Corporate Governance and Performance around the World : What We Know and What We Don't

By Inessa Love. 2011

164 citations recorded by the source corpus.

This report surveys a vast body of literature devoted to evaluating the relationship between corporate governance and performance as measured by valuation, operating performance or stock returns. Most of the evidence to date suggests a positive association between corporate governance and various measures of performance. However, this line of research suffers from endogeneity problems that are difficult to resolve. There is no consensus yet on the nature of the endogeneity in governance-performance studies and this survey proposes an approach to resolve it. The emerging conclusion is that corporate governance is likely to develop endogenously and depend on specific characteristics of the firm and its environment.

Subfields: Accounting, Finance

View Paper: https://www.semanticscholar.org/paper/5323a4b51ff11475c83f5d337129b359334bbc3f

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Citations in the corpus

Board Diversity and Corporate Social Disclosure: Evidence from Vietnam (2016, background): “This is done on the basis that prior research concludes that governance structures probably develop endogeneity depending on ﬁrm-speciﬁc characteristics and the unique business environment in a particular country (Demirguc-Kunt et al. 2006; Haniffa and Hudaib 2006; Love 2011).”
More on the relationship between corporate governance and firm performance in the UK : evidence from the application of generalized method of moments estimation (2016, background): “This in turn, encourages managers to pursue value-maximizing projects and to avoid expropriation of firms’ resources such as perquisites consumption (Love, 2011).”
Corporate Governance, Principal‐Principal Agency Conflicts, and Firm Value in European Listed Companies (2012, unknown): “The introduction of good corporate governance should reduce the private benefits of control enjoyed by majority shareholders by limiting the incidence of tunneling, assetstripping, related-party transactions, and other ways of diverting company assets or cash flows from minority shareholders (Love, ”
Does Boardroom Gender Diversity Matter? Evidence from a Transitional Economy (2015, methodology): “We followed Love (2011) and used the key words ‘corporate governance’ + ‘performance’ + ‘Vietnam’ to search www. GoogleScholar.com, www.SSRN.com, and the Proquest5000 database.”
Emerging Markets Research: Trends, Issues and Future Directions (2012, unknown): “A third strand focuses on the extent to which greater firm-level internationalisation impacts upon governance and the relative power of managers relative to shareholders (Globerman & Shapiro (2003), Klapper and Love (2004); Jiraporn et al (2006); Aggarwal et al (2009), Bebchuk, Cohen & Ferrell (2009”