THE MESSAGE OF CORPORATE GOVERNANCE TO SHAREHOLDERS IN ENHANCING FIRM FINANCIAL PERFORMANCE
##plugins.themes.EpsilonTheme.article.main##
Ibrahum Ali Hossian*
The current study highlighted the importance of corporate governance in improving a company's financial performance and increasing shareholder value. Shareholders buying shares show their trust in a company's management and future outlook, emphasizing the significant impact of corporate governance structures. This study examines how corporate governance mechanisms address shareholder concerns and impact a company's financial success by aligning company goals with shareholder interests. It aims to determine how corporate governance mechanisms can be adjusted to ensure shareholders are properly rewarded while also protecting the company's long-term objectives. The study addresses both the theoretical and practical aspects of corporate governance mechanisms, assessing their impact on shareholder value through transparent communication and accountability. It stresses the importance of clearly defining company goals and strategic plans to establish a solid governance framework that can meet shareholder expectations. The study compares the broader role of corporate governance with a detailed analysis of principles that prioritize shareholder interests and needs. This study tries to underline the efficacy of corporate governance tools at leveraging financial performance and guaranteeing value for stockholders. These conceptual frameworks and practical evidence go a long way in giving insight into how corporate governance tools are supposed to make a difference toward success.
Abeysekera, A. P., & Fernando, C. S. (2020). Corporate social responsibility versus corporate shareholder responsibility: A family firm perspective. Journal of Corporate Finance, 61, 101370.
Alabdullah, T. T. Y. (2016). Agency Theory Perspective: A Quantitative Study Of Accounting Performance Measures In Emerging Economies. ICTE Proceedings, New York.
Alabdullah, T. T. Y. (2016). Are Board Size And Ownership Structure Beneficial In Emerging Markets’ Firms? Evidence from Jordan. International Journal of Management & Information Systems (IJMIS), 20(3), 87-94.
Alabdullah, T. T. Y. (2016). Corporate Governance from The Perspective of The Past and The Present and The Need to Fill an International Gap. Risk Governance & Control: Financial Markets & Institutions, 6(4).
Alabdullah, T. T. Y. (2016). The Performance of Companies and The Board’s Characteristics From the New Perspective of Manipulation Avoidance. Corporate Ownership & Control, 13(4), 279-286.
Alabdullah, T. T. Y. (2017). Compensation committee, company board attributes, and company performance: The moderating effect of leadership position. Paper presented at the 2017 Wei International Academic Conference Proceedings, July 24-27, 2017, Business and Economics.
Alabdullah, T. T. Y. (2018). The relationship between ownership structure and firm financial performance. Benchmarking: An International Journal, 25(1), 319-333.
Alabdullah, T. T. Y. (2019). Management Accounting and Service Companies' Performance: Research in Emerging Economies, Australasian Accounting, Business and Finance Journal, 13(4), 100-118.doi:10.14453/aabfj.v13i4.8.
Alabdullah, T. T. Y. (2021). Management accounting insight via a new perspective on the risk management - companies’ profitability relationship. International Journal of Intelligent Enterprise 7, In press.
Alabdullah, T. T. Y. (2021). Ownership Structure and the Failure or Success of Firm Performance: Evidence from Emerging Market; Cross-sectional Analysis. International Journal of Business and Management Invention, 10(8).
Alabdullah, T. T. Y. (2023). Capital Market Companies In The Uae: Determinants And Factors Affecting The Performance Of Listed Uae Companies. Current Advanced Research On Sharia Finance And Economic Worldwide, 3 (1), 1- 18.
Alabdullah, T. T. Y. (2023). In Light Of The Current Economic Status: Do Board Characteristics And Risk Management Committees Promote Firm Performance In Saudi Arabia?. Journal Of Humanities, Social Sciences And Business, 3 (1), 14- 30.
