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Purpose – This research is designed to analyze the effectiveness of the audit committee, nomination and remuneration committee, and ownership structure on company performance and how COVID-19 moderates the influence of these governance mechanisms on company performance. Design/methodology/approach – 437 annual reports of Indonesian manufacturing companies from 2018 to 2021 were used as research samples using multiple regression analysis and moderated regression analysis. Findings – Good corporate governance plays a role in improving company performance. The presence of COVID-19 affects corporate governance, thereby reducing performance, but good corporate governance can limit this impact. Practical implications – This research helps companies understand the effectiveness of the supervisory function in improving company performance. This research provides input for companies, regulators, and policymakers to pay attention to good corporate governance, especially when facing a crisis. Originality/value – To my knowledge, research that examines corporate governance mechanisms and company performance related to COVID-19 and investigates whether COVID-19 moderates the influence of corporate governance mechanisms on company performance has never been conducted.

This study analyzes how corporate governance affects financial performance and explores the role of corporate social responsibility as a mediator for 495 firms located in emerging economies in BRICS countries, including Brazil, Russia, India, China, and South Africa from 2011 to 2021. This study evaluates the impact of various board characteristics such as board size, board independence, and gender diversity, as well as ownership structure elements such as family, foreign, and institutional shareholding, on firm performance in BRICS countries. This study uses a generalized method of moments (GMM) methodology to examine the relationship between corporate governance, corporate social responsibility (CSR), and firm performance. The results reveal that board attributes including size, independence, and gender diversity positively influence firm performance. All three components of ownership structure, family, foreign, and institutional shareholdings, positively affect firm performance. CSR partially mediates the positive relationship between corporate governance and firm performance. This study contributes to the literature by adding CSR as a mediating variable in the relationship between corporate governance and firm performance in BRICS countries. These findings suggest that managers must understand that effective corporate governance mechanisms are essential for better performance and should align their interests with firms' objectives. The mediation effect of CSR implies that policymakers should consider CSR as an additive tool to enhance firm performance rather than as an additional expenditure. [ABSTRACT FROM AUTHOR]

This study examines the influence of board structure and ownership structure on a firm’s financial performance in the pharmaceutical and chemical industry of Bangladesh. The data of this study is based on all listed companies in the pharmaceuticals and chemical industry on Dhaka Stock Exchange. Data was collected from the annual reports of the concerned industry from 2015 to 2020. To examine the data, the study has applied descriptive analysis, correlation analysis, VIF test, and the twostage least squares (2SLS) estimator using Eviews software. Based on existing empirical studies, seven major attributes (board size, board independence, board gender, managerial ownership, institutional ownership, audit committee size, and frequency of audit committee meetings) have been selected to identify their influence on a firm’s performance. Findings from the study show that there is an insignificant negative relationship among board size, board gender, frequency of meetings, and the firm’s financial performance but a significant relationship with board independence, institutional ownership, and frequency of meetings. The study has proposed that board size can be smaller but should be representative. This study will contribute to the literature on CG and profitability in an emerging economy like Bangladesh.

AbstractThis study examines the relationship between institutional investors, corporate governance, and firm performance in Vietnam. The findings on Vietnamese listed companies indicate that while institutional investors are less likely to hold shares of companies with larger board sizes, Chief Executive Officer (CEO) duality, and ultimate control by the state (except for state-owned institutions’ perspective), the effect of their ownership on firm performance depends on whether they are pressure-sensitive (grey) or pressure-insensitive (independent) institutions. In Vietnam, independent institutional investors monitor the company and their investment more effectively than grey institutional investors. They can significantly influence management decisions and improve shareholder value. In contrast, grey institutional ownership is either negatively or insignificantly related to firm performance due to conflicts of interest, as they have a potentially related business relationship with the invested companies.

