Journal ArticleDOI
Size really matters: Further evidence on the negative relationship between board size and firm value
Y.T. Mak,Yuanto Kusnadi +1 more
TLDR
In this article, the authors examined the impact of corporate governance mechanisms on the firm value of Singapore and Malaysia firms (as measured by Tobin's Q) and found that there is an inverse relationship between board size and firm value in both countries.Abstract:
This study examines the impact of corporate governance mechanisms on the firm value of Singapore and Malaysia firms (as measured by Tobin's Q ) We find little evidence of relationships between most corporate governance mechanisms and Tobin's Q However, consistent with Yermack [Higher market valuation of firms with a small board of directors J Financ Econ 40 (1996), 185–211] and Eisenberg et al [Larger board size and decreasing firm value in small firms J Financ Econ 48 (1998), 35–54], we find that there is an inverse relationship between board size and firm value in both countries This suggests that the negative relationship between board size and firm value transcends different corporate governance systemsread more
Citations
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Board, audit committee, ownership and financial performance – emerging trends from Thailand
TL;DR: In this paper, the effects of corporate board and audit committee characteristics and ownership structures on market-based financial performance of listed firms in Thailand were investigated using the GMM estimator approach, and ordinary least squares and fixed effects for robustness checks.
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The Cost of Multiple Large Shareholders
TL;DR: In this paper, the authors argue that the conflicting incentives faced by large shareholders may induce a nonlinear relationship between the relative size of large shareholdings and firm value, and they present evidence that there are costs to having a second and third largest shareholder, especially when the largest share holdings are similar in size.
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Analysis of Board Size and Firm Performance: Evidence from NSE Companies Using Panel Data Approach:
TL;DR: In this paper, the authors examine the relationship between the board size and firm performance and propose a new theory of corporate governance, which is based on different theories of board size, and examine the relation between the two.
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Corporate governance practices in Indian firms
Hima Bindu Kota,Sarika Tomar +1 more
TL;DR: In this paper, the effect of corporate governance practices on the performance of 106 mid-sized firms in India, between 2005 and 2007, was examined and it was found that a small board is more effective and enhances the value of the firm.
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The Effects of Board Independence in Controlled Firms: Evidence from Turkey
TL;DR: In this article, the authors analyzed the relationship between board structure and firm performance for a sample of listed companies in Turkey and found that board independence is unrelated to equity issues, independent directors are unlikely to curb the extent of related party transactions, and depending on the statistical methods they use, the presence of independent board members and the firm performance are negatively related or uncorrelated.
References
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Journal ArticleDOI
Management Ownership and Market Valuation: An Empirical Analysis
TL;DR: This article investigated the relationship between management ownership and market valuation of the firm, as measured by Tobin's Q. In a 1980 cross-section of 371 Fortune 500 firms, they found evidence of a significant nonmonotonic relationship.
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The Modern Industrial Revolution, Exit, and the Failure of Internal Control Systems
TL;DR: The last two decades indicate corporate internal control systems have failed to deal effectively with these changes, especially slow growth and the requirement for exit as mentioned in this paper, which is a major challenge for Western firms and political systems as these forces continue to work their way through the worldwide economy.
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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.
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Additional evidence on equity ownership and corporate value
John J. McConnell,Henri Servaes +1 more
TL;DR: The authors investigated the relation between Tobin's Q and the structure of equity ownership for a sample of 1,173 firms for 1976 and 1,093 firms for 1986 and found a significant curvilinear relation between Q and common stock owned by corporate insiders.
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The separation of ownership and control in east asian corporations
TL;DR: The authors examined the separation of ownership and control for 2,980 corporations in nine East Asian countries and found that voting rights frequently exceed cash-ow rights via pyramid structures and cross-holdings.