Alabdullah, T. T. Y. (2023). The Impact Of Financial Technology And Risk Management Practices On Corporate Financial System Profitability: Evidence From Kuwait. SocioEconomic Challenges, 7(3), 141-151.
Alabdullah, T. T. Y. (2023). The Link between Internal Control Mechanisms and Corporate Performance: A study for a New Perspective to Support Economic Growth. International Journal of Accounting and Business Society, 30 (2).
Alabdullah, T. T. Y. (2023). The Role Of Audit Committees In Omani Business Context: Do They Affect The Performance Of Non-Financial Companies. Journal Of Humanities, Social Sciences And Business, 2 (4), 643- 659.
Alabdullah, T. T. Y., Ahmed, E. R. (2019). Board Diversity and Disclosure of Corporate Social Responsibility Link: A Study in Malaysia. Journal of Adv Research in Dynamic & Control System, 11(11).
Alabdullah, T. T. Y., Ahmed, E. R., Almashhadani, M., Yousif, S. K., Almashhadani, H, A., Almashhadani, R., Putri, E. 2021. How significantly to emergingeconomies benefit from board attributes and risk management in enhancing firm profitability? Journal of accounting Science, Vol. 5, no. 1.
Alabdullah, T. T. Y., Ahmed, E. R., Mohammed Almashhadani, M, Yousif S, Almashhadani H, Almashhadani R, Putri, E (2021). How Significantly to Emerging Economies Benefit From Board Attributes and Risk Management in Enhancing Firm Profitability? Journal of Accounting Science 5(2).
Alabdullah, T. T. Y., Alfadhl, M. M. A., Yahya, S., & Rabi, A. M. A. (2014). The Role of Forensic Accounting in Reducing Financial Corruption: A Study in Iraq. International Journal of Business and Management, 9 (1), 26.
Alabdullah, T. T. Y., AL-Qallaf, A. J. M. (2023). The Impact Of Ethical Leadership On Firm Performance In Bahrain: Organizational Culture As A Mediator. Current Advanced Research On Sharia Finance And Economic Worldwide, 2(4), 482-498.
Alabdullah, T. T. Y., Awang, M. I., Sobirov, B., Multazam, M. T., & Wardana, M. D. (2023). of the International Conference on Intellectuals’ Global Responsibility (ICIGR 2022).
Alabdullah, T. T. Y., Churiyah, M., & Eksandy, A. (2023). In Light of Climate Change Threat: Does Increased Funding of Meteorological Services Offer a Solution? An Accounting Perspective. Path of Science, 9(8), 3033-3045.
Alabdullah, T. T. Y., Churiyah, M., & Ibrahim, S. (2023). The Impact Of It Governance On Promoting Firm Performancein Qatar: A Conceptual Approach. Journal Of Humanities, Social Sciences And Business, 3(1), 196-213.
Alabdullah, T. T. Y., Hussein, Z. A. A. (2023). Risk Management, Female Leadership and Project Management Performance: A study in Oman. International Journal of Scientific and Management Research, 6(6), 77-94.
Alabdullah, T. T. Y., Laadjal, A., Ries, E., & Al-Asadi, Y. A. A. (2018). Board Features and Capital Structure in Emerging Markets. Journal of Advanced Management Science, 6 (2).
Alabdullah, T. T. Y., Maryanti, E . (2021). Internal Control Mechanisms in Accounting, Management, and Economy: A review of the Literature and Suggestions of New Investigations. International Journal of Business and Management Invention, 10(9).
Alabdullah, T. T. Y., Mohamed, Z. K. (2023). Exploring The Impact Ceo Duality, Firm Size, And Board Size On Capital Structure Based On The Knowledge Management During The Covid-19 Pandemic. International Journal of Accounting, Management, Economics and Social Sciences, 1(4), 266-280.
Alabdullah, T. T. Y., Naseer, H. K. (2023). Corporate Governance Strategic Performance As A Significant Strategic Management To Promoting Profitability: A Study In Uae. Journal Of Humanities, Social Sciences And Business, 2 (4), 620- 635.