In the emerging market economies the influencing power of different strands of ownership structure and ownership concentration on the risk-adjusted returns on assets and equity, dividend yield, earnings, and cost-to income ratio of listed deposit money banks has not been thoroughly investigated. The diminutive research and equivocal findings of previous studies on this subject create grounds for further investigation. Therefore, the aim of this study is to investigate the extent to which these three constructs relate in listed deposit money banks an emerging market economy, Nigeria. Panel data multiple regressions were applied to data extracted from the annual reports from 2009 to 2020 to test the six hypotheses. The results indicate that the disaggregated ownership structure and concentrated ownership relate positively and significantly to the bank performance indices, thereby supporting convergence of owners and managers interests which reduces the agency problems and increases the financial performance of firms. The novelty of this study is the introduction of new indices for measuring performance, ownership structure and concentration which are total departure from the usual method in both emerging and developed market economies. Further research can be extended in other economies using the same computational methods. Plain language summary: Ownership Structure and Bank Performance in Emerging Market Economy In the emerging market economies the influencing power of different strands of ownership structure and ownership concentration on the risk-adjusted returns on assets and equity, dividend yield, earnings, and cost-to income ratio of listed deposit money banks has not been thoroughly investigated. The diminutive research and equivocal findings of previous studies on this subject create grounds for further investigation. Therefore, the aim of this study is to investigate the extent to which these three constructs relate in listed deposit money banks an emerging market economy, Nigeria. Panel data multiple regressions were applied to data extracted from the annual reports from 2009 to 2020 to test the six hypotheses. The results indicate that the disaggregated ownership structure and concentrated ownership relate positively and significantly to the bank performance indices, thereby supporting convergence of owners and managers interests which reduces the agency problems and increases the financial performance of firms. The novelty of this study is the introduction of new indices for measuring performance, ownership structure and concentration which are total departure from the usual method in both emerging and developed market economies. Further research can be extended in other economies using the same computational methods. [ABSTRACT FROM AUTHOR]

Previous studies have overlooked hidden ownership in their analysis, which could result in biased findings. This research utilizes unique data sources to uncover hidden ownership patterns and employs ordinary least square regression to investigate the relationship between hidden ownership and firm performance. The findings indicate that hidden ownership affects a firm's performance, but not in the same manner as previously thought. Firms with hidden ownership actually perform better than those without. These results contradict the belief that hidden ownership leads to wealth expropriation from minority shareholders and negatively impacts a firm's performance. The study also remains robust after accounting for potential endogeneity using an instrumental variable approach. The findings provide policy implications and contribute to the ownership and firm performance literatures. [ABSTRACT FROM AUTHOR]

There is a wide debate on the optimal shareholding proportion of controlling shareholders. Under the background of China's mixed‐ownership reform, this paper focuses on a specific firm setting of mixed‐ownership enterprises in fully competitive industries, and tries to find the heterogeneity in the association between controllers' shareholding and firm performance. Specifically, with a sample of China's A‐share listed companies from 2007 to 2018, we find significant differences in this relationship due to different types of controlling shareholders. The effect of controller shareholding on firm performance is not significant in foreign‐controlled enterprises, while that of private enterprises presents a monotone increasing linear relation with statistical significance. No optimal controlling shareholding interval is found in either foreign‐controlled or private‐controlled enterprise. In state‐controlled enterprises, we find an overall inverted U‐shaped with local stage linear relationship between state‐controlling enterprises' controller shareholding and firm performance. The optimal interval of state‐controlling shareholding is 42%–68%. [ABSTRACT FROM AUTHOR]

Unlike large businesses, small and medium-sized enterprises (SMEs), being a key growth driver in accomplishing immeasurable socio-economic objectives, possess different governance structures and face unique governance issues. Through the agency perspective, this research endeavours to pore over how the quality of their board affects the performance of SMEs in India. A regression model was run applying heteroscedasticity robust standard errors (RSE) on a sample of 68 BSE-listed SMEs for the period from 2013–2014 to 2017–2018. The results of the regression of the performance of the SMEs against their board attributes showed the prominent contribution of high promoters' shareholding, signifying that SMEs with a highly concentrated ownership structure demonstrate better performance. Firm leverage and firm performance were shown to have a positive and significant relationship with each other, suggesting that levered firms display substantially better performance. On the other hand, it was found that increasing the number of independent directors and female directors does not necessarily result in improved firm performance. This finding suggests that tokenism, that is, appointing independent directors and female directors merely to comply with norms but not in true spirit, can reduce a firm's performance. This research effort contributes to the literature constructively through explaining the linkage between board quality and the performance of SMEs, particularly in the Indian context, and has implications for the escalation of governance standards through bringing more clarity to and streamline policy and disclosure. [ABSTRACT FROM AUTHOR]

