CONTEMPORARY RESEARCH IN INDIA (ISSN ): VOL. 7: ISSUE: 2 (2017) Received: 27/05/2017 Edited: 03/06/2017 Accepted: 10/06/2017

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1 QUANTITATIVE MODELS OF CORPORATE GOVERNANCE THROUGH BIBLIOMETRIC ANALYSIS Pallavi Vartak, Ph.D., Research Scholar, Symbiosis International University Assistant Professor, Vivekanand Education Society Institute of Management Research & Studies, Chembur, Mumbai Received: 27/5/217 Edited: 3/6/217 Accepted: 1/6/217 Abstract: Corporate governance is a term that refers broadly to the rules, processes, or laws by which businesses are operated, regulated, and controlled. The term can refer to internal factors defined by the officers, stockholders or constitution of a corporation, as well as to external forces such as consumer groups, clients, and government regulations. Consideration to society needs it is essential while developing corporate governance policies. As corporate governance has transitioned from an emerging topic to a growing research area, there is a need to classify different types of research and examine the general trends of this research area. This helps in identify fertile research streams with great potential for further examination. This paper presents a systematic review of the quantitative and analytical models for corporate governance of Public limited company. We use bibliometric analysis tools to generate insights that have not been captured in the previous reviews on the topic. We complete a systematic mapping of the literature that identifies the key research topics, interrelationships and generative research areas that have provided the field with the foundational knowledge, concepts, theories, tools and techniques. The article concludes that Quantitative analysis of Corporate Governance is expanding rapidly and European Journals are the more popular research outlets for the dissemination of the knowledge developed by researcher in United States and Asia. Key words: Corporate governance, Biblimetric analysis, Quantitative analysis. Introduction to Corporate Governance Corporate governance broadly refers to the mechanisms, processes and relations by which corporations are controlled and directed. Governance structures and principles identify the distribution of rights and responsibilities among different participants in the corporation such as the board of directors, managers, shareholders, creditors, auditors, regulators, and other stakeholders and includes the rules and procedures for making decisions in corporate affairs. Governance mechanisms include monitoring the actions, policies, practices, and decisions of corporations, their agents, and affected stakeholders. Corporate governance practices are affected by attempts to align the interests of stakeholders. Interest in the corporate governance practices of modern corporations, particularly in relation to accountability, increased following the high-profile collapses of a number of large corporations most of which involved accounting fraud; and financial crisis. Stakeholders Interest In contemporary business corporations, the main external stakeholder groups are shareholders, debtholders, trade creditors and suppliers, customers, and communities affected by the corporation's activities. Internal stakeholders are the board of directors, executives, and other employees. Much of the contemporary interest in corporate governance is concerned with mitigation of the conflicts of interests between stakeholders. In large firms where there is a separation of ownership and management and no controlling shareholder, the principal agent issue arises between uppermanagement which may have very different interests, and by definition considerably more information, than shareholders. An important theme of governance is the nature and extent of corporate accountability. A related discussion at the macro level focuses on the effect of a corporate governance system on economic efficiency, with a strong 349

2 35 emphasis on shareholders' welfare. This has resulted in a literature focussed on economic analysis. The Securities and Exchange Board of India Committee on Corporate Governance defines corporate governance as the "acceptance by management of the inalienable rights of shareholders as the true owners of the corporation and of their own role as trustees on behalf of the shareholders. It is about commitment to values, about ethical business conduct and about making a distinction between personal & corporate funds in the management of a company. Corporate governance in India A company that has good corporate governance has a much higher level of confidence amongst the shareholders associated with that company. Active and independent directors contribute towards a positive outlook of the company in the financial market, positively influencing share prices. Corporate Governance is one of the important criteria for foreign institutional investors to decide on which company to invest in. The corporate practices in India emphasize the functions of audit and finances that have legal, moral and ethical implications for the business and its impact on the shareholders. The Indian Companies Act of 213 introduced innovative measures to appropriately balance legislative and regulatory reforms for the growth of the enterprise and to increase foreign investment, keeping in mind international practices. The rules and regulations are measures that increase the involvement of the shareholders in decision making and introduce transparency in corporate governance, which ultimately safeguards the interest of the society and shareholders. The primary focus and contribution of this paper include the following. First we review over 2 Corporate governance quantitative and formal modelling paper. Literature Review 1. Margaret.M.at.el (28) After studying this research paper we concludes that participating directors were convinced that a majority ofnonexecutive directors (NEDs) provided a safeguard for a balance of power in the board/management relationship. The difference between NEDs, who are also independent directors, and NEDs who are not independent, was highlighted as an important distinction. The capacity for board members to think independently was seen to be enhanced, but not necessarily ensured, with majority membership of NEDs. However, most of independent minds expressing multiple points of view was perceived to reduce the board room hazard of group think. 2. Charlie.W. at el, (21). This study found that there has been widespread adoption of the recommended governance structures. However, there is no clear relationship between governance structures and corporate performance. This raised questions about the most effective type of governance mechanism and whether or not the prescriptive recommendations of Cadbury should be replaced with a more flexible approach. 3. Ferdinand. T. at el(211)the purpose of this paper was to investigate whether independent directors and audit committees that are chaired by an independent director as required by the Jakarta Stock Exchange (JSX) affect the quality of reported earnings.the paper used both total discretionary accruals (DA) and earnings response coefficient (ERC) as the proxies for earnings quality. It runs multivariate regressions to examine the improvements in earnings quality after the firms meet the JSX requirements. It was found that both DA and ERC improve significantly after firms acquire independentdirectors and independent audit committees. Lower DA occurs in the first and second years after the firms meet the JSX requirements. There was an improvement in ERC in the first years after firms met the requirements. 4. Silvia. R (21). The purpose of this paper was to discuss the problems of auditor independence that arise by auditors being hired and paid by the

