Download or read book Essays on Corporate Governance and Firm Performance written by Nava Ramezanian Bajgiran and published by . This book was released on 2020 with total page 118 pages. Available in PDF, EPUB and Kindle. Book excerpt: Most corporate governance research focusses on prescriptive measures of governance quality (e.g., board composition, attributes) and their association with measures of firm performance but neglects the dynamic nature of governance choices that impinge on firm value. In Chapter 1, I introduce a top-down approach for evaluating board effectiveness in a dynamic context focusing on the empirical outcomes of the decisions they make. A Principal Component Analysis is employed to construct an index of governance quality capturing six key aspects of board responsibilities. In Chapter 2, I turn to examine whether firms’ corporate governance quality can positively influence their stock returns and operating performance using the newly developed index that accounts for the dynamic nature of internal governance choices. By constructing decile portfolios of firms based on this measure of governance quality, I show that portfolios of firms with better governance quality outperform firms within the lower governance quality portfolios. Specifically, zero-investment strategies that buy HQ portfolios (highest governance quality) and short LQ portfolios (weakest governance quality) generate 3.9% and 3.2% returns for equally- and value-weighted portfolios, respectively. Finally, in Chapter 3, I follow a similar approach to that developed in the first two chapters to construct a dynamic governance quality index for a sample of public companies from 16 European countries. Comparing the returns of the portfolios based on this index reveals that European companies with higher governance quality (HQ portfolio) generally outperform their peers which possess a lower quality of governance (LQ portfolio). The findings also show that firm level governance can be affected by country-level elements such as legal and institutional structures.

Download or read book Essays on Corporate Governance and Its Influence on Firm s Strategy written by Eduard Alonso Paulí and published by . This book was released on 2007 with total page 101 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays on Corporate Governance written by Yan Luo and published by . This book was released on 2013 with total page 546 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this thesis I investigate the economic determinants and consequences of corporate governance (broadly defined) in Canadian "comply or explain" governance disclosure regime. I find that the quality of governance in firms varies in the cross-section and is associated with firm value as economic theory suggests. Furthermore, I find the effectiveness of board and audit committee has a strong impact on the auditor-client management relationship in their negotiation over financial reporting. Such relationships then influence financial reporting quality and audit fees. Overall, my results support that the theorized advantages of "comply or explain" allow firms greater flexibility in tailoring their governance practice to their specific circumstances. Such tailored governance practice is more efficient and cost-effective and serves the interests of shareholders by 1) improving firm value; 2) constraining managerial opportunism; and 3) improving audit quality without incurring higher audit fees.

Download or read book U S Corporate Governance written by Donald H. Chew and published by Columbia University Press. This book was released on 2009-08-25 with total page 388 pages. Available in PDF, EPUB and Kindle. Book excerpt: Corporate governance constitutes the internal and external institutions, markets, policies, and processes designed to help companies maximize their efficiency and value. In this collection of classic and current articles from the Journal of Applied Corporate Finance, thought leaders such as Michael Jensen and Robert Monks discuss the corporate mission of value maximization and the accomplishments and limitations of the U.S. governance system in achieving that end. Essays address the elements driving corporate value: the board of directors, compensation for CEOs and other employees, incentives and organizational structure, external ownership and control, role of markets, and financial reporting. They evaluate best practice methods, challenges in designing equity plans, transferable stock options, the controversy over executive compensation, the values of decentralization, identifying and attracting the "right" investors, the evolution of shareholder activism, creating value through mergers and acquisitions, and the benefits of just saying no to Wall Street's "earnings game." Grounded in solid research and practice, U.S. Corporate Governance is a crucial companion for navigating the world of modern finance.

Download or read book Three Essays on Corporate Governance written by Aazam Virani and published by . This book was released on 2014 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Three Essays on Corporate Governance written by Maryam Firoozi and published by . This book was released on 2015 with total page 138 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis is comprised of three essays on corporate governance issues. The first essay focuses on how board members’ geographical diversity relates to financial reporting quality. In principle, it is often argued that diversity has a positive impact on a group’s decision-making and monitoring abilities. In governance matters, while the attention has recently been placed on gender diversity, diversity is in fact multi-dimensional and encompasses attributes such as gender but also experience, expertise, independence and origins. The results show that a local board is more successful in monitoring financial reporting quality. The first essay provides evidence that although regulators are encouraging the diversity of boards of directors in all aspects, they may not be aware that each dimension of diversity may have a different impact on the performance of directors. The second essay ponders how the presence of foreign directors on audit committees affects their effectiveness. The rules-based approach of Canadian regulators with respect to audit committee membership has caused many Canadian firms to nominate foreign directors on their audit committees, especially from the U.S. The second essay provides evidence that the nomination of foreign directors to a monitoring committee, mainly due to the requirements regarding audit committee membership, may have reverse outcomes on the quality of financial reporting, even though these directors may share many similarities with directors from the country in which they are sitting on a board and to which they are geographically close. The last essay looks at the effects of the adoption of a new set of accounting standards within a single national context, Canada, with different legal regimes (common law outside Quebec, code law within Quebec). The third essay offers evidence that the introduction of a new set of accounting standards may even result in a different level of financial reporting quality between firms, dependent on firm- and country- level governance mechanisms. Key words, Board of Directors, Geographical Diversity, Earnings Quality, Audit Committee, Foreign Directors, IFRS, Firm- level governance mechanisms, Country – Level Governance Mechanisms.

