Download or read book Corporate Governance and Expected Stock Returns written by Andreas Schillhofer and published by Springer-Verlag. This book was released on 2013-03-08 with total page 210 pages. Available in PDF, EPUB and Kindle. Book excerpt: Based on his Corporate Governance Rating (CGR) for German firms, Andreas Schillhofer documents a positive relationship between the CGR and firm value. In addition, there is strong evidence that expected returns are negatively correlated with the CGR if dividend yields and price-earnings ratios are used as proxies for the cost of capital.

Download or read book Corporate Governance and Expected Stock Returns written by Wolfgang Drobetz and published by . This book was released on 2010 with total page 51 pages. Available in PDF, EPUB and Kindle. Book excerpt: Recent empirical work shows that a better legal environment leads to lower expected rates of return in an international cross-section of countries. This paper investigates whether differences in firm-specific corporate governance also help to explain expected returns in a cross-section of firms within a single jurisdiction. Constructing a corporate governance rating (CGR) for German firms, we document a positive relationship between the CGR and firm value. In addition, there is strong evidence that expected returns are negatively correlated with the CGR, if dividend yields and price-earnings ratios are used as proxies for the cost of capital. Most results are robust for endogeneity, with causation running from corporate governance practices to firm fundamentals. Finally, an investment strategy that bought high-CGR firms and shorted low-CGR firms would have earned abnormal returns of around 12 percent on an annual basis during the sample period. We rationalize the empirical evidence with lower agency costs and/or the removal of certain governance malfunctions for the high-CGR firms.

Download or read book Corporate Governance and Expected Stock Returns Evidence from Germany written by Wolfgang Drobetz and published by . This book was released on 2005 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Corporate Governance Stock Returns Firm Value and Performance written by and published by . This book was released on 2008 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Corporate Governance and Long term Stock Returns written by Theodore Clark Moorman and published by . This book was released on 2005 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Extant literature finds that long-term abnormal stock returns are generated by a strategy based on corporate governance index values (Gompers, Ishii, and Metrick2003). The result is inconsistent with efficient markets and suggests that information about governance is not accurately reflected in market data. Control firm portfolios are used to mitigate model misspecification in measuring long-term abnormal returns. Using a number of different matching criteria and governance indices, no long-term abnormal returns are found to trading strategies based on corporate governance. The effect of a change in governance on firm value is mixed, but some support is found for poor governance destroying firm value. These results have a number of implications for practitioners, researchers, and policy makers.

Download or read book Do Productivity and Governance Matter Their Impact in Stock Returns in European Industrial Companies written by Carlo Bellavite Pellegrini and published by . This book was released on 2011 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: We take into consideration an innovative database of observations, focusing its attention on European data of different countries since the beginning of the Euro area. Our study introduces new control variables to the state variables used by Fama and French. This research considers the impact of specific control variables: the Productivity Index and the Corporate Governance Index on the total annual investment return of 1,058 the listed European industrial companies from January 1st 1996 to December 31st 2006. Both indices have a positive and statistically significant impact on stock returns. Dividing our sample into five different portfolios, both according to market capitalization and equal number of companies, we have clear evidence that lower market capitalization companies receive more benefits from a better level of productivity and governance. While higher capitalization companies have got stronger tools, like market power or political relevance in order to influence their performances and, consequently, their stock returns.

Download or read book Corporate Governance Indicators and Cross sectional Stock Returns written by Nadège Bregnard and published by . This book was released on 2012 with total page 66 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Stock Price Reaction to Supervisory Board Interventions written by Karin Vetter and published by . This book was released on 2015 with total page 27 pages. Available in PDF, EPUB and Kindle. Book excerpt: Within the discussion about an efficient corporate governance system, considerable attention has been paid to the supervisory board's responsibility to monitor top executives raising the question about the value relevance of supervisory board's actions (i.e., control). We conduct an event study analyzing the effect of supervisory board interventions on the value of publicly listed firms in Germany between 2000 and 2006. With our study, we are among the first to empirically test two suppositions by Hermalin Weisbach (1998) which propose a negative stock price reaction when the CEO is fired based on private information of the supervisory board and a positive stock price reaction when the CEO is fired based on public information. Assuming that the amount of information available to the public increases with the media coverage of a company, we expect effects to differ depending on the company's level of media coverage. This is confirmed by our empirical results: Looking at companies receiving low media coverage, we find a negative and significant effect of supervisory board interventions on firm value. Focusing on companies with high media coverage we find that supervisory board interventions have a positive effect on stock prices which is also significant when returns are cumulated over several days. These results supporting the predictions of Hermalin Weisbach (1998) prove to be robust when controlling for company characteristics (in particular size) in a multivariate regression setting.