The manufacturing sector listed on the Indonesia Stock Exchange (IDX) has experienced a decline in performance that could be attributed to its ownership structure. Besides, Indonesian manufacturing companies rank highly among foreign debt borrowers, with a total debt of US$ 392.6 billion, as reported by Bank Indonesia's Foreign Debt Statistics (SULNI) emphasizing the importance of analyzing their capital structure to understand their financial health, as it is influenced by their debt and capital holdings. This study aims to thoroughly examine the pivotal roles of ownership structure and capital structure in shaping the future trajectory of companies in Indonesia's manufacturing sector, with a specific focus on how their financial decision-making affects their performance. This study analyzed data from 97 listed companies on the IDX over five years (2017-2021) using a statistical method called panel regression. The findings indicate that the way a company is owned does not significantly influence its performance. However, the study does uncover that capital structure, measured by DAR, negatively impacts ROA without affecting ROE. On the other hand, the capital structure measured by DER negatively impacts ROE without affecting ROA. Firm size plays a significant and positive role in influencing company performance as a control variable.

This study intends to examine the effect of CEO succession with gender change from male to female (i.e., female CEO succession) on corporate social responsibility (CSR) reporting. Based on insights from upper echelons theory, it is proposed that female CEO successors are more likely than male CEO successors to improve the firm's CSR reporting level due to variations in their traits, values, and preferences regarding green issues, especially CSR. The study also explores the influence of the firm's ownership status (i.e., SOEs vs. non-SOEs) and performance (high-performance firms vs. low-performance firms) on the relationship between female CEO succession and CSR reporting. Using data from Chinese publicly traded firms from 2010 to 2020, this study employs the logistic regression technique to examine the proposed relationship between female CEO succession and CSR reporting and presents robust evidence that female CEO succession has a positive effect on firm CSR reporting, and that this effect is more prevalent in non-SOEs and high-performance firms than in SOEs and low-performance firms, respectively. The study adds fresh insights to the extant literature on CSR and corporate leadership and offers useful policy recommendations for corporate decision-makers and policymakers while considering women's involvement in succession plans for top leadership positions like CEO to tackle the strategic management of CSR disclosure in China. [ABSTRACT FROM AUTHOR]

This study examines the relationship between institutional investors, corporate governance, and firm performance in Vietnam. The findings on Vietnamese listed companies indicate that while institutional investors are less likely to hold shares of companies with larger board sizes, Chief Executive Officer (CEO) duality, and ultimate control by the state (except for state-owned institutions' perspective), the effect of their ownership on firm performance depends on whether they are pressure-sensitive (grey) or pressure-insensitive (independent) institutions. In Vietnam, independent institutional investors monitor the company and their investment more effectively than grey institutional investors. They can significantly influence management decisions and improve shareholder value. In contrast, grey institutional ownership is either negatively or insignificantly related to firm performance due to conflicts of interest, as they have a potentially related business relationship with the invested companies. [ABSTRACT FROM AUTHOR]

The study investigated the effect of ownership structure on performance of listed banks in Nigeria using agency theory as an analytical framework. Specifically, the study ascertains the effect of managerial ownership on market value. Structured questionnaire was used to elicit vital information from the respondents. Reliability of data was tested using Cronbach's Alpha, while validity of the instrument was tested using content and construct. Simple regression was used to analyze the data. The result revealed that managerial ownership has significant effect on market value of listed banks in Nigeria. The study concluded that ownership structure plays a key role in firm performance and provides policy makers within sights for enhancing corporate governance system. It recommended that Owners of banking institutions should practice a managerial system of ownership, linking compensation to performance. [ABSTRACT FROM AUTHOR]

This study examines the influence of board structure and ownership structure on a firm's financial performance in the pharmaceutical and chemical industry of Bangladesh. The data of this study is based on all listed companies in the pharmaceuticals and chemical industry on Dhaka Stock Exchange. Data was collected from the annual reports of the concerned industry from 2015 to 2020. To examine the data, the study has applied descriptive analysis, correlation analysis, VIF test, and the twostage least squares (2SLS) estimator using Eviews software. Based on existing empirical studies, seven major attributes (board size, board independence, board gender, managerial ownership, institutional ownership, audit committee size, and frequency of audit committee meetings) have been selected to identify their influence on a firm's performance. Findings from the study show that there is an insignificant negative relationship among board size, board gender, frequency of meetings, and the firm's finan cial performance but a significant relationship with board independence, institutional ownership, and frequency of meetings. The study has proposed that board size can be smaller but should be representative. This study will contribute to the literature on CG and profitability in an emerging economy like Bangladesh. [ABSTRACT FROM AUTHOR]

