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
More filters
Journal Article
The Concept of Corporate Governance and Its Evolution in Asia
TL;DR: In this article, a descriptive study attempts to summarize these developments in Asia along with the discussion of core concept of corporate governance for the new researchers in this field and other concern parties.
Journal ArticleDOI
The effect of environmental jolts on board governance practices and its impact on firm value
TL;DR: In this paper, the authors assess whether there are any changes in board governance practices as a result of firms adaptation to the changes caused by the crisis and show that in this new reality where resources are scarce and growth opportunities are scant a new board configuration is required.
Journal ArticleDOI
Do board characteristics play a moderating role in M&A decisions of family firms?
TL;DR: In this paper , the authors examined the moderating effect of the board of directors on the strategic decisions made by family firms, and to understand the board attributes that can alleviate the aversion of family-owned firms toward mergers and acquisitions.
Impacts of Board Characteristics on Corporate Performance: Evidence from Bangladeshi Listed Companies
TL;DR: In this article, the authors investigate the impacts of board characteristics on corporate performance and find that out of five proxy variables, board member's ownership and foreign member on board has a significant positive relationship on the corporate performance whereas the other three proxy variables -board size, percentage of independent director on board and percentage of women on board have no statistical significant association along with corporate performances.
Journal ArticleDOI
The Effect of Monitoring Committees on the Relationship between Board Structure and Firm Performance
TL;DR: In this paper, the authors investigated the impact of board structure on the performance of French firms in the presence of several monitoring committees and concluded that large board size has a negative effect on market performance.
References
More filters
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.
Journal ArticleDOI
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.
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
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.
Journal ArticleDOI
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.