...the Financial Performance: An Empirical Study on Egypt Nourhan K. Karkoura* Pharos University in Alexandria, Egypt Abstract Corporate governance can be viewed as a mechanism that ensures external investors receive proper returns on their investments. This paper investigates the effect of board size and the effect of ownership structure on firm performance in Egypt. Using a sample non- financial corporation from the most active 50 corporations listed in the stock exchange after excluding banks and financial firms for the period 2007 to 2009. This study adopts a correlational research design using secondary data from the disclosure book issued by the Egyptian stock exchange. Multiple regressions are used to determine the extent to which variations in performance of the most active corporations is explained by the board size and ownership structure. Firm financial performance is measured by return on assets, returns on equity and Tobin Q ratio, while corporate governance aspects were board size and ownership structure. Keywords: board size, ownership structure, financial performance, and Egypt Nourhan K. Karkoura, Graduate Teacher Assistant in Finance and Investment Department, Faculty of Financial and Administrative Sciences, Pharos University in Alexandria, Egypt, E-mail: nourhan.khaled@pua.edu.eg 1. Introduction The importance of corporate board size and ownership structure as a mechanism of corporate governance has always been a matter of considerable academic...
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...Corporate governance From Wikipedia, the free encyclopedia Jump to: navigation, search Corporate governance is the set of processes, customs, policies, laws, and institutions affecting the way a corporation is directed, administered or controlled. Corporate governance also includes the relationships among the many stakeholders involved and the goals for which the corporation is governed. The principal stakeholders are the shareholders, management, and the board of directors. Other stakeholders include labor(employees), customers, creditors (e.g., banks, bond holders), suppliers, regulators, and the community at large. Corporate governance is a multi-faceted subject.[1] An important theme of corporate governance is to ensure the accountability of certain individuals in an organization through mechanisms that try to reduce or eliminate the principal-agent problem. A related but separate thread of discussions focuses on the impact of a corporate governance system in economic efficiency, with a strong emphasis shareholders' welfare. There are yet other aspects to the corporate governance subject, such as the stakeholder view and the corporate governance models around the world (see section 9 below). There has been renewed interest in the corporate governance practices of modern corporations since 2001, particularly due to the high-profile collapses of a number of large U.S. firms such as Enron Corporation and Worldcom. In 2002, the U.S. federal government passed the Sarbanes-Oxley...
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...l h o m e p a g e : w w w. e l s ev i e r. c o m / l o c a t e / j e m p f i n Corporate governance and firm value: International evidence☆ Manuel Ammann a, David Oesch b, Markus M. Schmid c,⁎ a b c Swiss Institute of Banking and Finance, University of St. Gallen, CH-9000 St. Gallen, Switzerland Department of Finance, Stern School of Business, New York University, New York, NY 10012, USA University of Mannheim, Finance Area, D-68131 Mannheim, Germany a r t i c l e i n f o a b s t r a c t In this paper, we investigate the relation between firm-level corporate governance and firm value based on a large and previously unused dataset from Governance Metrics International (GMI) comprising 6663 firm-year observations from 22 developed countries over the period from 2003 to 2007. Based on a set of 64 individual governance attributes we construct two alternative additive corporate governance indices with equal weights attributed to the governance attributes and one index derived from a principal component analysis. For all three indices we find a strong and positive relation between firm-level corporate governance and firm valuation. In addition, we investigate the value relevance of governance attributes that document the companies' social behavior. Regardless of whether these attributes are considered individually or aggregated into indices, and even when “standard” corporate governance attributes are controlled for, they exhibit a positive and significant effect on...
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...VANITA YADAV C.V. BAXI CORPORATE GOVERNANCE FAILURE AT SATYAM “Why do you want to quit Satyam,”1 the panel member asked the 30-year-old employee being interviewed. Satyam Computer Services Ltd (“Satyam”) was India’s fourth-largest computer services company; however, many employees had left and applied for new jobs after news of a US$1.4 billion corporate fraud at Satyam became public in December 2008. 2 Satyam’s governance failure had severely shaken its stakeholders and the global business community, and the business press worldwide referred to Satyam as “India’s Enron”.3 Satyam was listed on the New York Stock Exchange (“NYSE”) in 2001 and on Euronext Amsterdam in 2008. 4 It boasted a large number of clients, including many Fortune 500 companies.5 The founder of Satyam Computer Services, B. Ramalinga Raju (“Raju”), was a highly regarded entrepreneur and an eminent fixture at prestigious corporate events in India.6 In 2007, he was honoured with the Ernst & Young Entrepreneur of the Year award, yet a mere two years later, on 7 January 2009, Raju made the calamitous confession that he had falsified accounts on a grand scale over a long period of time. His shocking announcement sparked a big debate over whether India possessed adequate guidelines for corporate governance. 7 How did Raju commit a fraud of such magnitude? How could a successful company, twice awarded the Golden Peacock award for corporate governance excellence collapse in such a manner? 8 Where did the internal...