Alabdullah, T. T. Y., Yahya, S., & Ramayah, T. (2014). Corporate Governance Mechanisms and Jordanian Companies' Financial Performance. Asian Social Science,10 (22), p247.
Alabdullah, T. T. Y., Yahya, S., &Ramayah, T. (2014). Corporate Governance Development: New or Old Concept? European Journal of Business and Management, 6(7), 312-315.
Alabdullah, T. T. Y., Yahya, S., and T.Ramayah (2014b). Corporate Governance Mechanisms and Jordanian Companies’ Financial Performance. Asian Social Science 10, 247–247.
Alabdullah, T. T. Y., Yahya, S., Nor, M. I., &Majeed, F. Q. (2016). An Investigation of Corporate Governance from A New Perspective: Examining the Financial Performance of Companies and The Impact of Executive Turnover. Corporate Board: Role, Duties & Composition, 12(1).
Alabdullah, T. T. Y., Zubon, Z. W. (2023). Do Investments And Independency Influence Firm Performance In Light Of Performance Management: A Study In Kuwait. Journal Of Management, Accounting, General Finance And International Economic Issues, 2 (3), 645- 661.
Alabdullah, T. Y., SofriYahya, and Thurasamy, R. (2014c).Corporate Governance Development: New or Old Concept? European Journal of Business and Management 6, 312–315.
Alabdullah, T.T.Y. (2023). Addressing Knowledge Management Issues At University Of Houston: Overcoming Obstacles To Improve Organizational Performance. Journal Of Management, Accounting, General Finance And International Economic Issues, 3(1), 32-50.
Alabdullah, T.T.Y. (2023). How Do Sustainability Assurance, Internal Control, Audit Failures Influence Auditing Practices?. Journal of Management, Accounting, General Finance and International Economic Issues, 2 (3), 671-688.
Alabdullah, T.T.Y., Asmar, M. (2022). Under COVID-19 Pandemic Impact: Do Internal Mechanisms Play Fundamental Role in Corporations’ Outcomes. Business Ethics and Leadership, 6(1), 84-92. http://doi.org/10.21272/bel.6(1).84-92.2022
Alabdullah, T.T.Y., Churiyah, M. (2023). The Impact of Top Management Features on South Alabama Constrictions companies' Firm Performance: The Role of Board Size as a Moderator. Current Advanced Research on Sharia Finance and Economic Worldwide, 3(1), 100-126.
Alabdullah, T.T.Y., Kanaan-Jebna, A. (2023). The Mediating Role of Innovation on the Relationship between Supply Chain Management and Company Performance in the Kingdom of Bahrain. Journal of Humanities, Social Sciences and Business, 3(1), 160-176.
Alabdullah, T.T.Y., Kanaan-Jebna, Kanaan, Ahmed, E. R.(2022). The Impact Of Platforms Being Analogue In Some European Countries On Dealing With Management Issues. Russian Journal of Agricultural and Socio-Economic Sciences, Vol. 10, no 102, 89–96. doi: 10.18551/rjoas.2020-06.11.
Alam, A., Uddin, M., Yazdifar, H., Shafique, S., & Lartey, T. (2020). R&D investment, firm performance and moderating role of system and safeguard: Evidence from emerging markets. Journal of Business Research, 106, 94-105.
Alfadhl, M. M. A. F. and Alabdullah, T. T. Y. (2013). Determinants of the Managerial Behavior of Agency Cost and Its Influential Extent on Performance: A Study in Iraq. International Journal of Humanities and Social Science, 3–3.
Alfadhl, M. M. A., Alabdullah, T. T. Y. (2016). Agency Cost and Management Behavior: The Role of Performance as a Moderator. International Journal of Science and Research (IJSR), 5(1), 1858-1864.
