Asset revaluations, future firm performance and firm-level corporate governance arrangements: New evidence from Brazil

2012 ◽  
Vol 44 (2) ◽  
pp. 53-67 ◽  
Author(s):  
Alexsandro Broedel Lopes ◽  
Martin Walker
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Firm Level ◽  
New Evidence ◽  
Governance Arrangements

scholarly journals Quality of governance and the construction of governance indices: evidence from Spain

2007 ◽  
Vol 5 (1) ◽  
pp. 355-371
Author(s):  
Eloisa Pérez de Toledo ◽  
Evandro Bocatto
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Investor Protection ◽  
Extensive Literature ◽  
Firm Level ◽  
Public Companies ◽  
Corporate Governance Mechanisms ◽  
And Performance ◽  
Future Growth

Corporate governance is a set of mechanisms relevant to economic efficiency since it can minimize agency problems. The question is to determine how governance and firm performance interact. Recent research shows that firm-level corporate governance mechanisms are more important in countries with low investor protection, suggesting that firms can partially compensate for ineffective legal environments. Within this context, the objective of this paper is to construct a robust proxy for quality of corporate governance for the Spanish public companies. Thus, after providing an extensive literature review on the field of corporate governance and its interaction with firm performance, we construct a governance index (GOV-I) for a sample of 97 Spanish non-financial public companies. Finally, we assess the determinants of governance in the case of Spain. The results show a significant relationship between governance and performance, future growth opportunities and size, demonstrating that Spanish firms adopt better standards of governance to compensate for the low level of investor protection holding in the country.

scholarly journals Risk-Antecedents of Firms and Strategic Mediators – New Evidence from a Cross-Country Analysis

2021 ◽  
Vol 24 (1) ◽  
pp. 3-35
Author(s):  
Ranjan DasGupta ◽  
Monika Dhochak
Keyword(s):  
Corporate Governance ◽  
Emerging Market ◽  
Empirical Literature ◽  
Mediating Effects ◽  
Firm Risk ◽  
Firm Level ◽  
Country Level ◽  
Country Analysis ◽  
Cross Country ◽  
New Evidence

We examine the strength and nature of firm aspiration and expectation as strategic mediators in the association of risk antecedents and firm risk, after exploring the possible impact of such antecedents on firm aspiration, and firm aspiration’s preliminary influence on firm risk. Empirical literature is mostly silent about risk antecedents of firms in an emerging market or cross-country context, and to the best of our knowledge, the mediators proposed in this study are yet to be explored. We report strong significant positive mediating effects of firm aspiration and expectation in association of risk antecedents and firm risk. Our results also validate that all studied risk antecedents, except corporate governance- composition, significantly influence aspiration and expectation mediators and firm risk in line with our hypotheses. Our results also hold true after controlling for firm-level and country-level heterogeneities and conducting two additional robustness tests.

scholarly journals Corporate governance and firm performance: New evidence from Brazil

2011 ◽  
Vol 8 (4) ◽  
pp. 527-531
Author(s):  
Mariana Vieira ◽  
Andre Carvalhal da Silva ◽  
Otavio Figueiredo
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Positive Relation ◽  
Academic Literature ◽  
Future Performance ◽  
Quality Of Governance ◽  
And Performance ◽  
New Evidence ◽  
The Relationship

The relationship between governance and firm performance has been vastly studied in the academic literature. Although most studies indicate a positive relation between governance and performance, this result is not clear and conclusive to many experts. This paper uses a new methodology to analyze the relation between governance and performance. We compute the change in the quality of governance and classify the firms into three groups (positive, neutral and negative variation). Then we calculate the current and future performance for each group and check if there is a relation between changes in governance and firm performance. Analyzing Brazilian data from 2002 to 2008, our results indicate that positive (negative) changes on corporate governance are associated with positive (negative) changes on firm performance

scholarly journals “Governance” premium? Evidences from the nine emerging markets of Asia

2008 ◽  
Vol 6 (Special Issue 1) ◽  
pp. 6-14
Author(s):  
Chien-An Wang ◽  
Lin Lin ◽  
Ming-Yuan Li
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Emerging Markets ◽  
Stock Return ◽  
Cost Of Capital ◽  
Stock Exchange ◽  
Firm Level ◽  
Fundamental Value ◽  
Accounting Reports ◽  
The Relationship

This paper hypothesizes the relationships of corporate governance, firm performance, and cost of capital, using the firm-level sample from the nine emerging markets of Asia in 2001 and 2002. Our empirical results confirmed the relationship between the corporate governance and firm performance, measured by the stock return and the rate return on asset, is not significant. Evidence implied that the stock return of emerging markets may be largely influenced by unknown but irrational factors, and their accounting reports of the companies listed in such stock exchange are not trustworthy due to window-dressing. The fundamental value and the value of corporate governance are thus not incorporated into the re-evaluation of the prices of the related stocks. However, empirical evidence also indicated that the firms with better corporate governance can reduce their costs of capital in a defensive manner, realized when a raise of fund is required.

The Relationship Between CSR, Corporate Governance, and Firm Performance

2020 ◽  
pp. 289-304
Author(s):  
Souhaila Kammoun ◽  
Sahar Loukil ◽  
Youssra Ben Romdhane ◽  
Abdelmajid Ibenrissoul
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Governance Mechanism ◽  
Firm Level ◽  
Social Commitment ◽  
Level Data ◽  
Drivers Of Csr ◽  
Data Survey ◽  
Social Engagements ◽  
The Impact

Research has been conducted to extend our understanding of CSR by revealing CG mechanism antecedent effects on firm social engagements. In spite of this, few studies aimed to understand the impact of the performance of those mechanisms on CSR. To our knowledge, our study is the first to measure CG performance and its role in the expansion of CSR in an emerging country. We also analyze some component of firm performance that could potentially affect a firm's social commitment. Using a data survey questionnaire consisting of 37 items assessing CSR engagement measured by a self- constructed index and firm level data of 76 listed Moroccan firms, empirical results underline the impact of corporate governance performance and firm's performance on CSR. These results suggest that governance mechanism performance and firm performance are principal drivers of CSR particularly for big business. Debts have shown a reducing effect. Thus, our study of CSR commitment index allows for a clearer and more robust assessment of CG on Moroccan firm CSR activities.

scholarly journals Corporate governance and firm performance: Evidence from Ghanaian listed companies

2007 ◽  
Vol 4 (2) ◽  
pp. 123-132 ◽  
Author(s):  
Anthony Kyereboah-Coleman ◽  
Charles K.D. Adjasi ◽  
Joshua Abor
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Stock Exchange ◽  
Governance Structures ◽  
Board Structure ◽  
Board Size ◽  
Firm Level ◽  
Mean Values ◽  
Listed Firms ◽  
Tier System

Well governed firms have been noted to have higher firm performance. The main characteristic of corporate governance identified include board size, board composition, and whether the CEO is also the board chairman. This study examines the role corporate governance structures play in firm performance amongst listed firms on the Ghana Stock Exchange. Results reveal a likely optimal board size range where mean ROA levels associated with board size 8 to 11 are higher than overall mean ROA for the sample. Significantly, firm performance is found to be better in firms with the twotier board structure. Results show further that having more outside board members is positively related to firm performance. It is clear that corporate governance structures influence firm performance in Ghana, indeed within the governance structures the two-tier board structure in Ghana is seen to be more effective in view of the higher firm level mean values obtained compared to the one-tier system.

scholarly journals The effect of board composition and managerial pay on Saudi firm performance

2021 ◽  
Author(s):  
Mamdouh Abdulaziz Saleh Al-Faryan
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Positive Relationship ◽  
Board Composition ◽  
Board Independence ◽  
Policy Makers ◽  
Listed Firms ◽  
The Impact ◽  
Managerial Pay ◽  
Governance Arrangements

AbstractUsing five empirical methodologies to account for endogeneity issues, this study investigates the effects of board independence and managerial pay on the performance of 169 Saudi listed firms between 2007 and the end of 2014. Studying board independence and managerial pay utilises the main internal governance mechanism in relation to firm performance; therefore, the effect of the 2009 exogenous regulatory shock on board independence was also examined to learn whether it impacted firm performance. The empirical results show that the board composition–performance relationship is endogenous. Strong evidence is found through the dynamic generalised method of moments estimation, which indicates that board composition has a positive relationship with return on assets, and poor past performance of listed firms has a negative impact on the current level of performance. The difference-in-differences approach results show a positive relationship between board composition, stock returns, and Tobin’s Q. The findings also reveal that managerial pay has a positive relationship with firm performance, although when endogeneity is considered, there is a smaller positive relationship and a decrease in significance levels. Thus, pay-for-performance in Saudi Arabia matters, and firms are not simply controlled by the government. The results of this study have implications for both policy makers and investors. In particular, policy makers and Saudi regulators can evaluate the impact of Saudi corporate governance arrangements and, in so doing, highlight changes in corporate governance arrangements that need to be made to achieve their economic objectives, such as Vision 2030. This study also contributes to the literature by showing the importance of considering endogeneity in studies.

The Determinants of Firm-Specific Corporate Governance Arrangements, IFRS Adoption, and the Informativeness of Accounting Reports: Evidence from Brazil

2016 ◽  
Vol 15 (2) ◽  
pp. 101-124 ◽  
Author(s):  
Alexsandro Broedel Lopes ◽  
Martin Walker ◽  
Ricardo Luiz Menezes da Silva
Keyword(s):  
Corporate Governance ◽  
Essential Elements ◽  
Accounting Quality ◽  
Firm Level ◽  
Ifrs Adoption ◽  
Cross Listing ◽  
Governance Index ◽  
Corporate Governance Quality ◽  
Accounting Reports ◽  
Governance Arrangements

ABSTRACT In this study we investigate the complementary effect of firm-level incentives and IFRS adoption on the informativeness of accounting reports in Brazil. Using a specially constructed corporate governance index—Brazilian Corporate Governance Index (BCGI)—we show that the quality of corporate governance is linked to the growth opportunities firms face. Consistent with the argument that accounting numbers are essential elements of corporate governance arrangements, we show that improvements in corporate governance are associated with economically material and statistically significant improvements in indicators of accounting quality. We also show that corporate governance quality and accounting quality are also positively affected by cross-listing, although cross-listing is not the only driver of either of these quality choices. Our results also show that IFRS adoption leads to an increase in the informativeness of accounting reports in Brazil, especially for firms that do not possess the ex ante incentives to produce high-quality financial statements.

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