3 auditee, and by SOX requiring rotation of only the lead audit partner. The paper takes the form of a discussion paper, exploring alternatives to overcome the mentioned issues of independence. The paper presents an alternative where auditors are hired and paid by an external third party. Besides this change, it also proposes a quality control system including the extension of the CPE program. A private entity in representation of the investors (e.g. Stock exchange) and an oversight board (e.g. PCAOB) as alternatives to hire, pay and control audit quality are discussed. 5. Steven T. P. (25) The purpose of this paper was to determine whether or not outside independent directors strengthen corporate boards. He has examines the five areas within corporate boards of directors, including board composition, CEO duality, audit committees, compensation committees and nominating committees, are examined. It is analyzed that reached is that outside independent directors do appear to strengthen corporate boards; however, more needs to be done to reestablish the market s confidence in corporate America s ability to effectively govern itself. 6. L.A.A. Van den Berghe at el(25)the main purpose of this paper was to examine the issue of independence to improve the board effectiveness. The focus was mainly on the monitoring role, and to a lesser extent on the strategic role of the board of directors. A comparison of the definitions of independence provided by the corporate governance codes and recommendations reveals that they approach the concept of independence mainly from a formal point of view, where independence equals being in a position free of any possible conflicts of interest. It is stated that this approach does not capture all the aspects of independence and that independence cannot be an end in itself. 7. Iti. B.(29)The paper explored the theoretical and historical link to the structure and functioning of the board of directors with special emphasis of the norms established by the Security Exchange Board of India (SEBI). It has been found that Demands for greater transparency in the way Indian companies do business. The reforms, ordained by the SEBI, are laid out in amendments to Clause 49 of the companies listing agreement with Indian stock exchanges, a section that pertains to corporate governance. Among the requirements are:more independent directors on boards and audit committees; a code of conduct for board members; a larger role for the audit committee; mandatory risk assessments and certification by the chief executive officer and chief financial officer of the effectiveness of internal accounting controls. Research Methods Literature review aim to map and evaluate the body of literature and identify potential research gap highlighting the boundaries of knowledge. Systematic literature reviews are completed through an interactive process of defining appropriate search keywords, searching the literature and completing the analysis. Systematic reviews differ from traditional narrative reviews in that they employ a replicable, scientific and transparent process that minimizes the selection bias through exhaustive literature search. 1. Defining the appropriate search terms: We design a two level keyword assembly structure that aims to accommodate a broad range of search terms for capturing published robust and flexible corporate Governance models. Table 1: shows year wise paper publication on corporate Governance. Title Corporate governance No of results Year Publication Year Publication

4 Fig 1: shows the publishing trend in the field of by plotting the quantity of publications from the year 1973 to 217. A geometric growth in the number of publications can be observed especially after 27. Only it has decreased in 216. Table 2: It shows the number of journals has published the papers on Corporate governance. Source Title Corporate Ownership And Control 787 No. of Results = International Journal Of Applied Business And Economic Research 3 Corporate Governance Journal Of Business Ethics Journal Of Corporate Finance International Journal Of Managerial Finance Managerial And Decision Economics Communications In Computer And Information Science Journal Of Management And Governance Corporate Governance Oxford International Review Of Law And Economics European Journal Of Law And Economics Journal Of Financial Economics 168 Investment Management And Financial 27 Innovations Managerial Auditing Journal Journal Of Banking And Finance Journal Of Accounting Auditing And Finance Journal Of International Accounting Auditing

