the emerging markets and most of the top companies are either family owned or controlled by corporate group or government. Corporate governance practices in Bangladesh are gradually being introduced in most companies and organizations. 66.7 percent of the companies have adop...

show abstract

Corporate governance in New Zealand: The effect of the 1993 Companies Act on the relation between board composition and firm performance

Cited by 149 publications

References 37 publications

New Zealand Corporate Boards in Transition: Composition, Activity and Incentives between 1995 and 2010

New Zealand Corporate Boards in Transition: Composition, Activity and Incentives between 1995 and 2010

Relation between business satisfaction and board dimensions in joint ventures between Spanish and Moroccan SMEs

Do Multinational Companies Practice Good Corporate Governance? Empirical Evidence from Bangladesh

Contact Info

Product

Resources

About