Wits Business School (ETDs)
Permanent URI for this communityhttps://hdl.handle.net/10539/37941
Browse
2 results
Search Results
Item Effect of Corporate Governance and Institutional Quality on Firm Performance and Economic Growth in Emerging and Developed Markets: A comparative analysis(University of the Witwatersrand, Johannesburg, 2024) Natto, Dinah Milembe; Mokoaleli-Mokoteli, ThabangPurpose of the study The objective of the current study is to investigate the effects of corporate governance and institutional quality on firm performance and economic growth in emerging and developed markets. These sample countries were selected based on their significant role in their respective economic blocs and based on their unique economic and firm characteristic Research design The impact of corporate governance and institutional quality on firm performance was rigorously evaluated using the Generalized Method of Moments (GMM), while controlling for key variables such as economic growth and other relevant factors. Major findings The study found that corporate governance compliance levels have improved significantly in emerging economies over the study period, with South Africa leading the sample countries. In addition, corporate governance has a significant positive correlation with all firm performance measures in all sample countries. Furthermore, corporate governance has a long-term relationship with ROE and Tobin’s Q in emerging market countries and not in developed countries. However, weak institutions reverse the benefits of a robust corporate governance framework, especially in emerging economies where institutional quality was found to be low. Lastly, the study revealed that over the study period, corporate governance was only found to have a long-term relationship with Tobin’s Qin India. Practical implications Policymakers in emerging and developed markets, the research provides insights into which aspects of corporate governance and institutional quality are most effective in promoting firm performance and economic growth. This can guide the design and implementation of regulations and reforms. Investors can use the findings to assess the risk and potential returns in different markets based on the strength of corporate governance and institutional frameworks. Strong governance and institutions may indicate lower risk and higher stability. Social implication Improved firm performance driven by good governance and strong institutions may lead to better wages and working conditions for employees, reducing income inequality and contributing to social stability. Originality While studies on corporate governance, institutional quality, and their impacts on firm performance and economic growth exist, the originality lies in the comparative analysis between emerging and developed markets. Furthermore, the research integrates the analysis of corporate governance and institutional quality, rather than examining them in isolation.Item The impact of capital flows on South African GDP growth and JSE ALSI return(2020) Ngwenya, PartsonSouth African policymakers have extensively invested in capital market liberalisation making the country one of the most integrated economies within emerging markets. This study analysed the impact that overall capital flows, foreign direct investment and foreign portfolio flows into and out of South Africa had on GDP and the Johannesburg Stock Exchange using quarterly data between 1995 and 2016. The study found that the Johannesburg All Share Index (ALSI) and South African gross domestic product (GDP) were both influenced by capital flows in the form of FDI and FPI as suggested by the cointegration tests. Further, it was observed that JSE returns were mostly affected by both FDI and FPI in the short-run whilst GDP was mostly affected by capital flows in the long-run. The Markov switching model suggested that economic growth as measured by GDP was more responsive to both positive and negative economic cycles compared to ALSI returns.