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.

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 Reclassification and Academic Success among English Language Learners: New Evidence from a Large Urban School District

2013 ◽  
Vol 13 (1) ◽  
pp. 107-136
Author(s):  
Gary Painter ◽  
Edward Flores
Keyword(s):  
English Language Learners ◽  
Academic Success ◽  
Language Learners ◽  
Instrumental Variables ◽  
Academic Outcomes ◽  
Fixed Effects ◽  
English Language ◽  
Urban School District ◽  
The Impact ◽  
New Evidence

Abstract: On average, English Language Learners (ELLs) have inferior academic performance than their peers who speak English fluently. Research has also shown that ELLs that are reclassified as English Proficient (R-FEP) often have outcomes that approach or exceed comparable peers who are initially fluent in English upon entering school, but many of these past approaches suffer from various methodological deficiencies. In this analysis, we analyse the impact of reclassification on a broad set of academic outcomes using a number of methods to address this question, including fixed effects and instrumental variables methods. There are clear differences in academic outcomes between those students who are never reclassified and those who are R-FEP English Proficient. However, the evidence suggests that, on the margin, there is little or no incremental benefit for students that are reclassified before their peers.

Adoption of immuno-oncology in NSCLC, a real-world study in EU5.

2019 ◽  
Vol 37 (15_suppl) ◽  
pp. e20631-e20631
Author(s):  
Alejandra Martinez De Pinillos ◽  
Isabel Ricote Lobera ◽  
Cristina Martinez ◽  
Caroline Anger ◽  
Filippo Guglielmetti ◽  
...  
Keyword(s):  
Clinical Trials ◽  
Real World ◽  
Performance Status ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Patient Profile ◽  
Period 2 ◽  
Level Data ◽  
The Impact ◽  
New Evidence

e20631 Background: To date, there are no robust studies in real world practice describing the use of IO (immuno-oncology) treatments in advanced/metastatic (adv/m) NSCLC. The available evidence in Europe is limited to observational studies of small size. This study aims to understand the impact of IO in adv/mNSCLC and study the profile of patients currently receiving these treatments. Methods: 20,157 cases of 1st and 2nd line adv/mNSCLC patients between October 2016 and September 2018 in EU5 (France, Germany, Spain, Italy, UK) were identified within Oncology Dynamics, an IQVIA oncology syndicated cross sectional survey collecting anonymized patient-level data. Patient profile was described, and two groups were created to assess differences in the use of IO treatments (nivolumab, pembrolizumab, atezolizumab, ipilimumab, durvalumab) across 2 time periods: #1 October 2016 - September 2017 (n = 9,310); #2 October 2017 - September 2018 (n = 10,847). Results: IO treatments increased 15% in 1st line adv/mNSCLC (13% in non-squamous and 23% in squamous histology) and 11% in 2nd line across periods; reaching treatment shares of 20.3% and 67.9% in 1st line and 2nd line in Period 2. Within IO-treated patients, 9.5% in 1st line and 13.6% in 2nd line had ECOG ≥2, and 27% were > 71 years old. The use of IO in 1st line patients without mutations (EGFR/ALK/ROS1/BRAF) increased by 24%, while standard chemotherapy decreased by 21%. Conclusions: IO treatments had a rapid adoption in Europe last year, influenced by its approval in 1st line adv/mNSCLC and by clinical guidelines recommendations. Ongoing clinical trials may suggest a growing trend in the future that could potentially impact in healthcare systems. In addition, real world patients treated with IO are older and have a worse performance status than those widely included in clinical trials. An evaluation of these results sheds light into IO treatments in NSCLC and may contribute to the design of real-world studies to generate new evidence and optimize the use of these class of drugs in clinical practice.[Table: see text]

scholarly journals Bank Liquidity Hoarding Strategies in Uncertain Times: New Evidence from an Emerging Market with Bank-level Data

2021 ◽  
Vol 12 (2) ◽  
pp. 377-398
Author(s):  
Van Dan Dang ◽  
Hoang Chung Nguyen
Keyword(s):  
Banking Sector ◽  
Emerging Market ◽  
Balance Sheet ◽  
Cross Sectional ◽  
Level Data ◽  
Balance Sheet Liquidity ◽  
The Impact ◽  
New Evidence ◽  
Multiple Robustness ◽  
Estimate Uncertainty

