Impact of Corporate Governance Practices on the Financial Results of Manufacturing Joint Ventures Dire Dawa

Mikiyas Nigussie Jobir

doi:doi:10.11648/j.hep.20230803.12

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Impact of Corporate Governance Practices on the Financial Results of Manufacturing Joint Ventures Dire Dawa

Mikiyas Nigussie Jobir

Published in International Journal of Health Economics and Policy (Volume 8, Issue 3)

Received: 10 March 2023 Accepted: 29 June 2023 Published: 8 July 2023

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Abstract

This study focused on the impact of corporate governance on the financial performance of manufacturing companies in Dire Dawa, Ethiopia over a 13-year period from 2007 to 2019. As a result, there was a lack of documented literature. The overall purpose of this study was to examine the impact of corporate his governance practices on the financial performance of Dire Dawa limited liability companies. The research design used in this study aims to clarify the causal relationship between the attributes of corporate governance and the variables of corporate performance (ROE) in the manufacturing industry. Research design. The dependent variable used to measure the financial performance of manufacturing companies is return on equity. The researcher considered five public companies in the study, and the total number of public manufacturing companies was obtained from his ERCA subsidiary, Dire Dawa. Board information was obtained through a structured questionnaire as directors or board secretaries are well positioned to express their views on corporate governance issues. Budgets were collected from all production companies. This study used a panel data analysis method to draw conclusions about the study. The survey found an average board size of 8 members, an average management experience per director of 4, an average audit committee board size of 4, and an average ownership concentration of 71.21%. Empirical results indicate plate size; a director's experience in the areas of corporate governance and shareholder concentration has a significant positive impact on the bottom line of a productive company. Finally, the study recommends that shareholders prioritize board size, board experience in running the company, and shareholder concentration.

Published in	International Journal of Health Economics and Policy (Volume 8, Issue 3)
DOI	10.11648/j.hep.20230803.12
Page(s)	62-69
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2023. Published by Science Publishing Group

Keywords

Corporate Governance, Financial Results, ROE, ROA, NIM, Dire Dawa, Ethiopia

References

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[2]	Eshetie, T. (2018). Ethiopia’s Manufacturing Industry Opportunities, Challenges and Way Forward: A Sectoral Overview. 1-7.
[3]	Fakoya, I. D. (2017). Effect of Corporate Governance Structure on the Financial Performance of Johannesburg Stock Exchange (JSE)-Listed Mining Firms. Africa Centre for Sustainability Accounting and Management (ACSAM), 1-15.
[4]	Federal Central statics agency, 2015.
[5]	Grujić, J. J. (2016). Historical development of corporate governance as the basis for current corporate trends. Institute of agricultural economics, belgrade, 187-198.
[6]	Griffiths, R. V. (2014). An Introduction to Corporate Governance. Urbana-Champaign: University of Illinois.
[7]	Harun, A. (2017). Corporate Governance and its Effect on Financial Performance of the Ethiopian Private Commercial Banks. Addis Ababa: Addis Ababa University.
[8]	Khan, H. (2011). A Literature Review of Corporate Governance. IPEDR, 1-5.
[9]	Kothery. (2004). Research Methodology, methods and Techniques (Vol. second revised eddition).
[10]	Low, M. M. (2017). Balancing rules and flexibility for growth. KPMG & ACCA.
[11]	Nguyen, N. H. (2017). Impacts of corporate governance on firm Performance. LUND UNIVERSITY, (pp. 1-66).
[12]	Oqubay, A. (2018). The Structure and Performance of the Ethiopian Manufacturing Sector, Working Paper Series No 299. Abidjan, Cote d'Ivoire: African Development Bank Group.
[13]	Pooja Gupta, A. M. (2014). A study of the impact of corporate governance practices on firm performance in Indian and South Korean companies. Procedia - Social and Behavioral Sciences, 4-11.
[14]	Price, N. J. (2018, October 3rd). Diligent Insights. Retrieved october 3rd, 2018, from insights.diligent.com.
[15]	Tigabu D. Getahun, G. A. (2018). Manufacturing Competitiveness in Ethiopia: Developments, Challenges and Prospects. Addis Ababa: Ethiopian Development Research Institute.
[16]	Tura, H. (2012). Overview of corporate governance in ethiopia: the role, composition and remuneration of boards of directors in share companies. Https://www.researchgate.net/publication/312587074, 46-76.
[17]	Yılmaza, İ. (2018). Corporate Governance and Financial Performance Relationship: Case for Oman companies. Journal of Accounting, Finance and Auditing Studies, 1-23.
[18]	Wondem, B. A. (2019). The Impact of Corporate Governance Practices on Corporate Financial Performance in Ethiopia. International Journal of Accounting Research, 1-10.

