Template-Type: ReDIF-Article 1.0 Author-Name: Punam Prasad Author-X-Name-First: Punam Author-X-Name-Last: Prasad Author-Name: Narayanasamy Sivasankaran Author-X-Name-First: Narayanasamy Author-X-Name-Last: Sivasankaran Author-Name: Palanisamy Saravanan Author-X-Name-First: Palanisamy Author-X-Name-Last: Saravanan Author-Name: Manoharan Kannadhasan Author-X-Name-First: Manoharan Author-X-Name-Last: Kannadhasan Title: Does corporate governance influence the working capital management of firms: evidence from India Abstract: The study explores the impact of corporate governance on the working capital management of Indian firms. The investigation has been performed using balanced panel data procedures for a sample of 323 Indian non-financial firms listed in the Bombay Stock Exchange for the period 2007-2017. Findings of our study indicate that the CEO duality, one of the nine board indicators play a role in improving the working capital management of the sample firms. The default tax payment of the legal indicator and the additional information disclosure of the proactive indicators also have an effect on the working capital management of the Indian non-financial firms. This study is unique as it reveals the impact of corporate governance on the working capital management of Indian non-financial firms. Journal: Int. J. of Corporate Governance Pages: 42-80 Issue: 1 Volume: 10 Year: 2019 Keywords: corporate governance; working capital management; WCM; random effect method; Indian non-financial firms. File-URL: http://www.inderscience.com/link.php?id=98039 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijcgov:v:10:y:2019:i:1:p:42-80 Template-Type: ReDIF-Article 1.0 Author-Name: Neeti Shikha Author-X-Name-First: Neeti Author-X-Name-Last: Shikha Author-Name: Rishika Mishra Author-X-Name-First: Rishika Author-X-Name-Last: Mishra Title: Corporate governance in India - battle of stakes Abstract: Most of the business conglomerates in India are family-run entities who govern the company, even from a back seat. The promoters, who are in most corporate scenarios also the majority shareholders, rule the roost. The minority shareholders and the board are held hostage to the former's powers. This paper explores the role of promoters in corporate governance in India through two recent corporate debacles of Tata Sons and Infosys that have brought to fore many glaring questions and harsh realities of the existing governance systems including the role of promoters and independent directors viz a viz the minority shareholders and separation of powers between the promoters and the board. The paper discusses the efficacy of legal framework in this regard and suggests fresh regulatory measures that could catalyse the process of effective governance. Journal: Int. J. of Corporate Governance Pages: 20-41 Issue: 1 Volume: 10 Year: 2019 Keywords: corporate governance; promoters; shareholders; investor; Kotak committee; remuneration committee; oppression and mismanagement. File-URL: http://www.inderscience.com/link.php?id=98041 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijcgov:v:10:y:2019:i:1:p:20-41 Template-Type: ReDIF-Article 1.0 Author-Name: Jirinwayo Odinkonigbo Author-X-Name-First: Jirinwayo Author-X-Name-Last: Odinkonigbo Author-Name: Ndubuisi Nwafor Author-X-Name-First: Ndubuisi Author-X-Name-Last: Nwafor Author-Name: Uchechukwu Nwoke Author-X-Name-First: Uchechukwu Author-X-Name-Last: Nwoke Title: Disclosures of unethical practices: framework for the promotion of whistle-blowing in Nigeria's corporate governance Abstract: Modern corporations are governed by policies established in conformity with legislation in the countries where they operate. Nevertheless, certain corporate decisions are oftentimes left to officials who engage in different kinds of unethical practices. One method of exposing immoral activities in corporations is through whistle-blowing. This paper, using the critical theory framework, evaluates the concept of whistle-blowing and how it can be used to prevent corporate misconducts in Nigeria. While the concept encourages ethical practices and helps in improving internal efficiency in corporations, its use in Nigeria is virtually non-existent. The paper argues that this is attributable to the absence of a comprehensive legislation on whistle-blowing, coupled with the dearth of strong institutions to protect whistleblowers. It suggests that Nigeria needs a comprehensive legal and institutional framework for the regulation of whistle-blowing, if it must enjoy the benefits