IDEAS home Printed from https://ideas.repec.org/a/ibf/gjbres/v4y2010i3p73-88.html
   My bibliography  Save this article

Evidence On Corporate Governance Compliance By Palestine Securities Exchange Listed Firms

Author

Listed:
  • Naser Abdelkarim
  • Khadija Ijbara

Abstract

Good corporate governance is widely recognized as essential for the creation of a better and more attractive investment climate. The key objective of this descriptive research is to examine the extent of compliance of firms listed at Palestine Securities Exchange (PSE) with corporate governance best practices from managerial perspective. The study provides evidence that the PSE listed firms do not comply satisfactorily with corporate governance best practices specially when it comes to Board Composition and Independence. On the other hand, the non-compliance level in the area of transparency and disclosure was not as obvious. The study identifies a number of factors that may contribute to this non-compliance including the non-existent of enforceable code of corporate governance and the outdated Company Law that is still in effect in the Palestinian Territories, and finally the family dominance over corporate affairs . The value of this study stems from providing an evidence on compliance with good corporate governance by firms operating in under developed country with a small and simple but growing economy. The findings of this paper are considered relevant and helpful when evaluating the maturity of Palestinian economy, as well as the degree of PSE efficiency.

Suggested Citation

  • Naser Abdelkarim & Khadija Ijbara, 2010. "Evidence On Corporate Governance Compliance By Palestine Securities Exchange Listed Firms," Global Journal of Business Research, The Institute for Business and Finance Research, vol. 4(3), pages 73-88.
    • Handle: RePEc:ibf:gjbres:v:4:y:2010:i:3:p:73-88
    as

    Download full text from publisher

    File URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v4n3-2010/GJBR-V4N3-2010-6.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hart, Oliver, 1995. "Corporate Governance: Some Theory and Implications," Economic Journal, Royal Economic Society, vol. 105(430), pages 678-689, May.
    2. Shleifer, Andrei & Vishny, Robert W, 1997. "A Survey of Corporate Governance," Journal of Finance, American Finance Association, vol. 52(2), pages 737-783, June.
    3. Rafael La Porta & Florencio Lopez‐De‐Silanes & Andrei Shleifer, 1999. "Corporate Ownership Around the World," Journal of Finance, American Finance Association, vol. 54(2), pages 471-517, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Abdul Razak Abdul Hadi & Shadi Hamad & Eddy Yap Tat Hiung, 2017. "Integration of Financial Markets: A Study of Egypt and Palestine Stock Markets," Applied Finance and Accounting, Redfame publishing, vol. 3(1), pages 1-10, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Haan, Marco A. & Riyanto, Yohanes, 2006. "The effects of takeover threats on shareholders and firm value," Journal of Economic Behavior & Organization, Elsevier, vol. 59(1), pages 45-68, January.
    2. Chirinko, Robert S. & Schaller, Huntley, 2004. "A revealed preference approach to understanding corporate governance problems: Evidence from Canada," Journal of Financial Economics, Elsevier, vol. 74(1), pages 181-206, October.
    3. Matthias Köhler, 2012. "Ownership structure, regulation and the market for corporate control in the EU banking sector," European Journal of Law and Economics, Springer, vol. 34(1), pages 173-196, August.
    4. Gregorio Sánchez‐Marín & María Encarnación Lucas‐Pérez & Samuel Baixauli‐Soler & Brian G.M. Main & Antonio Mínguez‐Vera, 2022. "Excess executive compensation and corporate governance in the United Kingdom and Spain: A comparative analysis," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(7), pages 2817-2837, October.
    5. Henrique Castro Martins & Cristiano Machado Costa, 2020. "Does control concentration affect board busyness? International evidence," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 24(3), pages 821-850, September.
    6. Jung Hur & Rasyad A. Parinduri & Yohanes E. Riyanto, 2011. "Cross‐Border M&A Inflows And Quality Of Country Governance: Developing Versus Developed Countries," Pacific Economic Review, Wiley Blackwell, vol. 16(5), pages 638-655, December.
    7. Juan Manuel San Martin-Reyna & Jorge A. Duran-Encalada, 2015. "Effects of Family Ownership, Debt and Board Composition on Mexican Firms Performance," IJFS, MDPI, vol. 3(1), pages 1-19, March.
    8. Wu, Hsueh-Liang, 2011. "Can minority state ownership influence firm value? Universal and contingency views of its governance effects," Journal of Business Research, Elsevier, vol. 64(8), pages 839-845, August.
    9. Christian Engelen, 2015. "The effects of managerial discretion on moral hazard related behaviour: German evidence on agency costs," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 19(4), pages 927-960, November.
    10. Nicola Lacetera, 2000. "Corporate Governance and the Governance of Innovation: the Case of Pharmaceutical Industry," KITeS Working Papers 122, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised Dec 2000.
    11. Aldrighi, Dante Mendes, 2003. "The Mechanisms of Corporate Governance in the United States: an Assessment," Revista Brasileira de Economia - RBE, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil), vol. 57(3), July.
    12. Lorraine Uhlaner & Mike Wright & Morten Huse, 2007. "Private Firms and Corporate Governance: An Integrated Economic and Management Perspective," Small Business Economics, Springer, vol. 29(3), pages 225-241, October.
    13. Gregorio Sanchez-Marin & J. Samuel Baixauli-Soler & M. Encarnacion Lucas-Perez, 2010. "Ownership Structure and Board Effectiveness as Determinants of TMT Compensation in Spanish Listed Firms," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 12(1), pages 92-109, November.
    14. S. Subramanian, 2016. "A Comparison of Corporate Governance Practices in State-owned Enterprises and Their Private Sector Peers in India," IIM Kozhikode Society & Management Review, , vol. 5(2), pages 200-216, July.
    15. Gilberto E. Arce & Edgar Robles C., 2005. "Corporate Governance in Costa Rica," Research Department Publications 3218, Inter-American Development Bank, Research Department.
    16. Klapper, Leora F. & Love, Inessa, 2004. "Corporate governance, investor protection, and performance in emerging markets," Journal of Corporate Finance, Elsevier, vol. 10(5), pages 703-728, November.
    17. Fidrmuc, Jana P. & Jacob, Marcus, 2010. "Culture, agency costs, and dividends," Journal of Comparative Economics, Elsevier, vol. 38(3), pages 321-339, September.
    18. Jongmoo Jay Choi & Hoje Jo & Jimi Kim & Moo Sung Kim, 2018. "Business Groups and Corporate Social Responsibility," Journal of Business Ethics, Springer, vol. 153(4), pages 931-954, December.
    19. Heinrich, Ralph P., 1999. "Complementarities in Corporate Governance - A Survey of the Literature with Special Emphasis on Japan," Kiel Working Papers 947, Kiel Institute for the World Economy (IfW Kiel).
    20. Sergio Destefanis & Vania Sena, 2007. "Patterns of corporate governance and technical efficiency in Italian manufacturing," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 28(1), pages 27-40.

    More about this item

    Keywords

    Corporate Governance; CEO Duality; Boards' composition; Boards' effectiveness; Transparency and Disclosure.;
    All these keywords.

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ibf:gjbres:v:4:y:2010:i:3:p:73-88. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mercedes Jalbert (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.