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APA Style

Mikiyas Nigussie Jobir. (2023). Impact of Corporate Governance Practices on the Financial Results of Manufacturing Joint Ventures Dire Dawa. International Journal of Health Economics and Policy, 8(3), 62-69. https://doi.org/10.11648/j.hep.20230803.12

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ACS Style

Mikiyas Nigussie Jobir. Impact of Corporate Governance Practices on the Financial Results of Manufacturing Joint Ventures Dire Dawa. Int. J. Health Econ. Policy 2023, 8(3), 62-69. doi: 10.11648/j.hep.20230803.12

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AMA Style

Mikiyas Nigussie Jobir. Impact of Corporate Governance Practices on the Financial Results of Manufacturing Joint Ventures Dire Dawa. Int J Health Econ Policy. 2023;8(3):62-69. doi: 10.11648/j.hep.20230803.12

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@article{10.11648/j.hep.20230803.12,
  author = {Mikiyas Nigussie Jobir},
  title = {Impact of Corporate Governance Practices on the Financial Results of Manufacturing Joint Ventures Dire Dawa},
  journal = {International Journal of Health Economics and Policy},
  volume = {8},
  number = {3},
  pages = {62-69},
  doi = {10.11648/j.hep.20230803.12},
  url = {https://doi.org/10.11648/j.hep.20230803.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.hep.20230803.12},
  abstract = {This study focused on the impact of corporate governance on the financial performance of manufacturing companies in Dire Dawa, Ethiopia over a 13-year period from 2007 to 2019. As a result, there was a lack of documented literature. The overall purpose of this study was to examine the impact of corporate his governance practices on the financial performance of Dire Dawa limited liability companies. The research design used in this study aims to clarify the causal relationship between the attributes of corporate governance and the variables of corporate performance (ROE) in the manufacturing industry. Research design. The dependent variable used to measure the financial performance of manufacturing companies is return on equity. The researcher considered five public companies in the study, and the total number of public manufacturing companies was obtained from his ERCA subsidiary, Dire Dawa. Board information was obtained through a structured questionnaire as directors or board secretaries are well positioned to express their views on corporate governance issues. Budgets were collected from all production companies. This study used a panel data analysis method to draw conclusions about the study. The survey found an average board size of 8 members, an average management experience per director of 4, an average audit committee board size of 4, and an average ownership concentration of 71.21%. Empirical results indicate plate size; a director's experience in the areas of corporate governance and shareholder concentration has a significant positive impact on the bottom line of a productive company. Finally, the study recommends that shareholders prioritize board size, board experience in running the company, and shareholder concentration.},
 year = {2023}
}

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TY  - JOUR
T1  - Impact of Corporate Governance Practices on the Financial Results of Manufacturing Joint Ventures Dire Dawa
AU  - Mikiyas Nigussie Jobir
Y1  - 2023/07/08
PY  - 2023
N1  - https://doi.org/10.11648/j.hep.20230803.12
DO  - 10.11648/j.hep.20230803.12
T2  - International Journal of Health Economics and Policy
JF  - International Journal of Health Economics and Policy
JO  - International Journal of Health Economics and Policy
SP  - 62
EP  - 69
PB  - Science Publishing Group
SN  - 2578-9309
UR  - https://doi.org/10.11648/j.hep.20230803.12
AB  - This study focused on the impact of corporate governance on the financial performance of manufacturing companies in Dire Dawa, Ethiopia over a 13-year period from 2007 to 2019. As a result, there was a lack of documented literature. The overall purpose of this study was to examine the impact of corporate his governance practices on the financial performance of Dire Dawa limited liability companies. The research design used in this study aims to clarify the causal relationship between the attributes of corporate governance and the variables of corporate performance (ROE) in the manufacturing industry. Research design. The dependent variable used to measure the financial performance of manufacturing companies is return on equity. The researcher considered five public companies in the study, and the total number of public manufacturing companies was obtained from his ERCA subsidiary, Dire Dawa. Board information was obtained through a structured questionnaire as directors or board secretaries are well positioned to express their views on corporate governance issues. Budgets were collected from all production companies. This study used a panel data analysis method to draw conclusions about the study. The survey found an average board size of 8 members, an average management experience per director of 4, an average audit committee board size of 4, and an average ownership concentration of 71.21%. Empirical results indicate plate size; a director's experience in the areas of corporate governance and shareholder concentration has a significant positive impact on the bottom line of a productive company. Finally, the study recommends that shareholders prioritize board size, board experience in running the company, and shareholder concentration.
VL  - 8
IS  - 3
ER  -