derivable from it. Journal: Int. J. of Corporate Governance Pages: 1-19 Issue: 1 Volume: 10 Year: 2019 Keywords: corporate governance; corporations; legal framework; Nigeria; unethical practices; whistle-blowing. File-URL: http://www.inderscience.com/link.php?id=98043 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijcgov:v:10:y:2019:i:1:p:1-19 Template-Type: ReDIF-Article 1.0 Author-Name: Anam Tasawar Author-X-Name-First: Anam Author-X-Name-Last: Tasawar Author-Name: Mian Sajid Nazir Author-X-Name-First: Mian Sajid Author-X-Name-Last: Nazir Title: The nexus between effective corporate monitoring and CEO compensation Abstract: Managerial compensation to top executives, particularly to CEO, has remained a topic of continuing interest in corporate finance literature. Corporations are required to pay a handsome amount to attract and motivate competent business executives to get their jobs done in a befitting manner. Accordingly, executives try to grab higher level of compensation for themselves which might be at the cost of harming firm value and shareholders' interests. In this context, various governing mechanism have been introduced to effectively monitor this opportunistic behaviour of executives. In this context, the current study empirically evaluates the impact of different corporate governance monitoring mechanisms such as institutional shareholders ownership and activism, independence of boards and audit committees, and presence of blockholders in company on level of compensation paid to CEO. The results revealed that more independent board and audit committee members meeting more frequently are helpful in mitigating the higher level of CEO compensation. Moreover, higher financial institutional ownership found positively related to CEO compensation which is in accordance with strategic alliance hypothesis between managers and sponsoring financial institutions. Journal: Int. J. of Corporate Governance Pages: 81-94 Issue: 1 Volume: 10 Year: 2019 Keywords: CEO compensation; corporate monitoring; institutional shareholders' activism; board independence; audit structure. File-URL: http://www.inderscience.com/link.php?id=98044 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijcgov:v:10:y:2019:i:1:p:81-94 Template-Type: ReDIF-Article 1.0 Author-Name: Greg Clydesdale Author-X-Name-First: Greg Author-X-Name-Last: Clydesdale Author-Name: Baiding Hu Author-X-Name-First: Baiding Author-X-Name-Last: Hu Title: Influence of female board members on financial performance of listed companies in New Zealand Abstract: Many governments are under pressure to introduce quotas for women on corporate boards. This paper explores the rationale for quotas. A panel dataset is employed comprising 47 of the 50 companies listed on the New Zealand Stock Exchange (NZSX50) to test the effect of female directors on firm financial performance. First, a Poisson regression model is run to examine selection bias where women select to join firms that perform well financially. Second, a fixed effects model is estimated to explore whether firm financial performances are enhanced by the number of female board directors and their length of service. No evidence is found for self-selection bias. Nor is there evidence to suggest female directors improve financial performance. Equity arguments for quotas are also considered. Very little theoretical or empirical work exists on the equity debate, yet, it has implications for determining quotas and their size. More research is recommended on what constitutes equity. Journal: Int. J. of Corporate Governance Pages: 95-112 Issue: 2 Volume: 10 Year: 2019 Keywords: board of directors; equity; corporate governance; New Zealand; women; quotas. File-URL: http://www.inderscience.com/link.php?id=101508 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijcgov:v:10:y:2019:i:2:p:95-112 Template-Type: ReDIF-Article 1.0 Author-Name: Lakshi Devi Boolaky Doorgakunt Author-X-Name-First: Lakshi Devi Boolaky Author-X-Name-Last: Doorgakunt Title: Fair value hierarchy in financial instruments disclosure - do audit committee and internal audit matter? Abstract: This paper investigates the influence of audit committee (AC) and internal audit (IA) on fair value hierarchy (FVH) in financial instruments disclosure under the amendments made in March 2009 to IFRS 7 in Mauritius. Specific data on FVH was collected from the annual reports of the top 30 listed companies for the period 2010-2013. A disclosure index was then constructed, and the impact of AC and IA is investigated. Banks and