Investor protection and country-level governance: cross-country empirical panel data evidence

Rachisan, Paula Ramona; Boţa-Avram, Cristina; Groşanu, Adrian

doi:10.1080/1331677x.2017.1311226

Cited by 15 publications

(17 citation statements)

References 18 publications

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“…Different studies report that effective countrylevel governance is an essential driver of economic and social development (Rachisan et al, 2017). It was found that the business environment is significantly influenced by country-level governance.…”

Section: Public Interest Statementmentioning

confidence: 99%

“…For example, some studies explored CLCG with its relation to accounting, finance, and/or auditing issues (e.g. Avram et al, 2015;Hillier et al, 2011;Lin et al, 2014;Pindado et al, 2015;Sayed & Chawla, 2017;Thenmozhi & Narayanan, 2016), economic growth (Boţa- Avram et al, 2018), FDI (Agyemang et al, 2019), ethical behaviour of firms (Agyemang et al, 2015) and investors' protection (Rachisan et al, 2017), entrepreneurship (Groşanu et al, 2015), disclosure and compliance (Ernstberger & Grüning, 2013;Sarhan et al, 2019) firm value (Saona & San Martín, 2016) and financial analysis (Seifert & Gonenc, 2018) (See Table 1). Groşanu et al (2015) examined "the influence of country-level governance on business environment and entrepreneurship" in different states over the period of 2007up to 2012.…”

Section: Theoretical Literaturementioning

confidence: 99%

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Impact of country-level corporate governance on entrepreneurial conditions

Maqtari

Farhan

Al-Hattami

et al. 2020

Cogent Business & Management

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The present study examines the effect of country-level corporate governance (CLCG) and Directors' Liability (DL) on Entrepreneurial Framework Conditions (EFCs) across 52 countries from 2014 up to 2017 using balanced panel data and Panel Correction Standard Error estimation. The results revealed that the CLCG has a significant impact across EFCs dimensions. Further, the results declared that the impact of DL is significant and positive in countries that have a high score of DL, but this impact is statistically negative in countries that have a low score of DL. The findings have momentous implications for entrepreneurs, policymakers, regulators, international organizations, and academicians. The study makes novel contributions to the strand literature underpinning countrylevel governance and the role of directors' liability with EFCs. It brings a useful insight into a previously undocumented area of research highlighting the importance of CLCG dimensions and DL as important factors and determinants for better entrepreneurial conditions.

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Section: Public Interest Statementmentioning

confidence: 99%

Section: Theoretical Literaturementioning

confidence: 99%

Impact of country-level corporate governance on entrepreneurial conditions

Maqtari

Farhan

Al-Hattami

et al. 2020

Cogent Business & Management

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“…Concerning the characteristics of the institutional setting, it has been widely argued that it has an impact as a governance system on the discretionary capacity of managers to engage in real activities manipulation. Specifically, improvements in regulation have dramatically changed the managerial behaviour concerning misreporting of financial information (Rachisan, Bota-Avram, & Grosanu, 2017). For instance, Cohen et al (2008) stated that managers have shifted their method of earnings management from accrual-based earnings managements to real activities manipulation after the passage of the Sarbanes-Oxley Act (S.O.X.)…”

Section: Institutional System and Real Activities Manipulationmentioning

confidence: 99%

“…Thus, they inferred that the institutional setting asymmetrically affects the earnings manipulation based on the firm-level governance systems. Rachisan et al (2017), Demirguç-Kunt and Maksimovic (1998) and Demirg€ uç-Kunt, Laeven, and Levine (2004) asserted that legal enforcement and efficient regulatory systems are associated with lower levels of corruption, which make the financial system perform with much less friction. Consequently, we can derive out of these arguments that the characteristics of the legal system also determine the way the executives use their discretionary capacity to manage the accounting earnings.…”

Section: Institutional System and Real Activities Manipulationmentioning

confidence: 99%

Real earnings management and corporate governance: a study of Latin America

Mellado

Saona

2019

Economic Research-Ekonomska Istraživanja

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This article analyses the impact of ownership structure features and institutional settings on real activities manipulation. The analysis is based on a sample of listed companies in the underexplored Latin American market for the period of 2004-2016. Paneldata-based G.M.M. System Estimation is used in the empirical analysis. The results confirm that the monitoring role of the majority owner is crucial in mitigating managerial opportunistic behaviour. Here, opportunistic behaviour refers to engaging in real activities manipulation that reduces the informative content of financial statements. However, analysis of insider ownership revealed that managers had a negative impact on transparency. We observed that as insider ownership increases, managers engage more actively in real earnings management. We also find that the institutional ownership and the quality of the regulatory system proved to be effective mechanisms in reducing real activities manipulation. ARTICLE HISTORY

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“…Most studies in the literature, both the oldest and the newest, focus on the macroeconomic approach of competitiveness (Ketels, 2016;Porter, 1990). At this level, there is a link between governance, investor protection, entrepreneurship and economic performance (Rachisan et al, 2017, Grosanu et al, 2015. From the macroeconomic perspective, competitiveness is considered in the literature as the ability of a company to design, build and sell products and services superior to those offered by the competition, (D'Cruz, 1992), and the ability to accumulate sustainable growth and profitability (Cetindamar & Kilitcioglu, 2013).…”

Section: Introductionmentioning

confidence: 99%

Corporate Governance Decisions in Accounting Business Field for Increasing Competitiveness. Romania, France and Europe Comparison

Berinde

2018

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Creating value for shareholders in terms of equity value growth significantly depends on the ability of corporate governance to make optimal decisions for the company's competitiveness. The article conducts a comparative study between Romania, France and the average recorded in the European Union regarding competitiveness in companies from the accounting business field for the timeframe 2008-2013. Competitiveness is measured as the average for the domesticowned companies and separately for the foreign-owned companies. Competitiveness assessment is based on asset related elements, processes and performance. The key success factors used for assessing competitiveness are investment rate, gross operating rate, turnover per person employed, share of personal cost in production and added value. The data are collected through the European Statistical System and processed by means of competitiveness analysis methods used in the literature. The findings show that the competitiveness of Romanian and French companies from the accounting business field is above the European Union average. The hypothesis according to which the foreign-owned companies are more competitive than domestic-owned companies is partially confirmed. The foreign owned companies are increasing their competitiveness by reducing labour cost and increasing productivity and added value. They invest far less than companies with local ownership.

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Investor protection and country-level governance: cross-country empirical panel data evidence

Cited by 15 publications

References 18 publications

Impact of country-level corporate governance on entrepreneurial conditions

Impact of country-level corporate governance on entrepreneurial conditions

Real earnings management and corporate governance: a study of Latin America

Corporate Governance Decisions in Accounting Business Field for Increasing Competitiveness. Romania, France and Europe Comparison

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