Creditor Control Rights, Corporate Governance, and Firm Value

2012 ◽  
Vol 25 (6) ◽  
pp. 1713-1761 ◽  
Author(s):  
Greg Nini ◽  
David C. Smith ◽  
Amir Sufi
Keyword(s):  
Corporate Governance ◽  
Firm Value ◽  
Control Rights

scholarly journals Ownership Structure, Corporate Governance, and Firm Value: Evidence from Ghana

2019 ◽  
Vol 4 (6) ◽  
Author(s):  
Kong Yusheng ◽  
Samuel Asubonteng ◽  
Alex Antei-Adje
Keyword(s):  
Corporate Governance ◽  
Stock Returns ◽  
Cash Flow ◽  
Ownership Structure ◽  
Firm Value ◽  
Minority Shareholders ◽  
Control Rights ◽  
Controlling Shareholders ◽  
Percentage Points ◽  
Investment Opportunities

We use a sample of 100 firms in Ghana to study the effect of ownership structure on value during the region's financial crisis. The crisis negatively impacted firms' investment opportunities, raising the incentives of controlling shareholders to expropriate minority investors. Crisis period stock returns of firms in which managers have high levels of control rights, but have separated their control and cash flow ownership, are 10-20 percentage points lower than those of other firms. The evidence is consistent with the view that ownership structure plays an important role in determining whether insiders expropriate minority shareholders.

Pengaruh Kinerja Keuangan dan Good Corporate Governance (GCG) Terhadap Nilai Perusahaan

MBIA ◽  
2019 ◽  
Vol 17 (2) ◽  
pp. 1-10
Author(s):  
Rolia Wahasusmiah
Keyword(s):  
Corporate Governance ◽  
Firm Value ◽  
Sampling Method ◽  
Total Population ◽  
Annual Report ◽  
Stock Exchange ◽  
Secondary Data ◽  
Positive Influence ◽  
Manufacturing Companies ◽  
Good Corporate Governance

This study aims to determine the effect of financial performance and good corporate governance (GCG) on the value of companies in manufacturing companies listed on the stock exchange Indonesia. The type of data used is secondary data in the form of annual report 2016. Population used in this study are all companies listed on the Indonesia Stock Exchange (BEI). This research uses purposive sampling method with total population of 144 companies and sample of 31 companies. The results show that simultaneously ROA, OPM, NPM, KM, and KI have a positive influence on firm value. While partially ROA  have a positive influence on firm value. While OPM, NPM, KM, and KI have no positive influence on firm value).

Corporate Governance, Board Diversity, and Firm Value

CFA Digest ◽  
2003 ◽  
Vol 33 (3) ◽  
pp. 22-23
Author(s):  
Spencer L. Klein
Keyword(s):  
Corporate Governance ◽  
Firm Value ◽  
Board Diversity

Implementasi Tata Kelola Perusahaan Terhadap Nilai Perusahaan: Studi Empiris pada Perusahaan di Indonesia

2016 ◽  
Vol 7 (2) ◽  
pp. 1-17
Author(s):  
Patricia Diana
Keyword(s):  
Developing Countries ◽  
Corporate Governance ◽  
Financial Performance ◽  
Firm Value ◽  
Stock Exchange ◽  
Investment Decision ◽  
International Market ◽  
Self Assessment ◽  
Result Show ◽  
Observation Period

Indonesia as one of developing countries should prepare for intense business competition in international market by continuously improving their financial performance which reflected by profitability enhancement. In order to achieved this goals, companies should build synergic relationship between stakeholders. Implementation of corporate governance is believed can assist companies in improving firm value by minimizing cost and maximize companies’ profit. This study aims to investigate the effect of corporate governance implementation on Indonesian companies. Corporate Governance Perception Index (CGPI) which establish by Indonesian Institute of Corporate Governance (IICG) used as proxy for corporate governance implementation, and ROA used as proxy for firm value. All the data obtain from Indonesia Stock Exchange (IDX) database and period 2008 to 2012 used as observation period. The result show that implementation of corporate governance has significant effect with firm value proxy by ROA. This study also concludes that market will be more concern on CGPI which generated through documentation and presentation indicators and also observation indicators rather than self-assessment indicators. This indicates that market would trust the information which comes from independen external parties. The result will be useful for investor in making their investment decision which based on profitability consideration. Keywords: Corporate Governance, CGPI, ROA, profitability

Debt Covenants and Accounting Manipulation

2021 ◽  
Author(s):  
Volker Laux
Keyword(s):  
Firm Value ◽  
Accounting Information ◽  
Debt Covenants ◽  
Control Rights ◽  
Ex Ante ◽  
Per Se

This paper studies the effects of allocating control rights to lenders via debt covenants when managers can sometimes misreport the accounting information on which the covenants are based. When contract renegotiation is exogenously prohibited, including a covenant in the contract is ex ante optimal because it increases both the probability that poor projects are liquidated and the manager's effort incentive. When the parties can renegotiate the contract, the results can flip: Granting the lender more control can lead to less frequent liquidations of low-quality projects and lower managerial effort incentives and thereby reduce the manager's ex ante payoff. The key behind these results is not the manager's incentive to misreport per se but her desire to take subsequent actions that conceal the misreporting. The model generates predictions regarding the determinants of accounting-based covenants, and the effects of covenants on misreporting, managerial effort, the frequency of liquidations, and firm value.

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