Premium Essay

Literature Review On Corporate Governance

Submitted By
Words 1370
Pages 6
Literature review:

Corporate governance:
Corporate governance last few decade and continuously affairs some large scandals in USA , ASIA and other countries also effects in these crises. Some organization insolvency or some are bankruptcy that’s all the weak corporate governance. in the last there is a huge improvement coming in the corporate governance and there is a huge improvement in intellectual capital. Intellectual capital is a knowledge base economy such is land, labor and capital. Nowadays intellectual capital and corporate governance is a key of success of any organization and especially that organization that are knowledge base organization. (Quinn et al., 1996),

Corporate governance is …show more content…
Intellectual capital totally depends on corporate governance because if corporate governance is good and there must be intellectual capital is good. The company corporate governance is good like rules regulation and who gives rights to shareholders, stakeholders, suppliers, customers, community and also minority shareholders. In this exact topic there is little literature available throughout the world but in Pakistan is one and two literature available there are not many study available on the impact of corporate governance on intellectual capital performance.(Keenan, aggestam)

The success of organization is corporate governance. Corporate governance is very important for any organization who wants to become successful in the future. There is no specific governance throughout the world any country has their own corporate governance (Rouf 2011)
Corporate governance give a huge improvement in the organization and improve their performance and also the corporate governance protect the shareholder, stakeholders etc. The corporate governance protect all the minority share holder and maximizing their equity as well. Corporate governance also encourage that any organization who has strong corporate governance the can affect the performance of the firms (Wu, 2004, Aguilera, …show more content…
If the large board size we have good corporate governance then we can easily survive but if we have week corporate governance then we become very difficult to survive (ho, coral –Anne, and s mitchill Williams 2003)

The past researchers found that there are negative relationship between corporate governance performance and board size (Guo Z and kumara u 2012) and also there are negative relationship between board size and intellectual capital performance (Ho carol- Anne)

This is another researcher who also argues that the large board size will give you high performance. In the large board size we get allot of information from different expertise and the help of these people we become more successful in the future.(pearce j ,A and zehra 1989)

(Maria et al) Argue that there is significant relationship with intellectual capital and board size.

BOARD

Similar Documents

Premium Essay

“Good Corporate Governance as a Vital Constituent of Corporate Social Responsibility” with Reference to Indian Mncs

...“Good corporate Governance as a vital constituent of Corporate Social Responsibility” with reference to Indian MNCs Type: Literature review Name of Research Scholar: Santosh Basavaraj, Research Scholar, Anna University of Technology, Coimbatore. Research Supervisor: Dr.B.Rajasekaran, Principal, RKKR School of Management Studies Ettimanickampatty, Coimbatore Road, SALEM – 637 504 Contact Number & Email ID:997209785,santosh_bs2001@yahoo.com Purpose: This research paper aims at gaining an insight into the concepts of Corporate Governance and CSR which enables this researcher to generate new ideas on concepts under study. The central purpose of this research paper is to determine how companies Corporate Social Responsibility practices blended in Corporate Governance and to study integration of CSR with CG which enable future researchers to study how companies are able to sustain its Competitive edge with good CSR activities by considering some good practices followed in industry and their critical evaluations in recent events. This research sets the foundation for future study and refers literature to develop a new hypothesis in the concept of CSR. An additional objective of this research paper is to review the Literature on Corporate governance and studying the Juxtaposition of CG and ethical issues for better corporate social responsibility. Design/methodology/approach This is an exploratory research design and it is used to seek insight in general nature...

Words: 3787 - Pages: 16

Premium Essay

Research Proposal

...A STUDY OF EFFECT OF CORPORATE GOVERNANCE PRACTICES AND BOARD COMPOSITION ON DIVIDEND PAYOUT POLICIES ON NIFTY 50 COMPANIES (2000-2012) | RESEARCH PROPOSAL, BUSINESS RESEARCH METHODS | | 2/27/2013 2/27/2013 Abstract Purpose: The purpose of this study is to examine the relationship between Corporate Governance practices and corporate dividend policy in India. Design/methodology/approach: Data regarding ownership structure, dividend policies and board composition would be collected for 40 non-financial companies listed on National Stock Exchange in India. The period of investigation has been taken from 2000-2012. Regression models would be run to define the relationship and for estimation purpose. Potential Findings: Based on the some heuristics and back of mind observations it can be seen that board size and composition, extent of ownership of promoters, the amount of free float in the market, firm size and investment opportunities are positively and significantly associated with dividend policies and dividend payout decisions. On the contrary, there are some instances which show a negative relationship between profitability and dividend payouts indicating the need of reinvesting funds. A significant number of independent directors in the board also have an impact on the payout policies, albeit not a significant one. A number of positive NPV investment opportunities also bear a negative relationship with dividend payout as more money is retained to invest...

