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Corporate Governance Disclosure
and Company Performance of Hong Kong-Based
and China-Based Family-Controlled
Property Development Companies
-- Steve C C Fong and Winnie W Y Shek
The study is aimed at investigating the relationship between Corporate Governance (CG) disclosure
and financial performance of both Hong Kong-based and China-based family-controlled property
development companies listed on the Hong Kong Stock Exchange. Ten leading companies with the largest market
capitalization are studied in each category. Evaluation of the quality of CG disclosure is conducted through a checklist
of mandatory and recommended disclosures developed with reference to the Appendices 14, 23 and 16 of
Hong Kong Listing Rules about CG disclosure and financial information, the Best Practice Guidance of CG
disclosure provided by Hong Kong Institute of Certified Public Accountants (formerly Hong Kong Society of
Accountants), and the information about the specific performance evaluation indicator in the property development
companies. It is found that there is a positive relationship between CG disclosure and financial performance in
Hong Kong-based companies, especially operating profit margin and net profit margin. This study provides
evidence to support the relationship between CG disclosure and financial performance.
© 2009 IUP. All Rights Reserved.
Impact of Governance Instruments
on the Productivity of Nigerian Listed Firms
-- Adeolu O Adewuyi and Afolabi Emmanuel
Olowookere
Superior financial performance, hypothesized of better governed firms, is presumed to have its derivation
in improved productivity. Utilizing the data for 64 non-financial firms listed under the first tier
securities market of the Nigerian Stock Exchange for the period 2002 to 2006, the paper investigates the impact
of corporate governance on firms' productivity performance in Nigeria. Employing panel regression techniques,
it establishes governance measures like ownership concentration and debt-equity ratio as drivers of
firms' productivity, while the impacts on productivity of other major governance mechanisms like board size,
board independence and independent audit membership, are insignificant. However, it is suggested that caution
be exercized in relying on findings that show financial performances as governance enhanced,
as financial measures can be more easily distorted by prices, market imperfections and the choice of
accounting techniques.
© 2009 IUP. All Rights Reserved.
Ownership Structure in Greece:
Impact of Corporate Governance
-- Themistokles Lazarides,
Evaggelos Drimpetas and Koufopoulos Dimitrios
This paper analyzes ownership structure in Greece. Two measures of ownership concentration are used for
the purpose of this study. The first is the sum of equity holdings of five biggest shareholders, while the second
is the square of the first (Herfindahl index). Determination of the factors that affect ownership structure is
done using Panel Data Regression models. Stratifying variables, like law (before and after the enactment of
the corporate governance law), sector (financial or non-financial), and index ranking are used. Two main
hypotheses are tested: (i) ownership structure is affected by the quality of corporate governance and its
mechanisms, financial performance, board of directors' structure and composition and finally by the size of the firm;
and (ii) the factors that affect ownership concentration in a country like Greece are the same with the ones
that is specified in the literature for the Anglo-Saxon countries. Overall, ownership concentration in Greece
has different characteristics than the ownership structure in the Anglo-Saxon countries, which creates a
very different internal and external environment. Ownership structure is affected by the historical development
of the firm, its organizational scheme and even more by the balance of power and control within the
firm. Quality of corporate governance and mechanisms as well as external factors, like the law, index ranking,
and existence of an external market for corporate control do not seem to have any significant effect on
ownership structure.
© 2009 IUP. All Rights Reserved.
Voluntary Corporate Governance Disclosure:
A Study of Selected Companies in India
-- Reema Sharma and Fulbag Singh
This paper studies the voluntary corporate governance practices of the companies over and above the
mandatory requirements as per Clause 49 of the Listing Agreement. In order to study the voluntary governance
practices, a voluntary corporate governance disclosure index has been prepared. A total number of 40 items has
been selected from the corporate governance section of the annual report for the study.
A sample of 50 companies has been taken from four industries, viz., software, textiles, sugar and
paper. Appropriate statistical tools and techniques have been applied for the analysis. It has been observed that
the companies are following less than 50% of the items of disclosure index. Moreover, there is no
significant difference among the disclosure scores of these four industries.
© 2009 IUP. All Rights Reserved.
Product Market Competition
and Corporate Governance
-- Seema Lall
This study is an attempt at analyzing the relationship between product market competition and
corporate governance practices in Indian firms. In more precise terms, the paper studies the effect of the
independence of the board of any firm on the performance of the firm in a high and low competitive product market.
The study empirically shows, using publicly available data, that a firm in a highly competitive market is
monitored by the market forces and does not require many independent directors on its board.
© 2009 IUP. All Rights Reserved.
Corporate Governance in India: The Case of HDFC Bank
-- Kirti Ranjan Swain
This paper reviews the existing codes of Corporate Governance (CG) in India.
It analyzes the CG structures and practices in HDFC bank by using a case study methodology. It uses
both primary and secondary data for analyzing the adaptability of CG codes in the Indian context. The
primary data regarding the extent of CG practices and reporting in HDFC bank were collected from various towns
of Orissa and the secondary data were collected through various published and unpublished reports and
websites. The paper reveals that India has a good CG mechanism and disclosure practices on par with world counterparts.
© 2009 IUP. All Rights Reserved.
Do Corporates Have Social Responsibility? A Case Study of TVS Motor Company
-- M Indira and Siddaraju V G
Corporate Social Responsibility (CSR) has come a long way since its inception. According to Neubert
and Stroup (1987), popular consensus on CSR has changed from corporates' `voluntarily doing good' to
`mandated' to now `doing better by doing good'. In the present context, this paper analyzes the CSR of TVS
Motor company by following a case study method. TVS Motor company is located at Nanjanagud, Mysore
district of Karnataka. The company's disclosures suggest that it is taking up several initiatives to improve
the conditions of the underprivileged in the society and make a positive difference in their lives. In addition to
the community initiatives, TVS Company has been working with the NGOs, local authorities and
institutions, and local leaders and government agencies. This paper mainly analyzes the CSR objectives of TVS
Company, their capacity to identify social issues, implementation of strategies and changes in the strategies
after globalization, social relevance of the issues addressed by the company, and the attitude of the
decision makers in the company towards CSR.
© 2009 IUP. All Rights Reserved.
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