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The key purpose of this research paper is to explore the moderating effect of Corporate Governance on the relationship between accounting base financial performance i.e. ROA, and ROE and Capital Structure of 173 Manufacturing firms listed in KSE of Pakistan for the period of 2009 to 2014. In this study multiple regression method is used under fixed effect regression model approach on panel data. The empirical results show that the inclusion of Corporate Governance Index (CGI) as moderating variable has influenced the interaction between Capital Structure and Financial Performance which was positively significant. The result is generally found that the most of Pakistani manufacturing listed firms pursue good corporate governance mechanism and use good and optimal level of Capital Mix to get the better and high financial performance. Furthermore, the corporate governance sub-indices i.e. board structure (BOD-I) and transparency & disclosure (DISC-III) both also have positive and statistically significant association with both firms performance variables: ROA and ROE. Moreover, the ownership structure sub-index (OWS-II) has not significant influence on financial performance. In last, the capital structure also has positive relationship with financial performance, interestingly about 70 per cent of Capital is financed by Equity capital and the Debt capital signifies 30 per cent only. The core significance of this paper is to investigate the impact of Corporate Governance practices on financial decisions from the Pakistani perspective.

Firm value is dependent on corporate which leads to increased value. High valued firms attract more investors. Towards firm value protection, minimum capital requirements were raised by the Central Bank of Kenya from 250 million to 1 billion shillings on commercial banks to cushion bank shareholders value. Despite the increased oversight and regulatory efforts on corporate governance to protect and enhance firm value, some commercial banks have recorded low firm value. Hence, this study sought to investigate the mediating effect of financial performance on the relationship between corporate governance and firm value of commercial banks in Kenya. The study was anchored on Agency Theory. Explanatory research design was adopted. Target population was forty four Kenyan commercial banks, where a census was conducted. Secondary data was collected from published financial statements and bank websites for the period 2009 to 2018. STATA version 13.0 was used for data analysis. Descriptive and inferential statistics specifically panel regression was used in data analysis. The study findings established that there is a statistically significant effect between financial performance and firm value of commercial banks in Kenya. Therefore, the study concluded that firms with good financial performance have high firm value. And as such, these calls for the management of the commercial banks improve financial performance which will go a long way in improving firm value. There is also need for Central bank of Kenya, Capital Markets Authority and Nairobi Securities Exchange to emphasis on corporate governance and short term goals to enable achievement of long term goals .  

Determining the optimal capital structure is one of the most fundamental policy decisions faced by financial managers. Since optimal debt ratio influences firm’s value, different firms determine capital structures at different levels to maximize the value of their firms. Thus, this study examines the relationship between leverage and firm specific (profitability, tangibility, growth, risk, size and liquidity) determinants of capital structure decision, and the theories of capital structure that can explain the capital structure of banks in Ethiopia. In order to investigate these issues a mixed method research approach is utilized, by combining documentary analysis and in-depth interviews. More specifically, the study uses twelve years (2000 - 2011) data for eight banks in Ethiopia.   The findings show that profitability, size, tangibility and liquidity of the banks are important determinants of capital structure of banks in Ethiopia. However, growth and risk of banks are found to have no statistically significant impact on the capital structure of banks in Ethiopia. In addition, the results of the analysis indicate that pecking order theory is pertinent theory in Ethiopian banking industry, whereas there are little evidence to support static trade-off theory and the agency cost theory. Therefore, banks should give consideration to profitability, size, liquidity and tangibility when they determine their optimum capital structure.

This paper investigates how firms shifted their dividend policies and leverage policies in response to the economic shock caused by the 2008 financial crisis. The sample countries are United States, Great Britain, France, Germany, Australia, Japan, China, and Korea. The empirical relationship of firms’ dividend policies with their capital structures and earnings was likely to undergo a major change around the 2008 financial crisis, as firms adjusted their capital structures and dividend policies in response to the extreme credit crunch caused by the financial crisis. The extent and the speed that firms deleverage themselves and reduce their dividends were likely to be influenced by countries’ cultural and social norms. This paper finds a significant reduction in dividends across sample countries except Great Britain and France after the 2008 crisis. This finding supports the free cash flow theory that dividends are paid to dissipate free cash flow to address agency conflicts between managers and shareholders. This paper finds a higher correlation between dividends and leverages before the 2008 crisis, and that it strengthened after the crisis except Great Britain and Korea. This finding is consistent more with the pecking order theory than with the trade-off theory of leverage.

This study examined the long-run effect of financial leverage on firm value with evidence from a sample of 62 firms quoted on the Nigerian Stock Exchange, over the five-year period between 2014-2018. The level of financial leverage as measured by the Debt-Equity ratio while firm value was represented by Tobin’s Q Market-Book Value Ratio. The study contributes to the literature by appraising the dynamic dimensions of the causal relationship between firm value and financial leverage, an investigation that has remained elusive in indigenous studies. The study determined the degree of long-term causality by employing an auto-regressive model estimated by the Generalized Method of Moments (GMM) technique. The regression results show that financial leverage has a significant positive effect on the firm value both in the short and long run, while the result of the correlation analysis carried out reveals that there is a significantly positive and strong linear relationship between the time series of firm value and its lagged version implying that firm value does not demonstrate traits of Mean reversion. The Management of these companies was advised to optimize firm value by undertaking quality projects and relying more on debts for funding.

