An Integrated Framework of Corporate Governance and Firm Valuation
Journal
European Financial Management
ISSN
1354-7798
ISSN-Digital
1468-036X
Type
journal article
Date Issued
2006-03-01
Author(s)
Abstract
Recent empirical work shows evidence of a positive relationship between firm-specific corporate governance and firm valuation. Instead of looking at a single control mechanism, we use a broad corporate governance index and additional variables related to ownership structure, board characteristics, and leverage to provide a comprehensive description of firm-level corporate governance for a broad sample of Swiss firms. We carefully control for the endogeneity of these control mechanisms by developing a system of simultaneous equations. Our results support the widespread hypothesis of a positive relationship between corporate governance and Tobin's Q.
Language
English
Keywords
Corporate governance
Ownership structure
Firm valuation
Endogeneity
HSG Classification
contribution to scientific community
Refereed
Yes
Publisher
Blackwell
Publisher place
Oxford
Volume
12
Number
2
Start page
249
End page
283
Pages
35
Subject(s)
Division(s)
Eprints ID
210190