Journal ArticleDOI
Corporate Governance and Firm Operating Performance
TLDR
In this article, the authors used a unique dataset provided by Institutional Shareholder Services (ISS) to relate 51 governance provisions to firm operating performance as proxied by return on assets and return on equity.Abstract:
Using a unique dataset provided by Institutional Shareholder Services (ISS), we relate 51 governance provisions to firm operating performance as proxied by return on assets and return on equity. We show that seven (six) governance provisions are significantly and positively related to return on assets (equity) using at least two of three econometric approaches. We identify 10 corporate governance provisions that are positively linked to return on assets, return on equity or both using at least two of our three econometric approaches. Nine of the corporate governance provisions we examine have recently been mandated by the three major U.S. stock exchanges but only one of them, nominating committee is comprised solely of independent outside directors, is significantly and positively related to firm operating performance. Our results reveal that the corporate governance reforms recently mandated by the three major U.S. stock exchanges are not more closely linked to firm operating performance than are those not so mandated.read more
Citations
More filters
Posted Content
Corporate Governance and Institutional Ownership
Kee H. Chung,Hao Zhang +1 more
TL;DR: In this article, the authors examined the relation between corporate governance and institutional ownership and found that the fraction of a company's shares that are held by institutional investors increases with the quality of its governance structure.
Posted Content
Corporate Governance and Liquidity
TL;DR: In this article, the empirical relation between corporate governance and stock market liquidity was investigated and it was shown that firms with better corporate governance have narrower spreads, higher market quality index, smaller price impact of trades, and lower probability of information-based trading.
Journal ArticleDOI
Governance and Politics: Regulating Independence and Diversity in the Board Room
Øyvind Bøhren,R. Øystein Strøm +1 more
TL;DR: In this article, the economic rationale for board regulation in place and for introducing new regulation in the future was analyzed and the value of the firm was linked to the use of employee directors, board independence, directors with multiple seats, and gender diversity.
Journal ArticleDOI
A transparency disclosure index measuring disclosures: Chinese listed companies
TL;DR: Wang et al. as discussed by the authors constructed a comprehensive scorecard, based on the OECD Principles of Corporate Governance, in order to assess the transparency of 100 major Chinese listed companies.
Journal ArticleDOI
Corporate governance and operating performance of Chinese listed firms
TL;DR: Li et al. as mentioned in this paper investigated the impact of corporate governance on firm performance and valuation in China and found that better governed Chinese firms would have higher performance and higher valuation. But they did not consider the effect of individual governance on the overall stock market.
References
More filters
Journal ArticleDOI
A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity
TL;DR: In this article, a parameter covariance matrix estimator which is consistent even when the disturbances of a linear regression model are heteroskedastic is presented, which does not depend on a formal model of the structure of the heteroSkewedness.
Journal ArticleDOI
Higher market valuation of companies with a small board of directors
TL;DR: In this paper, the authors present evidence consistent with theories that small boards of directors are more effective, using Tobin's Q as an approximation of market valuation, and find an inverse association between board size and firm value in a sample of 452 large U.S. industrial corporations.
Journal ArticleDOI
Earnings, Book Values, and Dividends in Equity Valuation*
TL;DR: In this article, a model of a firm's market value as it relates to contemporaneous and future earnings, book values, and dividends is developed and analyzed, and two owners' equity accounting constructs provide the underpinnings of the model: the clean surplus relation applies and dividends reduce current book value but do not affect current earnings.
Journal ArticleDOI
Firm Performance and Board Committee Structure
TL;DR: In this article, a linkage between firm performance and board composition by examining the committee structure of boards and the directors' roles within these committees was demonstrated, showing that firms significantly increasing inside director representation on these two committees experience significantly higher contemporaneous stock returns and return on investments than firms decreasing the percentage of inside directors on these committees.
Journal ArticleDOI
On the Use of Instrumental Variables in Accounting Research
TL;DR: Instrumental variable (IV) methods are commonly used in accounting research (e.g., earnings management, corporate governance, executive compensation, and disclosure research) when the regressor variables are endogenous as discussed by the authors.