insurance companies still need to improve the disclosure of FVH (particularly level 3 hierarchies) by 20%-25%. The existence of AC and the competence of its member(s) are statistically significant whereas its independence is moderately significant. The presence of IA function is positive but moderately significant whereas independence and competence are positively related but insignificant. This paper informs regulator(s), practicing accountants/auditors and professional associations on the effective influence of AC and IA on disclosure practices of FVH in financial instruments. Journal: Int. J. of Corporate Governance Pages: 113-133 Issue: 2 Volume: 10 Year: 2019 Keywords: amended IFRS 7; disclosure; fair value hierarchy; Mauritius; audit committee; internal audit. File-URL: http://www.inderscience.com/link.php?id=101511 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijcgov:v:10:y:2019:i:2:p:113-133 Template-Type: ReDIF-Article 1.0 Author-Name: Naliniprava Tripathy Author-X-Name-First: Naliniprava Author-X-Name-Last: Tripathy Title: Does dividend payout policy matter for firm performance in India? Abstract: The present study determined the dividend behaviour and firm performance before and after financial crisis period by using Lintner's dividend policy model from the year 2000 to 2016. The findings of the study showed that after the crisis, firms are behaving conservatively. The study also indicated that investors are expecting consistent dividends from the firms during post crises period in comparison to the pre-crisis period. The study postulated that dividend behaviour of the Indian companies is sensitive to the changes in earnings. The study elucidated that dividend policy is relevant for firm performance and upsurge shareholder value. Journal: Int. J. of Corporate Governance Pages: 134-148 Issue: 2 Volume: 10 Year: 2019 Keywords: dividend; earnings; payout policy; India. File-URL: http://www.inderscience.com/link.php?id=101514 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijcgov:v:10:y:2019:i:2:p:134-148 Template-Type: ReDIF-Article 1.0 Author-Name: Mussie Tessema Author-X-Name-First: Mussie Author-X-Name-Last: Tessema Author-Name: Parag Dhumal Author-X-Name-First: Parag Author-X-Name-Last: Dhumal Author-Name: Daniel Sauers Author-X-Name-First: Daniel Author-X-Name-Last: Sauers Author-Name: Sebhatleab Tewolde Author-X-Name-First: Sebhatleab Author-X-Name-Last: Tewolde Author-Name: Paulos Teckle Author-X-Name-First: Paulos Author-X-Name-Last: Teckle Title: Analysis of corporate value statements: an empirical study Abstract: Organisations, whether they are private, public or NGOs have a set of values, whether or not they are written down. This study identifies, classifies, and discusses corporate values statements using companies that are listed on the New York Stock Exchange. The sample companies had 51 value classes, which were then grouped into seven value dimensions: commitment to customers, commitment to stakeholders, commitment to employees, commitment to diversity, commitment to integrity, entrepreneurship, and social responsibility. On the average, they had about six publicised corporate values statements. This study also discusses the theoretical and practical implications of the findings and proposes an agenda for future research directions. Journal: Int. J. of Corporate Governance Pages: 149-164 Issue: 2 Volume: 10 Year: 2019 Keywords: corporate value; vision; mission; statement; classification; dimensions; strategy; culture; companies; New York Stock Exchange. File-URL: http://www.inderscience.com/link.php?id=101522 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijcgov:v:10:y:2019:i:2:p:149-164 Template-Type: ReDIF-Article 1.0 Author-Name: Tarcisio Da Graça Author-X-Name-First: Tarcisio Da Author-X-Name-Last: Graça Title: Capturing the elusive convexity of the relationship between acquirer's announcement returns and the cash portion of M%A payments Abstract: We find empirical evidence that the acquirer's announcement return is a U-shaped function of the cash portion of the payment in mergers and acquisitions (M%As). This convexity has long been theoretically predicted in an asymmetric information model, but it remained empirically elusive until now. Our sample consists of US M%As from 1990 to 2008. We apply a structural M%A event study methodology that accounts for the interaction of two M%A effects: synergy (change in total value) and dominance (distribution of synergies between the parties). This interaction simultaneously determines the