Corporate governance effectiveness and firm performance in Libya: Moderating effect of shareholder activism

Corporate governance is the mechanism by which companies are directed and made accountable to shareholders. The Libyan Corporate Governance Code 2007 determines the mechanisms of corporate governance and the role of shareholders in improving governance policies. This study investigated the moderatin...

Full description

Saved in:

Bibliographic Details
Main Author:	Ali Mohamed, Albakoush
Format:	Thesis
Language:	eng eng eng eng
Published:	2020
Subjects:	HD58.9 Organizational Effectiveness.
Online Access:	https://etd.uum.edu.my/9487/1/s95836_01.pdf https://etd.uum.edu.my/9487/2/s95836_02.pdf https://etd.uum.edu.my/9487/3/s95836_references.docx https://etd.uum.edu.my/9487/4/permission%20to%20deposit-95836.pdf
Tags:	Add Tag No Tags, Be the first to tag this record!

id	my-uum-etd.9487
record_format	uketd_dc
spelling	my-uum-etd.94872022-06-12T07:07:46Z Corporate governance effectiveness and firm performance in Libya: Moderating effect of shareholder activism 2020 Ali Mohamed, Albakoush Ishak, Zuaini Othman Yeop Abdullah Graduate School of Business Othman Yeop Abdullah Graduate School of Business HD58.9 Organizational Effectiveness. Corporate governance is the mechanism by which companies are directed and made accountable to shareholders. The Libyan Corporate Governance Code 2007 determines the mechanisms of corporate governance and the role of shareholders in improving governance policies. This study investigated the moderating effect of shareholder activism on the relationship between corporate governance effectiveness and firm performance. The finding provides evidence that shareholder activism can be considered as a corporate governance tool to enhance the performance of listed companies. A population of 64 companies based on the purposive sampling technique was used. Linear regression analysis was used to determine whether a relationship exists. Three models were developed based on the agency theory, the steward theory and the resource dependence theory. Model 1 aimed to determine the impact of board effectiveness and governance committee effectiveness on firm performance. Model2 designed to investigate the impact of corporate governance effectiveness on firm performance. In addition, shareholder activism was used as a moderating variable on this relationship. Model 3 used to determine the impact of minority shareholders on the board and private ownership on firm performance. The results support the notion that shareholder activism moderates the association between corporate governance effectiveness and firm performance. They also confirm the influence of the effectiveness of the audit committee and the nomination & compensation committee on the firm’s performance. However, the effectiveness of the board and the monitoring committees has negative effects on firm performance. This study also reinforces the positive influence of the minority shareholder in the board and the positive effect of private ownership on firm performance. In conclusion, the study provides empirical evidence for the positive impact of compliance with the Libyan corporate governance code 2007 on firm performance. The shareholder activism moderates positively this relationship between the corporate governance effectiveness and firm performance. 2020 Thesis https://etd.uum.edu.my/9487/ https://etd.uum.edu.my/9487/1/s95836_01.pdf text eng public https://etd.uum.edu.my/9487/2/s95836_02.pdf text eng public https://etd.uum.edu.my/9487/3/s95836_references.docx text eng public https://etd.uum.edu.my/9487/4/permission%20to%20deposit-95836.pdf text eng staffonly other doctoral Universiti Utara Malaysia
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng eng eng
advisor	Ishak, Zuaini
topic	HD58.9 Organizational Effectiveness.
spellingShingle	HD58.9 Organizational Effectiveness. Ali Mohamed, Albakoush Corporate governance effectiveness and firm performance in Libya: Moderating effect of shareholder activism
description	Corporate governance is the mechanism by which companies are directed and made accountable to shareholders. The Libyan Corporate Governance Code 2007 determines the mechanisms of corporate governance and the role of shareholders in improving governance policies. This study investigated the moderating effect of shareholder activism on the relationship between corporate governance effectiveness and firm performance. The finding provides evidence that shareholder activism can be considered as a corporate governance tool to enhance the performance of listed companies. A population of 64 companies based on the purposive sampling technique was used. Linear regression analysis was used to determine whether a relationship exists. Three models were developed based on the agency theory, the steward theory and the resource dependence theory. Model 1 aimed to determine the impact of board effectiveness and governance committee effectiveness on firm performance. Model2 designed to investigate the impact of corporate governance effectiveness on firm performance. In addition, shareholder activism was used as a moderating variable on this relationship. Model 3 used to determine the impact of minority shareholders on the board and private ownership on firm performance. The results support the notion that shareholder activism moderates the association between corporate governance effectiveness and firm performance. They also confirm the influence of the effectiveness of the audit committee and the nomination & compensation committee on the firm’s performance. However, the effectiveness of the board and the monitoring committees has negative effects on firm performance. This study also reinforces the positive influence of the minority shareholder in the board and the positive effect of private ownership on firm performance. In conclusion, the study provides empirical evidence for the positive impact of compliance with the Libyan corporate governance code 2007 on firm performance. The shareholder activism moderates positively this relationship between the corporate governance effectiveness and firm performance.
format	Thesis
qualification_name	other
qualification_level	Doctorate
author	Ali Mohamed, Albakoush
author_facet	Ali Mohamed, Albakoush
author_sort	Ali Mohamed, Albakoush
title	Corporate governance effectiveness and firm performance in Libya: Moderating effect of shareholder activism
title_short	Corporate governance effectiveness and firm performance in Libya: Moderating effect of shareholder activism
title_full	Corporate governance effectiveness and firm performance in Libya: Moderating effect of shareholder activism
title_fullStr	Corporate governance effectiveness and firm performance in Libya: Moderating effect of shareholder activism
title_full_unstemmed	Corporate governance effectiveness and firm performance in Libya: Moderating effect of shareholder activism
title_sort	corporate governance effectiveness and firm performance in libya: moderating effect of shareholder activism
granting_institution	Universiti Utara Malaysia
granting_department	Othman Yeop Abdullah Graduate School of Business
publishDate	2020
url	https://etd.uum.edu.my/9487/1/s95836_01.pdf https://etd.uum.edu.my/9487/2/s95836_02.pdf https://etd.uum.edu.my/9487/3/s95836_references.docx https://etd.uum.edu.my/9487/4/permission%20to%20deposit-95836.pdf
_version_	1747828606189436928

Corporate governance effectiveness and firm performance in Libya: Moderating effect of shareholder activism

Similar Items