Challenges in the Era of Globalization - iaabd

Recommendations

Info

Proceedings of the 12th Annual Conference © 2011 IAABD determinants of ownership concentration and the effects of ownership concentration on the firm’s performance, using panel data of firms from different manufacturing sectors of the Pakistan’s economy during 2003-08. The results suggested that firms with high ownership concentration did not adopt better governance practices and disclosed less, even though board composition had positive and significant role, thus confirming the stand by Fama and Jensen (1983) who maintained that dispersed ownership was advantageous because efficiency gains outweigh the agency costs. These imply that ownership concentration was an endogenous response of poor legal protection of the investors which seemed to have significant effect on corporate performance. Adopting a multiple regression approach, Goliath (2009) also found that the size of Board members positively correlated with share value, but there was lack of any significant relationship between inside ownership and share value. What the foregoing review seems to reveal is that shareholder structure (whether highly concentrated ownership or widely dispersed ownership) can influence investment efficiency (profitability) of the firm through endogenous corporate governance. This revelation tends to emphasize the significance of operating an effective corporate governance to mitigate potential agency problems and related costs, which the above two opposing views attempt to deal with to secure investment efficiency. Corporate investment efficiency (profitability) is defined using measures by Hasan and Butt, 2009; Farooque, 2007; Breadley, Myers & Allen, 2008; and Helfert, 2000. For purposes of this study, our focus will be on the shareholders who technically own the business, even though Helfert (2000) discusses other two considerations of performance financial analysis: the viewpoints of management and lenders (creditors). Our emphasis on the shareholders is because they have special interests in the current and long-term returns on their equity investment concerning growing earnings, cash flows and dividends which, in total, would result in the economic value of their venture. The two measures of investment efficiency for our purposes are Return on Equity (ROE) often in percentage terms, and Earnings per Share (EPS) always in monetary values, like the GHc. ROE is the most common ratio for evaluating the return on the owners’ investment and it measures the relationship between the business Net Profit and total shareholders’ investment, calculated as: ROE = Net Profit/Shareholders’ investment (%). The use of this measure is subject to some caution arising from the definition of net profits, which in our case, is the result of operations belonging wholly to the holders of common and preferred equity shares. But Average Equity is used to allow for the reasoning that profitable operations build up equity during the year which implies that the annual profit should relate to the mid-point of the buildup. The measure is thus adapted to become: Return on Average Equity = Net Profit/Average Shareholders’ Investment (%). The second measure is Earnings per Share, that is EPS = Net Profit to common stock/Average number of shares (GHc per share). A great deal of attention is paid to this ratio by both shareholders and management, and it is used widely in the valuation of common stock. But we should note that its use is not problem-free. For example, fluctuations in the number of shares outstanding during the year due to new stock offerings, dividends paid, etc, require retroactive adjustments in past data to ensure comparability. Another caution is to ensure that fluctuations and trends in actual performance are compared to the projections and watched closely for signals of strength and weaknesses, especially because analysts tend to focus attention on past EPS levels. Another measure of corporate profitability, Tobin’s Q, is dealt with in Aluchna et al, 2007 and Farooque et al, 2007. We should, however, note that all these tools have their own strengths and weaknesses. In this paper we define corporate governance as the means by which shareholder value is facilitated by effectively managing corporate affairs so as to ensure the protection of the individual and collective interest of all stakeholders, (Hasan and Butt, 2009; Farooque et al, 2007). The ingredients of good corporate governance practices include the board size and composition, skills of members, CEO/Chair 4
