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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Corporate governance mechanisms and unmanaged earnings: empirical evidence from malaysian government linked companies
TL;DR: In this article, the authors examined the effectiveness of board monitoring mechanisms in Government Linked Companies (GLCs) in Malaysia, focusing on how the introduction of the transformation policy, which emphasizes strengthening the board effectiveness, would lead to an improvement in the performance of GLCs.
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Does Corporate Governance Matter in Iran
TL;DR: In this paper, the authors constructed a corporate governance index (G-index) based on 13 attributes, which are associated with good and bad governance to investigate the impact of corporate governance on a firm's stock return.
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The Trend of CSR Disclosures and the Role of Corporate Governance Attributes: The Case of Shari'ah Compliant Companies in Malaysia
TL;DR: In this paper, the authors examine the trend of corporate social responsibility (CSR) disclosures and the role of corporate governance attributes in the CSR disclosures of Shari'ah compliant companies (ShCCs) in Malaysia for the years 2006 and 2009, a period which corresponds before and after a plethora of significant changes in Malaysia, encompassing the recent financial crisis and policy changes in the form of Corporate governance restructuring.
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Investigation of optimal capital structure in Malaysia: a panel threshold estimation
TL;DR: In this article, the effect of leverage on Malaysian listed firms' value and the optimal level of debt at which a firm could maximize its value was investigated, and the results showed that debt is only pertinent to the firm value up to a threshold level of 64.33 per cent.
Journal Article
The Relationship between Corporate Governance and Value of the Firm in Developing Countries: Evidence from Bangladesh
TL;DR: In this article, the authors examined the relationship between four corporate governance mechanisms (board size, board independent director, chief executive officer duality and board audit committee) and value of the firm (performance) measures (return on assets, ROA and return on equity, ROE).
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.