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 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 in Corporate Governance written by Syed Walid Reza and published by . This book was released on 2013 with total page 142 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Employees and Corporate Governance written by Margaret M. Blair and published by Brookings Institution Press. This book was released on 2010-12-01 with total page 369 pages. Available in PDF, EPUB and Kindle. Book excerpt: Most scholarship on corporate governance in the last two decades has focused on the relationships between shareholders and managers or directors. Neglected in this vast literature is the role of employees in corporate governance. Yet "human capital," embodied in the employees, is rapidly becoming the most important source of value for corporations, and outside the United States, employees often have a significant formal role in corporate governance. This volume turns the spotlight on the neglected role of employees by analyzing many of the formal and informal ways that employees are actually involved in the governance of corporations, in U.S. firms and in large corporations in Germany and Japan. Examining laws and contexts, the essays focus on the framework for understanding employees' role in the firm and the implications for corporate governance. They explore how and why the special legal institutions in German and Japanese firms by which employees are formally involved in corporate governance came into being, and the impact these institutions have on firms and on their ability to compete. They also consider theoretical and empirical questions about employee share ownership. The result of a conference at Columbia University, the volume includes essays by Theodor Baums, Margaret M. Blair, David Charny, Greg Dow, Bernd Frick, Ronald J. Gilson, Jeffrey N. Gordon, Nobuhiro Hiwatari, Katharina Pistor, Louis Putterman, Edward B. Rock, Mark J. Roe, and Michael L. Wachter. Margaret M. Blair is a senior fellow in Economic Studies at the Brookings Institution and author of Ownership and Control: Rethinking Corporate Governance for the Twenty-first Century (Brookings, 1995). Mark J. Roe, professor of business regulation and director of the Sloan Project on Corporate Governance at Columbia Law School, is the author of Strong Managers, Weak Owners: The Political Roots of American Corporate Finance (Princeton, 1996).

Download or read book Essays on Corporate Governance and Communication Within the Firm written by Mr. Doron Yizhak Levit and published by . This book was released on 2010 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: My dissertation is focused primarily on the effect of communication between shareholders, senior management, and the company's board of directors, on the governance of the firm. In the first study I explore the advisory role of a target company board in takeovers. I show that coordination failures among target shareholders, such as free-riding, limit the board's ability to properly advise shareholders whether accepting a takeover offer is in their best interest based on its information. I demonstrate that even if there are no agency problems and the board's objective is to maximize shareholders' value, the board conceals information from shareholders in equilibrium, and shareholders might be better off if they could commit to ignoring the board's advice. By contrast, when the board is biased and behaves opportunistically, it becomes possible for information to be fully revealed and, consequently, shareholders' welfare might increase. More broadly, the study emphasizes the potential value of an expert's bias when advising a group of agents whose collective actions must be coordinated. I discuss shareholder activism in takeovers and communication during debt restructuring as examples for possible applications. In the second study (joint work with Nadya MalenkoSPAN class=skype_name_highlight_offline title=nadya.zhukova height="12px" width="15px" SPAN class=skype_name_mark begin_of_the_skype_highlighting SPAN class=skype_name_mark end_of_the_skype_highlighting ) we analyze whether non-binding voting for shareholder proposals is an effective mechanism for conveying shareholder expectations. Shareholder proposals are a common form of shareholder activism. Voting for shareholder proposals, however, is non-binding in the sense that the management has the authority to reject the proposal even if it received majority support from shareholders. We show that in contrast to binding voting, non-binding voting generally fails to convey shareholder views when the interests of the manager and shareholders are not aligned. Surprisingly, the presence of an activist investor who can discipline the manager may enhance the advisory role of non-binding voting only if there is substantial conflict of interest between shareholders and the activist. In the final part of the dissertation, I study the implications of board members' expertise, and concerns for being seen as experts, on the incentives of the manager to collect information and communicate it to the board. The expertise of the board is particularly important in times when shareholders cannot rely on the manager to provide information. Our results demonstrate that even when the board acts in its shareholders' best interests, the board's expertise can harm shareholders' value by discouraging an opportunistic manager from collecting valuable information. This effect takes place exactly in times when a priori the manager and shareholders disagree on the optimal strategy. Moreover, we show that concerns for its reputation induce the board to act more like an expert, even when it is not. The board under-reacts to useful public information, and thereby gives more power to the manager on the expense of shareholders' value.