5 And Taxation Corporate Governance Bingley 133 Risk Governance And Control Financial Markets 27 And Institutions Corporate Board Role Duties And Composition 115 Business Lawyer 26 Strategic Management Journal 11 Financial Management 26 International Journal Of Business Governance And Ethics 14 Journal Of Management 26 Corporate Governance The International 85 Critical Studies On Corporate Responsibility 25 Journal Of Business In Society Governance And Sustainability International Journal Of Disclosure And 83 Journal Of Accounting Research 25 Governance Pacific Basin Finance Journal 79 Journal Of Contemporary Accounting And 25 Economics European Business Organization Law Review 73 Research In Accounting In Emerging Economies 25 Journal Of Applied Business Research 69 Australian Accounting Review 24 Emerging Markets Finance And Trade 66 Journal Of Economics And Business 24 Accounting And Finance 65 Management Research Review 24 Journal Of Finance 64 Academy Of Management Journal 23 Journal Of Business Research 63 Accounting Research Journal 23 International Journal Of Law And Management 6 Asian Social Science 23 Journal Of Business Finance And Accounting 57 Harvard Business Review 23 Management Decision 56 International Journal Of Human Resource 23 Management Social Responsibility Journal 54 Socio Economic Review 23 Journal Of Accounting And Public Policy 53 University Of Pennsylvania Law Review 23 Business History 51 Corporate Social Responsibility And 22 Environmental Management Advances In Financial Economics 5 International Journal Of Managerial And 22 Financial Accounting Corporate Governance An International Review 5 Journal Of Institutional And Theoretical 22 Economics Journal Of Accounting And Economics 49 Asia Pacific Business Review 21 Review Of Quantitative Finance And 49 European Accounting Review 21 Accounting Asia Pacific Journal Of Management 48 Journal Of Comparative Economics 21 Journal Of Management Studies 48 British Journal Of Management 2 Accounting Review 45 International Business Management 2 Review Of Financial Studies 43 Journal Of Economic Behavior And 2 Organization European Financial Management 42 Journal Of Interdisciplinary Economics 2 International Journal Of Accounting 42 Journal Of Law And Society 2 International Research Journal Of Finance And 42 Journal Of Real Estate Finance And Economics 2 Economics British Accounting Review 41 Quarterly Review Of Economics And Finance 2 Emerging Markets Review 4 University Of Illinois Law Review 2 Business Horizons 39 Administrative Science Quarterly 19 International Journal Of Economics And 39 China Economic Review 19 Financial Issues International Review Of Financial Analysis 39 European Journal Of Economics Finance And 19 Administrative Sciences Asia Pacific Journal Of Financial Studies 38 Review Of Accounting Studies 19 Contemporary Accounting Research 38 Review Of Managerial Science 19 International Review Of Economics And 38 Sustainability Accounting Management And

6 Finance Journal Of Financial And Quantitative Analysis Critical Perspectives On Accounting Journal Of International Business Studies Review Of Accounting And Finance Applied Economics Policy Journal Accounting Organizations And Society Advanced Science Letters Australian Journal Of Management Business And Society Review International Journal Of Auditing Auditing 36 Journal Of Business Economics And Management Business And Society Journal Of Multinational Financial Management Business Ethics Quarterly Journal Of Empirical Finance Journal Of Financial Intermediation Journal Of International Financial Management And Accounting Mediterranean Journal Of Social Sciences Problems And Perspectives In Management Research In International Business And Finance Oxford Review Of Economic Policy Abacus Actual Problems Of Economics Accounting Auditing And Accountability 33 Applied Economics Letters 17 Journal Applied Financial Economics 33 Asian Academy Of Management Journal Of 17 Asian Review Of Accounting European Journal Of Finance International Journal Of Accounting And Performance Evaluation Accounting And Finance 33 Columbia Law Review 33 Family Business Review Auditing 33 Journal Of Financial Crime Journal Of Applied Accounting Research Long Range Planning Strategic Direction Accounting And Business Research Advances In Accounting Economics Of Transition European Management Journal Journal Of Business Strategy Journal Of World Business Organization Science Business Strategy And The Environment International Business Review International Finance Review Journal Of Cleaner Production Journal Of Management And Organization Accounting Horizons Fig 2: Corporate Ownership and Control, corporate Governance, Business ethics, Journal of corporate finance have wide range of Papers publication on this specific topic. The initial statistics also show that 144journals have contributed to the publications of those 769 papers. 354