The paper explores the impact of uncertainty on bank liquidity hoarding, particularly providing new insights on the nature of the impact by bank-level heterogeneity. We consider the cross-sectional dispersion of shocks to key bank variables to estimate uncertainty in the banking sector and include all banking items to construct a comprehensive measure of bank liquidity hoarding. Using a sample of Vietnamese banks during 2007–2019, we document that banks tend to increase total liquidity hoarding in response to higher uncertainty; this pattern is still valid for on- and off-balance sheet liquidity hoarding. Further analysis with bank-level heterogeneity indicates that the impact of banking uncertainty on liquidity hoarding is significantly stronger for weaker banks, i. e., banks that are smaller, more poorly capitalized, and riskier. In testing the “search for yield” hypothesis to explain the linkage between uncertainty and bank liquidity hoarding, we do not find it to be the case. Our findings remain extremely robust after multiple robustness tests.

How Does Online Lending Influence Bankruptcy Filings?

2021 ◽  
Author(s):  
Hongchang Wang ◽  
Eric M. Overby
Keyword(s):  
Instrumental Variables ◽  
Policy Implications ◽  
Easy Access ◽  
Difference In Differences ◽  
Access To Credit ◽  
Financial Products ◽  
Online Platforms ◽  
Level Data ◽  
Online Lending ◽  
The Impact

By providing quick and easy access to credit, online lending platforms may help borrowers overcome financial setbacks and/or refinance high-interest debt, thereby decreasing bankruptcy filings. On the other hand, these platforms may cause borrowers to overextend themselves financially, leading to a “debt trap” and increasing bankruptcy filings. To investigate the impact of online lending on bankruptcy filings, we leverage variation in when state regulators granted approval for a major online lending platform—Lending Club—to issue peer-to-peer loans. Using a difference-in-differences approach, we find that state approval of Lending Club led to an increase in bankruptcy filings. A complementary instrumental variables analysis using loan-level data yields similar results. We find suggestive evidence that the ease of receiving a Lending Club loan causes some borrowers to overextend themselves financially, leading to bankruptcy. Our results suggest that recent initiatives from online lending platforms to control how borrowers use loans, such as Lending Club’s “balance transfer loans” that send loan funds directly to creditors, can help these platforms provide safe and affordable credit. Our study adds to the literature that examines how online platforms influence society and the economy; it contributes to the literature that examines how financial products, services, and regulations influence bankruptcy filings; and it has policy implications for online lending design and regulation. This paper was accepted by Lorin Hitt, information systems.

scholarly journals The impact of corporate governance on firm performance in Egyptian listed companies

2013 ◽  
Vol 11 (1) ◽  
pp. 691-705 ◽  
Author(s):  
Ehab K. A. Mohamed ◽  
Mohamed A. Basuony ◽  
Ahmed A. Badawi
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Ownership Structure ◽  
Stock Exchange ◽  
Listed Companies ◽  
Board Independence ◽  
Board Structure ◽  
Cross Sectional ◽  
Book Value ◽  
The Impact

This paper examines the impact of corporate governance on firm performance using cross sectional data from non-financial companies listed in the Egyptian Stock Exchange. The 88 non-financial companies on EGX100 index of listed companies on the Egyptian Stock Market are studied to examine the relationship between ownership structure, board structure, audit function, control variables and firm performance by using OLS regression analysis. The results show that ownership structure has no significant effect on firm performance. The only board structure variable that has an effect on firm market performance is board independence. Firm book value performance is affected by both board independence and CEO duality. Firm size and leverage have varying effects on both market and book value performance of firms

scholarly journals Vehicle miles traveled and the built environment: New evidence from panel data

2020 ◽  
Vol 13 (1) ◽  
pp. 23-48
Author(s):  
Keith Ihlanfeldt
Keyword(s):  
Land Use ◽  
Built Environment ◽  
Land Use Planning ◽  
Fixed Effects ◽  
Urban Expansion ◽  
Land Uses ◽  
Vehicle Miles Traveled ◽  
Cross Sectional ◽  
The Impact ◽  
New Evidence