Challenges in the Era of Globalization Edited by Emmanuel Obuah duality role, board compensation, etc, all of which have association with agency problem and agency costs, and can be used to assess the effectiveness of a listed company. Data Organization and Processing: Data for the study is mainly secondary; the major source is the GSE Fact Book (2010) and the Annual Reports of the selected companies, specifically the financial data on their Balance sheets and Income statements for the years 2005 to 2009, the study period when data availability posed no challenge. The results of the researcher’s interviews with GSE officials were used to supplement our secondary data. A random sample of 7 listed companies among a total of 35 currently listed on the GSE was decided on. The list applies to companies that have been very active during the study period. Issues of share ownership structure, corporate governance structure, and those of corporate investment efficiency were considered using the GSE Fact Book and the Annual Reports of selected companies. The method to enable achievement of our objectives consisted of the use of financial performance analysis employing financial ratios and other financial measures over the specified period Collected data was processed into three major groups of Share-Ownership Structure; Corporate Governance Structure; and Corporate Investment Efficiency (profitability). 1. Share-ownership structure: according to whether Concentration Ratio is High, or Low (Low implying widely dispersed ownership structure), using the Herfindahl Index of Ownership Concentration (Sorensen, 2008) 2. Whether Corporate Governance structure is good (that is satisfying the above list of good corporate governance practice) or weak (that is, the opposite being the case). 3. Corporate Investment Efficiency (profitability), using financial ratios of Return on Equity/Investment (ROE); and Earnings per Share (EPS). (Helfert, 2000; Breadley Stewart and Allen, 2008; Farooque et al, 2007; Aluchna, 2007). Tables 1, 2 and 3 provide relevant statistics on the three groupings. Analysis and Discussions: Tables 1 and 2 provide statistics on share-ownership structure and corporate governance structure respectively of the 7 firms. Table 1 indicates that the companies have high owner concentration ratios of above 0.6, constituted by about 4 firms, using Herfindahl Index of owner concentration (Sorensen, 2006). Dispersed ownership appears to be rare among the listed firms. This fact necessitates keeping a large number of Board of Directors to provide an effective governance structure. Majority of Board members must be of Non-Executive status, and must be independent of management and free from any constraints likely to materially interfere with the exercise of their independent judgment. Our interview with GSE officials indicated that they insist that 25% of Board must be Non-executive; no compromise on CEO/Chair duality role; and no decision on size of membership. Table 2 provides some information on the ratio of Non-Executive members to total Board members. The ratios for the companies appear high, except Mechanical Lloyd with very low ratio, probably implying weak corporate governance structure, and also Aryton Drug Manufacturing Firm and Camelot Ltd that need to beef up their governance structure. In the case of Enterprise Insurance Ltd, the ratio is fairly high, but then it appears two Board members come from the same institution, a situation