Author:
Barnawi Maher Hamzah M,Abdullah Dewi Fariha
Abstract
Objective: The purpose of this study is to propose a conceptual framework that investigates the impact of corporate governance practices on shareholder value.
Theoretical framework: The proposed framework of this study is established based on agency theory and stewardship theory to establish the interrelationships among the models in this study.
Method: In line with previous research, corporate governance practices have been shown to improve information disclosure through voluntary disclosure.
Result and conclusion: This leads to maximizing the shareholders' value, as discussed in this paper. Financial leverage as a moderator factor is found to be a potentially significant factor in strengthening the effect of voluntary disclosure of information on the shareholders' value.
Conclusion: Corporate governance practices play a pivotal role in enhancing shareholder value, especially when considering the influence of voluntary disclosure and the moderating effect of financial leverage.
Originality/Value: The unique contribution of this research lies in its comprehensive analysis of the relationships between corporate governance practices, voluntary information disclosure, financial leverage, and their combined influence on shareholder value.
Publisher
South Florida Publishing LLC
Subject
Law,Development,Management, Monitoring, Policy and Law
Reference86 articles.
1. Abdel-Fattah, TMH (2008), ‘Voluntary disclosure practices in emerging capital markets: the case of Egypt’, PhD thesis, Durham University, Durham.
2. Abdullah, S. N., Nasir, M. N., 2004. Accrual Management and the Independence of the board of Directors and Audit Committees. IIUM Journal of Economics and Management 12(1), 49-80.
3. Aggarwal, R., Jindal, V., and Seth, R. (2019). Board diversity and firm performance: The role of business group affiliation. International Business Review, 28(6), 101600. doi:https://doi.org/10.1016/j.ibusrev.2019.101600
4. Ahmadi, A., Nakaa, N., and Bouri, A. (2018). Chief Executive Officer attributes, board structures, gender diversity and firm performance among French CAC 40 listed firms. Research in International Business and Finance, 44, 218-226.
5. Al Farooque, O., Buachoom, W., and Sun, L. (2020). Board, audit committee, ownership and financial performance – emerging trends from Thailand. Pacific Accounting Review, 32(1), 54-81. doi:10.1108/PAR-10-2018-0079