Global mineral companies attributes and corporate governance

Raputsoane, Leroi (2025): Global mineral companies attributes and corporate governance.

Abstract

This paper analyses the relationship between the attributes of Global minerals companies and corporate governance. This is achieved by augmenting and comparing the corporate governance ratings of mineral companies in South Africa to that of the mineral companies world wide. The results show that the measures of transparency, namely required disclosure and additional disclosure, of the sampled companies have a statistically significant positive relationship with corporate governance. The results have also shown no statistically significant difference in corporate governance between the minerals companies operating in South Africa and those operating in other parts of the world. The results have also shown that the companies’ attributes that include market value, market performance and financial performance do not have a statistically significant relationship with corporate governance. The paper, nevertheless, recommends continued encouragement of good corporate governance to all companies, including those in the minerals industry, given the devastating consequences of the recently experienced corporate scandals.

• Item Type: MPRA Paper
• Language: English
• Keywords: Global minerals companies, Corporate governance, Companies attributes
• Subjects: C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General > C13 - Estimation: General; D - Microeconomics > D2 - Production and Organizations > D22 - Firm Behavior: Empirical Analysis; G - Financial Economics > G3 - Corporate Finance and Governance; L - Industrial Organization > L7 - Industry Studies: Primary Products and Construction

References

Adel, C., Hussain, M. M., Mohamed, E. K., and Basuony, M. A. (2019). Is Corporate Governance Relevant to The Quality of Corporate Social Responsibility Disclosure in Large European Companies? International Journal of Accounting & Information Management, 27(2):301–332.

Breusch, T. S. and Pagan, A. R. (1979). A Simple Test for Heteroscedasticity and Random Coefficient Variation. Econometrica, 47:1287–1294.

Bruno, V. and Claessens, S. (2010). Corporate Governance and Regulation: Can There Be Too Much of a Good Thing? Journal of Financial Intermediation, 19(4):461–482.

Byrne, D. (2024). What is a Corporate Governance Framework? Article, 22 July. Corporate Governance Institute (CFI).

Chen, J. (2023). Corporate Governance: Definition, Principles, Models, and Examples. Article, 31 October, Investopedia.

Coase, R. H. (1937). The Nature of the Firm. Economica, 4(16):386–405.

Conmy, S. (2022). What is Corporate Governance? Article, 16 August. Corporate Governance Institute (CFI).

Corporate Finance Institute (CFI) (2022). Top Accounting Scandals: A Recap of the Top Scandals in the Past. Article, November. Corporate Finance Institute (CFI).

Fama, E. and Jensen, M. C. (1983a). Agency Problems and Residual Claims. Journal of Law and Economics, 26:327–349.

Fama, E. and Jensen, M. C. (1983b). Separation of Ownership and Control. Journal of Law and Economics, 26:301–332.

Fama, E. F. (1980). Agency Problems and the Theory of the Firm. Journal of Political Economy, 88(2):288–307.

Glassman, C. A. (2005). Beyond the Myth of Anglo-American Corporate Governance. Speech. U.S. Securities and Exchange Commission (SEC).

Goldfeld, S. M. and Quandt, R. E. (1965). Some Tests for Homoscedasticity. Journal of the American Statistical Association, 60(310):539–547.

Gujarati, D. N. and Porter, D. C. (2009). Basic Econometric. McGraw-hill, 5th edition.

Institute of Directors South Africa (IODSA) (2016). King IV Report. Institute of Directors South Africa (IODSA), 4th edition.

Jensen, M. C. (1986). Agency Cost of Free Cash Flow, Corporate Finance, and Takeovers. American Economic Review, 76(2):323–329.

Jensen, M. C. and Meckling, W. H. (1976). Theory of the Firm. Managerial Behavior, Agency Costs and Ownership Structure. Journal of Financial Economics, 3(4):305–360.

Johannesburg Stock Exchange (JSE) (2024). Corporate Governance Framework. Article. Johannesburg Stock Exchange (JSE).

Morck, R. K. (2005). A History of Corporate Governance around the World. University of Chicago Press. Naciri, A. (2008). Corporate Governance around the World. Routledge.

Organisation Economic Cooperation and Development (OECD) (2015). G20/OECD Principles of Corporate Governance. Organisation Economic Cooperation and Development (OECD) Publishing.

Phillips, R. (2003). Stakeholder Theory and Organizational Ethics. Berrett-Koehler Publishers.

Ramsey, J. B. (1969). Tests for Specification Errors in Classical Linear Least-Squares Regression Analysis. Journal of the Royal Statistical Society Series B: Statistical Methodology, 31(2):350–371.

Ross, S. (2024). What Are Some Examples of Different Corporate Governance Systems? Investopedia, 23 May.

Shapiro, S. S. and Wilk, M. B. (1965). An Analysis Of Variance Test for Normality (Complete Samples). Biometrika, 52(3-4):591–611.

Solomon, J. (2020). Corporate Governance and Accountability. John Wiley & Sons.

Ungureanu, M. (2012). Models and Practices of Corporate Governance Worldwide. Working Papers Series, 4(3a). Centre for European Studies (CES).