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...uk/BJASS.aspx Corporate Governance and Performance of Saudi Arabia Listed Companies Yahya Ali Al-Matari Faculty of Accountancy, Universiti Utara Malaysia matariyahya@yahoo.com Dr. Abdullah Kaid Al-Swidi College of Arts & Sciences, Universiti Utara Malaysia swidi@uum.edu.my, and Assoc. Prof. Dr. Faudziah Hanim Bt Fadzil Faculty of Accountancy, Universiti Utara Malaysia fhanim@uum.edu.my Abstract: This study aims to provide a concise view of the background of Saudi Arabia‟s legal system, important regulations and monitoring policies related to the corporate governance followed by the Saudi government to enhance the attractiveness of the business environment. In so doing, this study attempted to provide an overview on corporate governance in the emerging markets and more specifically in Saudi Arabia. Additionally, this study has shed lights on the main monitoring devices which play a significant role in regulating and developing the Saudi business environment. The focus was on some corporate governance mechanisms that might affect firm performance including board composition (BODCOM), CEO duality (DUAL), board size (BSIZE), audit committee independence (ACIND), audit committee activities (ACMEET) and audit committee size (ACSIZE). Keywords: Corporate governance, firm performance, emerging countries, Saudi Arabia. 1 British Journal of Arts and Social Sciences ISSN: 2046-9578, 1. Introduction The topic of corporate governance is assuming growing...
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...also the national interest. The Companies Act 2013, guarantees several rights to investors and also regulates the affairs of a company with a view to ensure efficient functioning of a company so that investors may receive their due returns of the capital invested by them and their rights and interests are adequately protected. Investors are the real owners of a company but the power of management of the company is vested in the Board of Directors. There are chances to abuse of power like committing fraud, by few directors of the company. As we know that there is close nexus between corporate governance and ethics but conflicts between these two are also bound to occur. Corporate fraud, an inevitable incident occurring, in recent, is an aggravated form of corruption in corporate world. It is difficult to prevent and to catch such white collar crimes. Such incidents reduce the interest and trust in corporate investments and in...
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...The Corporate Governance Role of the Media Alexander Dyck* Harvard Business School And Luigi Zingales University of Chicago May 2002 Abstract Do media play any role in corporate governance? In this paper we argue that media pressure corporate managers and directors to behave in ways that are “socially acceptable”. Sometimes this coincides with shareholders’ value maximization, others not. We provide both anecdotal and systematic evidence that media affect companies’ policy toward the environment and the amount of corporate resources that are diverted to the sole advantage of controlling shareholders. Our results have important consequences for the focus of the corporate governance debate and for the feasibility of reforms aimed at improving corporate governance around the world. * We thank Mehmet Beceren for assistance in preparing the data and Rakhesh Khurana, Jay Lorsch,, Forest Reinhardt, Richard Vietor, Andy Zelleke and seminar participants at Harvard Business School for helpful comments on an earlier draft. Alexander Dyck gratefully acknowledges financial support from the Division of Research of Harvard Business School and Luigi Zingales from the George Stigler Center at the University of Chicago. In April 1992 the Wall Street Journal published a strange ad. It was a full-page picture of a silhouette of the Board of Directors of Sears Roebuck with the title: the “non-performing assets of Sears”. The ad, paid by shareholder activist Robert Monks, exposed all the directors...
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...PROOF Contents List of figures Preface xiii x Part I Structures for Family and Business: Family Business Governance 1 Chapter 1 Maximizing Success through Professional Family Business Governance 3 Alexander Koeberle-Schmid Interview: Dr. Jürgen Heraeus, chairman, Heraeus Holding, Germany 3 Family enterprises are special 7 Sound family business governance 9 Best-practice recommendations 16 Important definitions 17 Chapter 2 Challenges to the Governance of the Family Enterprise 20 Ernesto J. Poza Interview: Mr. Bruce T. Halle, chairman, Discount Tire, USA 20 Family business governance is critically important 25 Challenges to family business governance 25 Which hat to wear: parent, owner, or CEO? 32 Simultaneous optimization of family-ownership and business 33 Best-practice recommendations 35 v PROOF Contents Chapter 3 Evolution of Governance Structures and Systems Ernesto J. Poza Interview: Julio Cazorla, managing director, family office, Grupo Landon, Spain 36 Evolution and sustainability 42 Effective governance is more than just structures 43 The long term 45 Evolution by design 48 The founder exits; a family office is started 50 The family assembly 52 The annual general meeting 52 Best-practice recommendations 54 Chapter 4 Responsible Ownership in Family Enterprises 56 Denise Kenyon-Rouvinez Interview: Franz M. Haniel, chairman of the board of directors, Haniel, Germany 56 Interview: Karl-Erivan W. Haub, chief executive officer, and Christian Haub, chief...
