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 Size, Board Composition and Performance: An Investigation on Turkish Banks
Ozcan Isik,Ali Riza Ince +1 more
TL;DR: In this article, the authors investigated the impact of board size and board composition on performance for a sample of 30 commercial banks from 2008 to 2012 in Turkey and found no significant relationship between board composition and banks' financial performance.
Journal ArticleDOI
Corporate Governance Mechanisms and Firm Efficiency
TL;DR: In this article, the authors used technical efficiency to measure the performance impact of internal corporate governance mechanisms and analyzed how the size, leadership and composition of the board of directors together with external shareholders can be structured to enhance a firm's technical efficiency.
Journal ArticleDOI
Are East Asian Companies Benefiting from Western Board Practices
TL;DR: Wang et al. as discussed by the authors examined the adoption of major board-related corporate governance recommendations by large non-financial companies in seven East Asian nations and investigated whether improvements in these board governance mechanisms have been associated with increased operating performance and market value.
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Corporate Governance and the Cost of Capital: Evidence from Australian Companies
TL;DR: In this article, the authors examine a sample of large Australian companies over a 10-year period with the aim of analyzing the role that firm-level corporate governance mechanisms such as insider ownership and independent boards play in explaining a company's cost of capital.
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Board of directors’ effects on financial distress evidence of family owned businesses in Lebanon
TL;DR: In this paper, the authors analyzed a sample of 178 Lebanese non-listed and owned family firms and found that the boards that have a higher proportion of outside directors are less inclined to face financial distress than the boards with a lower proportion.
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.