IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/86895.html
   My bibliography  Save this paper

The Influence of Corporate Governance to the Firm Performance in Logistics Industry

Author

Listed:
  • Tan, Yi Lin
  • Yusof, Mimi Syazwani
  • Mohd Ali, Nur Aqilah
  • Mohamed Azmi, Zahirah

Abstract

The aim of this study is to break down the execution of logistics industries in United Kingdom (UK) throughout five years. The analysis is employ on the sample of six organization in UK over the period in the vicinity of 2013 and 2017. The information is derived from annual report of Kerry Logistic, Wincanton, DFDS Seaways, Easy Jet and Stobart Group. This study utilizing a clear descriptive analysis, for example profitability, liquidity risk, credit risk, operational risk and also economic environment as to look at the performance of the organization include in logistics industries. The information ascertained is on average. The result show that the company performance can be influenced by the risk and economic environment. The study found the profitability ratio in term of current, quick ratio and debt to income are significant to independent variable which are to the return on asset. While, return on asset are significant to average collection period, liquidity ratio, unemployment rate, interest rate and operational ratio.

Suggested Citation

  • Tan, Yi Lin & Yusof, Mimi Syazwani & Mohd Ali, Nur Aqilah & Mohamed Azmi, Zahirah, 2018. "The Influence of Corporate Governance to the Firm Performance in Logistics Industry," MPRA Paper 86895, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:86895
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/86895/1/MPRA_paper_86895.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Garbade, Kenneth D & Silber, William L, 1979. "Structural Organization of Secondary Markets: Clearing Frequency, Dealer Activity and Liquidity Risk," Journal of Finance, American Finance Association, vol. 34(3), pages 577-593, June.
    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. Acharya, Viral V. & Pedersen, Lasse Heje, 2005. "Asset pricing with liquidity risk," Journal of Financial Economics, Elsevier, vol. 77(2), pages 375-410, August.
    4. Waeibrorheem Waemustafa & Suriani Sukri, 2016. "Systematic and Unsystematic Risk Determinants of Liquidity Risk Between Islamic and Conventional Banks," International Journal of Economics and Financial Issues, Econjournals, vol. 6(4), pages 1321-1327.
    5. John T. Scruggs, 1998. "Resolving the Puzzling Intertemporal Relation between the Market Risk Premium and Conditional Market Variance: A Two-Factor Approach," Journal of Finance, American Finance Association, vol. 53(2), pages 575-603, April.
    6. Darryll Hendricks & Beverly Hirtle, 1997. "Bank capital requirements for market risk: the internal models approach," Economic Policy Review, Federal Reserve Bank of New York, vol. 3(Dec), pages 1-12.
    7. Altman, Edward I. & Saunders, Anthony, 1997. "Credit risk measurement: Developments over the last 20 years," Journal of Banking & Finance, Elsevier, vol. 21(11-12), pages 1721-1742, December.
    8. La Porta, Rafael & Lopez-de-Silanes, Florencio & Shleifer, Andrei & Vishny, Robert, 2000. "Investor protection and corporate governance," Journal of Financial Economics, Elsevier, vol. 58(1-2), pages 3-27.
    9. Douglas W. Diamond, 1991. "Debt Maturity Structure and Liquidity Risk," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(3), pages 709-737.
    10. Chavez-Demoulin, V. & Embrechts, P. & Neslehova, J., 2006. "Quantitative models for operational risk: Extremes, dependence and aggregation," Journal of Banking & Finance, Elsevier, vol. 30(10), pages 2635-2658, October.
    11. Robert B. Avery & Raphael W. Bostic & Paul S. Calem & Glenn B. Canner, 1996. "Credit risk, credit scoring, and the performance of home mortgages," Federal Reserve Bulletin, Board of Governors of the Federal Reserve System (U.S.), vol. 82(Jul), pages 621-648, July.
    Full references (including those not matched with items on IDEAS)