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...1 Satyam Scam in the Contemporary Corporate World: A Case Study in Indian Perspective Introduction Satyam Computer Services Ltd was founded in 1987 by B.Ramalinga Raju. The company offers information technology (IT) services spanning various sectors, and is listed on the New York Stock Exchange and Euronext.Satyam's network covers 67 countries across six continents. The company employs 40,000 IT professionals across development centers in India, the United States, the United Kingdom, the United Arab Emirates, Canada, Hungary, Singapore, Malaysia, China, Japan, Egypt and Australia. It serves over 654 global companies, 185 of which are Fortune 500 corporations. Satyam has strategic technology and marketing alliances with over 50 companies. Apart from Hyderabad, it has development centers in India at Bangalore, Chennai, Pune, Mumbai, Nagpur, Delhi, Kolkata, Bhubaneswar, and Visakhapatnam. "The truth is as old as the hills" opined Mahatma Gandhi, christened the Father of the Nation by Indians. So a company named "Satyam" (Truth, in Sanskrit) inspired trust. The IT boom in India, was fuelled by young, middle-class, and educated, budding Indian entrepreneurs and Western firms anxious to outsource to take advantage of high-skill, low-wage worker. This trend created a new breed of businessmen for the 21st century and generated many fortunes literally overnight. The global corporate community was flabbergasted and scandalized when the Chairman of Satyam, Mr. Ramalinga Raju resigned...
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...acknowledgement to all who have contributed to this work in some form: writing this thesis would have otherwise been like swimming through mud. To my supervisor, Professor Andreas van Wyk, thank you for your leadership, patience, and academic skill in guiding me through the research process. To Adéle Mulder and Charl Marais, thank you for your continuous insight and perspectives, both academic and otherwise. And finally to Hilda and Gerrie Steyn, who have been absolutely crucial throughout all my years of study, thank you for your indispensable support, in all its forms. iv SUMMARY The worldwide increase of corporate failures on the scale of Enron and WorldCom has sparked a renewed international trend of corporate governance review. With the external company auditor blamed at least in part for many corporate failures, corporate governance reform also necessitates a review of the statutory regulation of the company auditor. In particular, the lack of auditor independence when auditing clients has been under the legislator’s spotlight. The problems associated with unregulated or poorly regulated auditors are well...
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...Executive Management & Shariah Advisory Board Current Em- | Dr Cheong Choong Kong - Chairman | | | | Dr Cheong was first appointed to the Board on 1 July 1999 and last re-elected as a Director on 17 April 2008. On 1 July 2003, he was appointed Chairman, after having served as Vice Chairman from 26 March 2002 to 30 June 2003. Dr Cheong brings with him a wealth of experience gained in his extensive career, including 29 years at Singapore Airlines Ltd, where he last held the position of Deputy Chairman and Chief Executive Officer. He is a Director of several companies, including Great Eastern Holdings Ltd. Dr Cheong holds a Bachelor of Science with First Class Honours in Mathematics from the University of Adelaide and a Master of Science and Ph.D. in Mathematics and (Honorary) Doctor of Science from the Australian National University. Age 69. | | | | | | | | | | Mr Bobby Chin | | | | Mr Chin was first appointed to the Board on 1 October 2005 and last re-elected as a Director on 17 April 2009. He is presently the Chairman of Singapore Totalisator Board and a member of the Council of Presidential Advisers of the Republic of Singapore, and serves on the board of several companies, including Neptune Orient Lines Ltd and Sembcorp Industries Ltd. He also serves as a Board Member of Singapore Labour Foundation, a Board Trustee of Singapore Indian Development Association and a Member of the Competition Commission of Singapore...