Al-Hashimy, H. N. H., Alabdullah, T. T. Y., Ries, E., Ahmed, M. A., Nor, M. I., & Jamal, K. A. M. (2022). The Impact of Financial Management Elements and Behavioral Intention on the Financial Performance. International Journal of Scientific and Management Research, 5(12), 117-149.
AL-Hawamleh, A. (2024). Cyber resilience framework: Strengthening defenses and enhancing continuity in business security. International Journal of Computing and Digital Systems, 15(1), 1315-1331. uob.edu.bh
Almagtome, A., Khaghaany, M., & Önce, S. (2020). Corporate governance quality, stakeholders’ pressure, and sustainable development: An integrated approach. International Journal of Mathematical, Engineering and Management Sciences, 5(6), 1077. researchgate.net
Alodat, A. Y., Salleh, Z., Hashim, H. A., & Sulong, F. (2022). Corporate governance and firm performance: Empirical evidence from Jordan. Journal of Financial Reporting and Accounting, 20(5), 866-896.
Al-Saadi, A. S. A., & Khudari, M. (2024). The dynamic relationship between good governance, fiscal policy, and sustainable economic growth in Oman. Journal of Infrastructure, Policy and Development, 8(5), 3557.
Amin, H. M., Mohamed, E. K., & Hussain, M. M. (2021). Corporate governance practices and firm performance: a configurational analysis across corporate life cycles. International Journal of Accounting & Information Management, 29(5), 669-697.
Aminadav, G., & Papaioannou, E. (2020). Corporate control around the world. The Journal of finance, 75(3), 1191-1246.
Asare, B., Nuertey, D., & Poku, E. (2023). Innovation-oriented supply chain integration for structural flexibility and strategic business performance. Benchmarking: An International Journal.
Aslam, S., Rehman, R. U., & Asad, M. (2020). Linking environmental management practices to environmental performance: The interactive role of environmental audit. Pakistan Journal of Commerce and Social Sciences (PJCSS), 14(1), 99-119.
Baker, C. R., & Persson, M. E. (2021). The role of financial reporting in corporate governance. In Historical Developments in the Accountancy Profession, Financial Reporting, and Accounting Theory (pp. 67-80). Emerald Publishing Limited.
Bawakyillenuo, S., & Agbelie, I. S. K. (2021). Environmental consciousness of entrepreneurs in Ghana: How do entrepreneur types, demographic characteristics and product competitiveness count?. Sustainability, 13(16), 9139.
Becker, S. O., Rubin, J., & Woessmann, L. (2021). Religion in economic history: A survey. The handbook of historical economics, 585-639.
Ben Rejeb, W., Berraies, S., & Talbi, D. (2020). The contribution of board of directors’ roles to ambidextrous innovation: do board’s gender diversity and independence matter?. European Journal of Innovation Management, 23(1), 40-66.
Black, B. (2009). Corporate Governance and Risk Management at Unregulated Firms: Does Shareholder Value Depend on License Conditions? Journal of Corporation Law, 32(1), 1-40.
Brummel, L. (2021). Social accountability between consensus and confrontation: developing a theoretical framework for societal accountability relationships of public sector organizations. Administration & Society, 53(7), 1046-1077.
By, R. T. (2021). Leadership: In pursuit of purpose. Journal of Change Management, 21(1), 30-44.
Chatterjee, S., & Chaudhuri, R. (2022). Supply chain sustainability during turbulent environment: Examining the role of firm capabilities and government regulation. Operations Management Research, 15(3), 1081-1095.
Chhillar, D., & Aguilera, R. V. (2022). An eye for artificial intelligence: insights into the governance of artificial intelligence and vision for future research. Business & Society, 61(5), 1197-1241.
Clapp, J., & Purugganan, J. (2020). Contextualizing corporate control in the agrifood and extractive sectors. Globalizations, 17(7), 1265-1275.
Cooperrider, D., & Selian, A. (Eds.). (2021). The business of building a better world: The leadership revolution that is changing everything. Berrett-Koehler Publishers.