Even though several studies have been done on intellectual capital, ownership structure, and firm performance, their status has remained uncertain in developing countries like Malaysia. Prior studies have generally focused on a single industry and overlooked the input of all Malaysian non-financial firms. This study investigates the impact of intellectual capital, its components, and ownership structure on firm performance. This study employs a balanced panel data examination for the data of 409 non-financial firms from 11 sectors listed on Bursa, Malaysia for five years (2016–2020). The modified value-added intellectual coefficient model was applied to examine the effect of IC efficiency on firm performance. The empirical findings revealed that IC efficiency, human capital efficiency, structural capital efficiency, capital employed efficiency, and relational capital efficiency are positively and significantly related to firm performance. However, physical and structural capital is the most substantial element of intellectual capital efficiency in augmenting profitability. In addition, government and foreign ownership positively affect firm performance. The research will help managers, policymakers, and investors understand how IC investments increase performance and make prudent investment choices in government and foreign ownership firms. [ABSTRACT FROM AUTHOR]

This study investigated the effect of ownership structure on environmental, social, and governance (ESG) disclosure, firm value, firm performance, and audit committees as moderating variables in the Indonesian context. The ownership structures in this study are foreign, public, state, and family ownership. This research is quantitative and uses secondary data. The sample consisted of 140 companies on the Indonesia Stock Exchange for the 2018–2020 period. This study used legitimacy, stakeholder, and agency theory. The analytical method used was partial least squares structural equation modeling. The results show that foreign and public ownership positively and significantly affect environmental, social, and governance disclosure. However, state and family ownership did not affect environmental, social, and governance disclosure. In addition, environmental, social, and governance disclosure positively impacts firm value. However, environmental, social, and governance disclosure do not affect a company's performance. Audit committees moderate the influence of environmental, social, and governance disclosure and firm value. However, the audit committees do not moderate the effect of environmental, social, and governance disclosure and firm performance. The government should make stronger environmental, social, and government regulations that must be implemented by companies listed on the Indonesia Stock Exchange even though they are now voluntary. [ABSTRACT FROM AUTHOR]

Previous studies have overlooked hidden ownership in their analysis, which could result in biased findings. This research utilizes unique data sources to uncover hidden ownership patterns and employs ordinary least square regression to investigate the relationship between hidden ownership and firm performance. The findings indicate that hidden ownership affects a firm’s performance, but not in the same manner as previously thought. Firms with hidden ownership actually perform better than those without. These results contradict the belief that hidden ownership leads to wealth expropriation from minority shareholders and negatively impacts a firm’s performance. The study also remains robust after accounting for potential endogeneity using an instrumental variable approach. The findings provide policy implications and contribute to the ownership and firm performance literatures.

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In this paper, we investigate the impact of promoters and institutional investors' equity ownership on the firm performance in the Indian context. Using a sample of 1583 firms during 2010–2019, our results suggest a positive relation between promoter ownership and firm performance, supporting the alignment effect, where the interests of promoters and managers align in the same direction. On the one hand, our results support the global advantage hypothesis in that the foreign institutional investors (FIIs) positively impact the firm performance, implying that the FIIs are vigilant shareholders, and actively monitor the firm performance. On the other hand, we reject the hometown advantage hypothesis since the domestic institutional investors (DIIs) like banks and other financial institutions are found to have negative relation with firm performance. Overall, we conclude that shareholding pattern does affect the firm performance. Our results are insensitive to various robustness tests. [ABSTRACT FROM AUTHOR]

Scholars have long debated the effect CEOs have on firm performance, including a focus on how their effect shifts across industries, national settings, and time. Unexplored, however, is the possibility that the CEO effect might differ in publicly traded versus privately held firms. Drawing on a unique longitudinal sample of both publicly traded and large, privately held Swedish firms from 1997 to 2013, we replicate and build upon prior CEO effects studies and find that private-firm CEOs have a greater effect on firm performance, for good or for ill, than do their public firm counterparts. Our results are strengthened after controlling for industry, firm profitability, and size in a matched-pair sample. We discuss the implications and potential future research stemming from these findings. [ABSTRACT FROM AUTHOR]

