An integrated corporate governance framework and financial performance in South African-listed corporations
An integrated corporate governance framework and financial performance in South African-listed corporations
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.
corporate governance, corporate financial performance, affirmative action andstakeholder provisions, King II and South Africa, endogeneity
373-392
Ntim, Collins G.
1f344edc-8005-4e96-8972-d56c4dade46b
4 September 2013
Ntim, Collins G.
1f344edc-8005-4e96-8972-d56c4dade46b
Ntim, Collins G.
(2013)
An integrated corporate governance framework and financial performance in South African-listed corporations.
South African Journal of Economics, 81 (3), .
(doi:10.1111/j.1813-6982.2011.01316.x).
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.
Text
Collins Ntim SJE Paper
- Accepted Manuscript
More information
Published date: 4 September 2013
Keywords:
corporate governance, corporate financial performance, affirmative action andstakeholder provisions, King II and South Africa, endogeneity
Organisations:
Centre of Excellence for International Banking, Finance & Accounting, Accounting
Identifiers
Local EPrints ID: 343115
URI: http://eprints.soton.ac.uk/id/eprint/343115
ISSN: 0038-2280
PURE UUID: 9f31a960-5244-4c44-8936-5bb7f159ee27
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Date deposited: 24 Sep 2012 14:23
Last modified: 15 Mar 2024 02:27
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