Download or read book Essays in Corporate Governance written by Ms. Nadya Malenko and published by . This book was released on 2011 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation provides a theoretical analysis of several corporate governance mechanisms in the presence of information asymmetries and agency conflicts between shareholders, managers, and directors. The first essay of the dissertation analyzes decision-making in corporate boards and studies how board characteristics and the design of board meetings affect board decisions. Two other essays are on shareholder activism. The second essay focuses on voting for non-binding shareholder proposals and examines its effectiveness in conveying shareholder views to the management. The third essay considers another common form of shareholder activism, private negotiations with the management, and studies the activist's choice between private negotiations and public confrontation. The first essay, "Communication and Decision-Making in Corporate Boards, " develops a theory of communication and collective decision-making in a board of directors whose members have private information about the issue under discussion. The key element of the model is that the quality of board communication is endogenous, because it depends on the time and effort directors are willing to put into communicating their information to others. Directors may have biases regarding the decision and may be reluctant to disagree with the prevailing opinion in the boardroom. I show that when effective communication is personally costly for directors, both stronger preferences for conformity and stronger biases may improve the board's decisions because directors will have stronger incentives to convince others of their position. These results have implications for the design of board policies, including the use of open vs. secret ballot voting, the establishment and composition of committees, and the frequency of executive sessions of outside directors. The second essay, "Non-Binding Voting for Shareholder Proposals, " which is co-authored with Doron Levit and is forthcoming in the Journal of Finance, considers another setting where information relevant for the firm's decisions is dispersed among many agents, namely, the firm's large shareholders. Our main question is whether voting for non-binding shareholder proposals fulfills its intended role of conveying shareholders' expectations to the management. We show that when the interests of the manager and shareholders are not aligned, non-binding voting generally fails to convey shareholder views to the manager. This distinguishes voting for non-binding proposals from standard voting for binding proposals, where some information is always conveyed. In practice, the effectiveness of shareholder proposals may be affected by external governance mechanisms, such as the market for corporate control in the form of activist investors. Our analysis demonstrates that the presence of an activist investor can enhance the advisory role of non-binding voting only if there is substantial conflict of interest between the activist and shareholders. Although shareholder proposals have become increasingly common in recent years, submitting a proposal to a shareholder vote is often viewed by activist investors as a tactic of last resort. According to survey evidence, activists generally try to achieve their objectives through private negotiations with the management and use confrontational tactics only if these negotiations are not successful. The third essay, "Behind-the-Scene Negotiations in Shareholder Activism, " examines under which circumstances negotiations between the activist and the management fail. I study these negotiations in a bargaining framework where the manager is privately informed about his private benefits. The model provides implications for the likelihood of proposal withdrawals and announcement effects of proposal submissions. It demonstrates, in particular, that the announcement of an activist's intervention may have a negative price effect even if the intervention is known to be beneficial to the company.

Download or read book Corporate Governance written by Ulrich Steger and published by John Wiley & Sons. This book was released on 2008-08-04 with total page 313 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book present the value school of corporate governance,outlining a multitude of areas where corporate governance could addreal worth, and showing how this can be put into effect. No “one-size-fits-all” model emerges as a solution.Rather, the insights in this book take idiosyncrasies and dynamicsover time into consideration. They consider the main issues andtheir real causes, ownership settings, country settings and newdevelopments in corporate governance research and practice. International focus places emphasises on typical patterns,predicament and solutions instead of national laws. Points are illustrated with in-depth case studies andhighlighted learning nuggets. Alerts the reader to typical dilemmas and traps in attainingthe goal of value creation, whilst also pointing to promisingavenues forward.

Download or read book Comparative Corporate Governance written by Klaus J. Hopt and published by Walter de Gruyter GmbH & Co KG. This book was released on 2015-02-06 with total page 372 pages. Available in PDF, EPUB and Kindle. Book excerpt: Corporate governance has become an important issue in all industrial economies. This text has grown out of a conference entitled Comparative Corporate Governance, An International Conference, United States - Japan - Western Europe which considered the subject.