Privatization has played an important role in national economic reform in Vietnam. However, unlike other transitional countries in Central and Eastern Europe, Vietnam has chosen a partial and gradual privatization where the government still holds significant ownership in most privatized firms. Whether partial privatization can enhance privatized firms' performance or full privatization should have been implemented is a critical question that needs to be answered. This paper utilizes semiparametric regressions to study the relationship between residual state ownership and firm performance. The results indicate an inverted U relationship between state ownership and firm performance. We show that the performance of privatized firms improves with an increase in the level of state ownership until around 40%, after which the effect of state ownership on firm performance tends to decline. This demonstrates that in a transitional context, relinquishing governmental control via privatization can significantly benefit privatized firm performance. However, further reduction of state ownership may decrease the performance of privatized firms. Overall, the study contributes significantly to the growing body of evidence on the nonlinear effects of state ownership. This suggests that in the transitional context of Vietnam, due to weak corporate governance and limited protection of minority shareholders, there could be a temporary optimal position where state and private investors hold balanced ownership to simultaneously supervise operations and promote the performance of privatized firms. [ABSTRACT FROM AUTHOR]

This study examines the impact of corporate governance and risk management processes on the firm performance. The data has been taken from 23 leading commercial banks in Pakistan from 2010 to 2017. The performance, ownership, governance, and credit risk variables are taken to measure the firm performance. The multiple regression results show that board size, Audit committee independence, director ownership, institutional ownership, foreign ownership, associate ownership, and NPL are positively associated with Return on Equity (ROE), while block holding, capital adequacy ratio, and board independence are negatively correlated with the ROE. Further, the board size, audit committee independence, director ownership, associate ownership, board independence, and NPL have a positive association with the Earning per Share (EPS), and the institutional ownership, foreign ownership, block holding, and capital adequacy ratio have a negative association. Lastly, the audit committee independence, foreign ownership, associate ownership, and capital adequacy ratio are related positively to Return on Assets (ROA), while the rest of the variables like board size, director ownership, institutional ownership, block holding, board independence, and NPL are negatively correlated. [ABSTRACT FROM AUTHOR]

In the context of Chinese enterprises' privatization reforms, the relationships between ownership structure and optimal capital structure and between ownership structure and firm performance are worth attention. Using data on listed companies in China, this article uses the panel smooth transfer regression (PSTR) model and multiple regression models to test the nonlinear relationship between capital structure and firm performance. The optimal capital structure is calculated using the partial correlation function of the PSTR model, and the ownership structure–optimal capital structure relationship is analysed. This research found that (a) the effect of the debt‐to‐asset ratio on firm performance shows a nonlinear relationship with sudden changes in characteristics, and a debt‐to‐asset ratio interval exists that can significantly improve firm performance; (b) under the premise of the effect of ownership checks and balances, an increase in ownership concentration can improve the optimal capital structure; thus, enterprises can achieve effective operations with higher debt; (c) the promotion effect of ownership concentration on firm performance varies depending on a company's debt‐to‐asset ratio; and (d) different industries have different optimal capital structures. The raw materials industry has a high optimal capital structure. A series of robustness tests verify the robustness of these conclusions. This research enriches the theoretical interpretation of the optimal capital structure and provides new insights into the relationship between ownership structure and firm performance. The conclusions drawn by this article are helpful to enterprises making corresponding financial decisions and the government in formulating corresponding capital market systems. [ABSTRACT FROM AUTHOR]

This article tests the relationship between ownership and firm performance in emerging countries; Russia, India, and China. Annual financial and accounting data of 213 state-owned and 3,624 non-state-owned enterprises- for the period 2011–2015 are compiled from Orbis. The empirical results show that on average, the firm performance is negatively associated with state-owned enterprises in Russia, India and China. This is also confirmed with country-specific analysis except for Russia. These results suggest that among emerging countries, India and China's state-owned enterprises are less profitable in comparison to non-state-owned enterprises. Lower profitability of state-owned enterprises is justified by the argument that the main goals of enterprises under state control are not in line. [ABSTRACT FROM AUTHOR]

The article studies the relationship between ownership structure and performance of the Slovenian join stock companies, with special focus on the comparison of performance of state- and privately-owned joint stock companies and ownership concentration. The empirical analysis employs firm-level annual financial reports data and data on ownership structure of all Slovenian join stock companies for the 2005–2017 period. Using panel regression analyses we find that Slovenian state-owned joint stock companies are less profitable than their privately-owned counterparts. In contrast, we do not observe statistically significant relationship between ownership concentration and firm performance. The empirical findings point on the need of further actions in improvement of corporate governance of state-owned firms in Slovenia. [ABSTRACT FROM AUTHOR]

