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...

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Main Author: Ali Mohamed, Albakoush
Format: Thesis
Language:English
English
English
English
Published: 2020
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Online Access:https://etd.uum.edu.my/9487/1/s95836_01.pdf
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spelling my.uum.etd.94872022-06-12T07:07:46Z https://etd.uum.edu.my/9487/ Corporate governance effectiveness and firm performance in Libya: Moderating effect of shareholder activism Ali Mohamed, Albakoush 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 NonPeerReviewed text en https://etd.uum.edu.my/9487/1/s95836_01.pdf text en https://etd.uum.edu.my/9487/2/s95836_02.pdf text en https://etd.uum.edu.my/9487/3/s95836_references.docx text en https://etd.uum.edu.my/9487/4/permission%20to%20deposit-95836.pdf Ali Mohamed, Albakoush (2020) Corporate governance effectiveness and firm performance in Libya: Moderating effect of shareholder activism. Doctoral thesis, Universiti Utara Malaysia.
institution Universiti Utara Malaysia
building UUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Utara Malaysia
content_source UUM Electronic Theses
url_provider http://etd.uum.edu.my/
language English
English
English
English
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
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
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
https://etd.uum.edu.my/9487/
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score 13.154949