Are Investors Concerned by Annual Corporate Governance Reports? Some Evidence from the Spanish Stock Market

This research analyzes the relationship between free cash flows (FCFs) and the different levels of Corporate Governance present in the Brazilian stock market. To this end, the sample was composed of 212 Brazilian publicly traded companies listed on Brasil, Bolsa, Balcão [B]³, in the period from 2010 to 2018. The methodology consisted of estimating a regression for panel data, using the random effects model, estimating by generalized least square (GLS) and assuming adjustments for autocorrelation and robust standard errors for heteroscedasticity. The results found, for the sample studied, suggest that Corporate Governance levels are positively related to the FCFs. In synergy, when compared to the Traditional level of [B]³, companies listed on the Novo Mercado and Level 2 levels tend to present higher FCF values. In addition, the larger the size of the companies and the higher their return on equity, the higher their FCFs tend to be, just as companies in stages of maturity tend to present lower FCF values. The relevance of this research is based on analyzing, in a stock market subject to imperfections, factors that may affect decisions about the level of cash maintenance of companies, more specifically by evaluating how Corporate Governance mechanisms relate to the theory of FCFs, in a context of potential conflict of interest.

Download Full-text

Ownership structure and corporate governance: What does the data reveal about Saudi listed firms?

Corporate Ownership and Control ◽

10.22495/cocv14i4c2art7 ◽

2017 ◽

Vol 14 (4) ◽

pp. 413-424 ◽

Cited By ~ 2

Author(s):

Mamdouh Abdulaziz Saleh Al-Faryan ◽

Everton Dockery

Keyword(s):

Corporate Governance ◽

Stock Market ◽

Firm Size ◽

Ownership Structure ◽

Ownership Concentration ◽

Listed Firms ◽

Ownership Structures ◽

Market Instability ◽

Positive Effect ◽

Size Variable

In this paper we examine the ownership structure of 169 firms listed on the Saudi Arabian stock market from 2008 to 2014. The analysis uses the testing methodology described by Demsetz and Lehn (1985) to examine the effects of firm and market instability on Saudi ownership structure and additionally, the effect of systematic regulation that imposes constraints on the behaviour of the selected listed firms. We find evidence, for the majority of the ownership structures considered, in favour of the view that firm size, regulation and instability affects ownership structure. The results suggest that the size variable has a positive effect on ownership concentration. Our analysis also shows that instability had some effect on ownership concentration and structure when using the non-linear specification, particularly when using firm specific instability, albeit the effect was stronger when the instability measure was accounting profit returns. Lastly, there is evidence that government-owned firms were mostly affected by regulation while diffused owned firms were affected most by instability than non-government owned firms.

Download Full-text

Recent developments in BRIC’s corporate governance with a focus on Russia – Innovation or imitation?

Corporate Ownership and Control ◽

10.22495/cocv11i3conf1p6 ◽

2014 ◽

Vol 11 (3) ◽

pp. 369-380 ◽

Cited By ~ 1

Author(s):

Udo C. Braendle

Keyword(s):

Corporate Governance ◽

Stock Market ◽

International Standards ◽

Corporate Sector ◽

Draft Code ◽

Bric Countries ◽

The Future ◽

Recent Developments ◽

Code Of Corporate Governance

The practice of joint-stock companies in Russia and other BRIC countries suggests that the development of the corporate sector and the stock market requires a corporate governance level of the companies that corresponds to international standards. The Russian Code of Corporate Conduct was implemented in 2002 and has not been revised for many years. The same is true for Codes of other BRIC countries. 2013 the situation has changed. Russia published a Draft Code of Corporate Governance that should reflect the changes in Russian Corporate Governance over the last 10 years. The paper critically analyses this draft code and gives implications about the future of corporate governance in Russia. We are doing so in comparing Russian Corporate Governance Initiatives with those of other BRIC countries.

Download Full-text

Does herding affect volatility? Implications for the Spanish stock market

Quantitative Finance ◽

10.1080/14697688.2010.516766 ◽

2012 ◽

Vol 12 (2) ◽

pp. 311-327 ◽

Cited By ~ 68

Author(s):

Natividad Blasco ◽

Pilar Corredor ◽

Sandra Ferreruela

Keyword(s):

Stock Market ◽

Spanish Stock Market

Download Full-text