likely to lead to opportunistic tendencies that could even compromise on some critical corporate objectives. Besides, only the Ghana Commercial Bank retains two Independent Non-Executive members, which appears to be an improvement over the others. To this end, other companies need to learn from such best practices. GSE should continue to ensure that their education and publicity campaigns are given greater boost. Nevertheless, we can discern that positive relationship exists among the share-ownership structure, corporate governance structure, and corporate profitability. Table 3 indicates that ROEs and EPS for the 5
Page 1 and 2: Challenges in the Era of Globalizat
Page 3 and 4: Table of Contents Challenges in the
Page 5 and 6: Lennart Bangens, Goteborg, Sweden C
Page 15 and 16: Local Steering Committee Jacob Musi
Page 17 and 18: Track 1: Accounting, Finance, and I
Page 19: Challenges in the Era of Globalizat
Page 25 and 26: Abstract Challenges in the Era of G
Page 43 and 44: Abstract Determinants of Bank Lendi
Page 47 and 48: Empirical Results Challenges in the
Page 55 and 56: Table 3 Determinants of Competitive
Page 71 and 72:
Challenges in the Era of Globalizat
Page 73 and 74:
Page 75 and 76:
Page 77 and 78:
Page 79 and 80:
Research Findings Challenges in the
Page 81 and 82:
Page 83 and 84:
Page 85 and 86:
Page 87 and 88:
Abstract: Study on Africa Governmen
Page 89 and 90:
Page 91 and 92:
Page 93 and 94:
Page 95 and 96:
Page 97 and 98:
Page 99 and 100:
Abstract Challenges of Oil Revenue
Page 101 and 102:
Page 103 and 104:
Page 105 and 106:
Page 107 and 108:
Page 109 and 110:
Abstract Land Based Sources of Poll
Page 111 and 112:
Page 113 and 114:
Page 115 and 116:
Abstract On the Mitigation of Rever
Page 117 and 118:
⎧κ ( ω) − ( 1− p) β ( ω)
Page 119 and 120:
Page 121 and 122:
Page 123 and 124:
Assessment of pollutants in nigeria
Page 125 and 126:
Figure 1: Lagos off shore survey po
Page 127 and 128:
Page 129 and 130:
Page 131 and 132:
Page 133 and 134:
Page 135 and 136:
Page 137 and 138:
Page 139 and 140:
Page 141 and 142:
Page 143 and 144:
Page 145 and 146:
Page 147 and 148:
Page 149 and 150:
Page 151 and 152:
Page 153 and 154:
Academic Pry School 3 3 0 Backgroun
Page 155 and 156:
Page 157 and 158:
Page 159 and 160:
Page 161 and 162:
Page 163 and 164:
Track 5: Management Education Chall
Page 165 and 166:
Abstract Challenges in the Era of G
Page 167 and 168:
Page 169 and 170:
Page 171 and 172:
Page 173 and 174:
Page 175 and 176:
Page 177 and 178:
Table: Model Fitness Regression Sta
Page 179 and 180:
Page 181 and 182:
Page 183 and 184:
Page 185 and 186:
Page 187 and 188:
Page 189 and 190:
Page 191 and 192:
Page 193 and 194:
Page 195 and 196:
Page 197 and 198:
Page 199 and 200:
Page 201 and 202:
Page 203 and 204:
Page 205 and 206:
Page 207 and 208:
Page 209 and 210:
Page 211 and 212:
Page 213 and 214:
Page 215 and 216:
Page 217 and 218:
Page 219 and 220:
Page 221 and 222:
Page 223 and 224:
Page 225 and 226:
Page 227 and 228:
Conclusion Challenges in the Era of
Page 229 and 230:
Page 231 and 232:
Page 233 and 234:
Page 235 and 236:
37. Provision of sound education fo
Page 237 and 238:
Page 239 and 240:
Page 241 and 242:
The cost structure Challenges in th
Page 243 and 244:
Page 245 and 246:
Page 247 and 248:
Page 249 and 250:
Empirical Analysis Challenges in th
Page 251 and 252:
Page 253 and 254:
Page 255 and 256:
Page 257 and 258:
Page 259 and 260:
Page 261 and 262:
Page 263 and 264:
Page 265 and 266:
Page 267 and 268:
Page 269 and 270:
Page 271 and 272:
Page 273 and 274:
Page 275 and 276:
Variable Coefficient Std. Error t-S
Page 277 and 278:
Page 279 and 280:
Page 281 and 282:
Page 283 and 284:
Page 285 and 286:
Page 287 and 288:
Page 289 and 290:
Page 291 and 292:
Abstract The Changing Requirements
Page 293 and 294:
Page 295 and 296:
The Model, Data and Variable Defini
Page 297 and 298:
Page 299 and 300:
Page 301 and 302:
Page 303 and 304:
Page 305 and 306:
Page 307 and 308:
Page 309 and 310:
Page 311 and 312:
Page 313 and 314:
Page 315 and 316:
Track 8: Gender and Economic Develo
