Download or read book Corporate Governance Mechanisms and Small cap Firm Performance written by Catherine Kelly and published by . This book was released on 2005 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Identifying corporate governance mechanisms to improve firm performance has been at the forefront of policy discussion and research in recent years. Existing research in this area focuses on U.S. based large capitalisation firms. Although some work has been performed on U.S. small caps, little work has been done in the area of governance of small-caps for other countries. Small-caps merit investigation not merely because of alleged performance attributes as first demonstrated by Banz (1981) but also because they represent the largest contingent of firms listed on the exchange. This study extends the international evidence on small-cap governance to Canada, where unlike the U.S., 'best practice' guidelines are provided, but not mandated, there are two legal systems, and multiple class voting structures, which have been suggested to be inimical to performance, are common. We test for the optimal deployment of four governance mechanisms by estimating a simultaneous equation system linking these mechanisms to firm performance, using recent data. The results confirm the interdependence of governance mechanisms and firm performance. CEO ownership and shareholder rights are shown to determine board independence while CEO ownership is shown to depend on the extent of shareholder rights and whether she is also chairperson of the board. When taking endogeneity into account, we find Canadian small-cap firms appear to over utilise debt as a control mechanism. No robustly significant discount is observed for Quebec firms, or for those with multiple voting class shares; we do, however, note a premium for U.S. cross-listing.

Download or read book The Impact of Corporate Governance on the Performance of U S Small cap Firms written by Mingjun Tang and published by . This book was released on 2007 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Impact of Corporate Governance on the Performance of U S Small cap Firms written by Ming Jun Tang and published by . This book was released on 2007 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the interactions between governance mechanisms and performance for US small cap firms over the period from 2000 to 2004. We perform analyses accounting for both simultaneity between the variables and a sample selection bias that may be related to the venue of listing firm's stock. The results demonstrate significant interactions between board independence, firm leverage, CEO ownership, and pay-performance sensitivity. With regard to the impact of governance mechanisms on corporate performance, leverage significantly reduces firm value while strong pay-performance compensation links are beneficial to corporate performance. We also find a weak association between board independence and firm performance. The results do not show a significant relationship between CEO ownership and performance. Another finding is that the passage of the Sarbanes-Oxley Act considerably increases the market value of small cap firms with a rate of return of around 15%, suggesting that the benefits of improved transparency outweigh their potential costs. The results are also consistent with the contention that CEOs may lack the power or will to remove insiders from the boards when firms are required to comply with independence standards.

Download or read book Corporate Governance Mechanisms and Firm Performance written by Shveta Singh and published by Springer Nature. This book was released on 2022-05-12 with total page 204 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book begins by analysing the various corporate governance mechanisms explored in the extant literature and determining their effectiveness in enhancing the firm value using multivariate analysis. The findings are of global relevance as the corporate governance regulations of most countries focus on independent directors as the mainstay of good governance. The empirical evidence from the first objective of this study corroborates the claim that independent directors do not strengthen the firms’ governance quality. The book is one of the few works to have analysed the possible reasons behind the ineffectiveness of the independent directors. Also, in view of the famous concept of the bundle of governance mechanisms, it might be possible that the independent directors strengthen the firms’ governance quality indirectly by strengthening other governance mechanisms. This aspect too has little precedence. This study adopts a novel moderation and mediation approach to analyse the monitoring behaviour of independent directors in relation to other governance mechanisms. The work is a must read for corporate players as well as researchers and scholars studying this discipline.

Download or read book The Changing Face of Corporate Ownership written by Michael J. Rubach and published by Routledge. This book was released on 2013-10-28 with total page 202 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book examines the shareholder activism of institutional investors, and the effect of this activism on portfolio performance. By focusing on 118 institutional investors headquartered in the United States, the book is unique in addressing the shareholder activism of a large sample. Institutional shareholder activism is defined to include both traditional mechanisms of influence (i.e. filing shareholder proposals) and relationship investing. Institutional owners included private and public pension funds, mutual funds, bank trusts, insurance companies, endowments, and foundations. These institutional owners differ substantially, and these differences lead institutions to use their ownership power to pursue different philosophies and actions. Some institutions follow a passive governance policy, While others adopt an activist role. This book seeks to answer four questions: (1) Are institutional owners actively involved in the strategic affairs of companies in their portfolios? (2)Which forms of activism do institutional owners employ (either confrontational mechanisms, such as filing shareholder proposals, or relationship building mechanisms)? (3)Which forms of activism employed are most effective? and (4) Does the institutional type affect its pursuit of shareholder activism? In answering these questions the author suggests new important results that in many cases are contrary to what prior reports of the activities by a small number of institutional owners may intimate.

