Security Voting Structure and Firm Value: Synthesis and New Insights from Emerging Markets

2014 ◽  
pp. 3-26
Author(s):  
Chinmoy Ghosh ◽  
Milena Petrova
Keyword(s):  
Emerging Markets ◽  
Firm Value ◽  
Value Synthesis

scholarly journals Ownership monitoring mechanism and corporate performance: evidence from banking firms in Asian emerging markets

2008 ◽  
Vol 5 (3) ◽  
pp. 349-357
Author(s):  
Abdul Hadi Zulkafli ◽  
Fazilah Abdul Samad ◽  
Izani Ibrahim
Keyword(s):  
Corporate Governance ◽  
Hong Kong ◽  
Financial Crisis ◽  
Emerging Markets ◽  
Firm Value ◽  
Financial Firms ◽  
Monitoring Mechanism ◽  
Asian Emerging Markets ◽  
Corporate Governance Reforms ◽  
Governance Reforms

Corporate governance is regarded as a major issue during the post-financial crisis period in Asia. These countries have implemented corporate governance reforms to enhance the protection of their shareholders and stakeholders interests. Such reforms may affect the conduct of business of all corporations in the region as it allows for greater monitoring especially by the shareholders. Unlike earlier studies which focused on non-financial firms, this study analyzes the corporate governance involving ownership monitoring mechanism of listed banking firms in nine Asian emerging markets which are Malaysia, Thailand, Philippines, Indonesia, Korea, Singapore, Hong Kong, Taiwan and India. It is found that ownership monitoring mechanisms of the banking firms in Asian emerging markets are negatively related with firm value measured by Tobin’s Q

scholarly journals AMBIVALENT IMPACT OF CUSTOMER SATISFACTION ON FIRM VALUE IN EMERGING MARKETS: THE CASE OF KOREA

2017 ◽  
Vol 18 (2) ◽  
pp. 258-272 ◽  
Author(s):  
Hyunseok KIM ◽  
Jaisang KIM ◽  
Kyeong-Seop CHOI
Keyword(s):  
Customer Satisfaction ◽  
Emerging Markets ◽  
Firm Value ◽  
Practical Implication ◽  
Emerging Market ◽  
Quantile Regressions ◽  
Theoretical Level ◽  
Satisfaction Index ◽  
Customer Satisfaction Index ◽  
American Customer Satisfaction Index

Many researchers report that American Customer Satisfaction Index relates significantly and positively to firm value. The purpose of this paper is to examine whether such relation holds in the emerging markets such as Korea. Our preliminary OLS analysis reports that Korean customer satisfaction is irrelevant to firm value. Quantile regressions, applied for further analysis, report that customer satisfaction can be detrimental to firm value if the firm is enjoying the higher kind of value. These results undermine efforts, on the theoretical level, to establish Customer Satisfaction Index as a consolidated firm-value indicator; furthermore, managerial efforts to boost up firm value by managing customer satisfaction lose ground in the emerging markets. This study also corroborates Reinartz and Kumar’s (2002) marketing insight that to satisfy customers, make them loyal, is trivial for profitability and firm value in Korea perspective. The practical implication of our finding is that the relation between customer satisfaction and firm value becomes more ambiguous, especially when it is considered in the emerging market contexts. It also provides management with a fresh new insight that they should take prudence when they increase expenses on customer satisfaction since it turned out to be not a “panacea”.

Corporate diversification and firm value: evidence from emerging markets

2015 ◽  
Vol 10 (3) ◽  
pp. 294-310 ◽  
Author(s):  
Elif Akben Selçuk
Keyword(s):  
Emerging Markets ◽  
Firm Value ◽  
Fixed Effects ◽  
Generalized Method Of Moments ◽  
Corporate Diversification ◽  
Fixed Effects Model ◽  
Developed Country ◽  
Content Type ◽  
Diversified Firms ◽  
The Impact

Purpose – The purpose of this paper is to investigate the impact of corporate diversification on firm value in a sample of nine emerging markets including Brazil, Chile, Indonesia, Malaysia, Philippines, Poland, South Africa, Thailand, and Turkey. For the purpose of this study, a company is classified as diversified when it is operating in two or more lines of business defined by the two-digit SIC codes. Design/methodology/approach – Employing panel data from 1,568 companies for the period 2005-2010, this paper estimates both a fixed effects model and a dynamic generalized method of moments model. Data are collected both at company level and segment level within each firm. Findings – Overall, analysis results suggest that, for the period from 2005 to 2010, diversified firms in emerging markets are valued more compared to single-segment firms operating in similar industries, providing support for diversification premium. Originality/value – The effect of diversification on company value in emerging markets is an important managerial and public policy concern. Although the literature on developed country diversified firms is rich, only a few studies have examined diversification-value relationship in the context of developing countries. Furthermore, most previous research on the value effects of corporate diversification in emerging markets has taken the form of case studies within countries and concentrated on the 1990s. This paper tries to fill these gaps by using a larger sample and more recent data and methodology.

