Endogeneity and the relationship between board structure and firm performance: a simultaneous equation analysis for the Athens Stock Exchange

2010 ◽  
Vol 31 (6) ◽  
pp. 387-401 ◽  
Author(s):  
A. A. Drakos ◽  
F. V. Bekiris
Keyword(s):  
Firm Performance ◽  
Stock Exchange ◽  
Simultaneous Equation ◽  
Board Structure ◽  
Equation Analysis ◽  
Athens Stock Exchange ◽  
The Relationship

scholarly journals Impact of board structure on firm performance: evidence from an emerging economy

2017 ◽  
Vol 11 (2) ◽  
pp. 210-228 ◽  
Author(s):  
Qaiser Rafique Yasser ◽  
Abdullah Al Mamun ◽  
Marcus Rodrigs
Keyword(s):  
Firm Performance ◽  
Firm Value ◽  
Stock Exchange ◽  
Economic Value ◽  
Value Added ◽  
Listed Companies ◽  
Board Structure ◽  
Content Type ◽  
Firm Financial Performance ◽  
The Relationship

Purpose The aim of this paper is to examine the association between board demographics and firm financial performance of Karachi Stock Exchange companies and describe the attributes of these firms and their boards. The connection between board structure and firm performance has attracted much attention, especially in emerging economies, yet yielded many inconsistent empirical results. Design/methodology/approach This study examines the relationship between board structure and the performance of Pakistani public listed companies by using a sample of Karachi Stock Exchange 100 (KSE-100) indexed companies. This study exploits the corporate performance by accounting-based measures (return on assets), market-based measures (Tobin’s Q), and economic profit (economic value added). Findings The outcome of the study shows the positive relationship between the board size, minority representation in board, and family director’s in-board and firm performance. The authors also find that, instead of adding value, independent directors in Pakistan are negatively associated with firm value. Research limitations/implications The study is based on KSE-100 indexed companies from 2009 to 2013; however, a large sample and multiple years’ data are required. Practical implications The paper provides empirical evidence that board independence is not necessary for public-listed companies in Pakistan and would be of interest to regulatory bodies, business practitioners, and academic researchers. Originality/value The paper contributes to the literature on corporate governance and firm performance by introducing a framework for identifying and analyzing moderating variables that affect the relationship between board structure and firm performance.

Empirical investigation of relationship between research and development intensity and firm performance: The role of ownership structure and board structure

2019 ◽  
Vol 06 (02) ◽  
pp. 1950016
Author(s):  
Muhammad Usman Yousaf ◽  
Muhammad Kashif Khurshid ◽  
Aftab Ahmed ◽  
Muhammad Zulfiqar
Keyword(s):  
Firm Performance ◽  
Research And Development ◽  
Ownership Structure ◽  
Stock Exchange ◽  
Outcome Variable ◽  
Board Structure ◽  
Governance Mechanism ◽  
Financial Firms ◽  
The Relationship

Research and development is an emerging competitive advantage to gain maximum market share. This study is conducted to empirically investigate the relationship between research and development intensity and firm performance in selected non-financial firms listed at Pakistan Stock Exchange (PSX). Moreover, the role of ownership structure and board structure have been evaluated between predictor and outcome variable. For this purpose, 27 non-financial firms listed on PSX have been selected for the period of eight years from 2009 to 2016 and unbalanced panel data was obtained. Research and development intensity has been used as an independent variable. ROA, ROE, and TQ are used as measures of financial performance, i.e., dependent variable. Ownership concentration, institutional ownership, and managerial ownership are used as the proxies for ownership structure. Board size, board independence, and board meeting frequency are used as the proxies for board structure. Moreover, firm size, firm age and leverage have also been used as a control variables in data analysis. Based on data analyses, it is concluded that research and development intensity has a positive and significant relationship with all three proxies of firm performance, i.e., ROA, ROE and Tobin’s Q. Afterward, the researchers have investigated the moderating role of ownership structure and board structure between research and development intensity and three proxies of firm performance. It is also concluded that in general ownership structure as well as board structure are negatively moderating the relationship between research and development intensity and firm performance which raises a question mark on the effectiveness of corporate governance mechanism in terms of R&D performance.

scholarly journals A survey on the relationship between stock liquidity with firm performance: A case study of Tehran Stock Exchange

2013 ◽  
Vol 3 (2) ◽  
pp. 635-640 ◽  
Author(s):  
Hasan Ghalibaf Asle ◽  
Mohammad Khodaei Valahzaghard ◽  
Babak Asadi Ahranjani
Keyword(s):  
Firm Performance ◽  
Stock Exchange ◽  
Stock Liquidity ◽  
The Relationship

scholarly journals Exploring Linkages Between Corporate Governance and Business Performance: Does Good Corporate Governance Lead to Enhanced Business Value?