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Author Information

Mikiyas Nigussie Jobir

Department of Accounting and Finance, Dire Dawa University, Drie-Dawa, Ethiopia

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APA Style

Mikiyas Nigussie Jobir. (2023). Impact of Corporate Governance Practices on the Financial Results of Manufacturing Joint Ventures Dire Dawa. International Journal of Health Economics and Policy, 8(3), 62-69. https://doi.org/10.11648/j.hep.20230803.12

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ACS Style

Mikiyas Nigussie Jobir. Impact of Corporate Governance Practices on the Financial Results of Manufacturing Joint Ventures Dire Dawa. Int. J. Health Econ. Policy 2023, 8(3), 62-69. doi: 10.11648/j.hep.20230803.12

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AMA Style

Mikiyas Nigussie Jobir. Impact of Corporate Governance Practices on the Financial Results of Manufacturing Joint Ventures Dire Dawa. Int J Health Econ Policy. 2023;8(3):62-69. doi: 10.11648/j.hep.20230803.12

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@article{10.11648/j.hep.20230803.12,
  author = {Mikiyas Nigussie Jobir},
  title = {Impact of Corporate Governance Practices on the Financial Results of Manufacturing Joint Ventures Dire Dawa},
  journal = {International Journal of Health Economics and Policy},
  volume = {8},
  number = {3},
  pages = {62-69},
  doi = {10.11648/j.hep.20230803.12},
  url = {https://doi.org/10.11648/j.hep.20230803.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.hep.20230803.12},
  abstract = {This study focused on the impact of corporate governance on the financial performance of manufacturing companies in Dire Dawa, Ethiopia over a 13-year period from 2007 to 2019. As a result, there was a lack of documented literature. The overall purpose of this study was to examine the impact of corporate his governance practices on the financial performance of Dire Dawa limited liability companies. The research design used in this study aims to clarify the causal relationship between the attributes of corporate governance and the variables of corporate performance (ROE) in the manufacturing industry. Research design. The dependent variable used to measure the financial performance of manufacturing companies is return on equity. The researcher considered five public companies in the study, and the total number of public manufacturing companies was obtained from his ERCA subsidiary, Dire Dawa. Board information was obtained through a structured questionnaire as directors or board secretaries are well positioned to express their views on corporate governance issues. Budgets were collected from all production companies. This study used a panel data analysis method to draw conclusions about the study. The survey found an average board size of 8 members, an average management experience per director of 4, an average audit committee board size of 4, and an average ownership concentration of 71.21%. Empirical results indicate plate size; a director's experience in the areas of corporate governance and shareholder concentration has a significant positive impact on the bottom line of a productive company. Finally, the study recommends that shareholders prioritize board size, board experience in running the company, and shareholder concentration.},
 year = {2023}
}

Copy | Download

TY  - JOUR
T1  - Impact of Corporate Governance Practices on the Financial Results of Manufacturing Joint Ventures Dire Dawa
AU  - Mikiyas Nigussie Jobir
Y1  - 2023/07/08
PY  - 2023
N1  - https://doi.org/10.11648/j.hep.20230803.12
DO  - 10.11648/j.hep.20230803.12
T2  - International Journal of Health Economics and Policy
JF  - International Journal of Health Economics and Policy
JO  - International Journal of Health Economics and Policy
SP  - 62
EP  - 69
PB  - Science Publishing Group
SN  - 2578-9309
UR  - https://doi.org/10.11648/j.hep.20230803.12
AB  - This study focused on the impact of corporate governance on the financial performance of manufacturing companies in Dire Dawa, Ethiopia over a 13-year period from 2007 to 2019. As a result, there was a lack of documented literature. The overall purpose of this study was to examine the impact of corporate his governance practices on the financial performance of Dire Dawa limited liability companies. The research design used in this study aims to clarify the causal relationship between the attributes of corporate governance and the variables of corporate performance (ROE) in the manufacturing industry. Research design. The dependent variable used to measure the financial performance of manufacturing companies is return on equity. The researcher considered five public companies in the study, and the total number of public manufacturing companies was obtained from his ERCA subsidiary, Dire Dawa. Board information was obtained through a structured questionnaire as directors or board secretaries are well positioned to express their views on corporate governance issues. Budgets were collected from all production companies. This study used a panel data analysis method to draw conclusions about the study. The survey found an average board size of 8 members, an average management experience per director of 4, an average audit committee board size of 4, and an average ownership concentration of 71.21%. Empirical results indicate plate size; a director's experience in the areas of corporate governance and shareholder concentration has a significant positive impact on the bottom line of a productive company. Finally, the study recommends that shareholders prioritize board size, board experience in running the company, and shareholder concentration.
VL  - 8
IS  - 3
ER  -

Copy | Download