This study examines the impact of corporate governance and financial leverage on the value of American firms. This study also seeks to extend the findings of Gill and Mathur (2011a). A sample of 333 firms listed on New York Stock Exchange (NYSE) for a period of 3 years from 2009-2011 was selected. The co-relational and non-experimental research design was used to conduct this study. Overall, findings show that larger board size negatively impacts the value of American firms, and CEO duality, audit committee, financial leverage, firm size, return on assets, and insider holdings positively impact the value of American firms. The impact of corporate governance and financial leverage differs between manufacturing and service industries. Results show that board size negatively impacts the value of American manufacturing firms, and CEO duality, audit committee, financial leverage, firm size, and insider holdings positively impact the value of American manufacturing firms. Findings also show that board size negatively impacts the value of American service firms, and financial leverage and return on assets positively impact the value of American service firms. This study contributes to the literature on the factors that affect firm value. The findings may be useful for financial managers, investors, and financial management consultants.

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The Impact of Corporate Governance and Financial Leverage on the Value of American Firms

http://eprints.aston.ac.uk/20303/1/Ownership_concentration_MandA_outcomes.pdf

Does ownership concentration improve M&A outcomes in emerging markets?: Evidence from India

Corporate governance quality and financial leverage: Evidence from China

This study examines the effect of different dimensions of ownership structure in corporate performance. The data that is used in this study includes 29 non-financial firms listed on the Qatar Exchange during the period of 2006-2011. The different dimensions of ownership structures that are included in the study are: board ownership, concentrated ownership, foreign ownership, and institutional ownership. In addition, firm performance is estimated by three measures: Tobin’s Q, ROA, and ROE. The two regression models that are used to test the effects of ownership structure and firm performance are the panel data regression model and linear regression model. The empirical evidence in this study shows that concentrated ownership, board ownership and foreign ownership have a positive effect on firm performance. Furthermore, the board ownership has a positive and significant relationship with ROA and ROE, whereas concentrated ownership has a positive and significant effect on ROA, ROE and Tobin’s Q. On the other hand, institutional ownership has a negative significant effect on Tobin’s Q.

Ownership Structure and Corporate Performance: Evidence from Qatar

This paper examines the impact of group-controlling shareholders’ interests on the R&D decision of group-affiliated firms in business groups with cross-ownership structures, especially with regard to the impact of control-ownership disparities or cash-flow rights. We show that R&D intensity across group-affiliated firms, in business groups with cross-ownership structures, is higher when control-ownership disparities are low or when group-controlling shareholders have higher cash-flow rights. Particularly in publicly listed firms, we find that the cash-flow rights of group-controlling shareholders are one of the most important determinants of the R&D intensity for group-affiliated firms.

Jihye Yoo

Papers

Relationship between management ownership and firm value among the business group affiliated firms in Korea