Journal Articles

Improving Performance in New Zealand's Public Corporations : The Effect of Governance Practices

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This article examines whether the corporate governance practices recommended by the New Zealand Securities Commission (NZSC) in 2004 have affected the financial performance of public sector corporate entities in New Zealand. The findings indicate that these entities have universally adopted the Securities Commission recommendations by establishing subcommittees for audit and remuneration, and having a majority of independent directors on the boards. The results show that leverage has a statistically significant positive effect on all performance measures. Both the Remuneration Committee and dividend payout have positive effects on performance when measured by sales to total assets. Board size and an Audit Committee have a positive effect on reducing agency cost. Results also show that entity risk and industry type also have a positive effect on performance and agency cost reduction. Entity size has a consistent negative effect across all performance measures.

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Detail Information

Series Title

Governance

Call Number

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Publisher

New Jersey : Wiley-Blackwell., 2011

Collation

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Language

English

ISBN/ISSN

09521895

Classification

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Content Type

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Media Type

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Carrier Type

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Edition

Volume 24, Issue 3, July 2011, pages 517–556

Subject(s)

Improving Performance
Improving Performance in New Zealand's
Governance Practices Effect

Specific Detail Info

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Statement of Responsibility

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