Download or read book Capital Structure Corporate Governance and Firm Performance of Small and Medium Sized Listed Companies written by Yiming Zhang and published by . This book was released on 2015 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Based on the panel data of small and medium-sized companies listed on A-share market from the year 2003 to 2009, the paper analyzes the effect of capital structure and corporate governance on firm performance. In general, debt constrains are negatively related to firm performance. And the relationship between them is closely dependent on the nature of the controller. The empirical result implies the positive relationship between firm performance and some corporate governance mechanisms, such as duality of CEO and COB, state-controlled, and ownership concentration. Independent directors may do harm to the firm performance of small and medium-sized listed companies. Compensation incentive and equity incentive are both effective. Meanwhile, the gap among managers should be reduced.

Download or read book The Corporate Governance and Performance Relation written by David Tan and published by . This book was released on 2014 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: Compliance with corporate governance best practice is costly for all firms but can be prohibitively expensive for small firms, squeezing margins and depleting funds for reinvestment (Linck, Netter & Yang, 2008). In addition, small firms are not afforded the external governance mechanism of analyst coverage. Since most of the existing analysis of the relation between governance and performance has been conducted on large-cap firms this additional layer of external monitoring may serve as an omitted variable in the governance-performance relation. We therefore analyse a sample of small firms that are more dependent on their internal corporate governance practices and assess the governance performance relation. We apply dynamic panel generalised method of moments (GMM) models to account for the presence of endogeneity and find no evidence of a relation between a firm's corporate governance and its performance.

Download or read book Comparative Research on Earnings Management Corporate Governance and Economic Value written by Vieira, Elisabete S. and published by IGI Global. This book was released on 2021-02-12 with total page 433 pages. Available in PDF, EPUB and Kindle. Book excerpt: New trends are emerging regarding earnings management and corporate governance showing similarities and striking differences in the practices of different countries and economies. These new trends currently shape the field of modern corporate governance with crucial issues being looked at in governance law and practices, accounting systems, earnings quality and management, stakeholder involvement, and more. In order to advance these new avenues in corporate governance, research looks at accounting policies firms use in different opportunistic circumstances in order to manage earnings, the corporate governance practices in different countries, firm performance, and other dimensions of companies. The understanding of these topics is beneficial in understanding the current state of different types of firms and their practices in modern times. Comparative Research on Earnings Management, Corporate Governance, and Economic Value is focused on the investigation of key challenges and perspectives of corporate governance and earnings management and outlines possible scenarios of its development. The chapters explore this new avenue of research and cover theoretical, empirical, and experimental studies related to different themes in the global context of earnings management and corporate governance. This book is ideal for economists, businesses, managers, accountants, practitioners, stakeholders, researchers, academicians, and students who are interested in the current issues and advancements in corporate governance and earnings management.

Download or read book Corporate Governance and Its Effect on the Performance on Family and Non family Companies Listed on the Cyprus Stock Exchange written by Andreas K. Georgiou and published by . This book was released on 2010 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The main aim of this research is to investigate the relationship between corporate governance and performance of firms operating in Cyprus and to apply these findings to a private university in Cyprus, namely the Frederick University of Cyprus (thereafter FUCy). The main objective of the research is to apply the research findings to the improvement of course programmes in accounting and finance and business administration. The research focuses on firms operating in Cyprus. However this research is supported by overseas research in the area. In contrast to most previous studies it was found that family firms (thereafter FFs) have a negative impact on firm performance however the results of the study provide significant evidence that the implementation of corporate governance mechanisms by FFs can lead to performance benefits. It was found that FFs that operate in markets where there is full compliance with the CGC have a positive impact on firm values. Ensuring more effective corporate governance practices and adequate information disclosure are likely to increase the confidence of investors in the firm and make the FFs less risky to invest in. This will result in lower costs of capital and higher firm values as a result. Furthermore, the results of this study generally suggest that the adoption of corporate governance mechanisms has some important implications for FFs in the CSE. Corporate governance can greatly assist the FF sector via the introduction of better management practices and greater opportunities for growth through the utilisation of non-executive directors. Effective corporate governance mechanisms are likely to result in boards exerting much needed pressure for improved performance by ensuring that the interests of the firms are served. Empirical evidence also shows differences in the effect of corporate governance mechanisms for firms operating in the Alternative Market compared to the Main and Parallel Markets. For firms in the Alternative Market, a market with low corporate governance standards, the effect of several corporate governance variables was significant. For firms operating in AM, it was found that leverage and board size had a significant negative impact on Tobin's Q value, in contrast to the firms operating in the MM & PM. In addition, the number of meetings, insider ownership and the presence of audit committees plays a more important positive role in the AM compared to MM&PM. Substantial differences between markets are also shown for the relationship of corporate governance factors and ROA. However in contrast to this there is significant evidence from the perception of CSE managers that the benefits of corporate governance are not fully understood. Further to this there is also evidence of a lack of corporate governance education to students on accounting and finance and business administration degree programs in Cyprus. This evidence is based on data received from a sample of students and faculty interviews at FUCy, one of three private universities operating in the Republic of Cyprus. The main recommendation of the research is that a new module be introduced for both the accounting and finance and business administration degrees to meet the increasing need for corporate governance education. This will meet the needs of the Cyprus business world where the role of corporate governance in business is increasing. This module will cover the main aspects concerning corporate governance. It should be mentioned that in recent years major professional accounting bodies have increased the coverage of corporate governance in their courses and their syllabi. This addition will result in benefits to the students and improvements in the relevant degree programmes. The research is divided into seven chapters. Chapter 1 is an introduction concerning the research area. Chapter 2 outlines the research statement, objectives, theoretical background and literature review on the subject. Chapter 3 outlines the methodology of the research whereas Chapter 4 outlines the actual project activity and what helped and hindered the activity. Chapter 5 provides an analysis of the findings of the research whereas Chapter 6 provides the conclusions, suggestions for future research and recommendations. Finally chapter 7 is a reflective account of the researcher's personal and professional learning. It also discussed the impact the project has on the various stakeholders.

