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Corporate governance and market valuation of capital and R&D investments

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  • Kee H. Chung
  • Peter Wright
  • Ben Kedia

Abstract

In this study, we examine how corporate governance structure affects market valuation of capital and R&D investments. We employ three empirical proxies of corporate governance—analyst following, board composition, and institutional holdings, and study whether market valuation of corporate investments varies with governance structure. Our results show that the market valuation of the firm's capital and R&D investments depends critically on analyst following and board composition, but not on institutional holdings.

Suggested Citation

  • Kee H. Chung & Peter Wright & Ben Kedia, 2003. "Corporate governance and market valuation of capital and R&D investments," Review of Financial Economics, John Wiley & Sons, vol. 12(2), pages 161-172.
    • Handle: RePEc:wly:revfec:v:12:y:2003:i:2:p:161-172
    DOI: 10.1016/S1058-3300(02)00063-0
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    9. Hsiao-Fen Hsiao & Tingyong Zhong & Jun Wang, 2024. "Does national culture influence corporate social responsibility on firm performance?," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-9, December.

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