Empirical Evidence on Corporate Governance in Europe. The Effect on Stock Returns, Firm Value and Performance

This study aims to provide a conceptual study of the effect of earnings management on firm value by including corporate governance. as a moderating variable. This paper is a conceptual paper that discusses issues related to earnings management on firm value and the role of corporate governance in minimizing earnings management practices so as to increase firm value. Previous theoretical studies have shown that earnings management is effectively controlled by the corporate governance system and performance. In addition, the results of previous studies found empirical evidence that there is a positive relationship between earnings management and firm value. From the theoretical discussion and previous research, it is concluded that earnings management practices have a positive effect on firm value as moderated by corporate governance.

Download Full-text

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

Jurnal Akuntansi ◽

10.25170/jara.v12i2.85 ◽

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.

Download Full-text

Is More News Good News? Media Coverage of CEOs, Firm Value, and Rent Extraction

Quarterly Journal of Finance ◽

10.1142/s2010139215500202 ◽

2015 ◽

Vol 05 (04) ◽

pp. 1550020 ◽

Cited By ~ 15

Author(s):

Bang Dang Nguyen

Keyword(s):

Stock Returns ◽

Empirical Evidence ◽

News Media ◽

Media Coverage ◽

Firm Value ◽

Good News ◽

Rent Extraction ◽

Tobin's Q ◽

Econometric Methods ◽

Abnormal Stock Returns

This paper provides empirical evidence that media coverage of CEOs, a channel of investor recognition, significantly increases firm value, measured by Tobin’s q. The result is robust to alternative econometric methods and checks of causality. Firms with the highest level of CEO media coverage and positive coverage outperform those with the lowest levels by 8% and 7% per year, respectively, in abnormal stock returns. Media coverage also impacts CEO rent extraction through compensation. Subsequent total pay rise is 4.1% above and beyond what CEOs obtain from the increase in firm value that arises due to media coverage.

Download Full-text

Agency costs, corporate governance mechanisms and performance of public listed family firms in Malaysia

South African Journal of Business Management ◽

10.4102/sajbm.v42i3.496 ◽

2011 ◽

Vol 42 (3) ◽

pp. 17-26 ◽

Cited By ~ 20

Author(s):

H. Ibrahim ◽

F. A. Samad

Keyword(s):

Corporate Governance ◽

Firm Performance ◽

Firm Value ◽

Agency Costs ◽

Family Firms ◽

Family Ownership ◽

Governance Mechanisms ◽

Corporate Governance Mechanisms ◽

Utilization Ratio ◽

And Performance

We compare corporate governance and performance between family and non-family ownership of public listed companies in Malaysia from 1999 through 2005 measured by Tobin’s Q and ROA. We also examine the governance mechanisms as a tool in monitoring agency costs based on asset utilization ratio and expense ratio as proxy for agency costs. We find that on average firm value is lower in family firms than non-family firms, while board size, independent director and duality have a significant impact on firm performance in family firms as compared to non-family firms. We also find that these governance mechanisms have significant impact on agency costs for both family and non-family firms.

Download Full-text

Corporate Governance, Shareholder Rights, and Shareholder Rights Plans: Poison, Placebo, or Prescription?

Journal of Financial and Quantitative Analysis ◽

10.1017/s0022109000003562 ◽

2008 ◽

Vol 43 (2) ◽

pp. 381-400 ◽

Cited By ~ 13

Author(s):

Gary L. Caton ◽

Jeremy Goh

Keyword(s):

Corporate Governance ◽

Stock Returns ◽

Firm Value ◽

Abnormal Returns ◽

Governance Structure ◽

Shareholder Rights ◽

Corporate Governance Structure ◽

Earnings Growth ◽

Forecast Revisions ◽

Abnormal Stock Returns

AbstractWe examine the effect of poison pill adoptions on firm value, controlling for the adopting firm's preexisting corporate governance structure. We find that only companies with the most democratic governance structures, defined as those with the fewest preexisting protective governance provisions, experience significantly positive abnormal stock returns and significantly positive abnormal revisions in five-year earnings growth rate forecasts. Moreover, regression results indicate that abnormal returns and forecast revisions are significantly related to governance structure and not to board composition or subsequent merger activity.

Download Full-text

RGEC, Sustainability Reporting, and Financial Performance: A Study in Listed Banks in IDX 2013-2017

KnE Social Sciences ◽

10.18502/kss.v3i22.5114 ◽

2019 ◽

Author(s):

Tri Gunarsih ◽

Setiyono . ◽

Fran Sayekti ◽

Tamas Novak

Keyword(s):

Corporate Governance ◽

Regression Analysis ◽

Financial Performance ◽

Empirical Evidence ◽

Significant Influence ◽

Sustainability Reporting ◽

Risk Profile ◽

Correlation And Regression Analysis ◽

Good Corporate Governance ◽

And Performance

This study aims to analyze Risk Profile, Good Corporate Governance, Earning, and Capital (RGEC), Sustainability Reporting (SR) and financial performance (ROE and TQ) of the listed banks in the IDX. This research implements correlation and regression analysis. Base on data samples of 12 banks in 2013-2017, the results of this study show that GCG and RGEC positively correlated to performance (ROE and TQ), but there is no correlation between SR and performance. The regression analysis shows that risk profile (LDR), GCG, and Earning / rentability (ROA) are statistically significant influence ROE but only NPL and GCG that influence TQ while SR is not significant, both to ROE and TQ. These findings support the arguments that the better the RGEC, the higher the financial performance. Subject to data limitation of SR, this study could not give empirical evidence that the better the SR, the higher the firm performance.

Download Full-text