Page 317 and 318:
Page 319 and 320:
Empirical results Challenges in the
Page 321 and 322:
Page 323 and 324:
Abstract Gender, poverty and sustai
Page 325 and 326:
Page 327 and 328:
Page 329 and 330:
Page 331 and 332:
Page 333 and 334:
Page 335 and 336:
Figure 1.1: Spread of directorships
Page 337 and 338:
Page 339 and 340:
Page 341 and 342:
Page 343 and 344:
Theoretical Framework Challenges in
Page 345 and 346:
Single 18.1 Masters and above 35.3
Page 347 and 348:
Source: Field survey, 2010 Table 3:
Page 349 and 350:
Page 351 and 352:
Track 9: Global Studies and Politic
Page 353 and 354:
Conceptual Definitions Challenges i
Page 355 and 356:
Page 357 and 358:
Page 359 and 360:
Page 361 and 362:
Page 363 and 364:
Page 365 and 366:
Page 367 and 368:
Page 369 and 370:
Page 371 and 372:
Page 373 and 374:
Page 375 and 376:
Page 377 and 378:
Page 379 and 380:
Page 381 and 382:
Page 383 and 384:
Page 385 and 386:
Page 387 and 388:
Page 389 and 390:
Page 391 and 392:
Page 393 and 394:
Page 395 and 396:
Page 397 and 398:
70000 60000 50000 40000 30000 20000
Page 399 and 400:
Page 401 and 402:
Page 403 and 404:
Page 405 and 406:
Page 407 and 408:
Page 409 and 410:
Page 411 and 412:
Page 413 and 414:
Page 415 and 416:
Page 417 and 418:
Page 419 and 420:
Page 421 and 422:
Page 423 and 424:
Conclusions and Implications Challe
Page 425 and 426:
Abstract Exploring Organisational R
Page 427 and 428:
Page 429 and 430:
Page 431 and 432:
Page 433 and 434:
Page 435 and 436:
Page 437 and 438:
district hospitals: Evidence from N
Page 439 and 440:
Page 441 and 442:
Page 443 and 444:
Page 445 and 446:
Page 447 and 448:
Page 449 and 450:
Page 451 and 452:
Page 453 and 454:
Page 455 and 456:
Page 457 and 458:
Defining the Organisational Culture
Page 459 and 460:
Page 461 and 462:
Page 463 and 464:
Page 465 and 466:
Page 467 and 468:
Table 1: A Summary of Operating Ban
Page 469 and 470:
Page 471 and 472:
Page 473 and 474:
Page 475 and 476:
Page 477 and 478:
Page 479 and 480:
Page 481 and 482:
Page 483 and 484:
Page 485 and 486:
Page 487 and 488:
Page 489 and 490:
Discussion and Conclusion Challenge
Page 491 and 492:
Page 493 and 494:
Abstract What does Globalization me
Page 495 and 496:
Page 497 and 498:
7. I see globalization as providing
Page 499 and 500:
Page 501 and 502:
Page 503 and 504:
Page 505 and 506:
Page 507 and 508:
Page 509 and 510:
Track 12: Information Systems and E
Page 511 and 512:
Page 513 and 514:
Page 515 and 516:
Page 517 and 518:
Page 519 and 520:
Page 521 and 522:
Research Methods approach Challenge
Page 523 and 524:
Page 525 and 526:
Page 527 and 528:
Page 529 and 530:
Page 531 and 532:
Page 533 and 534:
Page 535 and 536:
Statement of the Problem Challenges
Page 537 and 538:
Page 539 and 540:
Page 541 and 542:
Page 543 and 544:
Page 545 and 546:
Page 547 and 548:
Page 549 and 550:
Page 551 and 552:
Page 553 and 554:
Page 555 and 556:
Page 557 and 558:
Page 559 and 560:
Page 561 and 562:
Page 563 and 564:
Page 565 and 566:
Page 567 and 568:
Page 569 and 570:
Page 571 and 572:
Page 573 and 574:
Convenient location of banks Challe
Page 575 and 576:
Page 577 and 578:
Page 579 and 580:
Page 581 and 582:
Page 583 and 584:
Page 585 and 586:
Page 587 and 588:
Page 589 and 590:
Page 591 and 592:
Page 593 and 594:
Page 595 and 596:
Page 597 and 598:
Page 599 and 600:
Page 601 and 602:
Page 603 and 604:
Page 605 and 606:
Page 607 and 608:
Page 609 and 610:
Page 611 and 612:
Page 613 and 614:
Figure 1.Framework for Bank selecti
Page 615 and 616:
Page 617 and 618:
Banks in Ghana Challenges in the Er
Page 619 and 620:
Page 621 and 622:
Page 623 and 624:
Page 625 and 626:
Page 627 and 628:
References: Challenges in the Era o
Page 629 and 630:
Page 631 and 632:
Page 633 and 634:
Figure 5: Causal loop diagram inclu
Page 635 and 636:
Page 637 and 638:
The study seeks to: • examine typ
Page 639 and 640:
Page 641 and 642:
Figure 2: Customer Perception of MT
Page 643 and 644:
Page 645 and 646:
Page 647 and 648:
Page 649 and 650:
Page 651 and 652:
Relationship Commitment Total 1264.