Download or read book Essays in Corporate Governance written by Pedram Fardnia and published by . This book was released on 2020 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Corporate governance is a heavily researched area in the finance literature, with previous studies exploring a multitude of variables that describe a firm's board structure, management, compensation, etc., and how they affect corporate decisions, firm performance, and various other aspects of corporate life. Corporate governance has important implications for nearly all business entities, yet many research questions within the field still remain unaddressed. In the first part of my thesis, I explore the relation between corporate governance practices and shareholder litigation. At the same time, I explore whether firms improve any shortcomings in their governance structure and/or governance practices post-litigation. We find evidence that variables that describe a firm's corporate governance, the compensation of its CEO, as well as the CEO's characteristics have a significant influence on the firm's litigation risk. Our results further show that, after a lawsuit, sued firms tend to improve their corporate governance and the proportion of their independent directors. In summary, our results provide important insights into the role of ex-ante active monitoring (via the board of directors) versus ex-post passive monitoring (via shareholder litigation), and how litigation as a passive monitoring device can cause firms to improve their active monitoring. In another research, I choose the aviation industry and examine the potential effects corporate governance policies may have on the safety record of that industry. Pilot errors and mechanical failures, which are responsible for 75% of all accidents, are, to some extent, preventable because they relate to the way an airline company is managed. My findings reveal that airline safety is significantly affected by a series of firm-level characteristics that describe an airline's governance as well as its financial well-being. In addition, I find that airline safety is affected by a variety of country-level factors that characterize the legal, institutional, and economic environment of a given country, as well as its air transport infrastructure. The results of this study have important policy implications for both the airline industry and regulators. To allocate resources more efficiently, regulators may find it beneficial to focus their supervision on airlines with poor governance practices as well as airlines that are in financial distress.

Download or read book Corporate Governance in Contention written by Ciaran Driver and published by Oxford University Press. This book was released on 2018-06-04 with total page 337 pages. Available in PDF, EPUB and Kindle. Book excerpt: Corporate governance is a complex idea that is often inappropriately simplified as a cookbook of recommended measures to improve financial performance. Meta studies of published research show that the supposed benign effects of these measures - independent directors or highly incentivised executives - are at best context-specific. There is thus a challenge to explain the meaning, purpose, and importance of corporate governance. This volume addresses these issues. The issues discussed centre on relationships within the firm e.g. between labour, managers, and investors, and relationships outside the firm that affect consumers or the environment. The essays in this collection are the considered selection by the editors and the contributors themselves of what are seen as some of the most weighty and urgent issues that connect the corporation and society at large in developed economies with established property rights. The essays are to be read in dialogue with each other, giving a richer understanding than could be obtained by shepherding all contributions into a single mould. Nevertheless taken together they demonstrate a shared sense of deep concern that the corporate governance agenda has been and still is on the wrong track. The contributors, individually and collectively, identify in this compendium both a research programme and a platform for change.

