An Integrated Corporate Governance Framework and Financial Performance in South African Listed Corporations
AbstractThis 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.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 45805.
Date of creation: Apr 2013
Date of revision:
corporate governance; corporate financial performance; affirmative action and stakeholder provisions; King II and South Africa; endogeneity;
Find related papers by JEL classification:
- G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
- G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
- G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
This paper has been announced in the following NEP Reports:
- NEP-AFR-2013-04-06 (Africa)
- NEP-ALL-2013-04-06 (All new papers)
- NEP-EFF-2013-04-06 (Efficiency & Productivity)
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