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Corporate Governance and Its Effect On Firm Performance In An Emerging Economy KAREM, Langa Esmael; HAMAD, Hawkar Anwer; BAYZ, Hakar Abubakir; FATAH, Naji Afrasyaw; ALI, Diary Jalal; AHMED, Znar Nahro; GARDI, Bayar; QADER, Khowanas Saeed
International Journal of Environmental, Sustainability, and Social Science Vol. 2 No. 3 (2021): International Journal of Environmental, Sustainability, and Social Science (Nov
Publisher : PT Keberlanjutan Strategis Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.38142/ijesss.v2i3.96

Abstract

Having a board of directors is very important to ensure the smooth running of business processes and have an impact on the company's financial performance. This study to determine the impact of board characteristics namely board size, board ownership and board composition on the financial performance of organizations as measured by Return on Assets. The study employed a descriptive-explanatory research design based on a cross-sectional approach. Correlation and regression analyses were conducted to determine the depth and extent of the relationship between the variables. The study revealed a positive and significant association between the board size and financial performance on an average of 9 board members. Board composition revealed that having more external directors had no effect on the financial performance, it neither increased it nor decreased it, leading to the rejection of the hypothesis. On the other hand, board ownership was found to be beneficial in terms of having directors as owners of the business, corroborating the Stakeholder Theory. The studies showed that there was still a need to select board members with caution striking a balance between the number of directors as well as their composition to ensure that the organization reaps maximum benefits from the board.
Intellectual Capital and Firm Performance: Value-Added Intellectual Coefficient Ahmed, Znar Nahro; Hussin, Muhammad Rosni Amir
Journal of Accounting Research, Organization and Economics Vol 6, No 2 (2023): JAROE Vol. 6 No. 2 August 2023
Publisher : Universitas Syiah Kuala

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.24815/jaroe.v6i2.32701

Abstract

Objective This article is concerned with the influence of IC and understanding the vital success factor of the components on firm performance. This study aims to deliver a complete review of existing evidence related to the effect of IC on firm performance.Methodology A review of the literature was conducted based on the five components of intellectual capital: human capital, structural capital, capital employed, relational capital, and innovation capital. Using electronic searches in three databases (Emerald, Web of Science, and Scopus) and keywords to identify relevant studies, 48 published studies are identified from 2010-2020.Results The results indicated that research focusing on IC and its impact on company performance has gained growing interest within scholarly works over recent decades. Furthermore, a steadier rise in interest can be observed from 2017 onwards, reaching its peak in 2019 with a 50% acceleration in the publication rate compared to the preceding year. In addition, the widely accepted method is the value-added intellectual coefficient approach without any modification or extension. Moreover, out of reviewed (48) studies only (12) of them utilized an adjusted VAIC model.Novelty/Originality This paper contributes to IC literature by providing a unique review of the IC and firm performance field of research.