scholarly journals Association between Degree of Leverages and Firm Value

2016 ◽  
Vol 8 (1) ◽  
pp. 212 ◽  
Author(s):  
Pradeep Kumar Gupta ◽  
Shailendra Kumar ◽  
Piyush Verma
Keyword(s):  
Emerging Markets ◽  
Firm Value ◽  
Stock Price ◽  
Stock Exchange ◽  
Market Price ◽  
Negative Relationship ◽  
Least Square ◽  
Financial Leverage ◽  
Individual Firm ◽  
Ordinary Least Square Regression

<p>This study aims to empirically investigate the association between degree of leverages, operating and financial, and firm value in the context of India, one of big ten emerging markets (Garten, 1997). This study examines this association for 231 manufacturing firms listed in National Stock Exchange (NSE) in India over a period from 2001-2002 to 2010-2011. The independent variables, degrees of operating and financial leverage, and a market price-based dependent variable, called price-earnings ratio as a proxy of firm value, are taken to examine this relationship by using standard ordinary least square regression models at the levels of individual firm and portfolio of firms. The findings of this study show a statistically significant negative relationship between firm value and degree of operating leverage and a statistically insignificant relationship between firm value and degree of financial leverage both at the levels of individual firm and portfolio of firms. Using the data from a country like India, one of fastest growing emerging markets in the world, this study provides an important insight on the effect of leverages on the firm value, the association between independent accounting variables and stock price-based dependent variable, to the practitioners, the scholars and the finance managers. </p>

scholarly journals Do ownership Concentration and Leverage Influence Firms’ Value? Evidence from Panel Data in Jordan

2016 ◽  
Vol 11 (6) ◽  
pp. 262 ◽  
Author(s):  
Dana M. AL Najjar
Keyword(s):  
Panel Data ◽  
Emerging Markets ◽  
Firm Value ◽  
Stock Exchange ◽  
Panel Data Analysis ◽  
Ownership Concentration ◽  
Explanatory Variables ◽  
Financial Scandals ◽  
Block Holders ◽  
Corporate Concentration

<p>Elevating firm performance to optimal levels in order to maximize the firm value has been one of the concerns in corporate finance, due to the challenges accompanied with the failure in corporate control that led to successive financial scandals in the last decade worldwide. Hence, this study extends previous researches that were interested in the investigations of the effect of the key ownership structures in the emerging markets, by depending mainly on panel data analysis applied on a sample that consists of 83 non-financial firms listed at Amman Stock Exchange (ASE) during the period 2005-2013; to form two firm’s value equations by relying on two dependent variables which are; Return on Assets (ROA), and Market to Book value (M/B). Regarding the explanatory variables there are four indicators representing various measures of ownership concentration depending mainly on the percentages of shares held by block holders in firms. In addition, the control variables in the two models consists of indicators for leverage; size, tangibility, business risk, and liquidity. The empirical findings are consistent with many prior studies that were applied on both Jordan and many emerging markets; in that, the concluding remarks support the existence of relationship between corporate concentration, leverage and firm’s value.</p>

scholarly journals Moderating Effects of Agency Problems and Monitoring Systems on the Relationship between Executive Stock Option and Audit Fees: Evidence from Korea

2018 ◽  
Vol 10 (11) ◽  
pp. 4041
Author(s):  
Sang Cheol Lee ◽  
Jaewan Park ◽  
Mooweon Rhee ◽  
Yunkeun Lee
Keyword(s):  
Emerging Markets ◽  
Firm Value ◽  
Stock Options ◽  
Agency Problems ◽  
Audit Fees ◽  
Stock Option ◽  
Monitoring Systems ◽  
Executive Stock Options ◽  
Moderating Effects ◽  
The Relationship

Since executive stock options may give rent-seeking incentives to CEOs, CEOs with stock options are likely to misallocate corporate resources to seek personal gains, which in turn may lead to a decrease in firm value. High-quality audit services can reduce the negative impacts of executive stock options on firm value and help firms to ensure sustainable growth. However, while most of the existing accounting literature related to executive stock options (ESO) is mainly focused on earnings management, there are relatively few studies that investigate the relation between ESO and audit fees. At the same time, while previous studies on ESO have been conducted in advanced countries, few studies have identified the relationship between ESO and audit fees in emerging markets. Therefore, it is necessary to examine the effect of ESO under circumstances different from those of developed countries. To fill this gap, we investigated the association between executive stock options and audit fees and examine the moderating effects of agency problems and monitoring systems on the relationship. Using 462 observations from 110 nonfinancial Korean listed companies, for the period of 2000 to 2005, we found that executive stock options are positively related to audit fees. In addition, we found that the effects of executive stock options on audit fees are even higher in firms with high agency problems, effective internal monitoring systems, and major accounting firms. This study can help regulatory agencies to validate audit fee regulations, such as the International Standard on Auditing, that consider ESO a significant risk factor. In addition, these results can help external auditors to set up the specific guidelines for pricing audit fees. Furthermore, the results of this study will contribute to the construction of more desirable corporate governance structure in Korean companies, which in turn would not only enhance firm value but also strengthen the sustainability of companies belonging to the emerging markets.

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