Download or read book Essays on Corporate Governance and Asset Pricing written by Wei Lin and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation consists of three articles striding topics from corporate governance to asset pricing. It seeks to understand the costs and benefits of better corporate governance, and how assets such as real estate are priced. My ultimate focus is on corporate governance on both sides of the equations - as causes and effects, which culminates in my third article investigating the causality of legal revisions on investors through independent directors. My apparent detour in the second piece results from that my finance background has lectured me on the importance of how asset prices are determined. Through this detour, I have recognized that I should rather combine the topics of intrigue into my topics of pursuit. Hence my blending of my learnings from the first two articles into my final piece of this dissertation. Article 1, Corporate Transparency and Bond Liquidity, investigates how firm accounting transparency affects the liquidity of bonds issued by such firms. The dataset consists of firm- and bond- level data for US listed firms across multiple years. We find a positive relationship between firm transparency and bond liquidity, which becomes stronger in times of financial distress. Further, we find a negative relationship between firm transparency and liquidity risk. Economically speaking, bond liquidity is less (more) information-sensitive when the probability of default is lower (higher). Article 2, Pricing the Location of Commercial Properties, proposes a pricing framework for cash flow datasets, using US commercial properties as a case. We adapt the netpresent- value-approach of Korteweg and Nagel (2016) from a performance-evaluation context to a pricing context. As an example to test this proposed framework, We use the hedonic regression models of Clapp- Giaccotto (1998) to generate commercial real estate specific location risk factors. Our results show that a one-factor stock market model works rather well for commercial property pricing in comparison to multi-factor models including the factors of Fama and French (1996) and a physical-distancebased location risk factor. Article 3, Does Investor Protection Laws Benefit Investors? Evidence from a Natural Experiment on Cross-Listed Firms, studies the causal effects of investor protection laws on investors from a governance and financial perspective. I exploit a natural experimental setting where firms cross-listed on both China's mainland and Hong Kong are subject to the legal revisions. First, I find that more independent directors turn over amongst the cross-listed firms. Second, my results show that the directors appointed to succeed the resigned directors tend to be younger and include more female. The above combined, I argue that my findings suggest that firms have taken the opportunity to appoint directors more befitting to the new environment, hence increased board turnover might be conducive to the firm in the long run. Third, I find no evidence of significant changes in board independence in the short run. Combined with increased director turnovers, my findings reconcile the arguments advanced by the finance and the strategy literature on the effects of strengthened institutions in that strengthened shareholder-friendly corporate governance at the firm level and symbolic adoption of certain governance practices could take place jointly.

Download or read book Essays on Corporate Governance written by Vasileios Katsoulis and published by . This book was released on 2021 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Three Essays on Corporate Governance written by Stefan Petry and published by . This book was released on 2010 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays on Sustainability and Management written by Runa Sarkar and published by Springer. This book was released on 2017-05-25 with total page 228 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book offers a comprehensive overview of sustainability and management in India and through its insightful essays highlights the complex and multifaceted nature of sustainability as a concept. It also demonstrates the debates surrounding the concept of sustainability and its ramifications for ground-level practice in managing organisations and for public policy. The contributions from sustainability enthusiasts, practitioners from disparate fields and academics working at the Indian Institute of Management Calcutta, have been divided into five themes: (1) sustainability as a normative concept; (2) sustainability concept at the global level, (3) sustainability practices in Indian organisations and consumer behaviour; (4) sustainability, corporate governance and corporate social responsibility and (5) sustainability: a critique of organisational practice and government regulation. The themes reflect both new and continuing issues confronting management in the country today. Examples and in-depth studies make it relevant to the grounded reality in India. The expertise and experience of the contributors ensure that readers are left with a grasp of our current understanding of how sustainability is related to society and business, the direction this understanding will take in the future.

Download or read book Three Essays on the Role of Corporate Governance in Firms Spending on R D and Controlling Earnings management Practices written by Muḥammad Asʿad and published by . This book was released on 2021 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Beyond Governance written by Martin Fahy and published by John Wiley & Sons. This book was released on 2005-04-08 with total page 336 pages. Available in PDF, EPUB and Kindle. Book excerpt: Following a series of corporate scandals, legislators have company executives in their sights, and are arming themselves with ever-greater regulatory firepower. All agree that good governance is essential - but must not be allowed to stifle business performance. Beyond Governance develops the concept of Enterprise Governance, an emerging framework which unites Performance, Conformance and Corporate Responsibility and shows how addressing all of these areas in a concerted, coordinated fashion will deliver value to the organisation and its stakeholders. In particular, it focuses on the skills, processes and systems that are required to deliver excellence in each of these areas, giving readers a practical insight into the issues and an understanding of best practice in each area. Many firms are rethinking their finance activities in the light of e-commerce, shared service centres, business intelligence technology and cost pressures. Beyond Governance explores the challenge of building a modern, flexible finance function, describing the emerging role of the new CFO and how finance professionals should respond to this new business environment.

