The Effect of Corporate Governance on Financial Performance: Evidence From a Shareholder-Oriented System

Document Type : Research Paper

Authors

1 Accounting Department, University of Sulaimani, Sulaimani, Kurdistan, Iraq

2 Head of Banking and Finance Department, Near East University, Nicosia, North Cyprus, Turkey

Abstract

Despite the vast literature, the relationship between corporate governance and firm performance is hotly debated in the research field of corporate finance. This study examined the effect of Corporate Governance (GC) on the performance of firms in non-financial sectors listed on the Frankfort Stock Exchange in Germany over the period 2002-2018. To this end, we measured firm performance based on accounting data, using ROA and ROE. The results provided evidence that the characteristics of the audit committee and board of directors have significant and negative effects on firm financial performance, whereas the effect of CEO duality is not statistically significant. Large board size could bring about the issue of deferred decision making by the board members in the insider-controlled CG system of Germany. Furthermore, IFRS adoption in 2005 was found to have a positive effect on firm performance. These results can raise considerable interest in managers and shareholders, precisely when they prioritize the financial performance of their companies.

Keywords

Main Subjects


Article Title [Persian]

اثر حکمرانی شرکتی بر عملکرد مالی: شواهدی از یک سیستم سهامدار-محور

Authors [Persian]

  • هاریِم عبدالله 1
  • تورگوت `تورسوی 2
1 گروه حسابداری، دانشگاه سلیمانیه، سلیمانیه، اقلیم کردستان عراق
2 دانشگاه بین المللی تیشک، سلیمانیه/ رئیس گروه بانکداری و مالی، دانشگاه خاور نزدیک، نیکوزیا، قبرس شمالی، ترکیه
Abstract [Persian]

علی رغم وجود پیشینه تحقیقاتی گسترده، رابطه بین حکمرانی شرکتی و عملکرد شرکت بحثی داغ در تحقیقات مربوط به بحث های مالی شرکت ها است. این مطالعه به بررسی اثر حکمرانی شرکتی بر عملکرد شرکت ها در بخشهای غیرمالی ثبت شده در بورس فرانکفورت آلمان بین سالهای 2002 تا 2018 می پردازد. به این منظور، ما عملکرد شرکتها را بر اساس داده های حسابداری با استفاده از شاخص های بازدهی سرمایه و بازدهی حقوق صاحبان سهام اندازه گیری کردیم. نتایج نشان دادند که خصوصیات کمیته حسابرسی و هیئت مدیره اثرات معنادار منفی بر عملکرد مالی شرکت دارند، در حالی که اثر دوگانگی نقش مدیر عامل از نظر آماری معنی دار نبود. در سیستم حکمرانی شرکتی با کنترل درونی که در شرکت های آلمانی رایج است، هیئت مدیره پرتعداد می تواند به تصمیم گیری های با تاخیر توسط هیئت مدیره منجر شود. به علاوه، اتخاذ استانداردهای بین المللی گزارش دهی مالی درآلمان در سال 2005 واجد اثر مثبت بر عملکرد شرکت ها یافت شد. این نتایج می تواند مورد علاقه مدیران و سهامداران باشد، به خصوص وقتی عملکرد مالی شرکت ها برایشان اولویت دارد.

Keywords [Persian]

  • حکمرانی شرکتی
  • کمیته بازرسی
  • هیئت مدیره
  • عملکرد مالی
  • استانداردهای بین المللی گزارش دهی مالی
  • سیستم سهامدار-محور
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