Costa, A. J., Curi, D., Bandeira, A. M., Ferreira, A., Tomé, B., Joaquim, C., ... & Marques, R. P. (2022). Literature review and theoretical framework of the evolution and interconnectedness of corporate sustainability constructs. Sustainability, 14(8), 4413.
DeAngelo, H. (2021). Corporate financial policy: What really matters?. Journal of Corporate Finance, 68, 101925.
DesJardine, M. R., Zhang, M., & Shi, W. (2023). How shareholders impact stakeholder interests: A review and map for future research. Journal of management, 49(1), 400-429.
Dwivedi, R., Prasad, K., Mandal, N., Singh, S., Vardhan, M., & Pamucar, D. (2021). Performance evaluation of an insurance company using an integrated Balanced Scorecard (BSC) and Best-Worst Method (BWM). Decision Making: Applications in Management and Engineering, 4(1), 33-50.
Georgakopoulos, G., Toudas, K., Poutos, E. I., Kounadeas, T., & Tsavalias, S. (2022). Capital structure, corporate governance, equity ownership and their impact on firms’ profitability and effectiveness in the energy sector. Energies, 15(10), 3625.
Guluma, T. F. (2021). The impact of corporate governance measures on firm performance: the influences of managerial overconfidence. Future Business Journal, 7(1), 50.
Gugler, K., & Yurtoglu, B. B. (2003). Corporate governance and dividend pay-out policy in Germany. European economic review, 47(4), 731-758.
Hasan, A., Aly, D., & Hussainey, K. (2022). Corporate governance and financial reporting quality: a comparative study. Corporate Governance: The International Journal of Business in Society, 22(6), 1308-1326.
Hichri, A. (2022). Corporate governance and integrated reporting: evidence of French companies. Journal of Financial Reporting and Accounting, 20(3/4), 472-492.
Jan, A. A., Lai, F. W., & Tahir, M. (2021). Developing an Islamic Corporate Governance framework to examine sustainability performance in Islamic Banks and Financial Institutions. Journal of Cleaner Production, 315, 128099.
Jebna, A. K. K., & Baharudin, A. S. (2013). Factors affecting small and medium enterprises success: An exploratory study. Jurnal Teknologi, 64(3).
Jebna, A. K., & Baharudin, A. S. (2014, November). The impact of market orientation on manufacturing SME performance in Malaysia with the moderating effect of e-commerce. In Proceedings of the 6th International Conference on Information Technology and Multimedia (pp. 169-172).
Jebna, K. A., & Baharudin, A. S. (2015). The impact of entrepreneurial orientation on manufacturing SME performance with the contingent effect of e-commerce in Malaysia. Advances in Environmental Biology, 9(5), 24-27.
Jebran, K., & Chen, S. (2023). Can we learn lessons from the past? COVID‐19 crisis and corporate governance responses. International Journal of Finance & Economics, 28(1), 421-429.
Kanaan-Jebna, A., & Baharudin, A. S. (2015). The contingent impact of inter-organization communication on the relationships between market and entrepreneurial orientations and manufacturing SME performance in Malaysia. Journal of Scientific Research and Development, 2(10), 66-77.
Kanaan-Jebna, A., Baharudi, A. S., & Alabdullah, T. T. Y. (2022). Entrepreneurial Orientation, Market Orientation, Managerial Accounting and Manufacturing SMEs Satisfaction. Journal of Accounting Science, 6(1), 1-14.
Kanaan-Jebna, J. M. A., Alabdullah, T. T. Y., Ahmed, E. R., & Ayyasamy, R. K. (2022). Firm Performance and the Impact of Entrepreneurial Education and Entrepreneurial Competencies.
Karim, A., Syamsuddin, I., Jumarding, A., & Amrullah, A. (2022). The Effect of Gender Independence and Leadership Style on Audit Quality in Makassar Public Accounting Offices. International Journal of Social Science Research and Review, 5(7), 114-126.
