Corporate Governance

The articles :

1. Identification of Role of Social Audit by Stakeholders as Accountability Tool in Good Governance

2. On the relation between corporate governance compliance and operating performance

The reason select this article:

To know the re-examination of negative relationship between corporate governance and corporate performance, and reports evidence of a positive relationship between the extent of compliance with international best practices concerning board structure and functioning and operating performance when operating performance is measured by the return on assets

(ROA).

Components of Comparison	Article from CRP	Article from Student
Title	Identification of Role of Social Audit by Stakeholders as Accountability Tool in Good Governance	On the relation between corporate governance compliance and operating performance
Topic	Corporate Governance	Corporate Governance
Theory used by article	Angela Liberator 2004 Accountability is a term that requires many specifications, namely whose accountability to whom and how. Gray Owen 1996 Social auditing is a process that enables organization to assess and demonstrates its social, economic, and environmental benefits and limitations.	Bauer et al., 2004 Greater compliance with international best practices concerning board structure and functioning positively related with operating performance
Hypothesis of research	Social audit creates confidence in society regarding government initiatives, promotes transparency and efficiency, improves social, ethical and environmental performance, enhance inclusion, facilitates monitoring and ensures accountability.	A company’s operating performance increases in the extent of compliance with international best practices concerning board structure and functioning, ceteris paribus.
Variables used in research	To check the face and construct validity, questionnaire is given for examination and examined by 6 experts: 1 citizen, 1 legal, 1 politician, 2 officials, 1 educationist. To check the test and retest reliability, questionnaire was given to a set of 30 stakeholders taken from 5 categories of stakeholders: citizen, legal professionals, political persons, bureucracy/official, and media.	ROA ROE NPM LEVit LNTAit CG_COMPL Y2001it Xit
Method of analysis	Likert scale questionnaire	Ordinary Least Square (OLS)
Result of the analysis	High reliability and validity of the instrument developed on positive statement establishes the appropriateness of the tool designed for assessing the role of social audit and its likely benefits and utility to stakeholders. Reliability and validity go side by side. The benefits or role which stakeholders perceive: Stakeholder accepted that social audit helps the government in monitoring, accounting for and reporting the activities/actions. The exercise of social audit improves social, ethical, and environmental performance. Public is convinced and confident that social audit contributes towards achievement of efficacy and effectiveness of the administration. The important finding was that it creates confidence on governmental actions in the community. It makes administration more transparent and accountable. It provides verifiable data to substantiate claims on social performance. It enhances inclusions, partnership, and participation. Collectively, social audit is a tool for social accountability in good governance.	Firms may benefit from complying with international corporate governance best practices, which may help to convince companies to adopt good governance practices. In addition, the results of the investigation may support regulators in motivating and defending their corporate governance decisions, and may prove useful for investors when assessing and evaluating company performance.