Corporate governance impact on financial performance: evidence from Asian listed companies
by Mohamed Bechir Chenguel
Global Business and Economics Review (GBER), Vol. 30, No. 4, 2024

Abstract: This study explores the relationship between specific governance mechanisms, namely shareholder activism, the independence of the audit committee, with the financial performance of Asian listed companies. The estimating methodology used panel data from a panel of 622 listed Asian companies observed from 2012 to 2019. We used three estimation methods to ensure the quality of the results. For our robustness estimation, we establish an endogeneity test for the shareholder activism variable and test its impact on financial performance. Our results revealed a positive and significant relationship between the financial performance variable gender diversity, activism and board independence variables. Other mechanisms had a negative impact such as the duality, independence of the audit committee. Finally, for the robustness check, the endogeneity test revealed that the shareholder activism variable is endogenous and directly the dependent variable of our model. Our contribution is to test the effect of shareholder activism as a governance mechanism, on the profitability of assets, especially in the Asian context with six countries.

Online publication date: Fri, 31-May-2024

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the Global Business and Economics Review (GBER):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com