There has been considerable interest in the impact that the built environment has on vehicle miles traveled (VMT). While this issue has been extensively researched, due to the heavy reliance on cross-sectional data, there remains uncertainty regarding how effective local land-use planning and regulation might be in reducing VMT. Based on a 13-year panel of Florida counties, models are estimated that relate VMT to new measures of the spatial distribution of alternative land uses within counties and county urban expansion. Identification of causal effects is established by including year and county fixed effects, along with an extensive set of control variables, and instrumenting those land uses that may be endogenous. Incremental annual changes in the spatial concentration of alternative land uses are found to affect VMT. The policy implication is that appropriate land-use policy can reduce VMT and should be considered part of the strategy for dealing with the problem of global warming.

scholarly journals Intellectual Property Rights, Imitative Ability and Export Performance: The Korean Experience

2012 ◽  
Vol 13 (1) ◽  
pp. 19-41
Author(s):  
Yoon Heo ◽  
Nguyen K. Doanh
Keyword(s):  
Export Performance ◽  
Social Infrastructure ◽  
Cross Sectional ◽  
Market Expansion ◽  
Foreign Countries ◽  
Openness To Trade ◽  
The Impact ◽  
New Evidence ◽  
Ipr Protection ◽  
Imitative Ability

This paper investigates the impacts of IPR protection in foreign countries on Korea's export performance. The empirical analysis in this paper differs from those in previous studies in several respects. First, the impact of IPRs is firstly forced to be uniform across sectors and then is allowed to differ across sectors so that industry-specific evidence can be documented. Second, in order to analyze the impact of IPR protection on trade, we employ the random-effects model to incorporate differences between cross-sectional entities by allowing the intercept to change, but the amount of change is random. Third, the study is based on an analysis of the most recent panel data which allow the patent regime to change over time. Finally, this study provides new evidence regarding the linkage between IPRs and trade with a focus on Korea. Our major findings are summarized as follows. First, reinforced IPR protection in foreign countries has a positive effect on Korea's total exports, indicating the dominance of market expansion effects. Second, stronger protection of IPRs induces Korea's exports to all foreign countries regardless of their level of development. The effects are stronger in medium-income and high-income countries. Third, Korea tends to export more to countries with strong imitative ability when the IPR protection in those countries is strengthened. Finally, stronger protection of IPRs in foreign countries with weak imitative ability leads to an ambiguous reduction in Korea's exports. Efforts to increase the GDP, improve social infrastructure, accelerate domestic reforms (openness to trade), and strengthen IPR protection in foreign countries are suggested as a remedy for obstacles to Korea's exports. Importantly, strengthening of IPRs would have the greatest effect if foreign GDP also rose.

scholarly journals The Effect of NFL and NCAA Football Games on the Spread of COVID-19 in the United States: An Empirical Analysis

2021 ◽  
Author(s):  
Asmae Toumi ◽  
Haoruo Zhao ◽  
Jagpreet Chhatwal ◽  
Benjamin P. Linas ◽  
Turgay Ayer
Keyword(s):  
Time Series ◽  
National Football League ◽  
National Collegiate Athletic Association ◽  
The United States ◽  
Cross Sectional Study ◽  
County Level ◽  
Sectional Study ◽  
Difference In Differences ◽  
Cross Sectional ◽  
The Impact

