An integrated corporate governance framework and financial performance in South African-listed corporations


Ntim, Collins G. (2013) An integrated corporate governance framework and financial performance in South African-listed corporations. South African Journal of Economics, 81, (3), 373-392. (doi:10.1111/j.1813-6982.2011.01316.x).

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Description/Abstract

This paper investigates the relationship between an integrated corporate governance (CG) index and financial performance using a sample of 169 South African (SA) listed corporations between 2002 and 2007. We find a statistically significant and positive association between a broad set of good CG practices and financial performance. In a series of sensitivity analyses, we find that our results are robust to endogeneity, different financial performance proxies, alternative CG weighting scheme and firm-level fixed-effects. We further distinctively examine the link between complying with SA context specific stakeholder CG provisions and financial performance. In line with political cost and resource dependence theories, our results reveal a statistically significant and positive nexus between compliance with stakeholder CG provisions and financial performance.

JEL classification: G30, G34, G38


Keywords: corporate governance, corporate financial performance, affirmative action and
stakeholder provisions, King II and South Africa, endogeneity

Item Type: Article
Digital Object Identifier (DOI): doi:10.1111/j.1813-6982.2011.01316.x
ISSNs: 0038-2280 (print)
1813-6982 (electronic)
Keywords: corporate governance, corporate financial performance, affirmative action and stakeholder provisions, King II and South Africa, endogeneity
Subjects: H Social Sciences > HF Commerce > HF5601 Accounting
Divisions: Faculty of Business and Law > Southampton Business School > Centre of Excellence for International Banking, Finance & Accounting
ePrint ID: 343115
Date :
Date Event
4 September 2013Published
Date Deposited: 24 Sep 2012 14:23
Last Modified: 01 Oct 2016 06:06
URI: http://eprints.soton.ac.uk/id/eprint/343115

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