The aim of this study is to investigate the moderating role of cultural dimensions in the relationship between corporate governance mechanisms and financial performance, examining a sample of 9,316 companies from 47 countries. A mixed dataset with variables extracted at the company and country levels is statistically analysed, while multilevel robust regressions with random intercept modelling are used for econometric estimations. Based on information for the period 2020-2022, the moderating effects of three of the six cultural dimensions developed by Hofstede are examined at specific times of multiple constraints that could act as a stress factor in management decisions. The results show that the corporate governance-performance nexus is stronger in countries orientated toward masculinity, short-term benefits, and indulgence. Combining national cultural values, the national business system framework, agency, stakeholder, and legitimacy theories, the research provides nuanced empirical evidence of cultural tingent for academics and practitioners. The investigation shapes an original perspective, highlighting the need for culturally orientated corporate governance mechanisms. This approach complements the body of literature on corporate governance, financial performance, and national culture by demonstrating that the interaction between the governance score and cultural dimensions may play a pivotal role in shaping financial performance. Muchmore, the findings have valuable entrepreneurial implications for investors in resource allocation, while managers could broaden their scenarios for decision-making purposes, especially when companies face stakeholders from diverse cultural backgrounds.

This study investigates the relationship between corporate governance and firm performance in the Bangladeshi insurance sector, focusing on variables like board independence, female directors, audit committee size, leverage, and firm age. Using a sample of 42 insurance firms from 2017 to 2021, regression analysis is employed to assess these relationships. The findings show that board independence positively impacts performance, while audit committee size, leverage, and firm age have negative effects. Female directors exhibit a marginal but weak positive influence. This research contributes to the literature by providing empirical evidence from a developing economy, where limited studies exist. It also offers insights into governance practices in emerging markets. The implications suggest that policymakers and corporate leaders in Bangladesh should prioritize enhancing board independence, managing leverage, and promoting gender diversity to improve performance. Future research could explore causal relationships and extend the analysis to other sectors or emerging markets, considering cultural and regulatory factors.

The spate of failures and scandals in the basic materials sector in South Africa and globally bring into question not only the ethics of business leaders but primarily corporate governance and the role of boards in safeguarding the shareholders' wealth. The aim of the study was to ascertain the relationship between corporate governance and firm profitability of firms in the basic materials sector listed on the Johannesburg Stock Exchange. Five corporate governance characteristics are observed on two profitability measures, return on assets and return on equity and Tobin’s Q as the market indicator using a cross-sectional time-series panel data method of 54 firms in the basic materials sector listed on the JSE from 2017 to 2021. A regression analysis model is used to ascertain whether and to what degree a relationship exists between corporate governance and firm profitability within JSE-listed basic materials sector firms. The results show that corporate governance characteristics have a mixed impact on firm profitability, with some indicating a negative or no significant relationship, highlighting the complexity of this association. This study proves that if a firm chooses suitable corporate governance characteristics, the profitability of a firm can be enhanced. The outcome of this study should have implications for academic thoughts for further research on this subject and calls for a more concerted effort for boards to implement more prudent corporate governance mechanisms to future-proof the business of the basic materials sector.

This study investigates the relationship between banks' corporate governance practice and its impact on financial sustainability. In this study, twenty-four private commercial banks' data have been analyzed from 2014 to 2023. Our investigations included a variety of econometric models, including cross-sectional GLS, fixed effect, random effect, and pooled OLS. In our study, we found that including women on the Board of directors plays a positive role in ensuring the financial sustainability of banking sectors in Bangladesh. Apart from that, increasing the participation of independent directors on the board of directors, expenditures in research and development in the best banking practices, and inflation positively increase banks' profitability, which translates into financial sustainability. This finding is consistent with the findings of the random effect model. On the other hand, whenever we used ROE as an explained variable, we found that both in pooled OLS  and random effect methods, board diversity, CEO tenure, firms audited by the big four firms, and inflation have a positive association with ROE. In the fixed effect method, we observed that audit committee size and ownership concentration play a vital role in explaining the financial sustainability of private commercial banks in Bangladesh. In the FGLS method, We found that CEO tenure, age of the firm, firms audited by the big four firms, presence of the independent director on the board, and inflations significantly impact the financial sustainability of commercial banks of Bangladesh.

The purpose of this paper is to systematically examine studies on the relationship between corporate governance, organizational culture and firm performance, with the aim of knowing the potential for future research. The literature search consisted of two steps: a random literature review and a systematic literature review. The methodology adopted in this article is a systematic literature review. The Organizational Culture variable is an opportunity for research which is thought to be able to strengthen the relationship between corporate governance and firm performance, ownership structure and Board Characteristics which can be used as a proxy for corporate governance using resource based theory (RBV), resource dependence theory and agency theory, where research related to governance is an issue that is still very relevant to research at this time. Practical Implications, the development of a conceptual framework using resource-based theory (RBV) and resource dependence theory has implications for researchers to study by including organizational culture which is thought to influence company performance. Future research can add or replace it with other more relevant variables, so that it can be empirically tested how the relationship between corporate governance and firm performance and the organizational culture variable as a moderating variable. Future research is expected to give contribution for policy makers, company managers and investors in understanding important factors in order to create a good corporate governance.