parties' announcement returns. In addition, we consider that the cash portion is an endogenous variable, as well. Empirically modelling these interdependencies is the likely source of the extra statistical power that allows us to capture the convexity effect. We estimate the acquirer's announcement return is the lowest when the payment consists of approximately 50% of cash. Journal: Int. J. of Corporate Governance Pages: 165-184 Issue: 2 Volume: 10 Year: 2019 Keywords: event study; mergers and acquisitions; M%As; convexity. File-URL: http://www.inderscience.com/link.php?id=101523 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijcgov:v:10:y:2019:i:2:p:165-184 Template-Type: ReDIF-Article 1.0 Author-Name: Todd Broker Author-X-Name-First: Todd Author-X-Name-Last: Broker Author-Name: David Durr Author-X-Name-First: David Author-X-Name-Last: Durr Author-Name: Lawrence Murphy Smith Author-X-Name-First: Lawrence Murphy Author-X-Name-Last: Smith Title: Analysis of the global energy industry, climate change and financial matters: the need for effective corporate governance Abstract: Energy companies provide critical economic resources for advanced societies. Yet, critics complain about climate change and excess profits. Regarding climate change, a plethora of research offers ample evidence, from scientific and policy experts, that climate change is not a significant problem, whether human-caused or otherwise. Richard Lindzen, the Alfred P. Sloan Professor of Meteorology at MIT from 1983 to 2013, called 'global warming' proponents discredited alarmists. Financial analysis shows energy companies are less profitable than those in other industries. Findings of this study are meaningful to academic researchers and corporate leaders, particularly if concerned with corporate governance of energy companies. Energy company managers would do well to inform the public, government leaders, and policy makers about the unfair charges of environmental harm and excess profitability and assert the positive contributions of energy companies to the world economy. Journal: Int. J. of Corporate Governance Pages: 185-208 Issue: 3/4 Volume: 10 Year: 2019 Keywords: energy industry; economic performance; environment; oil and gas firms; climate change. File-URL: http://www.inderscience.com/link.php?id=103223 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijcgov:v:10:y:2019:i:3/4:p:185-208 Template-Type: ReDIF-Article 1.0 Author-Name: Adel Almasarwah Author-X-Name-First: Adel Author-X-Name-Last: Almasarwah Title: Discretionary accruals and ownership structure: empirical study from Jordan Abstract: The present research explores the relationship between ownership concentration and discretionary accruals, specific regard being paid to industrial organisations located within the country of Jordan. Ownership structure is recognised as being one of the key elements in the evaluation and overseeing of the overall value and financial reporting (Brown et al., 2014) and, in the same vein, according to Lee (2007), ownership structure is determined in an effort to enhance operations and financial indicators' effectiveness and efficiency across the accounting system. This work establishes that the Margin model - as presented by Peasnell et al. (2000) - can be considered as more valuable when it comes to describing earnings management within the Jordanian context - specifically when contrasted with more widely adopted accruals models. Journal: Int. J. of Corporate Governance Pages: 209-247 Issue: 3/4 Volume: 10 Year: 2019 Keywords: discretionary accrual; Jordanian industrial firms; Margin model; ownership structure; quadratic discriminant analysis; QDA; Jordan. File-URL: http://www.inderscience.com/link.php?id=103225 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijcgov:v:10:y:2019:i:3/4:p:209-247 Template-Type: ReDIF-Article 1.0 Author-Name: J. Christian Plesner Rossing Author-X-Name-First: J. Christian Plesner Author-X-Name-Last: Rossing Author-Name: Thomas Riise Johansen Author-X-Name-First: Thomas Riise Author-X-Name-Last: Johansen Author-Name: Thomas C. Pearson Author-X-Name-First: Thomas C. Author-X-Name-Last: Pearson Title: Tax governance: the balance between tax regulatory requirements and societal expectations Abstract: In October 2012, Starbucks UK branch became the subject of massive public criticism over alleged tax avoidance. Despite Starbucks arguing that its transfer pricing practices were in full compliance with regulation, public pressure led Starbucks to overpay its UK taxes on international transfer