scholarly journals Board independence and firm value: A quasi-natural experiment using Taiwanese data

2020 ◽  
Vol 57 ◽  
pp. 71-88 ◽  
Author(s):  
Yaoyao Fan ◽  
Yuxiang Jiang ◽  
Mao-Feng Kao ◽  
Frank Hong Liu
Keyword(s):  
Firm Value ◽  
Natural Experiment ◽  
Board Independence

Does Board Independence Increase Firm Value? Evidence from Closed-End Funds

2019 ◽  
pp. 1-24
Author(s):  
Matthew E. Souther
Keyword(s):  
Instrumental Variables ◽  
Firm Value ◽  
Board Independence ◽  
Difference In Differences ◽  
Cross Sectional ◽  
Closed End Funds ◽  
The Impact ◽  
New Evidence

Researchers disagree about the impact of board independence on firm value. The disagreement generally stems from the endogenous nature of board appointments. I add new evidence to this discussion by using a sample of closed-end funds to document the value-enhancing effects of independent boards. Using cross-sectional, difference-in-differences, and instrumental variables techniques, I address these endogeneity concerns and find consistent evidence that board independence is associated with higher firm value.

Independent directors and firm value of group-affiliated firms

2017 ◽  
Vol 25 (2) ◽  
pp. 217-236 ◽  
Author(s):  
Amrinder Khosa
Keyword(s):  
Ownership Structure ◽  
Firm Value ◽  
Value Relevance ◽  
Institutional Setting ◽  
Independent Directors ◽  
Board Independence ◽  
Outside Directors ◽  
Content Type ◽  
Listed Firms ◽  
Indian Setting

Purpose This study aims to examine the effect of board independence on firm valuation of group-affiliated firms in distinct Indian setting. Design/methodology/approach This study uses a sample of 317 listed firms comprising 1,350 firm-year observations for the period 2008-2012. The value-relevance model is used to examine the effect of board independence on market value of equity. Findings The distinct finding of an inverse relationship between board independence and firm value of group-affiliated firms in India illustrates that effective monitoring by outside directors is largely influenced by the institutional setting and ownership structure. This study does not find any evidence of different valuation when comparing non-family CEOs and family CEOs. Practical implications Independent directors play an important role to stop abusive use of related-party transactions in an environment where principal–principal conflict exists. The study’s findings will prove useful in determining whether one should rely merely on the independent status of outside directors or the influence of institutional setting on effective governance. Originality/value This paper contributes to the existing literature in the following ways: it helps to gain a better understanding of business groups which are characterised by unique governance structures and the dominance of controlling families on the board, which makes the external governance mechanisms (i.e. independent directors and non-family CEOs) ineffective and it illustrates that effective monitoring by outside directors is largely influenced by the institutional setting and ownership structure.

Board structure: an empirical study of firms in Anglo-American governance environments

2014 ◽  
Vol 40 (7) ◽  
pp. 681-699 ◽  
Author(s):  
M.I. Muller-Kahle ◽  
Liu Wang ◽  
Jun Wu
Keyword(s):  
Firm Value ◽  
Resource Dependence ◽  
Resource Dependence Theory ◽  
Board Independence ◽  
Board Structure ◽  
Board Size ◽  
Content Type ◽  
The Usa ◽  
The Uk ◽  
The Impact

Purpose – With boards of directors playing both monitoring and guidance roles, the purpose of this paper is to examine the impact of board structure on firm value in large US and UK firms using the lenses of agency and resource dependence theories. Design/methodology/approach – Using a sample of firms in the USA and the UK from 2000 to 2007, the paper conducts a panel data analysis of the impact of board structure on firm value and examine the nuances of different governance environments. Findings – The paper finds distinct differences in the impact of board independence, board size, and outside director busyness on firm value between UK and US firms. Specifically, the paper finds that board independence, board size, and board busyness all have a significant positive impact on firm value in the UK. However, the paper finds no significant relationship between board independence and firm value among US firms. Both board size and board busyness are found to be positively associated with firm value in the USA. Social implications – The paper finds strong support for resource dependence theory in the UK but limited support for agency theory in the USA. Originality/value – This paper takes a multi-country approach to examining the impact of board structure on firm value.

scholarly journals Corporate Governance Mechanisms and Value Creation: An Empirical Evidence

2019 ◽  
pp. 1-14 ◽  
Author(s):  
Musa Usman Kabir ◽  
Norhani Binti Aripin ◽  
Redhwan Ahmed Ali Al-Dhamari
Keyword(s):  
Corporate Governance ◽  
Firm Value ◽  
Economic Value ◽  
Value Added ◽  
Manufacturing Firms ◽  
Board Independence ◽  
Managerial Ownership ◽  
Economic Value Added ◽  
Governance Mechanisms ◽  
Corporate Governance Mechanisms

The study examines the perceived effects of corporate governance mechanisms on the value of manufacturing firms in Nigeria by adopting economic value added as the measure of firm value. Corporate governance mechanisms such as concentrated ownership, managerial ownership, the board size, board independence, and foreign ownership as they influence corporate valuation were empirically investigated. 89 listed manufacturing firms in Nigeria were selected for 5 years (2012-2016) for the analysis. The study utilized different tests such as OLS panel data regression and multiple regression model to establish the relationship with panel corrected standard error (PCSE). The study is guided by resource enrichment theory and agency theory. The finding of the study shows that ownership concentration, the board size, and board independence positively impacted on firm value as measured by economic value added. However, managerial ownership and foreign ownership reported negative and insignificant impacts on the value of Nigerian manufacturing firms.

scholarly journals DETERMINAN EARNING MANAGEMENT DAN PENGARUHNYA TERHADAP NILAI PERUSAHAAN (Studi Empiris Pada Perusahaan Manufaktur yang terdaftar di BEI Periode 2017-2018)

2020 ◽  
Vol 14 (2) ◽  
Author(s):  
Derwin Juan Sagrim ◽  
Syaikhul Falah ◽  
Bill J.C Pangayow
Keyword(s):  
Cash Flow ◽  
Firm Value ◽  
Stock Exchange ◽  
Multiple Regression Model ◽  
Free Cash Flow ◽  
Earning Management ◽  
Board Independence ◽  
Manufacturing Companies ◽  
Investment Opportunity Set ◽  
Investment Opportunities

This research has aim to examine the influence of investment opportunities set, board independence, and free cash flow toward firm value with earning management as the intervening variable in manufacturing companies listed on Indonesian Stock Exchange for period 2017 to 2018. This study used a sample of 43 companies with 6 years’ time period. The method of analysis is multiple regression model with further done with path analysis using SPSS 23. These results indicate that investment opportunities set and free cash flow have a significant direct effect on the value of the firm, while investment opportunity set and board independence have the indirect effect. Investment opportunities set, board independence, free cash flow and earning management simultaneously affect the firm value with adjusted R- squared 55.3%. Overall this study indicates that earning management has important role as the intervening variable betweeninvestment opportunities set, board independence & free cash flow relating to firm value.

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