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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The Board of Directors and Firm Performance: Empirical Evidence from Listed Companies
TL;DR: In this article, the effectiveness and applicability of agency theory in the specific context of Italian corporate governance practice was evaluated. But, the authors did not consider the effect of independent directors on performance.
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Internal audit quality, audit committee independence, growth opportunities and firm performance
TL;DR: In this article, the authors explored whether the relation between internal audit quality and firm performance is associated with firm characteristics of information asymmetry and uncertainty (growth opportunities) and certain governance controls (audit committee effectiveness).
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Do board characteristics drive firm performance? An international perspective
TL;DR: In this paper, the authors examine how board characteristics influence firm performance and find that board size, board independence, CEO duality, female directors and board compensation affect firm performance in a sample of international firms.
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Do Stock Prices Reflect the Corporate Governance Quality of Japanese Firms
Hiroyuki Aman,Pascal Nguyen +1 more
TL;DR: In this article, the authors construct a governance index based on several attributes known to be associated with good corporate governance and use it to evaluate the returns on governance-sorted portfolios.
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Fifty years of finance research in the Asia Pacific Basin
TL;DR: This paper reviewed the history of scholarly finance research in the Asia Pacific Basin by analysing the four leading regional finance journals - Accounting and Finance, Australian Journal of Management, International Review of Finance and the Pacific-Basin Finance Journal - along five dimensions.
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.