Kong, Y., Famba, T., Chituku-Dzimiro, G., Sun, H., & Kurauone, O. (2020). Corporate governance mechanisms, ownership and firm value: evidence from listed Chinese firms. International Journal of Financial Studies, 8(2), 20.
Larcker, D., & Tayan, B. (2020). Corporate governance matters. FT Press.
Logan, N. (2023). Corporate personhood and corporate responsibility to race. In Encyclopedia of Business and Professional Ethics. Cham: Springer International Publishing, pp. 419-422.
La Porta, R., Lopez-de-Silanes, F., Shleifer, A., & Vishny, R. (2000). Investor protection and corporate governance. Journal of financial economics, 58(1-2), 3-27.
Ludwig, P., & Sassen, R. (2022). Which internal corporate governance mechanisms drive corporate sustainability?. Journal of Environmental Management, 301, 113780.
Lund, D. S., & Pollman, E. (2021). The corporate governance machine. Colum. L. Rev., 121, 2563.
Miloud, T. (2022). Corporate governance and the capital structure behavior: empirical evidence from France. Managerial Finance, 48(6), 853-878.
Mishra, A. K., Jain, S., & Manogna, R. L. (2021). Does corporate governance characteristics influence firm performance in India? Empirical evidence using dynamic panel data analysis. International Journal of Disclosure and Governance, 18(1), 71-82.
Pernell, K. (2020). Market governance, financial innovation, and financial instability: lessons from banks’ adoption of shareholder value management. Theory and Society, 49(2), 277-306.
Puni, A., & Anlesinya, A. (2020). Corporate governance mechanisms and firm performance in a developing country. International Journal of Law and Management, 62(2), 147-169.
Rabaya, A. J., & Saleh, N. M. (2022). The moderating effect of IR framework adoption on the relationship between environmental, social, and governance (ESG) disclosure and a firm's competitive advantage. Environment, Development and Sustainability, 24(2), 2037-2055.
Raimo, N. (2021). Integrated reporting: State of play, theoretical underpinnings and empirical insights: The role of corporate governance mechanisms.
Ramirez, J. G. C. (2024). The power of planning: how business plans drive effective management strategies. Integrated Journal of Science and Technology, 1(3).
Rashid, M. M. (2020). Ownership structure and firm performance: the mediating role of board characteristics. Corporate Governance: The International Journal of Business in Society, 20(4), 719-737.
Sahu, A. K., Padhy, R. K., & Dhir, A. (2020). Envisioning the future of behavioral decision-making: A systematic literature review of behavioral reasoning theory. Australasian Marketing Journal, 28(4), 145-159.
Suib, F. H., Sharmin, T., Afruza, A. M., Dzulkifli, N. N. M., Zahirul, I. M., & Nazri, F. M. (2024). Navigating Turbulence: The Resilient Journey Of Rz Aviation In The Face Of Global Challenges. IIUM Journal of Case Studies in Management, 15(2).
Unkovic, M. C. (2020). When Dodge v. Ford Meets Ben & Jerry’s: Reconciling 100 Years of Bad Precedent with the Reality of Modern Business. University of California, Berkeley.
von Schlippe, A., Rüsen, T., & Groth, T. (2021). The two sides of the business family. Governance and strategy across generations.
Wu, W., Liang, Z., & Zhang, Q. (2022). Technological capabilities, technology management and economic performance: the complementary roles of corporate governance and institutional environment. Journal of Knowledge Management, 26(9), 2416-2439.
Zaman, R., Jain, T., Samara, G., & Jamali, D. (2022). Corporate governance meets corporate social responsibility: Mapping the interface. Business & Society, 61(3), 690-752.
Zumente, I., & Bistrova, J. (2021). ESG importance for long-term shareholder value creation: Literature vs. practice. Journal of Open Innovation: Technology, Market, and Complexity, 7(2), 127.