    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. 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.
    2. Henrique Castro Martins & Eduardo Schiehll & Paulo Renato Soares Terra, 2020. "Do shareholder protection and creditor rights have distinct effects on the association between debt maturity and ownership structure?," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 47(5-6), pages 708-729, May.
    3. Pillai, Rekha & Al-Malkawi, Husam-Aldin Nizar, 2018. "On the relationship between corporate governance and firm performance: Evidence from GCC countries," Research in International Business and Finance, Elsevier, vol. 44(C), pages 394-410.
    4. Ghabri Yosra & Olfa Ben Ouda Sioud, 2011. "Ultimate ownership structure and stock liquidity: empirical evidence from Tunisia," Studies in Economics and Finance, Emerald Group Publishing Limited, vol. 28(4), pages 282-300, October.
    5. Urbi Garay & Maximiliano González, 2008. "Corporate Governance and Firm Value: The Case of Venezuela," Corporate Governance: An International Review, Wiley Blackwell, vol. 16(3), pages 194-209, May.
    6. Attaullah Shah & Zahoor Khan, 2016. "Importance of Judicial Efficiency in Capital Structure Decisions of Small Firms: Evidence from Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 55(4), pages 361-394.
    7. Sin-Yu Ho & Bernard Njindan Iyke, 2017. "Determinants of stock market development: a review of the literature," Studies in Economics and Finance, Emerald Group Publishing Limited, vol. 34(1), pages 143-164, March.
    8. Da Teng & Douglas B. Fuller & Chengchun Li, 2018. "Institutional change and corporate governance diversity in China’s SOEs," Asia Pacific Business Review, Taylor & Francis Journals, vol. 24(3), pages 273-293, May.
    9. Kim, Sang-Joon & Bae, John & Oh, Hannah, 2019. "Financing strategically: The moderation effect of marketing activities on the bifurcated relationship between debt level and firm valuation of small and medium enterprises," The North American Journal of Economics and Finance, Elsevier, vol. 48(C), pages 663-681.
    10. Z. Jun Lin & Shengqiang Liu & Fangcheng Sun, 2017. "The Impact of Financing Constraints and Agency Costs on Corporate R&D Investment: Evidence from China," International Review of Finance, International Review of Finance Ltd., vol. 17(1), pages 3-42, March.
    11. Ruth V. Aguilera & Kurt A. Desender & Mónica López-Puertas Lamy & Jun Ho Lee, 2017. "The governance impact of a changing investor landscape," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(2), pages 195-221, February.
    12. Nenova, Tatiana, 2003. "The value of corporate voting rights and control: A cross-country analysis," Journal of Financial Economics, Elsevier, vol. 68(3), pages 325-351, June.
    13. Filatotchev, Igor & Poulsen, Annette & Bell, R. Greg, 2019. "Corporate governance of a multinational enterprise: Firm, industry and institutional perspectives," Journal of Corporate Finance, Elsevier, vol. 57(C), pages 1-8.
    14. Jing Wu & Qiuge Yao & Haoxiang Tong, 2019. "Does monetary policy tightening reduce the maturity mismatch of investment and financing: Empirical evidence from China," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 9(6), pages 1-3.
    15. Chen, Anlin & Kao, Lanfeng & Lu, Cheng-Shou, 2014. "Controlling ownership and firm performance in Taiwan: The role of external competition and internal governance," Pacific-Basin Finance Journal, Elsevier, vol. 29(C), pages 219-238.
    16. Ahsan Habib & Mabel D' Costa & Hedy Jiaying Huang & Md. Borhan Uddin Bhuiyan & Li Sun, 2020. "Determinants and consequences of financial distress: review of the empirical literature," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 60(S1), pages 1023-1075, April.
    17. Paul Gompers & Joy Ishii & Andrew Metrick, 2003. "Corporate Governance and Equity Prices," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(1), pages 107-156.
    18. Marco Zanobio, 2012. "Aspetti teorici della Corporate Governance," DISEIS - Quaderni del Dipartimento di Economia internazionale, delle istituzioni e dello sviluppo dis1202, Università Cattolica del Sacro Cuore, Dipartimento di Economia internazionale, delle istituzioni e dello sviluppo (DISEIS).
    19. Sengupta, Rajdeep, 2007. "Foreign entry and bank competition," Journal of Financial Economics, Elsevier, vol. 84(2), pages 502-528, May.
    20. Praveen Das, 2014. "The role of corporate governance in foreign investments," Applied Financial Economics, Taylor & Francis Journals, vol. 24(3), pages 187-201, February.

    More about this item

    Keywords

    Profitability; Credit Risk; Liquidity; Macroeconomic; Corporate Governance;
    All these keywords.

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

    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:pra:mprapa:86895. 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: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    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.