This study investigated the effect of ownership structure on environmental, social, and governance (ESG) disclosure, firm value, firm performance, and audit committees as moderating variables in the Indonesian context. The ownership structures in this study are foreign, public, state, and family ownership. This research is quantitative and uses secondary data. The sample consisted of 140 companies on the Indonesia Stock Exchange for the 2018–2020 period. This study used legitimacy, stakeholder, and agency theory. The analytical method used was partial least squares structural equation modeling. The results show that foreign and public ownership positively and significantly affect environmental, social, and governance disclosure. However, state and family ownership did not affect environmental, social, and governance disclosure. In addition, environmental, social, and governance disclosure positively impacts firm value. However, environmental, social, and governance disclosure do not affect a company’s performance. Audit committees moderate the influence of environmental, social, and governance disclosure and firm value. However, the audit committees do not moderate the effect of environmental, social, and governance disclosure and firm performance. The government should make stronger environmental, social, and government regulations that must be implemented by companies listed on the Indonesia Stock Exchange even though they are now voluntary.

This article provides pioneering empirical evidence on the ownership structure and firm performance relationship for the case of corporate agri-food companies in Russia. While Russia plays a vital role in the global agri-food system, its domestic agri-food production is evidently dominated by a small number of corporate enterprises, which are in turn characterized by high ownership concentration. We employ unique panel data obtained from 203 companies for the years between 2012 and 2017. A random effects model was used to analyze the impacts of ownership concentration and ownership identity on the firms' financial performance, measured by return on assets and return on sales. Our results indicate an inverse U-shaped association between ownership concentration and firm performance, with average level of ownership concentration found to be on the descending range of the inverse U-shaped curve. Moreover, we observe a similar quadratic relationship between ownership concentration by government and directors and firm performance. On average, ownership by directors was found to be on the ascending range and below the peak point, suggesting a potential for further performance improvement, while the impact of agroholding ownership was found to be linear and positive. [ABSTRACT FROM AUTHOR]

In recent decades, innovative companies became one of the major drivers of economy worldwide. According to surveys, nearly 70% of the world’s most innovative companies in 2019 are U.S. firms. However, academic studies mostly focused on the influence of the top management team and the board of director’s on the firm performance, on the relationship between innovations and CEO`s preferences. However, we suppose CEO can exert a significant influence on performance of innovative companies. We strive to show which CEO characteristics could lead to higher firm value. Does highly educated CEO contribute more to innovations in hi-tech sphere? Does CEO power matter? Are founders better CEOs than newcomers or professionals for technological companies with their longer horizons and higher risks? This research uses Generalized Least Square model on a sample of 12565 firm-year observations during 2004-2015 period. For this research we used data for three innovative industries: Pharmaceuticals, Biotechnology & Life Sciences, Software & Services and Technology Hardware & Equipment industries. We have hand-collected data from the CVs in CIQ database. Overall, the empirical results reveal that educational background, tenure, duality play crucial roles in explaining firm value. This study contributes to the existing literature in two aspects. First, our findings indicate that CEO characteristics play crucial roles in explaining technology firm value and performance. We demonstrated that founding CEO contributes to technology firm performance as well as the CEO with better education. Second, CEOs should be smart and powerful in order to sustain firm performance. We found that CEOs characteristics could mitigate the conflicts between different types of investors and their influence on firm performance. More specifically, CEO-founder was found to add greatly to the firm performance of Software and Pharmaceutical companies. Furthermore, the influence of CEO seems to mitigate the conflict of interest with independent active institutional investors in Hardware industry. We provided examples to prove the validity of our tests.

The purpose of this study is to investigate: firstly, the two-way causality between firms performance and the size of BOC; secondly, the nonlinear effect of board size on the firms’ performance; thirdly, the direct and moderating effects of the ownership structure on the influence of firm performance on board size. Using the ROA as a measure of firm performance, we find that there is a simultaneous relationship between firm performance and the size of BOC: the size of the board has an inverted U-shaped effect on firm performance while firms performance has a negative influence on board size. We find that the size of the board of commissioners increases firm performance up to a certain level, but a very large board reduces firm performance. We find marginal evidence that ownership structure has a moderating effect on the impact of firm performance on board size. We document that the negative effect of performance on board size dissipates as ownership right increases. The negative effect of performance on board size marginally strengthens. Thus, our study contributes to the literature by finding that the negative influence of firm performance and board primarily occurs on firms that are subject to high incentive expropriation by controlling shareholders.