ABSTRACTImportanceIn 2020 and early 2021, the National Football League (NFL) and National Collegiate Athletic Association (NCAA) had opted to host games in stadiums across the country. The in-person attendance of games has varied with time and from county to county. There is currently no evidence on whether limited in-person attendance of games has caused a substantial increase in coronavirus disease 2019 (COVID-19) cases.ObjectiveTo assess whether NFL and NCAA football games with limited in-person attendance have contributed to a substantial increase in COVID-19 cases in the counties they were held.DesignIn this time-series cross-sectional study, we matched every county hosting game(s) with in-person attendance (treated) in 2020 and 2021 with a county that has an identical game history for up to 14 days (control). We employed a standard matching method to further refine this matched set so that the treated and matched control counties have similar population size, non-pharmaceutical intervention(s) in place, and COVID-19 trends. We assessed the effect of hosting games with in-person attendance using a difference-in-difference estimator.SettingU.S. counties.ParticipantsU.S. counties hosting NFL and/or NCAA games.ExposureHosting NFL and/or NCAA games.Main outcomes and measuresEstimating the impact of NFL and NCAA games with in-person attendance on new, reported COVID-19 cases per 100,000 residents at the county-level up to 14 days post-game.ResultsThe matching algorithm returned 361 matching sets of counties. The effect of in-person attendance at NFL and NCAA games on community COVID-19 spread is not significant as it did not surpass 5 new daily cases of COVID-19 per 100,000 residents on average.Conclusions and relevanceThis time-series, cross-sectional matching study with a difference-in-differences design did not find an increase in COVID-19 cases per 100,000 residents in the counties where NFL and NCAA games were held with in-person attendance. Our study suggests that NFL and NCAA football games hosted with limited in-person attendance do not cause a significant increase in local COVID-19 cases.Key pointsQuestionDid NFL and NCAA football games with limited in-person attendance cause a substantia increase in coronavirus disease 2019 (COVID-19) cases in the U.S. counties where the games were held?FindingsThis time-series, cross-sectional study of U.S. counties with NFL and NCAA football games used matching and difference-in-differences design to estimate the effect of games with limited in-person attendance on county-level COVID-19 spread. Our study does not find an increase in county-level COVID-19 cases per 100,000 residents due to NFL and NCAA football games held with limited in-person attendance.MeaningThis study suggests that NFL and NCAA games held with limited in-person attendance do not cause an increase in COVID-19 cases in the counties they are held.

scholarly journals The impact of boardroom internationalisation on online disclosures of S&P 500

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Esam Shehadeh ◽  
Doaa Aly ◽  
Ibrahim Yousef
Keyword(s):  
Firm Value ◽  
Scoring System ◽  
Positive Impact ◽  
Ordinary Least Squares ◽  
The Body ◽  
Board Members ◽  
Cross Sectional ◽  
Content Type ◽  
The Impact ◽  
First Time

Purpose The purpose of this study is to analyse the level of online disclosure of firms in the USA and to evaluate the impact of diversity in terms of director nationality (boardroom internationalisation) on online disclosure. Design/methodology/approach The authors apply, for the first time, a new modified scoring system to measure online disclosure levels by securing more detailed information on each of the items in the voluntary disclosure index. Regarding the percentage of foreign board members, unlike in previous research, the authors calculate two additional proxies to more accurately specify the level of international diversity on the board: the Blau Index and the Shannon Index. Moreover, the authors use a cross-sectional model for the sampled non-financial S&P500 firms using both ordinary least squares (OLS) and heteroskedasticity-corrected estimates to analyse the impact of boardroom internationalisation on the level of online disclosure. Findings The findings reveal that the average online disclosure level for the sample in question is 64% for the 0–1 index and 57% for the 0–4 index. In addition, the results of the regression analysis confirm the study’s proposed hypothesis, which is that the presence of international board members correlates with an improvement in the level of online disclosure. This can be attributed to the fact that foreign directors bring unique skills and knowledge from their home countries and thus, increase board discussion, creativity and innovation, which has a positive impact on the level of online disclosure. Research limitations/implications Financial firms are subject to capital requirement regulations; consequently, disclosure practices can be influenced. Therefore, these firms were excluded from the sample of the study. Originality/value This research contributes to the body of literature on nationality diversity of firm boards and corporate online disclosure in several respects. Firstly, the study adds an international dimension to the existing literature. Secondly, this study provides new evidence that foreign diversity on the board can improve firm value, insofar as the corresponding enhancement of online disclosure leading to positive capital market implications. Thirdly, the authors use, for the first time, a new scoring system approach to measure the level of online disclosure. Finally, it contributes to the corporate governance literature by basing its analysis on a multi-theoretical approach.

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