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...contents Corporate Information 2 Corporate Structure 3 Financial Highlights 4 Directors’ Profile 5 Significant Events 8 Corporate Social Responsibility 12 Chairman’s Statement 16 Corporate Governance Statement 19 Audit Committee Report 33 Statement on Risk Management and Internal Control 37 Financial Statements 40 List of Properties 106 Analysis of Shareholdings 107 Notice of Eighth Annual General Meeting 110 Statement Accompanying the Notice of the Eighth Annual General Meeting 114 Proxy Form 2 POWER ROOT BERHAD (Company No.: 733268-U) Corporate Information SHARE REGISTRAR BOARD OF DIRECTORS Y.M. Tengku Shamsulbhari bin Tengku Azman Shah, Independent Non-Executive Chairman SMK. Dato’ Low Chee Yen Managing Director Dato’ How Say Swee Executive Director Dato’ Wong Fuei Boon Executive Director REGISTERED OFFICE See Thuan Po Executive Director 31-04 Level 31, Menara Landmark No. 12 Jalan Ngee Heng 80000 Johor Bahru, Johor Tel : 07 – 278 1338 Fax : 07 – 223 9330 Ong Kheng Swee Independent Non-Executive Director Datuk Faizoull bin Ahmad Non-Independent Non-Executive Director (Appointed on 30 September 2013; Resigned on 27 March 2014) Dato’ Tea Choo Keng (Alternate Director to Y.M. Tengku Shamsulbhari bin Tengku Azman Shah, Datuk Sarchu bin Sawal Non-Independent Non-Executive Director (Resigned on 30 September...
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...INSIDE Wipro in Brief Customer Focus Financial Highlights Chairman's Letter to the Stakeholders CEO's Letter to the Stakeholders CFO's Letter to the Stakeholders Board of Directors Sustainability Highlights 2012-13 Management Discussion & Analysis Directors Report Corporate Governance Report Business Responsibility Report Standalone Financial Statements Consolidated Financial Statements Consolidated Financial Statements under IFRS Glossary 2 4 8 10 12 14 16 22 24 41 55 85 106 147 183 231 This Annual Report is printed on 100% recycled paper as certified by the UK-based National Association of Paper Merchants (NAPM) and France - based Association des Producteurs et des Utilisateurs des papiers et cartons Recycles (APUR). Certain statements in this annual report concerning our future growth prospects are forward-looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in our earnings, revenue and profits, our ability to generate and manage growth, intense competition in IT services, our ability to maintain our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration...
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...2014 ANNUAL REPORT Australia and New Zealand Banking Group Limited ABN 11 005 357 522 This Annual Report (Report) has been prepared for Australia and New Zealand Banking Group Limited (“the Company”) together with its subsidiaries which are variously described as: ”ANZ”, “Group”, “ANZ Group”, “the Bank”, “us”, “we” or “our”. ANZ ANNUAL REPORT 2014 ANZ IS EXECUTING A FOCUSED STRATEGY TO BUILD THE BEST CONNECTED, MOST RESPECTED BANK ACROSS THE ASIA PACIFIC REGION WHO WE ARE AND HOW WE OPERATE ANZ’s history of expansion and growth stretches over 175 years. We have a strong franchise in Retail, Commercial and Institutional banking in our home markets of Australia and New Zealand and we have been operating in Asia Pacific for more than 30 years. Today, ANZ operates in 33 countries globally. We are the third largest bank in Australia, the largest banking group in New Zealand and the Pacific, and among the top 20 banks in the world. ANZ is building the best connected, most respected bank across the Asia Pacific region. The strategy has three key elements – strong domestic markets, profitable Asian growth and an enterprise wide approach to operations and technology. Our strategy is based on the belief that the future of our home markets of Australia and New Zealand are increasingly linked to the fast growing region of Asia through trade, capital and wealth flows. We also believe that people want a bank that understands their specific needs, and increasingly...
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...enjoyment of life, respect for people and our planet. To win in all markets with Heineken® and with a full brand portfolio in markets where we choose. Overview 2 The Quick Read Regional Review 16 Our Regions 58 Consolidated Statement of Cash Flows Report of the Executive Board 3 Chief Executive’s Statement 17 60 Consolidated Statement of Changes in Equity 5 Outlook 2014 19 6 Executive Committee 20 Central and Eastern Europe Contents Operational Review 8 Our Business Priorities 10 Grow the Heineken® brand 11 Consumer-inspired, customeroriented and brand-led Africa Middle East 18 Americas Asia Pacific 21 Western Europe 27 Financial Review Corporate Governance Statement 12 Capture the opportunities in emerging markets Report of the Supervisory Board 43 To the Shareholders 13 Leverage the benefits of HEINEKEN’s global scale 47 14 Drive personal leadership 15 Embed and integrate sustainability 129 Heineken N.V. Balance Sheet 129 Heineken N.V. Income Statement 22...
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