This study tries to examine the empirical relationship between corporate governance and financial performance of Indian firms by developing a corporate governance index (CGI) based on a variety of corporate governance characteristics. Such characteristics include board structure, ownership structure, director participation and busyness, market for external control, and product market competition. We employ a panel dataset for Indian non-financial firms listed on the National Stock Exchange for the period 2010–2018. Using a System GMM dynamic panel approach, we analyse the relationship of CGI with different firm performance measures including market-based performance measures like Tobin's Q (TQ), and accounting-based performance measures like Return on Assets (ROA) and Return on Net Worth (RONW). Based on the empirical results, we find a significant positive relationship of corporate governance index (CGI) with ROA and RONW and significant negative relationship with TQ. Lastly, the CGI used by our study is based on a broad spectrum of dimensions of corporate governance and serves as a direction for business houses and shareholders to work towards governance practices leading to better financial performance of the firms. [ABSTRACT FROM AUTHOR]

There is still an ongoing debate regarding the firm performance implications of pay gaps between top executives and subordinate employees. This study integrates relative deprivation theory and tournament theory to investigate the potential nonlinear effects of pay gaps. We expect that at low levels of pay inequality, increased inequality hurts firm productivity, while at higher levels of pay inequality, increased inequality helps firm productivity. Our study of Chinese firms confirms that pay gaps have an approximately U-shaped relationship with firm performance. This nonlinear relationship is weaker in state-owned enterprises (SOEs) than in non-SOEs, suggesting that state ownership is an important moderator in the association. Overall, this study explains previous mixed findings regarding consequences of pay gaps with meaningful implications for policymakers and entrepreneurs in China and other economies with similar cultural and institutional backgrounds. [ABSTRACT FROM AUTHOR]

Manuscript type: Research paper Research aims: Ownership structure is crucial to corporate governance as it explains sources of the agency conflicts. Despite the studies performed on the roles and impacts of diverse corporate ownership on corporate performance and corporate governance, the role of state-owned holding company (SOH), as a particular type of state ownership, has not been duly explored. This study addresses the gap by examining the relationship between SOH ownership in listed companies, and how they perform. Design/Methodology/Approach: This quantitative study applies empirical models which test the impact of the different ownerships of firms on firm performance by controlling board characteristics. Regression models are used to test the explanatory power of the variables of interest. Data are collected from all the non-financial firms listed on the Ho Chi Minh Stock Exchange (HOSE), and the Hanoi Stock Exchange (HNX), prior to 31 December, 2009. The selected period equals to a balanced panel dataset of 242 firms for a period of 9 years, ranging from 2009 to 2017. Research findings: The results show that firms with SOH ownership, or SOH-linked companies (SLCs), tend to deliver superior returns. They also enjoy higher valuations than government-linked companies (GLCs), and non-GLCs. There is evidence to show that when the SOH holds a dominant ownership, it exercises positive control over firms, thereby resulting in better market performance. Theoretical contribution/Originality: The evidence of this study focusses on Vietnam. It is also consistent with the findings of other countries. This study confirms that the SOH model mitigates the agency problems that exist in companies with state capital. This study also provides empirical evidence which support that SOH is a mechanism that resolves the various problems noted in state-linked companies caused by conflicting objectives, political influences, and poor management and governance. Practitioner/Policy implications: This study offers regulators a reference which can be used when making policies that would suit the environment of Vietnam. In that regard, it offers an indepth look into the SOH model which is further encouraged for replication. The outcome derived from this study can help managers to make adjustments and improvements in company's corporate governance so as to achieve better firm performance. This study also helps investors and other stakeholders to better understand the problems arising from corporate governance in Vietnam. In that regard, the outcome can be used to help them make better decisions such as investments, choosing board directors, or making corporate governance policies. Research limitation/Implications:: This study faces some limitations, among which is that it focusses solely on firm performance. [ABSTRACT FROM AUTHOR]

This study examines the associations of corporate governance with firm risk-taking and performance in a typical frontier equity market characterized by high ownership concentration and weak investor protection. Using an extensive sample of Vietnamese listed firms, we find (1) no relation between ownership concentration and firm profitability, but a non-linear relation between ownership concentration and firm valuation; and (2) that concentrated ownership increases the riskiness of accounting performance; however, there is no evidence of the linkage between concentration and the riskiness of market performance. Ultimately, our findings confirm essential differences in using the two alternatives of performance measurement.