Download or read book The Association Between Corporate Governance and Firm Performance A Meta Analysis written by Sayla Sowat Siddiqui and published by . This book was released on 2015 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Research suggests that firms with better corporate governance outperform others. However, the literature provides no consensus about the direction or magnitude of the relationship. This paper seeks to clarify the relationship between corporate governance and firm performance by conducting a meta-analysis of 25 previous studies. The analysis has three specific concerns i.e., the moderating effects of (1) legal systems (common law or civil law), (2) governance mechanisms (external or both external and internal governance) and (3) performance measures (accounting or market value). The findings show that the external governance mechanisms measured by antitakeover provisions and market value of firm performance measured by Tobin's Q and market to book value are the key moderators of this relationship. This paper has important implications for regulators and directors by proposing external governance to be an influential factor of firm performance. This paper is also of interest to the investors and companies by highlighting the significant relationship between corporate governance and market value of the firm.

Download or read book Corporate Governance and Real Investment Decisions written by Øyvind Bøhren and published by . This book was released on 2008 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt: Within a broad sample of US manufacturing firms, we find that, controlling for investment opportunities and financial constraints, increased governance quality is associated with higher levels of investment. Increased governance quality is also associated with greater responsiveness of investment to investment opportunities, better firm performance and higher marginal product of capital. Our evidence suggests that better corporate governance drives managers to invest more, and to exert more effort in finding highly productive investment projects and in managing their investment efficiently. Poorly governed firms invest less, implying that they underinvest rather than overinvest. Their low marginal product of capital implies that they invest in less productive assets. Overall, our evidence is consistent with governance mechanisms mitigating problems stemming from managers seeking the 'quiet life'. We find no indication that the firm's governance quality is endogenous to its growth opportunities in our sample. Overall, the results suggests that better governance quality improves the efficiency of capital allocation within firms, and that lax governance produces underinvestment rather than overinvestment.

Download or read book Corporate Governance written by and published by . This book was released on 2009 with total page 184 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Corporate Governance Mechanisms and Firm Performance written by Alexander von Nandelstadh and published by . This book was released on 2003 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Hedge Fund Activism written by Alon Brav and published by Now Publishers Inc. This book was released on 2010 with total page 76 pages. Available in PDF, EPUB and Kindle. Book excerpt: Hedge Fund Activism begins with a brief outline of the research literature and describes datasets on hedge fund activism.

Download or read book The Modern Corporation and Private Property written by Adolf Augustus Berle and published by . This book was released on 1937 with total page 396 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Hard Lessons in Corporate Governance written by Bryce C. Tingle and published by Cambridge University Press. This book was released on 2024-05-30 with total page 315 pages. Available in PDF, EPUB and Kindle. Book excerpt: Examines how and why modern corporate governance practices fail to deliver better economic, managerial, environmental, or social outcomes.

Download or read book Corporate Governance and Contingency Theory written by Abdul Ghofar and published by Springer. This book was released on 2014-11-19 with total page 188 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book analyzes the determinants and effectiveness of corporate governance in an integrated model drawing on contingency theory and employing structural equation modeling (SEM). Business competition as an environmental factor and strategy as an organizational factor are important determinants of corporate governance, while organizational performance and earnings quality are two dimensions of its effectiveness. This book focuses on the relationship between corporate governance and earnings management, and shows that corporate governance is effective in improving earnings quality and reducing accounting and governance risks. The authors also question the relation between corporate governance and company performance and present results of their analysis in this book.