Words: 2853 - Pages: 12

Premium Essay

Bjhkh

...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. By doing this, italso provides the structure through which the company’s objectives are set and the means of obtaining those objectives and monitoring performance. Corporate governance may be the ways of bringing the interests of investors and managers into line and ensuring that firms are run for the benefit of investors. Given the state of the economy of Pakistan in 2010, troubled as it is; ideally it would be more desirable to look at the governance issues at macro level for Pakistan. As a famous economist, Dr Shahid Javaid Burki- a long observer of Pakistan’s economy has recently stated “Pakistan can generate a greater bounce in its economy than India by creating better governance. It has occurred before in the country’s difficult economic history and could happen again.” (Improved Governance: Dawn, 12th, October 2010). However, as a starting point , in this paper we look at closely the governanceissues for the...

Words: 2668 - Pages: 11

Premium Essay

Research Proposal

...of mobile telecommunications corporate governance firms in Zimbabwe. By Mugombe Godfrey Background and Introduction The purpose of this study is to provide insight into the association between business performance of the telecommunications sector in Zimbabwe and corporate governance practices as prescribed in the Organization for Economic Cooperation and Development (OECD). It is widely believed that better corporate governance manifest itself in enhanced corporate performance and lead to higher economic growth (Brickley & James, 2011). There are four major players in the mobile telecommunications sector of Zimbabwe namely Econet Wireless Zimbabwe, Telecel Zimbabwe, NetOne and Africom. NetOne is a state controlled entity whilst the other three companies are privately owned with Econet Wireless Zimbabwe commanding the lion’s share of mobile telephone & broadband business in Zimbabwe (Econet Wireless Zimbabwe, 2013). Statement of the problem The major telecommunications companies in Zimbabwe like NetOne, Telecel, Africom and Econet have embraced corporate governance principles and practices since the turn of the new millennium. However, as Ernst & Young (2012) and Gwatiringa (2012) show, wide ranging differences on corporate performance exist in these companies even after the introduction of the multiple currency regime in 2009. It therefore remains unknown to the public stakeholders and the practitioners of corporate governance in general and potential investors...

Words: 1395 - Pages: 6

Premium Essay

Ghghgh

...International Journal of Academic Research in Accounting, Finance and Management Sciences Vol. 3, No.1, January 2013, pp. 136–148 ISSN: 2225-8329 © 2013 HRMARS www.hrmars.com Corporate Board Diversity in Malaysia: A Longitudinal Analysis of Gender and Nationality Diversity Dalilawati ZAINAL1 Norhayah ZULKIFLI2 Zakiah SALEH3 Faculty of Business and Accountancy, University of Malaya, 50603, Kuala Lumpur, Malaysia 1 2 Email: dalilawati@um.edu.my/dee_dalila@yahoo.com , Email: norhayah@um.edu.my 3 Email: zakiahs@um.edu.my Abstract This study examines the trend of gender and nationality diversity of corporate board in top 300 Malaysian public listed firms over a five-year period from year 2005 to 2009. It also identifies any significant difference in characteristics of firms with women and foreign directors and those without women and foreign directors. Based on the secondary data derived from firms’ annual report, a longitudinal descriptive analysis on the trend of board diversity is presented. Mann-Whitney U test is conducted to identify several characteristics that differentiate between firms with women and foreign directors and those without women and foreign directors. This study found little change in the presence of women directors and foreign directors over the five-year period, which reflects a slow progress in board diversity in Malaysia. Other than that, several characteristics that differentiate between firms with women and foreign directors and those without women...