Download or read book Essays on Acquisition of Newly Listed Firms and Managerial Compensation written by Luyao Pan and published by Open Dissertation Press. This book was released on 2017-01-27 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation, "Essays on Acquisition of Newly Listed Firms and Managerial Compensation" by Luyao, Pan, 潘璐瑶, was obtained from The University of Hong Kong (Pokfulam, Hong Kong) and is being sold pursuant to Creative Commons: Attribution 3.0 Hong Kong License. The content of this dissertation has not been altered in any way. We have altered the formatting in order to facilitate the ease of printing and reading of the dissertation. All rights not granted by the above license are retained by the author. Abstract: This thesis consists of two essays in corporate finance, one on newly listed firms' post-IPO activities as acquisition targets and the other on corporate executive compensation. In the first essay, I examine a large sample of U.S. newly listed firms to analyze their likelihood of becoming a takeover target. I find that 27 percent of newly listed firms are acquired within five years after the IPO, which is compared with the seasoned-firm counterpart of 17 percent. This difference is economically large, statistically significant, and robust to various firm and market characteristics controls. Several recent studies have reported newly listed firms' active activities as an acquirer. Contributing to this literature, my finding further identifies an active role of IPO firms as a takeover target. My finding is consistent with the presumed motivation of firms' going public for a "double-exit" strategy: To sell the shares through a takeover after the company goes public. Economic rationales for this strategy include advantages from auctioning off a minority stake to dispersed shareholders and more efficient bargaining in takeover negotiations due to increased share liquidity and reduced uncertainty after the IPO. Therefore, going public can be an optimal first step in the process of selling a company. In further support of this motivation, I find that IPO firms, as an acquisition target, receive higher takeover premiums than do comparable privately held targets and seasoned target firms. In conclusion, my findings are consistent with the double-exit strategy predicted by theory, suggesting that IPOs facilitate subsequent sales of the companies and that the strategy is economically justified. In the second essay, I study executive compensation under the Japanese corporate governance system. In March 2010, the Japanese regulator enacted the first legislation regarding the disclosure of director compensation to named individuals. With access to the first publicly available data for Japanese executives, I document comprehensive evidence on the level, structure, and mechanisms of CEO compensation. My findings reveal Japanese practices in CEO pay that differ from the well-known Anglo-American model in significant ways. Its distinct features include base salary dominance and unusually low levels of pay and pay variation. I also identify significant impacts on the compensation system of corporate governance and U.S. influence factors, such as keiretsu groups, financial institutions, US-style compensation committees, and cross-listing on US stock exchanges. DOI: 10.5353/th_b5295523 Subjects: Executives - Salaries, etc Consolidation and merger of corporations

Download or read book Essays on Corporate Governance written by Tih Koon Tan and published by . This book was released on 2010 with total page 83 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation is composed by two essays that explore corporate governance issues in S & P firms. The first essay examines changes in corporate governance after a firm gets added to the S & P 500 index? Using firms added from 1994 to 2007, this paper examines how governance mechanisms change for these firms. Specifically, I look at both the overall governance and details on how each mechanism changes. I find that governance improves after being added to the index. Controlling for firm size, leverage, prior firm performance, and growth opportunities, the market reacts positively to governance improvements as a whole. In addition, changes in governance are positively associated with changes in operating performance. In the second essay, the departure of a CEO often raises questions about who will replace him/her. This study examines the homogeneity/heterogeneity nature of the internal labor market using a novel measure, a heterogeneity index, which captures the concentration of executive compensation levels. I find that a more homogeneous internal labor market is associated with (1) a greater likelihood of an internal replacement, (2) a higher probability of a CEO turnover, and (3) a bigger tournament prize. In addition, the negative performance-turnover relationship is strengthened by a more homogeneous internal labor market. The heterogeneity index seems to proxy for internal labor market competition.

Download or read book Corporate Governance written by Joachim Schwalbach and published by Springer Science & Business Media. This book was released on 2012-12-06 with total page 218 pages. Available in PDF, EPUB and Kindle. Book excerpt: Corporate Governance is a subject of great interest to academics, investors, and politicians throughout the world. Corporate governance is associated with the way firms are managed and controlled. Countries have adopted different governance systems to resolve the corporate governance issues. Anglo-Saxon systems differ from European and Japanese systems, and Eastern Europe and China, for instance, experiment with the way private organizations should be governed. Despite the great interest and intense debate, empirical evidence on the effectiveness of various governance systems is still sparse. This book brings together most current contributions from various perspectives and from an international angle. The book is an essential reading for academics, university students, practitioners, investors, politicians, and legislators.