2020 ◽  
Vol 27 (1) ◽  
pp. 37-61
Author(s):  
Tirthankar Nag ◽  
Chanchal Chatterjee
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Business Performance ◽  
Stock Exchange ◽  
Random Effect ◽  
Corporate Boards ◽  
Market Returns ◽  
Good Corporate Governance ◽  
Governance Practices ◽  
The Relationship

This study explores the influence of corporate governance practices in corporate boards on firm performance and draws insights on the relative importance for companies for fostering the development of governance mechanisms in business. The study examines 50 firms belonging to the benchmark index of the National Stock Exchange of India (NIFTY 50) and tracks them for over a five-year period. The study uses fixed and random effect econometric models to explore the relationship between corporate governance variables, and firm performance using both accounting returns (EVA, ROA and ROE) and market returns (MVA). The study finds that corporate governance variables significantly improve firm performance or value creation. Especially, multiple directorships, involvement of foreign institutional investors and increase in promoter holdings may significantly affect returns of the firm. The study suggests that it may be useful to foster better corporate governance practices and monitor linkages with firm performance as the effect is influenced by other control variables also.

scholarly journals The Relationship of Insider Trading Announcements, Ownership Structure and Corporate Governance: An Event Study Analysis of Athens Stock Exchange Market Technology Firms

2019 ◽  
Vol 11 (7) ◽  
pp. 13 ◽  
Author(s):  
Ioannis Antoniadis ◽  
Christos Gkasis ◽  
Stamatis Kontsas
Keyword(s):  
Corporate Governance ◽  
Stock Returns ◽  
Event Study ◽  
Insider Trading ◽  
Boards Of Directors ◽  
Stock Exchange ◽  
Time Windows ◽  
Abnormal Stock Returns ◽  
Athens Stock Exchange ◽  
The Relationship

In the present paper, the relationship between corporate governance mechanisms of a firm and stock returns triggered by insider trading announcements is examined. Event study methodology has been used to evaluate the influence of 636 insider trading announcements performed by executives of 14 listed firms in the Athens Stock Exchange, that operate in the technology sector, during the period 2007-2013. The relationship between cumulative abnormal stock returns (CARs), caused by the announcements, and corporate governance characteristics, was then examined for different time windows, both for sales and purchases of stocks by insiders. Our findings suggest that insider trading, especially in purchases, performed by CEOs and members of the Boards of Directors, has a significant effect on stock returns in the long run. More specifically concentrated ownership structures and control were found to have a negative/positive effect in abnormal stock returns of the firms only in long-term periods of time following the announcement of purchases/sales.

scholarly journals Non-linear response of firm investment to q: Evidence from Greek listed firms

2019 ◽  
Vol 9 (1) ◽  
pp. 53-63 ◽  
Author(s):  
Christos Kallandranis
Keyword(s):  
Stock Exchange ◽  
Adjustment Costs ◽  
Firm Investment ◽  
Dynamic Panel ◽  
Dynamic Panel Model ◽  
Listed Firms ◽  
Panel Model ◽  
Multiple Regimes ◽  
Athens Stock Exchange ◽  
The Relationship

A dynamic-panel model is applied in order to empirically investigate the relationship between business fixed investment and Tobin’s q for the firms listed in the Athens Stock Exchange (ASE). In particular, we search for non-linearities in the underlying relationship between investment and fundamentals, consistent with the presence of multiple regimes. The empirical results support a discontinuity identifying two-regimes: (a) wherein the first (for values of q below a certain threshold) investment is inelastic to q, while in the second it exhibits a positive relationship, and b) a further non-linearity expressed in a concavity of the investment- q relationship implying that for the segment where investment reacts to fundamentals positively, it does so at a decreasing rate evidence which is consistent with the presence of non-convexities in adjustment costs

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