Page 653 and 654:
Page 655 and 656:
Page 657 and 658:
Page 659 and 660:
Page 661 and 662:
Page 663 and 664:
Page 665 and 666:
Page 667 and 668:
Factor Item Loading Imaginative 0.4
Page 669 and 670:
Page 671 and 672:
Page 673 and 674:
Page 675 and 676:
Figure 1: Components of Data Analys
Page 677 and 678:
Page 679 and 680:
Abstract Marketing Nigerian medicin
Page 681 and 682:
Page 683 and 684:
Page 685 and 686:
References Challenges in the Era of
Page 687 and 688:
Page 689 and 690:
Page 691 and 692:
Page 693 and 694:
Page 695 and 696:
Page 697 and 698:
Page 699 and 700:
Page 701 and 702:
Page 703 and 704:
Page 705 and 706:
Page 707 and 708:
Page 709 and 710:
firms attained below average market
Page 711 and 712:
Page 713 and 714:
Page 715 and 716:
Page 717 and 718:
Page 719 and 720:
Conclusion Dissatisfied 6 3.4 3.6 7
Page 721 and 722:
Abstract Customer satisfaction with
Page 723 and 724:
Methodology Challenges in the Era o
Page 725 and 726:
Discussion Challenges in the Era of
Page 727 and 728:
Page 729 and 730:
Postgraduate 19 Internet experience
Page 731 and 732:
Average daily Internet hours z P-va
Page 733 and 734:
Page 735 and 736:
Track 17: Project Management in Afr
Page 737 and 738:
Page 739 and 740:
Conclusion Challenges in the Era of
Page 741 and 742:
Page 743 and 744:
Page 745 and 746:
Page 747 and 748:
Page 749 and 750:
Page 751 and 752:
Page 753 and 754:
Page 755 and 756:
Page 757 and 758:
Page 759 and 760:
Page 761 and 762:
Page 763 and 764:
Page 765 and 766:
GOVERNMENT MoFED SECTORS Structure
Page 767 and 768:
Page 769 and 770:
Page 771 and 772:
�− growth and represented by
Page 773 and 774:
Results Challenges in the Era of Gl
Page 775 and 776:
Page 777 and 778:
Input: Process, regulation Referenc
Page 779 and 780:
Page 781 and 782:
Page 783 and 784:
CSOEs Statesponsored Agenda Resourc
Page 785 and 786:
Page 787 and 788:
Track 19: Graduate Student Paper Ch
Page 789 and 790:
Page 791 and 792:
Page 793 and 794:
Page 795 and 796:
Page 797 and 798:
Page 799 and 800:
+ ∑ ∑ β j it )(ln X jt ) + ∑
Page 801 and 802:
Page 803 and 804:
Page 805 and 806:
Page 807 and 808:
Page 809 and 810:
Page 811 and 812:
Methodology and estimation results
Page 813 and 814:
Page 815 and 816:
Page 817 and 818:
Page 819 and 820:
Page 821 and 822:
Page 823 and 824:
Page 825 and 826:
Methodology Challenges in the Era o
Page 827 and 828:
Page 829 and 830:
Page 831 and 832:
Page 833 and 834:
Page 835 and 836:
Figure1.1Inflation and Indexation R
Page 837 and 838:
Page 839 and 840:
Page 841 and 842:
Page 843 and 844:
Football Spectatorship Challenges i
Page 845 and 846:
R 2, 000 - R5, 000 22 R5, 001 - R10
Page 847 and 848:
Page 849 and 850:
Page 851 and 852:
Page 853 and 854:
Page 855 and 856:
show all

Challenges in the Era of Globalization - iaabd

Create successful ePaper yourself

Delete template?

Save as template?