Product Market Competition and Corporate Governance: Evidence from the Board of Directors of Cartel Firms in Korea

2018 ◽  
Vol 26 (1) ◽  
pp. 1-41
Author(s):  
Hwa Ryung Lee
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Market Competition ◽  
Product Market ◽  
Product Market Competition ◽  
The Board Of Directors

Corporate governance, product market competition and firm performance: evidence from Iran

Humanomics ◽  
2017 ◽  
Vol 33 (1) ◽  
pp. 38-55 ◽  
Author(s):  
Mahdi Moradi ◽  
Mohammad Ali Bagherpour Velashani ◽  
Mahdi Omidfar
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Market Competition ◽  
Product Market ◽  
Research Literature ◽  
Product Market Competition ◽  
Governance Mechanisms ◽  
Management Performance ◽  
Content Type ◽  
The Board Of Directors

Purpose The purpose of this study is to investigate the effect of product market competition and corporate governance on firm’s management performance in the Tehran Stock Exchange market. According to the research literature, the governance mechanisms used in this study consist of ownership structure, structure of the board of directors and capital structure. In addition, Herfindahl–Hirschman Index and market size were used to measure the product market competition. Design/methodology/approach This study used one selected sample among the firms in the capital market of Iran from 2004 to 2012. Findings The results of this study indicated that there is a significant relation among the major governance mechanisms (including ownership concentration, independence of the board of directors and debt ratio) and product market competition and management performance. The findings of this study also showed that product market competition is effective on the relation between corporate governance and the performance, and this is what has been ignored in most of the conducted studies. Originality/value In general, the results of this study supported the idea that product market competition is effective on implementation and efficiency of governance mechanisms.

Product market competition, state-ownership, corporate governance and firm performance

2018 ◽  
Vol 26 (1) ◽  
pp. 62-83 ◽  
Author(s):  
Li Liu ◽  
Wen Qu ◽  
Janto Haman
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Board Of Directors ◽  
Market Competition ◽  
State Ownership ◽  
Product Market Competition ◽  
Content Type ◽  
Good Corporate Governance ◽  
Governance Practices ◽  
Negative Effect

Purpose The purpose of this paper is to examine the association between firm performance and product market competition (PMC), and then examine the mitigation effect of corporate governance and/or state-ownership (SOEs) in the association between PMC and firm performance using Chinese listed firms. Design/methodology/approach The authors consider three determinants of the PMC that affect the nature of competition, and use market concentration, product substitutability and market size as proxies for PMC. The authors construct a corporate governance index which measures the extent of board independence, monitoring strength of supervisory board over board of directors, and monitoring strength of board of directors over CEO. The authors use Tobin’s Q as a proxy for firm performance. The authors use a sample of 20,706 firm-year observations listed on the Chinese stock market between 2001 and 2016 to empirically investigate the research questions proposed in the paper. Findings The authors find that higher PMC is associated with lower firm performance. The authors find that good corporate governance practices moderate the negative effect of higher PMC on firm performance. The association between higher PMC and lower performance is weaker for firms controlled by SOEs compared to non-SOEs. Further, the moderation effect of SOEs on the association between higher PMC and lower performance is more pronounced for firms with good corporate governance practices compared to firms with weak corporate governance practices. Originality/value Extant studies investigating the relationship between PMC and corporate governance suggest an either complementary or substitution relationship in developed economies. Our study highlights the interactive role played by SOEs and good corporate governance practices in firm performance in highly competitive product markets in an emerging economy. The findings provide insightful information to regulators of other emerging countries that SOEs with good corporate governance practices can play an important role in the economy by mitigating the negative effect of higher PMC on firm performance.

scholarly journals Product market competition and corporate governance

2011 ◽  
Vol 1 (2) ◽  
pp. 114-130 ◽  
Author(s):  
Julia Chou ◽  
Lilian Ng ◽  
Valeriy Sibilkov ◽  
Qinghai Wang
Keyword(s):  
Corporate Governance ◽  
Market Competition ◽  
Product Market ◽  
Product Market Competition

scholarly journals The moderating effect of corporate governance to the relationship of corporate social responsibility and product market competition to company value

2021 ◽  
Vol 24 ◽  
pp. 317-323
Author(s):  
Elyzabet Indrawati Marpaung ◽  
Yvonne Augustine
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Market Competition ◽  
Product Market ◽  
Product Market Competition ◽  
Company Value ◽  
Corporate Social ◽  
Relationship Of ◽  
The Relationship

The objective of this research is to find out the moderating effect of corporate governance on the relationship of corporate social responsibility and product market competition to company value. The control variable in this study is company size. The sample of this study was 216 observations consisting of 54 manufacturing companies listed in the Indonesia Stock Exchange from 2016 until 2019. Moreover, the simple random sampling method is employed to grab them. To analyze the data, we use the multiple regression model with polling data. The findings of this research are product market competition negatively affects company value. In opposition, corporate social responsibility and  corporate governance positively affect company value. Meanwhile, corporate governance only moderates the effect of product market competition on the company value. The implication of this study is that good corporate governance practices can reduce the negative effects of PMC on company value.    

The Growth and Changing Role of Passive Investments: A Critical Perspective on Index Mutual Funds and Exchange Traded Funds

2016 ◽  
Vol 28 (6) ◽  
Author(s):  
Wolfgang Bessler ◽  
Heinz J. Hockmann
Keyword(s):  
Corporate Governance ◽  
Mutual Funds ◽  
Systemic Risk ◽  
Market Competition ◽  
Product Market ◽  
Product Market Competition ◽  
Securities Market ◽  
Market Quality ◽  
Exchange Traded Funds ◽  
Negative Effects

AbstractIndex Mutual Funds (IMF) and Exchange Traded Funds (ETF) have developed into widely-accepted and fast growing passive investment instruments, offering investors a low-cost investment alternative in well diversified portfolios. Allocating more into IMFs and ETFs is the investors’ natural response to the experience with and the disillusion about actively managed investment performance. Despite these positive effects, this shift in fund allocation raises substantial concerns about possible negative effects on securities market trading and market quality, on corporate governance and product market competition as well as on systemic risk. Most research so far does not provide significant evidence of negative effects on market quality, on securities market trading, and on systemic risk. Whether the shareholdings of IMF and ETF providers reduces product market competition and whether the concentration of voting rights negatively effects corporate governance requires further analysis. Some problems may occur if ETF and IMF providers team-up with active investors. Overall, the introduction of IMFs and ETFs on broad market indices should be viewed as a financial innovation that broadens the investment spectrum providing many benefits to investors especially when viewed relative to the meager performance and performance persistence of actively managed mutual funds.

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