Corporate Governance and Market Valuation of Publicly Traded Real Estate Companies: Evidence from Europe

PurposeThis paper explores how the tension between a firm's CEO overconfidence feature and externally observable hubris attribute may determine the level of corporate sustainability performance. This work also contemplates the impact of the moderator “corporate governance practices.”Design/methodology/approachThis study uses a sample of 658 firm-year-observations using a sample of European real estate firms indexed on Stoxx Europe 600 Index from 2006 to 2019. To test the developed hypotheses, feasible generalized least square (FGLS) regression is applied.FindingsFindings suggest that a good corporate governance score strengthens the positive effect of the psychological bias (CEO overconfidence) on corporate sustainability performance while it fails to attenuate the negative effect of the cognitive bias (CEO hubris).Research limitations/implicationsThe research provides an overview of the impact of CEO personality traits on the corporate sustainability performance level in the European real estate sup-sector. As corporate governance can have a major impact to control these traits, the authors recommend European real estate companies to improve their corporate governance practices.Originality/valueThis study contributes to the existent literature this gap with two empirical novelties: (1) providing a novel insight into sustainability involvement using a sample of European real estate sup-sector and (2) investigating the moderating effect on the link between CEO psychological and cognitive biases and sustainability performance. This study provides empirical evidence that entrenchment problems arising from CEO hubris would not be mitigated by a good corporate governance practice.

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Relationship Between Free Cash Flows and Corporate Governance Levels in the Light of Agency Theory

REVISTA CATARINENSE DA CIÊNCIA CONTÁBIL ◽

10.16930/2237-7662202132062 ◽

2021 ◽

Vol 20 ◽

pp. e3206

Author(s):

Glaysson Aguilar de Araújo ◽

Lara Alves Corrêa ◽

Valéria Gama Fully Bressan ◽

João Estevão Barbosa Neto ◽

Bruna Camargos Avelino

Keyword(s):

Corporate Governance ◽

Stock Market ◽

Cash Flows ◽

Least Square ◽

Publicly Traded ◽

Potential Conflict ◽

Return On Equity ◽

Publicly Traded Companies ◽

Corporate Governance Mechanisms ◽

Free Cash Flows

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.

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Corporate governance and corporate investment: an exploratory research in the Brazilian publicly traded companies listed in Bovespa

Corporate Ownership and Control ◽

10.22495/cocv9i1c5art4 ◽

2011 ◽

Vol 9 (1) ◽

pp. 545-557

Author(s):

Nádia Sousa ◽

Flávia Zóboli Dalmácio

Keyword(s):

Corporate Governance ◽

Institutional Investors ◽

Market Value ◽

Institutional Investor ◽

Capital Cost ◽

Exploratory Research ◽

Statistical Relation ◽

Publicly Traded ◽

Publicly Traded Companies ◽

Governance Practices

This paper aims to study the influence of Corporate Governance practices in the institutional decision to invest. It was developed a Governance Index (iGov), a descending rank was prepared and a test was applied to check if the companies in the first 25% of this rank have the highest number of institutional investors among their biggest investors than the companies of the last 25%. For the validation of IGov it was tested if the companies with the best marks present highest Returns, lowest Capital Cost, highest Market Value, and highest Competiveness within the sector, lowest Beta, highest EVA® and lowest Share concentration. It has been proved that the best Corporate Governance practices do not have any statistical relation with the presence of more Institutional Investor.

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The Effect of Optimal Cash and Deviation from Target Cash on the Firm Value: Empirical Study in Indonesian Firms

Jurnal Dinamika Manajemen ◽

10.15294/jdm.v10i1.17359 ◽

2019 ◽

Vol 10 (1) ◽

pp. 1-13

Author(s):

R Heru Kristanto HC ◽

Mamduh M Hanafi ◽

Wayan Nuka Lantara

Keyword(s):

Corporate Governance ◽

Empirical Study ◽

Firm Value ◽

Fixed Effects ◽

Cash Holdings ◽

Cash Holding ◽

Fixed Effects Model ◽

Publicly Traded ◽

Dynamic Panel ◽

Panel Fixed Effects

The aim of this paper is to examine the effect of cash, optimal cash holding, deviation from target cash (the target adjustment model) on the firm value. This research uses a sample of Indonesian publicly traded firms for the period 2001-2017 (3,349 observation). This paper uses a dynamic panel fixed effects model to estimate optimal cash holdings. Hypothesis testing uses GLS fixed effect and interaction effect uses regression moderated analysis. Research finds that: first, cash, optimal cash, and deviation from target cash have an effect on the firm value. Second, corporate governance moderates the effect of cash, optimal cash, and deviation from target cash on the firm value. Third, investment positively moderates the effect of cash on the firm value. Investment negatively moderates the effect of optimal cash, deviation from target cash on the firm value. Debt negatively moderates the effect of cash, optimal cash on the firm value. Debt positively moderates the effect of deviation from target cash on the firm value.

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THE EFFECT OF INTERNAL AND EXTERNAL FACTORS TO AUDIT DELAY AND TIMELINESS (Empirical Study From Real Estate, and Property Company In Indonesia)

Jurnal Riset Akuntansi Dan Bisnis Airlangga ◽

10.31093/jraba.v2i1.25 ◽

2017 ◽

Vol 2 (1) ◽

Author(s):

Rizal Mawardi

Keyword(s):

Corporate Governance ◽

Real Estate ◽

Empirical Study ◽

External Factors ◽

Good Corporate Governance ◽

Internal And External Factors

Implementasi Good Corporate Governance (GCG) yang menekankan pentingnya transparansi dan akuntabilitas publik dalam pelaksanaan audit sehingga dalam proses audit membutuhkan jangka waktu yang cukup lama agar menghasilkan kualitas opini yang baik. Informasi keuangan lebih banyak memiliki nilai bagi pengguna laporan keuangan bila disajikan tepat waktu. Terdapat beberapa faktor yang menyebabkan meningkatnya waktu pengauditan (Audit Delay) yang menyebabkan penundaan kelayakan pelaporan keuangan (Timeliness). Peneliti melihat adanya faktor internal dan eksternal perusahaan yang mempengaruhi lamanya waktu pengauditan dan ketepatan waktu pelaporan keuangan. Populasi dan Sampel penelitian ini yaitu pada perusahaan yang menerbitkan Laporan Keuangan di Bursa Efek Indonesia (BEI) tahun 2012-2014. Tekhnik Analsis yang digunakan adalah menggunakan uji statistika Regresi Berganda. Hasil penelitian menunjukan bahwa faktor Internal saja yang mempengaruhi secara signifikan Audit Delay yaitu Profitabilitas, Solvabilitas dan Ukuran Perusahaan, sedangkan untuk variabel Timeliness, faktor yang mempengaruhi secara signifikan yaitu Tingkat Profitabilitas, Solvablitas dan Ukuran Kantor Akuntan Publik. Penelitian ini diharapkan mampu memberikan penambahan pandangan untuk literatur Penundaan Audit dan Ketepatan Pelaporan Keuangan.Keyword : Faktor Internal, Faktor Eksternal, Audit Delay, Timeliness

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