The Influence of Corporate Governance and Organizational Capacity on the Performance of Malaysian Listed Companies

Is the Implementation of Good Corporate Governance Principles Capable of Improving Company Performance? (Study at Sharia Commercial Banks in Bandung City, Indonesia)

“…Several other studies that show the better implementation of GCG can produce better company performance are (Fadilah, 2011;Yesser, et al, 2011;Tornyeva&Wereko, 2012;Adi, et al, 2013Aggarwal, 2013Makki&Lodhi, 2013;Fidanoski, et al, 2013;Todorovic, 2013;El Gabasi, et al, 2014;Mudashiru, et al, 2014;Siallagan&Januarti, 2014;Setiyawati&Nengzih, 2014;Lestari, 2013Lestari, & 2015Ahmed &Hamdan, 2015;Halimatusadiah, et al, 2015;Mustapa, et al, 2015;Kasim, 2015;Sanchia& Zen, 2015;Wagana&Kananja, 2015;Pasic, et al, 2016;Ramli, et al, 2016;Susanto, 2016;Alam, et al, 2017;Alobaidi, et al, 2017;Buallay, et al, 2017;Halim, et al, 2017;Khazalia, 2017;Galileoni& Lestari, 2017 ;Uyar, et al, 2017).…”

The Influence of Quality of Management Accounting Information System on the Implementation of Good Corporate Governance and It Impacts on the Company Performance

“…Based on the value of path coefficient, the results also prove empirically that the better implementation of GCG will improve company performance. The study results are supported by very many previous research results which generally stated that the implementation of GCG can improve the company performance, such as Andriana & Panggabean find that GCG mechanism simultaneously have significant effect on financial performance [13], Tornyeva & Theophilus show that GCG has positively associated with the financial performance [17], Fidanoski et al also show that GCG mechanism has positively related to the bank's profitability measures by ROA [18], and Mustapa, Rizad & Ghazali argue that GCG has related to firm performance [5], and Buallay et al show that GCG has positive impact on firm performance, and others [26]. Based on the results of interviews with the management of sharia banking, the implementation of GCG in terms of principles will be able to encourage the realization of good company performance as well.…”

“…First, sharia banks have an obligation to comply with principles of sharia compliance in running their business as a result Sharia Supervisory Board (DPS) plays an important role in governance structure of sharia banking. Second, because the potential for information asymmetry is very high for sharia banking, then the agency theory problem becomes very relevant [5]. To minimize the risk of information asymmetry, it is necessary the quality of management accounting information system in every activity of sharia banking institutions [5].…”

“…Second, because the potential for information asymmetry is very high for sharia banking, then the agency theory problem becomes very relevant [5]. To minimize the risk of information asymmetry, it is necessary the quality of management accounting information system in every activity of sharia banking institutions [5]. The quality of management accounting information system (QMAIS) can be interpreted as a form of statement about the conditions in which MAIS can generate useful information for managers in running the management process [6].…”

“…There are many other investigations have found that GCG has positively associated with the financial performance [17], GCG has positively related to the bank's profitability measure by ROA [18], in generally GCG has positive impact on all the performance indicators of an organization [19], the other result show that GCG has relationship with bank performance [20]. In other studies, the result show that the relationship between GCG and firm performance in Chinese Institutional environment is sharply different from the predictions of the agency theory [5]. Like in other approaches, the GCG research contributes the comprehensive model of board gender diversity characteristic and will consequently has policy implications on governance guidelines [21,22].…”