Words: 8658 - Pages: 35

Premium Essay

Corporate Governance

...academic theories surrounding corporate governance will be explored (agency; stewardship and stakeholder) in examining the investor protection framework within the banking industry. Peter Gourevitch argues that various differing corporate governance models exists globally as a result of differing political climates which shape the rules and regulations that make up a country’s corporate governance model. Erik Berglof and Stijn Claessens argue that enforcement is the key to good corporate governance. However, enforcement is a result of a country’s political system which ultimately decides on the framework for regulation and enforcement. Peter Mulbert discusses corporate governance of banks in a principal-agent framework and that the corporate governance of a bank differs from those of a regular firm. This is contrasted with T.G. Arun and J.D. Turner’s discussion of corporate governance of banks in developing economies. Rafael La Porta et al. in their paper “Investor protection and corporate governance” argue that “that the legal approach is a more fruitful way to understand corporate governance and its reform than the conventional distinction between bank-centered and market-centered financial systems.” They continue to argue in their paper “Law and Finance” that investor protection are usually strongest in common-law based countries as compared to civil-law based countries within a corporate governance framework. This literature review provides a very strong academic...

Words: 422 - Pages: 2

Premium Essay

Corporate Governance

...------------------------------------------------- Corporate governance literature review Prepared by: Zainab Ashfaq (4525819) Unit Code: BGP8022 CEO DUALITY-THE COMBINATION OF CHAIRMAN AND CEO ROLES A literature review of different theories and empirical research about CEO Duality. INTRODUCTION Recent financial scandals like Enron, Mobily and WorldCom arise a demand for a better monitoring and controlling structure within the organizations. Conflict of interest between the shareholders and the managers is an on going debate in the literature of corporate governance. In this situation, the board of directors is supposed to be a critical mechanism in supervising the actions of management. Researchers of corporate governance field are well motivated to study about the numerous features of the board of directors based on different theoretical backgrounds. Agency theory and the stewardship theory has been widely used as a theoretical framework by many of these studies. Concerning the board of directors, a developing area of research is whether the CEO and board Chairman roles are split or not to be split (Dey, Ellen and Liu 2011). Agency theory proponent claims that in the best interests of shareholders it is necessary to have a separate Chairman of board and CEO (Nicholson and Kiel 2007). On the contrary, stewardship theory supporters believe in the concept of CEO duality in which the role of CEO and board chair is performed by one...

Words: 4334 - Pages: 18

Premium Essay

Corporate Governance Journal

...(2014) 162 – 171 10th International Strategic Management Conference Comparison of public and non-public SMEs’ corporate governance strategies in Turkey Gülsevim Yumuk Günaya , Sudi Apakb, a c a Trakya University, 22030, Turkey Beykent University, Istanbul, 34396, Turkey Abstract Small and medium sized enterprises (SMEs) are very important for economic development. If proper corporate governance strategies are implemented by SMEs, their growth opportunities are expected to increase. In order to understand the impact of proper corporate governance strategies of SMEs, public and non-public companies are compared. In this study, corporate governance scores for nine public and nine non-public SMEs are calculated. It is found that only three of the public SMEs and none of the non-public SMEs had adequate corporate governance score which is based on Capital Market Board of Turkey’s corporate governance principles about stakeholders. © 2014 Published by Elsevier Ltd. This is an open access article under the CC BY-NC-ND license th © 2014 Published by Elsevier Ltd. Selection and/or peer-review under responsibility of the 10 International Strategic (http://creativecommons.org/licenses/by-nc-nd/3.0/). Management Conference Peer-review under responsibility of the International Strategic Management Conference. Keywords: SMEs, Corprorate governance, Public firms, Non-public firms 1. Introduction Small and medium sized enterprises (SMEs) are extremely important...