7 Fig 3: Total 158 authors have written papers on the same topic. This figure topic. papers on Corporate Governance. Everybody has written more than 9 shows top 15 authors who has written maximumm papers on the same Fig 4: shows the comparison of 15 affiliations. The top contributing organizations and the quantity of published papers are shown in table 4. It demonstrates that Corporate governance has attracted organizations and research centers around the globe. 355

8 Fig 5: shows the published Papers in Countries where the United states is having more than 45 published papers followed by United Kingdom. Many countries in the world have only one document related to this research. Now we are talking about the more detailed research about conference governance which are published in the journals. papers of Corporate Table 6 shows the 1429 papers written on the topic of Corporate Governancee in the conferences according to calendar year. Year Res. Paper Year Res. Paper

9 Fig 6: shows that in the year 211, total 238 papers are presented and published in the conferences followed by 21. In the year 216 only 76 papers are published. Conclusions and Direction for future research Corporate governance has established as an important research area. The increasing number of publications in this area confirms this trend. We have used bibliometric analysis tools to analyze CG literature, examine the evolution of research area and identify the emerging trends. Adopting different objective measures, our study generated the following results that can help new researchers to establish their research agenda in this field. First we have identified the contributions provided by researchers and universities in different regions and countries. Secondly we have identifies research trends in different streams of research. This trends can help to identify the streams that may have matured or become saturated and those that are gaining momentum. The following major conclusions can be drawn from this study on quantitative Corporate Governance research: 1. A frequency analysis showed that quantitative, analytical and formal modelling of CG research output is growing rapidly since Most research is conducted by researcher at Universities located in the United States, United Kingdom, Australia, China and Canada. 3. Most research Articles are published in Corporate Ownership and Control, Corporate Governance, Journal for Business Ethics and Journal of Corporate finance. Using the actual citation observed in CG literature our bibliometric analysis enabled us to identify influencial articles and researcher in an objective manner. However this approach has limitations that deserve the further investigations. First the keyword structure was designed through a number of trial to ensure the most effective and feasible search space. However there may be some related works that this keyword structure did not capture because we used general modelling keywords and not specific technique and tools in the keyword search. By including more specific and additional keywords, we could generate a larger pool of papers. Therefor there is an opportunity further research as the network analysis software is further developed. References 1. Margaret McCabe Margaret Nowak, (28),"The independent director on the board of company directors", Managerial Auditing Journal, Vol. 23 Iss 6 pp

10 2. Charlie Weir David Laing, (21),"Governance structures, director independence and corporate performance in the UK", European Business Review, Vol. 13 Iss 2 pp Ferdinand T. SiagianElokTresnaningsih, (211),"The impact of independent directors and independent audit committees on earnings quality reported by Indonesian firms", Asian Review of Accounting, Vol. 19 Iss 3 pp Silvia Romero, (21),"Auditor independence: third party hiring and paying auditors", EuroMed Journal of Business, Vol. 5 Iss 3 pp Steven T. Petra, (25),"Do outside independent directors strengthen corporate boards?", Corporate Governance: The international journal of business in society, Vol. 5 Iss 1 pp L.A.A. Van den Berghe Tom Baelden, (25),"The complex relation between director independence and board effectiveness", Corporate Governance: The international journal of business in society, Vol. 5 Iss 5 pp Teresa M. Pergola Gilbert W. Joseph, (211),"Corporate governance and board equity ownership", Corporate Governance: The international journal of business in society, Vol. 11 Iss 2 pp Iti Bose, (29),"Corporate governance and law-role of independent directors: theory and practice in India", Social Responsibility Journal, Vol. 5 Iss 1 pp DoguiKouakou Olivier Boiral Yves Gendron, (213),"ISO auditing and the construction of trust in auditor independence", Accounting, Auditing & Accountability Journal, Vol. 26 Iss 8 pp Curtis Clements John D. Neill Paul Wertheim, (215),"Multiple directorships, industry relatedness, and corporate governance effectiveness", Corporate Governance, Vol. 15 Iss 5 pp Diana Mostafa Mohamed Magda HussienHabib, (213),"Auditor independence, audit quality and the mandatory auditor rotation in Egypt", Education, Business and Society: Contemporary Middle Eastern Issues, Vol. 6 Iss 2 pp Belinda Rachael Williams Simone Bingham Sonia Shimeld, (215),"Corporate governance, the GFC and independent directors", Managerial Auditing Journal, Vol. 3 Iss 4/5 pp