International Journal of Management and Applied Science (IJMAS)
.
current issues
Volume-6,Issue-5  ( May, 2020 )
Past issues
  1. Volume-6,Issue-5  ( May, 2020 )
  2. Volume-6,Issue-4  ( Apr, 2020 )
  3. Volume-6,Issue-3  ( Mar, 2020 )
  4. Volume-6,Issue-2  ( Feb, 2020 )
  5. Volume-6,Issue-1  ( Jan, 2020 )
  6. Volume-5,Issue-12  ( Dec, 2019 )
  7. Volume-5,Issue-11  ( Nov, 2019 )
  8. Volume-5,Issue-10  ( Oct, 2019 )
  9. Volume-5,Issue-9  ( Sep, 2019 )
  10. Volume-5,Issue-8  ( Aug, 2019 )

Statistics report
Aug. 2020
Submitted Papers : 80
Accepted Papers : 10
Rejected Papers : 70
Acc. Perc : 12%
Issue Published : 75
Paper Published : 4412
No. of Authors : 9071
  Journal Paper




Paper Title :
Do Corporate Governance Variables Predict Corporate Failure: Evidence from an Emerging Economy

Author :Randika, R.W.M.K.M; Wijekoon, W.M.H. N; Lakshan, A.M. I

Article Citation :Randika ,R.W.M.K.M; Wijekoon ,W.M.H. N; Lakshan ,A.M. I , (2019 ) " Do Corporate Governance Variables Predict Corporate Failure: Evidence from an Emerging Economy " , International Journal of Management and Applied Science (IJMAS) , pp. 33-40, Volume-5,Issue-10

Abstract : The study aims to investigate the usefulness of corporate governance variables in predicting corporate failure of listed companies in Sri Lanka. Fifty-six matched pairs of failed and non-failed companies listed in the Colombo Stock Exchange in Sri Lanka over the period from 2008 to 2017 were used as the sample of the study. Logistic regression was employed to test the hypotheses of the study. Six corporate governance variables namely board size, CEO duality, outside directors, presence of audit committee, director’s remuneration, and foreign ownership were used for prediction of corporate failure. The results of the study reveal that CEO duality is positively related with the likelihood of corporate failure. This means that CEO duality is more practiced in the failed companies than in the non-failed companies. Results also indicate that outside director ratio and director remuneration have negative effects on the probability of corporate failure. It is therefore evident that increase of the outside directors and director remuneration lead to decrease the probability of corporate failure. However, other corporate governance variables such as board size, presence of audit committee and foreign ownership appear to be unrelated with the failure status. Results of this study can assist investors, managers, shareholders, financial institutions, auditors and regulatory agents in Sri Lanka and other countries to forecast corporate failure of listed companies in making decisions. Keywords–CEO Duality; Foreign Ownership; Logistic Regression; Outside Directors; Sri Lanka

Type : Research paper


Copyright: © Institute of Research and Journals

| PDF |
Viewed - 33
| Published on 2019-12-28
   
   
IRAJ Other Journals
IJMAS updates
IJMAS -THANK YOU ALL FOR CONTRIBUTING YOUR PAPER TO IJMAS DEC ISSUE. ALL AUTHORS ARE REQUESTED TO GET THEIR HARD COPY NOW.
The Conference World
Facebook

JOURNAL SUPPORTED BY