Words: 6419 - Pages: 26

Premium Essay

Accounting in China

...International Journal of Accounting & Information Management The role of corporate governance in convergence with IFRS: evidence from China Yu Chen Zabihollah Rezaee Downloaded by UNIVERSITI MALAYSIA SABAH At 05:16 06 October 2015 (PT) Article information: To cite this document: Yu Chen Zabihollah Rezaee, (2012),"The role of corporate governance in convergence with IFRS: evidence from China", International Journal of Accounting & Information Management, Vol. 20 Iss 2 pp. 171 - 188 Permanent link to this document: http://dx.doi.org/10.1108/18347641211218470 Downloaded on: 06 October 2015, At: 05:16 (PT) References: this document contains references to 50 other documents. To copy this document: permissions@emeraldinsight.com The fulltext of this document has been downloaded 1824 times since 2012* Users who downloaded this article also downloaded: Songlan Peng, Kathryn Bewley, (2010),"Adaptability to fair value accounting in an emerging economy: A case study of China's IFRS convergence", Accounting, Auditing & Accountability Journal, Vol. 23 Iss 8 pp. 982-1011 http://dx.doi.org/10.1108/09513571011092529 Randy Moser, (2014),"IFRS and convergence in China and the USA", Journal of Technology Management in China, Vol. 9 Iss 1 pp. 56-66 http://dx.doi.org/10.1108/JTMC-12-2013-0042 Ronita D. Singh, Susan Newberry, (2008),"Corporate governance and International Financial Reporting Standard (IFRS): The case of developing countries", Research in Accounting in...

Words: 9957 - Pages: 40

Premium Essay

External Environment

...Ownership and Disclosure A Review of Literature By BADRU Bazeet and Mousa Sharaf Adin Hezam Abstract This is a review of various literatures on ownership and disclosure which has been carried out by various researchers in different countries. So far majorities of the researchers shows that the extent of corporate disclosure is negatively associated with a higher management of ownership structure and the extent of corporate voluntary disclosures is positively related with a higher institutional ownership structure. But findings also show that the negative relationship is weaker if the firm has a higher proportion of independent non- executive directors. Introduction Ownership Structure is a mechanism that aligns the interest of Shareholders and Managers. Corporate governace is the capstone of the activities that can reduce agency costs. Corporate mangers disclosure policies are influenced by firm’s ownership and governance on the level of various types of information disclosure. This is a summary of literature review on ownership structure and corporate disclosure. Studies have shown that ownership structure can be state, legal, managerial and block holder depending on the countries and cultural environment. Blockholder ownership is the percentage of shares held by substancial shareholders( that is shareholdings of 5% or more). Jensen and Meckling (1976) argue that substancial shareholders are expected to have both greater power and incentives to monitor management, as...

Words: 1450 - Pages: 6

Premium Essay

Zahid

...World Review of Business Research Vol. 2. No. 2. March 2012. Pp. 16 - 31 Corporate Governance-Its Problems & Prospects in Banking Industry in Bangladesh Begum Ismat Ara Huq* and Mohammad Zahid Hossain Bhuiyan** Corporate Governance ensures to bring transparency, accountability and professionalism in the management system of a corporate body that enhances the credibility and acceptability to the shareholders, employees, potential investors, customers, lenders, governments and all other stakeholders. This is more true in case of Banking Industry. Since Banks deal in public money, public confidence is of outmost importance in this Industry. The study aims at finding out problems & deficiencies involved in Corporate Governance practice in Banking Industry in Bangladesh and also suggesting ways and means to remove the same in order to make the Corporate Governance practice sound and effective. In this study, both the primary and secondary data were used. The primary data relating to problems involved in Corporate Governance practice and suggestions to remove the same were collected on the basis of a questionnaire by interviewing 24 randomly selected Bank personnel such as Directors of the Board as the internal part of management and the Auditors as the external group. The secondary data were collected through an extensive literature survey on the subject. The study has identified some major problems in Corporate Governance practice in the Banking Industry of the country. The prospect...

Words: 5716 - Pages: 23

Premium Essay

Compliance of Ias 16 by Bangladeshi Cement Company

...World Review of Business Research Vol. 2. No. 2. March 2012. Pp. 16 - 31 Corporate Governance-Its Problems & Prospects in Banking Industry in Bangladesh Begum Ismat Ara Huq* and Mohammad Zahid Hossain Bhuiyan** Corporate Governance ensures to bring transparency, accountability and professionalism in the management system of a corporate body that enhances the credibility and acceptability to the shareholders, employees, potential investors, customers, lenders, governments and all other stakeholders. This is more true in case of Banking Industry. Since Banks deal in public money, public confidence is of outmost importance in this Industry. The study aims at finding out problems & deficiencies involved in Corporate Governance practice in Banking Industry in Bangladesh and also suggesting ways and means to remove the same in order to make the Corporate Governance practice sound and effective. In this study, both the primary and secondary data were used. The primary data relating to problems involved in Corporate Governance practice and suggestions to remove the same were collected on the basis of a questionnaire by interviewing 24 randomly selected Bank personnel such as Directors of the Board as the internal part of management and the Auditors as the external group. The secondary data were collected through an extensive literature survey on the subject. The study has identified some major problems in Corporate Governance practice in the Banking Industry of the country. The prospect...

