Governance structures, director independence and corporate performance in the UK

TL;DR: Governance mechanisms and corporate performance in Nigeria are complex and multifaceted. The study finds that the agency theory hypothesis does not hold true in the Nigerian context, and that firms with larger boards with sufficient gender and foreign diversities outperform their peers.

Abstract: This study examines the role of various corporate governance variables in earnings management in Hong Kong during the period 2000 to 2002. The corporate governance variables examined are CEO duality (when the chairman and the CEO is the same person), the proportion of independent non-executive directors and audit committees. It also examines whether the proportion of independent non-executive directors moderates the association between CEO duality and earnings management. The findings indicate that there is a strong positive association between CEO duality and earnings management. The results suggest that there is no significant association between the proportion of independent non-executive directors on the board and earnings management. However, earnings management is significantly negatively associated with the interaction of CEO duality and the proportion of independent non-executive directors on the board, suggesting that independent non-executive directors' effectiveness in monitoring weakened the managerial behavior of earnings management in CEO duality firms. This is particularly the case in high-growth firms. The results do not show a significant association between earnings management and the existence of audit committees.

TL;DR: In this paper, the authors investigate the extent of compliance with various components of corporate governance rules of 2010 and their relationship between corporate governance practices and performance of financial and non-financial firms and conventional and Islamic banks in the context of the UAE.

TL;DR: In this article, a quality index for corporate governance, called CGQI, is proposed to verify a possible relationship between the corporate governance of Italian listed companies and their financial performance.

TL;DR: In this article, an empirical test fails to support agency theory and provides some support for stewardship theory, which argues that shareholders interests require protection by separation of incumbency of roles of board chair and CEO.

TL;DR: The authors provide meta-analyses of 54 empirical studies of board composition (159 samples, n = 40,160) and 31 empirical studies on board leadership structure and their relationship to firm financial performance.

TL;DR: In this article, a linkage between firm performance and board composition by examining the committee structure of boards and the directors' roles within these committees was demonstrated, showing that firms significantly increasing inside director representation on these two committees experience significantly higher contemporaneous stock returns and return on investments than firms decreasing the percentage of inside directors on these committees.

TL;DR: This article examined the differential financial implications of these choices for 141 corporations over a 6-year time period and found that firms opting for independent leadership consistently outperformed those relying upon CEO duality.