pricing beyond the regulatory requirements. This behaviour contradicts the current literature in which international transfer pricing is portrayed as a tool for aggressive tax management or an exercise of regulatory compliance. It is further argued that boards and top management of multinational enterprises (MNEs) can no longer approach tax governance as a purely technical, regulation-driven discipline to be addressed only by accounting staff and tax consultants. Instead, its pivotal role in the social contract between an MNE and its stakeholders needs to be recognised. Journal: Int. J. of Corporate Governance Pages: 248-274 Issue: 3/4 Volume: 10 Year: 2019 Keywords: tax governance; international transfer pricing; tax avoidance; multinational enterprises; MNEs; Starbucks; business ethics; corporate social responsibility; CSR; legitimacy processes. File-URL: http://www.inderscience.com/link.php?id=103227 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijcgov:v:10:y:2019:i:3/4:p:248-274 Template-Type: ReDIF-Article 1.0 Author-Name: G. Ezhilarasi Author-X-Name-First: G. Author-X-Name-Last: Ezhilarasi Title: Does corporate governance index impact on environmental disclosure? Evidence from India Abstract: This paper empirically investigates the impact of corporate governance index on environmental disclosure of most polluting companies in India. The corporate governance index is measured by a checklist of items based on corporate governance code given by securities and exchange board of India and the <i>OECD principles</i> on corporate governance. Environmental disclosure is measured based on the global reporting initiative guidelines and environmental regulations prevailing in India. Disclosure scores are drawn individually by using content analysis of annual reports for 130 polluting companies in India for a period of seven years, i.e., from 2009-2010 to 2015-2016. Employing panel data regression model, the study finds a positive association between corporate governance index and environmental disclosure. The findings of the study also describe current disclosure which is significantly influenced by companies' previous year's corporate governance. Further, the study explains four sub-indices of corporate governance are also positively associated with environmental disclosure of a company. Journal: Int. J. of Corporate Governance Pages: 275-310 Issue: 3/4 Volume: 10 Year: 2019 Keywords: environmental disclosure; corporate governance index; CGI; securities and exchange board of India; most polluting industries; annual reports; content analysis; global reporting initiative; India. File-URL: http://www.inderscience.com/link.php?id=103228 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijcgov:v:10:y:2019:i:3/4:p:275-310 Template-Type: ReDIF-Article 1.0 Author-Name: Imad Jabbouri Author-X-Name-First: Imad Author-X-Name-Last: Jabbouri Author-Name: Maryem Naili Author-X-Name-First: Maryem Author-X-Name-Last: Naili Author-Name: Chaimae Nouina Author-X-Name-First: Chaimae Author-X-Name-Last: Nouina Title: Ownership identity and cost of debt in an emerging market: pre- and post-crisis analysis Abstract: This research investigates the relationship between ownership identity and cost of debt in the emerging market of Morocco spanning the period from 2004 to 2016. The study employs a panel data analysis and documents that the presence of institutional ownership is negatively related to cost of debt, whereas the presence of family ownership is positively related to cost of debt. Ownership identity reflects a given quality of governance mechanisms within the firm, which affects creditors' confidence positively or negatively. This study pursues innovation by examining whether the value relevance of ownership identity changes as market conditions change. The results are more pronounced in the post-crisis period compared to the pre-crisis period. We argue that the incentives for insiders to expropriate increase during economic downturns. Mindful of the deterioration of corporate governance during economic slumps, the importance creditors attach to ownership identity, as an indicator of governance quality, increases during the post-crisis period. Journal: Int. J. of Corporate Governance Pages: 311-334 Issue: 3/4 Volume: 10 Year: 2019 Keywords: ownership identity; cost of debt; corporate governance; financial crisis; agency problems; emerging markets. File-URL: http://www.inderscience.com/link.php?id=103234 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijcgov:v:10:y:2019:i:3/4:p:311-334