The effect of corporate governance on firm value and profitability: Time-series evidence from Turkey

Ararat, Melsa; Black, Bernard S.; Yurtoğlu, B. Burçin

doi:10.1016/j.ememar.2016.10.001

Cited by 170 publications

(178 citation statements)

References 37 publications

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“…The phenomenon of BGs remains multifaceted (Colpan andHikino 2010, 2018). BGs are a set of legally independent firms, operating in multiple and often unrelated industries, whose economic activity is controlled and coordinated via equity stakes, privileged control rights, interlocking directorates, informal ties, and others (Khanna and Yafeh 2007;Ararat et al 2017).…”

Section: Introductionmentioning

confidence: 99%

Business Groups and Corporate Responsibility for the Public Good

2018

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This paper analyzes the relationship between Business Groups as a distinct way of organizing economic activities and their relation to the public good. We first analyze the phenomenon of Business Groups and discuss some of their core features. Subsequently, the paper moves to analyzing the existing literature on Business Groups and corporate social responsibility (CSR) as the most common label for the topic of this Special Issue. Subsequently, specific peculiarities of Business Groups in the context of CSR and their contribution to the public good are fleshed out. Based on this analysis, the paper delineates some implications for the field of CSR and the wider debate on the nature of the firm. We close with some perspectives for future research.

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Section: Introductionmentioning

confidence: 99%

Business Groups and Corporate Responsibility for the Public Good

2018

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“…The low performance of the agricultural sector issuers can undoubtedly be avoided through the existence of proper corporate governance mechanisms. Ararat, Black, & Yurtoglu (2016); Bhatt & Bhatt (2017) revealed that strengthening corporate governance can help improve company performance. Strengthening good governance can serve as a tool to monitor and control the activities of managers and force them to use the company's resources in profitable, productive ventures (Ehikioya 2015).…”

Section: Abstrakmentioning

confidence: 99%

Dividend policy, investment opportunity set, free cash flow, and company performance: Indonesian’s agricultural sector

Chosiah

Purwanto

Ermawati

2019

Jurnal Keuangan Dan Perbankan

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Dividends are a tool that can be an essential source of information for investors or other stakeholders as it contains information that can provide a signal about the company's prospects (dividend signaling theory). This study aims to examine the effect of dividend policy on company performance through moderation of investment opportunity set (IOS) and free cash flow (FCF) and examine the effect of the application of corporate governance on dividend policy and company performance. Based on purposive sampling technique obtained a sample of 71 companies that meet the criteria. The study was conducted using panel data regression method. The results showed that dividend policy had a significant negative effect on company performance in the following year. IOS has a positive and insignificant effect on company performance, while FCF has a positive and significant effect on company performance. IOS variable is able to moderate the relationship of dividend policy on company performance in the following year, while FCF is not able to moderate the influence of dividend policy on company performance in the following year. In addition, the corporate governance mechanism has an insignificant effect on dividend policy which shows that the corporate governance mechanism is still not effective in increasing the number of dividends paid to shareholders. AbstrakDividen adalah alat yang dapat menjadi sumber informasi penting bagi investor atau pemangku kepentingan lain karena berisi informasi yang dapat memberikan sinyal tentang prospek perusahaan (teori pensinyalan dividen). Penelitian ini bertujuan untuk menguji pengaruh kebijakan dividen terhadap kinerja perusahaan melalui moderasi set kesempatan investasi (IOS) dan arus kas bebas (FCF) dan menguji pengaruh penerapan tata kelola perusahaan terhadap kebijakan dividen dan kinerja perusahaan. Berdasarkan teknik purposive sampling diperoleh sampel sebanyak 71 perusahaan yang memenuhi kriteria. Penelitian dilakukan dengan menggunakan metode regresi data panel. Hasil penelitian menunjukkan bahwa kebijakan dividen memiliki pengaruh negatif yang signifikan terhadap kinerja perusahaan pada tahun berikutnya. IOS memiliki efek positif dan tidak signifikan pada kinerja perusahaan, sedangkan FCF memiliki efek positif dan signifikan terhadap kinerja perusahaan. Variabel IOS mampu memoderasi hubungan kebijakan dividen dengan kinerja perusahaan di tahun berikutnya, sedangkan FCF tidak mampu memoderasi pengaruh kebijakan dividen terhadap kinerja perusahaan di tahun berikutnya. Selain itu, mekanisme tata kelola perusahaan memiliki pengaruh yang tidak signifikan terhadap kebijakan dividen yang menunjukkan bahwa mekanisme tata kelola perusahaan masih belum efektif dalam meningkatkan jumlah dividen yang dibayarkan kepada pemegang saham.

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“…Several empirical studies have been carried out to examine the relationship between corporate governance and firm performance; (Akbar et al, 2016;Thenmozhi and Narayanan, 2016;Villanueva-Villar, Rivo-López, & Lago-Peñas 2016;Shawtari et al, 2015;Ararat, Black, & Yurtoglu, 2016). They argue that effective corporate governance is a major key determinant of corporate performance.…”

Section: Literature Reviewmentioning

confidence: 99%

Unified Corporate Governance Practice of Trade Partners with India: Towards International Code of Best Practices

Shamim

Fatima

Almaqtari

2018

JESP

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This paper investigates the uniformity of corporate governance practices towards international code of best practices. The top 5 trading partner countries with India and export network worldwide have been selected, then from each country, 5 companies are selected which are leading in merchandise export. This study is based on secondary data sourced from published annual reports of the listed companies for the financial year from 2015 to 2017. The study employs descriptive statistics and ANOVA to evaluate the uniformity of corporate governance practices namely; some board characteristics, board committees, listing abroad, international segment or branch, and international governance indicators. It has found that there is statistical significance at the level of 5% that companies follow uniform corporate governance practices relating to board characteristics, board committees, listing abroad, having international segment, and international governance indicators except for executive members, risk management committee, corporate governance and grievance committee, total assets and sales of the company. It is recommended that countries and international bodies should encourage companies toward uniformity of corporate governance.

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The effect of corporate governance on firm value and profitability: Time-series evidence from Turkey

Cited by 170 publications

References 37 publications

Business Groups and Corporate Responsibility for the Public Good

Business Groups and Corporate Responsibility for the Public Good

Dividend policy, investment opportunity set, free cash flow, and company performance: Indonesian’s agricultural sector

Unified Corporate Governance Practice of Trade Partners with India: Towards International Code of Best Practices

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