Words: 5716 - Pages: 23

Premium Essay

Setting the Pace: Getting Started in Ngo Corporate Governance

...Setting the pace and getting started in NGO Corporate governance. An Assessment of corporate governance for Non Governmental Organizations in Zimbabwe By Lasford Flackson lasyflackson@gmail.com .Tel:+263773931949 Table of contents Introduction Chapter one An overview of corporate governance The evolution of governance Development of corporate governance Approaches to corporate governance Chapter two Adaptation and adoption of corporate governance Ngo sector in Zimbabwe Requirements for NGO operation in Zimbabwe Guiding principles for good corporate governance Chapter three Conclusion and Recommendations 2 Introduction The collective problem of business today is increasingly attributed to the failure of corporate governance. This means that far too many boards are failing to execute their duties responsibly, both collectively and individually. Despite increasing awareness, there is a general lack of understanding of the principles of effective corporate governance in most quarters. The study sought to assess corporate governance issues and challenges for non governmental organisations. The study takes a point of departure in explaining how non governmental organisations can adapt and adopt effective corporate governance practices viz- a- viz, how NGOs can adapt and adopt to corporate governance. Several non governmental organisations do not observe good corporate governance and this to the collapse of many. There are no set rules ...

Words: 10898 - Pages: 44

Premium Essay

Corporate Governance

...Wilfrid Laurier University Scholars Commons @ Laurier Theses and Dissertations (Comprehensive) 2010 Three Essays in Corporate Governance Vishaal Rabindranauth Anand Baulkaran Wilfrid Laurier University Follow this and additional works at: http://scholars.wlu.ca/etd Part of the Management Sciences and Quantitative Methods Commons Recommended Citation Baulkaran, Vishaal Rabindranauth Anand, "Three Essays in Corporate Governance" (2010). Theses and Dissertations (Comprehensive). Paper 1121. This Dissertation is brought to you for free and open access by Scholars Commons @ Laurier. It has been accepted for inclusion in Theses and Dissertations (Comprehensive) by an authorized administrator of Scholars Commons @ Laurier. For more information, please contact scholarscommons@wlu.ca. 1*1 Library and Archives Canada Bibliotheque et Archives Canada Published Heritage Branch Direction du Patrimoine de I'edition 395 Wellington Street Ottawa ON K1A 0N4 Canada 395, rue Wellington Ottawa ON K1A 0N4 Canada Your file Votre reference ISBN: 978-0-494-75409-2 Our file Notre reference ISBN: 978-0-494-75409-2 NOTICE: AVIS: The author has granted a nonexclusive license allowing Library and Archives Canada to reproduce, publish, archive, preserve, conserve, communicate to the public by telecommunication or on the Internet, loan, distribute and sell theses worldwide, for commercial or noncommercial purposes, in microform, paper...

Words: 16083 - Pages: 65

Premium Essay

Term Paper

...Chapter 1 Introduction Corporate governance (CG) is an important effort to ensure accountability and responsibility and is a set of principles, which should be incorporated into every part of the organization. The need for corporate governance arises from the potential conflicts of interest among stakeholders in the corporate structure. These conflicts of interest often arise from two main reasons. First, different stakeholders have different goals and preferences. Second, the stakeholders have imperfect information as to each others actions, knowledge, and preferences. Corporate governance (CG) is an important effort to ensure accountability andresponsibility and is a set of principles, which should be incorporated into every part ofthe organization. Though it is viewed as a recent issue, there is, in fact, nothing newabout the concept. Because it has been in existence as long as the corporation itself-aslong as there has been large – scale trade, reflecting the need for responsibility in thehandling money and the conduct of commercial activities. Chapter 2 Literature review 2.1 What is Corporate Governance? Different authors view the meaning of corporate governance differently. For example, one school of thought describe corporate governance as a “system” by which companies are directed and controlled (Cadbury and Greenbury Report, CFACG 1992); another school views corporate governance as “structures and processes for decision making, accountability, control and behavior...

Words: 287 - Pages: 2