Download or read book Corporate Governance Across Institutional Contexts written by Yi Jiang and published by . This book was released on 2006 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Abstract: This dissertation consists of three essays that investigate the important issues involved with corporate governance across different institutional contexts. Chapter 2 draws on 884 publicly listed firms with concentrated ownership in seven Asian countries and examines the effect of corporate governance on firm value during the 1997 Asian financial crisis. The results of the multivariate analysis show that higher ownership concentration tends to be associated with higher firm value, and can be partially substituted by country institutional development. The effect of the largest shareholder's excess control on firm value is conditioned on country-level institutional development. Finally, higher firm value is associated with more control by nondominant blockholders. Chapter 3 recognizes different governance modes in the private participation projects in emerging economies and conceptualizes them as modes of transactions between the state and the private entity. Using data on 2550 private participation projects in 94 emerging economies, we find that firms self-select private participation modes. The survival differences across modes of private participation arise as a function of transaction uncertainty and asset specificity. Private entities with more uncertainty and asset specificity tend to choose internal or hybrid modes as opposed to market governance form. This indicates that firms may control the environmental uncertainty through internal arrangements. Chapter 4 examines foreign firms issuing initial public offering (IPO) in the U.S. and answers the following questions: How do foreign IPOs compensate for information asymmetry and risk in the U.S.? How is valuation of foreign IPOs related to firm characteristics, industry, and home country effect? From 205 pairs of matched foreign and U.S. companies that issued IPOs in the U.S. from 1992 to 2005, U.S. companies have had more managerial ownership reduction than foreign companies during IPO. Additionally, foreign companies more culturally distant from the U.S. show more managerial ownership reduction during IPO. Managerial ownership change, home country political risk and industry risk are signals to investors to evaluate IPOs.

Download or read book Does Corporate Governance Affect Firm Value written by Sebastian Schilling and published by diplom.de. This book was released on 2003-05-27 with total page 121 pages. Available in PDF, EPUB and Kindle. Book excerpt: Inhaltsangabe:Abstract: This thesis provides evidence that companies showing stronger corporate governance performance are on average also valued higher in terms of Tobin s q. This evidence is found using a dataset of 242 of Europe s largest corporations listed in the FTSE Eurotop 300 index. For each of these corporations, a dataset of over 300 corporate governance rating variables is analysed to establish a detailed overview of a firm s corporate governance performance. These 300 rating variables result out of a corporate governance standard established by an independent rating agency in cooperation with the largest European institutional investors and in reference to the respective national corporate governance codes of the companies in the sample. The final regression model containing independent score components for Corporate Governance performance and financial performance proxied by ROA represents an R square adjusted of 42 per cent, thereby making the model and the inherent coefficients highly representative. The coefficient of the corporate governance score component suggests that, ceteris paribus, a one point increase in the value of the score component leads on average to a 0.3 point increase in Tobin s q. The statistical findings are tested in depth for their practical validity in the subsequent Interview with the DWS Investment Group. Inhaltsverzeichnis:Table of Contents: Abstractiii 1.Introduction1 2.An Introduction to Corporate Governance6 2.1The Agency Problem6 2.1.1Transaction Conditions8 2.1.2Incentive Mechanisms10 2.1.3Economic Importance11 2.1.4Intermediate Conclusion12 2.2The Stakeholder Impact on Corporate Governance12 2.2.1Corporate Governance, contractual governance, and work governance13 2.3Culture, ownership concentration and law15 2.4Corporate Governance: A Definition18 3.The Corporate Governance Rating Framework20 3.1Rights and Duties of Shareholders20 3.1.1Academic Review21 3.1.2Key Criteria and Best Practice Recommendations21 3.1.3Code Review24 3.2Range of Takeover Defenses24 3.2.1Academic Review24 3.2.2Key Criteria and Best Practice Recommendations25 3.2.3Codes26 3.3Disclosure on Corporate Governance27 3.3.1Academic Review27 3.3.2Key Criteria and Best Practice Recommendations28 3.3.3Code Review30 3.4Board Structure and Functioning31 3.5Conclusion36 4.Statistical Analysis38 4.1Data39 4.1.1Corporate Governance Rating Data39 4.1.2Financial Data39 4.1.3Analysis of Omission [...]