Download or read book Essays in Corporate Governance written by Jared Ian Wilson and published by . This book was released on 2016 with total page 332 pages. Available in PDF, EPUB and Kindle. Book excerpt: Corporate governance examines the mechanisms through which managers and directors are incentivized to act in the best interests of shareholders. The three essays of this dissertation focus on internal and external control mechanisms in the CEO and director labor markets and their effectiveness in aligning the interests of mangers, directors and shareholders. The first essay examines the influence of industry shocks and peer firms on board monitoring decisions. Recent evidence documents that industry factors influence CEO turnover decisions, despite agency theory's proposition that boards should filter out industry shocks when evaluating CEO performance. Consistent with industry dynamics affecting board monitoring decisions, I document that industries exhibit CEO turnover waves. During these periods of abnormally high turnover, executives face a heightened threat of discipline as boards increase turnover-performance sensitivity. This increased scrutiny inside waves represents a meaningful managerial incentive that curbs value-destroying behavior of CEOs. Overall, this essay documents the existence of CEO turnover waves, which motivate boards to monitor management differently and have real effects on CEO behavior and shareholder wealth. The second essay examines the shareholder wealth effects associated with a required venue for shareholder litigation. In response to the increased threat of shareholder litigation filed in multiple states, firms have adopted exclusive forum provisions which limit lawsuits to a single venue of the board's choice. It is unclear whether these provisions impose increased costs on shareholders' ability to discipline managers and directors or provide benefits to shareholders by eliminating multi-forum and duplicative lawsuits. I use the Delaware Chancery Court's announcement upholding the adoption of these provisions as a natural experiment to evaluate their wealth implications. Overall, this essay suggests that exclusive forum provisions create value for shareholders by specifying a required venue for corporate litigation. The final essay, with David Becher and Ralph Walkling, examines the stability and composition of acquirer boards around mergers and the director characteristics associated with selection for the post-merger board. Our results indicate that the post-merger board changes substantially and variation is significantly different from both non-merger years and non-merging firms. Adjustments reflect firms upgrading skills associated with executive and merger experience and bargaining between targets and acquirers, rather than agency motives. Conversely, director selection at non-merging firms is driven by general skills and diversity. Our analyses provide insight into the dynamic nature of board structure and characteristics valued in the director labor market.

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 Ownership and Governance of Companies written by Jonathan Michie and published by Routledge. This book was released on 2021-06-29 with total page 277 pages. Available in PDF, EPUB and Kindle. Book excerpt: Apartheid South Africa was often thought to run in the interests of the business elite. Yet 27 years after apartheid, those business interests remain largely entrenched. Why? Did the South African business community play a role in engineering this outcome – perhaps recognising the apartheid era was over, and jumping ship in time? Conversely, the mission of the ANC was widely perceived to be to shift wealth and power into the hands of the whole community. Yet despite ‘black empowerment’ measures, corporate ownership remains largely in white hands – and certainly in the hands of an elite few, even though no longer restricted to whites. This picture is replicated across the global south, where corporate ownership tends to be concentrated in the hands of an elite, rather than being more democratically spread. Why have alternative corporate forms not been pursued more vigorously, with ownership in the hands of customers, employees, and local communities? In the case of South Africa, where the majority of customers and employees are black, this could have delivered on the ANC’s mission to replace the apartheid era with a democratic one – in terms of wealth, incomes and power, as well as in terms of voting and civic rights. This edited volume explores all these questions and looks at ways to align corporate forms with economic and social goals. The chapters in this book were originally published as special issues of International Review of Applied Economics.

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 The link between the resource based theory and corporate politics written by Maxwell Olokundun and published by GRIN Verlag. This book was released on 2015-01-07 with total page 15 pages. Available in PDF, EPUB and Kindle. Book excerpt: Seminar paper from the year 2014 in the subject Business economics - Business Management, Corporate Governance, grade: B, , language: English, abstract: The main focus of the resource based theory of a firm is the acquisition of sustainable competitive advantage over other firms in the industry (Olalla, 1999). The uniqueness of a firm’s resources is considered as the basis for the strategic competitive edge achieved by the firm (Acedo, Barroso, and Galan, 2006). The concept of corporate politics also suggest that individuals express political behaviour targeted at acquiring power or a competitive edge over other individuals aimed at achieving personal or group interests within an organization (Vigoda, 2000). Thus this study seeks to explore a possible linkage between the themes of the resource based theory and the expression of political behaviours within a firm.

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 Essays in Corporate Governance written by Lixiong Guo and published by . This book was released on 2012 with total page 203 pages. Available in PDF, EPUB and Kindle. Book excerpt: