Private Equity Characteristics, Corporate Governance and Firm Value: Empirical Evidence from Small and Medium‐sized Enterprises*

2020 ◽  
Vol 34 (2) ◽  
pp. 163-183
Author(s):  
Li Jiujin ◽  
Rakesh Gupta ◽  
Li Haihong ◽  
Shao Qiang
Keyword(s):  
Corporate Governance ◽  
Empirical Evidence ◽  
Firm Value ◽  
Private Equity

Corporate governance and corporate social responsibility interface: a case study of private equity

2020 ◽  
Vol 20 (4) ◽  
pp. 703-717 ◽  
Author(s):  
Virgo Süsi ◽  
Krista Jaakson
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Firm Value ◽  
Private Equity ◽  
Resource Dependence Theory ◽  
Medium Size ◽  
Content Type ◽  
Corporate Social

Purpose This paper aims to explore why private equity (PE) cares about corporate social responsibility (CSR) of its investees given their relatively short investment time-horizon and how it designs corporate governance (CG) bundle to achieve both financial and CSR goals of the private firms it invests in. Design/methodology/approach Case study design is applied to get deeper insights on the why and how questions posed. Analysis is based on triangulation of secondary data and in-depth interviews with both PE and their investee firms. Findings The authors find that long-term sustainability supported by CSR increases firm value. They also outline specific CG bundle that the PE uses to achieve both its financial and CSR goals. CG mechanisms appeared to reflect agency theory, but even more resource dependence theory. Practical implications The outlined CG bundle could be used as a template for all types of private firm owners to improve both financial and CSR performance of the firm. Originality/value The paper adds to fragmented area of CG and CSR interface. The authors specifically focus on several under-researched contexts of this interface: private small and medium size firms (SMEs), emerging markets and PE investors.

scholarly journals PENGARUH PENGHINDARAN PAJAK TERHADAP NILAI PERUSAHAAN YANG DIMODERASI OLEH CORPORATE GOVERNANCE DAN KEPEMILIKAN MAYORITAS

2018 ◽  
Vol 12 (2) ◽  
pp. 126-145
Author(s):  
Tiara Ulfa Inanda ◽  
Eddy Suranta ◽  
Pratana Puspa Midiastuty
Keyword(s):  
Corporate Governance ◽  
Linear Regression ◽  
Multiple Linear Regression ◽  
Empirical Evidence ◽  
Firm Value ◽  
Tax Avoidance ◽  
Ranking List ◽  
Majority Shareholder

This study aims to provide empirical evidence about the effect of tax avoidance on firm value is moderated by corporate governance and majority shareholder. This study using a sample of 13 non-financial companies that listed on Corporate Governance Perception Index (CGPI) ranking list. This research uses 3 hypotheses. data were analyzed using multiple linear regression using SPSS 22.0 program. The results showed that tax avoidance has no significant effect on firm value, corporate governance that moderates tax avoidance affects the firm's value and the majority shareholder that moderates tax avoidance does not affect the firm's value.

scholarly journals Large changes in board size, corporate governance and firm value

2009 ◽  
Vol 7 (2) ◽  
pp. 440-450
Author(s):  
Yixi Ning ◽  
Massoud Metghalchi ◽  
Jonathan Du
Keyword(s):  
Corporate Governance ◽  
Empirical Evidence ◽  
Firm Size ◽  
Firm Value ◽  
Board Independence ◽  
Board Structure ◽  
Board Size ◽  
Good Opportunity ◽  
Long Run

We find that substantial changes in board size, either an increase or a decrease of three or more directors at one time, are permanent movements rather than temporary changes, but the large changes are followed by small reversal in the subsequent years. Empirical evidence shows that all types of directors (inside, affiliated, and independent) are strongly affected by board size expansions (or reductions). Large changes in board size provide a good opportunity for a firm to optimize its board structure by increasing board independence and retiring elder directors. Further analysis indicates that such substantial changes in board size are associated with more frequent board meetings, a higher likelihood of CEO transitions, and firm size expansions. However, we find no evidence that large decreases (or increases) in board size add (or destroy) firm value for shareholders in the long run.

scholarly journals Faktor-Faktor Yang Mempengaruhi Nilai Perusahaan Dengan Moderasi GCG

2020 ◽  
Vol 24 (3) ◽  
pp. 468
Author(s):  
Henny Wirianata
Keyword(s):  
Corporate Governance ◽  
Capital Structure ◽  
Empirical Evidence ◽  
Firm Size ◽  
Firm Value ◽  
Stock Exchange ◽  
Institutional Ownership ◽  
Manufacturing Companies ◽  
Good Corporate Governance

The objective of this study is to obtain empirical evidence about the influence of capital structure, profitability, firm size, and good corporate governance (GCG) towards firm value of manufacturing companies listed in Indonesia Stock Exchange period 2016-2018. The data were tested in this research using EVIEWS 10. The results show that capital structure proxies by DER and profitability proxies by NPM have positive and significant effect towards firm value. Meanwhile, profitability proxies by ROA, firm size, and GCG proxies by institutional ownership have negative and significant effects towards firm value. The results also show that institutional ownership could not moderated the effects of capital structure, profitability, and firm size towards firm value of manufacturing companies listed in Indonesia Stock Exchange period 2016-2018.

scholarly journals Impact of Private Equity Trading Platforms on Firm Value and Corporate Governance

2020 ◽  
Vol 49 (4) ◽  
pp. 545-564
Author(s):  
Daehyeon Park ◽  
Doojin Ryu
Keyword(s):  
Corporate Governance ◽  
Stock Market ◽  
Firm Value ◽  
Private Equity ◽  
Stock Trading ◽  
Dual Agency ◽  
Equity Trading ◽  
Microstructure Model ◽  
External Shareholders ◽  
The Impact

This study presents a theoretical model to analyze the effect of private equity trading platforms, which have recently experienced rapid growth, on the investment decisions of unlisted companies. As the value of unlisted companies has soared, demand for these stocks has increased. Accordingly, platforms for the brokerage of private stock transactions are being activated. We find that these platforms increase the liquidity in the unlisted stock market by easing regulations on trading of these stocks, further enhancing the firm values and corporate governance of the corresponding firms. In addition, a significant number of unlisted companies are family-owned, in which a manager is also a blockholder. Our study therefore constructs a framework based on a market microstructure model to analyze the impact of unlisted stock trading platforms. In the case of an unlisted firm, a potential dual agency problem exists where the manager, who is also a blockholder, invests less than the external shareholders’ profit-maximizing levels. We find that managers have the incentives to increase firms’ investment when the liquidity in the unlisted stock market improves with the growth of the private equity trading platform, implying that these platforms potentially enhance corporate governance of unlisted companies and promote their growth.

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