An Integrated Corporate Governance Framework and Financial Performance in South African Listed Corporations

Collins Ntim

MPRA Paper from University Library of Munich, Germany

Abstract: This paper investigates the relationship between an integrated corporate governance (CG) index and financial performance using a sample of 169 South African (SA) listed corporations between 2002 and 2007. We find a statistically significant and positive association between a broad set of good CG practices and financial performance. In a series of sensitivity analyses, we find that our results are robust to endogeneity, different financial performance proxies, alternative CG weighting scheme and firm-level fixed-effects. We further distinctively examine the link between complying with SA context specific stakeholder CG provisions and financial performance. In line with political cost and resource dependence theories, our results reveal a statistically significant and positive nexus between compliance with stakeholder CG provisions and financial performance.

Keywords: corporate governance; corporate financial performance; affirmative action and stakeholder provisions; King II and South Africa; endogeneity (search for similar items in EconPapers)
JEL-codes: G32 G34 G38 (search for similar items in EconPapers)
Date: 2013-04
New Economics Papers: this item is included in nep-afr and nep-eff
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

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Journal Article: An Integrated Corporate Governance Framework and Financial Performance in South African-Listed Corporations (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:45805

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