Download or read book Corporate Governance Failures written by James P. Hawley and published by University of Pennsylvania Press. This book was released on 2011-04-15 with total page 351 pages. Available in PDF, EPUB and Kindle. Book excerpt: Corporate governance, the internal policies and leadership that guide the actions of corporations, played a major part in the recent global financial crisis. While much blame has been targeted at compensation arrangements that rewarded extreme risk-taking but did not punish failure, the performance of large, supposedly sophisticated institutional investors in this crisis has gone for the most part unexamined. Shareholding organizations, such as pension funds and mutual funds, hold considerable sway over the financial industry from Wall Street to the City of London. Corporate Governance Failures: The Role of Institutional Investors in the Global Financial Crisis exposes the misdeeds and lapses of these institutional investors leading up to the recent economic meltdown. In this collection of original essays, edited by pioneers in the field of fiduciary capitalism, top legal and financial practitioners and researchers discuss detrimental actions and inaction of institutional investors. Corporate Governance Failures reveals how these organizations exposed themselves and their clientele to extremely complex financial instruments, such as credit default swaps, through investments in hedge and private equity funds as well as more traditional equity investments in large financial institutions. The book's contributors critique fund executives for tolerating the "pursuit of alpha" culture that led managers to pursue risky financial strategies in hopes of outperforming the market. The volume also points out how and why institutional investors failed to effectively monitor such volatile investments, ignoring relatively well-established corporate governance principles and best practices. Along with detailed investigations of institutional investor missteps, Corporate Governance Failures offers nuanced and realistic proposals to mitigate future financial pitfalls. This volume provides fresh perspectives on ways institutional investors can best act as gatekeepers and promote responsible investment.

Download or read book On the Cross section of Expected Stock Returns written by and published by . This book was released on 2006 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book A History of Corporate Governance around the World written by Randall K. Morck and published by University of Chicago Press. This book was released on 2007-11-01 with total page 700 pages. Available in PDF, EPUB and Kindle. Book excerpt: For many Americans, capitalism is a dynamic engine of prosperity that rewards the bold, the daring, and the hardworking. But to many outside the United States, capitalism seems like an initiative that serves only to concentrate power and wealth in the hands of a few hereditary oligarchies. As A History of Corporate Governance around the World shows, neither conception is wrong. In this volume, some of the brightest minds in the field of economics present new empirical research that suggests that each side of the debate has something to offer the other. Free enterprise and well-developed financial systems are proven to produce growth in those countries that have them. But research also suggests that in some other capitalist countries, arrangements truly do concentrate corporate ownership in the hands of a few wealthy families. A History of Corporate Governance around the World provides historical studies of the patterns of corporate governance in several countries-including the large industrial economies of Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States; larger developing economies like China and India; and alternative models like those of the Netherlands and Sweden.

Download or read book Risk Management and Corporate Governance written by Abol Jalilvand and published by Routledge. This book was released on 2013-05-13 with total page 496 pages. Available in PDF, EPUB and Kindle. Book excerpt: The asymmetry of responsibilities between management and corporate governance both for day-to-day operations and the board’s monthly or quarterly review and evaluation remains an unresolved challenge. Expertise in the area of risk management is a fundamental requirement for effective corporate governance, if not by all, certainly by some board members. This means that along with board committees such as "compensation", "audit", "strategy" and several others, "risk management" committees must be established to monitor the likelihood of certain events that may cause the collapse of the firm. Risk Management and Corporate Governance allows academics and practitioners to assess the state of international research in risk management and corporate governance. The chapters overlay the areas of risk management and corporate governance on both financial and operating decisions of a firm while treating legal and political environments as externalities to decisions undertaken.

Download or read book Multidisciplinary academic research 2012 written by and published by MAC Prague consulting. This book was released on with total page 532 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book International Corporate Governance written by Thomas Clarke and published by Taylor & Francis. This book was released on 2017-05-03 with total page 733 pages. Available in PDF, EPUB and Kindle. Book excerpt: This new edition of Thomas Clarke’s popular International Corporate Governance offers a comprehensive guide to understanding corporate governance as a discipline, while incorporating new case studies and material that takes account of the implications of the global financial crisis and the continuing sustainability crisis.

Download or read book Corporate Governance in Less Developed and Emerging Economies written by Matthew Tsamenyi and published by Emerald Group Publishing. This book was released on 2008-12-01 with total page 565 pages. Available in PDF, EPUB and Kindle. Book excerpt: Corporate governance reform has become an important global policy agenda driven by events such as the 1997 Asian financial crisis, corporate scandals (such as Enron and WorldCom) and the globalisation of capital markets. This book advances debate on corporate governance, accountability and transparency in less developed and emerging economies.

Download or read book Mandated Corporate Social Responsibility written by Nayan Mitra and published by Springer Nature. This book was released on 2019-08-28 with total page 254 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book examines the Indian mandate for Corporate Social Responsibility (CSR) and its implementations in various individual organizations. Although the mandate is applicable only to certain large and stable companies, many believe that India is poised to become the birthplace of social, economic and environmental transformation, given the immense size of the Indian population and its challenging socio-economic index. The book explores the various facets of CSR investigation and places special emphasis on the Schedule VII of the Indian Companies Act of 2013, which defines specific areas of intervention for these companies. In addition, it provides a wealth of first-hand case studies that exemplify the ongoing developments and the fundamental challenges and opportunities of mandated CSR.

Download or read book Corporate Governance A Survey of OECD Countries written by OECD and published by OECD Publishing. This book was released on 2004-04-13 with total page 108 pages. Available in PDF, EPUB and Kindle. Book excerpt: This survey examines the systemic issues at the forefront of the corporate governance debate and discusses how OECD countries have responded.